WORLDBANKGROUPPublic DisclcsureAuthorizecSTATEOFINVESTMENTPROMOTIONAGENCIESEvidencefromWAIPA-WBG'sJointGlobalSurveyPublicDisclcsure TableofContents Acknowledgments.VIAbbreviationsand Acronyms.VIIExecutiveSummary.XSurveyOverview..XIVSurvey Methodology..XVISurvey Design.XVIISample Representation.XVIIPART1:FIRSTPILLARFOREFFECTIVEINVESTMENTPROMOTION:CORPORATESTRATEGICPLANNINGANDSECTORPRIORITIZATIONStrategicIntegrationand EffectiveFeedbackLoopsInvestmentPromotionStrategySector PrioritigationNumber of Sectors....Top Priority Sectors ....1Emerging Priority SectorsDeclining Sectors...Sources for Sector TargetingResourceAllocationforPrioritySectors..6Client Selection..6Non-EquityModes ofInvestmentPART2:SECONDPILLARFOREFFECTIVEINVESTMENTPROMOTION:INSTITUTIONALFRAMEWORKInstitutional StructureReporting Lines.10Mandates...10Board of Directors.12Responsibilities of the BoardTABLE OF CONTENTS 11 Staff14StaffCompositior14StaffQualifications andSalaries.14OverseasandRegional IPARepresentationandSubnational IPAs..16OverseasRepresentatives..16Regional IPA Offices..17Subnational IPAs.17Financial Resources.18Budget Sources and Sige..18Budget Allocation.....19Institutional CoordinationMechanisms...20PART3:THIRDPILLARFOR EFFECTIVEINVESTMENTPROMOTION:INVESTORSERVICESServicing InvestorsAcrossthe Investment LifeCycle..23WBGComprehensiveInvestorServicesFramework..23Evaluationof Investors...25Managing the Relationship with the Investor..25Communications and Social Media....27.Databases.28Grievance Management..29MonitoringInvestment Promotion Function..29Measuring Impact.....30PART4:CHALLENGESAND CHANGES..32Current Picture of FDI and HowTraditional Patterns are Changing..33Challenges and Changes in Investment Promotion..33Potential Reforms....35Conclusions36II I STATE OF INVESTMENT PROMOTION AGENCIES Addendum38Investment Promotion Agencies' Response to the Covid-19 Pandemic: Evidence fromWBG And Waipa Rapid Surveys...39Rationcle.39Methodologies..39Findings..39Conclusion..44References.46Annex.50Analysis of IPA Characteristics Surveys51ListofBoxesBox 1.1: SDGs Influence IPAs' Sector Targeting ...Box 4.1: Changes in Investment Promotion as Perceived by IPAs, by RankingofMentions...34List of DashboardsDashboard 1.1: Top 5 Priority Sectors by IPAs per Income GroupDashboard 2.1: IPAs' Organigational Structure before and after ReorganigationDashboard2.2: Board of Directors and its Structure....13Dashboard 2.3: Budget Dedicated Only to Investment Promotion and FDI.....19Dashboard 3.1: IPAs' Systems and CRM Software..26Dashboard 3.2: Resources Dedicated to Social Media in 2018....28Dashboard 3.3: Size and Content of IPAs'Databases..28Dashboard 3.4: Analysis and Evaluations of IPAs Activities (part 1)...30Dashboard 3.5: Analysis and Evaluations of IPAs'Activities (part 2).31Listof FiguresFigureO.1: Most IPAs Come from High-Income Countries in Europe andCentralAsig.....XVIFigure 1.1: Majority of IPAs Have a Written, Multiyear StrategyFigure 1.2: IPAs Have Too Many Priority Sectors...TABLE OF CONTENTS IIII Figure B.1.1: How SDGs Influence IPAs' Strategies .2Figure 1.3: Emerging Priority Sectors are Based on High-Value-Added Activities3Figure 1.4: Sectors Discarded by IPAs...4Figure 1.5: Sources that Inform the IPA Strategy...Figure 1.6: Methods for Implementing Investment Promotion Plans....Figure 1.7: Resource Allocation for Priority SectorsFigure 1.8: IPAs' Client Selection for Services..6Figure 1.9:Distribution of IPA Resources..Figure 1.1O: NEMs Targeted by IPAs..Figure 2.1: Organigational Structures of IPAs..9Figure 2.2: IPAs Reporting Lines...10Figure 2.3: IPAs Still Have a Myriad of Mandates..1Figure 2.4: Mandates Performed by IPAs....11Figure 2.5: Correlation of Number of Mandates and GDP per Capita...12Figure 2.6: Responsibilities of IPA Boards....13Figure 2.7: IPAs'Staff Composition...15Figure 2.8: IPAs' Staff Qualifications15Figure 2.9: IPAs' Staff Wage.......16Figure 2.10: IPA Representation Abrocad..Figure2.11: Regional IPAs'Offices.Figure2.12: Do Countries Have Subnational IPAs?..17Figure2.13:Cooperation between National IPAsand Subnational IPAs.. 7.Figure 2.14: Percentage of IPAs per IPAs' Budget Source...18Figure 2.15: Distribution of IPAs' Total Budget Sige,...18Figure 2.16: Distribution of IPAs'Promotion Budget.20Figure 2.17: Use and Rating of Coordination Mechanisms Among Investment Entitiesinthe Location...20Figure 2.18: Main Obstacles Hindering the Quality of Investment EntitiesCoordination21IV I STATE OF INVESTMENT PROMOTION AGENCIES Figure 3.1: Criteria IPAs Use to Evaluate Investors.26Figure 3.2: IPAs Using Grievance Management System...29Figure 3.3: Methods IPAs Use to Gather and Report Investor Complaints..29Figure 3.4: Key Performance Indicators Used by IPAs...30.Figure 3.5: Quantifying Benefits and Costs of IPAs' Work.......31.Figure 4.1: Issues Affecting IPA's Effective Performance33Figure 4.2: Performance Challenges Facing IPAs in Developed and DevelopingCountries......34Figure 4.3: Reforms Indicated by IPAs to Improv