Two types of factors, according to experts, have a direct impact on the investment attractiveness of a country:

• Soft – everything that determines the relationship between government and business: legislation, taxation and finance;
• Hard – related to geographic location, existing infrastructure, labor potential and natural resources.

If we delve deeper into the essence of the issue, the investment attractiveness of a country is a complex and multifactorial phenomenon, which is determined by the following indicators:

• Crime level;
• Poverty level;
• Cultural and social conditions;
• Natural and climatic conditions;
• Workforce engagement and quality;
• Stability of political power;
• Transparency and accessibility of legislation: the presence of additional laws in investment is a stimulating and significant factor for increasing interest among investors;
• Transparency of internal policy.

However, it bears remembering that investment attractiveness is not a constant value: if you work in this direction, the indicator will improve. The Republic of Belarus is a striking example of this: a targeted investment policy pursued year after year brings results - there is a serious influx of attention to Belarusian projects from private business. Here are just some of the business conditions that arouse keen interest:

• General guarantees and protection of private property;
• Domestic and foreign investors are given the same rights, which entitles them to demonstrate effective work under equal conditions;
• Possibility of introducing individual preferential conditions, for example, deduction of VAT in full;
• Exemption from customs duties if equipment and raw materials are imported into the country;
• Additional preferences and benefits that apply to the SEZ, and also concern the Great Stone industrial park and HTP;
• In certain cases, it is possible to be exempt from income and real estate taxes, as well as income taxes, referring to investment projects implemented in small and medium-sized cities, etc.

It should be understood that the list of benefits and special conditions is determined by the nature of the investment project and depends on a number of circumstances: the export component, the need to build new infrastructure facilities, innovative technologies, as well as the specifics of the project, etc. are taken into account.  

Investment attractiveness and investment climate differences

These two concepts should not be confused. They are similar, since they are based on the characteristics of the investment environment, but in the first case a short time period is taken (up to one year), and in the second case, in order to get an objective picture, several years are taken for analysis.

The investment climate is the result of the interaction of many conditions that can be united into three groups:

• Hidden risks (for example, environmental factors);
• Opportunities and prospects for development (resource base, geopolitical position factor, modern infrastructure);
• Legislation (a clear mechanism for protecting property rights).

The attractiveness of the investment climate is directly affected by:

• Absence of any restrictions for entrepreneurs;
• Competitiveness;
• Existing investment or business barriers
• Quality of labor
• Current tax legislation.

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