The World Association of Investment Promotion Agencies (WAIPA) recently announced a “a renewed global push to channel investment toward inclusive, sustainable development.” In doing so they highlighted the role that investment promotion agencies (IPAs) and economic development organizations (EDOs) play in this process.
Investment for good means supporting projects that generate decent jobs, reduce poverty and advance climate resilience. Our mission is to empower IPAs worldwide to attract investment that matters, not just economically, but socially and environmentally.
Ismail Ersahin, WAIPA CEO and executive director
WAIPA is an International Economic Development Council (IEDC) partner, and IEDC is a member of the WAIPA Consultative Committee.
The 2025 World Investment Report highlights challenges they face. Global foreign direct investment (FDI) fell 11% in 2025. Declines in infrastructure, renewable energy, and water and sanitation investments are of particular concern to report authors. At the same time, investments in digital infrastructure are expanding at a 10-12% annual rate, with North America benefiting most.
Incentives are, of course, used to attract business investment, especially in the digital economy. The World Investment Report explains that incentives “dominated investment promotion measures” and are featured in 81% of investment laws. Incentive programs also increasingly encourage projects that contribute to employment, regional development and green initiatives. Incentives are also being deployed around the world specifically to support sustainable investment. According to the Organization for Economic Cooperation and Development (OECD), more than a third of all incentives they track target sustainable development objectives.
“Investment for good” is a great phrase. We often talk about the importance of using incentives to encourage quality investment. Just as most states have established quality job requirements for their tax credit programs, it may be time to consider metrics that will help direct incentive dollars to quality investments aligned with state environmental, safety, productivity, upskilling or other economic priorities.
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