A study of the impact of economic policies on the quality of the investment environment was one of the first research initiatives conducted by The Bleyzer Foundation. The study was based on a comprehensive factor and regression analysis of variables that influence the volume of foreign direct investment in over 100 developing countries.
The study, which was later called The Bleyzer Initiative, identified the following key drivers that influence the quality of the investment environment in a country:
- Macroeconomic stability, which includes measures aimed at promoting internal stability (stable prices) and external stability (stable foreign exchange rates)
- Liberalization and deregulation of business activities, which enables firms to operate freely in a competitive market, including free (unobstructed) entry and exit
- Stability and predictability of the legal environment, which establishes an unambiguous and non‐discriminatory even legal playing field for all market participants
- Effective corporate and public governance, which ensures real protection of property rights and renders discrimination of the private sector by government agencies impossible
- A strong financial sector, with sufficient potential to meet the needs of the fast‐growing economy
- Measures aimed at minimizing corruption and protecting firms from any unlawful actions by government officials
- Activities aimed at reducing the impact of political risks on business activities
- Measures that effectively advertise a region’s investment opportunities to potential and active investors
Based on the results of this study, the Bleyzer Foundation performs comprehensive periodic reviews of the quality of the investment climate in SigmaBleyzer’s regions of operation. The results of this analysis, as well as region‐specific characteristics and opportunities, are used by The Bleyzer Foundation to outline policy actions that will improve the region’s investment climate. The Bleyzer Foundation regularly prepares detailed country and regional reports on economic performance and investment climate. The governments of these regions have been using these reports as guidance to develop sound economic policies.