Overview of the OECD Investment Compact for South East Europe

What is the Investment Compact for South East Europe?

Launched in 2000, the OECD Investment Compact for South East Europe is designed to increase regional stability in Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Kosovo under UNSCR 1244/99, the Former Yugoslav Republic of Macedonia, Moldova, Montenegro, Romania and Serbia. The objective is to help policy-makers find sound policy solutions to improving the business climate for domestic and foreign investment in the region. The regionally owned South East Europe Investment Committee oversees five Working Groups charged with developing action plans for the implementation of priority reforms.

Policy dialogue
and analysis

The Investment Compact for South East Europe has promoted open debate and dialogue between the private and public sectors at national and regional levels. The programme uses policy benchmarking indexes to gauge progress in implementing policies to stimulate investment, growth and employment and to promote a competitive business climate. The Investment Reform Index and the Small and Medium-sized Enterprises (SME) Policy Index monitor, monitor and assess policy and institutional strengths and weaknesses. The work of the Investment Compact for South East Europe is structured around four pillars:

• Assess and monitor progress in investment policy reform
• Support implementation of investment reform
• Foster private sector engagement in the reform process
• Ensure high-level political support for policy reform to improve the business climate.

Results achieved

Results are discussed and disseminated through policy dialogue and through publications. In recent years the programme has:

• Enhanced the investment environment by accelerating reforms, moving countries closer to OECD standards, and conducting sector-specific investment promotion events
• Increased policymakers’ capacity through the transfer of OECD methodologies, tools, and instruments, taking into account the specific circumstances of the region
• Supported pro-private sector reforms by helping define priorities, communicating them to policymakers and supporting policy dialogue processes
• Encouraged regional ownership of the reform process with the launch of the South East Europe Investment Committee and regional thematic working groups to improve policy dialogue and the effective implementation of investment reforms