OECD Eurasia Competitiveness Roundtable

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1 With the financial support of the European Union DRAFT AGENDA OECD Eurasia Competitiveness Roundtable Peer Review of Competitiveness Reforms in the Kyrgyz Republic and the Republic of Moldova 4 December 2013 OECD Headquarters, CC 7 OECD Eastern Europe and South Caucasus Initiative Co-chaired by Poland and Sweden and OECD Central Asia Initiative Co-chaired by the European Union and the Republic of Kazakhstan

2 DRAFT AGENDA 2 WHAT IS THE OBJECTIVE OF THIS ROUNDTABLE? The OECD Eurasia Competitiveness Roundtable is a platform for peer review and knowledge sharing on reforms to enhance regional and national competitiveness. It serves as a unique policy network where OECD and Eurasia countries and international partner organisations can discuss country-specific approaches to competitiveness and share good practices in effectively implementing reforms. A peer review of countries competitiveness reforms is the cornerstone of the event. The objective of the Roundtable is to: Carry out peer reviews of competitiveness reform implementation at country level; Exchange good practices between OECD members, Eurasia countries and partner organisations; Develop policy guidelines and recommendations; Monitor progress on the implementation of competitiveness reforms. WHAT IS THE CONTEXT? At the OECD Eurasia Ministerial Conference in June 2013, Ministers endorsed the creation of the platform for regional peer review: the OECD Eurasia Competitiveness Roundtable. Beginning in 2013, the Roundtable will meet annually to peer review the implementation of competitiveness reforms in selected Eurasia countries with the support of experts from OECD and Eurasia countries and from international partner organisations. WHAT WILL BE DISCUSSED? At the first session of the OECD Eurasia Competitiveness Roundtable, participants are invited to review the implementation of competitiveness reforms in the Kyrgyz Republic and the Republic of Moldova. Peer review discussions will be based on the analysis and conclusions of five draft OECD reports that address competitiveness issues in different sectors of the Kyrgyz and Moldovan economies. These reports include guidelines on how to improve competitiveness in selected policy areas. Data have been collected through requests to the government and private sector surveys. The analysis has been conducted through meetings of public-private working groups at the country level. Participants will be invited to provide comments on the draft reports and to share their experiences, challenges and solutions for developing and implementing competitiveness policies in the areas outlined in the reports: Access to finance for SMEs in the Kyrgyz Republic, with a focus on how to improve supply chain financing in agriculture; Skills for private sector development in the Kyrgyz Republic, with a focus on how to bridge the skills gap through public-private partnerships in agribusiness; Investment/export promotion in the Kyrgyz Republic, with a focus on how to upgrade the garment industry by linking to global value chains; SME policy development in the Republic of Moldova, with a focus on how to stimulate the development of a private business support service infrastructure; SME policy development in the Republic of Moldova, with a focus on how to increase the availability of sources of external financing and ways to strengthen the legal and regulatory framework for access to finance.

3 DRAFT AGENDA 3 WHO WILL BE THERE? The 2013 Roundtable will bring together high-level representatives and technical experts from the Eurasia region including national co-ordinators appointed as main contact points for the peer review process in each Eurasia country together with experts and practitioners from OECD member countries and partner organisations. The delegations from the countries under review (the Kyrgyz Republic and the Republic of Moldova) will be headed at Deputy Prime Minister level. HOW WILL THE DISCUSSIONS BE STRUCTURED? Each session will be introduced by the lead reviewer (from an OECD country) who participated in preparatory workshops in the two countries under review. Roundtable participants are invited to actively engage in the discussions by providing comments based on their own experience and sharing their knowledge with other participants on the issues being reviewed. Inputs from international experts and OECD staff will provide a framework for discussion, and all sessions will be facilitated by a moderator in order to bring out common conclusions. Simultaneous interpretation will be provided in English and Russian. Supported by the Knowledge Sharing Alliance Knowledge sharing is a core component of the OECD Strategy on Development (2012). The KSA helps to leverage OECD s multi-disciplinary expertise, work more closely and strategically with emerging and developing economies, and increase impact by engaging with multi- and bilateral organisations having extensive networks and/or field presence and implementation capacities. The KSA, which was co-created between the OECD, Germany and Korea, is open to all parties interested in knowledge sharing on an equal footing. Pilot projects include Inclusive Growth; Green Urban Development in Dynamic Asia; Policy Framework on Investment; and the Eurasia Competitiveness Programme. ABOUT THE PROGRAMME The OECD Eurasia Competitiveness Programme was launched in 2008 to support Eurasian economies in developing more vibrant and competitive markets both at the national and regional level in order to generate sustainable growth. The Programme involves the OECD, governments and the private sector in a comprehensive approach that includes regional dialogue, peer review, definition of reform priorities and assistance in implementation. The regional approach allows countries to define priorities and learn from their peers how to design and implement successful policies and institutions. The Eastern Europe and South Caucasus Initiative, launched in April 2009, covers the six countries of the EU Eastern Partnership: Armenia, Azerbaijan, Belarus, Georgia, the Republic of Moldova, and Ukraine. The Central Asia Initiative, launched in November 2008, covers Afghanistan, Kazakhstan, Kyrgyz Republic, Mongolia, Tajikistan, Turkmenistan, and Uzbekistan. Both Initiatives aim to help create a sound business climate for investment, enhance productivity, support entrepreneurship, develop the private sector, and build knowledge-based economies to make the region more competitive and attractive to foreign investment. Contact: Mr. Antonio Somma Head, OECD Eurasia Competitiveness Programme antonio.somma@oecd.org OECD Eurasia Competitiveness Programme 2, rue André-Pascal Paris CEDEX 16, France

4 DRAFT AGENDA 4 GLOBAL RELATIONS SECRETARIAT OECD EURASIA COMPETITIVENESS ROUNDTABLE 1ST SESSION PEER REVIEW OF COMPETITIVENESS REFORMS IN THE KYRGYZ REPUBLIC AND THE REPUBLIC OF MOLDOVA Wednesday, 4 December 2013, ROOM CC Registration and Welcome Coffee ITEM I ADOPTION OF THE AGENDA The Chairman of the Roundtable, H.E. Mr. Pawel Wojciechowski, Ambassador, Permanent Representative of Poland to the OECD, will present the Draft Agenda and introduce the speakers for each session. Action: for approval ITEM II KEYNOTE INTERVENTIONS Mr. Marcos Bonturi, Director, Global Relations, OECD will provide opening remarks on peer review as a tool for policy exchange amongst OECD and Eurasia countries Mr. Alikhan Baimenov, Chairman of the Agency of Civil Service Affairs of the Republic of Kazakhstan and representative of the Kazakhstani Co-chair of the OECD Central Asia Initiative, will make a statement on the relevance of peer review for the Eurasia region Ambassador Richard Boucher, former Deputy Secretary-General to the OECD will provide welcoming remarks. PEER REVIEW OF THE KYRGYZ REPUBLIC Mr. Jean-Claude Boidin, Head of Unit for Asia and Central Asia, DG DEVCO, European Commission will introduce the Peer Review of the Kyrgyz Republic and highlight the role of the European Union in the Central Asia region H.E. Mr. Djoomart Otorbaev, First Deputy Prime Minister of the Kyrgyz Republic will provide an opening statement on the Peer Review of the Kyrgyz Republic. ITEM III ACCESS TO FINANCE FOR SMES IN THE KYRGYZ REPUBLIC As in most countries in Eurasia, access to finance for SMEs in the Kyrgyz Republic is limited, with commercial banks and other lenders generally viewing SMEs as high-risk borrowers. Small companies face high interest rates and collateral requirements that they have difficulty meeting. The Secretariat has carried out a review of access to finance policies in the Kyrgyz Republic and has developed draft guidelines and recommendations on how to improve access to finance in the Kyrgyz Republic through supply-chain financing in the agricultural sector.

5 DRAFT AGENDA The Kyrgyz Republic will provide an opening statement and outline the main challenges the country faces related to access to finance The Secretariat will summarise the framework of analysis and the regional challenges related to access to finance As lead reviewer on access to finance, Mr. Tuna Sahin, Vice President of KOSGEB, Turkey, will present the key findings of the draft report and provide an overview of Turkey s experience in SME financing Open discussion The Kyrgyz Republic is invited to respond to comments and provide an overview of the next steps of reforms related to access to finance for SMEs, with a special focus on small- and medium-sized farms, that may be implemented in the Kyrgyz Republic Conclusion by the Chair and the Secretariat COFFEE BREAK ITEM IV SKILLS FOR PRIVATE SECTOR DEVELOPMENT IN THE KYRGYZ REPUBLIC In an increasingly knowledge-driven global economy, a well-educated workforce is one of the cornerstones of competitiveness. However, it is critical that workers education and training match the requirements of the job market, which is not always the case in the Eurasia region. The Secretariat has carried out a review of education and skills policies in the Kyrgyz Republic and has developed draft guidelines and recommendations on how to bridge the skills gap in the Kyrgyz Republic through public-private partnerships in education in agribusiness The Kyrgyz Republic will provide an opening statement and outline the main challenges the country faces related to skills for private sector development The Secretariat will summarise the framework of analysis and the regional challenges related to skills for private sector development As lead reviewer on skills development, Ms. Misug Jin, Senior Research Fellow, Korea Institute for Vocational Education and Training, will present the key findings of the draft report and an overview of Korea s experience with skills development Open discussion The Kyrgyz Republic is invited to respond to comments and provide an overview of next steps of reforms related to skills development, with a special focus on agribusiness, which may be implemented in the Kyrgyz Republic Conclusion by the Chair and the Secretariat

6 DRAFT AGENDA 6 ITEM V INVESTMENT / EXPORT PROMOTION (SME INTERNATIONALISATION) IN THE KYRGYZ REPUBLIC The increasing pressure of globalisation and the constraints of domestic markets have made the internationalisation of SMEs a priority for the Eurasia region. To support SMEs in this endeavour, governments will need to take steps to help local companies link up to global value chains through investment/export promotion, sector strategies, clustering and by upgrading their capabilities. The Secretariat has carried out a review of SME internationalisation policies in the Kyrgyz Republic and developed draft guidelines and recommendations on how to upgrade the garment industry by linking up to global value chains The Kyrgyz Republic will provide an opening statement and outline the main challenges the country faces related to investment and export promotion The Secretariat will summarise the framework of analysis and the regional challenges related to investment and export promotion As lead reviewer on investment and export promotion, Mr. Volker Genetzky, Ministry of Economics and Technology, Germany, will present the key findings of the draft report and provide an overview of Germany s experience with the internationalisation of SMEs Open discussion The Kyrgyz Republic is invited to respond to comments and provide an overview of the steps for reforms related to the internationalisation of SMEs that may be implemented in the Kyrgyz Republic Conclusion by the Chair and the Secretariat Buffet Lunch, Château de la Muette (Group Photo at 14:15) OPENING OF THE AFTERNOON SESSION Mr. Christos Kyriatzis, Head of Unit for International Affairs and Missions for Growth, DG ENTR, European Commission will introduce the Peer Review of the Republic of Moldova and highlight the role of the European Union in the Eastern Partnership region. PEER REVIEW OF THE REPUBLIC OF MOLDOVA H.E. Mr. Valeriu Lazăr, Deputy Prime Minister and Minister of Economy of the Republic of Moldova will provide an opening statement on the peer review of the Republic of Moldova. ITEM VI ACCESS TO FINANCE FOR SMES IN THE REPUBLIC OF MOLDOVA The Secretariat has carried out a review of access to finance policies in the Republic of Moldova and developed draft guidelines and recommendations on how to increase the availability of sources of external financing and on

7 DRAFT AGENDA 7 ways to strengthen the legal and regulatory framework in the sector The Republic of Moldova will provide an opening statement and outline the main challenges the country faces related to access to finance for SMEs The Secretariat will summarise the framework of analysis and the regional challenges related to access to finance As lead reviewers on access to finance, Mr. Harry Oldersma, Economic Counsellor, Netherlands delegation to the OECD, and Mr. Tuna Sahin, Vice President, KOSGEB, Turkey, will present the key findings of the draft report and provide an overview of The Netherlands and Turkey s experiences in supporting access to finance for SMEs Open discussion The Republic of Moldova is invited to respond to comments and provide an overview of the next steps of reforms related to access to finance for SMEs that may be implemented in Moldova. ITEM VII BUSINESS SUPPORT SERVICES IN THE REPUBLIC OF MOLDOVA The development of sound business support services is a key policy area to support the growth of SMEs. The type of support required by the SME sector depends on the specific type of activity of the firm and its stage of development. Support generally includes information and consulting services, accounting services and skills and management development. In Eurasia countries, the market for business support services is mostly underdeveloped. Private support service providers often lack the sophistication and quality required to establish confidence in the market. The OECD Secretariat has carried out a review of business support services in the Republic of Moldova and developed draft guidelines and recommendations on how to stimulate the development of a private business support service infrastructure The Republic of Moldova will provide an opening statement and outline the main challenges the country faces related to business support services The Secretariat will summarise the framework of analysis and the regional challenges related to business support services development As lead reviewer on business support services development, Mr. Volker Genetzky, Ministry of Economics and Technology, Germany, will present the key findings of the draft report and provide an overview of Germany s experience in developing business support services Open discussion The Republic of Moldova is invited to respond to comments and provide an overview of next steps for reforms related to business development support

8 DRAFT AGENDA 8 that may be implemented in Moldova Conclusion by the Chair and the Secretariat and Closing of the Peer Review of the Republic of Moldova ITEM VIII CONCLUDING REMARKS General Conclusion Chairman closes the event Roundtable closes and is followed by a reception hosted by the Ambassador of Poland to the OECD Official Residence