Emerging market countries requiresubstantial foreign investment for development, economicgrowth,and poverty alleviation. There are multiplechallenges to attracting this investment, however, rangingfrom political and economic instability to corruption, poorsecurity, and small market size. An additional challenge isinadequate delivery of key services like electricity andother utilities that private firms and investors rely on.Service performance guarantees are a promising approach toaddressing this issue. These guarantees enable firms topurchase protection against poor or insufficient servicedelivery, and they may work particularly well in industrialor export processing zones by ensuring that shortfalls inservice delivery are measured, reported, and addressed in atimely manner.