SEE 2020 Sustainable growth workshop Monitoring

1. SEE 2020 Sustainable growth workshopMonitoring Sarajevo, Bosnia and Herzegovina 19-20 Feb 2013

2. Monitoring of reforms in SEE 2010 2005 2006 2011 2012 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 2nd Investment Reform Index released 6th SEE Ministerial SEE 2020 Vision based on five pillars (integrated, smart, sustainable, inclusive and governance for growth 7th SEE Ministerial Endorsement of SEE 2020 headline targets Greater time and staff commitment

3. From the Regional Framework on Investment to SEE 2020 Regional Framework on Investment Investment reform Index SEE 2020 • 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 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 • Integrated • Investment Policy • Investment Promotion and Facilitation • Trade Policy and Facilitation • Smart • Human Capital Development • Innovation • Sustainable • Competition • Access to Finance • Regulatory Reform and Parliamentary Processes • Tax Policy Analysis • Infrastructure for Investment • SME Policy • Energy and Climate change indicators from Energy Community • Inclusive • tbd • Governance for growth • Anti-corruption

4. IRI assessment methodology Dimensions Sub-dimensions Investment Reform Index 2010 1 Investment Policy and Promotion 1.1 FDI Policy Covering priority dimensions related to the Regional Framework for Investment : 1.2 Investment Promotion and Facilitation - 1. Investment Policy and Promotion Sub - Dimensions Indicators Human Capital Development 2. 1.1 FDI Policy 5.3 ACAAs 3. Trade Policy and Facilitation 1.1.8 Intellectual Property Rights 4. Access to Finance Indicators Level of Reform 5. Regulatory Reform and Parliamentary Processes 1 2 3 4 5 6. Tax Policy Analysis 7. Infrastructure for Investment 8. SME Policy - New areas - Innovation Policy 1 Development of IP Laws

5. IRI assessment methodology – tripartite structure Government self-assessment Private Sector Independent experts

6. Illustration of a dimension with sub-dimensions and indicators Investment Policy and Promotion

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

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

9. Illustration of a collection of quantitative and qualitative indicators Illustrative • 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 Innovation Policy Enhance business innovation potential Secure a strong science and technology base Linkages between industry and academia Skills for Innovation Policy co-ordination

10. SME Policy Index Methodology: Dimensions and sub-dimensions Dimensions Sub - dimensions SME Policy Index Western Balkans and Turkey 2012 6 Access to finance for SMEs 6.1 Sources of external finance for SMEs Covering priority dimensions related to the Small Business Act for Europe : Sub 6.2 Legal and regulatory framework - Dimensions 1. Entrepreneurial learning and women’s Sub - dimensions Indicators entrepreneurship 6.1 Sources of external finance for SMEs 2. Bankruptcy and second chance for SMEs 5.3 ACAAs 3. Regulatory framework for SME policy 6.1.1 Credit guarantee schemes making Indicators Level of Reform 4. Operational environment for SMEs Indicators 5. SME support services and public 1 2 3 4 5 procurement Credit guarantee schemes 6. Access to finance for SMEs Indicators 7. Standards and technical standards 8. Enterprise skills and innovation Public start - up funding 9. SMEs in a green economy 10. Internationalisation of SMEs 1 Business angels network

11. SME Policy Index Methodology: Indicators

12. EXAMPLE: Dimension 3Regulatory framework for SME policy making COUNTRY SCORES-2012 regional average