Conceptualising an Investment Facilitation Index...• MIKTA (April 4, 2017) • China (April 21,...
Transcript of Conceptualising an Investment Facilitation Index...• MIKTA (April 4, 2017) • China (April 21,...
Conceptualising an Investment Facilitation Index
Dr. Axel Berger, Ali Dadkhah, Dr. Zoryana Olekseyuk
Regional Seminar on Investment Facilitation for Sustainable Development
UN-ESCAP, Bangkok, 12 March 2019
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Discussions about investment facilitation at various levels:
• Multilateral Level:
– Agenda 2030 for Sustainable Development and Addis Ababa Action Agenda
– G20 Guiding Principles for Global Investment Policymaking
– WTO Structured Discussion
• International Organizations:
– UNCTAD Investment Facilitation Action Menu
– OECD Framework for Investment Policy Transparency and the Policy Framework for
Investment
• Regional Level:
– APEC Investment Facilitation Action Plan
– High-Level Trade and Investment Facilitation Forum for Development, Nigeria, 2017
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Investment Facilitation - Background
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Research Project of the German Development Institute: “Investment
Facilitation for Sustainable Development”
Research gaps
• Conceptualising investment facilitation
• Measuring impact
• Sustainability orientation
Contribution
• This project aims at generating research findings informing the stakeholders involved in rules-making
on investment facilitation
Outputs:
• Develop an Investment Facilitation Index, quantifying the current level of practice on investment
facilitation at the country level
• Ex ante impact assessments of proposed reforms or trade agreements
• Academic articles, policy briefs, background notes, data visualisation
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Project overview
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• Proposals in WTO:
• Negative approach:
• Positive approach:
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Investment Facilitation Index: Scope
• Russia (March 30, 2017)
• Argentina and Brazil (April 24,2017)
• MIKTA (April 4, 2017)
• China (April 21, 2017)
• FIFD (April 21, 2017)
• Brazil (December 13, 2017)
• Market Access
• Investment Protection
• Government Procurement
• Investor-State Dispute Settlement
• Transparency and Predictability
• Mechanisms for Dialogue
• Application Process
• National Focal Point
• Single Electronic window
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IFI Policy Areas
Source: Authors
Policy Area Description
Transparency and Predictability
• Provide full, clear and up-to-date picture of investment regime, including advance notice of
proposed changes.
• Promote legislative simplification including plain language drafting.
Electronic Governance
• Establish single window and use information and communication technology.
• Apply new technology to improve information, application and approval processes.
Cooperation
• Make use of international and regional initiatives aimed at building investment expertise,
including information sharing.
• Provide institutionalised mechanism to support domestic inter-agency coordination.
Application Process
• Establish clear criteria and transparent procedures for administrative decisions including
investment approval mechanisms.
• Reduce the number and complexity of fees and charges.
Outward Investment • Provide comprehensive information available to the foreign investors by home countries.
Focal Point and Review
• Provide mechanisms to improve relations or facilitate contacts between host governments
and relevant stakeholders.
• Receive complaints from investors and/or help them solve difficulties or to carry out policy
advocacy.
• Encourage development of effective mechanisms at reasonable cost for resolving disputes
including private arbitration services.
• Provide framework to identify and address problems encountered by investors.
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IFI Country Coverage
Low Income
Lower Middle Income
Upper Middle Income
High Income
World Bank Development Status Created with DataWrapper
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Number of Countries per Decile
A) Inward FDI Stock: Countries per Decile B) Outward FDI Stock: Countries per Decile
Note: 69 countries are currently engaged in the Structured Discussion at the WTO.
We have data on the Inward FDI Stock of 197 countries including all 69 participating countries.
For Outward FDI Stock we have data on 173 countries, among which 68 are participating countries (Data on
Myanmar's Outward FDI Stock is missing).
Created with DataWrapper
© Deutsches Institut für Entwicklungspolitik (DIE)© German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE)
• Sources of Information for the IFI Measures:
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IFI Measures
• Proposed IFAs in WTO
• WTO TFA
• OECD STRI
• OECD TFI
• APEC IFAP
• Regional Trade Agreements
(CETA, CPTPP)
• UNCTAD Single Window
• World Bank Doing Business
Indicators
• WEF Global Competitiveness
Report
• Countries Rules and Regulations
Related to Investment Facilitation
There are 117 measures in the IFI.
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IFI Measures
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Measure Code Categories Sub-categoriesNumber of
Measures
A CooperationInternal
12External
B Electronic GovernanceICT
22Single Window
C Application ProcessFees and Charges
23Formalities
D Focal Point and Review
Alternative dispute resolution
25Appeal
Co-operation and information-sharing mechanisms
Ombudsperson
E Outward Investment
Promotion Services
8Insurance and guarantees
Other measures
F Regulatory Transparency and Predictability
Information availability
27Involvement of the trade community
Notification
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• IFI Scoring Scheme
• (2) corresponds to the best performance
• Transform qualitative regulatory information into a multiple binary scheme
• Variables representing measures coded with 0, 1, or 2: to reflect the state of
implementation
• Variables are broken down on thresholds of 0/1/2 where variables depend on
numerical answers
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IFI Scoring Scheme
Measure Answer
Establishment
of a focal point
(Ombudsman)
(0) There is no Focal Point; (1) A Focal Point is
planned or in the process of implementation; (2)
There is a Focal Point
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IFI: Weighting the Policy Areas - Survey
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IFI - Sample Countries (Equal Weight)
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
Canada Brazil Colombia China
Cooperation Electronic Governance Application Process Focal Point and Review Outward Investment Regulatory Transparency and Predictability
© Deutsches Institut für Entwicklungspolitik (DIE)© German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE)
• Development of the Policy Shock
• Creating a template based on the IF Model Agreement
• Mapping articles of the Model Agreement to the measures in the IFI
• Change the answer and contribution of the measure based on the IFI
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IFA Policy Shock
Measure Weight Answer Scores ContributionModel
Agreement
Contribution
After
Electronic submission
of documents accepted0.010309278 0 0 0
Article 4:
Electronic
documents
0.02173913
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