WITH THE FINANCIAL SUPPORT OF THE

EUROPEAN UNION

SEE 2020 Sustainable growth workshopMonitoring

Sarajevo, Bosnia and Herzegovina19-20 Feb 2013

1

Monitoring of reforms in SEE

2

Greater time and staff commitment

2005 2006

4th SEE ministerial in Sofia, Bulgaria, 10 June

Ministers agree on the need for a regional framework for investment consistent with EU principles and inspired by the OECD Policy Framework for Investment.

4th SEE ministerial in Sofia, Bulgaria, 10 June

Ministers agree on the need for a regional framework for investment consistent with EU principles and inspired by the OECD Policy Framework for Investment.

5th SEE ministerial in Vienna, Austria on 27 June

Ministers endorse a “Regional framework on Investment”

Completion of first Investment Reform Index

5th SEE ministerial in Vienna, Austria on 27 June

Ministers endorse a “Regional framework on Investment”

Completion of first Investment Reform Index

2nd Investment Reform Index released

2nd Investment Reform Index released

2010 2011

6th SEE Ministerial

SEE 2020 Vision based on five pillars (integrated, smart, sustainable, inclusive and governance for growth

6th SEE Ministerial

SEE 2020 Vision based on five pillars (integrated, smart, sustainable, inclusive and governance for growth

2012

7th SEE Ministerial

Endorsement of SEE 2020 headline targets

7th SEE Ministerial

Endorsement of SEE 2020 headline targets

From the Regional Framework on Investment to SEE 2020

3

Regional Framework on

Investment•Investment Policy•Investment

Promotion and Facilitation

•Tax Policy•Anti-corruption and

Business Integrity•Competition Policy•Trade•Regulatory

Governance•Human Capital and

Employment•Corporate

Governance•SME Policy

Investment reform Index

•Investment Policy and Promotion

•Human Capital Development

•Trade Policy and Facilitation

•Access to Finance•Regulatory Reform

and Parliamentary Processes

•Tax Policy Analysis•Infrastructure for

Investment•SME Policy

SEE 2020

•IntegratedInvestment PolicyInvestment Promotion and FacilitationTrade Policy and Facilitation

•SmartHuman Capital DevelopmentInnovation

•SustainableCompetitionAccess to FinanceRegulatory Reform and Parliamentary

ProcessesTax Policy AnalysisInfrastructure for InvestmentSME Policy Energy and Climate change indicators from

Energy Community•Inclusive

tbd•Governance for growthAnti-corruption

IRI assessment methodology

4

1

Dimensions Sub-dimensions

1 Investment Policy and Promotion

-

1.1 FDI Policy

1.2 Investment Promotion and Facilitation

5.3 ACAAs

Sub-Dimensions Indicators

1.1 FDI Policy

1.1.8 Intellectual Property Rights

Indicators Level of Reform

1 2 3 4 5

Investment Reform Index 2010

Covering priority dimensions related

to the Regional Framework for Investment:

1. Investment Policy and Promotion

2. Human Capital Development

3. Trade Policy and Facilitation

4. Access to Finance

5. Regulatory Reform and Parliamentary Processes

6. Tax Policy Analysis

7. Infrastructure for Investment

8. SME Policy

- New areas -

Innovation Policy

Development of IP Laws

IRI assessment methodology – tripartite structure

5

Private Sector Independent experts

Government self-assessment

Illustration of a dimension with sub-dimensions and indicators

6

Investment Policy and Promotion

Example: Results of Investment Policy and Promotion assessment in IRI 2010

7

Example: Results of Investment Policy and Promotion assessment in IRI 2010

8

Main points for improvement• Land title registration and cadastre is slow• FDI Incentives on sub-national level need more clarity• One-stop shop for investors (IPAs to approve permits)• Legal frameworks for PPPs to be developed• Need to improve IP rights enforcement

Illustration of a collection of quantitative and qualitative indicators

9

Innovation Policy

Linkages between industry and academia

Enhance business innovation potential

Skills for Innovation

Secure a strong science and

technology base

Policy co-ordination

Quantitative indicators •Business enterprise expenditure on R&D•Expenditure on innovation, by firm size•Employer enterprise birth rate and death rate in the manufacturing and services sector •Venture capital investment•Patenting activity of firms •Direct and indirect government funding of business R&D and tax incentives for R&D•Firms receiving public support for innovation, by size•Firms' turnover from product innovation, by type• ICT investment by asset•Increase in the probability to innovate linked to ICT use

Qualitative indicators• Policies on R&D incentives• Quality of business support services• Policy support to clusters and networks• Evaluation of events (information and brokerage, matchmaking, competitions)• Technology watch service• Peer review processes• Regional investment promotion

SME Policy Index Methodology: Dimensions and sub-dimensions

1

Dimensions Sub- dimensions

6 Access to finance for SMEs

Sub

-

Dimensions

6.1 Sources of external finance for SMEs

6.2 Legal and regulatory framework

5.3 ACAAs

Sub- dimensions Indicators

6.1 Sources of external finance for SMEs

Indicators

6.1.1 Credit guarantee schemes

Indicators Level of Reform

Indicators

1 2 3 4 5

Credit guarantee schemes

Public start - up funding

Business angels network

SME Policy Index

Western Balkans and Turkey 2012

Covering priority dimensions related

to the Small Business Act for Europe:

1. Entrepreneurial learning and women’s entrepreneurship

2. Bankruptcy and second chance for SMEs

3. Regulatory framework for SME policy making

4. Operational environment for SMEs

5. SME support services and public

procurement

6. Access to finance for SMEs

7. Standards and technical standards

8. Enterprise skills and innovation

9. SMEs in a green economy

10. Internationalisation of SMEs

SME Policy Index Methodology: Indicators

Make public administrations responsive to SMEs’ needs

4.1 Issuing of company registration certificate

Ind

icato

rs

4.1.1 Number Of Days For Registration

How long does it take to register a SME?

4.1.2 Number Of Administrative Steps For Registration

How many administrative steps are required for SME registration? Is there a one-stop-shop?

4.1.3 Costs Connected With Registration

What are registration costs as a percentage of GNI per capita?

4.1.4

Minimum Capital Requirements What are minimum capital requirements as a percentage of GNI per capita?

4.1.5

Administrative Identification Numbers

Is there a unique identification number used in dealing with all standard functions of public administration?

EXAMPLE: Dimension 3Regulatory framework for SME policy making

COUNTRY SCORES-2012regional average