The OECD has been a key supporter of the G20 agenda on investment to boost growth and on financing for investment. Responding to a call from G20 Leaders, the Organisation has developed the G20/OECD High-Level  Principles for Long-term Investment Financing by Institutional Investors in 2013 and has actively supported countries in the design of the G20 Investment Strategies in 2015.

FINANCING FOR INVESTMENT

The theme of financing for investment has been at the core of G20 work throughout the years, and constituted a priority for the 2013 Russian Presidency. Recognising the essential role that long-term financing for investment plays in supporting strong, sustainable and balanced growth, G20 Finance and Central Bank Deputies established a Study Group on Financing for Investment in 2013. This group transformed into the Infrastructure Investment Working Group (IIWG) under the Australian Presidency in 2014.

The OECD, drawing on its longstanding expertise and extensive work on “Institutional Investors and Long-Term Investment,” has been a key contributor to the G20 work on financing for investment and an active member of the IIWG.

Firstly, the organisation provided the group with a diagnostic note on financing for investment in 2013, which was instrumental to raise the issue’s priority within the G20 agenda. Furthermore the OECD developed the G20/OECD High-Level  Principles for Long-term Investment Financing by Institutional Investors at the request of G20 Finance Ministers, which were endorsed by G20 Leaders at the St Petersburg Summit. These principles present a comprehensive picture of the many different policy areas that need to be addressed in order to promote long-term investment financing by institutional investors. Following a call from Leaders, the OECD has continued its work on institutional investors through the G20/OECD Task Force on Institutional Investors and Long-Term Financing, which notably identifies effective approaches to implement the Principles. The task force has reported back to Leaders in Brisbane and Antalya.

Since 2013, the OECD also has organized an annual High-level Roundtable on Institutional Investors and Long-Term Investment, jointly with successive G20 Presidencies. The Roundtable provides a discussion platform for high-level representatives of pension funds, insurance companies and sovereign wealth funds as well as high-level officials and experts from ministries of finance, central banks and international organisations.

Most recently, the OECD has delivered supporting documents entitled Effective Approaches to Support Implementation of the G20/OECD High-Level Principles on Long Term Financing by Institutional Investors and a report on the Taxonomy of instruments and incentives for infrastructure financing to the Turkish G20 Presidency. The OECD stands ready to continue to contribute to the G20 work on financing for investment during the Chinese Presidency in 2016.

BOOSTING GROWTH THROUGH INVESTMENT

The OECD has been a key supporter of the G20 initiative to boost growth and kick-start investment, both at the Brisbane and Antalya Summits. The OECD has been an essential partner of the G20 for the implementation of the Brisbane National Growth Strategies that started this year. 

FRAMEWORK FOR STRONG SUSTAINABLE AND BALANCED GROWTH

The Turkish Presidency perpetuated the focus on investment at this year’s summit. The OECD supported its agenda, namely during G20 Country Investment Strategies, which were presented and endorsed by the G20 Leaders at this year’s summit. The Organization also assisted to provide an aggregate G20 reference in fostering investment, including in infrastructure. As mentioned in the Leaders’ communiqué, “analysis by the OECD indicates that these strategies would contribute to lifting the aggregate G20 investment to GDP ratio, by an estimated 1 percentage point by 2018” (Antalya, November 2015, paragraph 9).

Also presented at the G20 Summit under the theme of investment were the following OECD reports:

• Stock-Taking of Selected Policy Indicators on the Enabling Environment for Infrastructure Investment;
• Risk and Return Characteristics of Infrastructure Investment in Low Income Countries; and
• Option for Low Income Countries’ Effective and Efficient Use of Tax Incentives for Investment.

 OECD CONTRIBUTIONS TO G20

• G20-OECD High-level roundtable on institutional investors and long-term investment
  G20-OECD work on long-term financing
  Local Currency Bond Markets: A Diagnostic Framework 
• Full list of documents
  
• RECOMMENDED LINKS
• • Framework for strong sustainable and balanced growth
  • OECD Codes of Liberalisation of Capital Movements and of Current Invisible Operations
    OECD work on investment policy
    OECD work on international investment