Investment policy

Type of government regulation or law

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Public finance

Policies

* Agricultural
* Economic
* Energy
* Industrial
* Investment
* Social
* Trade
* Fiscal
* Monetary
* Policy mix

Fiscal policy

* Budget
* policy
* Debt
* internal
* Deficit / surplus
* Finance ministry
* Fiscal transparency
* Fiscal union
* Revenue
* Spending
* deficit
* Tax

Monetary policy

* Bank reserves
* requirements
* Discount window
* Gold reserves
* Interest rate
* Monetary authority
* central bank
* currency board
* Monetary base
* Monetary (currency) union
* Money supply

Trade policy

* Balance of trade
* Free trade
* Gains from trade
* Non-tariff barrier
* Protectionism
* Tariff
* Trade bloc
* Trade creation
* Trade diversion
* Trade / commerce ministry

* Revenue
* Spending

* Non-tax revenue
* Tax revenue
* Discretionary spending
* Mandatory spending

Optimum

* Balanced budget
* amendment
* Economic growth
* Fiscal illusion
* Price stability
* Wagner's law

Reform

* Fiscal adjustment
* Monetary reform

* Portal

* v
* t
* e

Within public finance, an investment policy is any government regulation or law that encourages or discourages foreign investment in the local economy, e.g. currency exchange limits.

## Explanation

[edit]

As globalization integrates the economies of neighboring and of trading states, they are typically forced to trade off such rules as part of a common tax, tariff and trade regime, e.g. as defined by a free trade pact. Investment policy favoring local investors over global ones is typically discouraged in such pacts, and the idea of a separate investment policy rapidly becomes a fiction or fantasy, as real decisions reflect the real need for nations to compete for investment, even from their own local investors.[1][2]

A strong and centralized system of the new global rules, made by many in the anti-globalization movement, is that guarantees are often available to foreign investors that are not available to local small investors, and that capital flight is encouraged by such free trade pacts.

## Policy drivers

[edit]

Investment policy in many nations is tied to immigration policy, either due to a desire to prevent human capital flight by forcing investors to keep local assets in local investments, or by a desire to attract immigrants by offering passports in a safe haven nation, e.g. Canada, in exchange for a substantial investment in a business that will create jobs there. A frequent criticism of such joint immigration-investment policy is that they encourage organized crime by providing incentive for money-laundering and safe places for "bosses" to move to when the heat rises in their home country.

## See also

[edit]

* Investment Policy Framework for Sustainable Investment
* Foreign direct investment
* Globalization
* Immigration policy
* Tax, tariff and trade

## References

[edit]

1. ^ "Investment Policies". April 2014. Archived from the original on May 6, 2014. Retrieved April 28, 2014.
2. ^ McCobb, Derrick (April 2014). "Having a Strong Investment Policy". Archived from the original on April 29, 2014. Retrieved April 28, 2014.

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