Investment Incentives: Growing use, uncertain benefits, uneven controls
Investment incentives have been around for over 100 years. In 19th century America, cities offered money to railroads in order to have the railway pass through them (Sbragia, 1996). But it was only in the late 20th century that governments around the world began offering direct grants, tax breaks, training funds, free infrastructure and other inducements to attract corporate investment. While often thought of as a competition to attract foreign direct investment, competition is equally strong for domestic firms. The most intense competition and the largest subsidies are given to well-known multinational companies who make large investments. At the local level, incentives are often given to real-estate developers and retail projects in order to capture tax revenue that would otherwise go to another jurisdiction.
You might also be interested in
Through Their Eyes
Across Belize, women, young people, and other underrepresented groups are documenting how climate change is affecting their communities and how they are responding. Through mobile photography and storytelling, participants in the Climate Adaptation and Protected Areas (CAPA) Initiative’s storytelling project are sharing their experiences in their own words, offering a personal look at resilience and adaptation in action.
A Guide to Guarantees for Sovereign Debtors
A guide to deploying sovereign guarantees to mobilize capital and support sustainable development while managing fiscal risks.
Managing Energy Price Crises
This report outlines a strategic decision framework policy-makers can use when responding to fossil fuel price shocks.
Preserving Tax Sovereignty
As countries negotiate the UN Framework Convention on International Tax Cooperation, this report examines how its provisions can be shaped to prevent tax disputes from being redirected into ISDS, ensuring they are addressed through tax-specific mechanisms.