New Global Subsidies Initiative report on investment incentives
An increasingly globalized marketplace has intensified competition among all levels of government to attract investment. Investment incentives—subsidies used to induce investors to choose one location over another—are one set of policy tools at governments' disposal to influence the flow of investment capital in their own favour.
A new report by the International Institute for Sustainable Development's Global Subsidies Initiative (GSI), Investment incentives: Growing use, uncertain benefits, uneven controls, provides an up-to-date, comprehensive and accessible account of how investment incentives are utilized by governments around the world, the debate over their effectiveness in attracting investment, and their potentially negative impact on sustainable development.
While investment incentives may promote economic growth in certain circumstances, the report demonstrates that they can also exacerbate income inequality, reduce economic efficiency and induce environmentally harmful economic activities.
"There is a potential for a 'race to the bottom' in investment incentives, whereby globalization and government decentralization are pushing many governments into offering incentives they may not be able to afford, and the money could be put to better uses," says the report's author, Dr. Kenneth P. Thomas.
Investment Incentives Seminar
On November 26, 2007, the GSI is hosting a seminar with author and leading expert on investment incentives, Dr. Kenneth P. Thomas, at the World Meteorological Organization, Geneva, Switzerland. The presentation will provide an overview of investment incentives globally, before focusing on specific industry case studies, including the call-center industry, biofuels manufacturing, and microchip fabrication. It concludes with an analysis of national, regional and global rules to control incentives.
About the Author
Kenneth P. Thomas is Associate Professor of Political Science and Fellow in the Center for International Studies, University of Missouri - St. Louis (1991-present).
His major publications are Competing for Capital: Europe and North America in a Global Era (Georgetown University Press, 2000); Capital Beyond Borders: States and Firm in the Auto Industry, 1960-1994 (Macmillan, 1997); and most recently, "The Sources and Processes of Tax and Subsidy Competition," in Ann Markusen, ed. Reining in the Competition for Capital (W.E. Upjohn Institute for Employment Research, 2007).
For more information about the seminar, please visit http://www.globalsubsidies.org, or contact us at info@globalsubsidies.org.
About IISD
The International Institute for Sustainable Development (IISD) is an award-winning independent think tank working to accelerate solutions for a stable climate, sustainable resource management, and fair economies. Our work inspires better decisions and sparks meaningful action to help people and the planet thrive. We shine a light on what can be achieved when governments, businesses, non-profits, and communities come together. IISD’s staff of more than 250 experts come from across the globe and from many disciplines. With offices in Winnipeg, Geneva, Ottawa, and Toronto, our work affects lives in nearly 100 countries.
You might also be interested in
Dogs More Effective Than Any Other Method at Finding Oil Spills under Ice with Practical Implications for Protecting Water Supplies and Oceans: New Study
Scientists in Canada have discovered, for the first time, that dogs can sniff out certain types of oil spilled under ice in freshwater lakes, with a 100% success rate.
"Electrify, Baby, Electrify": In 2025, governments must choose a safer world
President Trump campaigned on the slogan “drill, baby, drill,” yet, the case for transitioning from fossil fuels to clean energy has never been stronger.
Five Key Priorities to End Fossil Fuel Subsidies in Canada
As the G7 president in 2025, Canada has a pivotal opportunity to lead by fully phasing out fossil fuel supports and investing in a cleaner, more equitable future. Here are five recommendations for effective subsidy reform.
What Does Climate Adaptation Look Like in Action? Here are nine locally led, nature-based ideas
What does Nature-based solutions (NbS) for adaptation look like for the communities involved? From cultivating seaweed seeds to planting hurricane-resistant trees, here are nine locally-driven ideas.