Facility for Investment Climate Advisory Services 2017-21
FIAS (Facility for Investment Climate Advisory Services of the World Bank) operates at the intersection of government and the private sector to ensure that the investment climate - reflected by laws, regulations, trade structures etc. - enables companies to grow without unnecessary hurdles. Ultimately, FIAS aims to build dynamic and resilient economies that grow at the benefit of everybody through increased investment, job-creation and productivity. Thereby, FIAS contributes to the Sustainable Development Goals.
| Country/region | Topic | Period | Budget |
|---|---|---|---|
|
Global |
Private sector and entrepreneurship |
01.07.2016
- 30.06.2021 |
CHF 4'750'000
|
- International Finance Corporation
-
Sector according to the OECD Developement Assistance Commitiee categorisation INDUSTRY
Sub-Sector according to the OECD Developement Assistance Commitiee categorisation Small and medium-sized enterprises (SME) development
Cross-cutting topics The project takes account of gender equality as a cross-cutting theme.
The project takes account of democratisation, good governance and human rights as cross-cutting themes.
Project number UR00373
| Background |
Non-transparent administrative processes and enforcement of regulations deter firm creation, investment, and productivity. As a consequence, developing country governments face increasing pressure to improve their regulatory frameworks and accountability of how reforms are implemented. Furthermore, developing economies need support and proactive investment at the sector and firm level to achieve sustainable growth. Last yet importantly, many developing economies underperform due to constraints on competition in domestic markets even though they have opened up to trade and improved their business environment. Hence, competition policies need to be improved in order to foster well-functioning markets and enhance productivity. |
| Objectives |
In the FY 2017-2021 strategy cycle, FIAS-supported work will fall into three strategic pillars: i) Reform of regulations and policies that govern the business environment such as construction permits, property registration, insolvency regimes, etc.. This will reduce the cost and the time companies have to spend to start and licence a new business. Eventually, this will reduce uncertainty and lead to further investments. ii) Expand market opportunities by lowering the legal barriers businesses face when they enter a new market or when they want to invest. iii) Strengthen firm competitiveness through policies that help companies invest in improved products, to make use of climate-efficient technologies, and to modernize production processes. Job opportunities will follow if labor markets can supply the necessary skills. The three pillars will be reinforced by four cross-cutting themes: Gender and inclusion- transparency- green competitiveness- and targeting high-growth businesses. |
| Medium-term outcomes |
A more transparent, conducive and predictable business environment. Improved firm productivity, competitiveness and market access. Increased investment. |
| Results |
Expected results: Strengthened institutional capacities (e.g. better enforcement of contracts). Reduced business and investment costs. More competitive sectors (& spillovers). Enhanced competition policies and systems. Increased value addition to local suppliers. Improved government-to-business services (e.g. facilitated firm registration). Enhanced public-private dialogue. Improved support services for innovative SMEs and entrepreneurship. Results from previous phases: FIAS track record is impressive: Over the FY 2012-2016 strategy cycle, FIAS has generated nearly USD 3 billion in private investment, USD 193 million in compliance cost savings, and 265 investment climate reforms in 75 client countries, thereby largely exceeding the original five-year targets. |
| Directorate/federal office responsible |
SECO |
| Credit area |
Development cooperation |
| Project partners |
Contract partner |
| Budget | Current phase Swiss budget CHF 4'750'000 Swiss disbursement to date CHF 0 Budget inclusive project partner CHF 200'000'000 |
| Project phases |
Phase 3 01.07.2016 - 30.06.2021 (Completed) |