Transcript Investment challanges of Montenegro

5th VIENNA ECONOMIC FORUM
First Plenary Session
Investment Policy and Infrastructure Projects
Investment challanges of
Montenegro
Vujica Lazovic, PhD
Deputy Prime Minister for Economic Policy
Government of Montenegro
Budva, Montenegro, April 14th 2008
»I believe that each mean which foster
communication has strong effects in sense
that people can learn from each other and
achieve freedom they are aiming« Bill Gates
Welcome to Montenegro
to Vienna Economic Forum!
Vujica Lazović PhD, Deputy Prime Minister for Economic Policy, Government of Montenegro
Investment Challlanges of Montenegro - 5th Vienna Economic Forum , Budva, 14th April 2008
Montenegro is a success story. The
following data confirm this:
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Real GDP growth over 7%
Unemployment rate about 11%
Inflation close to euro-zone level
Foreign public debt 21% of GDP
FDI 1600€ per capita
Credit rating BB+
Stabilization and Association Agreement.
Vujica Lazović PhD, Deputy Prime Minister for Economic Policy, Government of Montenegro
Investment Challenges of Montenegro - 5th Vienna Economic Forum , Budva, 14th April 2008
Success starts with vision, ideas, ability to
realize them, political wisdom which
Montenegro recognized through:
◦ Stimulating investment environment
◦ Strong will to regain independence
◦ Membership in EU
Vujica Lazović PhD, Deputy Prime Minister for Economic Policy, Government of Montenegro
Investment Challenges of Montenegro - 5th Vienna Economic Forum , Budva, 14 th April 2008
We realized on time that natural beauty
of our country is not enough. To
construct competitive and stimulating
institutional framework is real
challenge.
Vujica Lazović PhD, Deputy Prime Minister for Economic Policy, Government of Montenegro
Investment Challenges of Montenegro - 5th Vienna Economic Forum , Budva, 14th April 2008
Process has started by reforms:
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euro as official currency
stimulating tax policy
liberalized prices
free flow of capital
privatization of 85% state property
activating of capital market
privatized banking sector
reformed education system, social insurance and labor market
Vujica Lazović PhD, Deputy Prime Minister for Economic Policy, Government of Montenegro
Investment Challenges of Montenegro - 5th Vienna Economic Forum , Budva, 14th April 2008
Time is element
which is reality
nevertheless
success or failure!
Vujica Lazović PhD, Deputy Prime Minister for Economic Policy, Government of Montenegro
Investment Challenges of Montenegro - 5th Vienna Economic Forum , Budva, 14th April 2008
Development brings new
challenges and responsibilities:
COMPETITIVENESS
INFRASTRUCTURE
STRUCTURAL UNEMPLOYMENT
REGIONAL DEVELOPMENT
Vujica Lazović PhD, Deputy Prime Minister for Economic Policy, Government of Montenegro
Investment Challenges of Montenegro - 5th Vienna Economic Forum , Budva, 14th April 2008
Challenge 1: Competitiveness
Institutional framework – prior comparative advantage
Further decrease of tax rates
 Eliminating the business barriers
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Vujica Lazović PhD, Deputy Prime Minister for Economic Policy, Government of Montenegro
Investment Challenges of Montenegro - 5th Vienna Economic Forum , Budva, 14th April 2008
Challenge 2: Infrastructure
Tourism and development in general impose new
infrastructural solutions
Own energy sources
 Highways
 Regional water supply pipeline
 Treatment of solid waste and waste water
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Vujica Lazović PhD, Deputy Prime Minister for Economic Policy, Government of Montenegro
Investment Challenges of Montenegro - 5th Vienna Economic Forum , Budva, 14th April 2008
Challenge 3: Structural unemployment
»Generation« confronting of global trends to old system of
education
Human resources are the most
important value of Montenegro
 Reforms aiming at increase of education
system and labor market flexibility
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Vujica Lazović PhD, Deputy Prime Minister for Economic Policy, Government of Montenegro
Investment Challenges of Montenegro - 5th Vienna Economic Forum , Budva, 14th April 2008
Challenge 4: Regional development
Undeveloped North vs. developed South
Young people and investors will be
motivated to become actors of
Northern Montenegro development by…
...Eligible investment conditions
Construction of infrastructure
Opening of university units which
will decrease the differences
Vujica Lazović PhD, Deputy Prime Minister for Economic Policy, Government of Montenegro
Investment Challenges of Montenegro - 5th Vienna Economic Forum , Budva, 14th April 2008
OUR
APPROACH?
Use own
potential and
think within
global
processes as a
necessity in
development
process.
»People always overestimate changes which will
takes place in the next two years and underestimate
those to happen in ten years. Therefore, let do not
allow to be silenced in inaction«, Bill Gates
Montenegro has started new cycle of
activities by new investments in high-end
tourism through valorization of attractive
tourism locations
Vujica Lazović PhD, Deputy Prime Minister for Economic Policy, Government of Montenegro
Investment Challenges of Montenegro - 5th Vienna Economic Forum , Budva, 14th April 2008
I am convinced that, upon
realization of these projects,
Montenegro will have the
highest economy growth rate in the
region!
Vujica Lazović PhD, Deputy Prime Minister for Economic Policy, Government of Montenegro
Investment Challenges of Montenegro - 5th Vienna Economic Forum , Budva, 14th April 2008
I wish you pleasant stay in
Montenegro!
Vujica Lazović PhD, Deputy Prime Minister for Economic Policy, Government of Montenegro
Investment Challenges of Montenegro - 5th Vienna Economic Forum , Budva, 14th April 2008