Practice Note 3: Foreign Direct Investment in Conflict-affected Contexts

If all goes well, Foreign Direct Investment (FDI) contributes to peacebuilding. In the worst case, it may itself be a source of conflict. This practice note explains why and how the operations of foreign investors are relevant for economic development planners and practitioners in conflict-affected contexts. It presents some of the main issues, risks and opportunities that economic development professionals need to bear in mind when designing programmes and initiatives that seek to attract foreign investors to unstable contexts. It also introduces the key stakeholders and processes, questions to be considered in programming, and main lessons learned. The final section points the reader to additional resources on the topic.