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The role of national social dialogue institutions in shaping investment policies
Other publication - Working Paper   Open access

The role of national social dialogue institutions in shaping investment policies

Vongai Masocha
ILO working paper, 171, ILO
2026
DOI:
https://doi.org/10.54394/00033984

Abstract

investment policy foreign investment multinational enterprise social dialogue institutional framework decent work
Foreign direct investment (FDI) and multinational enterprises (MNEs) can drive skills development, technology transfer and economic growth; however, these benefits are not automatic. Effective public policy and strong social dialogue are essential to ensure FDI contributes to decent work, social inclusion and sustainable development. This study examines how national social dialogue institutions (NSDIs) influence trade, investment and responsible business conduct (RBC) policies to align FDI with national development priorities. Drawing on eleven case studies covering eight countries and one regional bloc, it highlights emerging practices where social partners engage in shaping sustainable FDI strategies through dialogue, institutional collaboration and policy development, guided by the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy (MNE Declaration). The findings reveal both opportunities and challenges in strengthening the role of NSDIs and outline policy options for enhancing their mandates, institutional capacities, inclusiveness and effectiveness.
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