Obstacles to investing in the Western Balkans: The view of the private sector

Obstacles to investing Obstacles to investing in the Western Balkans:in the Western Balkans:

The view of the The view of the private sectorprivate sector

http://www.eurochambres.eu

ASSOCIATION OF EUROPEAN CHAMBERS OF COMMERCE AND INDUSTRY


Partners for Investment Promotion

• 18 months (May 2008 – November 2009) • CARDS Regional Support• Beneficiary countries: Albania, Bosnia and Herzegovina, Croatia, former Yugoslav Republic of Macedonia, Montenegro, Serbia • Objective: to contribute to the development of a favourable environment for FDI in the region• Main activities: 8 cluster partnerships Survey Focused training through ECH Academies


Survey methodology

• Qualitative!

• Interview-based

• Detailed questionnaires - WB: OECD questionnaire - EU: adapted

• Responses: 860 WB + 259 EU


Overview – Climate

Increasingly goodEU: WB:


Overview - FDI Obstacles


# 1: Corruption

• EU majority considers it most important obstacle

• WB Investor-State Dispute Settlement System:


• EU majority considers it 2nd most important obstacle, i.e.:

- Lack of protection - Lack of transparency

• WB unpredicted regulatory changes + lack of info:

#2: Legal/regulatory uncertainty


• Human capital

Regional view - WB investors


• Access to finance + tax incentives

Regional view - WB investors II


• Lack of information

- electricity/physical infrastructure- access to land/property & building costs- labour regulations

Int’l view - EU investors


Need for more political will + share of EU best

practices

Need for full alignment with acquis / EU

standards

Need for WB private sector to be consulted in

the economic reform + education reform process

Need for EU private sector to be informed

about FDI opportunities in WB

Conclusion


Thank you!

Micol Martinelli

Senior Advisor – International Affairs

[email protected]

Documents

Obstacles to investing in the Western Balkans: The view of the private sector