World Bank Group-OECD presentation on making investment climate reforms happen
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Transcript of World Bank Group-OECD presentation on making investment climate reforms happen
FROM INVESTMENT POLICY DESIGN TO IMPLEMENTATION:
MAKING INVESTMENT CLIMATE REFORMS HAPPEN
COLLABORATION BETWEEN
THE OECD AND WBG
April 20, 2015
Outline
I. OECD’s Investment Work
II. WBG Trade and Competitiveness Investment Policy & Promotion Work
III. OECD and WBG Collaboration
1
Outline
I. OECD’s Investment Work
II. WBG Trade and Competitiveness Investment Policy & Promotion Work
III. OECD and WBG Collaboration
2
Improving the Investment Climate – OECD Investment
Work
Policy Framework for Investment
Investment Policy Reviews
Regional cooperation on investment reform
• Southern African Development Community (SADC)
• Association of Southeast Asian Nations (ASEAN)
Sectoral work
• Policy Guidance for Investment in Clean Energy Infrastructure
• Private Participation on infrastructure investment
3
Horizontal issues
Investment policy
Investment promotion and
facilitation
Trade
Competition
Tax
Corporate governance
Policies for enabling
responsible business conduct
Developing human
resources for investment
Public governance
Infrastructure investment
Investment framework for green growth
Financing investment
A tool for investment climate reform taking into account
different dimensions of development
SocialEnvironmental
Economic
The 2015
Policy
Framework for
Investment
4
Our Objective – A Sound Enabling Environment for
Domestic and Foreign Investment
Mitigating
investor risk
A sound enabling environment
Integrated
frameworks
Participatory
approaches for
better policy
coherence
Full country-
ownership
Investment Policy Review: Recommendation
5
OECD Support to Investment Climate Reform
Toward Implementation
OECD assessment – Investment Policy Reviews
• Peer learning (regional, across regions, OECD
non-OECD)
• Translation of recommendations into operation
activities
• Measuring and Monitoring: Development of
indicators
=> Partnership with development partners to support and execute reforms
6
Outline
I. OECD’s Investment Work
II. WBG Trade and Competitiveness Investment Policy & Promotion Work
III. OECD and WBG Collaboration
7
Investment Policy and Promotion (IPP): Three Key Ideas
Investment policy is not about choosing between foreign and
domestic investment
It is about connecting them through global value chains. Trade and investment are
two sides of the same coin.
1
Foreign investment is not a transaction; it is a relationship
An investment policy strategy should not only pursue attraction, but also enable the
establishment, retention and linkages with the domestic productive sector, thereby
maximizing benefits from investment.
2
Not all types of investment are the same
Different types of investment have different effects on socio-economic development
and thus require different policies. Countries should align the type of investment with
different policies
3
8
Investment Cycle
Vision and Strategy
Investment AttractionLinkages
Investment Entry &
EstablishmentRetaining Investment
• Investment promotion
• Locational incentives
• Eliminating barriers to FDI
• Streamlining entry procedures
• Elimination of performance requirement
• Opening FDI in services
• Behavioral incentives
• Non-equity modes of investment (NEM)
• Upgrading investment protection guarantees
• Mechanizing investment retention and confidence
• Improving investment aftercare
9
Different Types of Investment Lead to Different Socio-
Economic Impacts and Different Patterns of Trade…
Natural resource-seeking
Market-seeking
Efficiency-seeking
Strategic-asset
seeking
9
Assistance Delivery Model
Outcomes
• Updating regulatory
frameworks
• Streamlining
administrative and
regulatory frameworks
• Developing systems that
foster transparency and
predictability.
• Incorporation of new
technologies to improve
government delivery of
services
Activities
• Assisting governments
in identifying and
prioritizing investment
policy and promotion
measures
• Concrete
recommendations
• Supervision/implement
ation support
Impacts
• Increase in generation
of domestic and
foreign investment
• Increase in investment
retained
• Cost savings for
investors and host
countries resulting
from reforms
• Greater regulatory
transparency and
strengthening of rule of
law
10
Our mission is to catalyze investment climate reforms that foster business competitiveness, connect firms to global markets, maximize the benefits of private investment, and create jobs.
WBG Instruments of Support
• Developing FDI strategy
• Reducing investment restrictions, barriers and procedures
• Investment promotion/facilitation
• Improving effectiveness of investment incentives
• Strengthening investor protection and aftercare to help retain and expand FDI
• Maximizing linkages and positive spillovers to local economy
• Promoting freer regional investment flows
• Implementation of international agreements to improve investment climate
Technical Assistance
• Investment Reform Map:
Providing a logical framework
enabling clients to visualize the
different types of FDI and
setting priorities to design
coherent and concrete
investment policy and
promotion reform agendas
• Rapid IC Advisory: Supporting
IC reforms leveraging
benchmarks and indicators
Doing Business
FDI regulations
Investor motivation surveys
World Investment and
Political Risk Indicators
Enterprise surveys
Diagnostics
• Mozambique Competitiveness and PSD Project ($25million):
Focusing on business environment/investment climate reforms, SME matching grant facility, training institutes capacity, etc.
IC TA program to government for the design and implementation of licensing reforms in key sectors (industry and commerce).
• Ethiopia ($250million):
Contributing to job creation by attracting investments and improving enterprise competitiveness in the target industrial zones and linked domestic enterprises.
Lending
(Development Policy Operations and Investment Lending)
11
Global Presence (in over 60 countries)
Africa ECA MNA EAP SA LAC
Current • Guinea• East Africa
(multiple countries)
• Ethiopia• Kenya• South Sudan• Regional
Program for West Africa (multiplecountries)
• EquatorialGuinea
• Armenia• Albania• Belarus• Bosnia and
Herzegovina• Georgia• Kosovo• Kazakhstan• Kyrgyzstan• Tajikistan• Turkey • Turkmenistan
• Egypt• Jordan• Kingdom of
Saudi Arabia• Kuwait• Oman• Tunisia• Morocco
• Cambodia• Mongolia• Myanmar• Pacific Islands
• Bangladesh• Pakistan• Nepal• India• Bhutan
• DominicanRepublic
• Mexico• Colombia• Bolivia• Brazil• El Salvador
Pipeline • Croatia• Moldova• Western
Balkans (multiple countries)
• Romania
• Egypt • Timor Leste• Laos
• Iraq • Peru• Paraguay• Mexico• Colombia
12
Outline
I. OECD’s Investment Work
II. WBG Trade and Competitiveness Investment Policy & Promotion Work
III. OECD and WBG Collaboration
13
OECD and World Bank Collaboration
Interaction and information sharing on each other’s activities:
• PFI taskforce: IPP team collaborates and contributes to the PFI update
• WBG Investment Climate Advisory Group: OECD investment team invited to join
Technical assistance to countries:
Coordination between PFI and T&C IPP Reform Work in various countries:
• ASEAN: Myanmar, Cambodia, Laos
• MENA: Tunisia, Jordan and Egypt
Thought leadership:
Joint exploration and discussion of cutting-edge issues on investment climate-related
issues
Policy advocacy:
Organization and participation in events to promote greater engagement with investment
stakeholders
14
Examples: OECD - World Bank Group Cooperation in
Myanmar
• OECD introduces Myanmar investment climate counterparts to WBG
• WBG participation in assessment, task force meetings
• WBG participation in public launching of the IPR of Myanmar
Myanmar IPR
• WBG formulation of a technical assistance programme based on the IPR recommendations and previous cooperation
Identification of areas of
implementation• Roll-out of WBG
and implemented country programme
• OECD contributes to specific elements of the programme
Program implementation
Work starting in Lao PDR and Cambodia in 2015
15
Examples: OECD - World Bank Group Cooperation in
Tunisia
• The WBG had ongoing projects on investment climate:
• Support on a new investment law according to good practices
• Transparency and inventory of investment incentives
• OECD also had capacity building initiatives in the country
Engagement
• Both institutions shared views/comments/updates on the process to modernize investment legal framework.
• OECD & WBG joint work on institutional mapping and design of institutional coordination framework for investment policy and promotion
Diagnostic
• WBG: New investment law
• OECD & WBG: Institutional coordination mechanism for IPP
Program implementation
16
Looking Forward
17
Creating an international platform on Investment for Development
• Post-2015 agenda – aid alone does not suffice
Roundtable on implementing policy reform for investment
• Convened by the WBG, the OECD, in conjunction with other
international organizations (October 2015)