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Methodology l Scope l Analytical benefits l Contact
The OECD's work to improve business climates in non-OECD economies is conducted through a common and comprehensive framework for policy evaluation, priority definition, capacity building support, and reform implementation: the Business Climate Development Strategy (BCDS).
The Business Climate Development Strategy is a novel, hands-on approach to provide acountry-specific support in reform prioritisation and implementation. An integrated approach drawing upon OECD tools and guidelines, such as the Policy Framework for Investment, the Investment Reform Index, and the Guidelines for Multinational Enterprises, the BCDS aims to support individual countries in improving their business climate by providing a horizontal evaluation of their investment-related policy reforms, support in reform priority definition, and assistance in the implementation of selected priority reforms.
The BCDS is a collaborative process that involves governments, private sector representatives, and other stakeholders.
The Business Climate Development Strategy is structured around three steps:
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A comprehensive evaluation of selected issue areas relevant to business climate and investment policy relative to OECD best practice is performed.
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Prior reform efforts are leveraged and integrated into the evaluation.
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Additional sector-specific policy indicators are incorporated into the evaluation to support economic diversification.
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Detailed assessment frameworks are prepared in consultation with international experts, governments and experts from the country concerned, as well as staff from the OECD Secretariat. These frameworks systematise the collection and assessment of qualitative and quantitative data. The qualitative indicators in the assessment frameworks use a scoring system of 1 to 5, with explicit criteria for each score: A score of 1 represents a situation of minimal policy development, while a score of 5 represents a situation equivalent to best practice in the OECD area.
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After submission of these assessment frameworks and consultation with government leaders and the private sector, time-bound strategic priorities for reform are defined.
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Targeted support is provided in the design and implementation of reform, based on specific requests from the partner country.
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Advise in the design and implementation process of business climate reform policies is given at a national and regional level.
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Results and impact of business climate reform policies is measured and evaluated.
The Business Climate Development Strategy encompasses a comprehensive set of policy dimensions that affects the business climate, following the OECD Policy Framework for Investment:
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Business operational environment: Investment prolicy and promotion, privatisation policy and public-private partnerships, tax policy and administration, trade policy and facilitation, better business regulation, SME policy and promotion
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Rule of law: Anti-corruption, corporate governance, business law and commercial conflict resolution
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Factor markets: Infrastructure, human capital, access to finance
The Business Climate Development Strategy provides the following analytical benefits to its target countries, amongst others:
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A single comprehensive document defines abusiness climate reform strategy based on best practice in OECD countries.
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Targeted, on-demand support strengthens the implementation and business climate-related reforms .
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Government leadership, co-ordination and consensus reinforces the selected reform priorities and implementation effort in a broad range of policy areas affecting the business climate.
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A rigorous self-evaluation process for governments increases buy-in amongst ministries and government agencies.
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Continuous private sector involvement guarantees awareness and evaluation of the national business climate development strategy across the public and private spheres.
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A comprehensively defined business climate development strategy increases visibility and recognition of national business climate reform efforts.
Currently, Business Climate Developement Strategies are being prepared for Egypt and Morocco, with a target release date to coincide with the 2009 MENA-OECD Ministerial Conference. A further BCDS for Tunisia is scheduled for release in 2010.
For further information on the Business Climate Development Strategy, please contact Anthony O'Sullivan, Head of the Private Sector Development Division, at anthony.osullivan@oecd.org.
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