and incentives can send signals to funders about the transparency of transactions and
indicate a safe investment environment. Figure 5.12 suggests, that even though these
frameworks and incentives do not attract FDI and ODA in themselves (and are not
the only motivations that influence donors decisions over resource allocation), they
act to correct market failures, information asymmetries and structural deficiencies,
promoting in the process guarantees to investors, local partners and the wider labour
force (Barbour 2005; Dunning 2004). Donor quality and profile also influence the
influx of ODA, which is subsequently affected by regulations that structure the
means for such transactions. Scholars have suggested that mature and stable regulatory frameworks can (a) protect national and international investors, (b) encourage
transparency against corruption, (c) promote enforcement mechanisms, (d) facilitate
compliance through the elimination of bureaucracy and (e) allow for flexibility to
address emerging issues (Schwerhoff and Sy 2017; Schoentgen and Gille 2017;
UNCTAD 2018; Barbour 2005). Incentives may take several forms such as generic
economic incentives (e.g. tax exemptions, cash grants) and sector-related mechanisms such as payment for ecosystem services (PES) schemes, debt-for-nature
swaps, incentives to land users and stewardship programs (UNCTAD 2018; Barbour
2005; Cumming et al. 2017).
Fig. 5.11 Social network analysis for capacity-building interventions
178
J. Lopes et al.
indicate a safe investment environment. Figure 5.12 suggests, that even though these
frameworks and incentives do not attract FDI and ODA in themselves (and are not
the only motivations that influence donors decisions over resource allocation), they
act to correct market failures, information asymmetries and structural deficiencies,
promoting in the process guarantees to investors, local partners and the wider labour
force (Barbour 2005; Dunning 2004). Donor quality and profile also influence the
influx of ODA, which is subsequently affected by regulations that structure the
means for such transactions. Scholars have suggested that mature and stable regulatory frameworks can (a) protect national and international investors, (b) encourage
transparency against corruption, (c) promote enforcement mechanisms, (d) facilitate
compliance through the elimination of bureaucracy and (e) allow for flexibility to
address emerging issues (Schwerhoff and Sy 2017; Schoentgen and Gille 2017;
UNCTAD 2018; Barbour 2005). Incentives may take several forms such as generic
economic incentives (e.g. tax exemptions, cash grants) and sector-related mechanisms such as payment for ecosystem services (PES) schemes, debt-for-nature
swaps, incentives to land users and stewardship programs (UNCTAD 2018; Barbour
2005; Cumming et al. 2017).
Fig. 5.11 Social network analysis for capacity-building interventions
178
J. Lopes et al.