Transcript Slide 1

Regional Coordination Conference
Brussels, March 31st 2011
OECD INVESTMENT COMPACT
FOR SEE COUNTRIES
Vesna Arsić, State Secretary
Ministry of Economy and Regional Development
Co-Chair, South East Europe Investment Committee (SEEIC)
1
Overview of the Investment Compact
• A high-impact regional programme to support
countries in South East Europe to increase growth,
investment and employment through targeted
business climate reforms, active since the year 2000
The geographical scope of the programme
includes: Albania, Bosnia and Herzegovina, Bulgaria,
Croatia, Kosovo under UNSCR 1244/99 (observer),
Republic of Macedonia, Republic of Moldova,
Montenegro, Romania and Serbia.
2
Evolution in the governance of the
SEE Investment Committee
• Between 2000 and 2007, a high-level Steering Group defined the
strategy and programme of work. This group, co-chaired by the OECD
and an OECD member country, was composed of senior government
officials from the region, donors and private sector executives.
• In 2003, the IC introduced a system of regional co-chairmanship for the
programme. The first co-chair from SEE was Romania (2002/3), followed
by Bulgaria (2004/5) and has been Serbia since 2006.
• In April 2007, creation of a new regional institutional structure: The
South East Europe Investment Committee (SEEIC) that replaced the
Investment Compact Steering Group.
• Decisions on the strategy and programme of work now reside solely
with the deputy ministers of economy and state secretaries
representing the region.
• All of the other actors – including the OECD, key donors,
representatives from the private sector, and other international
organisations – participate in the SEEIC as advisors.
3
Evolution in the governance of the
SEE Investment Committee (continued)
•
At the Fifth meeting of the SEE IC on 15 November 2009 at OECD headquarters in
Paris it was agreed that the RCC Secretariat in Sarajevo would assume
management and coordination of the SEE IC following a transition period (of 16
months).
– The purpose for this transfer of responsibility is to give the Western Balkan
economies greater ownership of activities to improve the investment climate
and to allow the OECD IC to focus on providing analysis and policy guidance to
the SEE IC.
•
On 18 December 2009 the OECD External Relations Committee endorsed the
transfer to the RCC Secretariat of the management and coordination functions of
the SEE IC, following a 16 month transition period.
•
The OECD Investment Compact continues providing analytical support and project
work in the domain of policy assessment, strategy, assistance and training for
implementation
4
Current organization of the Investment Compact
until end 2011
SEE Investment Committee
Co-chairs:
OECD Country (Austria) + SEE Country (Serbia) + OECD Secretariat (DAF/PSD)
OECD donor
countries
SEE country
economic
teams
International
organisations
Private sector
Regional
Cooperation
Council
Investment Compact
for South East Europe
Analytical support
Project management
Policy Dialogue:
Assessment:
Strategy:
Assistance and training for
implementation
Regional Working Groups
Human Capital
Investment Promotion
Regulatory Reform
Trade
Investment Reform Index
SME Policy Index
Sector-specific Sources of
Competitiveness
Regional Competitiveness
Initiative
5
Investment Compact Achievements
• Enhanced the investment environment by:
 Accelerating reforms through identification of priorities and guidance on how to
implement them
 Moving countries closer to OECD standards through adherence as observers to
OECD Committees
 Improving brand image with sector specific investment promotion events and
engagement with OECD
• Increased capacity of policy makers through the transfer of OECD methodologies, tools
and instruments taking into account the specific circumstances of the region.
• Promoted a culture of continuous improvement with the systematic monitoring and
evaluation of reforms based the Investment Reform Index and the SME Policy Index
• Helped establish a sustainable process for reform of the business climate at the regional
level through a self-reinforcing mechanism of measurement and actions to improve
measurements
• Encouraged regional ownership of the reform process with the launch of the South East
Europe Investment Committee and regional thematic Working Groups to improve policy
dialogue and implementation of investment reforms.
6
The activity of the Investment compact for South
East Europe focuses on three main areas
Investment Climate &
competitiveness
Recent publications
Projects 2010-2013
• Investment Reform Index
2010
• Sector Specific Sources of
Competitiveness
• Regional Competitiveness
Initiative
SME Policy
• SME Policy Index 2009
• SME Policy Monitoring
and Implementation
Promoting Free Trade under
CEFTA
• Intellectual Property Rights in the
CEFTA 2006 Signatory Parties
• National Treatment Restrictions
and Review of Bilateral
Investment Treaties
• Trade Integration, Industry
Concentration and FDI Flows
• Study on the impact of trade
integration on investment
localisation at sub-national
level
• Independent monitoring of the
elimination of Non-Tariff
Barriers among CEFTA Parties
7
Investment Reform Index 2010
• The IRI assesses investment climate
in 10 economies according to 8
dimensions
• A total of 92 indicators were used
Methodology
• Assessment grids were completed
both by independent experts and
Governments
• Reconciliation meetings were
organised
Results
• A comprehensive publication was
released in May 2010
• Presentation were organised in
each SEE economies
IRI – SEE average score
Tax policy analysis
Regulatory reform and
parliamentary
processes
Access to Finance
Trade policy and
facilitation
Human capital
development
Investment Policy and
Promotion
0
1
2
Score
3
4
8
Regional Competitiveness Initiative
Objectives
• Support medium and long-term competitiveness of the Western Balkans.
• Provide capacity building support to Western Balkan public administrations via
pilot projects.
Focus Areas
• Human capital development – identify and address major skills gaps.
• Innovation – strengthen innovative capacities and support absorption of
technology by the private sector.
• Sector specific policy reform – expedite reforms in sectors deemed to posses
comparative advantages.
Timeline
• Launched in June 2010 at Sixth SEE IC Meeting in Paris.
• First pilot projects are launched in Q1 2011
• Innovation and Human Capital Working Groups to be held in Q2 2011
Financial support by the European Commission (DG Enlargement)
9
SME Policy Monitoring and Implementation
Objectives
• Monitor, design, and implement effective policies to support the SME
sector in South East Europe.
Achievements
• Two regional assessments of SME policy reforms have been published in
2007 and 2009 based on the European Charter for Small Enterprises and in
co-operation with the EC, ETF, and EBRD.
Next steps
• A third SME policy assessment will be launched in 2011 based on the Small
Business Act and with the inclusion of Turkey in the process.
• In addition, PSD is assisting the Government of the Republic of Moldova in
developing a coherent and well structured policy towards the SME sector.
10
CEFTA 2006 – related projects
• Investment-related clauses (financially supported by EU)
 2008 – 2009: provided support in monitoring the implementation of the
agreement investment-related clauses and estimated the impact of regional
integration on FDI flows
 2010 – 2012: map FDI and investment location within CEFTA Parties and review
progress in implementation of the CEFTA government procurement clauses (in
cooperation with SIGMA)
• Non-tariff barriers (NTBs) to trade
 2009 – 2010: delivered to the CEFTA Parties an action plan to eliminate NTBs and
provided assistance in implementing the recommendations (financially supported
by Hungary)
 2010 – 2012: perform independent monitoring of the elimination of NTBs among
CEFTA Parties (financially supported by EU)
11
Policy deliberation
• Multiple forums for policy dialogue, including:
– SEEIC working groups:
•
•
•
•
•
•
Regulatory reform
Investment policy and promotion
Trade policy and facilitation
Tax policy
Human Capital
Innovation
– Regional institutions and structures dedicated to specific policy
areas (CEFTA, PPPs, A2F, Infrastructure, etc.)
• Position SEEIC as the main focal point for all investmentrelated reforms and deliberations
12
Growth in real GDP 2010
(EBRD forecast as of January 19, 2011)
2008
2009
2010
2011
Albania
7.8
3.3
3.8
2.6
Bosnia &
Herzegovina
6.0
-2.8
0.8
2.2
Bulgaria
6.2
-4.9
0.4
2.6
Croatia
2.4
-5.8
-1.3
2.0
Macedonia
4.8
-0.9
0.8
3.2
Moldova
7.3
-6.5
6.5
4.5
Montenegro
6.9
-5.7
0.2
3.1
Romania
7.3
-7.1
-1.9
1.1
Serbia
5.5
-3.1
2.0
3.0
13
Key developments and challenges for
sustainable growth of SEE countries
• Although region have made a steady progress, the economy in SEE
countries remains vulnerable to weakness in the global economy (GDP
growth recovery, fiscal and current acc. deficits)
• Transition indicators for 2010 shows maximum achievements in price
liberalisation and trade
• Further reforms are needed to improve the business environment, start
up costs and administrative burden for enterprises
• The degree of private sector in infrastructure and energy sectors is
limited, and privatisation and companies restructuring are still not
completed
• FDI and know-how are needed to improve productivity and efficiency
• Key priorities in financial sector are to further strengthen the regulation
and support development of local capital markets
14
Creation of competitive advantages which would lead
toward a knowledge-based economy and sustainable
growth is of utmost importance
Sustainable
growth
Knowledge economy
Investments in
infrastructure
Creation of efficient and
transparent public
administration
Innovative
activity
Stable business
environment
Creation of
stable business
environment
Incentives which will
encourage investments
in R&D
Well established Entrepreneurship
education system
activity
Macroeconomic
Efficient public
stability
administration
Skilled
workforce
Infrastructure
15
A Western Balkans Technology Investment Fund will
provide much needed venture capital to innovative
companies and help in retaining its top talents
Strong education
system and
infrastructure
Start-up
incubators
Venture capital
gap
Self-supporting
companies
• 500 million Euro
• Technology start-
• Regional based
infrastructure
investment from
2010 to 2015
• Goal is to facilitate
the identification,
education and
nurture of
technological and
entrepreneurial
talent
up incubators exist
across the region
• Belgrade
Technology
incubator houses
several companies
across diverse
fields
• Focus is on
achieving selfsufficiency
technology
companies
• Focused on driving
high value add and
export competitive
products
WBTF
• Joint effort between all
WB countries
• 100 million Euros in
capital
• 11% WB country
participation
• 10% private capital
• 79% (EC and IFIs)
16
Thank you for your attention!
Republic of Serbia
Ministry of Economy and Regional Development
www.merr.gov.rs
17