Transcript OECD s work on setting FDI standards and definitions

OECD’s work on setting
FDI
standards and definitions
By: Ayse Bertrand
Investment Division, OECD
[email protected]
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OECD involvement in FDI statistics
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Part of the mission of the OECD Investment
Committee
– Setting international standards and definitions for
FDI statistics
– FDI data collection and dissemination
– Analysis of FDI trends and developments
– Assessing regularly compliance of OECD
members with international standards [IMF/OECD
SIMSDI]
– Developing FDI globalisation indicators
– Assistance to non-members (as required)
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OECD Sets international FDI standards
and definitions
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OECD Benchmark Definition of Foreign Direct
Investment
– Provides clear orientations to countries to develop
or to improve their FDI statistical systems
– Improves the basis for economic analysis,
particularly for international comparison
– Offers objective standards for measuring FDI
activity
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OECD Benchmark Definition
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Prepared under the auspices of the OECD
Investment Committee
Technical work conducted by the OECD experts of
the Workshop of International Investment Statistics –
WIIS (of the Investment Committee)
BMD first issued in 1983 and revised twice
BMD Fourth edition – forthcoming in 2008 (1st half)
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Revision of the
Benchmark Definition
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Purpose
Recommendations
The approach
Work method
Time table
Structure
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Revision of the Benchmark Definition
Purpose: How to better meet user requirements
– To review international statistical standards and
definition to measure FDI
– To bring them into line with the economic and
financial developments since the last revision in
1995.
– Dichotomy of FDI:
• Part of Balance of Payments statistics/ financial account
• FDI statistics – independent set of statistics (including
globalisation indicators)
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Revision of the Benchmark Definition
Recommendations
 BOP related
– Only a few changes – continuity of historical time series
– Useful clarifications of existing concepts and methods
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New challenges & methodologies [developmental work]
– Mergers and Acquisitions (as type of FDI)
• Defining M&As, Greenfield investment, extension of capital
• Developing methodology for M&As resulting from exchange of shares
– Developing meaningful presentations of FDI excluding transactions
through Special Purpose Entities (SPEs) and other capital in transit
– Developing methodology to identify ultimate investing/ultimate host
country
– Developing methodology to identify round-tripping of transactions
– Research agenda with other items
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Revision of the Benchmark Definition
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The approach
– 􀂾 Wide international co-operation
• IMF/OECD DITEG
• Timely co-ordination of outcomes, information, etc between IMF
BOPCONM and OECD WIIS
– 􀂾 Transparency of documents, discussions
• Issues papers
• Background documents
• Outcome papers
– 􀂾 Focus on user requirements
• OECD Investment Committee and its Secretariat
• UNCTAD and other international and national entities
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Revision of the Benchmark Definition
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Working method
Under the general supervision of WIIS
– 􀂾 OECD Benchmark Advisory Group (BAG)
• 􀂾 Drafting group of WIIS to assist the Secretariat
• 􀂾 Held 3 meetings (April and November 2005, April 2006)
• 􀂾 Expected to hold 2 more meetings (March and October 2007)
– 􀂾Project groups (focus on new recommendations)
•
•
•
•
SPEs
Ultimate investing/host economy
Mergers and acquisitions
Income
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Revision of the Benchmark Definition
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􀂾 Very tight calendar (extended by one year)
• Basic recommendations: 1st drafts to be approved by OECD
WIIS –end 2006
• New recommendations to be developed in 2006-2007
– SPEs
– UIC/UHC
– M&As
• All texts to be approved (including new recommendations) in
Oct 2006 by WIIS
• Approval by the OECD Investment Committee – End 2007
• Approval by the OECD Council – 2008 -1st half 2007
• Publication – 1st half 2008
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Revision of the Benchmark Definition
Contents
1)
Introduction
2)
Uses of FDI statistics
3)
Main concepts and definitions
4)
Scope of FDI
5)
Measuring FDI
6)
Special entities
7)
Country attribution and industry classification
8)
FDI and Globalisation
9)
Annexes
10) Bibliography
11) Glossary
12) Index
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Revision of the Benchmark Definition
Annexes
i.
List of methodological changes from BMD 3rd edition
ii.
Standard presentation of FDI statistics
iii.
List of borderline cases
iv.
Framework for direct investment relationship
v.
Valuation of unlisted equity
vi.
Reinvested earnings
vii.
SPEs
viii.
Collective investment instruments
ix.
M&As
x.
Ultimate host/investing country
xi.
Currency Unions
xii.
Reporting methods, data confidentiality, data transmission
xiii.
Research agenda
xiv.
OECD Council recommendation
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Thank you.
Ayse Bertrand
Manager, International Investment Statistics
Investment Division
Directorate for Financial and Enterprise Affairs
Tel: 33 1 45 24 91 24
Fax: 33 1 45 24 13 34
E-mail: [email protected]
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