Rich the whole point about the confidence fairy is to address the issue of commentators' constant pearl clutching about investor confidence, just as you are doing.
Some policies, such as those in Kenya and Ethiopia are aimed at pleasing investors; other policies, such as those in Japan (and to a lesser degree recently in Argentina) are rather aimed at fostering internal markets instead of prostrating the internal economy to foreign capital.
Since you know nothing of Kenya and Ethiopia's economies I can give you a quick sketch: most of the people live at a subsistence level beyond what has ever been experienced here. In both countries (at least since the end of Ethiopia's civil war in the early 90s) have focused on privatising resources and minimising social programmes. Investors just love that kind of crap, although it's not so good for 98% of the population.
The point is: who should policy be developed for? Investors whose goals are almost always contrary to the good of the majority or the masses; or to quote Adam Smith on this topic:
[font=Times New Roman']The rate of profit does not, like rent and wages, rise with the prosperity and fall with the declension of the society. On the contrary, it is naturally low in rich and high in poor countries, and it is always highest in the countries which are going fastest to ruin. The interest of this third order [investors], therefore, has not the same connection with the general interest of the society as that of the other two. Merchants and master manufacturers are, in this order, the two classes of people who commonly employ the largest capitals, and who by their wealth draw to themselves the greatest share of the public consideration.... As their thoughts are commonly exercised rather about the interest of their own particular branch of business, than about that of the society, their judgment, even when given with the greatest candour (which it has not been upon every occasion) is much more to be depended upon with regard to the former of those two objects than with regard to the latter. Their superiority over the country gentleman is not so much in their knowledge of the public interest, as in their having a better knowledge of their own interest than he has of his. It is by this superior knowledge of their own interest that they have frequently imposed upon his generosity, and persuaded him to give up both his own interest and that of the public, from a very simple but honest conviction that their interest, and not his, was the interest of the public. The interest of the dealers, however, in any particular branch of trade or manufactures, is always in some respects different from, and even opposite to, that of the public. To widen the market and to narrow the competition, is always the interest of the dealers. To widen the market may frequently be agreeable enough to the interest of the public; but to narrow the competition must always be against it, and can serve only to enable the dealers, by raising their profits above what they naturally would be, to levy, for their own benefit, an absurd tax upon the rest of their fellow-citizens. The proposal of any new law or regulation of commerce which comes from this order ought always to be listened to with great precaution, and ought never to be adopted till after having been long and carefully examined, not only with the most scrupulous, but with the most suspicious attention. It comes from an order of men whose interest is never exactly the same with that of the public, who have generally an interest to deceive and even to oppress the public, and who accordingly have, upon many occasions, both deceived and oppressed it.[/font]
