GROWING USE, UNCERTAIN BENEFITS, UNEVEN CONTROLS. By Kenneth P. Thomas. Global Subsidies Initiative/International Institute for Sustainable Development, November 2007. This report analyzes governments’ use of investment incentives. These subsidies are designed to induce an investor to choose one location over another, affecting the location of an investment. They can thus be distinguished from production subsidies, which are not contingent on investment, but are instead based on normal production. Investment incentives have been around for over 100 years. But it was only in the late 20th century that governments around the world began offering direct grants, tax breaks, training funds, free infrastructure and other inducements to attract corporate investment. While often thought of as a competition to attract foreign direct investment, competition is equally strong for domestic firms. The most intense competition and the largest subsidies are given to well-known multinational companies who make large investments. Available at http://www.iisd.org/publications/pub.aspx?pno=928.
RECLAIMING POLICY SPACE: LESSONS FROM MALAWI’S FERTILISER SUBSIDY PROGRAMME. By Blessings Chinsinga. Future Agricultures Consortium, 2007. This paper looks at a fertiliser subsidy programme in Malawi that, despite donor disapproval, has proved popular with farmers and has thus far helped improve food security. Available at http://www.future-agricultures.org/WDR/Briefing_Malawi_fertiliser.pdf.