OECD Wrkshp n Gd Practices in Investment Prmtin & Facilitatin Hw t imprve Investment Prmtin Agencies impact and relevance Summary and Future Wrk
SUMMARY OF THE WORKSHOP Backgrund On 18 Octber 2016, the OECD rganised a wrkshp n Gd Practices in Investment Prmtin and Facilitatin: Hw t Imprve Investment Prmtin Agencies Impact and Relevance at the OECD Headquarters in Paris, France. 1 Mst gvernments are actively pursuing t prmte and facilitate investment in the hpe t generate jbs, revenue and prductive grwth in the lcal ecnmy, amng thers. Investment Prmtin Agencies (IPAs) have been established t attract investment and better capture its benefits. IPAs cmpete with each ther fr certain investment pprtunities but, at the same time, they als share similar challenges. Tgether with plicymakers, they need t make ptimal chices regarding their rganisatinal structure and activities, reflecting their ecnmy s cntext and pririties, and ensure an adequate allcatin f scarce resurces. Sme plicy practices wrk better than thers and exchanges with peers and evidence-based analysis can increase IPA chances f making the mst f the budget available t them. The OECD has a lng-standing experience in enhancing the cntributin f internatinal investment t grwth and sustainable develpment by advancing investment plicy refrm and internatinal c-peratin. Thus far, its wrk n investment prmtin and facilitatin has evlved primarily n the use f the OECD Plicy Framewrk fr Investment 2 and punctual wrk undertaken at the request f interested cuntries. 3 Increasingly, practitiners and plicymakers have requested the OECD t cnduct in-depth analytical wrk and facilitate peer-learning in this area fr the benefit f the OECD members and ther ecnmies. This wrkshp was a starting pint t respnd t this request with the psitive feedback received, the OECD stands ready t help interested gvernments and their IPAs. Highlights The wrkshp featured abut 100 participants frm ver 40 OECD member cuntries and emerging ecnmies, including senir representatives frm 22 IPAs as well as plicymakers, researchers, representatives frm the private sectr and internatinal rganisatins. 4 Participants shared their experience and discussed emerging trends and gd practices n: cmplementary rles f IPAs and plicymakers in creating an enabling envirnment fr attracting and retaining investment as part f a cherent plicy framewrk with a special fcus n the imprtance t ensure that IPAs are prperly integrated in a whlef-gvernment institutinal ecsystem, the key rle f IPAs in dispute preventin and reslutin, and the need fr increased internatinal cllabratin n investment prmtin and facilitatin; 1 See: www.ecd.rg/daf/inv/investment-plicy/wrkshp-gd-practices-in-investment-prmtin-and-facilitatin.htm 2 Fr mre infrmatin, see: www.ecd.rg/investment/pfi.htm. 3 See, fr example: www.ecd.rg/investment/investment-plicy/chile-investment-prmtin-strategy.htm 4 Participating IPAs included thse frm: Brazil, Chile, Csta Rica, Denmark, Finland, France, Germany, Iceland, Ireland, Italy, Kazakhstan, Las, Peru, Pland, Prtugal, Netherlands, Spain, Sweden, Turkey, United Kingdm, United States and Viet Nam. Other cuntries were represented by their Investment Cmmittee delegates. Internatinal rganisatins included the Inter-American Develpment Bank, the Wrld Assciatin f Investment Prmtin Agencies, the Wrld Bank Grup and the Wrld Trade Organizatin. - 2 -
the institutinal and gvernance ptins and tls used by IPAs t design, implement and mnitr their activities including the need t carefully select the sectrs t be targeted by the IPA, the challenge in develping sphisticated aftercare systems fcusing n the mst impactful freign direct investment (FDI) prjects and the imprtance f maintaining strng links with the private sectr t ensure efficient plicy advcacy; the current practices and challenges t mnitr and measure the impact and effectiveness f IPAs in their activities which include the need t better understand the rle f the IPA in influencing a given investment decisin and t measure the direct and indirect impact f assisted investment prjects and firms n the lcal ecnmy. The wrkshp was divided int three sessins during which representatives f the IPAs and internatinal experts presented, fllwed by a peer-t-peer discussin. Several cmmn themes emerged in the discussin: 5 First, all IPAs face a similar dilemma regarding an apprpriate institutinal set-up and an ptimal allcatin f staff and resurces acrss activities. IPAs budgets are ften under pressure and the agencies underg frequent refrms. In this prcess, they face chices as t which functins t retain, attain r shed. Fr example, sme agencies pt fr an integrated apprach t trade and investment prmtin, while thers rely n ther agencies fr this task. Similarly sme IPAs undertake bth inward and utward investment prmtin while thers fcus n ne aspect nly. Varius ther functins are als undertaken t a varying degree. Crss-cuntry evidence n best practices and peer-t-peer discussins can therefre assist IPAs management and plicymakers in selecting the apprpriate rganisatinal design. Secnd, all IPAs are interested in measuring the impact f their activities n investment prjects and the lcal ecnmy. This des nt nly help them tailr and adjust their wn activities but als cmmunicate with the gvernment and the general public at large n the impact f their activities and the rle f investment in the ecnmy mre generally. Sme agencies have mre sphisticated tls than thers at their dispsal fr this task, using the available public and private data and varius quantitative and qualitative methds. In all cases, adequate impact assessment is bth time- and labur-intensive and pses a challenge t the IPAs. Assistance frm internatinal rganisatins and academia can be hence fundamental. Third, IPAs d nt perate in vacuum but perate in a wider investment plicy envirnment. They need t interact with ther agencies respnsible fr similar r related functins, including their peers at the sub-natinal level, as well as respnsible Ministries. They need t develp tls and practices that allw them t undertake such crdinatin and cmmunicatin functins effectively. In additin, sme aspects f investment climate lie utside f their cntrl and require a brader gvernmental supprt and refrm agenda. As such, IPAs need t dispse f tls t identify the challenges and help the gvernment t tackle the encuntered prblems including thrugh structured dialgue with investrs and adequate plicy advcacy tls. Again, with its access t plicymakers and regulatrs and tls fr whle-fthe-gvernment refrms, the OECD can play an imprtant facilitating rle in this regard. 5 The discussins tk place under Chatham Huse rule therefre discussins reprted here can be nly general in nature and nt attributed t any particular cuntry r institutin. - 3 -
Main utcmes Psitive feedback was received abut the event and the rle that the OECD in facilitating such discussins and prviding evidence n best practices in investment prmtin and facilitatin. At the end f the wrkshp, participants were asked t identify the main issues n which the OECD shuld fcus its wrk t best supprt investment prmtin and facilitatin practitiners and plicymakers t whm they reprt. Several utcmes emerged: Prcess Given the success f the first editin, the OECD has been encuraged t initiate a series f similar wrkshps, at least nce a year, fr experience sharing and gd practice disseminatin; fllwing wrkshps shuld feature mre fcused and in-depth discussins n key tpics f interest Similarly t the first editin, participants f future wrkshps shuld include a mix f IPAs, plicymakers and external experts, with a pssibility f break dwn sessins prviding an pprtunity fr fcused discussins OECD member cuntries, key partners and assciates shuld be the main participants f future wrkshps but larger fra with mre participants (including frm less develped cuntries) culd be rganised back-t-back Substance (tpics t discuss and/r develp in the future) Guidance and exchanges n the mst apprpriate IPA structure Practive vs. reactive investment prmtin Measuring the impact f investment prmtin and facilitatin Strengthening the impact f investment t sciety Natinal vs. sub-natinal investment prmtin and crdinatin Imprving FDI statistics fr investment prmtin and facilitatin purpses The rle and impact f plicy advcacy Better inter-gvernmental crdinatin fr better FDI prmtin and facilitatin The rle f investment incentives The rle f mbudsmen and IPAs as facilitatr/mediatr Future trends f IPAs hw can IPAs adapt t changed pririties f firms? Linking investment plicymaking and investment prmtin and facilitatin Linking investment prmtin and trade plicy (rle in glbal value chains) Linking FDI attractin and educatin/skills plicies Rle f the OECD Create an investment prmtin and facilitatin platfrm by rganising and hsting similar wrkshps n a regular basis Cnduct research and evidence-based analysis n selected tpics t infrm the discussins and supprt IPAs in their strategic decisin-making 6 6 The rle f the OECD in prviding this utput will depend n the availability f funding. - 4 -
THE WAY FORWARD Investment prmtin and facilitatin platfrm Given the success f the wrkshp and the psitive feedback frm participants, the OECD will institutinalise this event as a regular activity. Future wrkshps will be arranged n a yearly basis and be held, similarly t the first editin, during the last Investment Cmmittee week f the year (usually held in Octber). The platfrm will fllw the same apprach as the initial wrkshp and gather a mix f IPAs and plicymakers t ensure a fruitful cmbinatin f the traditinal rle f the OECD f prviding advice t plicymakers and a mre practical supprt t investment prmtin and facilitatin practitiners. It will als help building bridges within gvernments between different investment cmmunities and keep a link with the Investment Cmmittee. Future wrkshps will gather participants frm OECD member cuntries and several emerging ecnmies. Crdinatin with ther internatinal rganisatins will be ensured t avid verlap and ptentially cllabrate n issues f cmmn interest. Discussins will be fcused arund specific tpics that will be decided in crdinatin with a subset f IPAs in advance. Breakut sessins culd be held t allw targeted and interactive discussins in smaller grups. Larger sessins with mre participants (including IPAs frm less develped ecnmies) can be held back-t-back with a view t share experience and disseminate gd practices. Analysis and plicy advice Depending n the availability f external funding, the OECD will cnduct research, evidencebased analysis, prepare cmparative studies, and prvide applied plicy advice n selected tpics t infrm the wrkshp discussins and supprt IPAs in their strategic pririties. Ptential tpics culd include: Mapping/inventry f IPAs Impact and effectiveness f investment prmtin FDI statistical data cllectin and use by IPAs Scpe and definitin f investment facilitatin FDI impact in the hst ecnmies Case studies - 5 -