Sustainable Investment and its Relationship to Political Risk Reduction

3 Pages Posted: 6 Jun 2019

See all articles by Alan Franklin

Alan Franklin

Global Business Risk Management

Date Written: May 17, 2019


This article explains the relationship between an investor proposing an investment which is considered “sustainable” to a potential host state and the reduction in political risk if the investment is accepted because of its sustainability.

Also, if the investment is sustainable, within the concepts developed by such organizations as OECD, UNCTAD, Global Compact and International Finance Corporation of World Bank, there will be greater likelihood that such investment will be accepted by the proposed host state.

The article then discusses assistance that home states often provide for outward foreign direct investment by their nationals, and why home states see this activity as beneficial to the home state.

Host states that want to encourage inward foreign direct investment also have Investment Promotion Agencies whose role is to work with potential foreign investors to bring in desirable FDI.

Investment facilitation as a global matter and the efforts of WTO to encourage FDI.

The article also refers to the OECD Quality FDI Toolkit and its ongoing development.

Keywords: sustanainable investment, outward forward direct investment, inward foreign direct investment, OECD, UNCTAD

JEL Classification: M16, M21, M48, F21, F23, F53, K33

Suggested Citation

Franklin, Alan, Sustainable Investment and its Relationship to Political Risk Reduction (May 17, 2019). Available at SSRN: or

Alan Franklin (Contact Author)

Global Business Risk Management ( email )

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416 454 6133 (Phone)


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