Index for Forest Investment Attractiveness (IAIF): An Introduction Presented at the Foro Latinoamericano de Inversiones en Bosques Tropicales: Temas y Oportunidades de Inversión en los Bosques Tropicales Naturales. 23-4 de noviembre de 2006 / Curitiba, Brasil. Promoted by the International Timber Trade Organization (ITTO) and Partners.

2. Foro latinoamericano de inversiones en bosques tropicales:
temas y oportunidades de inversión en los
bosques tropicales naturales
23-24 de noviembre de 2006 / Curitiba, Brasil
Index for Forest Investment
Attractiveness (IAIF):
An Introduction
Dr. José Rente Nascimento
Inter-American Development Bank

3. IAIF - Objectives
General objective: To measure the business
climate for investments in sustainable forest
businesses.
The IAIF allows the systematic, periodic,
quantitative and more rigorous analyses of
the factors that affect the success of forest
direct investment and business decision-
making.

4. IAIF principal clients
• International investors and entrepreneurs
• Domestic investors and entrepreneurs
• Governments (national, regional or local)
• National and international NGOs
• Bilateral and multilateral donors

5. The IAIF is useful for
• representing the forest business climate
as a single number per nation
• initial screening BY INVESTORS of
countries with best investment climate
for sustainable forest businesses
• facilitating a more precise and
constructive dialogue about forest
business climate issues among
stakeholders

6. The IAIF allows analysis of:
Measured
(real)
Measured
(real)
Potential
(potential maximum)
Potential
(potential maximum)
Differential
(potential improvement)
Differential
(potential improvement)
Contribution to IAIF
(weighted)
Contribution to IAIF
(weighted)
SimulationsSimulations

7. Methodology
20 indicators; >80 variables

8. IAIF Real (measured) - 2002

9. IAIF real, potential, and differential
0 20 40 60 80 100
Barbados
Jamaica
Trinidad y Tobago
Bahamas
Costa Rica
El Salvador
Haití
Belice
Guatemala
Rep. Dominicana
Uruguay
Ecuador
Guyana
Surinam
Panamá
Nicaragua
Paraguay
Honduras
Chile
Bolivia
Perú
Venezuela
Argentina
Colombia
México
Brasil
IAIF ACTUAL (2002) IAIF DIFERENCIAL (2002)

10. Recent developments
• IDB licensed FGV and INCAE to calculate
the IAIF every two years and to provide
associated goods and services to
governments and the private sector
• IAIF 2004 will be published later in 2006
• IAIF-BRAZIL: Index will be adjusted and
calculated for Brazil’s states.
• Development of Sub-Indices for plantations
and natural forests.
• Possible implementation in Africa and Asia
(ITTO, FAO).

11. IAIF 2006 (2004 data)
Preliminary Results
• For South America
– Getulio Vargas Foundation
• For Central America, Caribbean, and
Mexico
– INCAE Business School