THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency 1 Investment Policy, Legal Framework, & Promotion Investment Facilitation Sector targeting and promotion Investor Aftercare & Policy Reform Communications CLIENT SOLUTIONS for: Impacts Investments Jobs Reforms Benchmarking FDI Competitiveness FDI Strategy & Action plan Investment Law and Policy

THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency Legal Framework For Investment Legal Framework is more than the Investment Law: Constitution (property rights, economic system) Core economic laws: Competition, Banking, Intellectual Property Rights Sectoral Laws (e.g., Mining, Utilities, Infrastructure) Bilateral and Multilateral International Agreements, e.g., WTO, BITs, TTs State/Provincial Local Laws [as applicable] And of course, the Investment Law

THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency 3 Principles of Good Investment Policy  Clear, transparent and predictable legal framework  Equal treatment of investors  Ease of entry: registration instead of screening  Respect for property rights  No performance requirements and few sectoral restrictions  Free repatriation of profit

THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency 4 Principles of Good Investment Policy  Good dispute resolution practices  Permissibility of expatriate labour  Avoidance of distortive and discretionary tax incentives  Avoidance of double taxation  Fostering benefits of FDI to the domestic economy.

THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency 5 Structure of Modern Investment Laws  Comprehensive Definitions Section Key institutions, FDI etc  Clear Entry Requirements Registration instead of licensing (which requires screening), negative lists etc  Investor Guarantees National treatment of foreign investors Property rights protected; prompt, adequate and effective compensation in the event of expropriation Un-restricted repatriation (transfer) of capital and profit Access to alternative dispute resolution mechanisms (ADR)  Transitional Provisions Details on how the Investment Law complements, amends or repeals previous laws and regulations.

THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency 6 The Role of Investment Law Law as an implementation and promotional tool The Investment Law can serve as a signal to indicate that the country is “open for business”, welcomes FDI The Investment Law serves to implement the investment policy Good Investment laws provide greater certainty to both: Investors Government By: Clarifying roles and responsibilities of investors and the Government Binding them to their respective rights and obligations Reducing the scope for discretionary decision-making and increasing transparency in administrative processes Providing a basis for dispute resolution

THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency Link to the Investment Law Handbook Law-Reform-Handbook.pdf

THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency 8 DISCUSSION