Transcript South East Europe 2020 Towards a Regional Growth Strategy February 2012 How it all begun… • Emergence of multiple regional cooperation frameworks requiring coherence &

South East Europe 2020
Towards a Regional Growth Strategy
February 2012
How it all begun…
• Emergence of multiple regional cooperation
frameworks requiring coherence & coordination
• Need to anchor reform efforts into an overarching
growth and development agenda
• Provide RCC with a mandate to perform its role to its
fullest potential
…with kick-start by Europe 2020
Materialized as a response to Europe 2020, as the region was left
out of the main European growth framework:
•
•
•
Preparations for future membership
suggest that the Europe 2020 policy
goals and implementation methods
are pertinent to enlargement
countries
However, a strong need to adjust the
strategy to region’s needs, making it
more realistic and credible
Main objectives include boosting
competitiveness, productivity, growth
potential, social cohesion and
economic convergence.
?
Getting the mandate
“The [European] Commission will propose to
the Regional Cooperation Council that it sets
up platforms for dialogue and peer review in
other areas in line with Europe 2020
priorities”
Enlargement Strategy 2010-2011
SEE
2020
RCC to provide a “link between the national
and regional level and … for the efforts going
into Europe 2020 implementation in the
region to demonstrate a considerable level
of complementarity with the work being
done at the national level.”
Montenegrin C-i-O SEECP
Actively pursue “a regional recovery and
development strategy which should follow
the main parameters of EU 2020, based on
knowledge and innovation.”
June 2010 Sarajevo High Level Mtg
SEE Investment Committee – SEE2020 Catalyst
Transfer of SEEIC provided an opportunity to:
1. Get a clear mandate for SEE2020 Development
2. Engage national administrations
3. Secure resources
Integrated growth
deeper regional trade and investment
linkages and policies enhancing the
flow of goods, investment, services
and persons
Smart growth
commitment to compete on value
added, promoting knowledge and
innovation across the board
Inclusive growth
skills development, employment
creation and labour market
participation by all, including
vulnerable groups and minorities
Sustainable growth
Governance for growth
enhancing competitiveness, entrepreneurship and a commitment to
greener and more energy-efficient
development
improving the capacity of public
administrations to strengthen the rule
of law and reduce corruption so as to
create a business-friendly environment
Formulating SEE 2020
1.
IDENTIFY PRIORITIES
integrated, smart, sustainable, inclusive growth within good governance
framework
2.
DETERMINE APPROPRIATE POLICY AREAS FOR SETTING OBJECTIVES AND TARGETS
e.g. trade as an area that best captures integrated growth
3.
FORMULATE APPROPRIATE OBJECTIVES
e.g. increase intra-regional trade as an objective of integrated growth
4.
DETERMINE BASELINE DATA FOR OBJECTIVES
e.g. currently intra-regional trade (goods) amounts to EUR 12.5 billion
5.
ESTABLISH STRATEGIC INTENT (TARGET)
e.g. increase intra-regional trade by 240% by 2020
6.
PUT FORWARD INDICATION OF MEASURES/ACTIONS AND INDICATORS
e.g. removal of NTBs and greater facilitation of trade; fostering of regional
value chains to boost movement of goods/services accross borders etc.
Milestones
October 2012:
SEEIC approves
targets
November 2013:
SEE Ministers
endorse strategy
and governance
mechanism
July - Sep 2012:
SEE Task Force
meets to develop
targets
November 2011:
SEE Vision adopted
by the Ministers
November2012:
SEE Ministers
endorse targets
April 2012: SEEIC
sets-up a Task Force
to look into targets
Dec 12 – Nov 13:
Strategy & Action plan
development &
governance proposal
Milestones:
Vision, Mandate, Resources
October 2012:
November 2011:
SEE Vision adopted
by the Ministers
Done:
SEEIC approves
targets
1. Vision: Integrated,
smart,
July - Sep 2012:
sustainable and inclusive
SEE Task Force
meets
to develop
growth,
underpinned by
targets
good governance
2. Mandate for RCC to
engage with SEE
2020 and
November2012:
use SEEIC as the
SEEmain
Ministers
endorse targets
instrument (transfer)
3. Resources to initiate the
work
April 2012: SEEIC
sets-up a Task Force
to look into targets
November 2013:
SEE Ministers
endorse strategy
and governance
mechanism
Dec 12 – Nov 13:
Strategy & Action plan
development &
governance proposal
Milestones:
Refocusing and restructuring SEEIC
October 2012:
SEEIC approves
targets
July - Sep 2012:
SEE Task Force
meets to develop
targets
November 2011:
SEE Vision adopted
by the Ministers
April 2012: SEEIC
sets-up a Task Force
to look into targets
November 2013:
SEE Ministers
endorse strategy
and governance
mechanism
Done:
1. Positioned the SEEIC as
the main regional
Dec 12 – Nov 13:
Strategy
& Action plan
champion of SEE
2020
&
2. Reshaped the development
structure
of
November2012:
governance proposal
SEE Ministers
SEEIC to better reflect the
endorse targets
needs of the process
3. Initiated target-setting for
SEE 2020 and set up a
Task Force on SEE 2020
Milestones:
Target-setting
October 2012:
SEEIC approves
targets
July - Sep 2012:
SEE Task Force
meets to develop
targets
November 2011:
SEE Vision adopted
by the Ministers
April 2012: SEEIC
sets-up a Task Force
to look into targets
November 2013:
SEE Ministers
endorse strategy
and governance
mechanism
Done:
1. Two meetings held to (i)
identify appropriate policy
12 – Nov (ii)
13:
areas for settingDec
targets,
Strategy & Action plan
establish baseline
and (iii)&
development
November2012:
governance proposal
determine targets
SEE Ministers
2. 11
regional headline targets
endorse
targets
determined with
corresponding 77 national
targets
Milestones:
Target-setting and buy-in
Done:
1. 9 out of 11 proposals for
- Sep 2012:
targets endorsed, withJuly
SEE Task Force
further two (tertiary meets to develop
targets
education and enterprise
creation)
November
2011: currently under
SEEreview
Vision adopted
by the Ministers
2. Draft Ministerial statement
reviewed and endorsed
after amendments
April 2012: SEEIC
sets-up a Task Force
to look into targets
October 2012:
SEEIC approves
targets
November2012:
SEE Ministers
endorse targets
November 2013:
SEE Ministers
endorse strategy
and governance
mechanism
Dec 12 – Nov 13:
Strategy & Action plan
development &
governance proposal
Milestones:
Political commitments
Done:
1. Adoption of targets
2. Mandate for strategy July - Sep 2012:
SEE Task Force
development and
meets to develop
targets
monitoring and governance
November 2011:
SEE Vision adopted
by the Ministers
October 2012:
SEEIC approves
targets
November2012:
SEE Ministers
endorse targets
April 2012: SEEIC
sets-up a Task Force
to look into targets
November 2013:
SEE Ministers
endorse strategy
and governance
mechanism
Dec 12 – Nov 13:
Strategy & Action plan
development &
governance proposal
Milestones:
Targets set
Description
Overall strategic goals
1. Increase of GDP PPP per cap relative to the EU (% of EU 27 GDP PPP p/c avg)
2. Growth of Total Trade in Goods and Services (in EUR million)
3. Reduction of Trade Deficit /Improvement of Trade Balance
Integrated growth
4. Growth of intra-regional trade in goods (in million EUR)
5. Growth of Overall FDI Inflows (in current EUR million)
Smart Growth
6. Growth of GDP per Person Employed (in EUR)
Sustainable Growth
7. Growth of enterprise creation
8. Growth of Exports of Goods and Services per capita (in EUR)
Inclusive Growth
9. Growth of Overall Employment Rate (per cent of 15+)
10. Increase Population With Tertiary Education Within the Regional Workforce
Governance for Growth
11. Increase Government Effectiveness (as measured by WBI indicator)
2010
2020
38.4
45.9
89,884 212,520
-14.1
-11.6
12,507
3,334
42,120
7,527
18,371
24,462
30,107
1,844
36,100
4,221
40.2
45.2
1.7 mil. 2 million
2.33
2.80
Milestones:
Strategy and Action Plan Development
October 2012:
To Be Done:
SEEIC approves
1. Strategy and Action
Plan
targets
development
by Nov 2013
July - Sep 2012:
November 2013:
SEE Ministers
endorse strategy
and governance
mechanism
SEE Task Force
meets to develop
targets
November 2011:
SEE Vision adopted
by the Ministers
November2012:
SEE Ministers
endorse targets
April 2012: SEEIC
sets-up a Task Force
to look into targets
Dec 12 – Nov 13:
Strategy & Action plan
development &
governance proposal
SEE 2020 Development Process
A distributed approach:
1. Divest development of SEE 2020 to regional structures that:
– Are able to play a leading role within each pillar
– Are functionally aligned with SEE 2020
– Have capacity to work on development and can build capacity for
implementation
– Have, or are willing to put in place adequate governance mechanisms
2. Coordinate development of joint objectives, actions and
indicators at the regional level
3. Verify through national administrations (shaping governance)
4. Coordinate at RCC level
Proposal for de-centralized development
(Example: Integrated growth pillar)
RCC
Regional structure
National administration
(Distributes responsibility for
trade and investment policy)
Integrated growth
SEE 2020
Strategy and
Action Plan
CEFTA
(Trade)
SEEIC
(investment)
Advisor
2nd
(a)
tier objectives
(b) measures and actions
(c) indicators
(d) budgets
CEFTA Joint
Committee/SEEIC
Ministerial
Line Ministry
National
development
strategies
Envisioned implementation
• Establish strong links between national priorities
(national development strategies, Economic and
Fiscal Programmes, Pre-Accession Economic
Programmes, etc.) and regional targets
• Disaggregated national and regional targets and
objectives to provide clear frameworks for action
• Put forward a monitoring framework and a
governance mechanism
• Regional platforms provide progress review with
overall coordination and monitoring at RCC level
De-centralized dev’t & implementation
SEEIC
ERI
SEE
pillar:
integrated
growth
JHA
Strat
Parliam
ent
CEFTA
pillar:
governanc
e
SEECP
EDIF
e-SEE
pillar:
smart
growth
R&D
Strat
RCC
SEE
2020
pillar:
inclusive
growth
pillar:
sustainabl
e growth
RENA
SEETO
Social
Agenda
ECS
If done correctly, SEE 2020 provides…
• A clear framework with identified strategic targets,
indicators and measures to guide cooperation,
consistent with national priorities
• Governance framework for cooperation and
coordination on policy responses to issues that cross
national borders
• Framework for interaction with donors engaged in
regional interventions and coordination with national
IPA programmes
Integrated growth:
Targets and priority actions
1. INCREASE INTRA-REGIONAL TRADE IN GOODS BY MORE THAN 230%
2. INCREASE OVERALL FDI INFLOWS TO THE REGION BY AT LEAST 120%
a.
b.
c.
d.
e.
f.
Removing trade distortive non-tariff barriers and facilitating cross-border
movement of goods in a timely fashion;
Undertaking concerted efforts for the liberalisation of trade in services, under the
auspices of CEFTA;
Creating a regional strategy for investment promotion that builds on the work
that has already been conducted by the regional working groups under the
auspices of the Investment Compact and the SEEIC;
Enforcing laws and regulations to protect intellectual property;
Supporting the work of all CEFTA bodies and structures to fulfill their respective
mandates; and
Developing a single regional capital market.
Integrated growth:
Main stakeholders
Main regional platforms:
• SEE Investment Committee
• CEFTA
Main partners:
• OECD
• IFC
• Regional expert networks
National counterparts:
• Ministries and Agencies in
charge of trade and
investment
Pillars
Pillar targets
Pillar Dimensions
Integrated growth
iv. Increase intra-regional trade in goods by more than 230%
v. Increase overall FDI inflows to the region by at least 120%
Trade Liberalization
Trade Facilitation
Investment Climate
CEFTA
CEFTA
SEEIC
Other regional platforms
involved in the dimension
SEEIC
SEEIC
SEETO
CEFTA
External partners
OECD
OECD,
IFC
OECD,
IFC
Dimension
co-ordinator
RCC unit responsible
ESD
Monitoring system
National administration
participants
Ministry of economy
ESD (primary)
EI
RCC/OECD
ESD
Ministry of economy; Ministry of economy;
Customs Offices
IPAs
Integrated growth: Investment Dimension
• Investment Promotion
– Re-branding the image of SEE so as to leverage the region
globally and build a perception of an ideal business
location.
• Investment Policy
• For reforms/ initiatives in institutional, legal and regulatory
frameworks that create and improve an enabling
environment for investment
The Roadmap to Regional Investment
Promotion
Joint actions to improve
the image of the region,
low profile in the beginning
Joint promotion activities
Regional exhibitions, visits to
the region to see
the value chain
Pilots
Regional investment promotion
Agreement on investment
promotion > review and upgrade
Regional one-stop-shop
Checklist for FDI indicators
(OECD)
Example
„Scandinavian tourist board“
1 office covering more than
1 organisation
The Roadmap to Regional Investment
Promotion – ½ 2013 Milestones
who
what
12/2012 01/2013 02/2013 03/2013 04/2013 05/2013 06/2013
OECD Analysis
Draft analysis
SEEIC Development of Investment climate dimension
SEEIC Working Group with IPA´s (2nd half of Feb.)
Investment Committee parallel to CEFTA trade (Dep.
Min.) > discussion of draft
IPA Workshop (possibly)
Draft of dimension Investment climate
Investment Committee parallel to CEFTA trade (Dep.
Min.) > endorsement of draft
Key Success Factors
• Strategic view – importance of trade and investments in strengthening regional
cooperation/partnerships
• Parties in the context of their economic development, regional cooperation
and accession to the EU
• Donors in the context of the impact of trade on promoting economic
development in the Region
• Coordination – efficient coordination required:
• among and within respective Parties administrations
• between the Parties and the Secretariat to execute action
• between the Parties, the Secretariat and international partners to seek for
synergies and prevent overlapping of efforts
• Sustainability – ensuring sustainability of the process as one of the
prerequisites to success
Challenges
• Agreement to interlink and improve national policies with
regional goals and achieving regional goals in line with
national priorities
• Putting together and rolling out a programme for regional
investment promotion strategy, policies, and identifying
priority cooperation sectors for joint promotion
• Financial resources: investment promotion is an expensive
exercise
• Human capital resources
• Competition
Overcoming the Challenges: Need for
Regional Cooperation
• Focused and intensive investment promotion campaigns for SEE
Partners at national and supranational/regional levels
Cooperation
Competition
“COOPETITION”
Core partners: RCC/SEEIC, IPAs, Business and Donor Community, Int’l organizations, Subregional initiatives, Economic Diplomacy Network
Assets
•
•
•
•
Legal base – CEFTA Agreement
Commitment – SEE 2020
Platform – RCC Secretariat / SEEIC
Agreement and expertise – Western Balkans
administrations and regional partners
Thank you
Dragana Djurica
South East Europe Investment Committee
e: [email protected]
www.seeic.rcc.int