1. World Economic Forum Competitiveness Indicators and Policy Actions Aleksandra Zoric Krzic USAID Serbia

2. WB Doing Business Report: rank 94 among 181 countries major weaknesses: - Dealing with Construction Permits (171) - Starting / closing a business - Paying taxes - Registering property - Enforcing contracts - Employing workers WEF Glob. Comp. Report: rank 85 among 132 countries ….will be discussed further Analyzing Serbia:

3. The most problematic factors for doing business WEF GCR 2008-2009 2007-2008

4. Serbia comparing to average of countries at the second stage of development Basic Requirements Innovation & Sophistication Efficiency Enhancers

5. SERBIA 2008-2009 Absolute Change (Score) 2007-2008 RankScoreRankScore GLOBAL COMPETITIVE INDEX853.90.1913.8 BASIC REQUIREMENTS884.1-0.1784.2 1st Pillar: Institutions108 3.4 -- 993.4 2nd Pillar: Infrastructure102 2.7 -- 922.7 3d Pillar: Macroeconomic Stability864.70.1 884.6 4th Pillar: Health and Primary Education465.8-0.2 316.0 EFFICIENCY ENHANCERS783.80.2883.6 5th Pillar: Higher Education and Training703.90.2 823.7 6th Pillar: Goods market Efficiency1153.70.2 1143.5 7th Pillar: Labor Market Efficiency664.40.5 1113.9 8th Pillar: Financial Market Sophistication893.90.2 983.7 9th Pillar: Technological Readiness613.50.2 573.3 10th Pillar: Market Size653.60.4 753.2 INNOVATION AND SOPHISTICATION FACTORS91 3.3 --883.3 11th Pillar: Business Sophistication100 3.5 -- 953.5 12th Pillar: Innovation70 3.1 -- 783.1 In numbers…. Progress against last year (6 positions up) 45 positions up

6. - Financed WEF and WB Indicator Analysis by a local Think Tank “International Competitiveness and Economic Growth of Serbia” by CEVES - Advised on the new Structure of the NCC - Policy assistance / Drafted Action Plan 2009 ----------------------------------------------------------------------------------------------------------- - Request for STTA to assist with implementation The USAID Competitiveness Project support

7. Serbia NCC: Reestablished late 2007 (in 2002 failed) Currently 32 members (Government members mostly) 5 Working Groups (inefficient) No clear agenda General recommendations: 1. Reduce the size of the NCC - max 20-22 members, less Gov. members - invite top leaders and decision makers 2. Formalize a NCC Secretariat 3. Redesign the Working Groups (to respond to policy priorities) 4. Set clear goals 5. Monitor performance (based on WEF and WB indicators) Policy Priority Areas: 1. Public Administration 2. Micro-Econ. Environment 3. Educational Reform 4. Energy Efficiency 5. Infrastructure Development

8. 1.Public Administration Burden of Gov. Regulations Extent of staff training* Effectiveness of Antimonopoly Policy** Regulation on Securities and Exchange Soundness of Banks 2. Market Efficiency Extent of Market Dominance Intensity of Local Competition** Financial Market Sophistication Restriction of Capital Flows 3. Human Capital Extent of Staff training* Reliance on Professional Management Quality of Management Schools 4. Energy Quality of Overall Infrastructure Quality of Electrical Supply Energy Security Prospects for Renewable Energy 5. Infrastructure Quality of Roads Prospects of integration in Pan- European Logistic Network Recommendations for Policy Priorities by Working Groups:

9. Thank you! A strong political leadership, with a clear vision and commitment to economic growth as a priority.