IMPROVEMENT OF INVESTMENT ENVIRONMENT & IMPACT on FDI April 2009 Mehmet Dündar Department Head...

IMPROVEMENT OF INVESTMENT IMPROVEMENT OF INVESTMENT ENVIRONMENT ENVIRONMENT

&& IMPACT on FDI IMPACT on FDI

April 2009April 2009

Mehmet DündarMehmet Dündar

Department HeadDepartment Head

Undersecretariat of Treasury Undersecretariat of Treasury

Prime MinistryPrime Ministry

Undersecretariat for TreasuryUndersecretariat for Treasury

Undersecretariat of Treasury2

OUTLiNEOUTLiNE

Improving Investment Climate: Why?

Improvement of Investment Climate Turkey’s Experience Coordination Council for the Improvement of Investment Environment (YOiKK)

Investment Advisory Council (iAC)

Major Achievements

Indicators of the Success

FDi Statistics of Turkey

International Indices and Reports

Experience Sharing Programme


IMPROViNG INVESTMENT CLIMATE

WHY?


INVESTMENT

CLiMATE

COMPETITIVENESS

FDI

GLOBALIZATION

Predictability

Economic Stability

Political Stability

Free Market Economy

investor-friendly framework

Improving Investment Climate: Why? Improving Investment Climate: Why?


IMPROVEMENT OF INVESTMENT CLiMATE

TURKEY’S EXPERiENCE


improvement of Investment Climate: Turkey’s Experienceimprovement of Investment Climate: Turkey’s Experienceimprovement of Investment Climate: Turkey’s Experienceimprovement of Investment Climate: Turkey’s Experience

Diagnosis on Problem Areas of investment Environment in Turkey

Determination of Priorities with All Relevant Parties

Design of an Appropriate Structure involving the Stakeholders


August 2000 September 2001 December 2001 December 2002

1st Report of FiAS

2nd Report of FiAS

WORKSHOP

P/2001/10 COUNCiL OF MiNiSTERS LEADiNG DECiSiON

P/2002/10 COUNCiL OF MiNiSTERS LEADiNG DECiSiON

Road Map for Reform Programme for improving the investment Environment

Diagnostic Study on investment Environment

Administrative Barriers Report

Public-private Workshop

• YOiKK was established.

• President: Undersecretary Of Prime Ministry

• President: Minister Of State Responsible For Treasury

• SME Technical Committee was established.

Improvement of investment Climate: Turkey’s ExperienceImprovement of investment Climate: Turkey’s ExperienceImprovement of investment Climate: Turkey’s ExperienceImprovement of investment Climate: Turkey’s Experience


Location of investment

Company Establishment Employment

Foreign Trade& Customs

Licensing

Intellectual Property Rights

Taxes and Incentives

Foreign Direct Investment Legislation

Investment Promotion SMEs

Coordination Council for the Improvement of Investment Environment (YOIKK)

Steering Committee

Investment Advisory Council

Corporate GovernanceResearch &

Development

Improvement of investment Climate: Turkey’s ExperienceImprovement of investment Climate: Turkey’s ExperienceImprovement of investment Climate: Turkey’s ExperienceImprovement of investment Climate: Turkey’s Experience

STRUCTURE


PRESiDENT

State Minister

YOİKK MEMBERS STEERiNG COMMiTTEE MEMBERS

PRESiDENT

Undersecretary of Treasury

YOİKK SECRETARiAT

MEMBERS

Deputy Undersecretary of Prime Ministry

Deputy Undersecretary of Ministry of industry and Trade

Deputy Undersecretary of State Planning Organisation

Deputy Undersecretary of Foreign Trade

Deputy Undersecretary of Ministry of Finance

Secretary General of TOBB

Secretary General of TUSİAD

Secretary General of YASED

Secretary General of TiM

MEMBERS

Undersecretary of Ministry of Finance

Undersecretary of Ministry of industry and Trade

Undersecretary of State Planning Organisation

Undersecretary of Treasury

Undersecretary of Foreign Trade

President of TOBB

President of TUSiAD

President of YASED

President of TiM

Presidents of Technical Committees

improvement of investment Climate: Turkey’s improvement of investment Climate: Turkey’s ExperienceExperienceimprovement of investment Climate: Turkey’s improvement of investment Climate: Turkey’s ExperienceExperience


YOiKK WORKiNG PRiNCiPLES

AGENDA SETTiNGAGENDA SETTiNG WORKING WORKING OUTCOMES OUTCOMES

• Recommendations of public institutions

• Recommendations of private sector

• Assessments in international indices and publications

• iAC recommendations

• Technical Committee Action Plans

• Basic policy guides

YOiKK

STEERiNG COMMiTTEE

TECHNiCAL COMMiTTEES

• Draft regulations

• institutional capacity building

• Recommendations related to enforcement

TThe Coordination Council for the he Coordination Council for the IImprovement of the mprovement of the Investment EnvironmentInvestment Environment (YOIKK)(YOIKK)

Council of Ministers is regularly informed about YOiKK studies.


MONITORiNG&EVALUATION

TThe Coordination Council for the he Coordination Council for the IImprovement of the mprovement of the Investment EnvironmentInvestment Environment (YOIKK)(YOIKK)

MethodologyStructure

• YOiKK mechanism is responsible for M&E

• Action plans

• informing Council of Ministers

• Annual progress reports

• international indices


Investment Advisory CouncilInvestment Advisory Council

Executives of leading multinational firms,Executives of leading multinational firms,

Heads of international institutionsHeads of international institutions

(iMF, World Bank, European investment Bank) and(iMF, World Bank, European investment Bank) and

TOBB, TUSiAD, YASED, TiM. TOBB, TUSiAD, YASED, TiM.

V. MeetingV. Meeting June 18, 2008June 18, 2008

iV. MeetingiV. Meeting June 11, 2007June 11, 2007

iii. Meetingiii. Meeting June 29, 2006June 29, 2006

ii. Meetingii. Meeting April 29, 2005April 29, 2005

i. Meetingi. Meeting March 15, 2004March 15, 2004

Investment Advisory Council of Turkey had 5 meetings so far.

Improvement of Investment Climate: Turkey’s ExperienceImprovement of Investment Climate: Turkey’s ExperienceImprovement of Investment Climate: Turkey’s ExperienceImprovement of Investment Climate: Turkey’s Experience


MAJOR ACHIEVEMENTS


Major AchievementsMajor Achievements

Investment Support and Promotion Agency of Turkey

Simplification of Business Start-Up

www.invest.gov.trwww.invest.gov.tr

indicators of Business Start-Up

TurkeyTurkey OECD OECD AverageAveragePre-Pre-

RefomRefom20020077

No. of No. of procedures procedures

1313 66 66

Day Day 3838 66 14.914.9

FDI Law

No Pre-entry Screening Requirement No Minimum Capital Requirement National Treatment


IMPACT OF INVESTMENT CLIMATE REFORM ON FDI


Indicators of Success - FDI StatisticsIndicators of Success - FDI Statistics

1,1 1,82,8

10,0

22,2

18,1

20,2

3,4

0

2

4

6

8

10

12

14

16

18

20

22

24

2001 2002 2003 2004 2005 2006 2007 2008

increased FDi inflows...

USD Billion

Source: Turkish Treasury, Provisional Data


72428,271

10,884

14,053

21,079

17,682

5,294

0

4,000

8,000

12,000

16,000

20,000

24,000

1954-2002 2003 2004 2005 2006 2007 2008

Upward Trend in Number of Companies with international Capital (Cumulative)

Source: Turkish Treasury, Provisional Data



World Investment Report 2008, UNCTAD


20052005 20062006 20072007

FDI Stock in TurkeyFDI Stock in Turkey(USD Billion)(USD Billion)

64.464.4 7979 146146

Turkey has been selected as 15th attractive country to Turkey has been selected as 15th attractive country to invest in 2008-2010 term. invest in 2008-2010 term.

Turkey has been 21st in terms of FDI stock; while it Turkey has been 21st in terms of FDI stock; while it

was 25th in 2006.was 25th in 2006.


# of countries# of countries Turkey’s RankingTurkey’s Ranking

Doing Business 2009Doing Business 2009 181181 5959




World Bank - Doing Business 2009 Report

Doing Business 2009 Report Turkey has displayed progress in;• employing workers, • protecting investors and• enforcing contracts.



Improvement in International Competitiveness

Heritage Foundation Economic Freedom Heritage Foundation Economic Freedom indexindex

20052005 20062006 20072007 20082008

No of No of countriescountries 161161 157157 157157 162162

Ranking Ranking of Turkeyof Turkey 112112 8585 8383 7474

Forbes / Best Countries for Forbes / Best Countries for BusinessBusiness

20062006 20072007 20082008

No of No of countriescountries 135135 144144 121121

Ranking of Ranking of TurkeyTurkey 6161 4848 4141

Tranparency International/Corruption Tranparency International/Corruption Perception indexPerception index

20062006 20072007 20082008

No of No of countriescountries 163163 180180 180180

Ranking of Ranking of TurkeyTurkey 6060 6464 5858



Turkey’s Experience Sharing Program Turkey’s Experience Sharing Program on Investment Climate Reformon Investment Climate Reform

IImportance of investment climate on FDI inflowsmportance of investment climate on FDI inflows,, Success stories on the country experiencesSuccess stories on the country experiences,, CCorporate capacity requirementsorporate capacity requirements,, IImportance of public private partnership in reform promportance of public private partnership in reform process,cess, Turkey’s hands-on experience in the investment climate reformsTurkey’s hands-on experience in the investment climate reforms,, The main criteria behind Turkey’s success in implementing reform The main criteria behind Turkey’s success in implementing reform

programprogram,, AAwareness building in disseminating the improvements in the wareness building in disseminating the improvements in the

investment climate reform program. investment climate reform program.

Content of the Program

TTwo main linkageswo main linkages: G: Global trends and Turkey’s experience in thelobal trends and Turkey’s experience in the

improvement of investment climate. improvement of investment climate.

The program aims at providing information on:


Workshops/Case Studies in Creating Platforms Necessary for Improvement of Investment Environment

FDI legislationNegotiations on Bilateral Investment Treaties (BIT’s) Company establishmentCorporate governance Customs & Foreign Trade Licensing Small and Medium Size Enterprises (SME’s) Investment Support and Promotion Agency of Turkey

Alternative Topics Offered in the Program:

Diagnosis Study and Awareness Building

Building Structures and Platforms for Reform

Global Trends in improving the Investment ClimateTheme 1

Theme 2

Theme 3

Theme 4

Turkey’s Experience Sharing Program on Investment Climate Reform


Application AddressApplication Address

Address:Address: İnönü Bulvari No:36 06510 İnönü Bulvari No:36 06510

Emek/ ANKARA Emek/ ANKARA

Phone:Phone: + 90 312 212 5877 + 90 312 212 5877

Fax:Fax: + 90 312 212 8916 + 90 312 212 8916

E-mail:E-mail: [email protected] [email protected]

www.yoikk.gov.tr

Undersecretariat of Treasury

General Directorate of Foreign investments

IMPROVEMENT OF INVESTMENT ENVIRONMENT & IMPACT on FDI April 2009 Mehmet Dündar Department Head...

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