Title: PROGRESS IN INVESTMENT REFORM INVESTMENT REFORM INDEX
1Preliminary Results
PROGRESS IN INVESTMENT REFORMINVESTMENT REFORM
INDEX
12 May 2006 Investment Compact Project Team
Meeting Rome, Italy
2Agenda
- Overview of Investment Reform Index
- Progress in Investment Reform in SEE
Preliminary Results - Summary of Good Practice in SEE and CEE
- Summary of Country Priorities for 2006-2007
(Investment Compact View) - Next Steps and Key Events
3Overview of Investment Reform Index
4Overview of Investment Reform Index
The Investment Reform Index and the Investment
Compact
Focus of Investment Compact Program
A. Enterprise and SME Development
B. Policy and Promotion Specific to FDI
Investment Reform Index Enterprise Policy
Performance Assessment (EPPA) Peer Review
1. Monitoring and Evaluation
Country Investment Policy Analysis and
Implementation
Investor Forum Sector Specific Regional
Investment Promotion
Enterprise Forum
2. Implemen-tation Support
4 Areas
Structured Public/Private Debate
Regional Foreign Investors Council, White Book
and Reality Checks
Enterprise Policy Performance Assessment
3. Private Sector Support
Annual Ministerial for SEE Region Programme for
Parliamentary Support
4. Political Support
5Overview of Investment Reform Index
The IRI is guided by four key objectives
Regional Collab-oration and Peer Review
Targeted Support in Imple-mentation
Public and Private Sector Involvement
Structured Evaluation
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6Overview of Investment Reform Index
The IRI measures implementation of reform in 10
key dimensions
Main focus of evaluation in 2006
Part of a separate process conducted in
cooperation with the EC in the framework of the
European Charter for Small Enterprises
7Overview of Investment Reform Index
Each dimension is broken down into main
sub-dimensions Example Tax Policy
8Overview of Investment Reform Index
Each sub-dimension is broken down into core
indicators Example Tax Policy ? Tax
Administration
9Overview of Investment Reform Index
Each indicator is broken down into levels of
reform Example Tax Policy ? Tax Administration
Note This table has been simplified for
presentation purposes each level of reform is
fully detailed in the actual IRI.
10Overview of Investment Reform Index
Gathering information for scores will follow a
specific process Example Anti-Corruption
CET
Investment Compact
Private Sector
11Overview of Investment Reform Index
The Investment Reform Index is organised to
involve all levels in the evaluation and input
process
- IC Core Team collects data and interviews OECD
Experts to establish a preliminary level of
progress for each country in each policy
dimension - Local consultants build from the first
measurement by collecting primary data in the
countries and conducting interviews with local
experts. The results analysed by the IC Core Team
and incorporated into the level of progress - The Private Sector and the Country Economic Team
evaluate the latest measure. This provides an
opportunity to step back and analyse the
measurements in a broader context. After
consultation mechanisms are complete, all parties
confirm a final measurement, which is published
Local Consultants Country Economic Team
IC Core Team
Private Sector
OECD Experts Local Experts
12Overview of Investment Reform Index
How the IRI is different from other indices
The OECD Investment Compact IRI relative to other
indices from international organisations
- Main Differentiating factors of the IRI
- Focus on a very specific region where history,
culture and geography allow for more relevant
benchmarking between countries. - Tripartite participatory approach to evaluation
and measurement including government, private
sector, and the OECD. - Comprehensive evaluation of the investment
environment structured along ten key dimensions
in line with OECD standards. - Does not only measure but also provides guidance
on how to improve through good practices. - Meta Index which incorporates existing work
already conducted by other organisations (e.g.,
World Banks Doing Business report).
Process
13Progress in Investment Reform in SEE
Preliminary Results
141. Investment Policy
Progress in Investment Reform in SEE
Preliminary Results
151. Investment Promotion
Progress in Investment Reform in SEE
Preliminary Results
161. Investment Policy
Progress in Investment Reform in SEE
Preliminary Results
Bulgaria, Romania
Albania, Montenegro, Moldova
Croatia
FYRoM, Serbia
Bulgaria, Romania, Croatia
Albania, FYRoM, Moldova, Montenegro
Serbia
Albania, FYROM, Montenegro
Bulgaria, Romania
Croatia, Serbia
Moldova
171. Investment Promotion
Progress in Investment Reform in SEE
Preliminary Results
Albania, Croatia, Moldova, Montenegro
Bulgaria
Romania
Serbia
FYRoM
Albania, Croatia, FYRoM, Moldova
Bulgaria
Romania, Serbia
Montenegro
Albania, Croatia, FYRoM, Moldova, Romania Serbia
Bulgaria
Montenegro
Albania, Romania, Serbia
Bulgaria
FYRoM, Montenegro
Croatia, Moldova
182. Tax Policy
Progress in Investment Reform in SEE
Preliminary Results
192. Tax Policy
Progress in Investment Reform in SEE
Preliminary Results
202. Tax Policy
Progress in Investment Reform in SEE
Preliminary Results
212. Tax Policy
Progress in Investment Reform in SEE
Preliminary Results
222. Tax Policy
Progress in Investment Reform in SEE
Preliminary Results
Albania, Croatia, FYRoM, Serbia, Montenegro,
Moldova
Bulgaria, Romania
Albania, Croatia
Bulgaria, FYRoM, Romania, Serbia, Montenegro,
Moldova
Bulgaria, Romania
Croatia, FYRoM, Serbia
Albania, Moldova, Montenegro
Albania, Moldova, Romania, Serbia, Montenegro
Bulgaria, Croatia, FYRoM
232. Tax Policy
Progress in Investment Reform in SEE
Preliminary Results
Albania, Moldova, Montenegro
Croatia, FYRoM, Serbia
Bulgaria, Romania
Albania, FYRoM, Moldova, Montenegro
Croatia, Romania, Serbia
Bulgaria
Albania, Moldova, Montenegro
Romania, Croatia
Bulgaria
FYRoM, Serbia
243. Anti-Corruption Policy
Progress in Investment Reform in SEE
Preliminary Results
253. Anti-Corruption Policy
Progress in Investment Reform in SEE
Preliminary Results
263. Anti-Corruption Policy
Progress in Investment Reform in SEE
Preliminary Results
Moldova
Croatia, Romania
FYRoM, Montenegro, Serbia
Albania, Bulgaria
Albania, Montenegro, Serbia
Bulgaria, FYRoM
Croatia, Moldova
Romania
Albania, Croatia, Moldova
Romania
Bulgaria
FYRoM, Montenegro, Serbia
273. Anti-Corruption Policy
Progress in Investment Reform in SEE
Preliminary Results
Serbia
Bulgaria
Albania, Montenegro
Moldova, Romania
Croatia, FYRoM
Albania, Montenegro, Serbia
Bulgaria
Croatia, FYRoM, Moldova
Romania
284. Competition Policy
Progress in Investment Reform in SEE
Preliminary Results
294. Competition Policy
Progress in Investment Reform in SEE
Preliminary Results
304. Competition Policy
Progress in Investment Reform in SEE
Preliminary Results
Serbia
Bulgaria, Romania
Croatia
Moldova, Montenegro
Albania, FYRoM
Albania, Croatia, FYRoM Montenegro, Serbia
Romania
Bulgaria
Moldova
Albania, Croatia, FYRoM, Serbia
Bulgaria, Romania
Montenegro
Moldova
314. Competition Policy
Progress in Investment Reform in SEE
Preliminary Results
Albania, Croatia, FYRoM
Moldova, Montenegro, Serbia
Bulgaria, Romania
Romania
Moldova, Montenegro, Serbia
Croatia, FYRoM
Bulgaria
Albania
Moldova, Montenegro
Bulgaria, Romania
Albania, Croatia, FYRoM Serbia
325. Trade Policy
Dimension specific results
335. Trade Policy
Progress in Investment Reform in SEE
Preliminary Results
345. Trade Policy
Progress in Investment Reform in SEE
Preliminary Results
355. Trade Policy
Progress in Investment Reform in SEE
Preliminary Results
Albania Croatia FYRoM Serbia
Bulgaria, Romania
Moldova Montenegro
Albania, Moldova
Bulgaria, FYRoM, Romania, Croatia
Montenegro, Serbia
Albania, Romania, Serbia
Bulgaria, Croatia, Moldova
FYRoM Montenegro
Serbia
Croatia
Bulgaria Moldova Montenegro
Albania, Macedonia Romania
365. Trade Policy
Progress in Investment Reform in SEE
Preliminary Results
Montenegro
Bulgaria
Albania, Croatia FYRoM, Moldova, Romania Serbia
Bulgaria, Romania
FYRoM
Croatia
Albania, Moldova Montenegro Serbia
Albania, Croatia, Romania FYRoM
Bulgaria, Montenegro
Serbia
Moldova
Romania, Bulgaria
Albania, Croatia, FYRoM, Moldova
Serbia, Montenegro
376. Regulatory Reform
Progress in Investment Reform in SEE
Preliminary Results
386. Regulatory Reform
Progress in Investment Reform in SEE
Preliminary Results
396. Regulatory Reform
Progress in Investment Reform in SEE
Preliminary Results
Montenegro
Romania
Albania, Croatia, Moldova, Serbia
Bulgaria
Romania
Albania, Croatia, FYRoM, Moldova
Montenegro
Bugaria, Serbia
Montenegro
Serbia
Albania, Croatia, FYRoM
Bulgaria, Moldova, Romania
Croatia, FYRoM, Moldova
Albania
Bulgaria
Serbia
Montenegro
Romania
406. Regulatory Reform
Progress in Investment Reform in SEE
Preliminary Results
Albania Croatia FYRoM Moldova
Bulgaria, Montenegro
Romania
Serbia
Montenegro
Romania, Serbia
Albania, Croatia, FYRoM
Bulgaria, Moldova
417. Human Capital
Progress in Investment Reform in SEE
Preliminary Results
427. Human Capital
Progress in Investment Reform in SEE
Preliminary Results
437. Human Capital
Progress in Investment Reform in SEE
Preliminary Results
Albania, FYRoM, Moldova, Montenegro
Bulgaria, Croatia
Romania, Serbia
Albania, FYRoM, Moldova, Montenegro
Romania
Bulgaria
Serbia
Croatia
Albania, Serbia
Bulgaria Montenegro Romania
Croatia, FYRoM
Moldova
447. Human Capital
Progress in Investment Reform in SEE
Preliminary Results
Albania, Moldova
Croatia, Montenegro Romania, Serbia
Bulgaria
FYRoM
Montenegro
Moldova
Albania, FYRoM, Serbia
Bulgaria, Romania, Croatia
45Summary of Good Practice in SEE and CEE
46Summary of Good Practice in SEE and CEE
Preliminary Examples of Good Practice related to
the IRI Dimensions
47Summary of Good Practice in SEE and CEE
Preliminary Examples of Good Practice related to
the IRI Dimensions (2)
48Summary of Good Practice in SEE and CEE
Preliminary Examples of Good Practice related to
the IRI Dimensions (3)
49Summary of Country Priorities for 2006-2007
(Investment Compact View)
50Albania
Summary of Country Priorities for 2006-2007
(Investment Compact View)
- OECD IC Recommended Country Priorities
- Tax Ensure that VAT reimbursement is
systematically monitored. The VAT is reimbursed
within 30 days, which is mandated by law. - Tax Change the tax regulation stating that
start-ups must pay taxes on estimated profits
before beginning operations. - Investment Promotion Create a new strategy for
the National Business Agency, following the
merger of the investment promotion and SME
agencies. - Regulatory Reform Implement the programme for
regulatory reform to create the basis for RIA. - Anti-corruption Develop and implement a new
anti-corruption action plan with clear time bound
targets and success indicators. - Human Capital Finish drafting, adopt and
implement the employment strategy, ensuring that
it is in line with the principles of the European
Employment Strategy.
51Bulgaria
Summary of Country Priorities for 2006-2007
(Investment Compact View)
- OECD IC Recommended Country Priorities
- Investment Promotion Reinforce the cluster
approach in investment promotion to further
promote linkages between foreign investors and
SMEs. - Tax Create an overarching tax strategy
specifying the principles and economic goals of
taxation, current and future tax rates, and
improvement of the tax administration. - Anti-corruption Create a coherent, comprehensive
Conflict of Interest Policy and ensure that it is
applied and monitored. - Competition Implement a deterrent sanctioning
policy to limit hard-core anticompetitive
behaviour (e.g. cartels). - Trade Streamline customs and administrative
procedures to decrease the complexity and time
required for imports and exports. - Regulatory Reform Define and implement a
comprehensive regulatory reform strategy which
includes a formal, systematic RIA programme.
52Croatia
Summary of Country Priorities for 2006-2007
(Investment Compact View)
- OECD IC Recommended Country Priorities
- Competition Reinforce the Competition Authority
by allowing it to issue fines. - Investment Promotion Develop an Investment
Promotion Strategy that is closely tied to the
overall development strategy. - Tax Closely monitor the activity of the newly
established Financial Police in order to avoid
overlapping responsibilities with tax
administration auditors. - Regulatory Reform Develop and implement a
comprehensive RIA programme. - Anti-corruption Develop an action plan for
customs reform and put in place a system based on
indicators to monitor implementation. - Human Capital Adopt the new Law on Education
with particular focus on adult education.
53FYR Macedonia
Summary of Country Priorities for 2006-2007
(Investment Compact View)
- OECD IC Recommended Country Priorities
- Investment Promotion Adopt an investment
promotion strategy that reflects government and
private sector consensus on the countrys
investment promotion activities. - Regulatory Reform Create a comprehensive
regulatory reform policy and strategy
incorporating a RIA programme which
systematically evaluates new legislation. - Tax Ensure that VAT reimbursement is
systematically monitored and that VAT is
reimbursed within 30 days, as stated in the law. - Competition Strengthen the competition authority
powers to impose sanctions. - Human Capital Reduce the wage wedge, which is
one of the highest in the region. - Human Capital Develop and implement a
comprehensive workforce skills development
strategy. (TBC)
54Moldova
Summary of Country Priorities for 2006-2007
(Investment Compact View)
- OECD IC Recommended Country Priorities
- Competition Set up an independent National
Competition Protection Authority with adequate
budget and staff to carry out investigations and
impose remedies and sanctions. - Investment Promotion Define and implement a
comprehensive investment promotion strategy,
working closely with the Swiss funded OECD
Investment Compact project in this area. - Tax Implement a Code of Ethics for tax
inspectors and a monitoring system to ensure
regulations are enforced. - Anti-corruption Implement an enforcement law
requiring officials to declare assets. - Regulatory Reform Following an effective
guillotine approach on legislation, define and
implement a comprehensive, multi-year regulatory
reform strategy. - Human Capital Develop a comprehensive strategy
to improve adult and vocational education.
55Romania
Summary of Country Priorities for 2006-2007
(Investment Compact View)
- OECD IC Recommended Country Priorities
- Investment Promotion Elaborate a comprehensive
Investment promotion Strategy that includes
priority sectors and concrete programs to tie
foreign investment to local investment (SMEs).
This IP Strategy should also be clearly linked to
the industrial and export promotion strategies - Investment Promotion Strengthen the investment
Promotion Agency with additional staff and budget
(aim to double budget from 500,000 Eur to 1
Million Eur and increase staff to 40 from 19).
The agency should intensify promotion to
potential foreign investors through
country/specific missions and offer clear and
well-packaged on the ground services for
potential and existing investors. - Implement transparent and consistent standards
for tax inspectors to impose sanctions and
monitor the results with pre-defined indicators
to reduce discretionary power. - Regulatory Reform Introduce Regulatory Impact
Analysis for all newly adopted legislation. - Anti-corruption Introduce a system with
indicators to monitor implementation of the
public procurement law. This system can then be
used as basis to monitor other area of
anti-corruption (such as customs reform,
professionalism of civil service). - Human Capital Adapt the education strategy
(including vocational training and adult
learning) to reflect the specific needs of the
labour market over the next ten years.
56Serbia
Summary of Country Priorities for 2006-2007
(Investment Compact View)
- OECD IC Recommended Country Priorities
- Competition Establish a Competition Authority to
enforce the law by carrying out investigations
and imposing remedies and sanctions. - Investment Policy Allow foreign and local
investors to own all types of land (e.g. urban
construction land). - Anti-corruption Create a comprehensive customs
anti-corruption Action Plan and system to monitor
implementation. - Anti-corruption Apply the law on public
procurement and introduce a system to monitor
implementation. - Tax Enforce law to reimburse VAT within 30 days
and with effective monitoring and application of
sanctions. - Human Capital Develop specific strategies for
adult and vocational education.
57Montenegro
Summary of Country Priorities for 2006-2007
(Investment Compact View)
- OECD IC Recommended Country Priorities
- Investment Promotion Define and adopt an
investment promotion strategy that reflects
government and private sector consensus on the
investment promotion priorities. - Competition Adopt a competition strategy that
includes appointing an independent competition
authority with power to investigate
anti-competition behaviour and impose sanctions - Anti-corruption Adopt the new draft law on
public procurement and enforce effective
implementation timetable. - Regulatory Reform Define and implement a
long-term regulatory reform strategy and
implement a RIA programme for all newly adopted
legislation. - Tax Ensure Tax Administration Inspectors are
based on clear monitoring indicators (e.g. filing
of returns) instead of discretionary behaviour
encouraged by needing to meet budget estimates - Trade Ensure alignment of technical standards
with EC standards
58Next Steps and Key Events
592005-2006 Key Events for the Investment Reform
Index
Next Steps and Key Events
60Preliminary Results
- All of the results are preliminary.
- Results will be finalised in July 2006.
- For any comments or questions please contact
Georgiana Pop (georgiana.pop_at_oecd.org) Erin
Hengel (erin.hengel_at_oecd.org)