Objective
The objective of the Compact is to lay the economic and structural policy foundations for sustained growth and development in South Eastern Europe. The Compact sets out a number of commitments for policy reform which countries in the region need to implement in order to create a robust and sustainable market economy and to encourage increasing local and foreign direct investment.
Description
The Investment Compact was formally approved at the meeting of Working Table II in February 2000 in Skopje. A draft Roadmap for the implementation of the Compact was developed, setting out a three-phase approach:
- Diagnosis of current investment conditions in the countries of the region (already finished).
- Development of country specific policy recommendations and design of regional policy initiatives.
- Monitoring of progress in policy implementation, improvement of the investment conditions and
investment performance in South East Europe.
The Compact focuses on a comprehensive policy package including: banking; capital markets; corporate governance; privatisation; foreign direct investment (FDI); commercial law; fighting corruption and bribery; money laundering; system of justice; accounting regimes and practices; trade and customs regime and practices; small and medium-sized enterprise formation/support; public procurement regime and practices; investment guarantee schemes; and public and private partnerships.
Implementation to date
A Project Team under the co-chairmanship of the OECD and the UK was established including the SEE countries, members of the Stability Pact and relevant international organisations. Austria has succeeded the UK as Co-Chair - with OECD - of the Investment Compact Project Team.
The governments of the SEE countries have nominated their national contact points and formed country economic teams for the Compact. The performance of the individual countries vis a vis the Investment Compact will be one of the main tools to measure implementation of reforms.
The Ministerial Declaration for Attracting Investments signed in Vienna on 18th of July as well as the new edition of the Monitoring instruments launched this November in Paris are significant signals for the imrovement of the investment climate made made by the countries of the region.
