International investment plays a pivotal role in driving economic growth and sustainable development, often serving as a major source of external finance for developing countries. It helps countries to connect to international markets, mobilize global resources and bridge financing gaps for essential investment projects. It also serves as a vehicle for technology transfer, innovation, competitiveness, local capital investments, employment and tax revenues. International investment leads to improved domestic institutions, technological and human development, increased productivity, poverty reduction and many more positive effects, all of which are crucial for the achievement of the Sustainable Development Goals.
However, corruption seriously impedes these efforts. It negatively affects the attraction and retention of foreign investments, fair competition and investment quality, resulting in long-lasting consequences for the economy, environment and society. Corruption compromises the intended benefits of investment and may lead to inflated costs, unproductive debts and decreased quality of life for the public.
Challenges are particularly pronounced if countries lack adequate anti-corruption policies, legislation and effective institutional frameworks with sufficient capacity and resources. Challenges can also arise from the absence of proactive investment policies and practices that promote integrity and integrate specific anti-corruption safeguards in foreign direct investment and international investment projects fostering sustainable and inclusive development.
States parties to the United Nations Convention against Corruption have recognized the scale and impact of these challenges. For example, the Conference of the States Parties to the United Nations Convention against Corruption adopted a resolution at its eighth session that noted the importance of minimizing corruption opportunities and the transfer of proceeds of crime in this context. In addition, the political declaration, adopted by the General Assembly during its special session against corruption in 2021, highlighted the positive role of international investments and the importance of minimizing opportunities for all acts of corruption.
UNODC
The international investment site provides an overview of UNODC’s activities in promoting integrity and anti-corruption in international investment. The site contains relevant knowledge products and tools developed by UNODC and other stakeholders on the topic
UNODC, 2023
This publication lays down the prerequisites for ensuring integrity in international investment projects illustrated by a range of concrete examples and good practice models (GPMs) from major projects in various countries and industries during each phase of the investment cycle.
UNODC, 2023
This project handbook was developed under the project ‘Fostering sustainable development by supporting the implementation of the United Nations Convention against Corruption in countries along the Silk Road Economic Belt.’ It aims to provide guidance on strengthening integrity and compliance for businesses participating in international investment projects and beyond.
UNODC, 2021
UNODC and UNCTAD co-hosted an expert group meeting focusing on the intersection of corruption and international investments. This document presents the main points that emerged from the presentations and discussions during the two-day meeting.
