The role of national social dialogue institutions in shaping investment policies

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.