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| | An Evaluation of World Bank Investment Climate Activities |
 | | The quality of a country's investment climate is determined by the risks and transaction costs of investing in and operating a business, which in turn are determined by the legal and regulatory framework, barriers to entry and exit, and conditions in markets for labor, finance, information, infrastructure services, and other productive inputs. |
 | | IFC influences the investment climate through its Technical Assistance and Advisory Services (TAAS) to both the public and private sectors, and through its investment operations - directly by increasing the quantity and quality of infrastructure and financial and social sector services, and indirectly through the demonstration effects of investment projects in all sectors. |
 | | Strategies for improving the investment climate have suffered from a lack of knowledge about what types of institutional arrangements will work in different environments, and about the dynamic process of change that is needed. |
| www.worldbank.org /ieg/investment_climates (982 words) |
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