Promoting Foreign Investment in Fragile and Conflict-Affected Situations

Fragile and conflict-affected situations
might appear incapable of attracting significant flows of
foreign investment due to their often negative international
images and weak enabling environments. However, during the
last eight years, foreign investment into these economies
has grown almost three times more quickly than flows into
the rest of the world, albeit from a very low starting
point. Untapped natural resources, reconstruction needs, and
severely underserved consumer demand present domestic and
foreign investors with significant opportunities, many of
which continue to go unrealized. This note provides guidance
to investment policymakers and promoters in fragile and
conflict-affected situations, whose work is needed to bring
those opportunities to fruition.