Editing Investment policy

{{Short description|Type of government regulation or law}}
{{multiple issues|
{{Original research|date=November 2008}}
{{More citations needed|date=September 2014}}
}}

{{Public finance}}

Within [[public finance]], an '''investment policy''' is any government regulation or law that encourages or discourages [[foreign direct investment|foreign investment]] in the [[local economy]], e.g. [[Foreign exchange market|currency exchange limits]].

== Explanation ==
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|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.<ref>{{cite web | title = Investment Policies | date = April 2014 | url = http://www.calpers.ca.gov/index.jsp?bc=/investments/policies/home.xml | access-date = April 28, 2014 | archive-url = https://web.archive.org/web/20140506164724/https://www.calpers.ca.gov/index.jsp?bc=%2Finvestments%2Fpolicies%2Fhome.xml | archive-date = May 6, 2014 | url-status = dead }}</ref><ref>{{cite web | last = McCobb | first = Derrick | title = Having a Strong Investment Policy | date = April 2014 | url = http://investinnola.com/strong-investment-policy/ | access-date = April 28, 2014 | archive-url = https://web.archive.org/web/20140429050751/http://investinnola.com/strong-investment-policy/ | archive-date = April 29, 2014 | url-status = dead }}</ref>

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 ==
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 [[:wikt:safe haven|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==
*[http://investmentpolicyhub.unctad.org/ipfsd Investment Policy Framework for Sustainable Investment]
*[[Foreign direct investment]]
*[[Globalization]]
*[[Immigration policy]]
*[[Tax, tariff and trade]]

==References==
{{Reflist}}

{{Public policy}}
{{Authority control}}

[[Category:Economic integration]]
[[Category:Foreign direct investment]]
[[Category:Investment]]
[[Category:Political economy]]
[[Category:Economic policy]]