exchange autumn isuue 2011

Number 5 Autumn 2011

INSIDE THIS ISSUE:

Exchange interviews

H.E. Otabek Akbarov,

Ambassador of Uzbekistan to

Martin Davidson, CEO

British council

EBRD Examines Business

Exclusive interview with

Jean-Marc Peterschmitt

Managing Director

Central and South Eastern Europe

European Bank for Reconstruction and Development

the United Kingdom and Norway

Opportunities in South East

Europe

C O N T E N T S E x c h a n g e : The Magazine for International Business and Diplomacy Autumn 2011

Editorial Prosperity through synergies: the new

spirit of regionalization

6

South East Europe

Doing business in South East Europe: a summary of the World’s Bank doing

business in South East Europe 2011 report 10

EBRD examines business opportunities in

Malta: a stable investment destination 20

Britain A global stimulus package: the potential

economic returns of the British Council's international cultural activities 22

Asia

Uzbekistan: 20 years of political stability and economic growth 26

Middle East and North Africa Policy responses to the Arab Spring in

the Gulf 31

A trade agenda for the ‘Arab Spring’: Global integration and the dangers of

neoliberalism! 32

Foreign direct investment in Egypt

after the revolution: Prospects and policy recommendations 34

IBDE Events

Financial Markets: A Gateway to Balkans Prosperity

Project Finance considerations for infrastructure financing in South Eastern

Europe

The Culture Exchange The Culture Exchange 2011-12 London Arts

Season

36

38

40

Society 44

Sponsorship Opportunities

PUBLISHER:

International Business and Diplomatic Exchange

1 Northumberland Avenue London, WC2N 5BW T: +44(0)2071931485 E: [email protected] www.ibde.org

Registered in England as a non-profit company limited by guarantee registration number 7181393

International Standard Serial Number (ISSN) Exchange: ISSN 2045-3175

Editor: Rudi Guraziu

Associate Editors: Penelope Bridgers Jacques N. Couvas

Articles, comments and letters should be sent to: [email protected]

Permission to reprint or republish in any form must be sought from the editor: Email: [email protected]

Disclaimer:

The International Business and Diplomatic Exchange (IBDE) is an independent Organisation and does not express opinions of its own. The opinions expressed in this publication are, therefore, the responsibility of the authors. Copyright is normally owned by IBDE

Whilst every care has been taken in the preparation of Exchange, IBDE does not warrant the accuracy or completeness of the information in this publication and it reserves the right to alter specifications without notice. No recommendations are expressed or implied regarding the quality of services provided. The Publisher disclaims all liability for the accuracy of the information contained herein and will not be responsible for any damage or loss that may be sustained directly or indirectly by any individual, company or Organisation as a result of their reliance in whole or in part on any information contained in the publication.

© IBDE 2011

On the cover: Jean-Marc Peterschmitt sets out EBRD’s strategy and business opportunities in the South Eastern Europe.

Photograph: Besim Gerguri

His Excellency Mr. Otabek Akbarov, Ambassador of Uzbekistan to the UK and Norway discusses the economic success of his country during the 20 years of independence.

Alan Camilleri, Executive Chairman, Malta Enterprise sets out business opportunities in Malta.

Martin Davidson, British Council Chief Executive discusses the potential economic returns of the British Council's international cultural activities.

Advertising and sponsorship enquiries:

+ 44 (0) 20 7193 1485

or email: [email protected]

2 www.ibde.org

Western Balkans Investment Forum 2012 49

South East Europe 16

a d v e r t i s e Advertise in the only magazine dedicated to

International Business and Diplomacy

Who receives it? Exchange is sent to thousands of embassies worldwide including the London Diplomatic Corps as well as multinational businesses, investment agencies and universities/institutes.

Readership profile Ambassadors worldwide, ambassadors and other diplomats posted to London, members of the WTOs, staff from investment agencies and chambers of commerce, politicians, business executives, international business managers, academic researchers worldwide

What is in it? Exchange issues include topics covering the relationship between international business and diplomacy, International trade agreements their impact and implementation, analysis of various international financial/ economic institutions and other international organisations as well as research articles which contribute towards the understanding of the role of international business in areas such as conflict, crisis management, regional security and regional economic cooperation. In addition to our research and analysis papers we interview regularly senior diplomats and corporate executives to share their experiences and insights on business and diplomacy. Exchange also includes country reports ensuring that investment needs and opportunities in various regions are rigorously examined and promoted to the wider international business and diplomatic community.

When is it published? Exchange is published four times a year, in March, June, September and December.

Cost-effective As a not-for-profit organisation IBDE is able to offer our advertisers and sponsors extensive access to the International business and diplomatic market for very competitive rates.

For advertising rates please contact us on [email protected] www.ibde.org

s u b s c r i b e

Subscription is free to anyone with an

interest in international business and diplomacy

To subscribe please email or fax your name, address and affiliation: e-mail: [email protected] fax: + 44 (0) 20 3318 9199

Exchange: The Magazine for International Business and Diplomacy - published by IBDE - is the only magazine in the world dedicated to the fastest-growing community of diplomats, business professionals and academics interested in international business diplomacy, commercial diplomacy and international trade policies. Our mission is to provide our readers with easy access to the whole range of international political and economic issues, political risk, legislation and regulatory as well as trade policies in emerging markets with particular focus on providing useful links for the smaller unrepresented countries. Through Exchange we aim to support international businesses in identifying key investment opportunities and investment strategies within the wider economic and political context in the UK as well as countries represented in London.

Our free quarterly online magazine keeps our readers fully up-to-date with key international business and diplomatic developments, such as events, legislation, business opportunities, regulatory issues and political risk analysis that are likely to effect business investment strategies.

IBDE – enhancing global business and diplomatic partnership www.ibde.org

Rudi Guraziu is Founder and CEO of the

International Business and Diplomatic Ex-change (IBDE) and Editor of Exchange

magazine. Mr Guraziu has worked for a decade in the Balkans. Whilst in Kosovo he was one of the principals in the running of a large pharmaceutical business until the 1999 war. Since the Kosovo war, he has been actively engaged with many members of parliament, business leaders and

diplomats in the UK and the Balkans as a consultant on Southeast European Affairs. His particular expertise covers EU Foreign Policy as well as Western Balkans issues. For much of that time he has worked with different parliaments particularly in the relationship between legislative bodies and economic operators. Prior to establishing IBDE, he initiated the establishment of the Centre for Business and Parliamentary Dialogue (CBPD) and serves as its Founding Director. Mr Guraziu holds an MA in Inter-national Relations (with distinction) from Middlesex University - UK.

Jacques N. Couvas is Associate Editor of

Exchange Magazine, Adjunct Professor of Strategy, Globalization and Entrepreneur-ship at Koç University, Istanbul and Senior Lecturer of Management at Bilkent Uni-versity, Ankara. He has also been a visiting professor at Ozyegin University, Istanbul and the University of Santa Clara School of Law, Ca. He began his career as a

journalist, before serving for 30 years as CEO, executive officer and board director with multinational and global corporations in Europe, the U.S. and Asia. His teaching and research interests are in strategy, leadership, international negotiations, and EU constitutional law. He is President Emeritus of the European Mobile Messaging Association, a member of the European Corporate Governance Institute and of the academic CEMS Strategy Group.

Otabek Akbarov is Ambassador of the Re-

public of Uzbekistan to the United Kingdom of Great Britain and Northern Ireland, and the Kingdom of Norway. Previously, he helped establish his country’s embassy in Brussels and was part of the team that put together the Partnership and Co-operation Agreement between the EU and Uzbek-istan.

Jean-Marc Peterschmitt is a Managing

Director, Central and South Eastern Europe of the European Bank for Reconstruction and Development (EBRD). Mr Peterschmitt is a seasoned banker with extensive sector and country experience who joined the Bank in London HQ in 1992. He was made an Associate Banker in the Municipal team in 1994, promoted to Principal Banker when he joined the then Balkans country team in

1996. As Senior Banker, he took up the role of Head of Office, Bulgaria, in 1998, later rising to Director. Jean-Marc returned to HQ in 2001 as Director, Western Balkans, before joining the Financial Institutions business group in 2004, initially as Director for Bank Relationships and then as Director, EU and Ukraine, where he has worked since 2009. Prior to joining the EBRD he was at the Ministry of Agriculture and Rural Development in France.

Martin Davidson is the Chief Executive of

British Council. Mr Davidson commitment to international relationships has been a con-stant feature of his career, since as a young English graduate he went to Hong Kong as Administrative Officer, taking the high-level decisions on the running of a town of a million people. He joined the British Council as Assistant Representative in Beijing in 1984 when in those days it was illegal for a

Chinese national to speak to a foreigner. He has also held various posts in the British Council’s Geographical Directorate with responsibilities that have included South East Europe, in a particularly troubled time in the region’s history, the Middle East, East Asia and the Americas. He is a Governor of Goodenough College and Board Member of the Great Britain China Council.

Alan Camilleri is the Executive Chairman

of Malta Enterprise, the agency responsible for the promotion of foreign investment and industrial development in Malta. The Agency works closely with Malta Industrial Parks Ltd, responsible for the administration and maintenance of various industrial estates and the factories located within.

Kristian Coates Ulrichsen is Research

Fellow and Deputy Director Kuwait Pro-gramme on Development, Governance and Globalisation in the Gulf States Department of Government London School of Econom-ics and Political Science. His latest book, Insecure Gulf: The End of Certainty and the Transition to the Post-Oil Era (Hurst & Co.) was published in May 2011.

Nasos Mihalakas is an Assistant Professor

of International Trade Law, University of New York, Tirana. He has over ten years of experience with the U.S. government as a trade policy analyst, with extensive experi-ence in Transatlantic and U.S.-China trade relations. He has worked for both a Con-gressional Commission, advising Congress on the impact of trade with China and for the U.S. Department of Commerce,

investigating unfair trade practices. He holds a LLM in Law and Development, University College London, UK, a JD in International Law, University of Pittsburgh School of Law, USA and a B.A. in Economics and Finance, University of Illinois, Urbana, USA. Email: [email protected]

Guoyong Liang is an Economic Affairs

Officer at the Investment and Enterprise Division of United Nations Conference on Trade and Development (UNCTAD). He has been one of main authors of the annual World Investment Report since 2005. He holds a Ph.D. in international business from Rotterdam School of Management, Eras-mus University. He taught at Shanghai University of Finance and Economics during

1998-2001, and had managerial experience in China’s financial and ICT sectors. Dr. Liang has published more than 20 academic papers. He is the author of New Competition: Foreign Direct Investment and Industrial Development in China (published in 2004) and the co-author of a number of other books.

Photo by David Iliff

Contributors

www.ibde.org 5

E X C H A N G E: The Magazine for International Business and Diplomacy Editorial

6 www.ibde.org

or its Autumn issue, Exchange

Magazine heads South and East,

examining diplomatic develop-

ments and looking for new opportunities

for businesses and investors in the emerg-

ing economies of these regions.

World Bank’s recent report “Doing

Business in South East Europe 2011” has

caught the attention of our editorial staff

because it reveals an unprecedented phe-

nomenon: the transition of the Balkans

from the status of Balkanization, a term

that implies fragmentation of states into

smaller states as a consequence of conflict-

ing ethnic groups, to a spirit of regional-

ization and synergies towards creating a

better economic environment and serious

prospects for collective prosperity.

The shift seems, at first look, improb-

able, considering regional history and the

economic crisis that has been consuming

Europe’s competitiveness since 2008.

World Bank’s facts and figures are,

however, quite explicit about the direction

and trends that drive the smaller nations in

the region towards becoming a model of

determination to succeed in spite of all

odds. Certainly, the perseverance and

resolution of the European Commission

and the European Bank for Reconstruction

and Development (EBRD) have provided

the platform for stability and change of

focus from culture and religion-driven

disputes to consideration of common

challenges and opportunities among the

regional constituents. Greece and Turkey

have also played an important role in the

development of their smaller neighbours

through investment in these post-Com-

munist era start-up states. But the suc-

cessful implementation of such policies

and productive use of foreign direct invest-

ment (FDI) can, without doubt, be credited

to local political will and citizen maturity.

Today, it takes three working days and

three administrative procedures only to

register and run a business in Skopje, the

capital of the former Yugoslav republic

(FYR) of Macedonia. This is the third best

performance in this criterion among the

cities measured by the World Bank in 183

countries around the globe! Albania, Bos-

nia and Herzegovina, Macedonia, and

Serbia rank high in this survey, including

in contract enforcement, a criterion which

has in the past deterred foreign companies

interested to invest and start commercial

activities in the Balkans.

The attractiveness of the Western Bal-

kans to FDI is further explained and argued

by Jean-Marc Peterschmitt, Managing

Director, Central and South Eastern

Europe of EBRD. The Bank, formed in

1991 following the end of the Cold War,

has been helping former communist states

in Europe and Central Asia to rebuild

themselves.

In spite of risk of contagion from the

crises of the European economy and the

Euro, South Eastern European (SEE)

perspectives are rather optimistic, accord-

ing to Mr. Peterschmitt, mainly because of

the ongoing implementation of large

infrastructure projects in national and

regional motorways, airports, sea ports,

electricity grids, and telecommunications.

Rapid development of higher quality tour-

ism through hotel and real estate develop-

pment also provide growth drivers.

With a cumulative injection of cash of

more than EUR 8 billion, augmented an-

nually by another EUR 1.4 billion, the

Bank is one of the most important institu-

tional investors in the Western Balkans.

Governments in the region have begun

reforming their respective business legisla-

tions and fiscal policies to attract European

industrial groups and investment funds.

Region-wide networks and Public-Private

Partnerships (“PPP”) are also on the agen-

da, as they can lead to larger-scale projects.

“ We see huge potential for regional co-

operation in the energy sector for example,

where work has taken place on the estab-

lishment of a regional electricity market

and current developments are aiming at

implementing a regionally coordinated

procedure for electricity capacity allocate-

ion and congestion management”, says Mr.

Peterschmitt, who expects the Western

Balkans to become one of the most robust

and competitive economies in Europe, with

potentially high returns to those who will

invest early.

Moving further to the South, Malta

emerges as a little-known, but highly ef-

ficient, paradise for foreign investors.

Malta, a full member of the European

Union and its smallest state, with 400,000

inhabitants, has had a tradition of attracting

strong players from the maritime, telecom-

munications and leisure industries, as well

as wealthy individuals from around the

world, thanks to friendly fiscal packages

and its equitable legal system, which de-

rives from English law.

As the world changes, the country’s

activities also take new shape. In his article

to Exchange, Mr. Allan Camilleri, Execu-

tive Chairman of Malta Enterprise defines

the vision of his organization for Malta to

become a centre of excellence and a

regional hub in strategically important

industries that can tap to the island-state’s

resources and competences. Financial

services, ICT and its niche sectors, such as

call-centres and back office support, as

well as digital gaming and software

development, have been flourishing in the

past years with considerable growth rates,

according to Mr. Camilleri. Life science

technologies is another sector targeted by

the development authorities.

In spite of the morosity in Europe and

the impending economic crisis in neigh-

boring Italy, Malta attracted last year US$

1 billion in FDI, an impressive amount for

a small state as this. Investment from the

Arab Gulf states has been flowing regu-

larly in, and the transformation of Northern

African countries, particularly Libya, into

liberal economies is likely to benefit Malta

in the coming years. “Smart City Malta”, a

US$ 300 million investment by Tecom

Investments, Dubai is a case-in-point.

Money matters, but Culture is not at its

antipode, believes Mr. Martin Davidson,

Chief Executive of the British Council.

The Council’s work focuses on building

bridges between different cultures, which,

in a globalized world, lead to shaping

attitudes and spirit of collaboration and

shared interests among people and

companies. “The economic value of cul-

tural relations mustn’t be underestimated”,

warns Mr. Martin. “For example, our work

in the arts not only broadens cultural

horizons, but helps emerging and estab-

lished artists from the UK to find lucrative

new markets for their work overseas. Our

work supports the UK’s international

Higher Education sector which generates

F

Prosperity through synergies: the new spirit of regionalization

Editorial Exchange: Autumn 2011

www.ibde.org 7

an estimated £8 billion a year for the

economy, through the foreign students who

come here to study”, he says in his inter-

view to Exchange. A good example of soft

diplomacy and business at work.

Twenty years is, by all means, a drop in

the ocean of History, but Uzbekistan,

which celebrates the 20th anniversary of

breaking away from the former Soviet

Union, has succeeded in such a short time

to prove its independence and emanci-

pation in politics, economics and diplo-

macy. H.E. Mr. Otabek Akbarov, Ambas-

sador of the Republic of Uzbekistan to

London and Oslo, explains to Exchange

how his country has become a responsible

partner to the EU, the U.S. Russia, and to

its other neighbours. Drastic reforms in

many state governance areas have been

necessary, but it seems they have been

worthwhile: the country’s GDP grew

during the past two decades 3.5 times,

while per capita ratio increased 2.5 times

and real income of population 3.8 times,

according to official data. World-class

companies in gas, automotive and telecom-

munications industries were early movers

to the young state and now control large

projects and revenues. Commercial, cul-

tural and scientific relations with the UK

and Norway have also impacted positively

on the country’s development. “Cultural

diplomacy is one of the most effective

ways to promote friendship among na-

tions”, believes Ambassador Akbarov. We

certainly concur!

The effects of the Arab Spring are still

under academic review and examination.

Prof. Christian Coates Ulrichsen of the

London School of Economics evaluates the

impact of the rapid succession of the world

economic crisis of 2008-2009 and the

current instability in the Middle East and

Northern Africa (MENA) on the monar-

chies and their treasuries in the Gulf,

particularly Bahrain.

The political tsunami that swept long-

lasting regimes in MENA has not had

equal effects throughout the region. In his

analysis of Egypt, Mr. Guoyong Liang, of

UNCTAD expresses optimism about the

country’s long-term growth perspectives.

Following massive fleeing of capital at the

beginning of this year, Egypt has registered

negative FDI in 2011. Disenchantment of

foreign investors had already begun in the

past couple of years, as the Mubarak re-

gime was proving increasingly ineffective.

Mr. Liang proposes a long-term strategy

for Egypt’s recovery and points to Asia for

inspiration.

IBDE is a London-based, non-profit, membership organization committed to facilitating dialogue and resource-sharing between the business and diplomatic community.

Principle Objectives:

to provide assistance in increasing international trade and investment flows

to identify and promote new business opportunities

to promote responsible banking

to promote good governance and corporate social responsibility

to provide assistance in integrating developing countries into the global market

to undertake research to support our promotional activities

Additionally, through our investments forums, round-tables and the provision of platforms for panel discussions, workshops and networking opportunities, we provide our members with opportunities to:

network with other key decision-makers in an environment designed toencourage foreign direct investment

represent one’s own company and/or country of origin at internationalgatherings, share success stories and learn how to avoid potential pitfalls

identify key investment opportunities and investment strategies within thewider economic and political context in the UK as well as in the countriesrepresented in London

Premier membership benefits

The premier membership entitles members to:

nominate up to 20 representatives to the IBDE speaking opportunities at our exclusive events priority invitations to small, exclusive events, such as VIP Ambassadorial luncheons or dinners and other

meetings addressed by leading figures from the public and private sectors; special invitations to occasional receptions and special networking events priority invitations to IBDE meetings, seminars and investment forums one free delegate to all IBDE events and 50% discount for all other staff; free Interview with Senior Executives free A4 advert in our Exchange magazine access to the members' area of our website which includes speech transcripts and back issues of the

Exchange Magazine and other IBDE reports have priority access to the bespoke consultancy services that can be provided by IBDE experts listing as a Premier Corporate Member on our website, on the members' board at IBDE and in our Annual

Review and a slideshow advert on our website networking with the most senior and influential members of the worldwide diplomatic community

There is also further opportunity for all Premier Members to support IBDE by offering to sponsor research programmes and conferences and other IBDE events

Embassy / High Commission membership The membership is open to all embassies and high commissions around the world. The membership fee

entitles Embassy Members to:

nominate five representatives to the IBDE special invites at VIP Ambassadorial Luncheons receive invitations to occasional receptions and special networking events receive invitations to IBDE meetings, seminars and investment forums free Interview with the Head of Missions 50% discount on advertising in the Exchange Magazine access to the members' area of our website which includes speech transcripts and back issues of the

Exchange Magazine and other IBDE reports networking with the most senior corporate executives and other decision-makers

HALF PRICE OFFER

Join our membership scheme today and save 50% on the normal membership price.

To take advantage of this unique offer, please contact us: [email protected]

JOIN NOWFOR

50% 0FF

For more details on these and other types of membership types please contact us on +44 (0) 2071931485 [email protected] or visit our website www.ibde.org

mailto:[email protected]

E X C H A N G E: The Magazine for International Business and Diplomacy Doing Business Report

t is a matter of conjecture whether the

economies of South East Europe

constitute a unique region. Certainly, it

is a place which has historically been shap-

ed more by politics and the interests of

foreign powers than economic forces. Yet

it is economic forces, particularly those

associated with transition and integration,

and the deep reforms needed to move from

a planned to a market economy, which

have imposed themselves as the most

formative influences on the direction of the

region’s public policies. While the region

was once the inspiration for the term

“balkanization”— describing the disinter-

gration of a state into smaller antagonistic

parts — the recent past, global economic

crisis notwithstanding, speaks of increasing

cooperation, economic growth, and foreign

direct investment. Over the last decade, the

region has gradually become a more settled

and economically advanced area on the

immediate periphery of the European

Union (EU).

Despite perceptions, the region is quite

diverse and the changes since the 2008

Doing Business in South East Europe

report reflect that fact. Some of the coun-

tries have progressed further in transition

while others have a distance to go. Some

are on the cusp of the European Union

while others have yet to attain “candidate”

status. Croatia, in the final stages of acces-

sion discussions with the European Union,

is no longer included in this regional re-

port. In turn, Moldova, a newly emerged

reformer, has been added. Some economies

face ongoing political conundrums which

remain open challenges. Overall, however,

the political legitimacy which comes from

economic progress has been a lesson

learned by governments across the region.

There is an abiding drive for compet-

itiveness amongst and between all of them.

Competitive economies cannot survive as

islands of growth but must build inter-

dependency with their neighbours and

further afield. As a consequence, economic

forces are asserting their pre-eminence in

the region. Where there was once political

disintegration, markets are encouraging

investment and trading linkages across

state borders. There is no blueprint for how

to grow and prosper but one factor is

creating an investment climate conducive

to starting and running a business, where

complying with regulations brings more

benefits than costs. In an era of tight

budgets and high unemployment, reforms

making it easier to do business make more

sense than ever. They help create jobs and

boost growth without costing governments

much. This report shows that the econo-

mies of South East Europe have continued

to implement micro-economic reforms in

spite of challenges presented by the global

financial crisis. The report also shows that

the results of recent reforms can be seen at

the municipal level across the region.

Coupled with other factors — such as the

availability of a skilled workforce —

improving the business environment in the

region’s secondary cities will continue to

have a positive impact. Doing Business

studies business regulations from the

I

Doing business in South East Europe

A Summary of the World’s Bank ‘Doing Business in South East Europe 2011’ Report

Note: The ranking on each topic is based on the simple average of the percentile rankings on its component indicators. See Data notes for details. *City not benchmarked in Doing Business in South East Europe 2008 report.

Source: Doing Business database.

10 www.ibde.org

Doing Business Report Exchange: Autumn 2011

perspective of a small to medium-size

domestic firm. Capital cities represent the

economies of South East Europe in the

annual Doing Business report, which

compares regulatory practices in 183

economies around the world. Yet, within

each economy, entrepreneurs face local

regulations and practices that vary from

city to city. Doing Business in South East

Europe 2008 was the first report to go

beyond the capital cities for 7 economies in

the region to capture these differences in

15 other cities from Albania, Bosnia and

Herzegovina, Croatia, Kosovo, FYR

Macedonia, Montenegro, and Serbia. This

report updates the information presented in

2008 for 6 economies (all but Croatia) and

tracks their progress in implementation of

business reforms. It also expands the

analysis to 1 more country (Moldova) and

4 new cities: Balti (Moldova), Chisinau

(Moldova), Durres (Albania), and Tetovo

(FYR Macedonia). The results of this new

22-city, 7-economy comparison for 4 Do-

ing Business topics are presented here

(table 1.1).

Across the region, it is easiest to start a

business in Skopje (FYR Macedonia), deal

with construction permits in Niksic (Mon-

tenegro), register property in Balti and

Chisinau (Moldova), and enforce a

contract in Zrenjanin (Serbia). It is most

difficult to start a business in Pristina (Ko-

sovo), register property in Mostar (Bosnia

and Herzegovina), and enforce a contract

in Prizren (Kosovo). Dealing with con-

struction permits is most burdensome in

Belgrade (Serbia), while in Tirana (Al-

bania) no permit has been issued since

2009. Two observations stand out. First, no

single city does well in all 4 areas. For

example, Chisinau (Moldova) ranks at or

near the top on the ease of registering

property and enforcing contracts but lags

behind on the 2 other topics. And while S-

kopje (FYR Macedonia) is a top performer

on the ease of starting a business and

dealing with construction permits, it can

look to Bitola (FYR Macedonia) or to

Moldova’s cities to improve its perfor-

mance on property registration. Second,

there is a rich variation in performance by

indicator even among cities within the

same economy—with the exception of

starting a business, where all 3 Mace-

donian cities take the lead. For example,

within Montenegro, Podgorica and Pljevlja

could look to Niksic to learn to deal with

construction permits more efficiently. In

addition, Zrenjanin could provide a

positive example to other Serbian cities in

the area of contract enforcement. When

comparing cities’ 2011 performance with

the results from 2008, some trends emerge.

First, consistent performers stay at the top.

For example, Bitola (FYR Macedonia)

maintained its position among the best

performers in most of the areas measured.

Other cities, like Krusevac (Serbia), drop-

ped relative to their peers. Some ranking

changes can be attributed to the addition of

4 new cities, some of which have compet-

itive regulatory frameworks. For example,

Balti (Moldova) ranks at the top on the

ease of property registration. Tetovo (FYR

Macedonia) is one of the most efficient

cities for enforcing a contract. On the other

hand, the cities that improved their busi-

ness regulations the most during the past 3

years—such as Skopje (FYR Macedonia)

and Banja Luka (Bosnia and Herzego-

vina)—surpassed their peers.

South East Europe setting a

strong pace of reform

Much has changed in recent years. The

region has been very active in improving

business regulations, often in response to

circumstances—such as the prospect of

joining the EU or facing the global

financial crisis. Some of the regions’

economies, represented by their respective

capital cities, have been recognized as top

10 Doing Business reformers over the past

5 years: FYR Macedonia in 2006/2007,

Albania in 2007/2008, and (again) FYR

Macedonia as well as Moldova in 2008/

2009. Most notably, FYR Macedonia has

implemented 17 Doing Business reforms.

In the most recent Doing Business in 2011

report, FYR Macedonia ranks 38th out of

183 economies—an improvement of 37

positions over 5 years (figure 1.1). Doing

Business in South East Europe 2008 identi-

fied good practices, pointed out bottle-

necks, and provided recommendations for

business reforms beyond the region’s

capital cities. Three years later, this report

tracks progress over time. The results are

impressive. All 19 cities measured for the

second time show improvements in at least

1 of the 4 areas measured (table 1.2). Most

cities benefited from the roll-out of nation-

wide business reforms summarized below

— although implementation results on the

ground vary. Within the region’s eco-

nomies, 2 cities stand out: Skopje (FYR

Macedonia) and Banja Luka (Bosnia and

Herzegovina) improved the most since

2008. Business reforms were implemented

in all 4 areas measured, resulting in signif-

icant benefits in terms of time and cost

savings for entrepreneurs.

The one-stop shop in Skopje (FYR

Macedonia) decreased the time to start a

business from 12 days in 2008 to just 3

days now by eliminating 5 procedures. The

one-stop shop offers entrepreneurs a range

of services—including registering a new

business with tax and statistical authorities,

obtaining a trading license, publishing an

incorporation notice, and registering em-

ployees for health and pension insurance.1

Meanwhile, FYR Macedonia’s new Law

on Construction shifted responsibility for

building supervision and review from

public enforcement agencies to licensed

professionals. As a result, the time to deal

with construction permits in Skopje

dropped by more than 2 months while 6

procedures were eliminated. Furthermore,

after the cadastre staff was increased in

Skopje, the time needed to register a prop-

erty title fell by over 1 month—from 98

days in 2008 to just 58 days in 2011.

Finally, the commercial court in Skopje,

equipped with an electronic case manage-

ment system, became operational in 2008,

facilitating contract enforcement in com-

mercial matters.

www.ibde.org 11


In Banja Luka (Bosnia and Herzegovina), a

utilization permit is no longer necessary

for all businesses and a specialized

commercial court took over business

registration in 2010. As a result, the time to

start a business decreased by more than

one month. Meanwhile, Republika Sr-

pska’s 2010 Law on Construction and

Urban Planning allowed private companies

to prepare certain construction documen-

tation, rendering the process of obtaining

urban planning consent more efficient.

Moreover, more than 80% of cadastre and

90% of land registry records are now

available in digital form. As a result, the

total time to deal with construction permits

decreased from 1 year in 2008 to 8 months

today. At the same time, the time to

register property dropped by 3 months

because 4 procedures—including the

requirement for signatory authorization,

tax clearance, and the on-site evaluation of

property—were abolished. Finally, the

Law on Changes of the Law on Courts,

enacted in May 2010, gave a specialized

court in Banja Luka jurisdiction over

commercial claims, cutting the time requir-

ed to file a claim before the court from 6

months in 2008 to 46 days in 2011. At the

same time, the time to enforce the judicial

decision decreased by more than 200 days.

All 19 cities measured for the second time

made it easier to start a business. The most

popular start-up reform since 2008 was the

establishment or improvement of one-stop

shops—as seen in 10 cities. For example,

in Belgrade (Serbia), the registration with

various agencies has been consolidated

under one roof. Obtaining a business

registration certificate, tax identification

number, pension fund certificate, and

health fund certificate are now all done

with a single visit to the Business Registers

Agency (SBRA). Meanwhile, the other

Serbian cities measured by this report are

still working on the full implementation of

their one-stop shops—specifically, pension

fund and health fund registrations still have

to be obtained separately. Nevertheless, the

time to start a business in all Serbian cities

has fallen significantly—most notably in

Zrenjanin, where the time was cut from 37

days in 2008 to 17 days in 2011. In

Chisinau and Balti (Moldova), unifying

business registration with other procedures

is still underway. Nevertheless, positive

steps have been taken to reduce the overall

start-up time—including setting statutory

time limits and expedited options for

business registration. As a result, the time

to obtain a registration certificate was

reduced from 15 days in 2008 to just 1 day

now. Other popular start-up reforms were

reductions in local licensing requirements

and fees. For example, Albanian cities

eliminated the requirement to register with

the local chambers of commerce. Cities in

Montenegro did away with the municipal

business license. Both Pristina and Prizren

in Kosovo cut their municipal permit fees

in half—from EUR 1,000 to EUR 525 and

to EUR 400, respectively.

In the construction permits area, 9 out

of the 19 cities measured in both 2008 and

2011 have benefited from reforms such as

the digitization of cadastre records, en-

actment of new construction laws, and

streamlined inspections. For example,

Montenegro introduced risk based con-

struction approvals, where low risk, small

scale projects are reviewed and approved

by municipalities rather than the central

government. In Serbia, the 2009 Planning

and Construction Law simplified pro-

cedures for the issuance of construction

permits and made them transferable

between investors during construction. The

impact of the new law varies across cities.

In Vranje, the building permit can now be

obtained in 6 months—3 months faster

than in 2008. On the other hand, in

Belgrade, the same process takes almost a

year—5 months longer than in 2008. The

greatest challenge in the implementation of

this law is the application of provisions

regarding the conversion of “rights of use”

to ownership rights. Meanwhile, in

Albania, the parliament adopted the Law

on Territorial Planning in 2009.

Once implemented, this new law is

expected to professionalize the structure of

the Territorial Adjustment Council (TAC)

— the authority in charge of issuing

building permits in Tirana. However, as of

January 2011, no construction permit had

been issued here since 2009, mainly

because rivalling political parties repres-

ented in the council make consensus

decision making unattainable. The new

Law for Authorizing the Execution of

Construction Works, adopted by the

Moldovan parliament in July 2010, sets

statutory time limits for project approvals

and consolidates project clearances. The

subsequent implementation process is

expected to make dealing with construction

permits more efficient. Property registra-

tion reforms resulted in time and cost

savings for entrepreneurs in 12 out of the

19 cities measured in both 2008 and 2011.

Governments across the region are digitiz-

ing land books and making land registries

more efficient through legislative and

administrative reforms. As a result, the

average time to register property across

cities in South East Europe decreased by

more than a month since 2008. For

example, in Sarajevo (Bosnia and

Herzegovina), where all land registry and

12 www.ibde.org


cadastre books are now available in digital

format, the time to register property is just

a tenth of what it used to be. Specifically, it

fell from 331 days in 2008 to just 33 days

in 2011. In Mostar (Bosnia and Herze-

govina), where 95% of cadastre records are

now in digital format, the time to register a

property fell by 1 month—from 145 days

in 2008 to 117 days in 2011. Meanwhile,

Moldova and FYR Macedonia are in the

process of digitizing the land registry

records and cadastre maps, respectively.

Other business reform efforts undertaken

by governments in the past three years

include introducing statutory time limits,

eliminating pre-sale certificates and

clearances, and cutting fees. For example,

Moldova no longer requires the submission

of a cadastral sketch for properties already

registered with the cadastre—decreasing

the total time to register property from 48

days in 2008 to 5 days in 2011. In Albania,

a newly introduced statutory time limit

shortened the delay to register with the

Immovable Property Registration Office

by 9 days in Tirana and by 12 days in

Vlora over the same period. In FYR

Macedonia, the information on land

encumbrances was transferred from first

instance courts to the cadastre, so now both

the title deed and non-encumbrance cer-

tificate can be obtained from the same

institution. Similar efforts are underway in

Serbia. Along with digitization of cadastre

maps, these reform efforts have cut the

time to register property by 30 days in

Zrenjanin, 25 days in Vranje, 20 days in

Belgrade, and 17 days in Uzice. Enforcing

a contract became faster, cheaper, and/or

less cumbersome in 8 out of the 19 cities

measured in both 2008 and 2011. Courts in

these cities implemented administrative or

legal reforms to reduce the time or cost to

resolve a commercial dispute. In Vranje

(Serbia), manually-kept court records and

paper files were replaced by electronic

files that can be accessed online. More-

over, a computerized system randomly

assigns court cases to judges, thereby

eliminating opportunities for neglect or

corruption. As a result, the judgment pe-

riod in Vranje fell from 495 days in 2008

to 135 days in 2011. In Albania, a

presidential decree added to the numbers

of judges in courts. With more staff at

work, filing and judgment times fell by 40

or more days in Shkodra and Vlora. Courts

here now issue a ruling in a little over 4

months. Moreover, bailiff tariffs were

reduced from 7% of claim value to 2%.

Meanwhile, FYR Macedonia made

enforcing contracts easier by setting

deadlines for the payment of court fees,

adjusting monetary thresholds for assign-

ing case jurisdiction, and introducing a

small claims tribunal.

Comparing business regulations across 22 cities in South East Europe starting a business

Skopje (FYR Macedonia) is the world’s

5th top performer in this area. All an

entrepreneur needs to do to set up a

business here is spend 3 days and a little

over US$ 100. In cities like Skopje, where

one-stop shops have been set up and are

fully operational, starting a business can be

done quickly and efficiently. However, the

process is considerably slower in cities

where the entrepreneur needs to register

separately for tax, social contributions,

health insurance, and municipal permits.

This is the case in Pristina (Kosovo),

where it takes almost 2 months to start a

business. In Mostar (Bosnia and Herze-

govina), where the courts are in charge of

business registration and where 8 post-

incorporation requirements are necessary,

it can take as long as 50 days to set up a

business. The cost differences within the

region are also significant. The cost to

open a business varies from 1.5% of

income per capita in Niksic and Plevlja

(Montenegro) — similar to Finland — to

31.4% in Tirana (Albania) — which is 5

times more than the EU average. Varia-

tions stem from different fees levied by the

municipal governments. Some, such as

Pristina and Prizren (Kosovo), charge EUR

525 and EUR 400, respectively, just for the

municipal permit. In 12 out of the 22 cities

measured, entrepreneurs are also required

to set aside a minimum amount of capital

before they start operating. FYR Mace-

donia is the only economy to have

abolished the minimum capital require-

ment all together, while Albania and

Montenegro charge only nominal amounts

(equivalent to US$ 1).

Dealing with construction permits

Dealing with construction permits can be

difficult and expensive in South East

Europe. On average, a construction com-

pany would spend 223 days and more than

1,100% of the income per capita to comply

with all requirements to build a warehouse.

Compare this to the EU, where a con-

struction company spends one month less

and only 77% of income per capita. While

the overall policy setting authority lies

with the national governments, implement-

tation of regulations at the local level

varies significantly. Local governments

have the authority to administer several

procedures and levy the associated taxes

and fees. The number of procedures to deal

with construction permits varies from 15 in

Skopje (FYR Macedonia) and Pljevlja

(Montenegro) to 30 in Chisinau (Mol-

dova). In Chisinau, an entrepreneur has to

go through no less than 18 pre-construction

requirements—such as location clearances

and technical evaluations. As also ob-

served in the 2008 report, dealing with

construction permits is fastest in Bitola

(FYR Macedonia)—just 3 months. It is

slowest in Mostar (Bosnia and

Herzegovina)—a year and a half. The cost

varies from 110% of income per capita

(US$ 1,752) in Balti (Moldova) to a

prohibitive 2,132% of income per capita

(US$ 139,650) in Podgorica (Montenegro).

In most economies, the largest portion of

the overall cost is spent on building permit

fees and associated costs. In the Serbian

cities, obtaining a building permit con-

stitutes, on average, 76% of the overall

cost (the equivalent of US$ 83,278). The

same permit costs significantly less in Balti

(Moldova), where it constitutes 28% of the

overall cost (the equivalent of US$ 439). In

Podgorica (Montenegro), investors must

pay an urban development fee, which

accounts for almost three quarters of the

overall cost (the equivalent of US$

100,221).

Registering property

Across the 22 cities, an entrepreneur would

have to go, on average, through 6

procedures, wait 48 days, and pay 2.85%

of the property value to transfer a property

title. Within the region, the time, cost, and

requirements vary significantly. Register-

ing property is easiest in Balti and

Chisinau (Moldova), where it takes 5

procedures, 5 days and 0.9% of the

property value to transfer a title. By

contrast, the same process takes 8

procedures in Pristina (Kosovo) and almost

4 months in Mostar (Bosnia and Herze-

govina). Differences appear mainly during

the pre-registration phase. For example, in

Mostar and Sarajevo (Bosnia and Herze-

govina), both parties have to obtain a court

extract authorizing the signatory to act on

behalf of the company. In Pristina (Ko-

sovo), in addition to the title deed, parties

have to obtain and submit certified copies

of their companies’ business registrations

and letters from the tax authority certifying

that all property taxes have been paid

before the lawyer can draft the sale and

purchase agreement. Variations in time

www.ibde.org 13


among cities stem mainly from the

efficiency of the land registry in registering

the new owner of the property. This ranges

from 1 day in the Moldovan cities, if using

the expedited option, to 85 days in

Belgrade (Serbia). The amount of property

transfer taxes entrepreneurs have to pay

varies greatly among the 22 cities

measured—from a fixed fee of EUR 150

(US$ 220) in Pristina (Kosovo) to 5% of

the property value in Mostar and Sarajevo

(Bosnia and Herzegovina).

Enforcing contracts

The most efficient court to resolve a

commercial dispute in the region is in

Zrenjanin (Serbia). At just 10 months from

filing through enforcement, the process is

as fast as in the United States. In Zre-

njanin, information technology is used to

assist judges with case registration and

court management. Entrepreneurs can also

choose to go through an alternative dispute

resolution (ADR) system, which has

lowered the number of pending cases in the

commercial courts across Serbia. Mean-

while, in Mostar (Bosnia and Herze-

govina), an entrepreneur has to wait more

than 4 years to enforce a contract in

court—similar to Kabul (Afghanistan), one

of the slowest courts in the world. Delays

are due to case backlog and an insufficient

number of judges. As for expenses, the

average litigation in South East Europe

costs 32% of the claim value—one third

more expensive than the EU average.

Across the region, most litigation costs are

regulated by law and fee schedules. The

cost of enforcing a contract ranges from

21% of the value of the claim in Chisinau

(Moldova)—similar to Australia—to 61%

in Pristina and Prizren (Kosovo).

Learning from each other

While cooperation and the sharing of

reform experiences may not have been a

priority for the region’s economies a

decade ago, now it is the norm. Undoubt-

edly, the initial driver was the prospect of

accession to the EU. While this is still the

case, market realities are increasingly

bringing cooperation to new levels. For

example, as data was being collected for

this study in late 2010, the railway

companies of Croatia, Slovenia, and Serbia

formed a new joint-stock company to

service the European Corridor 10 cargo

route to Istanbul which, following the

opening of the Bosphorus tunnel, will link

Europe across Asia to China. Opportunities

to strengthen the position of national eco-

nomies by improved regional competi-

tiveness lie in many other sectors as well.

This type of economic cooperation may

not attract the same level of media interest

as the events of the 1990s but it bodes well

for a more prosperous and stable future in

South East Europe. An improving business

environment is central to this perspective.

Benchmarking exercises like Doing

Business inspire governments to reform

commercial regulations. They point out

potential challenges and identify where

policy makers can look for good practices.

Comparisons between cities within a single

economy or region are even stronger

drivers, as governments have a hard time

explaining why doing business in their city

may be more burdensome than in neigh-

boring locations. The good news is that

sharing a similar legal framework

facilitates the implementation of existing

good practices within a region. National

governments can also use Doing Business

data to monitor how changes in national

regulations are implemented by local

authorities. In a world where locations

compete against each other to attract

investment, subnational Doing Business

data allow local governments to review the

conditions entrepreneurs face in their cities

from a comparative perspective. Sub-

national data are now available for more

than 300 cities in 38 economies around the

world. Reform-minded governments can

use Doing Business indicators to motivate

and sustain business reform efforts. There

is no need to reinvent the wheel: it is

sufficient to start by introducing business

reforms successfully implemented in other

places. In fact, cities in South East Europe

have a lot to gain from adopting the best

regulations and practices that are working

elsewhere in the region. A hypothetical

city adopting all the best practices identi-

fied in this report would rank 6th among

183 economies globally—similar to Den-

mark or Canada (table 1.3). If the region’s

best practices were adopted, starting a

business would take only 3 days, as it does

in Skopje (FYR Macedonia) and Sweden.

The region’s best practices would mean

that transferring a property title would

require just 5 procedures over 5 days, as

seen in Moldova and Australia. Mean-

while, the region’s best practices for

dealing with construction permits would

require only 96 days—as seen in Bitola

(FYR Macedonia) and the United King-

dom. Finally, resolving a commercial

dispute in this hypothetical “best practice”

14 www.ibde.org


city in South East Europe would cost the

same as the EU average, while its duration

would be 100 days faster than it is in

Germany. Payoffs from business reforms

can be large. Saving time and money are

often the immediate benefits for firms. For

example, in Georgia, a 2009 survey found

that its new start-up service centre helped

businesses save an average of 3.25% of

profits—and this is just for registration

services. For all businesses served, the

direct and indirect savings amounted to

US$ 7.2 million.2 In Mexico, local one

stop shops (SARE) cut the time to start a

business from 58 to 13 days. A recent

study reports the payoffs: the number of

registered Mexican businesses rose by 5%,

employment increased by 2.8%, and prices

fell by nearly 1% because of the com-

petition from new entrants. 3 Consistent

reformers follow a long-term agenda and

continually push forward. The top-ranked

economy on the ease of doing business,

Singapore, introduces business reforms

every year. Cumulative business reforms

across a range of topics produce the best

results. Cooperation across different parts

of the bureaucracy, at both local and

national level, is necessary for wide-

ranging reforms. Political will and vision

coming from a reform champion—whether

the prime minister, minister, or mayor—is

central to success. Moreover, consistent

reformers are inclusive—involving all

relevant actors and institutionalizing the

reform effort. They also stay focused by

setting specific goals and regularly moni-

toring progress.

1. The one-stop shop project in FYR Macedonia is

going through a second stage that aims to unify

business registration and employee registration for

social contributions. The second phase is already being

implemented through a pilot project in Skopje and is

expected to cover the entire country by the end of 2011.

2. World Bank 2010. Doing Business 2011: Making a

Difference for Entrepreneurs. Washington, D.C: World

Bank Group.

3. Bruhn, Miriam. 2008. “License to Sell: The Effect of

Business Registration Reform on Entrepreneurial

Activity in Mexico.” Policy Research Working Paper

4538. Washington, D.C.: World Bank

www.ibde.org 15

E X C H A N G E: The Magazine for International Business and Diplomacy Interview

Exchange: South Eastern Europe (SEE) is

steadily transforming itself from a state-

controlled economy into an emerging

market with strong growth potential. But,

as was the case with many other regions

across the globe, the Western Balkans was

also hit by the financial crisis, although the

impact wasn’t as bad as many feared. This

resilience is largely attributed to the

considered reaction of the region itself.

According to your Bank’s (EBRD) Tran-

sition Report 2010, the recovery in most

SEE countries is progressing slowly, with

growth projections in most countries

between 1 and 3 per cent. However, the

expansion of the recent debt crisis from

Greece to Italy, Europe’s fourth-largest

economy, could potentially stall the re-

gion’s recovery. To what extent could this

debt crisis affect the recovery in SEE in

general, and the Western Balkans in

particular? Did the financial crisis have an

impact on the banking sector in SEE?

J-M.P. We expect positive growth rates

for all SEE countries in 2011, between 1.1

and 3.3 per cent, mostly in light of a strong

performance in the external sector.

However, it is important to emphasise up

front that these forecasts are subject to a lot

of uncertainty, with some clear downside

risks. The EBRD’s Office of Chief Eco-

nomist will issue revised forecasts for 2011

and 2012 in mid-October. So far the

feared spill over effects have been largely

contained. However, as the debt crisis con-

tinues to unfold and economic performance

of the Euro zone weakens, negative con-

tagion effects are likely. The SEE region

enjoys close links to the EU, mostly in the

form of trade. Indeed, investments and

remittances, but also through financial in-

termediation, as many banks in the region

are part of larger European groups.

Concerning trade, the EU remains the

main trading partner of the SEE, with an

average of above 60 per cent of exports

from the region going to the EU internal

market. In particular Albania is heavily

dependent on trading with neighbouring

Greece and Italy, whilst much of the

remaining SEE countries are mostly depen-

dent on trade with the core Euro zone

members.

EBRD examines business opportunities

Exclusive interview with Jean-Marc Peterschmitt, Managing Director, Central and

South Eastern Europe, European Bank for Reconstruction and Development

Photo by Besim Gerguri

16 www.ibde.org

in South East Europe

Interview Exchange: Autumn 2011

Despite having remained relatively

constant throughout the global economic

crisis, flows of remittances – a vital chan-

nel for income in some countries – may

also be negatively effected as unemploy-

ment in the EU rises and migrant workers

are forced to return home. This in turn,

might weaken the already only slowly

resuming domestic demand in many SEE

countries.

On the investment front, the region has

seen a sharp drop in foreign direct

investment during the global financial and

economic crisis, and FDI continues to

deteriorate in most countries. This is con-

cerning. It means, we at the EBRD, are

deploying even more efforts towards local

enterprises.

Finally, growth in the banking sector

has remained subdued as banks are adjust-

ing their risk appetite and consolidating

their balance sheets. Subsidiaries of Greek

banks are particularly present in Albania,

Bulgaria, FYR Macedonia, Romania and

Serbia, with market shares of above 15 per

cent. Contagion effects are possible in the

form of higher funding costs for sub-

sidiaries, which could be passed on to end-

consumers. However, the region has not

experienced a deposit run on any bank,

parent banking groups have remained very

committed to their subsidiaries, both with

funding and capital in the region and the

situation seems to remain stable and under

control.

Exchange: Regional transport corridors,

sea routes and overall transportation

policy rank alongside economic integra-

tion as fundamental to the development of

SEE. Further, the exchange of goods and

the expansion of tourism create a need for

better infrastructure such as roads, rail-

ways and air travel. Given the focus of the

EBRD’s lending portfolio in the region,

what are the opportunities for financing

regional infrastructure projects in the

Western Balkans? Could you highlight

some of the projects that are being fi-

nanced or co-financed by the EBRD? What

opportunities lie in this sector for foreign

investors?

J-M.P. The Bank is one of the most

important institutional investors in the

Western Balkans (defined here as all

countries of the former Yugoslav Republic

less Slovenia plus Albania), with a

cumulative business of about EUR 8

billion and an annual flow of new

investments of around EUR 1.4 billion.

Given the state of infrastructure that

critically needs modernisation, the strong

priority of regional integration and the

need to link the region as a whole to the

rest of Europe, it is not surprising to see

that investment in roads, transport lo-

gistics, airports, power and transmission

projects, represent a very high share of the

Bank's activities. About 50% of our annual

business is devoted to support countries in

the region to improve regional intercom-

nections with large, multi-annual invest-

ments plans. The financing of the projects

such as Corridor X in Serbia and FYR

Macedonia, Corridor Vc in Bosnia and

Herzegovina and Croatia, Corridor VIII in

Albania, FYR Macedonia and Bulgaria, the

transmission lines connecting Albania,

FYR Macedonia and Bulgaria are all

examples of our engagement. All these

projects are large, thus requiring a systemic

integration of co-financing among

international financial institutions, as well

as considerable grant resources. This is the

reason why, together with the European

Union and the European Investment Bank,

we have created the Western Balkans

Investment Framework: this is a way to

coordinate and consolidate financial

resources, whether debt or grants at the

European level and to capitalise on our

respective strengths to provide a better and

faster financing service to the countries of

the region.

Foreign investors may of course play a

role in the provision of infrastructure

services on the basis of concessions or

public-private partnerships. These pos-

sibilities are real, the airport in Tirana is a

good example of a recent success. The

EBRD is keen to promote such approaches

Photo credit: Tirana International Airport

www.ibde.org 17


but also recognises that they are challeng-

ing: it requires a well-developed regulatory

framework, very careful project prepa-

ration and the ability to mobilise large

financing packages; these are all areas in

which we can assist.

Exchange: How can investment in public

goods, such as telecommunications infra-

structure, foster private sector develo-

pment in the Western Balkans? How

should concessions for the privatization of

natural monopolies (such as broadband

networks) be managed? What is the op-

timal format of public-private partner-

ships in the development or restructuring

of telecommunications networks?

J-M.P. Investments in information and

communications technologies (ICT) and

infrastructure are critical in generating

operating efficiencies for many sectors of

an economy. By allowing knowledge to be

disseminated, markets to connect, or pro-

cessses to become more efficient, ICT is at

the root of private sector development. In

many other regions and countries, for

example Taiwan, Korea, Singapore or

Finland, such investment in telecom

infrastructure has been labelled as the

single largest cause for economic growth

and allows the development of the digital

economy. As noted in the declaration of

the recent Deauville G8 summit, the In-

ternet is “a driver of innovation, improves

efficiency and thus contributes to growth

and employment.” The EU has been very

active in pushing an ambitious digital

agenda recognizing that it is lagging

behind other regions of the world. Fast

broadband coverage for all by 2020 is such

a goal. This is key for the next phase of

economic growth and transformation in the

EBRD’s countries of operation where such

technologies are still in their infancy.

There remain massive challenges to the

creation of adequate telecoms infra-

structure in the Western Balkans. These

challenges stem from a lack of privat-

isation of telecoms operators, a lack of

investment in such networks and also a

lack of liberalisation.

Concessions for the privatisation of

natural monopolies such as broadband

networks have to be managed carefully. In

many cases, existing networks are outdated

and unable to support the massive data

flow requirements from the emergence of

new technologies such as smartphones.

This means selling such networks will

depend on the addition of other compo-

nents such as the use of frequencies.

Broadband wireless networks today can

carry large data streams which one day will

come close to what terrestrial networks do

via regular fibre optic. This means one has

to pay attention to technology much more

than before and a major rethink needs to

occur in trying to understand how to best

design the network of the future. Large

capital outlays may be necessary (e.g. 4G

GSM networks). Certain countries like

Singapore have chosen to build a single so

called “Next Generation Network” which

is then leased out to private operators,

rather than encourage the multiplication of

expensive networks by private operators.

So while Public-private partnerships

(“PPPs”) are definitely on the agenda, with

the usual issues of required regulatory

frameworks, proper contractual arrange-

ments in terms of risk allocation and profit

sharing, there is a question of whether the

state could still play a bigger role in the

set-up of the basic digital infrastructure

itself. The EBRD is certainly very interest-

ed in supporting such investments, which

will be crucial for the development of a

knowledge economy capable of stimulat-

ing growth.

Exchange: Given the recent surge of inter-

est in free economic zones as drivers of

employment and industrialization, do you

think that export processing zones (EPZs)

could be effective drivers of sustainable

economic development? And if so, how can

governments maximize the positive impact

of EPZs? How can foreign investors

maximize the potential of EPZs while

contributing to local development?

J-M.P. The establishment of Economic

Free Zones or Export Processing Zones

(EPZs) aims to attract foreign investors to

the region, based principally on tax breaks

or the elimination of various tariffs. For

instance, in the case of the FYR Ma-

cedonia, this has had some success. Four

foreign companies are currently operating

at the EPZ of Bunardzik, and three more

have recently started investments there.

The attraction of foreign investors to EPZs

can bring wider benefits to the local

economy by bringing new skills, processes

and standards of governance that can be

replicated elsewhere. This kind of positive

impact on the economy is at the heart of

many EBRD investments in the region.

However, governments also have to be

mindful of the possible loss of revenue that

may result from the provision of overly

generous incentives to foreign investors.

Equal treatment of local and foreign

investors is an important principle that

should be observed. Therefore, the

establishments of EPZs alone cannot be a

sustainable long-term solution. Policies

supporting investment and business have to

be aimed at the economy at large. Despite

good progress in recent years, an un-

favourable business climate and lack of

competitiveness continue to negatively

affect the region’s image as an attractive

investment destination, as suggested by the

business surveys such as the EBRD /

World Bank Business Environment and

Enterprise Performance Survey, the World

Bank’s Doing Business reports or the

World Economic Forum Competitiveness

Report. Administrative bottlenecks, a high

level of corruption, a weak judiciary sys-

tem, the lack of high quality infrastructure

and unqualified labour continue to remain

major obstacles for businesses, and au-

thorities across the region should prioritise

reforms in these areas to attract foreign

investors.

Exchange: What further reforms are

necessary to strengthen the regional co-

operation in the areas we have discussed,

that is, infrastructure, telecommunications

and the financial sector?

J-P.M. Regional cooperation is of course a

must, resulting in more impact of

investments, in technical and financial

efficiencies that benefit all in the region.

Much of the efforts of the international

community over the years have been

geared at promoting such cooperation,

through political dialogue and specific

institutions. Some obstacles remain: the

regulatory framework in many countries in

the SEE region hinders comprehensive

cooperation amongst countries. However,

as legislation across the region is gradually

aligned to the EU acquis, new possibilities

for cooperation are expected to emerge.

We see huge potential for regional co-

operation in the energy sector for example,

where work has taken place on the estab-

lishment of a regional electricity market

and current developments are aiming at

implementing a regionally coordinated

procedure for electricity capacity allo-

cation and congestion management. Sim-

ilar coordination is needed in the transport

sector, in order to complete the pan-

European corridors.

The recent financial crisis has prompted

a major increase in cross-border co-

operation in the financial sector. The

“Vienna Initiative” has played a major role

in the SEE countries in staving off a

systemic banking crisis and ensuring

parent banks remain committed to their

subsidiaries both with funding and capital.

18 www.ibde.org


This has worked very well. It was achieved

through the close dialogue and co-

ordination among the key banks present in

the region (mostly part of international

networks), the supervisors of the home

countries (where groups have their

headquarters) and host countries (the

countries of SEE where the banks are

present), the EC, the ECB and the

international financial institutions. This has

been a unique opportunity to bring together

all relevant parties to work together on

issues related to the financial sector in the

region, a process that continues.

Exchange: The EBRD has played an

important role in fostering the estab-

lishment of market-based, competitive and

sound economies in SEE. What would be

the future role of the EBRD in the Western

Balkans? Would it be more of a lending

institution or an equity investor?

The EBRD has been and intends to remain

a long term investor in the region. This is

what makes us “additional” compared to

other sources of financing (when at all

available). Of course a large part of the

projects of the EBRD consist in long-term

debt, sometimes specifically with the aim

to mobilise other commercial lenders along

side us in the context of syndicated loans,

thus having a catalytic role in bring to the

region lenders that may otherwise not have

considered it. This is very important as it

allows us to leverage our own role.

But in line with its mandate, the Bank

does also provide long-term capital to

companies in the region to support their

expansion plans. This includes taking

equity risk, for which the Bank is fully

equipped. The EBRD has been providing

equity to companies in the region for a

number of years and, despite the economic

crisis, is still very much engaged in

expanding its portfolio of equity positions,

particularly with local companies. This is a

priority of the Bank. We believe that a

number of underdeveloped sectors, espe-

cially in manufacturing, have a strong

growth potential mainly in view of the EU

accession process. There is the possibility

to create value and we believe we can

contribute to such process, not just with

our money but also through our parti-

cipation as a shareholder in the governance

of the investee companies or our support in

the form of technical advice.

Exchange: Why would you recommend

that European investment funds invest in

Western Balkans firms?

The Western Balkans constitute a group of

fairly complex countries, with some re-

maining inter-ethnic issues, some legacies

of the wars of the past decade and certain

pockets of political instability. Yet, the

direction towards greater stability and

prosperity is clear and the prospect of EU

accession is a strong catalyst for change.

The catch up potential is large and there is

a lot of value to be created as the markets

grow, local companies become more com-

petitive and new market needs are being

fulfilled. Using emerging market termino-

logy, one could say that the Western

Balkans are a “frontier” investment area.

It is for those with patient capital and a

long term view, with a very good

knowledge of the situation on the ground

and a readiness to take a hands-on role in

managing investments, a strategy that will

pay-off. This is what we do every day at

the EBRD and we would be more than

happy to share our knowledge and work

together with other investors interested in

the region.

EBRD at 20 Photo by Mike Ellis

www.ibde.org 19

E X C H A N G E: The Magazine for International Business and Diplomacy Country Report

Malta: a stable investment destination

Alan Camilleri, Executive Chairman, Malta Enterprise

nspired by the vision of becoming a

centre of excellence and a regional

hub, the small but ambitious island of

Malta is focusing its strategy on a number

of sectors which the Government has

identified as key pillars of the economy

and which have not only been performing

well but also present numerous oppor-

tunities for further growth.

Through such strategy, Malta was able

to withstand the difficulties it faced during

the international economic crisis and even-

tually also the challenges brought about by

the uncertainty in North Africa.

Indeed, according to the latest report

published by the UNCTAD, investment in

the past year has exceeded $1 billion – a

significant amount considering that Malta

is the smallest member in the European

Union and only has a population of around

400,000 people.

As the conflicts in North Africa and

particularly in Libya approach their reso-

lution, the renewed staibility in the region

will give rise to numerous opportunities.

Strategically located in the middle of

the Mediterranean Sea, Malta - which

maintained its economic, political and so-

cial stability even throughout these chal-

lenging times - is the ideal gateway for

entering the European Union and other

neighbouring markets in North Africa and

the Middle East.

Investors have the opportunity to set up

in Malta to reach nearby markets from an

English-speaking and business-friendly

environment, where a highly-skilled and

flexible workforce is also available.

Thanks to the skills and abilities of its

people, Malta has shifted up the value

chain and moved from a low-cost

manufacturing base to a knowledge-based

economy, with an emphasis on higher

added value as per the Government’s strat-

egy.

Sectors such as the financial services

industry and ICT, with the latter including

niche sectors such as call-centres and back

office support as well as digital gaming

and software development, have been flou-

rishing in the past years with considerable

growth rates.

Projects such as Smart City Malta, with

a $300 million investment from Dubai’s

Tecom Investments, and Corporate Village

Malta – which is envisaged to carry an

investment exceeding €150 million – are

expected to give a further boost to these

growing industries with state-of-the-art in-

frastructure.

Further opportunities will be avialable

in the budding life sciences industry, which

is building up on the success of the phar-

maceutical industry, particularly with the

construction of a new life sciences centre

that will provide a research nexus in col-

laboration with the University of Malta and

the country’s main Hospital.

The capacity building however does not

stop at improving the infrastructure, but

also with a heavy investment in eduacation

and training to ensure that trained workers

are always available to take up the oppor-

tunities being generated.

Other sectors which are also central to

the Government’s strategy - such as inter-

national education and training services,

healthcare, advanced manufacturing, tour-

ism, the aviation and maritime industries,

as well as eco-sustainability and the en-

vironment - shall also benefit from this

capacity building and consequently are

expected to keep growing as well.

Assistance is also available to investors

to encouarge them to do business in Malta,

including tax credits on the amounts in-

vested, access to finance, industrial space

at competitive rates, and other schemes to

encourage R&D, innovation and compet-

itiveness.

Moreover, Malta’s tax system, coupled

with the extensive network of double

taxation treaties, offers significant fiscal

efficiency to Maltese companies, whilst

Malta remains among the most attractive

countries within the EU in terms of taxes

and social contributions paid out by com-

panies.

I

Aviation sector has been identified as one of the key pillars of the economy in Maltese’s Government strategy

20 www.ibde.org

VIP Ambassadorial Luncheons

IBDE's VIP Ambassadorial Luncheons are an excellent opportunity for your clients to identify key investment opportunities and understand investment strategies in the UK as well as the countries represented in London within the wider economic and political context

Forthcoming Luncheons:

EU-Balkans informal Ambassadorial Luncheon - Exclusive Event

• 10 December 2011

Attendance at events in this series is by invitation only. Invitations are being extended to CEOs, CFOs, COOs, senior board members, decision makers and strategists from blue-chip companies interested in, or already investing in South Eastern Europe. Additional senior applicants will be considered for invitation subject to availability of places and meeting the above criteria.

For more information on our regional and country-specific Ambassadorial Luncheons contact us on [email protected]


Martin Davidson, British Council Chief Executive Photo Credit: © British Council

Exchange: Culture, with a capital “C”

can be derided by some interest groups as

an “elitist” activity, in its own ivory tower

separated from the cut and thrust of

business and the politics of diplomacy. In

an era of globalism is it short-sighted to

ignore the intrinsic and multi-facetted

value attached to “Culture” as promoted

by British Council activities in the world at

large?

M.D. It’s definitely short-sighted to do so

because everyone in the world is part of a

culture - and interacts with Culture all the

time. Reading, listening to music, watching

TV or noticing the different types of

architecture around us are all cultural

experiences which are universal parts of

everyday life. In an increasingly globalised

world, learning about other cultures builds

vital trust and understanding, and forges

valuable links that transcend politics.

That’s what the British Council’s inter-

national cultural relations work does.

The economic value of cultural re-

lations mustn’t be underestimated. For

example, our work in the arts not only

broadens cultural horizons, but helps

emerging and established artists from the

UK to find lucrative new markets for their

work overseas. Our work supports the

UK’s international Higher Education sec-

tor which generates an estimated £8 billion

a year for the economy, through the for-

eign students who come here to study.

Exchange: Does the British Council, with

its programs tailored to the many areas of

cultural relations in which it operates,

represent the best value for public funding,

offering expertise in the key cultural values

of the diverse locales in which business

and diplomacy must operate?

M.D. Absolutely. We’ve been working for

more than 75 years and we operate in more

than 100 countries. Our networks and

legacy of trust in the places where we

operate is essential in order to reach all

levels of society. For example, we’ve been

in Egypt since the 1930s, and the trust

we’ve built up has proved invaluable

during the Arab Spring.

Only around a quarter of our income

comes from a government grant, and this

will decrease between now and 2015. The

money we earn from our fee-earning

activities such as English teaching and

exams is used to fund our charitable work,

which means even better value for money

for the UK taxpayer.

Exchange: How would you envisage an

effective administrative structure within

which the FCO, DIFID and the British

Council could work together?

M.D. We already work closely with the

Foreign and Commonwealth Office and the

Department for International Development,

both in London and overseas, and our work

complements what they do on behalf of the

UK. We each bring different benefits to

Britain; in our case a focus on building

trust and understanding with the people of

other countries.

We operate at arm’s length from gov-

ernment which is important in building

trust and allows us to operate in situations

where a government department could not.

But we also serve the UK’s long term

international interests. This was recognised

in the government’s review of bodies like

ours after the 2010 election.

Exchange: Science, media and sport are

all areas of interest in furthering inter-

national business and diplomacy. What

British Council activities in these three

areas would you like to highlight for their

potential to enhance both business and

diplomatic links worldwide?

M.D. Science is an integral part of culture

and a key driver of future economic

prosperity in both the UK and overseas.

A global stimulus package: the potential economic returns of the British Council's

international cultural activities

Exchange talks to Martin Davidson

Chief Executive, British Council

,

22 www.ibde.org


We have a very successful science com-

munication initiative, FameLab - run in

partnership with the Cheltenham Science

Festival - which helps to make science an

exciting and attractive career choice. This

builds up the transferable skills of young

scientists, many of whom have gone on to

be influential characters in their own

countries, often in the national media or

science policy areas. Famelab has been run

in more than 15 countries across Europe,

North Africa and Asia, and the Inter-

national Final in the UK brings together

participants from countries as geograph-

ically and politically diverse as Hong Kong

Libya, Israel and Egypt.

Last year we worked together with the

Royal Society to widen the impact and

reach of the Frontiers of Science event in

Sao Paulo - which brought together 80 of

the most talented young scientists from

Brazil, Chile and the UK to discuss the

new frontiers of research in areas as

diverse as biofuels and quantum entan-

glement.

The unveiling of a statue of Yuri

Gagarin outside our central London offices

in July celebrated the contribution of

science to the world. It generated a real

sense of goodwill and created a great

opportunity for the UK and Russia space

industries to work together.

Our work also harnesses the power of

sport as a global language. We’re involved

in International Inspiration, London 2012’s

international sporting legacy programme –

which, among other things, uses sport to

develop young people’s leadership skills,

particularly in developing countries.

We also work with the Premier League

on a programme called Premier Skills,

which uses the global appeal of British

football to develop communities and

improve English skills worldwide. There’s

a clear long-term economic benefit in all of

this.

Exchange: In Africa’s newest country,

South Sudan, the British Council is

involved in the Rift Valley Institute’s

course on Sudan: “an intense introduction

to the economics, ethnicities, politics,

cultures, histories, petroleum and hydro-

logy, border disputes and secession, civil

wars and peace agreements of this huge,

fascinating and deeply troubled country”,

to quote Tony Calderbank, British Council

Director for South Sudan. Given the

efficacy of such broad-spectrum cultural

work in generating opportunities for

globalized business activity down the line,

underpinned by the dual goals of the

British Council to undertake cultural work

in Africa and support development object-

tives across the continent, might a conver-

gence be found - in effect an income

earning partnership potential - in working

with African nations to reduce the negative

impact of tribalism on overall cultural and

economic progress?

M.D. Our cultural relations work in Africa

contributes to development objectives and,

in the longer term, can support the global

business agenda.

Let me give you a few examples of

what we’ve already achieved in South

Sudan. The legal system there is staffed

with Arabic speaking lawyers and officials,

so we’ve provided English language

training for the Judiciary and the Ministry

of Legal Affairs and Constitutional De-

velopment to assist the transition to-wards

an East African legal model that uses

English. We are currently training police in

South Sudan as part of a DFID Safety and

Access to Justice project. Our hope is that

this will make a contribution to stability in

South Sudan and stronger ties with the rest

of East Africa, the UK and, perhaps in due

course, the Commonwealth. All this is

good for business and security.

Some African countries do indeed see

tribalism as a challenge to development,

and it was probably one of the factors that

contributed to the adoption of English as

Children in Kenya learning English through the British Council. Photograph: © Mat Wright

www.ibde.org 23


the official language of South Sudan.

Cultural relations can enable people to

reach across wide cultural or political

divides. In places like the Rift Valley of

Kenya and in former IDP camps in

Khartoum we are providing training and

support to help communities live and work

in greater harmony.

In the same way that English, education

or sport can often provide a unifying

challenge or opportunity, so work through

the arts can cross political and cultural

boundaries. In Sudan we’ve used our work

in developing business skills for young

people in the creative industries as a vehi-

cle for bringing together arts communities

from Juba and Khartoum.

Cultural Relations is invariably a long-

term business, because building trust takes

time – and, because it involves people, it is

rarely linear. For this reason local

knowledge and judgement are invaluable

in ensuring we always work with the

cultural grain rather than across or against

it. That’s why we’ve strengthened our

presence in Juba.

Exchange: The dissolution of the “former

Yugoslavia” into its culturally divergent

national interests could be considered a

classic opportunity for the crucial partner-

ship of diplomacy with the cultural special-

izations of the British Council in moving

the region towards a more cooperative

economic and political future. The Lon-

don-based non-profit International Busi-

ness and Diplomatic Exchange runs an

EU-Balkans Discussion Group the ultimate

goal of which is to strengthen regional

cooperation as well as contribute towards

greater stability and prosperity in South

East Europe, leading eventually to the

region's integration within the European

Union. To what extent is the British

Council engaged in this part of the world,

and what are its core activities in the

region?

M.D. The fall of Yugoslavia [in compar-

ison to some other emerging democracies]

was not brought about by civil society

calling for an open society, but by ethno-

nationalist wars, launched by post Tito-era

leaders in a bid to hold on to power. The

push for more open societies remains a live

issue, along with championing the healing

and reconnecting communities divided by

war. A new generation of citizens seeking

a future in the EU - driven by a desire for a

better life - are now demanding a faster

track to EU accession. Many younger

people, impatient with the slow pace of

change, the quality of education, the skills

training available and the shortage of jobs,

are increasingly disconnected with the

leaders and the accession process.

The British Council’s work in the

region across English, Education and the

Arts – in areas including skills and citi-

zenship - represents a range of responses

tailored to the specific needs of local

communities and institutions. Our network

of offices is a locally-based but globally-

linked source of UK expertise. Our cultural

relations work brings government, employ-

ers and educators together to address the

wide range of needs – and this gives us a

strong understanding of local priorities and

ensures that we can respond in the best

possible way.

And if I may add a final comment, I am

certain that cultural relations work gradu-

ally builds trust and therefore contributes

to a safer and more prosperous world. We

would be delighted to see more countries

focussing on international cultural and

educational cooperation. Business has a

huge role to play too. Many of the best

cultural relations programmes already

involve partnership with international busi-

nesses and there are opportunities for much

more of this.

English National Ballet in front of the UK Pavilion at Shanghai Expo. The British Council led on the design and development of the UK’s Programme of Events at the Expo and programmed entertainment 7 days a week for its duration. Photograph: British Council

24 www.ibde.org

EU-Balkans Discussion Group

Series I

The IBDE’s ‘EU-Balkans Discussion Group’ is designed to support and promote regional cooperation and the socio-economic development of the Western Balkans with the support of EU and Balkans Embassies in the UK for the benefit, in particular, of the countries of the Western Balkans and the EU. This goes in line with the EU’s and its member states’ policies towards the region. In this regard the project aims to focus on regional cooperation, providing a regional approach for trade and/or investment, in order to maximize its common regional appeal to the wider multinational business community.

The meetings are open to Heads of Mission of EU-Western Balkans countries plus Turkey, senior UK/EU officials and business leaders.

For more information contact us on + 44 (0) 20 7193 1485 or [email protected]

EU current members Candidate countries Potential candidate countries


Exchange: Your Excellency, Uzbekistan

celebrates 20th Anniversary of its Indepen-

dence this year, congratulations. Having

worked within the Uzbek Foreign Ministry

since Independence, what are your

observations of Uzbekistan’s achievements

in political sphere during this period?

Ambassador Akbarov: First of all, I

would like to note that this is a very special

event for Uzbekistan. Twenty years can be

a short time for history, however

Uzbekistan managed to make significant

progress during this period. This was a

long and not easy way, when we had to

prove our Independence in every field:

politics, economy and international rela-

tions.

Today Uzbekistan has finished the tran-

sition period from the soviet command-

administrative system to a democratic

country with market economy. We have

created the solid foundations of statehood,

established legislative, executive and judi-

cial branches of power, developed various

institutions of civil society, raised our

unique historical heritage and national

identity.

In his program speech on 12 November

2010, HE Mr. Islam Karimov, the Presi-

dent of Uzbekistan, outlined the Concept

of further development of the country,

which prioritized such directions as –

democratization of state power, reforming

the legal system, developing the electoral

legislation, ensuring freedom of speech,

strengthening civil society institutions,

deepening market reforms and liberaliz-

ation of economy.

On the international arena our country

has gained a reputation as a responsible

partner adhering to peace and stability in

the region. Uzbekistan has put forward a

range of important foreign policy initia-

tives which influenced multilateral dy-

namics in the region and internationally.

Among them – initiative on establishing of

the International Counter-Terrorism Centre

within the UN Security Council (1999)

which led to formation of the UN Counter-

Terrorism Committee (2001). Others in-

clude creation of the Central Asian Regi-

onal Information and Coordination Centre

on Combating against Drug Trafficking

(2002) and the Nuclear-Weapon-Free Zone

in Central Asia (2006).

The assistance in normalization of the

situation in neighbouring Afghanistan is

one of Uzbekistan’s foreign policy priori-

ties. Established on our initiative under the

aegis of the UN in the late 1990s, the

“6+2” Contact Group on Afghanistan

(included six bordering countries, Russia

Uzbekistan: 20 Years of Political Stability and Economic Growth

Exchange talks to His Excellency Mr. Otabek Akbarov, Ambassador of the Republic of

Uzbekistan to the United Kingdom of Great Britain and Northern Ireland, and the

Kingdom of Norway

,

26 www.ibde.org

Hydrocarbons

Onshore Oil & Gas ProductionOnshore & Offshore PipelinesRefining & PetrochemicalsLNG/FLNGGTL & GasificationSulphur ManagementFloating Production SystemsFixed Offshore FacilitiesSubsea Systems

Infrastracture

Resource InfrastructureUrban Infrastructure

Coastal & MarineWater & Wastewater

TransportEnvironment

Contaminated SitesWaste Management

Power

Integrated Gasification Combined Cycle (IGCC)Gas Turbine/Combined CycleCoal Fired PlantsAir Quality ControlNuclearRenewable EnergyTransmission Networks

Minerals & Metals

Base MetalsCoal

ChemicalsFerrous Metals

AluminaAluminium

Iron OreGas Cleaning

350+Fixed Offshore

Platforms

740+Power Units

4thTallest Struc-ture in the World

18+Nuclear Power

Units

1stLargest Tunneled Marine Outfall in the World

400+Gas Processing

Plants

200+Light Metal Projects in 12

Countries

$250blnAssets supported by Long Term Projects

40+Years Experience

55+Years Experience

50+Years Experience

60+Years Experience

www.worleyparsons.com

zivile.petrosiute

Typewritten Text

ering Company

zivile.petrosiute

Typewritten Text

zivile.petrosiute

Typewritten Text

zivile.petrosiute

Typewritten Text

zivile.petrosiute

Typewritten Text

zivile.petrosiute

Typewritten Text

zivile.petrosiute

Typewritten Text

zivile.petrosiute

Typewritten Text

zivile.petrosiute

Typewritten Text

zivile.petrosiute

Typewritten Text

zivile.petrosiute

Typewritten Text

zivile.petrosiute

Typewritten Text

zivile.petrosiute

Typewritten Text

zivile.petrosiute

Typewritten Text

zivile.petrosiute

Typewritten Text

zivile.petrosiute

Typewritten Text

Global Engine


Official logo of Uzbekistan’s 20th Anniversary of Independence

and the US) has proved its effectiveness.

Now, we propose to resume this group in

an enlarged format “6+3” involving NATO.

Exchange: What are your thoughts on

economic development of Uzbekistan, par-

ticular in transition to a market economy?

How did Uzbekistan address the con-

sequences of the global economic crisis?

Ambassador Akbarov: Uzbekistan’s model

of economic development was based on

five principles: (1) de-ideologization of

economy and its priority over politics, (2)

the state – main reformer, (3) rule of law,

(4) strong social policy and (5) gradual

reforms. This approach resulted in con-

siderable achievements, recognized by all

major international financial institutions.

During 20 years, the country’s GDP

grew by 3.5 times, while per capita ratio -

by 2.5 times, real incomes of population -

by 3.8 times, state expenses for social

security - 5 times, child and maternal

mortality rates fell three and two times re-

spectively, life expectancy of men climbed

to 73 from 67 years and for women to 75.

The structure of our trade has radically

changed transforming Uzbekistan from a

country which previously exported raw

materials and imported finished products,

to a country with growing export of value

added products and importing mainly high-

tech equipment. Today Uzbekistan is a

leading industrial country in Central Asia

with modern automobile, airplane and

machine building, textiles, food pro-

cessing, metallurgy, natural oil and gas

processing, chemical and other industries.

In 2008-2009 when a number of other

countries were suffering from the global

economic crisis, Uzbekistan recorded GDP

growth at 8.5-9 percent, in 2010 – 8.1

percent, while in 2011 it is estimated to be

8.5 percent.

Uzbekistan is a member of the IMF,

World Bank, Asian Development Bank,

Islamic Development Bank and Economic

Cooperation Organization. It has observer

status at the World Trade Organization.

Exchange: What is the current investment

climate in your country? Can you provide

some examples of the biggest investment

projects in Uzbekistan?

Ambassador Akbarov: The Government

has created favourable conditions for

foreign investors. The country has gained a

reputation of a reliable business partner

with a qualified workforce, rich mineral

resource base and developed transport

infrastructure.

Nowadays, Uzbekistan enjoys eco-

nomic cooperation with 180 countries. Our

traditional trade partners are the CIS

countries, notably Russia, Ukraine and

Kazakhstan, which in aggregate account

for over 40% of all exports and imports.

Non-CIS partners have been increasing in

importance in recent years, with China,

US, EU, South Korea, and Japan being the

most active.

The value of foreign trade turnover

grew from 805,6 million in 1990 to 21,8

billion USD in 2010. The volume of

investments into our economy reached 100

billion USD, and number of enterprises

with foreign capital – 4200. Our main

partners in implementation of investment

projects are General Motors, Texaco,

MAN, Daimler Benz, Isuzu Motors, Su-

mitomo, Korean Air, Korea Telecom,

Gazprom, Lukoil, Petronas, CNPC and

other world class companies.

Established in Navoi region of Uz-

bekistan, the Free Industrial and Economic

Zone allowed formation of a modern, well-

diversified industrial base by attracting

advanced technologies and resource

efficient equipment. Business entities re-

gistered in the FIEZ are exempt from

practically all types of taxes, customs

duties for imported equipment and raw

materials depending on the volume of

direct investments made. There are 21

ongoing projects in FIEZ now.

Exchange: Uzbekistan is a member of a

number of regional organizations, in-

cluding the Commonwealth of Independent

States and Shanghai Cooperation Org-

anization. How important is regional and

international economic cooperation to

Uzbekistan at this stage?

Ambassador Akbarov: Along with the

aforementioned organizations I would point

out that Uzbekistan is also a member of

UN, OSCE, Collective Security Treaty

Organization, Organization of Islamic

Conference. We take an active part in the

activities of UNESCO, WHO and ILO.

Today, the Commonwealth of Indepen-

dent States (CIS) is on the brink of its 20-

year anniversary. During this period we

have heard different statements, sometimes

diametrically opposite, opinions and

forecasts regarding the effectiveness of the

CIS activity. However, time has demon-

strated that the CIS still remains the only

structure which promotes development of

multilateral cooperation among the major-

ity of post-soviet countries.

Meanwhile, modern realities demand an

improvement of the CIS activity. One of

the most important issues on the CIS

agenda is intensification of economic co-

operation on the basis of the free trade

regime between member-states and further

development of transport communications.

These priorities are secured by the CIS

Concept of further development, signed by

Heads of States on 5 October 2007.

When we talk about the Shanghai Co-

operation Organization (SCO), it is impor-

tant to mention that Uzbekistan, which

signed the Shanghai Declaration in June

2001, was one of the founders of this

Organization. On the basis of the principles

of equality, we together with other mem-

bers formulated and introduced the SCO’s

strategy. Our priorities include ensuring

security and stability in the region,

strengthening investment cooperation,

development of transport networks and

telecommunications, creation of jobs and

solving social problems.

Welcoming the SCO Charter goals on

security and regional stability, Uzbekistan

attaches a great importance to the activity

of the Regional Anti-Terrorist Structure

(RATS) in Tashkent.

We also support the establishment of

links between the SCO and other inter-

national structures. The organization has

contacts with ASEAN, as well as observer

status in the United Nations. The de-

claration on collaboration between the

secretariats of the UN and SCO, signed in

April 2010 in Tashkent, also facilitates the

establishment of constructive relations

between the UN Counterterrorism Com-

mittee and the Executive Committee of

RATS.

Uzbekistan chaired the SCO in 2010

and hosted its summit in Tashkent in June

of that year, when the Head of our State

put forward several important proposals

28 www.ibde.org


related to development of the decision-

making mechanism within the SCO and

activity of its structures. The summit

resulted in signing of the Declaration of the

Heads of States, the Provision on regu-

lations for admission of new members in

SCO, as well as Agreements on collabo-

ration in the field of agriculture and fight

against crime and number of other impor-

tant documents.

Exchange: The United Kingdom is one of

the main financial centres of the world.

How do you evaluate the level and pros-

pects of cooperation between Uzbekistan

and UK?

Ambassador Akbarov: The diplomatic

relations between Uzbekistan and the

United Kingdom were established in

January 1992. However the historic ties

between European countries and Uz-

bekistan have a long history, when Amir

Temur and King Henry IV exchanged

letters (XV century), Marco Polo and Ruy

Gonzales de Clavijo visited the region with

trade and diplomatic missions (XIII and

XV centuries).

The transit stop of President Islam

Karimov at the London Stansted Airport

on 19 September 2010 (on the way to the

United Nations MDG Summit in New

York) was a symbolic step forward in the

bilateral political dialogue. During the

meeting with British officials, President

Islam Karimov expressed satisfaction with

the development of the Uzbek-British

relations in a number of areas and noted

that our country is open to expanding this

cooperation further. In his welcoming

letter addressed to the Head of our State

the British Prime Minister Rt. Hon. Mr.

David Cameron showed interest in develo-

ping further constructive links in business,

education, parliamentary and regional se-

curity areas.

The United Kingdom is one of the

major trade partners of Uzbekistan in

Europe. About 200 joint ventures with

British investors operate and over 50

British companies have their representative

offices in Uzbekistan.

Moreover, there is a growing interest

from British business towards Uzbekistan.

In particular, it became obvious during the

17th Session of the Uzbek-British Trade

and Industry Council in December 2010 in

Tashkent, which was attended by the big-

gest British business delegation consisting

of 78 representatives from 40 companies.

As result of their direct contacts with

Uzbek partners a multi-million-pound

investment package is being implemented

between two countries. The next UBTIC

forum is planned to be held in late autumn

2011 in London.

Education and science are actively

advancing fields in our relations. The

Westminster International University in

Tashkent delivers a high quality education

for citizens of Uzbekistan. Nowadays,

there are several British universities

interested in establishing such kind of

partnership with Uzbekistan.

The Cambridge Central Asia Forum

headed by Professor S. Saxena implements

a number of projects jointly with Uzbek

researchers and scientists. One of the

outstanding examples of this cooperation

will be the Centre of High Technologies in

Tashkent aimed at boosting innovations in

pharmacy, geology, geophysics, biotech-

nology, sustainable energy, nanotech-

nology, software development and other

areas.

In the framework of the British Coun-

cil’s INSPIRE Program, five universities

of Uzbekistan are implementing inter-

national strategic partnership in research

and education with five universities in

Britain.

Cultural diplomacy is one of the most

effective ways to promote friendship

among nations. British designers and

artists annually visit world-famous his-

torical cities of Uzbekistan – Tashkent,

Samarkand, Bukhara, Khiva and others

during the Style.UZ Art Week, Asrlar

Sadosi (“Echo of Centuries”) Traditional

Cultural Festival as well as other events,

exhibiting their arts and carrying out joint

projects.

Together with the Forum of Culture and

Arts of Uzbekistan large scale of cultural

activities have been carried out in the UK

as well: Suzani embroidery exhibition in

Burrell’s Collection Museum in Glasgow,

photo exhibition “Tashkent: the History of

one City” in London, Cambridge and Bath

are to mention but few.

Exchange: What are the current develo-

pment and prospects of Uzbekistan’s

relations with the Kingdom of Norway?

Ambassador Akbarov: As Ambassador of

Uzbekistan to Norway with residence in

London since May 2010, I am glad to

contribute to the intensification of our

relations with this country. Now, there is a

regular dialogue between our Foreign

Ministries, and similar exchange is planned

in the parliamentary sphere.

There have been several visits of No-

rwegian business community to Uzbe-

kistan last years. Particularly, the dele-

gation led by the State agency Innovation

Norway visited our country in 2009 and

held meetings in number of state depart-

ments, as well as a trip to the Navoi Free

Industrial Economic Zone.

Nowadays Norwegian companies such

as International Development Norway and

the Energy Saving International implement

their projects in Uzbekistan.

The next visit of a delegation from the

business community of Norway to Uzbe-

kistan and a joint business-forum are

scheduled for November 2011. High tech

companies like Statoil, Aker Solutions,

Numerical Rocks, SINTEF multiphase

flow laboratory, as well as representatives

of the Norwegian University of Natural

Science and Technology are expected to

attend this forum and contribute by their

presentations for local business commu-

nity.

Tashkent: the capital of Uzbekistan

www.ibde.org 29

EU-BALKANS AMBASSADORIAL ROUNDTABLE

24 November 2011, 09:30 -15:30

Followed by a drinks reception

Venue: Europe House, London SW1P

Organised in conjunction with the UCL European Institute

European integration stands alongside comprehensive and sustainable growth as the

overarching goals for the Balkans. As all Western Balkan countries plus Turkey aspire

to full EU membership, the domestic challenges they face and the membership criteria

they are expected to fulfil make the pursuance of political reforms as well as sound

economic policies essential to ensure the region’s progress.

Further to a closer cooperation among the Balkan states themselves, necessary in order

to overcome the legacy of the Yugoslav wars, the key regional priorities thus include

socio-economic development, sound public finance, external assistance management,

enhanced consultation among all stakeholders and anti-corruption measures.

The European Union supports governments in addressing these challenges through the

so-called Stabilization and Association Process. It offers key instruments for political

stabilisation, transition to a market economy and regional cooperation, and thus

represents a prime motivational force for reform in the region. However, the EU also

faces challenges of its own with regard to future enlargement, not least the onset of an

“enlargement fatigue” among existing member states.

The “EU-Balkans Ambassadorial Roundtable” aims to create an opportunity to address

these challenges by way of a constructive dialogue of relevant stakeholders - diplomats,

EU officials, business people – with academics specialising in research in this field from

UCL and elsewhere.

To view the full agenda and the list of speakers please go to www.ibde.irg or to register your

interest please email us at [email protected]

http://www.ibde.irg/


Analysis Exchange: Autumn 2011

www.ibde.org 31

he Arab Spring breathed new life

into demands for political reform

in the Gulf Cooperation Council

(GCC) states. Since the beginning of the

popular uprisings in North Africa, a series

of petitions and calls for meaningful

change rattled the conservative Gulf

monarchies. Significant unrest in Bahrain

briefly threatened the ruling Al-Khalifa

family before it was quelled by the

intervention of military forces from Saudi

Arabia and the United Arab Emirates

(UAE). Oman, Kuwait and parts of eastern

Saudi Arabia also saw significant protests,

while the UAE responded to oppositional

activity with a repressive clampdown on

advocates of reform. Although the meas-

ures restored a degree of stability to the

Arabian Peninsula, they indicated that the

oil states, too, were vulnerable to the

fusion of political pressure with socio-

economic discontent that proved so potent

in North Africa.

Policy responses in the GCC states

focused overwhelmingly on short-term

measures as officials acknowledged the

social and economic roots of the political

tensions. These included hand-outs of cash

(Kuwait, Bahrain and the UAE), creating

jobs in already bloated public sectors

(Saudi Arabia, Bahrain, Oman), and

raising workers‟ wages and benefits (Saudi

Arabia, Oman). Together, they represented

„tried and tested‟ measures designed to

pre-empt unrest and secure short-term

stability by throwing money at the prob-

lem.

The scale of the spending is enormous.

Saudi Arabia announced two emergency

welfare packages collectively worth $130

billion. This figure exceeded every annual

government budget until 2007 and

included a provision to employ 60,000

additional Saudis in the Ministry of

Interior alone. It also contained stipulations

for increasing the minimum wage of public

sector employees (but not private sector

workers), offering a one-time bonus of a

month‟s pay to all public officials, and

constructing 500,000 new homes to

combat a crippling shortage of social

housing. In Bahrain, the Ministry of

Interior promised to create an additional

20,000 new jobs in an already-bloated

public sector, while in Oman, Sultan

Qaboos announced 35,000 new public

sector jobs as well as a pay increase, while

leaving the private sector largely un-

touched.

Yet the decision to intensify the politics

of patronage by increasing the flow of

unproductive payoffs to key sectors of

society deliver damaging blows to the

programmes of economic diversification

launched in recent years in every GCC

state. These intended to scale back the role

of the state in the economy and boost the

role of the private sector. Instead of

strengthening the private sector and

weaning citizens off public sector

employment, the new packages expand

government spending and widen an

already-large discrepancy between the

public and private sectors. In addition, they

create hostages to fortune as they lock in

government spending at very high levels

that depend on the price of oil remaining

high.

Indeed the packages are fiscally un-

sustainable in the longer-term. Over the

past decade, the break-even price of oil

that Gulf economies require to balance

their budgets has risen inexorably. In Saudi

Arabia the increase has been from $20 to

nearly $90 per barrel, with the Institute for

International Finance forecasting a break-

even price of $115 by 2015. Bahrain

already faces a break-even price exceeding

$100 per barrel while even oil-rich Kuwait

is approaching $80, well-up on previous

years. These high prices reflect in part the

massive spending commitments made this

year, but political sensitivities mean it is

unlikely that governments will easily be

able (or willing) to roll back the financial

inducements at a later date. In distributive

states that lack a participatory dimension it

is far easier to give something than it is to

take it away.

Reinforcing the political status quo at

best delays meeting the calls for change

and leaves untouched the underlying

challenges of resource depletion and the

transition toward post-oil economies. All

GCC states will face this transition sooner

or later, with greatest urgency in Oman and

Bahrain, which already obtains the

majority of its oil (and resulting revenues)

from an agreement to share Saudi Arabia‟s

Abu Safah field. Preparing for the post-oil

era was the purpose of the ambitious

economic diversification programmes and

national „visions.‟ However, buying

support in the short-term only increases the

challenges of transition in the long-term,

with immediate needs of ensuring regime

survival trumping those of genuine

political and economic reformulation.

This is most evident in Bahrain, where

the government had invested heavily in

diversifying into a regional tourism and

financial hub based on the slogan of

Business-Friendly Bahrain. In turn, it

formed the cornerstone of the Bahrain

Economic Vision 2030 drawn up by the

Economic Development Board, headed by

the reforming Crown Prince, Salman bin

Hamad Al-Khalifa. However, these efforts

were shredded as the regime fought

violently for its political survival in the

face of mass social opposition from

February to June 2011. Political influence

also shifted away from the Crown Prince

toward his hard-line great uncle, Prime

Minister Khalifa bin Salman Al-Khalifa.

As with the wider Gulf region, busi-

nesses in Bahrain were only jus recovering

from the effects of the global financial

crisis in 2008-9. This had impacted its core

real estate, construction, financial and

T

Policy responses to the Arab Spring in the Gulf

Kristian Coates Ulrichsen

E X C H A N G E: The Magazine for International Business and Diplomacy Analysis

2 www.ibde.org

high-end tourism sectors. Following a year

of recovery in 2010, businesses were

expecting an upturn of growth in 2011. Yet

the simmering tensions and continuing

absence of a comprehensive political

settlement are inflicting greater damage

than the initial shock of the uprising itself.

They signal to foreign investors and insti-

tutional partners that governmental claims

of a return to normality rest on a fragile

and transient veneer of stability.

August announcements by Volvo of the

cancellation of its 2012 Golf Champions

Tournament and by Credit Agricole of its

plan to close its Bahrain office and relocate

to Dubai are significant. Contrary to expec-

tation, the majority of regional and

international banks and businesses did not

abandon Bahrain in March. Most investors

adopted a „wait and see‟ approach that now

appears to be wearing thin. An incon-

clusive national dialogue held in July and a

faltering Independent Commission do not

hold out to investors the hope of any

speedy resolution to the roots of unrest.

Thus, the fallout from the impact of the

Arab Spring is both political and eco-

nomic, as contradictory internal pressures

complicate and undermine policy respons-

es to conflicting short - and longer-term

goals of stability and reform.

s developments unfolded in the

Middle East and North Africa

(MENA) during the past eight

months, one thing has become abundantly

clear: the political transformation will not

survive without an economic transforma-

tion. Many analysts have pointed out that

an overwhelming motivation of the people

who took to the streets with the Arab

Spring was the dismal economic and

employ-ment condition on the ground;

high unemployment among the young,

crony capitalism, inefficient welfare state,

and even food shortages.

Therefore, the new regimes emerging

from the Arab Spring will have to tackle

the many economic problems that are

plaguing the region. How do you promote

economic growth in politically transition-

ing nations, like the ones of MENA?

Which economic model should be imple-

mented in pursuit of economic growth,

higher employment, and equal opportu-

nities for all (a major demand of the people

in the streets)?

Three levels of economic activity,

where trade plays a role

Any strategy for instituting political reform

in MENA will have to include a strong

consideration for economic reform, and in

particular integrating the region into the

global economy. The nations emerging

from the Arab Spring need to reenergize

entrepreneurial activities at the local level,

strengthen the regulation of national mar-

kets, and facilitate exports through regional

trade integration.

At the local level, commerce always

existed, especially in the Arab world with

its strong cultural affinity for exchange and

bargaining. What small and medium size

local merchants need to grow and flourish

is the freedom from government regulation

/intervention, and the existence of an

infrastructure system that only the govern-

ment can create and maintain.

In order to jump-start local markets and

promote economic activity at the lowest

level, the central government should trans-

fer the administration and regulation of

local markets to local authorities. This will

allow for the more efficient operation of

these local markets, and free the central

government to tackle bigger issues. Thus,

the collection of taxes and promulgation of

licenses and local regulations should be

performed at the local level, with respect to

these local markets and small/medium size

companies.

For its part, the central government

should concentrate its efforts in providing

the necessary infrastructure (roads and

transportation systems, power grids, tele-

phone, internet), and venues/methods for

adjudication and dispute resolution (courts

and other legal services) – all very neces-

sary for the proper functioning of a local

economy. It is imperative that small entre-

preneurs have the necessary access to

adequate transportation, consistent energy

and upgraded for the 21st century com-

munication systems – something only the

central government can guarantee.

At the national level, what applies for

small companies and local markets should

also apply nationally. However, it will be

very challenging for a young democracy to

both regulate and control large companies.

After all, corruption at the top and exploit-

tation of the public trust by the regimes of

Tunisia and Egypt was in part what broke

the proverbial camel‟s back and sent the

people to the streets. In order for neo-

liberalism to succeed, it will have to apply

to the large national companies and the

national market as well, subjecting them to

the same free market economic rules that

the middle class had to live by during the

past 20 years.

Therefore it is imperative that any libe-

ralization at the national level or any priva-

tization of national companies be done

slowly, methodically and very carefully.

Shock therapy like the one used in post-

A

A trade agenda for the ‘Arab Spring’ Global integration and the dangers of neoliberalism!

Nasos Mihalakas


www.ibde.org 31

Closed shops from Arab Spring. Photo credit: Allvoices

soviet Eastern Europe, and WB/IMF „one

size fits all‟ economic policies which

advocate for complete and unconditional

liberalization of the market, will lead to the

perpetuation of cronyism and the further

enrichment of the current elite. For exam-

ple, the government should scrutinize not

only the selling/privatization of large and

inefficient government companies, but also

operation/management of large companies

transitioning from national monopolies to

market economies.

At the international level, there are

two trade-related strategies for growth;

first, regional integration that focuses on

movement of workers, goods, and capital;

and second, preferential access to western

markets through financial assistance from

the WB and the IMF.

Free movement of workers is impe-

rative for a region that has a lot of jobs to

offer in the oil and gas industry, but relies

heavily on migrant workers from sub-

Saharan Africa and Asia. The region needs

a common regulatory system that allows

for preferential working permits of Arab

citizens wishing to move from non-oil

producing countries (like Egypt, Syria,

Tunisia, Morocco, Yemen, Jordan) to oil-

producing countries, but does not extend

citizenship rights. Such movement of

workers could alleviate unemployment in

some countries, grow production in others,

and foster better understanding and co-

operation among the otherwise culturally

and religiously similar people of the

MENA.

Although many analyst hope that the

Arab Spring will usher a new era of peace

and democratic values for the region, some

like Leon Hadar doubt that and argue that

the Middle East should follow the ASEAN

model of regional integration. (see: “The

Middle East Needs an ASEAN”). Mr.

Hadar argues that ASEAN is a mosaic of

various political systems and old and new

civilizations in various stages of economic

development, which were brought together

not by a common ideology, religion, or

culture, but rather by their mutual eco-

nomic and political interests. A free-trade

zone for the MENA region (like ASEAN),

based on the large and educated middle

class of the region, could further grow the

regional economy and provide many new

employment opportunities.

A role for the West

The best thing the west can do for the

people of MENA right now is help them

integrate into the global market… quickly

but sustainably! Western nations should

link democratic development with access

to western markets, and promise to deliver

the benefits of preferential trade access to

the people of those nations that embrace

democratic values and democratic forms of

governance. The promotion and facilitation

of a regional trade agreement should be at

the forefront of any western economic ini-

tiative about the Arab Spring.

The question of how can the Bretton

Woods institutions (WTO, IMF, WB) help

the „Arab Spring‟ is hard to answer, con-

sidering that it was IMF and WB policies

in the first place that led to imbalanced

liberalization of the Tunisian and Egyptian

economies, and the inevitable crony capi-

talism that has followed the application of

neoliberalism in the Middle East. On the

other hand, only the IMF and the WB can

guarantee large-scale economic assistance.

During the most recent G-8 summit (this

past May) the G-8 countries pledged $20

billion of their own money to go along

with $20 billion offered by the IMF and

the WB, to support the Arab Spring.

Although it is unclear whether that re-

presents new money, or the re-branding of

existing aid commitments, the amounts are

quite significant. Debt forgiveness or re-

negotiation of past debts by the post Arab

Spring governments should also be part of

any IMF/WB strategy to help the region.

E X C H A N G E: The Magazine for International Business and Diplomacy Analysis

Foreign direct investment in Egypt after the revolution:

Prospects and policy recommendations

Guoyong Liang

lobal flows of Foreign Direct In-

vestment (FDI) rose 5% to $1.2

trillion in 2010. For the first time,

developing and transition economies as a

whole absorbed more than half of the

world’s FDI. However, various developing

regions showed divergent performance:

East Asia, South-East Asia and Latin Ame-

rica experienced strong growth in inflows,

while those to Africa, South Asia and West

Asia continued to decline. As one of the

leading FDI recipients in its region, Egypt

saw FDI inflows slumped during and after

the revolution. Nevertheless, the long-term

prospects remain positive, and consider-

able opportunities exist both internally in

the post-Mubarak Egypt and externally in

the post-financial crisis global economy.

To seize these opportunities, substantial

policy reforms are needed.

FDI to Egypt: before and after the

revolution

Despite a slight decrease in FDI inflows,

Egypt ranked No.3 among all host coun-

tries in Middle East and North Africa in

2010 (figure 1). The country emerged as an

important FDI recipient in the mid-2000s:

inflows boomed during 2004-2006; and its

share in total inflows to Africa rose from

the annual average of 3% during 2001-

2003 to 22% in 2006 (figure 2). However,

FDI inflows have gradually declined since

then, in both absolute and relative terms.

A sudden shock is inevitable in 2011.

During the revolution, political turmoil

significantly affected foreign investors’

confidence and their motivation to invest

in Egypt; afterwards, instability continued

to deter investment. The high level of

perceived risks had a strong impact on

corporate strategies and practices – new

investments halted and divestments oc-

curred. As a result, FDI inflows to Egypt

turned negative in early 2011. According

to the Central Bank of Egypt, a total of US

$1.97 billion FDI fled out of Egypt during

the first quarter of 2011, leading to ne-

gative net inflows of US$163 million. This

is in sharp contrast to positive inflows of

US$656 million in the last quarter of 2010.

Medium-term prospects in FDI inflows

to Egypt are uncertain, depending on how

long the ongoing political transition will

last and when a functional democratic

institution will be established. Neverthe-

less, long-term prospects are still positive,

as economic fundamentals remain and the

general direction of political changes is

encouraging. More importantly, the revolu-

tion has provided an opportunity for re-

shaping the Egyptian economies system

and establishing a market-based, develop-

pment-oriented policy framework. As long

as the country regains its political stability,

reforms its economic system, and puts an

enabling investment climate in place, FDI

will come back in a big way.

A new approach to FDI is called for

Mubarak regime’s inability to provide

basic services and indifference to wide-

spread unemployment and persistent

poverty have led to the revolution. Today,

the old regime has been thrown away by

Egyptian people, but the economic, social

and political challenges remain intact;

some even become worse due to the short-

term shocks, such as that on the tourism

industry. Currently, there are diverging

views and hot debates on the economic

strategies that a new Egypt should adopt.

What is neglected, but I believe is impor-

tant above all is that Egypt needs a

developmental State, which can design and

implement a development strategy suitable

for the country. For decades, there were

too many internal and external constraints

for Egyptian people to choose such a

strategy. Now it is the time to do so.

G

34 www.ibde.org


Figure 1．Top five FDI recipients in Middle East and North Africa, 2010

(Billions of dollars)

- 5 10 15 20 25 30 35

Israel

Qatar

Egypt

Turkey

Saudi Arabia

2010

2009

Source: UNCTAD.

Figure 2． FDI inflows to Egypt, 2001-2010

(Billions of dollars and per cent)

0%

5%

10%

15%

20%

25%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

-

2

4

6

8

10

12

14

FDI inflows to Egypt Share of Egypt in Africa

Source: UNCTAD.

Concerning FDI, the new generation of

Egyptian policy makers should take the

opportunity to make changes happen. First,

they need to emphasize quality rather than

quantity in their future investment pro-

motion efforts, thinking about how to

attract “quality FDI”, leverage resources of

multinationals, and make their investments

create more jobs and contribute to income

growth and poverty reduction. Second,

they need to consider how to invest in

human resources and infrastructure, and

therefore enhance the location advantages

of Egypt to match the ownership advan-

tages of multinationals. Last but not least,

they need to devise a long-term strategy on

FDI in line with the country’s overall

approach to development. This long-term

strategy should be supplemented by short-

term tactics on how to target leading

investors, kick off pilot projects, enter

niche markets and upgrade afterwards.

Some lessons from Asia can be learnt.

Studies on the so-called “East-Asian

Miracle” demonstrates that, despite the

diversities, the economic success of Asian

tigers was largely driven by a develop-

pmental State that put development at the

centre of its policy agenda, collaborated

with the private sector, and supported its

expansion. The Asian experience also

shows that manufacturing is the key and

domestic productive capacities are crucial

for entering into a sustainable path of

inclusive growth and poverty alleviation.

FDI can play an important role in this

regard, as highlighted by the experience of

China and a number of South-East Asian

countries, such as Malaysia and Thailand.

Rebranding Egypt to seize new

opportunities

Against the backdrop of the financial

crisis, global economic landscape is being

reshaped. Massive off-shoring of manu-

facturing to East Asia slows down. Mean-

while, emerging economies have become

important international investors. Asian

countries like China now face rising

production costs and over-capacities in a

range of industries, and are in a process of

rapid industrial upgrading. As a result, the

relocation of productive capacities takes

place both within East Asia and beyond.

This provides opportunities for Egypt. For

example, a contract manufacturing project

run by such Asian companies as Foxconn

and Flextronics may employ tens of

thousands of workers. By attracting such

kind of investments, Egypt will be able to

relieve its pain of youth unemployment.

Large infrastructure projects can play the

same role, and foreign investment can also

be mobilized through various public-pri-

vate-partnership arrangements. For such

useful investments to gain momentum,

rebranding Egypt as an attractive location

and regional hub for FDI is a first step.

As young men on the streets move to

factories and construction fields, a major

demographic challenge to the Egyptian

economy, namely a surge in young un-

employed population, will be turned into

an advantage. Here, what makes difference

between an asset and a liability is a vision-

ary and effective policy. It is my sincere

hope that such a policy will be put in place

and help foster a democratic and prosper-

ous Egypt in the not too distant future.

(The views expressed in this article are

those of the author and do not necessarily

represent the views of, and should not be

attributed to, UNCTAD.)

www.ibde.org 35

E X C H A N G E: The Magazine for International Business and Diplomacy IBDE Events

Financial Markets: A Gateway to Balkans Prosperity

EU-Balkans Discussion Group – 5th Luncheon

Polish Embassy, London, 20 July 2011

The fifth working luncheon of the EU-Balkans Discussion Group

was hosted and chaired by Her Excellency Barbara Tuge –

Erecińska Ambassador of the Republic of Poland at the Polish

Embassy, London, on 20 July 2011, as a follow up of the fourth

meeting of 21 March 2011 hosted and chaired by the Hungarian

Embassy.

Regional economic and political cooperation and sustained foreign

direct investment, as noted by Ambassador Tuge-Erecińska, and

further elaborated by the IBDE Chief Executive, are necessary for

further integration of the local economies of the Western Balkans

into the European economic and political structures. In light of

this, Mr Peter Hayes, Head of Public Affairs of the London Stock

Exchange and Advisory Board member of IBDE was invited to

talk about how financial sector can promote public/private sector

development in South Eastern Europe and the role of Stock

Exchanges in facilitating the process.

The meeting noted that the Polish Presidency has put EU

Integration and the economic growth at the top of their agenda and

in this context Poland - with its vast experience on the subject of

EU integration – could be of great support and benefit to the

countries of the region in their path towards European integration.

The meeting took the opportunity to congratulate Croatia and

Hungary for concluding negotiations on the Accession Treaty for

Croatia.

Dr Peter Hayes, Head of Public Affairs of London Stock Exchange

and IBDE Advisory Board Member, noted that talking about

financial markets in the Balkans is particularly relevant because

the Balkans is a crossroad of cultures, civilizations, and it seems

that after years of struggle now is a time of opportunity for the

Balkans. In terms of foreign investment, equity investment seems

to be the most attractive opportunities from the London Stock

Exchange perspective. Particularly, at a time of turbulent financial

crisis, equity, according to Dr Hayes is more resilient than debt.

Dr Hayes noted that given the strategic location of the region, its

richness in natural resources including the energy potentials in

hydro-power, wind power and solo-power as well as potentials in

investing in infrastructure and tourism, the finance to further

develop such important sectors for the region has to come from

equity investors. According to him international financial markets

could also provide equity to enhance the economic development in

the region considering that there are numerous companies, some in

the public sector that will need to be modernised in order to

strengthen their activities in an ever-increasing competitive envi-

ronment. Therefore the London Stock Exchange perspective is that

the opportunities of using equity as a part of the privatisation

model – which can still allow some degree of control of the

national identity – could be the way forward.

The meeting also noted that some of the companies in the region

might have difficulties with listings on various exchanges. It was

also suggested that smaller family businesses and medium sized

companies from the UK/EU should be encouraged to explore the

opportunities in the region. The potential for investment in pension

funds, inward investment and the high quality of the labour

markets in the Balkans were raised too.

The meeting concluded that the raising of awareness of business

opportunities, visibility and points of perception (one of the

objectives of the EU-Balkans DG) together with the governmental

support in the region in providing a friendly and well regulated

business environment and the highest standards of corporate

behaviour, should allow the Western Balkans in partnership with

the international markets to unlock the potential and enhance the

economic development of the region.

The luncheon was attended by the Ambassadors and other senior

diplomats of EU-Balkans including Turkey, as well as directors

from FCO, UKTI, London Stock Exchange, HSBC, EBRD, DMA

...

The “EU-Balkans Discussion Group” meetings, as an initiative of

the IBDE - an NGO based in London, are designed to support and

promote regional cooperation and the socio-economic develop-

pment of South East Europe with the support of EU and Balkans

Embassies in the UK for the benefit, in particular, of the countries

of the Western Balkans and the EU. In this regard the project aims

to focus on regional cooperation, providing a regional approach for

trade and/or investment, in order to maximize its common regional

appeal to the wider multinational business community.

To register your interest please send your email, name, position

and affiliation at [email protected]

36 www.ibde.org

IBDE Events Exchange: Autumn 2011

EU-Balkans Discussion Group – 5th Luncheon - Polish Embassy – 20 July 2011

www.ibde.org 37

E X C H A N G E: The Magazine for International Business and Diplomacy IBDE Events

38 www.ibde.org

Project Finance considerations for infrastructure financing in

South Eastern Europe

EU-Balkans Discussion Group – 6th Luncheon German Embassy, London, 20 September 2011

Ambassador of the Federal Republic of Germany, His Excellency

Mr Georg Boomgaarden and the Chief Executive of IBDE, Mr

Rudi Guraziu, hosted a luncheon for the EU-Balkans Discussion

Group at the German Embassy on 20 September.

Forty participants from the diplomatic and business com-

munities listened to presentations by Ms Lin O'Grady from the

European Bank of Reconstruction and Development, Mr Carsten

Conrad from Tirana Business Park, and Mr Pierre Kahn from

Deutsche Bank, and engaged in a lively discussion about

opportunities for infrastructure development in South Eastern

Europe. The event was the sixth in a series organised by IBDE in

cooperation with the European Embassies.

The German Ambassador emphasised the strong support for the

European prospects of the region stating that after the horrors of

war witnessed in the Balkans during the 1990s it is encouraging to

see that today’s Balkans is viewed as a region of business op-

portunities and investment potentials. Following the welcoming

remarks by the Ambassador, Rudi Guraziu briefed participants on

the working of the Group noting that the EU-Balkans Discussion

Group luncheons which aim to strengthen regional cooperation as

well as to explore and evaluate the potential for public/private

sector investment in South East Europe, are also useful in

providing potential investors an opportunity to network with

likeminded business leaders from the region who are seeking

foreign capital. In this context, he expressed delight that one of the

speakers was already operating in the region and the meeting was

an excellent opportunity for the speaker to present his project

before participants.

Lin O’Grady - from the Municipal and Transport Team at EBRD

- outlined EBRD goals in supporting the development of the

market economies and democracies. Ms O’Grady noted that most

of the work of EBRD in the Balkans has tended to go to public

sector companies rather than the private sector, although the main

objectives of the bank are to support the growth of the private

sector. She outlined the criteria that the projects need to meet to

qualify for EBRD financing; i.e. a project must support sound

market economies and democracies; it inherently needs to support

the development of private sector (something very important to

EBRD) and it has to strengthen sustainability, because of the banks

environmental mandate. According to her since 1991 EBRD has

financed over 3100 projects - a total volume of 170 billion Euros.

In the transport sector typical projects are road rehabilitation/

reconstruction and railway renewal/refurbishment (bringing rail-

way companies within European norms). The bank on this date of

the meeting (20 September 2011) signed a loan of 100 million for

Macedonia to finance a key section of corridor 10 from Serbia,

Macedonia into Greece. In financing ports, rehabilitation is on-

going in Croatia and Montenegro, as well as the port of Durres in

Albania. Financing is also ongoing at airports in Montenegro and

Zagreb (Croatia). In the municipal sector EBRD works with the

European Union on co-financing, including the rehabilitation of

water and waste water systems. Public-Private-Partnerships come

into bank’s financing of urban transport systems, including

rehabilitation of roads. We also do financing of district heating

systems. In terms of the fund allocation, EBRD commits around

500 million Euros to this region each year, amounting to at least

about 5 significant projects.

Finally, Ms O’Grady added that a small amount of EBRD’s

portfolio is channelled into financing waste fields, including one in

Croatia.

Carsten Conrad - Tirana Business Park General Manager - spoke

about “Bridges between Infrastructure Development and Private

Foreign Direct Investment [PFDI]" and focused on: a)

Infrastructure essentials/necessities in order to attract PFDI (i.e.

road networks, airports, railways, public transport etc) b)

Infrastructure components (or the lack of it) which could be

subject to the PFDI in liaison with authorities (i.e. water treatment

plants, power distribution, IT supply etc) and c) Monetary impacts

on the PFDI and approaches to funding.

IBDE Events Exchange: Autumn 2011

www.ibde.org 39

Mr Conrad noted that the Lindner Group - a family-owned

Bavarian company that he represents had gained substantial

experience in the region through their completed projects in Sofia

when Bulgaria was in the process of EU accession 15 years ago

and their current involvement in Albania. As a serious investment

group, he noted that they are particularly focused in South Eastern

Europe, developing projects related to long term investments, a

belief by the Lindner Group in the positive prospects of the region.

Two years ago Lindner Group acquired 20000 square meters of

land very close to the airport in Tirana where there is an increasing

demand for office space, and where the company plans to deliver

the Tirana Business Park. This, he noted, covers a concept of

work-life balance to deliver office space of western European

standards at stable and competitive prices. As the General

Manager of Tirana Business Park, he emphasised that Albania

offers a young, vibrant and very educated population - a country

eager to attract foreign direct investments. Therefore, according to

him, despite some problems, it is very possible to see great

business possibilities in Albania and the region as a whole.

Pierre Khan - Deutsche Bank - added a keynote on the financing

of infrastructure, covering various sectors and the issues they share

in common: these assets tend to be very important to stabilise key

elements of the economy; money has to come up-front and over a

period of many years, be repaid and pay a dividend to investors.

He stated that heavy infrastructure investments are fundamental to

national economies and often tend to be regulated industries. As

such, they are very important to governments which have a

significant role in creating a supporting framework for those

assets. According to Mr Khan corporate finance is one way to

finance infrastructure projects, but often good assets have the

attractiveness to be financed on the public finance basis. They also

tend to be relatively complex, particularly in the case of large

projects and that means that they require the support structures.

There is also an element of evolving risk over the life of the

project, starting from the construction period, including design,

and technical risks. Once built, a different type of risk emerges:

operating the asset, maintaining that asset, effecting the revenues

you projected to get and the actual amount you get.

Mr Khan further noted that in project finance it is very

important to identify the risks and mitigate them. In terms of

general requirements for project finance, it is crucial to have

transparency in the system with a stable legal framework, contracts

and tax environment. And in the case of taxes, if they change, it

normally has an effect on the cash flow. One also needs func-

tioning and supportive institutions. These projects tend to take a

long time, sometimes over election cycles, and often political

priorities change. Therefore it is important that governments

provide a stable economic environment to get the long term

confidence of investors.

One of the issues raised at the meeting (by James Robin diplomatic

correspondent of BBC News) was the unfolding events in the Arab

Spring and whether this new environment could put the South

Eastern Europe at risk, considering that banks such as EBRD are

looking to explore the new business opportunities in these new

emerging democracies. Oleg Levitin from EBRD noted that while

it is true that EBRD is looking for ways to engage in the Middle

East and North Africa, because the bank feels they can play a

positive role in stabilising such important regions, the bank’s main

attention and focus nonetheless will remain Eastern Europe,

Caucasus and the Balkans. The meeting also noted that other

actors than EBRD play a major role in the overall development of

the region such as European Commission and European

Investment Bank. In this regard, the Western Balkans European

perspective is seen as the only serious incentive for the necessary

political and economic reforms in the region, and this is also the

strongest tool in making investment in the Western Balkans more

attractive to foreign investors with long-term investment strategy.

Finally the meeting discussed the ways that would make the

upcoming Western Balkans Investment Forum a success!

The luncheon was attended by the Ambassadors and other senior

diplomats of the EU-Balkans (including Turkey) Embassies plus,

FCO, EC Representation, City of London Corporation, HSBC,

London Stock Exchange, Visa Europe, EBRD, Ernst & Young,

ICC, BBC, Thomson Reuters, The Economist amongst others.

Attendance at events in this series is by invitation only. VIP

Luncheons are open to the Ambassadors of EU-Balkans (including

Turkey), EC, FCO, UKTI Directors and business leaders.

Invitations are extended to CEOs, CFOs, COOs, EDs, MDs,

DGs, senior board members, decision makers and strategists from

blue-chip companies interested in, or already investing in South

Eastern Europe.

To register your interest please send your name, position and

affiliation to [email protected]

Mr Carsten Conrad

E X C H A N G E: The Magazine for International Business and Diplomacy The Culture Exchange

The Culture Exchange sees in the 2011-12 London arts season a bill of fare to please the most discerning

international palette

Opening on November 4th at the

Theatre Royal Haymarket Robert

Lindsay and Joanna Lumley will

set the audiences roaring as Trevor

Nunn directs “The Lion in Winter”.

A family Christmas becomes a

family at war. Henry II, not so

young as he was, invites his

estranged wife Eleanor of

Aquitane, and his three sons,

Richard, Geoffrey and John, to

spend the festive season with him,

his mistress Princess Alais, and her

brother, the young King Philip of

France. Will Henry name who is to

be his successor as King of England? Their yuletide celebration

turns into a combat zone of deceit, betrayal, bitter power games

and scabrous wit.

"I am excited to be directing the London premiere of a famous

play about a power struggle full of sexual politics and political sex,

with two such brilliant actors as Robert Lindsay and Joanna

Lumley." - Trevor Nunn (www.trh.co.uk).

National Theatre will be staging a

unique event at its Lyttelton Theatre

starting in November - dramatic readings

of the King James Version of the Bible:

the New Testament. While the National

Theatre’s production of “War Horse”

(New London Theatre) continues to be

one of the best shows season after season,

this season’s massive hit “One Man, Two

Guv’nors” (based on the Goldoni

commedia classic) will transfer to the

Adelphi. (www.nationaltheatre. org.uk).

Old Vic Theatre presents one of

Ireland’s greatest playwrights, J.M.

Synge, in his masterpiece,

“Playboy of the Western World”,

until the end of November.

This savagely funny Irish classic

was first produced in 1907 and was

met with rioting and controversy

when it premiered, sending shock

waves across the dramatic world.

Set in a small village in the west coast

of County Mayo, The Playboy of

the Western World is a lyrical

comedy which tells the story of

lonely dreamer Christy Mahon

who wanders into a pub, claiming that he has killed his father.

Captivating the locals with his tale of bravery he becomes an

instant hero but it turns out that there's an unexpected twist in his

tale. (www.oldvictheatre.com)

In December Donmar

Warehouse brings a

Shakespearean blockbuster

to its intimate space:

“Richard II”, starring

Eddie Redmayne, the

young Tony Award winner

(Donmar’s Broadway

transfer of “Red”).

Anyone who was lucky

enough to have seen Sir

Derek Jacobi’s “King

Lear” last season will

know just what amazing

things the Donmar can do

with the immortal bard. (www.atgtickets.com/london)

The Royal Opera House will

wrap up the year with the

uplifting Wagnerian

masterpiece, “Die Meister

Singer von Nurnburg” in

November and December at

the opera. For those who

want a change from the

“Nutcracker” the Royal Ballet

will present a beautifully

balanced triple bill with

Ashton’s “Enigma Variations, Kenneth Macmillan’s wartime

setting of Poulenc’s “Gloria” and “Asphodel Meadows” which

won rising choreographic star Liam Scarlett the Classical

Choreography award 2010 from the Critic’s Circle national Dance

awards. (www.roh.org.uk) One Man, Two Guvnors, Photo credit: Johan Persson

40 www.ibde.org

The Culture Exchange Exchange: Autumn 2011

At the Coliseum the English National Opera will

bring “Der Rosenkavalier” to the festive table with

a giant of British opera, John Tomlinson, as Baron

Ochs. You can brush up your English as all ENO

productions are sung in translation. (www.eno.org)

Back at the Royal Opera House make a

note in the diary for March - a treasure

from Eastern Europe - Dvorak’s “Rusalka”.

And to lift the February gloom, another

icon of the British vocal tradition, Thomas

Allen, will take up one of his signature

roles, Don Alfonso, in Mozart’s “Cosi fan

Tutte”. Get set for lots of fun with those

handsome “Albanians” in this delicious

comedy masterpiece featuring some of

Mozart’s most luscious music.

Up at Sadler’s Wells Theatre

the major venue for cutting

edge dance, November 6-12

will feature the Cloud Gate

Dance Theatre of Taiwan - a

company which builds on the

greatest strengths of traditional

Chinese aesthetics in bringing

their own unique vision of

contemporary dance to the

stage. (www.sadlerswells.com)

On the classical music scene, the Wigmore Hall, one of London’s

architectural treasures, launches a year-long celebration of Ravel’s

creative life in music beginning with the Artemis Quartet on the

3rd of December. February 11th the doyenne of British sopranos,

Felicity Lott, is joined by the Nash ensemble for a program of

Wagner, Mozart and R Strauss. On 26th February the Chilingirian

Quartet presents Hayden, Ravel and Brahms in their 40th

anniversary concert while April brings the Tokyo String Quartet.

Mark your calendars for May 8th: the internationally renowned

pianist, Mitsuko Uchida will join forces with mezzo-soprano

Magdalena Kozena for Debussy and Messiaen.

(www.wigmore-hall.org.uk).

Elizabeth harrod in TheNutCracker Photo ROH, Johan Persson

Photo credit: Liu Chen-Hsiang

www.ibde.org 41

E X C H A N G E: The Magazine for International Business and Diplomacy Society

44 www.ibde.org

The Beravales’ garden party

Diplomats from various continents attended the Beravales’ annual summer champagne garden party at their residence in Woking.

Photographs by Roland Kemp

International Business and Diplomatic Exchange 1 Northumberland Avenue, Trafalgar Square, London, WC2N 5BW Registered in England as a non-profit company limited by guarantee Registration number 7181393

Tel: + 44 (0) 20 7193 1485 Fax: +44 (0) 20 3318 9199 Email: [email protected] Website: www.ibde.org

Thank you for your interest in the work of International Business and Diplomatic Exchange. As a not-for-profit organisation, IBDE is reliant on donations to meet its running costs and to fund its programme of activities. We therefore welcome your support, either generally, or for specific projects. Donations provide an important source of discretionary income for new research and other IBDE activities.

I would like to make a contribution of:

£100 £250 £500 £1,000 £5,000 Other: £______________

Title (Mr/Mrs/Dr): First Name: Surname:

Home Address:

Postcode:

Email: Phone: I would like my donation to remain anonymous

Payment Method:

I enclose my credit / debit card details below

Name (as it appears on debit/credit card)

Card Number:

Card Issuer: Issue Number:

Start Date: Expiry Date:

Security Code (on signature side of card):

I enclose a cheque (made payable to “International Business and Diplomatic Exchange”)

Please send this form to:

International Business and Diplomatic Exchange

1 Northumberland Avenue, Trafalgar Square, London, WC2N 5BW

Or email it at [email protected] or fax it to + 44 (0) 20 3318 9199

If you have any question please contact us at [email protected] or +44 (0) 20 7193 1485

Make a Donation


http://www.ibde.org/



the balkans poised for investment

in the energy sector

INTERNATIONAL BUSINESS AND DIPLOMATIC EXCHANGE – IBDE WWW.IBDE.ORG

exchange autumn isuue 2011

Documents

international business

business opportunities

diplomatic exchange

culture exchange

exchange interviews

preparation of exchange

business exclusive interview

middle east