Broad-based economic growth is the single most important driving force behind poverty reduction and the improvement of living standards. Such growth, however, only occurs when economic agents are given appropriate incentives to undertake investments in human and physical capacity and to heighten the productivity of factor inputs. This central lesson of economics, although simple, is ill-learnt. Throughout the world, misguided regulations and inadequate infrastructure cause economic resources and human effort to be directed away from productive uses and towards the enrichment of the few. As a result, many sections of the population are hindered from productively contributing to their economy and from sharing in the considerable opportunities opened up by globalization. Changing this situation for the better is only possible through the reform of the investment climate.

In this paper, we seek to assess and compare the investment climate of Brazil, India, and South Africa, drawing on the Investment Climate Assessments (ICAs) and Doing Business indicators produced by the World Bank Group. We focus particularly on identifying the commonalities and differences both within and between countries, with a view to highlighting areas in which the three countries may be able to learn from each other and, in a few cases, from within themselves.

This paper was written by Andrew Beath under the supervision of Qimiao Fan, Michael Jarvis, and Jose Gullerme Reis

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