Albania

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Bosnia Herzegovina
Armenia
Azerbaijan
Belarus
Albania
Bulgaria
Croatia
Kazakhstan
Georgia
Kyrgyzstan
Serbia Montenegro
Macedonia
Moldova
Romania
Russia
Tajikistan
Turkmenistan
Uzbekistan
Kosovo
Ukraine
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Investments
Competitiveness ?
Gauges the extent a firm, industry, region, or
country, can compete in the market
Competitiveness is a function of many things
some of which are directly within the control of
the firm and others which are not
Firm Controlled -product design
-management skill -production process -labor
productivity
Market Controlled -business environment
-value chain -physical infrastructure -trade
barriers
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Competitiveness is an essential element of
economic growth
Growth occurs at the level of firms
Competitiveness governs the ability of the firm
to make and sell more products
The more competitive the firm is, the more it
can sell, and therefore the more it can grow
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The various missions of EE have embraced
competitiveness projects as a way to encourage
Economic Growth
Related industries in similar regional
environments benefit from working together to
compete in larger markets
By working regionally to achieve common
objectives, the economies and industries within
the region compete more effectively for larger
world markets
Thus, EE created the Regional Competitiveness
Initiative to address these regional issues
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RCI started as a 27 month project funded out of
the Europe Eurasia Bureau
-RCI has targeted 3 industry sectors and two
cross-cutting themes to encourage economic
integration -The current funding ceiling for
this contract is 3,737,530 although it is
requested the ceiling amount be increased to
4,500,000 and the estimated completion date
extended by a year to maximize the benefits of
regional economic integration -The goal of RCI
is to encourage job expansion through
competitiveness, SME development, and economic
growth
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USAID EE
Rural Tourism
Agribusiness

• Core Management
• and Facilitation
• SEGURA/IP3
• BC SERDON

ICT
Regional Economic Integration
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Agribusiness ICT Tourism Econ.
Integration
Developing a Regional Supply Chain Connecting
Producers and Buyers
What weve done
Regional Agribusiness Meeting Tirana July 2005
Outlined the future RCI agribusiness
strategy High priority to develop regional
supply chain-linking producers to buyers
Regional Agriculture Buyers/Producers conference-
Belgrade Nov. 2005 First conference of its
kind attended by many buyers and producers Small
producers are only seasonal producers at
irregular intervals and lose the relationship
with buyers
For large international supermarket and hotel
chains, the solution is a critical mass efficient
logistics and a modern supply chain
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• Future Steps
• Supply chain management participant purchasing,
• warehousing, logistics, finance etc.
• Prepare supply chain business plan
• -value proposition
• -transaction efficiency/logistical efficiency
• -quality improvement, consumers satisfaction
• -management resources, revenue model etc.
• - Design software to incorporate every detail of
  the Supply
• Chain, its users and business processes
• Attract foreign investors to the regional supply
  chain
• Impacts

Farming in SEE

• Negotiated concrete deals between producers and
  buyers
• estimated value over 1 million Euros of new
  business

• Solutions to consolidation in agriculture
  industry through increased quality, lower product
  prices, and a wider diversity and reliability of
  suppliers

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Agribusiness ICT Tourism Econ.
Integration
Opening Online Marketplaces For Southeast Europe
How do you make ICT sector in the
SEE region more competitive? - Internet has
revolutionized the way people work online
freelance marketplaces offer a platform for
small/new entrepreneurs without boundaries
grassroots access to small projects 20,000 in
SEE - New Paths to Regional ICT Success
conference in Zagreb (May, 2006) explored
fast- growing online markets attended by
private enterprises, ICT associations, government
officials - Identified ways to spread skills
for entrepreneurs to find work in these markets
(co-sponsor with communities, universities, tech
parks developers)
What weve done
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Future Steps - Prepare an Orientation CD-ROM
about online markets, including guidelines for
freelancers and jobseekers (expected region-wide
circulation via university clubs, telecenters,
and ICT associations 1000 copies) - Organize
one-day workshops (including training guidebooks)
for entrepreneurs in three high-potential SEE
communities (30 entrepreneurs in each
community) - Analyze trends of success in
winning projects on Rentacoder.com or Elance.com,
distribute Tool Kits with success stories and
launch Exemplary Communities Initiativeto
extend training and advisory outreach to other
SEE communities Impacts 5000 annually
updated Orientation CDs are circulated in SEE
region new revenue stream from small projects
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Agribusiness ICT Tourism Econ.
Integration
Capability Model Maturity Integration
(CMMI) Five levels of training and certification
- CMMI is an integrated model for systems and
software engineering process improvement
people-process-technology at most efficient
level - CMMI in many cases is a prerequisite for
subcontracting with multinational corporations
(Siemens, Motorola, GM) - Completed awareness
campaign, field visits and training in countries
in SEE and Caucasus (Armenia, Bulgaria,
Macedonia, Romania, Serbia and Montenegro,
Ukraine) over 120 high and mid-level managers/93
organizations - Cost sharing concept RCI
covered only one-third (rest covered by SMEs and
business support organizations)
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Agribusiness ICT Tourism Econ.
Integration
Future Steps - Continue with CMMI training in
four countries (Armenia, Bulgaria, Macedonia,
Romania), and certification/appraisal in four
Bulgarian enterprises - Introduce an IT Mark
program and certification as a new assessment
service in seven SMEs a scaled-down version of
CMMI to address specific needs of the company and
to provide immediate benefits to the
SMEs Impacts Distinguish Southeast Europe as
a high-level software production destination
Keep companies highly competitive as
subcontractors Achieve a 50 increase in
productivity and significant reduction of time
for product development
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Agribusiness ICT Tourism Econ.
Integration
Developing and Promoting Regional Tourism and
Branding
What were doing
- Meet with Tourism Ministers and Directors of
the National Tourism Offices to discuss Discuss
the idea of regional branding, image building,
pros and cons, as it relates to tourism
Herzegovina
Croatia
Bosnia
- Get the comments and opinions of these
officials on how to define and promote a regional
tourism strategy
Montenegro
Kosovo
Serbia
Romania
Bulgaria
Macedonia
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Future Steps

• - Regional Routes Include monasteries, churches,
  local cuisine and crafts, hiking, wineries.
• - Develop and promote rural cultural heritage
• - Regional Branding Identify important cultural
  assets in each country and design specific
  cross-border itineraries.
• - Work with tour operators and travel agents.
• - Organize trade fairs and road shows.

Impacts
Realize benefits of tourism Jobs, foreign
exchange and investment
Women in traditional Bulgarian folk
costumes Dobrudza, Bulgaria
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Prospective Regional Tourism Route in SEE
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Prospective Regional Tour Route in SEE
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Regional Viniculture Industry Development Tours
October 2005
July 2006
Bringing wine journalist to the region to help
promote local wines and their export to world
markets
Impact

• Southeast European wines appeared in the Austrian
  daily newspaper,
• Der Standard

• The regions wines have been included in Hugh
  Johnsons Pocket Wine
• Book 2007

• An article describing the great wines in SEE was
  published in the specialized trade publication
  Vinaria

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Agribusiness ICT Tourism Econ.
Integration
Supporting Regional Economic Integration in SEE
and Central Asia
What were doing
-The countries of SEE have negotiated a free
trade agreement. RCI identifies needs and
provides training to customs, trade, and private
sector officials to improve the implementation
of the agreement
-RCI is preparing a meeting of "regional focal
appointees in November -RCI is working with
the Stability Pact in E-Government implementation
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Future Steps

• - Identify existing impediments to regional trade
  related to customs and border
• procedures

• - Identify priority areas of assistance not fully
  addressed by existing or planned
• customs improvement projects

• - A high level meeting sponsored by the
  U.S.-Central Asian Trade and
• Investment Framework Agreement (TIFA) will bring
  together senior level officials
• to review the results and develop an action plan

Impacts Reduce cross-border transaction costs
and promote transparent commercial environment by
streamlining customs procedures and encouraging
coordination among donors
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Potential Economic Impact of RCI Over the Life of
the Project

• Agribusiness
• Prospective Investment 10M
• Revenues local producers a) actual 1.3M b)
  20M potential
• IT
• Micro-enterprise Training est. 1000 people/ 2M
  in new revenue
• CMMI Training Certification
• 20 companies 1000 people
• 10 M in new revenue generation

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Potential Economic Impact of RCI Over the Life of
the Project

• Tourism
• Six regional routes 100 guest houses 50
  restaurants 50 attractions 10,000 tourists
  10M
• Regional Wine Industry new marginal sales TBD
• Economic Integration
• Vastly improved cross-border trade E-Government
  reduces bureaucracy - both greatly improve
  business environment and profitability

4M Project ? 40M Economic Benefits
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Supporting Linkages with the Europe Eurasia
Bureau USAID/Washington

• Partners for Financial Stability
• -PFS was a program in CEE where USAID had
  closed missions and
• ended assistance.
• -PFS provided an analysis of financial
  sector development working in
• collaboration with both the public and
  private sector. RCI commissioned
• a feasibility concentrating on 8 countries
  in Eurasia

• Center for Entrepreneurship and Executive
  Development

- CEED can support training and business
education of agriculture producers, i.e.
business planning, marketing, supply chain
management, etc.
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USAID EE
Rural Tourism
Agribusiness
Connecting Producers Buyers
Regional Branding

• Core Management
• and Facilitation
• SEGURA/IP3
• BC SERDON

Building Regional Supply Chain
Regional Routes
ICT
Regional Economic Integration
E-Govt.
CMMI Training
Working with the Stability Pact
Leveraging Online Marketplace
Central Asia
FTA
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RCI Activities Summary 2006-2008

• Design and develop a regional integrated supply
  
• chain and attract investors to accelerate
  market growth

? Pursue regional tourism goals by designing and
promoting regional travel routes

• Continue the CMMI and IT Mark training programs
  of software companies,
• ? Enable small entrepreneurs to seek jobs
  through the online marketplace

• Work with the Stability Pact and in Central Asia
  on
• regional economic integration

? Plan an investment forum for private investors
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Annual RCI Conference in Bucharest, November 1-3
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REGIONAL COMPETITIVENESS INITIATIVE (RCI)
REGIONAL COMPETITIVENESS INITIATIVE (RCI)
The Regional Competitiveness Initiative (RCI) is
funded out of the Europe Eurasia Bureau of
USAID USAID Technical Officer (COTR/CTO) Neal
Nathanson Implemented by SEGURA IP3 Partners
LLC Project Manager Mr. Paul Svab