This World Bank Group-OECD presentation was made during their joint meeting on making investment climate reforms happen in April 2015. The presentation focuses on how collaboration between the World Bank and the OECD can enhance positive investment climate reforms. For more information about OECD and World Bank investment policy tools, visit http://www.oecd.org/investment and http://www.worldbank.org/en/topic/trade/brief/trade-competitiveness

1. FROM INVESTMENT POLICY DESIGN TO IMPLEMENTATION:
MAKING INVESTMENT CLIMATE REFORMS HAPPEN
COLLABORATION BETWEEN
THE OECD AND WBG
April 20, 2015

2. Outline
I. OECD’s Investment Work
II. WBG Trade and Competitiveness Investment Policy & Promotion Work
III. OECD and WBG Collaboration
1

3. Outline
I. OECD’s Investment Work
II. WBG Trade and Competitiveness Investment Policy & Promotion Work
III. OECD and WBG Collaboration
2

4. Improving the Investment Climate – OECD Investment
Work
Policy Framework for Investment
Investment Policy Reviews
Regional cooperation on investment reform
• Southern African Development Community (SADC)
• Association of Southeast Asian Nations (ASEAN)
Sectoral work
• Policy Guidance for Investment in Clean Energy Infrastructure
• Private Participation on infrastructure investment
3

5. Horizontal
issues
Investment
policy
Investment
promotion and
facilitation
Trade
Competition
Tax
Corporate
governance
Policies for
enabling
responsible
business
conduct
Developing
human
resources for
investment
Public
governance
Infrastructure
investment
Investment
framework for
green growth
Financing
investment
A tool for investment climate
reform taking into account
different dimensions of
development
Social
Environmental
Economic
The 2015
Policy
Framework for
Investment
4

6. Our Objective – A Sound Enabling Environment for
Domestic and Foreign Investment
Mitigating
investor risk
A sound enabling environment
Integrated
frameworks
Participatory
approaches for
better policy
coherence
Full country-
ownership
Investment Policy Review: Recommendation
5

7. OECD Support to Investment Climate Reform
Toward Implementation
OECD assessment – Investment Policy Reviews
• Peer learning (regional, across regions, OECD
non-OECD)
• Translation of recommendations into operation
activities
• Measuring and Monitoring: Development of
indicators
=> Partnership with development partners to
support and execute reforms
6

8. Outline
I. OECD’s Investment Work
II. WBG Trade and Competitiveness Investment Policy & Promotion Work
III. OECD and WBG Collaboration
7

9. Investment Policy and Promotion (IPP): Three Key Ideas
Investment policy is not about choosing between foreign and
domestic investment
It is about connecting them through global value chains. Trade and investment are
two sides of the same coin.
1
Foreign investment is not a transaction; it is a relationship
An investment policy strategy should not only pursue attraction, but also enable the
establishment, retention and linkages with the domestic productive sector, thereby
maximizing benefits from investment.
2
Not all types of investment are the same
Different types of investment have different effects on socio-economic development
and thus require different policies. Countries should align the type of investment with
different policies
3
8

10. Investment Cycle
Vision and Strategy
Investment AttractionLinkages
Investment Entry &
Establishment
Retaining Investment
• Investment
promotion
• Locational incentives
• Eliminating barriers
to FDI
• Streamlining entry
procedures
• Elimination of
performance
requirement
• Opening FDI in
services
• Behavioral
incentives
• Non-equity modes
of investment
(NEM)
• Upgrading
investment
protection
guarantees
• Mechanizing
investment retention
and confidence
• Improving
investment aftercare
9

11. Different Types of Investment Lead to Different Socio-
Economic Impacts and Different Patterns of Trade…
Natural
resource-
seeking
Market-
seeking
Efficiency-
seeking
Strategic-
asset
seeking
9

12. Assistance Delivery Model
Outcomes
• Updating regulatory
frameworks
• Streamlining
administrative and
regulatory frameworks
• Developing systems that
foster transparency and
predictability.
• Incorporation of new
technologies to improve
government delivery of
services
Activities
• Assisting governments
in identifying and
prioritizing investment
policy and promotion
measures
• Concrete
recommendations
• Supervision/implement
ation support
Impacts
• Increase in generation
of domestic and
foreign investment
• Increase in investment
retained
• Cost savings for
investors and host
countries resulting
from reforms
• Greater regulatory
transparency and
strengthening of rule of
law
10
Our mission is to catalyze investment climate reforms that foster business
competitiveness, connect firms to global markets, maximize the benefits of
private investment, and create jobs.

13. WBG Instruments of Support
• Developing FDI strategy
• Reducing investment
restrictions, barriers and
procedures
• Investment
promotion/facilitation
• Improving effectiveness of
investment incentives
• Strengthening investor
protection and aftercare to help
retain and expand FDI
• Maximizing linkages and
positive spillovers to local
economy
• Promoting freer regional
investment flows
• Implementation of international
agreements to improve
investment climate
Technical Assistance
• Investment Reform Map:
Providing a logical framework
enabling clients to visualize the
different types of FDI and
setting priorities to design
coherent and concrete
investment policy and
promotion reform agendas
• Rapid IC Advisory: Supporting
IC reforms leveraging
benchmarks and indicators
 Doing Business
 FDI regulations
 Investor motivation surveys
 World Investment and
Political Risk Indicators
 Enterprise surveys
Diagnostics
• Mozambique Competitiveness
and PSD Project ($25million):
 Focusing on business
environment/investment
climate reforms, SME
matching grant facility,
training institutes capacity,
etc.
 IC TA program to government
for the design and
implementation of licensing
reforms in key sectors
(industry and commerce).
• Ethiopia ($250million):
Contributing to job creation by
attracting investments and
improving enterprise
competitiveness in the target
industrial zones and linked
domestic enterprises.
Lending
(Development Policy Operations
and Investment Lending)
11

14. Global Presence (in over 60 countries)
Africa ECA MNA EAP SA LAC
Current • Guinea
• East Africa
(multiple
countries)
• Ethiopia
• Kenya
• South Sudan
• Regional
Program for
West Africa
(multiple
countries)
• Equatorial
Guinea
• Armenia
• Albania
• Belarus
• Bosnia and
Herzegovina
• Georgia
• Kosovo
• Kazakhstan
• Kyrgyzstan
• Tajikistan
• Turkey
• Turkmenistan
• Egypt
• Jordan
• Kingdom of
Saudi Arabia
• Kuwait
• Oman
• Tunisia
• Morocco
• Cambodia
• Mongolia
• Myanmar
• Pacific Islands
• Bangladesh
• Pakistan
• Nepal
• India
• Bhutan
• Dominican
Republic
• Mexico
• Colombia
• Bolivia
• Brazil
• El Salvador
Pipeline • Croatia
• Moldova
• Western
Balkans
(multiple
countries)
• Romania
• Egypt • Timor Leste
• Laos
• Iraq • Peru
• Paraguay
• Mexico
• Colombia
12

15. Outline
I. OECD’s Investment Work
II. WBG Trade and Competitiveness Investment Policy & Promotion Work
III. OECD and WBG Collaboration
13

16. OECD and World Bank Collaboration
Interaction and information sharing on each other’s activities:
• PFI taskforce: IPP team collaborates and contributes to the PFI update
• WBG Investment Climate Advisory Group: OECD investment team invited to join
Technical assistance to countries:
Coordination between PFI and T&C IPP Reform Work in various countries:
• ASEAN: Myanmar, Cambodia, Laos
• MENA: Tunisia, Jordan and Egypt
Thought leadership:
Joint exploration and discussion of cutting-edge issues on investment climate-related
issues
Policy advocacy:
Organization and participation in events to promote greater engagement with investment
stakeholders
14

17. Examples: OECD - World Bank Group Cooperation in
Myanmar
• OECD introduces
Myanmar investment
climate counterparts
to WBG
• WBG participation in
assessment, task
force meetings
• WBG participation in
public launching of
the IPR of Myanmar
Myanmar IPR
• WBG formulation
of a technical
assistance
programme
based on the IPR
recommendations
and previous
cooperation
Identification of
areas of
implementation
• Roll-out of WBG
and implemented
country
programme
• OECD contributes
to specific
elements of the
programme
Program
implementation
Work starting in
Lao PDR and
Cambodia in 2015
15

18. Examples: OECD - World Bank Group Cooperation in
Tunisia
• The WBG had
ongoing projects on
investment climate:
• Support on a new
investment law
according to good
practices
• Transparency and
inventory of
investment
incentives
• OECD also had
capacity building
initiatives in the
country
Engagement
• Both institutions
shared
views/comments/upda
tes on the process to
modernize investment
legal framework.
• OECD & WBG joint
work on institutional
mapping and design of
institutional
coordination
framework for
investment policy and
promotion
Diagnostic
• WBG: New investment
law
• OECD & WBG:
Institutional
coordination
mechanism for IPP
Program
implementation
16

19. Looking Forward
17
Creating an international platform on Investment for Development
• Post-2015 agenda – aid alone does not suffice
Roundtable on implementing policy reform for investment
• Convened by the WBG, the OECD, in conjunction with other
international organizations (October 2015)

20. THANK YOU