OECD EURASIA WEEK Enhancing Competitiveness in Eurasia

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1 With the financial assistance of the European Union DRAFT AGENDA OECD EURASIA WEEK Enhancing Competitiveness in Eurasia November 2014 OECD Conference Centre Paris, France #EurasiaWeek

2 DRAFT AGENDA 2 THE ORGANISATION FOR ECONOMIC CO -OPERATION AND DEVELOPMENT The OECD is a unique forum where governments work together to address the economic, social and environmental challenges of globalisation. The Organisation provides a setting where governments can compare policy experience, seek answers to common problems, identify good practice and work to co-ordinate domestic and international policies. The OECD Eurasia Competitiveness Programme was launched in 2008 to support Eurasian economies in developing more vibrant and competitive markets both at the national and regional level in order to generate sustainable growth. The Programme focuses on a comprehensive approach that includes regional dialogue, peer review, definition of reform priorities and assistance in implementation and design of policies. Mr. Antonio Somma Head, OECD Eurasia Competitiveness Programme OECD Global Relations Secretariat (GRS) antonio.somma@oecd.org OECD EURASIA COMPETITIVENESS PROGRAMME The Central Asia Initiative, launched in November 2008, covers Afghanistan, Kazakhstan, Kyrgyzstan, Mongolia, Tajikistan, Turkmenistan, and Uzbekistan. The Eastern Europe and South Caucasus Initiative, launched in April 2009, covers the six countries of the EU Eastern Partnership: Armenia, Azerbaijan, Belarus, Georgia, the Republic of Moldova, and Ukraine. Both Initiatives aim to help create a sound business climate for investment, enhance productivity, support entrepreneurship, develop the private sector, and build knowledge-based economies to make the region more competitive and attractive to foreign investment. OECD Central Asia Initiative Co-chaired by the European Union and the Republic of Kazakhstan OECD Eastern Europe and South Caucasus Initiative Co-chaired by Poland and Sweden

3 DRAFT AGENDA 3 WHAT IS THE OECD EURASIA WEEK? Countries in the Eurasia region are increasingly involved in the work of the OECD through various regional and thematic platforms, and have also become more present in several OECD bodies. The involvement of these countries in the OECD Eurasia Competitiveness Programme, testifies to the relevance of the work of the OECD in the region and the region s growing importance to the members of the OECD. The objective of the OECD Eurasia Week is to build on this momentum and create an opportunity to further strengthen the relations between the countries of the Eurasia region and the OECD. It is also an opportunity to raise the visibility of the enhanced co-operation on a broad spectrum of thematic issues relevant to further improving the region s competitiveness. The OECD Eurasia Week will be held at the OECD Conference Centre, 2 rue André Pascal, Paris, France. WHO WILL BE THERE? The OECD Eurasia Week will bring together highlevel representatives from the Eurasia region, OECD member countries, academics, business leaders, international partner organisations, civil society and relevant experts on the thematic issues. BILATERAL MEETINGS Bilateral meetings will be organised on Monday, 24 November at the OECD Conference Centre with the OECD Global Relations Secretariat. Additional bilateral meetings for high-level delegations from the Eurasia Region upon request with other OECD Directorates can be organised in parallel with the Competitiveness through Green Growth Session on Tuesday, 25 November Delegations will be contacted upon registration to schedule the bilateral meetings. WHAT WILL BE DISCUSSED? The OECD Eurasia Week will hold the following back-to-back sessions: Tuesday, 25 November 2014: A Business Forum for the region of Eurasia organised by the OECD Eurasia Competitiveness Programme, and in cooperation with MEDEF International and BIAC; A thematic session on Greening Economies through Green Growth, specifically focusing on the role of SMEs. The session will be organised in co-operation with the OECD Environment Action Plan (EAP) Task Force for Eastern Europe, South Caucasus and Central Asia; Wednesday, 26 and Thursday, 27 November 2014 The annual meeting of the Steering Committees of the OECD Central Asia Initiative and the Eastern Europe and South Caucasus Initiative; The OECD Eurasia Competitiveness Roundtable: A peer review of Armenia, Kazakhstan and Tajikistan on competitiveness reforms. Documents relevant to the peer review will be available on-line on 12 November 2014 for all participants prior the Roundtable discussion. A thematic session on Integrity in Eurasia: Based on the results of the second round of monitoring of the Istanbul Action Plan and forthcoming reviews of Kazakhstan and Armenia, the session will discuss progress and challenges of integrity and anticorruption in Eurasia. OECD experts will also present tools and methodologies to foster integrity. Contact details concerning the Eurasia Week: Daniel Quadbeck, Project Manager Tel: , daniel.quadbeck@oecd.org Gabriela Miranda, Project Manager Tel: , gabriela.miranda@oecd.org

4 DRAFT AGENDA 4 Tuesday, 25 November 2014 Room CC 15 OECD EURASIA BUSINESS FORUM SEIZING BUSINESS OPPORTUNITIES IN THE EURASIA REGION Working languages: English and Russian Due to the high interest expressed by registered participants for this session, kindly note that the seating in Room CC 15 will be allocated on a first come, first served basis. Room C will be available as a listening room REGISTRATION AND NETWORKING COFFEE OPENING ADDRESS Official opening of the OECD Eurasia Week Mr. Angel Gurría, Secretary-General, OECD OPENING PLENARY Chair: Mr. Marcos Bonturi, Director, OECD Global Relations Secretariat Welcoming Remarks Mr. Jean Burelle, President, MEDEF International Mr. Péter Lörincze, Member of the BIAC Executive Board, Vice President for International Relations, BIAC Mr. John Evans, General Secretary, Trade Union Advisory Committee to the OECD (TUAC) Mr. Arnaldo Abruzzini, Secretary General, EUROCHAMBRES Ms. Nataliya Bugayova, CEO of Kyiv Post BUSINESS FORUM PARALLEL PANELS Detailed agenda next page Economic Diversification and Industrialisation in the Eurasia Region Room CC15 Economic Integration and Linkages with Global Value Chains in the Eurasia Region Room C

5 DRAFT AGENDA BUSINESS FORUM PARALLEL PANELS Working languages: English and Russian The panels aim to take stock of business opportunities in the thematic sessions outlined below and to highlight specific developments followed by a general discussion. Economic Diversification and Industrialisation in the Eurasia Region Room CC 15 Moderator: Mr. Péter Lörincze, Member of the BIAC Executive Board, BIAC AZERBAIJAN: Improving the investment climate to attract FDI beyond the oil sector BELARUS: Diversifying routes to markets and sources of investment KAZAKHSTAN: Innovation and Capacity Building Are they accelerators for industrialisation? MONGOLIA: Sector Diversification Strategy: How to avoid the pitfalls? TURKMENISTAN: Diversification of economic partners in Turkmenistan UZBEKISTAN: Tools and mechanisms to strengthen cooperation between foreign and domestic companies Economic Integration and Linkages with Global Value Chains in the Eurasia Region Room C Moderator: Mr. Philippe Gautier, Deputy CEO, MEDEF International AFGHANISTAN: Developing the non-commodity sectors of the economy to create job opportunities and achieve self-reliance ARMENIA: Leveraging multiple trade partnerships: opportunities for Armenia GEORGIA: Economic integration and logistic corridors: Impact on the economy KYRGYZSTAN: Opportunities for trade and investment in innovative markets REPUBLIC OF MOLDOVA: Expected opportunities from the association agreement with the European Union TAJIKISTAN: Policy reform following adherence to WTO and development of the agribusiness global value chain UKRAINE: Economic priorities for Ukraine and the impact of the association agreement with the EU BUFFET LUNCH GEORGE MARSHALL ROOM, OECD Chateau

6 DRAFT AGENDA THEMATIC SESSION: GREEN GROWTH POLICIES FOR SMEs Room CC 15 Working languages: English and Russian This session is organised in conjunction with the Annual Meeting of the Environment Action Programme Task Force (EAP Task Force). The EAP Task Force aims to promote better environmental and water policies and governance in Eastern Europe, Caucasus and Central Asia (EECCA). The OECD serves as secretariat for the EAP Task Force. The thematic session on green growth is open to all interested Eurasia week participants Opening remarks by the Chair: Mr. Juergen Keinhorst, Co-Chair, EAP Task Force, and adoption of the draft agenda DRIVERS FOR GREENING ENTERPRISE BEHAVIOUR Mr. Simon Upton, Director, Environment Directorate, will deliver a keynote address. Ms. Lilia Palii, State Secretary, Ministry of Economy, Moldova, will emphasise the importance of SME support policies in the context of greening the economy. [Representative of a multinational company] will focus on greening the supply chain as a mechanism for improving SMEs environmental performance. Discussion COFFEE BREAK SME GREENING IN OECD AND EECCA COUNTRIES: ADDRESSING THE POLICY GAP Ms. Lilit Apujanyan, SME Development National Centre, Armenia, and Ms. Natalia Vinogradova, National Institute for Economic Research, Moldova, will present the comparative analysis of results of SME surveys in the two countries. Mr. Eugene Mazur, OECD Environment Directorate, will talk about the experience of OECD countries in designing and implementing policy instruments to promote environmental compliance and green business practices among SMEs and its relevance to EECCA countries. Mr. Heinrich Wyes, Central Asia Regional Environmental Centre (CAREC), will present his organisation s activities on promoting the greening of SMEs in Central Asian countries. Ms. Malak Shukurova, Regional Environmental Centre Caucasus, will report on its activities in promoting cleaner production among SMEs in the Caucasus countries. Discussion Closing remarks by the EAP Task Force Secretariat RECEPTION hosted by the EAP Task Force Expresso Cafe

7 DRAFT AGENDA 7 Wednesday, 26 November 2014 Room CC OECD EURASIA COMPETITIVENESS ROUNDTABLE SESSION I Working languages: English and Russian The Roundtable was established in 2013 as a joint platform between OECD members and Eurasia partner countries to carry out peer reviews on competitiveness reform implementation. ITEM I ADOPTION OF THE AGENDA The Chairman of the Roundtable, H.E. Mr. Pavel Rozsypal, Ambassador, Permanent Representative of the Czech Republic to the OECD, will present the Draft Agenda and introduce the speakers for each session. Action: for approval ITEM II OPENING OF THE PEER REVIEW OF TAJIKISTAN Mr. Jean-Claude Boidin, Head of Unit for Asia and Central Asia, DG DEVCO, European Commission will introduce the Peer Review of Tajikistan and highlight the role of the European Union in Central Asia H.E. Mr. Sharif Rahimzoda, Minister of Economic Development and Trade, Tajikistan, will provide an opening statement on the Peer Review of Tajikistan. ITEM III ACCESS TO FINANCE FOR SMEs THROUGH REMITTANCES SMEs and entrepreneurs in Tajikistan face several barriers in accessing finance, including high interest rates and high collateral requirements. More reforms are needed to strengthen the financial sector, leverage the potential benefits of migrants remittances and improve the business climate. Return migrants could make use of the country s endowments, access credit and create businesses The Secretariat will summarise the framework of analysis and the regional challenges related to access to finance for SMEs through remittances Mr. Tuna Şahin, Vice President of KOSGEB, Turkey, will provide key comments on the draft report and key insights based on Turkey s experience in access to finance for SMEs Open discussion Members of the Roundtable are invited to ask questions and comment on the draft report Tajikistan is invited to respond to comments and provide an overview of the next steps of reforms related to access to finance for SMEs.

8 DRAFT AGENDA Conclusion of this session by the Chair and the Secretariat COFFEE BREAK ITEM IV PROMOTING INTERNATIONALISATION OF SMEs IN AGRIBUSINESS Tajikistan connectivity to regional markets and global value chains is challenging, due to its geographical location, infrastructure and policy barriers, including the regulatory environment. However, the agribusiness sector has the potential to generate more exports for Tajikistan s economy. It is recommended that Tajikistan s government further supports the long-term competitiveness and internationalisation of the agribusiness sector The Secretariat will summarise the framework of analysis and the regional challenges related to the promotion of internationalisation of SMEs in Agribusiness Mr. Volker Genetzky, Policy Officer, Ministry of Economics and Energy, Germany will present the key findings of the draft report and provide comments based on Germany s experience Open discussion Members of the Roundtable are invited to ask questions and comment on the draft report Tajikistan is invited to respond to comments and provide an overview of the next steps of reforms related to the promotion of internationalisation of SMEs in the agribusiness sector Conclusion of this session by the Chair and Secretariat BUFFET LUNCH - GEORGE MARSHALL ROOM, OECD Chateau 13:00-13:15 Group Photo with all Eurasia Week participants in the OECD Chateau

9 DRAFT AGENDA MEETING OF THE STEERING COMMITTEES OF THE OECD EURASIA COMPETITIVENESS PROGRAMME ROOM CC12 *********************** CLOSED SESSION ************************** Working languages: English, French and Russian Chair: Mr. Marcos Bonturi, Director of the OECD Global Relations Secretariat ITEM I ADOPTION OF THE AGENDA AND WELCOMING REMARKS Opening by Mr. Marcos Bonturi, Director ITEM II THE PROGRAMME'S ACHIEVEMENTS, NEXT STEPS AND KEY DATES [c.f. Room Document 1] Presentation by Mr. Antonio Somma, Head of the OECD Eurasia Competitiveness Programme OECD Central Asia Initiative Introductory Remarks by the Co-chairs: H.E. Ms. Maria-Francesca Spatolisano, Ambassador of the European Union to the OECD H.E. Mr. Yerbol Orynbayev, Aide to the President of Kazakhstan Partner countries are invited to comment on key achievements and next steps of the OECD Central Asia Initiative: Tajikistan will share its experience on the preparation of the peer review Kyrgyzstan will provide an update on implementation activities carried out since the peer review in 2013 Mongolia will share its views about new country-specific projects to be launched in 2015 Discussion among Members of the Steering Committees OECD Eastern Europe and South Caucasus Initiative Introductory Remarks by the Co-chairs: H.E. Mr. Jakub Wisniewski, Ambassador of Poland to the OECD H.E. Ms. Annika Markovic, Ambassador of Sweden to the OECD Partner countries are invited to comment on key achievements and next steps of the OECD Eastern Europe and South Caucasus Initiative: Armenia will share its experience on the preparation of the peer review Georgia will provide an update on the launch of a new country project in preparation of Georgia's peer review in 2015 Moldova will provide an update on the second Eastern Partner Countries Small Business Act assessment cycle launched in 2014 Discussion among Members of the Steering Committees

10 DRAFT AGENDA 10 ITEM III NEW SUBSTANTIVE AREAS OF WORK Product space methodology Presentation by experts from the Czech Republic Case Study from Georgia Discussion among Members of the Steering Committees ITEM IV APPOINTMENT OF VICE-CHAIRS OF THE OECD EURASIA COMPETITIVENESS ROUNDTABLE Steering Committee Members are invited to appoint two Vice-chairs of the OECD Eurasia Competitiveness Roundtable ITEM V STRATEGIC ORIENTATIONS UNTIL 2020 [c.f. Room Document 2] Presentation by Mr. Antonio Somma, Head, OECD Eurasia Competitiveness Programme Comments by H.E. Mr. Paulo Vizeu Pinheiro, Chair of the OECD External Relations Committee Discussion among Members of the Steering Committees ITEM VI OTHER ITEMS FOR DISCUSSION Discussion among Members of the Steering Committees ITEM VII CONCLUDING REMARKS Mr. William Danvers, Deputy Secretary-General of the OECD RECEPTION HOSTED BY THE CZECH REPUBLIC AND THE SLOVAK REPUBLIC - GEORGE MARSHALL ROOM, OECD Chateau

11 DRAFT AGENDA 11 Thursday, 27 November 2014 Room CC OECD EURASIA COMPETITIVENESS ROUNDTABLE SESSION II Working languages: English and Russian The Roundtable was established in 2013 as a joint platform between OECD members and Eurasia partner countries to carry out peer reviews on competitiveness reform implementation. ITEM I OPENING OF THE PEER REVIEW OF ARMENIA H.E. Ms. Maria-Francesca Spatolisano, Ambassador, Permanent Representative of the European Union to the OECD will introduce the Peer Review of Armenia and highlight the role of the European Union in Eastern Europe and South Caucasus Mr. Garegin Melkonyan, First Deputy Minister of Economy, Armenia, will provide an opening statement on the Peer Review of Armenia. ITEM II SUPPORTING THE INTERNATIONALISATION OF SMEs IN AGRIBUSINESS Armenian agricultural exporters are becoming competitive, profitable and innovative, but still need a better integrated management structure and supply chain. It is recommended that the Armenian government implements policies to overcome a number of challenges and unlock the full export potential of agribusiness SMEs in Armenia The Secretariat will summarise the framework of analysis and the regional challenges related to the promotion of internationalisation of agribusiness SMEs Mr. Jakub Škába, Association of SMEs and Crafts of the Czech Republic, will present the findings of the draft report Mr. Christos Kyriatzis, Deputy Head of Unit, International Affairs and Missions for Growth, DG Enterprise, European Commission, will provide key comments on the draft report and key insights based on international experiences Open discussion Members of the Roundtable are invited to ask questions and comment on the draft report Armenia is invited to respond to comments and provide an overview of the next steps of reforms related to supporting the internationalisation of SMEs in agribusiness Conclusion of this session by the Chair and the Secretariat COFFEE BREAK

12 DRAFT AGENDA 12 ITEM III ATTRACTING MULTINATIONAL ENTERPRISES AND MAXIMISING THEIR IMPACT ON SMES Armenian SMEs may benefit from Foreign Direct Investment (FDI) and technology transfer. For example, the construction sector could leverage some of the country s endowments in raw materials. However, a number of policy barriers must be overcome in order to attract multinational enterprises and develop SMEs in the sector The Secretariat will summarise the framework of analysis and the regional challenges related to attracting multinational enterprises and maximising their impact of SMEs Mr. Volker Genetzky, Policy Officer, Ministry of Economics and Energy, Germany, will present the findings of the draft report Professor Salvatore Zecchini, Chair of the OECD Working Party on SMEs, will provide key comments on the draft report and key insights on Italy s experience Open discussion Members of the Roundtable are invited to ask questions and comment on the draft report Armenia is invited to respond to comments and provide an overview of the next steps of reforms related to attracting multinational enterprises and maximising their impact on SMEs Conclusion of this session by the Chair and the Secretariat BUFFET LUNCH - GEORGE MARSHALL ROOM, OECD Chateau

13 DRAFT AGENDA OECD EURASIA COMPETITIVENESS ROUNDTABLE - SESSION III ITEM I OPENING OF THE PEER REVIEW OF KAZAKHSTAN Mr. Jean-Louis Lavroff, Head of Operations Section, Delegation of the European Union to Kazakhstan will introduce the Peer Review of Kazakhstan and highlight the role of the European Union in Kazakhstan Mr. Arman Yevniev, Executive Secretary, Ministry of Agriculture of Kazakhstan, will provide an opening statement on the Peer Review of Kazakhstan. ITEM II STRENGTHENING AGRICULTURAL CO-OPERATIVES IN KAZAKHSTAN Small farms and households account for the majority of agricultural output in Kazakhstan, but face significant structural disadvantages competing with largescale agricultural enterprises. In particular, small-scale producers are often affected by market failures such as credit constraints, missing input and output markets, and low bargaining power with larger players in the agribusiness supply chain (e.g. input suppliers, processors and retailers). In this context, agricultural co-operatives can be an effective solution to strengthen supply chains and enhance the competitiveness of small-scale producers The Secretariat will summarise the framework of analysis and the policy support needed to facilitate the development of agricultural co-operatives in Kazakhstan Mr. Richard Pomfret, Professor of Economics, University of Adelaide, Australia will comment on the draft report, provide key insights based on international experience, and facilitate the peer review discussion Mr. David Sedik, Senior Agricultural Policy Officer, FAO regional office for Europe and Central Asia will comment on selected findings of the draft report and provide an overview of the experience in selected OECD countries Mr. Zvi Lerman, Professor of Agricultural Economics, Hebrew University of Jerusalem, Israel will comment on selected findings of the draft report and provide an overview of the policy experience in Central Asia Open discussion Members of the Roundtable are invited to ask questions and comment on the draft report Kazakhstan is invited to respond to comments and provide an overview of the next steps of reforms related to strengthening agricultural co-operatives in Kazakhstan Conclusion of this session by the Chair and Secretariat. ITEM III NEXT STEPS FOR THE OECD EURASIA COMPETITIVENESS ROUNDTABLE The Chair will provide next steps and dates for the OECD Eurasia Competitiveness Roundtable and will invite members to comment on the next steps COFFEE BREAK

14 DRAFT AGENDA THEMATIC SESSION: INTEGRITY AND TRANSPARENCY IN EURASIA ROOM CC12 Chair: H.E. Ms. Annika Markovic, Ambassador of Sweden to the OECD During the last several years, countries in Eurasia have introduced important reforms to foster integrity and fight corruption. This session identifies progress achieved as well as remaining challenges and how OECD can support Eurasian countries in overcoming them. ITEM I OPENING AND WELCOMING REMARKS Opening by H.E. Ms. Annika Markovic, Ambassador of Sweden to the OECD Welcoming Remarks by H.E. Mr. William Danvers, Deputy Secretary-General of the OECD Mr. Alikhan Baimenov, Chairman of the Steering Committee of the Regional Hub of Civil Service of Central Asia ITEM II TOOLS AND PROCESSES TO COMBAT CORRUPTION The OECD employs a wide variety of tools and processes to effectively combat corruption tools such as the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, in-depth peer reviews, Integrity Scans, and capacity-building programs and cooperative workshops (such as those undertaken by the OECD Centre for Tax Policy and Administration in association with the Italian Anti-Corruption Authority). This session will discuss these tools and their relevance to the Eurasia Region, as well as where the OECD could work more closely with the Region Open Discussion Mr. Helge Schröder, Policy Analyst - CleanGovBiz, Office of the Secretary- General, OECD ITEM III THE ANTI-CORRUPTION NETWORK FOR EASTERN EUROPE AND CENTRAL ASIA The Anti-Corruption Network for Eastern Europe and Central Asia is an outreach program of the OECD Working Group on Bribery in International Business Transactions, designed to provide a regional forum to support the fight against corruption in this region. In this session, ACN experts will discuss progress and some of the key challenges in anti-corruption reforms in Eastern Europe and Central Asia and lessons learnt from the third round of country monitoring, including through the most recent reports on Kazakhstan and Armenia, as well as progress updates on Georgia, Azerbaijan, Kyrgyzstan, Mongolia, Tajikistan, Uzbekistan and Ukraine Open Discussion Ms. Inese Kuske, Anti-Corruption Network Project Manager, Anti-Corruption Division, OECD Mr. Aram Khaghaghordyan, Coordinator, European Research Center for Anti- Corruption and State Building (ERCAS)

15 DRAFT AGENDA 15 ITEM IV PUBLIC PROCUREMENT Accounting for 13% of GDP and 30% of general government expenditure in OECD countries, public procurement is an important economic and government activity. It is also a high-risk area, due to the close interaction between public and private spheres and because fraud, corruption and waste in procurement undermine the ability of government to serve citizens properly. For these reasons, efficiency, effectiveness and economy are of vital importance in public procurement systems, as is ensuring integrity and accountability. This session will feature the presentation of a draft OECD Recommendation of the Council on Public Procurement, designed to address these needs. The draft Recommendation reaffirms the role of public procurement as a strategic function by providing clear and effective guidance on how to implement a public procurement system that uses state-of-the-art tools and techniques to deliver positive outcomes. Mr. Paulo Magina, Public Procurement Portfolio Manager, Public Sector Integrity Division, OECD H.E. Mr. Tsagaan Puntsag, Chief of Staff of the President of Mongolia Open Discussion ITEM V CLOSING OF OECD EURASIA WEEK Mr. Marcos Bonturi, Director of the OECD Global Relations Secretariat NETWORKING COCKTAIL HOSTED BY THE DELEGATION OF SWEDEN TO THE OECD CONFERENCE CENTRE ATRIUM

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