Columbia International Affairs Online: Policy Briefs

CIAO DATE: 03/2015

How to deal with the growing incentives competition

Kenneth P. Thomas

September 2014

Columbia Center on Sustainable Investment


The use of subsidies to attract investment costs government billions of dollars annually, making regulation urgent. While comprehensive limitations such as the EU’s are not likely soon, we should improve transparency, have major stakeholders promote incentive rules within preferential trade areas, strengthen WTO notifications, and ban relocation subsidies where possible.