Investment challanges of Montenegro First Plenary Session Investment Policy and Infrastructure...

First Plenary SessionInvestment Policy and Infrastructure Projects

Investment challanges of Investment challanges of Montenegro Montenegro

Budva, Montenegro, April 14th 2008

Vujica Lazovic, PhD

Deputy Prime Minister for Economic PolicyGovernment of Montenegro

5th VIENNA ECONOMIC FORUM

»I believe that each mean which foster communication has strong effects in sense that people can learn from each other and achieve

freedom they are aiming« Bill Gates

Vujica Lazović PhD, Deputy Prime Minister for Economic Policy, Government of MontenegroInvestment Challlanges of Montenegro - 5th Vienna Economic Forum , Budva, 14 th April 2008

Welcome to Montenegro to Vienna Economic Forum!

Montenegro is a success story. The following data confirm this:◦Real GDP growth over 7%◦Unemployment rate about 11% ◦Inflation close to euro-zone level◦Foreign public debt 21% of GDP ◦FDI 1600€ per capita◦Credit rating BB+ ◦Stabilization and Association Agreement.

Vujica Lazović PhD, Deputy Prime Minister for Economic Policy, Government of MontenegroInvestment Challenges of Montenegro - 5th Vienna Economic Forum , Budva, 14 th April 2008

Success starts with vision, ideas, ability to realize them, political wisdom which Montenegro recognized through:

◦Stimulating investment environment ◦Strong will to regain independence ◦Membership in EU

Vujica Lazović PhD, Deputy Prime Minister for Economic Policy, Government of MontenegroInvestment Challenges of Montenegro - 5 th Vienna Economic Forum , Budva, 14 th April 2008

We realized on time that natural beauty of our country is not enough. To

construct competitive and stimulating institutional framework is real

challenge.


Process has started by reforms:◦euro as official currency ◦stimulating tax policy ◦ liberalized prices ◦free flow of capital ◦privatization of 85% state property ◦activating of capital market ◦privatized banking sector ◦reformed education system, social insurance and labor market


Time is element Time is element which is reality which is reality nevertheless nevertheless success or failure!success or failure!


Development brings new challenges and responsibilities:

COMPETITIVENESS COMPETITIVENESS INFRASTRUCTUREINFRASTRUCTURE

STRUCTURAL UNEMPLOYMENT STRUCTURAL UNEMPLOYMENT REGIONAL DEVELOPMENTREGIONAL DEVELOPMENT


Challenge 1: CompetitivenessInstitutional framework – prior comparative advantage

Further decrease of tax rates Eliminating the business barriers


Challenge 2: InfrastructureTourism and development in general impose new

infrastructural solutions

Own energy sources Highways Regional water supply pipeline Treatment of solid waste and waste water


Challenge 3: Structural unemployment»Generation« confronting of global trends to old system of

education

Human resources are the most important value of Montenegro Reforms aiming at increase of education system and labor market flexibility


Challenge 4: Regional developmentUndeveloped North vs. developed South

Young people and investors will be motivated to become actors of Northern Montenegro development by… ...Eligible investment conditions Construction of infrastructure Opening of university units which

will decrease the differences


OUR OUR

APPROACH?APPROACH?

Use own potential and think within

global processes as a

necessity in development

process.

»People always overestimate changes which will takes place in the next two years and underestimate those to happen in ten years. Therefore, let do not

allow to be silenced in inaction«, Bill Gates

Montenegro has started new cycle of

activities by new investments in high-end tourism through valorization of attractive

tourism locations Vujica Lazović PhD, Deputy Prime Minister for Economic Policy, Government of MontenegroInvestment Challenges of Montenegro - 5 th Vienna Economic Forum , Budva, 14 th April 2008

I am convinced that, upon realization of these projects,

Montenegro will have the highest economy growth rate in the highest economy growth rate in the

region!region!


I wish you pleasant stay in Montenegro!


Investment challanges of Montenegro First Plenary Session Investment Policy and Infrastructure...

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