A thriving private sector is essential to long-term development. CGD research includes examination of donor efforts to help developing countries improve their business climate and foster entrepreneurship, as well as research into ways to increase the positive impacts—and avoid pitfalls—of foreign direct investment. Our work also includes analyzing innovations in development finance and private equity.
The investment component in CGD’s Commitment to Development Index compares rich countries on policies that encourage constructive investment in poor countries. This analysis is based on twenty questions, including whether governments allow public pension funds to invest in poor countries, whether they offer insurance against political risks, such as expropriation, to encourage domestic companies to venture abroad, and whether they first check for potential environmental and labor rights abuses in factories to be insured.
A CGD book by non-resident fellow Ted Moran analyzes the impact of foreign direct investment on development outcomes.
Joining the Fight against Global Poverty: A Menu for Corporate Engagement
International corporations interested in joining the fight against global poverty can choose from a wide range of options, according to a CGD report. The report, Joining the Fight against Global Poverty: A Menu for Corporate Engagement, suggests six approaches for corporations to consider when pursuing development objectives. Based on interviews with senior executives at fifteen firms with global reach, it includes stories about what has worked (and what hasn't) and describes some of the advantages that companies have found in working for development.