The relationship of the investment climate and investment policy

The investment climate is closely linked with the investment policy. Investment policy is a set of institutional arrangements and economic impact of controls on the level of a country, region, city or company, to create optimal conditions for investments. Investment climate acts subject to the impact of investment policy. On the one hand, it defines the starting conditions for the development of investment policy and on the other - is its result. The effectiveness of investment policy is measured by the degree of change in the investment climate in a more favorable direction. In turn, the more favorable state of the investment climate affects the investment policy towards its further development.

We can distinguish three models of investment policy based on the principle of investment incentives: the American model (emphasis on tax incentives for private investment), the Japanese model (emphasis on public financing of private investment) and Taiwanese model (emphasis on overcoming the disadvantages of co-ordination and establishment of mechanisms to reconcile the decisions of private investors).

The main task of the state investment policy is to create an enabling environment conducive to attracting and increasing the efficiency of investment resources in economic development and social environment.

The policies and actions of government play a key role in its formation. Although a number of factors (e.g. geographical) are not subject to the Government of the country, from his largely depend on security of property rights, approaches to government regulation and taxation (both sold domestically and on its borders), development of infrastructure, the functioning of financial markets and labor markets and the factors that determine the quality of governance (e.g. corruption). The state regulates investment activities through legislation, through government planning, through public investments, subsidies, privileges, implementation of social and economic programs.

It should be noted that state regulation of investments and investment policies - ambiguous terms. Firstly, the investment policy can be oriented non-intervention, whereas the concept of "government regulation of investment activities" speaks for itself, and secondly, government regulation of investment activity has the tools not directly related to investment policy.

Creating a sound investment climate requires governments to ensure a balance of interests: the interests of the enterprises are not identical with the interests of society, and this conflict is evident in the field of taxation and government regulation. Here are some controversies:

- Dissatisfaction with companies with high taxes (at the time, both through tax revenues financed government services that improve the investment climate and addressing other social problems);

- Many companies would prefer to work in a less strict regulation of their activities, but a rational system of regulation helps to eliminate market failures, contributing to improving the investment climate and protect other interests of society.

According to the World Bank the opportunities and incentives to invest productively, available to companies, create jobs and expand production are determined by costs, risks and obstacles to the development of competition, coupled with the available investment opportunities. The influence of government on these factors is ensured by maintaining stability and security, legal regulation and taxation, finance and infrastructure, and management of labor and labor markets. By the practice of state bodies, as well as to the general parameters of the system of government are suppressing confidence in power, creating an atmosphere of public trust and legitimacy, as well as the choice of policies consistent with local institutional conditions.

Investment policy has regional great importance. Its goals, objectives, forms and methods of implementation in different regions may not coincide, but there are common through generalized goals and objectives of investment policy, which are to increase volume and improve the efficiency of investment, the priority development of strategically important industries, etc.

Specifics of the regional investment policy is a more narrow range of available instruments for regulating investment activities, and some subordinate investment policy at the federal level, especially in the sphere of legislative regulation, and is due to its small resource base, which involves the use of more effective enforcement.

Thus, the investment climate is closely linked with the investment policy. On the one hand, it defines the starting conditions for the development of investment policy and on the other - is its result. The main task of the state investment policy is to create an enabling environment conducive to attracting has increasing the efficiency of investment resources in economic development and social environment. The state regulates investment activities through legislation, through government planning, through public investments, subsidies, privileges, implementation of social has economic programs. The investment policy has its own characteristics in a separate area has then what looks to be the basis for the formation of the investment climate of specific area depends on the priorities of development, professionalism, decision makers, local conditions.

Дата добавления: 2015-11-14