Investment In International Development
Global Centre for Best Practices in International Investment and Development
The Institute for Investment In International Development (“I4D” or the "Institute”) is a new specialized non-governmental, non-profit economic research institute, chartered as a global centre for the collection, study, evaluation, and dissemination of best practices in investment to promote international economic and social development and in the architecture and management of effective partnerships to achieve development goals.
The Institute intends to seek registration as a non-profit international organisation under Article 60 of the Swiss Code, and, if so registered, will be domiciled in Geneva, Switzerland.
The Institute originated in informal discussions in early 2001 among international investors and officials of multilateral development banks who were seeking tried-and-tested best practices in their field, to build such best practices into their investment programming, and to make that information available and useful to colleagues worldwide involved in channeling investment capital and technical resources into private sector development, particularly in less-developed, transitional, and “frontier” economies.
Examining a wide range of investment, development, economic, business and social issues affecting their work, they and their staffs had been stymied by a plethora of sometimes overlapping, sometimes contradictory guidelines, codes, protocols, and other criteria promoted and promulgated by organisations and institutions ranging from $100-billion pension funds to "one man and his dog" think tanks.
All claim to articulate good practice – in governance, environmental, labor policies, etc., but which are best practice in a given situation? Which have been tried and tested in the real worlds of managing institutional portfolios or accomplishing measurable economic development objectives? Which ones sound good but can’t be applied in reality, which ones are just plain silly or too vague to work, and which ones are proven to add value?
The genesis for the Institute was the critical and urgent need for a global research centre to gather, codify, evaluate, filter and disseminate the best of this information, and to further the adoption and promulgation of workable and proven best practices across the full spectrum of private sector investment and development.
With these initial goals set for the Institute, a program to reach them were further developed over 2002-2003, in the course of concrete development projects and consultation with multilateral and national development banks, leading institutions active in international private equity, and major corporations investing and dealing with suppliers globally.
The Institute’s charter was drafted in 2004, and discussions have been opened with Swiss authorities to base the Institute in Geneva, home to numerous organizations with parallel development objectives including the ILO, IMO, UNDP, ECOSOC et al.
To be a global forum through which institutions and individuals from the private sector, the public sector and the "3rd sector", development banks and agencies, other international organisations, NGOs and other interested parties can work to optimize the impact of their development-oriented investment and funding activities through identification, study, refinement, and dissemination of information regarding best practices. Simply put, to find out and document what works and what doesn't, and to make this information available as widely as possible.
Charter & Programs:
To accomplish its mission, the Institute’s charter mandates it:
Ø To undertake and support original research into all modalities of international investment and to evaluate its impact on the economic and social development of host countries, especially with regard to private sector development.
Ø To raise funds and other forms of support, to make grants, and otherwise to support worthwhile research, educational, training, technical assistance, and other development programs which support the Institute's objectives.
Ø To bridge and intermediate between the respective cultures of international investment management, of development banking, and of civil society groups in their various international and national strains, in order to improve communications and accelerate private sector development and economic growth worldwide.
Ø To identify ways for international institutional investment to have the most beneficial impact on economic development in recipient countries, and to provide technical assistance towards capacity-building in host country agencies and institutions responsible for structuring inward FDI and other forms of development financing, particularly in the private sector.
Ø To gather and serve as a repository of all available best practices protocols and guidelines in the areas of, inter alia, corporate governance, sustainability, investment vehicle structuring, co-financing, privatization, host country private-sector programs, financial governance & management, SRI (Socially Responsible Investing), SEE (Social, Ethical & Environmental) investing, Corporate Social Responsibility (CSR), and other related business and investment issues related to standards and codes of interest to the Institute's membership.
Ø To codify best practices information and to disseminate it among Institute members and the public at large, to educate investors and development financiers in these best practices, and to provide training and technical assistance in their application and implementation.
Ø To assist members and other organisations to establish and manage program-supporting partnerships and funding vehicles in order to accomplish their development objectives, provided that those objectives are in line with those of the Institute;
Ø To provide a global forum for the exchange and dissemination of practical information about proven effective best practices and protocols among investment industry practitioners, multilateral development banks, international financial institutions, academics and concerned international organisations.
Ø To promote the development and use of investment and financing modalities which carry the most positive impact on host countries, and to promote the adoption, use and monitoring of proven best practices.
Ø To provide financial and in-kind support, through a Research Fellowship Program, grantmaking, and other Institute and local initiatives, to further all of the above activities.
As a non-profit organisation, it is intended that the work of the Institute be supported entirely by:
Ø Membership and activity fees paid by member corporations and organizations (see Membership in the Institute below);
Ø Programming and other fees paid by clients for technical assistance or development program-related services, or for other services provided by the Institute or its members, provided such fee revenue goes to support the costs of the institute or to support its grant program;
Ø Program Grants and technical assistance to the Institute from foundations, bilateral donors, multilateral development banks, international financial institutions and investment industry bodies;
Ø Donations and contributions in cash and in kind from the general public; and
Ø Volunteer work and in-kind contributions made by supporters ranging from industry leaders to academic interns.
The Institute will publish regular quarterly Activity Reports detailing membership activities, new, ongoing and forthcoming research efforts, and other Institute projects. These Reports will be distributed gratis to all members, and on request to industry media, academic institutions, and other interested members of the public.
Programs for Members:
The Institute aims to offer useful, informative, and lively programs for its members, including:
Ø Periodic Investment / Development Summit for members and guests – a global summit, bringing together trustees and executives of major investment institutions, senior development bankers, investee corporation and other private sector executives, investment bankers and asset managers, scholars and representatives of international organisations for 2-3 days of presentations, debate, informal discussions, and networking on critical international investment and development issues.
Ø “The Institute Quarterly” a research journal containing original specially commissioned and anthologized articles and papers on topical subjects of interest to members.
Ø Website: continuously updated with news and information of interest to members, drawn from wire services, major international and local newspapers, industry publications, and other sources.
Ø Workshops and seminars, to be held semiannually in financial centers and host countries around the world. Open at no additional charge to top-tier members, and by invitation to others, these will focus on emerging investment opportunities in particular countries, regions, and industries which have been identified as having high development priority, and will bring together national and multilateral development bankers, investors, and financiers.
Ø Institutional Certification Programs. Institutions completing this program will be so certified by the Institute and involved personnel will have the opportunity to participate in special Institute programs to further its goal of the broad capacity-building of its members and host country institutions. This program is planned to assist members to:
o Articulate their financial & development priorities ~ the respective importance to them of investment returns, economic development, social benefits, etc.
o Identify & adapt investment & financing assessment protocols which best reflect these priorities and the institution’s organizational objectives;
o Develop & implement internal systems & procedures which will best enable the organization to apply the selected protocols and monitor investees and projects, with dynamic feedback into adaptation of additional protocols and optional systems for peer dissemination of identified best practices.
Original Research Programs:
The Institute has the objective of commissioning, through its own Fellowship Program and through co-financing of other programs, original research work in areas of concern and interest to its members.
As much of this work as possible will be done by faculty and graduate students at academic institutions located in developing countries, where a great need (and opportunity) exists to structure inward foreign direct investment in order to achieve optimum development impact. Upon completion and peer review, Fellows’ work will be published in the I4D Quarterly and presented at the Summit.
The Institute's membership structure has not yet been finalised, but it is intended to offer multiple categories along the following lines:
Ø Charter Members (corporate / governmental / multilateral / bilateral / institutional sponsors)
Ø Benefactors (Major foundations/s Eleemosynary organizations)
Ø Partner Organizations (NGOs, Academic institutions, associations etc. which are not investors)
Ø Individual (for academics, independent practitioners, etc.)
Governance of the Institute:
It is intended that responsibility for the Institute’s overall direction and management will rest with a Board of Regents, which comprises (a) 3 appointees of the Institute’s founding members who serve 5-year terms, together with (b) any number of representatives of the Charter Members, who serve annual terms as long as their organization remains in good standing as such. Day to day administration is handled by a Secretariat staff.
The Regents will be assisted in their work by an Advisory Board, comprising members appointed by the Regents from all membership categories, together with other senior industry or governmental figures who have volunteered their time to assist the Institute.
Committees & Working Groups:
Under the Institute’s charter, the Board of Regents may create such other committees of the board or of the general membership or of independent advisors or such other working group as they may from time to time deem necessary or convenient for the achievement of the Institute’s objectives. Such committees may, but shall not necessarily, include various geographic committees as well as the following
Institutional Investors Liaison
Institute Endowment / Development
Bilaterals & Multilaterals Liaison
Developing Countries Liaison
For further information:
For further information regarding the Institute, its objectives and structure, and how to become a member, please contact the I4D Interim Secretariat at Secretariat@IIIID.org
Announcement of competition for Institute Fellowships will be published in The Economist and other international publications, posted on this website, and distributed directly to qualified academic institutions worldwide.
Institute members who are also providers of relevant fiduciary, institutional investment or technical services, may offer to donate a percentage of any fee revenue arising from business with other Institute members to the Institute itself, and also to support the work of the Institute by making professional services available at a discount to Institute members in selected categories. the Institute itself may also commission services from members and make those services available to Institute members. A complete list of participating firms will be posted from time to time on www.IIIID.org.
All contents © MM!-MMV by IIIID Secretariat
© MMI-MMIV Institute for International Investment Impact on Development