Transcript Alan Paic and Milan Konopek-Next Generation Competitiveness

Next Generation Competitiveness Initiative
(NGCI)
Presentation by OECD Investment Compact for
the South East Europe Investment Committee
Sarajevo, Bosnia and Herzegovina
19 June 2013
Next Generation Competitiveness Initiative:
Historical context
Sector Specific Sources of
Competitiveness (SSSC)
Regional Competitiveness
Initiative (RCI)
• Identified barriers to sector
competitiveness in three
sectors with policy
recommendations.
• Regional investment
promotion for automotive
• Internships to address ICT skills
• Improve competitiveness
through innovation and human
capital
• Capacity building support via
pilot projects
• Transfer lessons learned
through regional working
groups
Next Generation
Competitiveness Initiative
(NGCI)
• A sectoral approach to
support value chains through
regional cooperation
• SEE 2020 Monitoring
• Access to finance for textiles
Albania, Bosnia and Herzegovina, Croatia, FYR Macedonia, Kosovo*, Montenegro, and Serbia
2007
2008
2009
2010
2011
2012
2013
2014
* This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo Declaration of Independence
2
2015
Next Generation Competitiveness Initiative:
Contribution to SEE 2020
SEE 2020
i. Increase regional GDP PPP per capita from 38% to 46% of the EU-27 average
ii. Grow the region’s total value of trade in goods and services by more than 130%
iii. Reduce the region’s trade deficit from 14.1 to 11.6 percent of regional GDP
Pillar
Integrated growth
Smart growth
Sustainable growth Inclusive growth
Pillar iv. Increase intra-regional
targets trade in goods by more
vi . Increase GDP per person
employed by 33%;
vii. Add 300,000 highly educated
people to the region's workforce
x. Increase the overall
xi . Increase
employment from 40.2% to government
45.2%
effectivenes s by
20% by 2020
Pillar Free
dimen Trade
sions Area
Integrati
on into
global
economy
Educati R&D and Digital
on/
Innovatio Society
Compet n
encies
Employ Skills & Health
ment
inclusive
educatio
n
SEEIC
ERI SEE Regional E-SEE
Research
Platform
than 230%
v. Increase overall FDI
inflows to the region by at
leas t 120%
Dimen CEFTA
sion
coordi
nator
Compet
itive
Econom
ic
Environ
ment
CEFTA
vii. Increase the rate
of enterprise creation
by 20%
ix. Increase exports of
goods&services per
capita from the region
by 130%
Culture Competit Energy &
and
iveness Climate
Creative
Sectors
Governance for
growth
RCC
TFCS
SEEIC
Energy
WG on SEECEL
Community Social
Secretariat Agenda
2020
SEEHN
NGCI Monitoring
NGCI Sector3 work
Public
Administ
ration
Reform
Fighting
Corrupti
on and
Organise
Crime
RESPA
SGRS
Next Generation Competitiveness Initiative:
Sector component objectives
Objectives:
Support SEE 2020 Strategy by identifying and addressing barriers to higher value-added
investment and moving to higher value added activities.
Source: Presentation by Gary Gereffi, Duke University, “Global Value Chains and Development in Latin America:
4
Emerging Trends and New Realities”, 31 October 2012, San Jose, Costa Rica
Next Generation Competitiveness Initiative:
Sector component methodology
Project
preparation
Identify sectors
and establish 3
regional sectorspecific working
groups comprised
of Western Balkan
businesses and
government
officials
Analysis
Assess the
barriers to
competitiveness of
regional value
chains in the
global
marketplace
Capacity building
for reform
Develop
recommendations
and actions to
enhance the
competitiveness of
3 sectors,
addressing the
policy barriers.
5
Next Generation Competitiveness Initiative:
Sector component roadmap
2013
Analysis and short
listing of sectors
Identification of 3
sectors and
designation of
sector working
group membership
Launch of first
sector working
group
2014
2015
Identification of key
constraints limiting
sector
competitiveness
Identify appropriate
bodies to implement
recommendations and
pilot actions
Develop
recommendations
and actions in each
sector working
group
Develop a monitoring
system for the
Greater time and staff commitment
implementation of
actions
Review key lessons
learned throughout
project
6
Next Generation Competitiveness Initiative:
Sector component development process
June – September
Analysis
• Data
collection
• Desk research
• Consultation
with OECD
and technical
experts
October
Short list
developed
Selection of
sectors
• Proposal
drafted
• First WGC
meeting
November
2014
Composition
of sector
groups
• Consultation
with WGC to
identify
• Endorsement by members of
SEEIC
working groups
7
First Working
Group meeting
Analytical framework for sector selection
Competitiveness of the Western Balkans sectors in the global
marketplace
Potential for regional cooperation
Value-added potential
8
Analytical framework for sector selection
Competitiveness of the Western Balkans sectors in the global
marketplace
Potential for regional cooperation
Value-added potential
9
Services account for the largest and increasing share of GDP
Sectors' share of GDP in
the Western Balkans
Sectors' share of GDP in 2010 in the
WB and CE
100
100
90
80
80
70
60
60
50
40
40
30
20
20
10
0
0
2000
2010
Agriculture
Western Balkans
Industry
Services
Central Europe
10
FDI has been mainly market-seeking and
concentrated in services
FDI Stocks by Activity in 2010 (% of Total FDI Stocks)
Financial intermediation
Wholesale, retail trade, repair of motor
vehicles etc
23.7%
Transport, storage and communication
33.1%
Construction
Real estate, renting and business
activities
3.9%
Mining and quarrying
2.3%
Hotels and restaurants
2.3%
7.0%
Other
15.5%
2.2%
Manufacturing
9.9%
11
NB: Data include Albania, Bosnia and Herzegovina, Croatia and the FYR Macedonia
Travel accounts for the largest share of service exports
Service exports in 2011 (bn USD)
0
2
4
6
8
10
12
14
Travel
Legal, accounting,
consulting,
architectural, etc.
services
Other business services
Transportation
Communications services
Construction services
Computer and information services
Includes business and
personal travel
Road, railway, sea
and air passenger and
freight transport
Personal, cultural, and recreational services
Financial services
Royalties and license fees
Insurance services
ALB
BIH
HRV
MNE
SRB
MKD
12
Source: UN Service Trade Database
RCA indices show the export specialisation of WB economies
Low tech
Medium-Low tech
Medium-high tech
High tech
RCA indices in 2009
Wood and Cork
Textiles, Leather and Footwear
Other Non-Metallic Mineral Products
Food, Beverages and Tobacco
Fabricated Metal Products
Basic Metals
Electrical Machinery and Apparatus n.e.c
Rubber and Plastics Products
Pulp, Paper, Printing and Publishing
Coke, Petroleum Products
Other Transport Equipment
Machinery and Equipment, n.e.c
Chemicals and Chemical Products
Motor Vehicles, Trailers and Semi-Trailers
Pharmaceuticals
Medical, Precision and Optical Instruments
Radio, TV and Communication Equipment
ICT
Office, Accounting and Computing Machinery
CEFTA
3.91
2.29
2.25
1.92
1.68
1.61
1.23
1.16
1.09
1.06
0.92
0.67
0.50
0.29
0.23
0.21
0.20
0.19
0.15
ALB
1.32
8.75
2.33
0.80
2.09
0.93
0.63
0.37
1.00
0.27
0.02
0.11
0.06
0.04
0.05
0.04
0.07
0.07
0.10
BIH
7.50
2.09
1.47
0.97
2.69
1.89
0.56
0.73
1.17
0.92
0.20
0.61
0.40
0.51
0.04
0.10
0.02
0.04
0.02
HRV
5.07
1.45
3.31
1.51
1.71
0.48
1.71
0.63
1.07
2.02
1.96
0.86
0.63
0.27
0.21
0.28
0.34
0.28
0.16
MKD
0.51
5.00
2.24
2.02
0.99
3.77
0.48
0.84
0.32
0.20
0.08
0.30
0.46
0.10
1.34
0.16
0.03
0.06
0.05
MNE
5.54
0.12
0.25
2.08
0.75
8.71
0.07
0.08
0.64
0.42
0.23
0.82
0.09
0.12
0.03
0.03
0.04
0.04
0.04
SRB
2.38
1.66
1.33
2.61
1.48
2.22
1.19
2.33
1.45
0.43
0.45
0.67
0.52
0.32
0.06
0.20
0.20
0.22
0.27
13
Source: Based on OECD STAN BTD. CEFTA also includes Moldova. No data available for Kosovo*
Which sectors have potential for future growth?
Growth in WB exports and EU27 import demand
WB exports (annual growth 2006-2011)
16%
Chemicals
14%
Machinery and
Equipment
12%
Paper, Printing and
Publishing
10%
8%
Pharmaceuticals
Fabricated metals
Manufacturing n.e.c.;
Recycling
Basic Metals
Transport
Coke and petroleum
products
Rubber and Plastics
Food products,
Beverages and
Tobacco
6%
Wood and Cork
4%
Textiles and leather
Non-Metallic Mineral
Products
2%
0%
0%
2%
4%
6%
8%
Growth in EU27 imports (annual growth 2006-2011)
Source: based on OECD STAN BTD
10%
12%
14
Analytical framework for sector selection
Competitiveness of the Western Balkans sectors in the global
marketplace
Potential for regional cooperation
Value-added potential
15
Depending on the industry, supply chains tend to be more or less
regional
Intra and extra-CEFTA exports (%) of intermediate goods in 2009 by disaggregated industries
0
20
40
60
80
100
Other Non-Metallic Mineral Prod.
Food, Beverages and Tobacco
Office, Computers
Coke, Petroleum Products
Paper, Printing and Publishing
Chemicals
Fabricated Metal Products
Rubber and Plastics
Basic Metals
Wood and Cork
Electrical Machinery n.e.c
Medical, Instruments
Machinery and Equipment, n.e.c
Textiles, Clothing
Motor Vehicles, Trailers
Other Transport Equipment
Radio, TV and Communication
Manufacturing n.e.c; Recycling
intra-CEFTA
extra-CEFTA
16
Source: OECD (2012). CEFTA also includes Moldova. No data available for Kosovo*
Depending on the industry, supply chains tend to be more or less
regional
Intra and extra-CEFTA exports (%) of intermediate goods in 2009 by disaggregated industries
0
20
Other Non-Metallic Mineral Prod.
Food, Beverages and Tobacco
Office, Computers
Coke, Petroleum Products
Paper, Printing and Publishing
Chemicals
Fabricated Metal Products
Rubber and Plastics
Basic Metals
Wood and Cork
Electrical Machinery n.e.c
Medical, Instruments
Machinery and Equipment, n.e.c
Textiles, Clothing
Motor Vehicles, Trailers
Other Transport Equipment
Radio, TV and Communication
Manufacturing n.e.c; Recycling
40
60
Office machinery and
computers
intra-CEFTA
extra-CEFTA
80 Glass and100
glass
products, clay,
ceramics, bricks,
cement, lime and
plaster, cutting and
shaping
Electric valves and tubes,
television and radio transmitters,
television and radio receivers,
sound or video recording
apparatus
17
Source: OECD (2012). CEFTA also includes Moldova. No data available for Kosovo*
The RCA matrix helps identify economies’ positions in
supply chains
RCA in final good exports
Other / No
evidence of supply
chains
Final stage supply
chains
No propensity to import
intermediate goods
Propensity to import
intermediate goods imports
First stage supply
chains
Intermediate stage
supply chains
RCA in intermediate good
exports
Source: OECD (2012)
18
An example: Serbia’s industries’ positions in supply
chains
4
Other / No Evident
International
Supply Chains
Food, Beverages,
Tobacco
RCA in final goods
exports
Final Stage
Supply Chains
3
Fabricated Metal Prod.
Textiles, Clothing
2
1
No propensity to import
intermediate goods
Propensity to import
intermediate goods
0
1
Electrical Machinery
2
Food, Beverages,
Tobacco
3
First Stage
Supply Chains
Paper, Printing,
Publishing
RCA in intermediate
4
goods exports
Year: 2009
Other Non-Metallic
Fabricated Metal Prod.
Mineral Prod. Manufacturing n.e.c.
Basic Metals
Paper, Printing,
Publishing
Wood, Cork
Rubber, Plastics
Intermediate Stage
19
Supply Chains
WB economies present supply chain complementarities in selected
sectors
Economies’ positions in supply chains (2009)
Industry
First stage
Food, beverages and tobacco
Intermediate stages
SRB
BIH HRV MKD MNE
Textiles, Clothing
ALB BIH HRV MKD SRB
Wood and Cork
Paper, Printing and Publishing
Coke, Petroleum Products
BIH HRV MNE SRB
ALB BIH
ALB BIH HRV SRB
BIH SRB
HRV
Rubber and Plastics
Basic Metals
MKD SRB
BIH MNE
MKD SRB
Fabricated metal products
BIH
ALB HRV MKD SRB
Electrical machinery, nec
HRV SRB
Motor vehicles, Trailers
Final stages
BIH
Source: OECD (2012). No data available for Kosovo*
SRB
20
Governments in the region support similar sectors
Sectors prioritised by WB economies
ALB
BIH
HRV
XK
MKD
MNE
SRB
Metal industry
Textile, Apparel
Wood processing
Agro-food
Mining
Construction
Automotive
Pharmaceuticals
ICT
Tourism
Banking
Energy
21
Source: based on National Strategies and Investment Promotion Agencies
Analytical framework for sector selection
Competitiveness of the Western Balkans sectors in the global
marketplace
Potential for regional cooperation
Value-added potential
22
Broader criteria to be used for identification of areas of local
current and potential strengths
Broader criteria to be used for identification of areas of local
current and potential strengths
Generic indicators
Skills of labor force
Education and skill levels of
labour force, continuous
vocational training data,
productivity per hour
Production and service
quality
ISO9001 and ISO1400
certificates, trademarks and
design, export and export unit
prices
Software capabilities and
skills
CMM Certificates
Engineering capabilities
and skills
Value of engineering services
including export
R&D capabilities
Publications, patents, utility
patents, R&D contracts
Industry specific indicators and
expert assessments*
* Industry specific indicators could be developed in consultation with industry experts
Source: “Industrial upgrading through value chains in Western Balkans: the issues for analysis” Presentation by Prof. Slavo Radosevic, NGCI
Workshop, OECD
23
How to assess the future growth potential of sectors?
Austria
35
Germany
Potential ‘SEE flying
geese’ pattern
33
Italy
27
Slovenia
25
Greece
GDP pc PPP const 2005$
in 000’s
Identify sectors with
declining RCA in countries
whose GDP pc is twice of
individual WB countries
24
Hungary
17
Croatia
16
Turkey
13
Bulgaria
11
Romania
11
Serbia
10
Source: “Industrial upgrading through value chains in Western Balkans: the issues
for analysis” Presentation by Prof. Slavo Radosevic, NGCI Workshop, OECD
Albania
8
Bosnia and
Herzegovina
7
24
Next Generation Competitiveness Initiative:
Sector component development process
June – September
Analysis
• Data
collection
• Desk research
• Consultation
with OECD
and technical
experts
Short list
developed
• Proposal
drafted
October
Selection of
sectors
• First WGC
meeting
• Endorsement by
SEEIC
November
2014
Composition
of sector
groups
• Consultation
with WGC to
identify
members of
working groups
25
First Working
Group meeting
Working Group on Competitiveness
Composition:
Government institutions and departments in charge of competitiveness,
industrial and sector policy.
Activities:
•
•
•
•
•
•
•
Promoting regional cooperation in competiveness policy reforms;
Identification of sectors with potential regional value chains;
Assessing policy barriers to greater value chain development;
Developing policy recommendations at the industry and sector level to
enhance regional value chains;
Reviewing actions to promote regional value chains in the global
marketplace;
Strengthening regional value chains by actively supporting the creation
of transnational clusters and business networks;
Enhancing coordination and peer reviews on SME policy
First meeting: Early October 2013
26
Next Generation Competitiveness Initiative:
Sector component timeframe
2013
2014
2015
2016
Identification of
sectors
Sector group meetings
1st sector
group
Identify barriers
Develop recommendations
Sector work
Sector group meetings
2nd sector
group
Identify barriers
Develop recommendations
Sector group meetings
3rd sector
group
27
Identify barriers
Develop recommendations
Next Generation Competitiveness Initiative:
Contribution to SEE 2020
SEE 2020
i. Increase regional GDP PPP per capita from 38% to 46% of the EU-27 average
ii. Grow the region’s total value of trade in goods and services by more than 130%
iii. Reduce the region’s trade deficit from 14.1 to 11.6 percent of regional GDP
Pillar
Integrated growth
Smart growth
Sustainable growth Inclusive growth
Pillar iv. Increase intra-regional
targets trade in goods by more
vi . Increase GDP per person
employed by 33%;
vii. Add 300,000 highly educated
people to the region's workforce
x. Increase the overall
xi . Increase
employment from 40.2% to government
45.2%
effectivenes s by
20% by 2020
Pillar Free
dimen Trade
sions Area
Integrati
on into
global
economy
Educati R&D and Digital
on/
Innovatio Society
Compet n
encies
Employ Skills & Health
ment
inclusive
educatio
n
SEEIC
ERI SEE Regional E-SEE
Research
Platform
than 230%
v. Increase overall FDI
inflows to the region by at
leas t 120%
Dimen CEFTA
sion
coordi
nator
Compet
itive
Econom
ic
Environ
ment
CEFTA
vii. Increase the rate
of enterprise creation
by 20%
ix. Increase exports of
goods&services per
capita from the region
by 130%
Culture Competit Energy &
and
iveness Climate
Creative
Sectors
Governance for
growth
RCC
TFCS
SEEIC
Energy
WG on SEECEL
Community Social
Secretariat Agenda
2020
SEE 2020 Monitoring
Sector work 28
SEEHN
Public
Administ
ration
Reform
Fighting
Corrupti
on and
Organise
Crime
RESPA
SGRS
Next Generation Competitiveness Initiative:
Monitoring component historical context
2005
2006
4th SEE
ministerial in
Sofia, Bulgaria,
10 June
5th SEE
ministerial in
Vienna, Austria
on 27 June
Ministers agree
on the need for a
regional
framework for
investment
consistent with
EU principles and
inspired by the
OECD Policy
Framework for
Investment.
Ministers
endorse a
“Regional
framework on
Investment”
Completion of
first
Investment
Reform Index
2010
2nd
Investment
Reform
Index
released
2011
2012
2013
6th SEE
Ministerial
7th SEE
Ministerial
8th SEE
Ministerial
SEE 2020
Endorsement
Endorsement
Vision based
of SEE 2020
of SEE 2020
on five pillars
headline
Strategy
(integrated,
targets
smart, Greater time and staff commitment
sustainable,
inclusive and
governance
for growth
29
Next Generation Competitiveness Initiative:
Monitoring component structure
Strategy pillars and
Dimensions
Follow the SEE
2020 Strategy,
including its
pillars and
dimensions
Policy qualitative
and quantitative
indicators
Assess policies used to
implement the SEE 2020
Strategy, based on tools
developed by the OECD
• Regional Framework for
Investment (IRI)
• Product-Market Regulation,
• Labour Market Regulation,
• Services Trade Restrictiveness
Index,
• Government at a Glance,
• Education at a Glance,
• Innovation Strategy
Impact/Outcome
indicators
Track progress on
the achievement of
overall progress on
the achievement of
the Strategy,
including but not
limited to the
headline targets
Next Generation Competitiveness Initiative:
Monitoring component structure
Pillars
Integrated
Indicators
Dimensions
A. Free Trade Area
Policy
1. Free Flow of goods
Smart
Sustainable
Inclusive
Governance
for growth
2. Free Flow of Services
3. Free Flow of
Investment
3.1 Treatment and
protection of
investors
3.2 Coordination of
investment policies
4. Free Flow of Skilled
Labour
B. Competitive Economic
Environment
C. Integration into Global
Economy
Qualitative
National
treatment
restrictions
(OECD)
Transfer of
capital (OECD)
FDI incentives
(OECD)
Impact/
Outcome
Quantitative
Procedures to
start a foreign
business (#)
Time required
to start a
foreign
business
(days)
Time required
to lease public
land (days)
Source: World
Bank, Investing
Across borders
31
Intra-regional
trade in goods
(Headline
target)
FDI inflows to
the region
(Headline
target)
FDI per capita
Greenfield vs
Privatisation
FDI
Next Generation Competitiveness Initiative:
Monitoring component structure
Pillars
Integrated
Indicators
Dimensions
1. National treatment not contained in
primary or secondary legislation
on
Policy
Impact/
private FDI.
A. Free Trade Area
Outcome
1. Free Flow of goods
Smart
Sustainable
Inclusive
Governance
for growth
2. Free Flow of Services
3. Free Flow of
Investment
3.1 Treatment and
protection of
investors
3.2 Coordination of
investment policies
4. Free Flow of Skilled
Labour
B. Competitive Economic
Environment
C. Integration into Global
Economy
Qualitative
National
treatment
restrictions
(OECD)
Transfer of
capital (OECD)
FDI incentives
(OECD)
Quantitative
2. Government in process of
incorporating
“nationalIntra-regional
treatment” into
Procedures to
primary
and secondarytrade
legislation
on
start a foreign
in goods
private FDI.
business (#)
(Headline
3. National treatment target)
is incorporated in
Time
required
primary and secondary legislation with
to
startdefined
a
FDI inflows to
clearly
restrictions.
foreign
the region
4.
Level 3 plus government
reduces
business
(Headline
restrictions
by reciprocal
commitments
(days)
target)
made through bilateral, regional, or
multilateral agreements.
Time required
FDI per capita
to
lease4 public
5. Level
plus the government
land (days)reduces restrictions
Greenfield
unilaterally
to vs
national treatment onPrivatisation
the basis of
periodic
foreign
Source: reviews
World of its FDI
investment
policy.
Bank, Investing
Across borders
32
Next Generation Competitiveness Initiative:
Monitoring “Sustainable Growth/Competitiveness”
Dimensions
1. Competition
Policy
Policy
1 Public ownership
1.1 Scope of public enterprise sector
1.2 Gov't involvement in network sectors
1.3 Direct control over business enterprises
2 Public involvement in business
operations
2.1 Price controls
2.2 Use of command and control regulation
2. Business
Integrity
3. Regulatory and administrative opacity
3.1 Licenses and permits system
3.2 Communication and simplification of
rules and procedures
3. Infrastructure
4. Access to
finance
Impact/Outcome
• Herfindahl index for
main sectors
• % of state-owned
enterprises
• Volume of state aid
• Number of cases
handled by
Competition
Authority
• Number of
complaints about
dominant market
position
• Number of bailout
cases
5. Barriers to competition
5.1 Legal barriers
5.2 Antitrust exemptions
5. SME policy
Source: OECD, Product Market Regulation
6. Tax policy
7. Sectoral policy
1. Growth of
exports of goods
and services per
capita
2. WEF Global
Competitiveness
Index
Source: EC, Competition
authorities
33
Source: National
Statistical Offices,
EUROSTAT,
international
organisations
Next Generation Competitiveness Initiative:
Monitoring “Sustainable Growth/Competitiveness”
Dimensions
1. Competition
Policy
2. Business
Integrity
3. Infrastructure
4. Access to
finance
5. SME policy
6. Tax policy
7. Sectoral policy
Policy
1 Telecommunications
1.1 Transparency of the regulator
1.2 Independence of the regulator
from the executive
1.3 Regulation of roaming and
termination charges of mobile
operators
Impact/Outcome
• Fixed line, mobile and
• Time to obtain a
broadband penetration rate
new telephone line
• Active operators providing
for business
fixed-line telephone services • Average cost of a
peak fixed-line call
• Annual expenditure on road
to Germany
construction / maintenance • Telephone faults
2 Transport (Road, rail, air)
• Length of road network
• Average cost of a
2.1 Transparency of the decisiontonne of airfreight
making process of the regulatory body • Paved roads as a percentage
of total road length
to Frankfurt
2.2 Independence of the regulatory
• Annual expenditure on rail • Average cost of a
body from the executive
network construction /
passenger ticket to
2.3 Liberalisation of domestic aviation
upgrade / maintenance
Frankfurt
3 Energy
• Total length of rail
• Average time
3.1 Transparency of the decisionnetwork/country area
required to obtain
taking process of the regulatory body • Volume of road/railway/air
an electricity
3.2 Independence of the regulatory
traffic
connection for
body from the executive
• Number of necessary
business
3.3 Terms and conditions of third
documents to get an
• Average industrial
party access to the electricity
electricity connection for
electricity tariff
transmission grid
business
• Number of
• Number of electricity
brownouts
Source: OECD
providers
Source: OECD, SEETO,
34
34
Source: OECD, World Bank
national data
Next Generation Competitiveness Initiative:
Monitoring “Sustainable Growth/Competitiveness”
Dimensions
1. Competition
Policy
2. Business
Integrity
3. Infrastructure
4. Access to
finance
5. SME policy
Policy
1. Legal and regulatory
framework
1.1 Insolvency laws
1.2 Ranking the quantity of
information maintained by
credit information institutions
1.3 Development of Cadastre
1.4 Collateral and provisions
1.5 Registration system for
moveable assets
2. Loan guarantee schemes
3.1 Credit guarantee schemes
3.2 Mutual guarantee schemes
3.3 Export credit guarantee
schemes
3. Selected demand-side skills
4.1 Investment readiness
6. Tax policy
7. Sectoral policy
Source: OECD
Impact/Outcome
Debt financing
• Number of banks offering loans
• Documents required to approve a
loan
• Admin procedures required for
cadastre / Moveable assets
• Average level of collateral required
• Volume of credit guarantees
• Volume of collateral-free loans
• Volume of microfinance
Leasing/factoring
• Number of providers offering
leasing contracts
• Number of providers offering
factoring
Equity financing
• Volume and number of business
angel deals
• Volume and number of early-stage
VC
• Volume and number of IPOs
Source: OECD, EC, EBRD
1. Share of bank
loans in external
financing of new
fixed assets
2. Credit to
companies (% of
GDP)
3. Credit to
individuals (% of
GDP)
4. Average interest
rate to enterprises
(%)
5. Market
capitalisation (% of
GDP)
6. Number of startups financed
Source: OECD, EC,
WDI, IFS
Next Generation Competitiveness Initiative:
Monitoring “Sustainable Growth/Competitiveness”
Dimensions
1. Competition
Policy
2. Business
Integrity
3. Infrastructure
4. Access to
finance
5. SME policy
Policy
Impact/Outcome
Ten principles of SBA
1.Regulatory framework for SME policy
making
2. Operational environment for SMEs
3. Access to finance for SMEs
4. Skills and innovation
5. Internationalisation of SMEs
6. Support services for SMEs and public
procurement
7. Entrepreneurial learning
8. Bankruptcy and second chance for
SMEs
9. Standards and technical regulation
10. SMEs in green economy
1. Number of days to
complete the overall
registration process of a
business
2. Min. capital
requirements to start a
business
3. Costs connected with
registration
4. Fully functioning
incubators
5. Volume of public R&D
grants
6; Volume of SME vouchers
1. Growth of
enterprise
creation
2. Number and
share of HGEs of
all registered
companies
3. Survival rate of
companies
4. Job creation by
SMEs
Source: OECD SME Policy Index
Source: OECD, World Bank
Doing Business
Source: National
statistics offices
6. Tax policy
7. Sectoral policy
36
Next Generation Competitiveness Initiative:
Monitoring component output (illustrative only)
5
4
Score
3
2
1
0
ALB
BIH
BG
HRV
XK
MK
Investment Policy and Promotion
FDI policy
Transparency
Privatisation and PPP Policy
MD
MNE
RO
Promotion and Facilitation
37
SRB
Next Generation Competitiveness Initiative:
Monitoring component timeline
2014
2013
2015
SEE 2020 Monitoring
Consult regional
organisations
OECD work
on grids
Grids distributed
to regional
organisations
Feedback on
grids from
governments
Release of
“Regional
Competitiveness
Outlook”
1st analysis
Grids
received from
contact points
Review
meetings
with
regional
organisatio
ns/govern
ments,
experts and
private
sector
38
SEE
ministerial
Next Generation Competitiveness Initiative:
Monitoring component development process
June – September
Inputs
Consolidation
• SEE 2020 targets
• RCC
• European
Commission
• Regional
stakeholders
• Relevant OECD
Directorates
October –
December
Prioritisation
workshops with
regional
organisations
• Relevance
• Measurability
• Cost
JanuaryFebruary
March
April
Grids distributed
to contact points
from regional
organisations/
Feedback from
governments
distributed by
contact points
from regional
organisations
Assessment Implementation
grids finalised
starts
• Relevance
• Measurability
• Cost
39
Next Generation Competitiveness Initiative:
Implementation of monitoring component
Regional
organisations
Government
selfassessment
Private Sector
Independent
experts
40
Next Generation Competitiveness Initiative:
Implementation of monitoring component
BEFORE:
Contact point
in each country
NOW:
Contact point in
each regional
organisation
ALB
BIH
HRV
XK
MKD
MNE
SRB
MoFTER
Ministry of
Economy
Ministry of
Trade and
Industry
Ministry of
Economy
Ministry of
Economy
MERR
CEFTA
SEEIC
SEECEL
ERI SEE
Intergovernmental
WG on Social
Agenda 2020
SEEHN
Regional Research
& Innovation
Platform
e-SEE
TFCS
NALAS
RAI
METE
Next Generation Competitiveness Initiative:
Co-operation with regional organisations
• OECD will work with regional organisations per dimension(s)
• Joint meetings on dimensions to be foreseen
 Free trade area, Competitive economic environment,
Integration into global economy and Competitiveness
 Education/Competences, Skills and Inclusive Education, and
Employment
 Effective public services and Anti-Corruption
• OECD needs one contact point from each regional
organisation
Next Generation Competitiveness Initiative:
Tasks and responsibilities of contact points
Co-ordinating the tasks with all seven economies
1.
2.
3.
4.
5.
6.
7.
8.
Validating the assessment grids for the monitoring process
Distributing the grids to the contact points in the national governments
and explaining the modalities to each question
Collecting the answers to the grid questions from the countries
Sending filled-out grids to the OECD for assessment
Collecting quantitative data for the Impact/Outcome indicators from
National Statistical Offices, Central Banks and Chambers of Commerce of
the countries
Analysing data and trends for Annual report (with OECD guidance)
Communicating OECD requests/inquiries to the contact points in the
national administrations and vice versa
Organizing the meetings with country representatives (including private
sector consultation as needed)
Estimated workload: 60-80 working days per year
Thank you for your attention.
Alan Paic
Head of Programme
OECD Investment Compact for SEE
Milan Konopek
Policy Analyst
OECD Investment Compact for SEE
Organisation for Economic Co-operation and Development (OECD)
[email protected]
[email protected]
www.investmentcompact.org
44