2nd WAIPA ILO Investment Facilitation Course

Transcription

1 2017 2nd WAIPA ILO Investment Facilitation Course Effective Investment facilitation and sustainable development Turin, Italy SUMMARY & OUTCOMES

2 Background information Foreign Direct Investment (FDI) is vital to maintain and strengthen economic growth, integrate countries into the global economy, boost technological innovation and know-how, enhance skills transfer and contribute to the creation of decent work. But not all investments have the same development impacts. Getting the most out of FDI requires strategic thinking. Investment Promotion Agencies (IPAs) are the public face of governments seeking to increase investment and promote economic and social development. They are often instrumental in negotiating investment treaties and concluding investment contracts; and manage investment relationships through after care services. This course was designed to help IPAs to strengthen their investment promotion and facilitation capacities and to expand their aftercare services. More broadly, to enhance the development impacts of FDI flowing into their countries, particularly concerning the creation of more and better jobs. The second edition of the training was jointly organized by WAIPA (World Association of Investment Promotion Agencies) and the International Labour Organization (ILO). Objectives Through the presentation of best practices and tools on investment promotion and after care services, participants gained a better understanding of how to improve investment facilitation, converting possible leads into real breakthrough investment projects. Furthermore, driven by the 2030 Agenda for Sustainable Development, participants examined actively the positive links between FDI, Decent Work and Sustainable Development. At the end of the course, participants: Gained knowledge on the latest trends and opportunities regarding investment facilitation Had a better understanding on how to implement a system of after care services and investment promotion measures Understood the positive links between FDI, Decent Work and Sustainable Development 2

3 Structure Over the three and a half days, working sessions were presented on the following topics: Day 1 and day 2 1. FDI, employment and sustainable development: This session identified how FDI can be more effectively harnessed to create more and better jobs, boost skills development and technology transfer, and increase business linkages with local enterprises. The discussion focused on case studies from countries which have successfully transformed their approach to attracting FDI, as well as recent trends in both host and home countries expectations of investor contributions to sustainable development. 2. After care services: Investment promotion does not end with signing the MoU or investment agreement. This is where perhaps the most important phase of the process starts. The content of this training section spelled out those techniques and process-oriented standard operating procedures that can be undertaken to affirm the investor s decision and boost your country s reputation as a great place to do business. 3. Multi-stakeholder dialogue: An IPA s promotional activities and after care services can be significantly enhanced through facilitating a constructive dialogue between the investors and the workers and enterprises impacted by the investor s operations. This is particularly true for large investment projects with significant community impacts. This session focused on ways in which IPAs can facilitate multi-stakeholder dialogue on issues of mutual concern between investors and communities, to smooth the establishment and operation of the investment and higher levels of investor and community satisfaction. Day 3 & Day 4 1. Investment promotion: In the ever-increasing search for FDI, many IPA staff are still developing or fine-tuning their approaches to targeting investors and providing investment advice and other services. This session provided an overview of good practices and lessons learned, stressing in particular the investors point of view 3

4 2. Empowered analytics: There can be no progress without an accurate tool to monitor results. Empowered analytics enables government agencies to gauge the success or failure of both their policy framework and their incentive packages for investors. What are the best indicators and which are the top three analytics that can ensure that your IPA is an excellent service provider. 3. Regional Investment: Regional investment offers more avenues than is often recognized. The session put the emphasis on what it takes to leverage your regional competitive advantages for investment agencies. It also advocated for the steps required to balance political policies with trade and investment policies. Partner The International Labour Organization (ILO) is devoted to promoting social justice and internationally recognized human and labor rights. Today, the ILO helps advance the creation of decent work and inclusive growth. Its tripartite structure provides a unique platform for promoting decent work for all women and men. The World Association of Investment Promotion Agencies (WAIPA) represents over 170 IPAs in almost 130 countries. Amongst its core mandate is to provide technical assistance to IPAs on strategies and policies towards investment promotion/facilitation and the sharing of knowledge and best practices. Participants Participants from the following countries took part in the 2 nd WAIPA ILO Investment Facilitation Course: Bosnia and Herzegovina, Brazil, Cabo Verde, Democratic Republic of Congo, Cote 4

5 D Ivoire, Dominican Republic, El Salvador, Grenada, Italy, Lesotho, Malaysia, Mali, Pakistan, Portugal, Saint Lucia, South Africa, United Republic of Tanzania, Turkey, Uganda. Resource persons came from the following institutions and countries: WAIPA, ILO, UNCTAD; Germany, United Kingdom, Kazakhstan, Turkey and France. Highlights Day 1 In the opening session of the training facilitation course WAIPA CEO Bostjan Skalar spoke about the Current State of Investment Promotion Agencies: trends, opportunities, and challenges. This session gave insight into a paradigm shift regarding FDI, its future trends and recommendations for IPAs. Starting with a look at the current state of FDI, this session further elaborated on the changes in the FDI narrative and possible challenges, uncertainties but also opportunities. Further it reflected on new investment promotion patterns and investment philosophies for IPAs as well as the role of WAIPA. Linkages and the focus on strategic planning, as well as the empowerment of IPAs within their countries were discussed with the participants. After Skalar s contribution Ralf Krueger from ITCILO gave an insight to the successful work ITCILO is doing over the last decades. As a large focus of this training course was interaction with the participants an exercise on the positive and negative effects FDI can have on development was held. Key points were that FDI is a valuable resource package that impacts in many ways, not just financial. This led to an exercise conducted by Emily Sims from ILO with focus on decent work resulting from FDI. The day was rounded up by Paul Wessendorp, Chief of the Investment Promotion Section from UNCTAD reflecting on the 2030 Agenda for Sustainable Development. He gave insight on 5

6 UNCTADs work, as well as an overview over global FDI in 2016, diverging trends among the regions and prospects for He furthermore spoke on the SDG investment gap and the significant potential the private sector has, as well as how SDG projects can be promoted. Key message of the day was that cooperation among IPAs is of great importance. Day 2 The second day of the facilitation course began with a presentation of FDI expert Andreas Dressler. This session focused on the interaction between the IPA and the investor at various stages of the investment process and addressed the practical aspects of providing valuable support to investors, taking into consideration the resources available to the IPA and the challenges of providing a high level of service to all companies. Dressler said that effective facilitation is an effective door opener for potential investors and that effective facilitation helps differentiation and in the end, is essential for winning projects and how damaging poor facilitation can be and what investors value e.g. responsiveness, understanding, initiative beyond the brief, flexibility, personalization, transparency, and honesty. This session was followed by Paul Wessendorp sharing UNCTADs insight in aftercare, its vital importance, challenges, and best practices. The day was rounded up by Prof Maria Alejandra Gonzalez-Perez with a presentation on Colombian FDI policy and the promotion of decent work. Day 3 The best practices day was opened by Tord Johnson from the Department for International Trade. He focused on FDI promotion practices and SDGs. He stressed that the changing agenda brings us closer together, not being rivals but partners and that there is a need for a better understanding between IPAs reference to WAIPA. Outward investment promotion trends will indeed help this collaboration to further grow in the future. He also mentioned the UKs new 6

7 prosperity fund, the current situation of DTI and already successful cooperation with other IPAs the DTI undertakes. This session was followed by Martin G Kaspar talking about the private sector perspectives and expectations and his personal experiences of from a German SME company. Companies need IPAs particularly for information and guidance. With helpful cooperation, even smaller companies may grow bigger, i.e. even an initially small investment might with the right environment grow substantially, and should not be neglected by IPAs. One particular problem is that sometimes IPAs are virtually unknown; or their services are not valued as they should be. Companies often prefer to speak to investment bankers or even consulting companies, even though rates are very high than to experts of IPAs for free. Therefore, IPAs should reflect on that. During the course of the training several ways were discussed how a resp. IPA could position itself better or put a specific focus on sectors etc. Dilyara Tektigulova from KAZNEX INVEST shared her insight in best practices and the investment promotion approaches of KAZNEX INVEST. She elaborated on the work KAZNEX INVEST has been doing so far and the lessons learned from previous approaches and the new investment promotion strategy of her agency which include the development of a national strategy, the upgrading of the status of the IPA, the preparation of investment project in accordance with national standards. The last session of the day was given by Samet Akyüz from ISPAT who presented his study on FDI and its possible impacts on economic development, particularly technology spillover effects of FDI (in horizontal and vertical dimensions) and gave rationales on why linkage promotion matters. Day 4 The first session of the day was given by Phillipe Yverginaux from Business France on aftercare. He looked at the IPA impact evaluation: from KPIs to measuring the actual value brought by the IPA. Furthermore, he reflected on the international cooperation between Business France and 7

8 other partners including WAIPA as well as the importance of IPA impact and how to define this impact and added value. The course ended up with closing remarks from WAIPA Deputy CEO Ismail Ersahin. He discussed with the participating colleagues about their expectations and on how WAIPA could bring more value to them and what topics and issues next trainings and activities should focus on. He announced new WAIPA Training Center in Istanbul. He thanked to ILO, all participants and resource persons and invited all member IPAs to raise their candidacies for upcoming Steering Committee elections to shape the future of our World Association. Outcomes: Overall, the role of the IPAs in their respective countries was discussed. While some IPAs are placed in a prominent position within the government structures, others face difficulties by lengthy reporting chains and unclear structures and funding. Thus, not only a better cooperation between IPAs is needed - here one has to note the very valuable best practices inputs by the Department for International Trade of the UK, KAZNEX INVEST, ISPAT and Business France but also their focus on the importance of learning from each other in a rapidly changing environment IPAs face today - but on the other hand also a better cooperation of an IPA within their respective country or governmental structures is of vital importance. Furthermore, the inclusion of the business point of view was highly appreciated by all sides. The participants all shared the view that this was a very beneficial part of the training course and it would help them understand their importance and their priority much better by receiving advice on what the businesses need and what their situation easier for better understanding and ultimately successful investments. WAIPA will continue this path in bringing the IPAs closer to the business point of view for better understanding and fruitful cooperation. WAIPA thanks all participants and all partners, among others ILO, that contributed to this successful 2 nd Investment Facilitation Course Effective investment and sustainable development in cooperation with ILO from at ITCILO in Turin, Italy. 8