Government-Investor Networks (GINs)
As a tool designed to implement Financing for Development (FfD), enhance the capacity of governments to openly collaborate with the private sector in improving the business-enabling environment by providing a platform in which (1) private sector investors can report investment impediments and possible solutions and (2) host governments can respond effectively improving investment attractiveness and global competitiveness.
As recognized at the UN World Summit on the Information Society, the Government-Investor Network (GIN) is the only on-line tool designed for governments aimed at increasing capacity for private sector consultation and intragovernmental coordination, a critical component of business-enabling environments. The GIN has the potential for outsized development impact, using the catalytic power of modern-day communication technologies for advancing public-private sector collaboration and results by enabling the open identification of critical investment impediments and possible solutions, improving intergovernmental coordination, and catalyzing solutions. The GIN can be used to:
- Enhance government capacity to identify investment impediments and possible solutions, as well as success stories to advance investment promotion;
- Enhance cost-effectiveness of Investor After Care Function (usually conducted by the government’s Investment Promotion Agency);
- Enable cost-effective open government policy consultation with private sector on draft regulations, laws, programs, policies and other initiatives aimed at enhancing business-enabling environments; and
- Provide distribution channel for government communication with investors on country developments, policies, and opportunities, thereby extending cost-effective government outreach and investment promotion and reducing the risk of misunderstandings and potential for financial contagion.
The GIN also includes a Problem-Tracking System and Performance Reports that strengthen the government’s ability to solve issues across ministries and agencies and mobilize senior political support. Governments may also establish a “Donor Table” so they have access to first-hand accounts of problems and possible solutions, and can harmonize their programs and funding, enabling greater aid effectiveness.
Developed with funding from the UN Financing for Development Office and the Swiss Agency for Development and Cooperation.
Invitation to Partner
GlobalDF invites interested parties to fund a second edition of Government-Investor Networks for greater impact in achieving the SDGs and Climate Goals.
The development community has recognized the pivotal importance of creating business-enabling environments, with massive investments in assessments and technical assistance. The creation of the FfD Tool “Government-Investor Networks” is aimed at providing a simple tool for governments that want to translate their political commitment into action, by providing them with a concrete mechanism using communication technologies that enhances their capacity to cost-effectively implement their objective of creating a business-enabling environment.
How the GIN Works
The GIN is an intranet subscription service managed by the government’s designated agency for improving the business environment. In many cases, this is the Investment Promotion Agency, with the Investor After Care function responsible for dealing with issues encountered by existing investors.
The GIN gives the government a practical tool that increases its ability to be effective in improving the business environment. Using the GIN as a cost-effective communication platform between public and private sector members, the designated government agency has increased capacity to:
1) Receive open input from existing investors and business organizations on investment issues and possible solutions
2) Achieve effective intragovernmental coordination across the full range of government agencies required to improve the business-enabling environment
3) Consult openly on draft regulations, laws, policies, and programs
4) Share important information between the public and private sectors
The GIN is therefore designed to serve as a catalytic mechanism creating a new public-private community focused on a critical deliverable: creating the business-enabling environment needed by both the host government and the private sector for shared success.
A best practice for organizations is the use of Ticket Systems (TSs) to manage their requests from clients, suppliers, and other entities. The goal of the GIN TS is to improve responsiveness within the GIN by attaching a chain of responsibility in the host government (the Chain of Authority – CA) to the requests posted by GIN investor members. The TS will ensure that the accountable government participants are notified of investor requests. Moreover, the TS provides reports tracing follow-up activities. The fundamental objective is to tie a CA to each investor request in order to assure timely responses and track them enabling greater effectiveness in government coordination, tracking, and reporting to senior government officials. Ticket System Reports can also provide the government with evidence-based data demonstrating the performance of government responsiveness to investors and thereby potentially mitigating negative investor perceptions. To access the explanation of the GIN Ticket System, click here.
Use of GIN in Central America
The GIN was developed with Central American governments and private sector organization focussed on tourism with the support of the Swiss Agency of Development and Cooperation (SDC) from 2008 – 2011. Due to high demand, eight separate pilot GINs were launched in the region working with governments and private sector organizations. To access a summary of GIN pilot activity, click here.
To access the User Guide of the Central American Tourism GIN, click here.
GIN enables Catalytic Dynamic Exchanges
Testimonials from Nicaragua Pilot GIN
“[The GIN] is a very satisfactory channel for discussion and open dialogue. [It is] an effective tool that allows us to participate in the process of finding solutions to problems [posted on the network]. Even though there may not be immediate solutions for all issues, alternatives are found through the coordination of the private and public sectors, in a short time period.”
– Private Sector Investor, Nicaragua
“I trust this network. I have posted my recommendations because I am sure we are listened to. We are given answers and the answers are satisfactory.”
– CEO of Nicaragua company, Nicaragua
“The GIN is extremely helpful. It provides access to high level government officials.”
– Executive Director, Nicaragua Tourism Association
“The GIN fills the gap between the decision process and the actual market reality. With the participation of public sector members, decision makers have a unique opportunity to know first-hand what is happening in the market and how it is affecting their particular field of work, and the private sector members have, on the other hand, a unique opportunity to learn about other factors and variables that affect their industry.”
– High-level government official, Pro-Nicaragua (Investment Promotion Agency)
“The GIN has created an inquiry-response coordination mechanism between the private sector and the government that has allowed the government to improve its performance with regards to the development of the tourism industry of our country.”
– High-level government official, Tourism Ministry, Nicaragua