Transcript PSD AGNM October2010 - Regional Cooperation Council

Contributions of Regional Programmes to
National Competitiveness
Investment Compact for South East Europe
31 March 2011
November 2010
Structure of the Investment Compact and SEEIC
SEE Investment Committee
Co-chairs:
OECD Country (Austria) + SEE Country (Serbia) + OECD Secretariat (DAF/PSD)
OECD donor
countries
SEE country
economic
teams
International
Private sector
organisations
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
2
Three main regional activities
Investment Climate &
competitiveness
SME Policy
Promoting Free Trade under
CEFTA
Recent
publications
•Investment Reform Index •SME Policy Index
2010
2009
•Sector Specific Sources of
Competitiveness
• 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
Projects 20102013
•Regional
Competitiveness
Initiative
•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
3
•SME Policy
Monitoring and
Implementation
What does the Investment Compact / SEEIC do?
I. Policy Dialogue
I. Policy Dialogue
Regional
Working Groups
Regional Working
Groups
Investment
Promotion
• Improving
business
linkages
between
SMEs and
foreign
investors
Human
capital
• Internships
between
industry and
education
Regulatory
Reform
Tax Policy
Analysis
• Role of
parliaments in
economic
reform
• Tax treatment
of R&D
Innovation
• Policies to
support
absorption of
technology.
Sharing of best practices at regional level.
Mechanism for regional peer-based reviews.
Identified synergies for regional collaboration.
4
What does the Investment Compact / SEEIC do?
II. Policy assessment:
Investment Reform Index 2010
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
Score
1
2
3
4
Results
• A comprehensive assessment of SEE
investment climate released in March 2010
• 10 SEE economies were assessed using 8
policy dimensions and over 100 indicators
5
Example of policy assessment (from IRI 2010)
IRI – SEE average score
0
1
2
3
4
5
Investment Policy and
Promotion
•
•
Human capital
development
•
•
Trade policy and
facilitation
•
•
•
•
Access to Finance
Regulatory reform and
parliamentary processes
Main improvement points – Investment Policy and
Promotion
Land title registration and cadastre is slow
Permits for foreign workers are cumbersome in BiH
and FYROM
FDI Incentives on sub-national level need more clarity
FDI-related capital transfer barriers remain in AL, SRB
and BiH
One-stop shop for investors (IPAs to approve permits)
Weak aftercare in BiH, BG, MNE and RO
Legal frameworks for PPPs to be developed
Need to improve IP rights enforcement
Tax policy analysis
Score
Note: (1) Dimensions on SME policy, which was derived from the SME policy index and on infrastructure were not scored
What does the Investment Compact / SEEIC do?
III. Sectoral Policy Strategy:
Sector Specific Sources of Competitiveness
Results
Developed strategic policy
recommendations on improving:
• Access to finance in garment sector
• Regional investment promotion
activities in automotive sector
• Linkages between education and
industry in the information and
communication technology sector
7
What does the Investment Compact / SEEIC do?
IV. Assistance and training for implementation:
WB Regional Competitiveness Initiative
WITH THE FINANCIAL
Objectives
SUPPORT OF THE
EUROPEAN UNION
• Support long-term competitiveness of the Western Balkans.
• Provide capacity building support through pilot projects and horizontal working groups.
Focus Areas
• Human capital development – focus on skills gaps.
• Innovation – technology absorption by the private sector.
Timeline: 2010 - 2013
First four country projects in 2011
Voucher scheme
Establishment of a Competence Technology Centre (CTC)
Development of a policy framework for innovation
Co-operation projects researchers-business-government
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Contributions of effective regional programmes to
national competitiveness
1. Focus effect: Provide a platform and consensus on high impact
country project sthrough voluntary comparative assessment
2. Multiplier effect: Spread results and knowledge from successful
country projects to regional partners
3. Mirror effect: Motivate economies to introduce better policies by
comparing progress highlighting best practice examples
4. Awareness effect: Strengthen awareness and adoption of latest
international policy standards and instruments
5. Coordination effect: Avoid duplication of country initiatives and
get better return on investment from donor contributions
6. Image effect: Send strong signal to private sector of joint
government commitment to make markets more attractive
7. Regional issue effect: Address policies challenges that can only be
tackled through regional collaboration (eg; CEFTA NTBs)
Some lessons learned from regional programmes
• Need to complement horizontal policy approaches with a
focus on improving policies for competitiveness in specific
sectors with the highest potential for value added => next
phase of WB RCI (WB RCI II) will focus on highest potential
sectors
• Systematically involve business and civil society in the
development of better policy, including at the sector level =>
dedicated session with BAC and MEDEF at next SEEIC in Paris
on 4 May 2011
• Top level vision and political impetus is fundamental to ensure
effective change => High level Ministerial on 23/24 November
in Paris
Calendar of activities
4 May
SEE policy dialogue between industry and public sector
5 May
8th SEE IC at OECD headquarters in Paris, France.
17-18 May
Small Business Act (SBA) assessment launch in Istanbul
8-10 June
RCI working groups on human capital and innovation (Croatia)
Mid Oct
2nd RCI working group meetings (TBD)
22 to 23 Nov
CEFTA week 1-day event and CEFTA joint committee
meeting (at ministerial level) in Paris
24 Nov
SEE Ministerial on competitiveness and 2020 vision (Paris)
Anthony O’Sullivan
Head of Division
Private Sector Development
Organisation for Economic Co-operation and
Development (OECD)
[email protected]
www.investmentcompact.org