High-level Meeting on Policy Measures and Instruments to improve the Investment Climate in the DP Countries. - Introductory Presentation -

Transcription

1 High-level Meeting on Policy Measures and Instruments to improve the Investment Climate in the DP Countries - Introductory Presentation - Cairo, Egypt 8 May 2012

2 Foreign direct investment, net inflows (current USD, bn) FDI flows into DP countries increased tenfold from following structural reforms Financial Crisis Tenfold increase In FDI Transition and changes Egypt Jordan Morocco 4 Tunisia Libya Source: UNCTAD 2011, OECD estimates. 2

3 Analysis of risks in DP Countries remains high 7 Country Risk Classification (on a scale from 0-7) used by Export Credit Agencies as of 30 March Deauville Partnership Countries Colombia, Chile, Mexico, Peru BRIC G8 OECD (2012), Country Risk Classifications of the Participants to the Arrangement 3 on Officially Supported Export Credits, OECD, Paris, as of 30/03/

4 FDI Regulatory Restrictiveness Index Source: OECD. Obs.: Closed = 1; Open = 0. *Preliminary scores for Jordan. Note: Egypt and Tunisia scores based on pre-transition legislation ongoing reforms. Real estate investment Business Financial Agriculture & Forestry Fishing Mining (incl. Oil extr.) Manufacturing Real estate investment Business Financial Agriculture & Forestry Fishing Mining (incl. Oil extr.) Manufacturing Communications Electricity Communications Electricity Media Hotels & restaurants Construction Distribution Transport OECD EGYPT Media Hotels & restaurants OECD Transport MOROCCO Distribution Construction Real estate investment Business Financial Agriculture & Forestry Fishing Mining (incl. Oil extr.) Manufacturing Real estate investment Business Financial Agriculture & Forestry Fishing Mining (incl. Oil extr.) Manufacturing Communications Electricity Communications Electricity Media Hotels & restaurants OECD Transport JORDAN* Distribution Construction Media Hotels & restaurants OECD Transport TUNISIA Distribution Construction

5 The OECD Declaration on International Investment and Multinational Enterprises as an anchor for reform Adherence Egypt in 2007 Morocco in 2009 Tunisia will adhere in May (Investment policies reviewed by the Investment Committee) Jordan: Review of investment policies by the Investment Committee to support adherence is ongoing Actions before and after adherence Publication of a list of restrictions to national treatment Review of the investment policies with the OECD Peer review in the Investment Committee Regular reporting on progress Establishing a national contact point for the MNE Guidelines OECD support Policy dialogue and experience sharing Assessment of reform progress Demand-driven assistance on investment regime improvements 5

6 The OECD Guidelines for Multinational Enterprises Recommendations for responsible business conduct from 43 governments to their enterprises. Apply to companies from, or operating in the territories of adhering countries. Based on universally shared values and principles, including: human rights, tax, consumer interests, anti-corruption Unique implementation mechanism: National Contact Points (dissemination, dialogue and mediation) Last update:

7 Using other OECD benchmarks to address challenges faced by DP countries Strong corporate governance of companies helps to attract investors and supports integrity of business operations. OECD Corporate Governance Principles and Principles for State-Owned Enterprises: all DP countries participate in this work. Markets must not only be open, but contestable - competition law and policy complement open trade and investment regimes: OECD Competition Policy Report on Egypt 2011 finalised and capacity building in Tunisia and Morocco planned. Public sector tenders are an important source of employment creation in the private sector. OECD Integrity in Public Procurement Reviews support DP countries. Lack of integrity in parts of the private sector important motive for transition: Experience from the OECD Anti-bribery Convention applied to strengthen business integrity in Egypt, Jordan and Morocco. 7

8 Key principles: Proposed Action Plan for Improvements in Investment Frameworks Transparency of the investment regime Protection standards: National treatment, transfer of funds, expropriation, dispute settlement Reduction of de facto restrictions and administrative simplification Investment facilitation: IPAs, clear incentive schemes, access to industrial land Network of coherent international and regional investment agreements 8