1. WITH THE FINANCIAL SUPPORT OF THE EUROPEAN UNION SEE 2020 Sustainable growth workshop Monitoring Sarajevo, Bosnia and Herzegovina 19-20 Feb 2013 1

2. Monitoring of reforms in SEE 2 Greater time and staff commitment 20052006 4 th 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. 4 th 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. 5 th SEE ministerial in Vienna, Austria on 27 June Ministers endorse a Regional framework on Investment Completion of first Investment Reform Index 5 th SEE ministerial in Vienna, Austria on 27 June Ministers endorse a Regional framework on Investment Completion of first Investment Reform Index 2 nd Investment Reform Index released 2010 2011 6 th SEE Ministerial SEE 2020 Vision based on five pillars (integrated, smart, sustainable, inclusive and governance for growth 6 th SEE Ministerial SEE 2020 Vision based on five pillars (integrated, smart, sustainable, inclusive and governance for growth 2012 7 th SEE Ministerial Endorsement of SEE 2020 headline targets 7 th SEE Ministerial Endorsement of SEE 2020 headline targets

3. From the Regional Framework on Investment to SEE 2020 3 Regional Framework on Investment 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 reform Index 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 SEE 2020 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 4 Development of IP Laws

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

6. Illustration of a dimension with sub-dimensions and indicators 6 Investment Policy and Promotion FDI Policy National Treatment Admittance of personnel Transfers FDI incentives Performance requirements Land ownership Titling, cadastre and restitution Intellectual Property Rights Expropriation International Investment Agreements International Arbitration Investment Promotion and Facilitation Strategy Institutional Support Monitoring and Evaluation FDI-SME linkages One stop shop Client Relationship Management Policy Advocacy Aftercare services Transparency Publication avenues and tools Prior notification and stakeholder consultations Procedural transparency Privatisation and PPPs Privatisation strategy Privatisation consultations Restrictions on foreign investor participation in privatisation PPP units PPP legislation PPP consultations PPP cost benefit analysis PPP monitoring

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

8. 8 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 9 Innovation Policy Linkages between industry and academia Enhance business innovation potential Skills for Innovation Secure a strong science and technology base Policy co- ordination 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

10. SME Policy Index Methodology: Dimensions and sub-dimensions

11. SME Policy Index Methodology: Indicators Make public administrations responsive to SMEs needs 4.1 Issuing of company registration certificate Indicators 4.1.1 Number Of Days For Registration How long does it take to register a SME? 4.1.2 Number Of Administrative Steps For Registration How many administrative steps are required for SME registration? Is there a one-stop-shop? 4.1.3 Costs Connected With Registration What are registration costs as a percentage of GNI per capita? 4.1.4 Minimum Capital Requirements What are minimum capital requirements as a percentage of GNI per capita? 4.1.5 Administrative Identification Numbers Is there a unique identification number used in dealing with all standard functions of public administration?

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