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
Undersecretariat of Treasury4
INVESTMENT
CLiMATE
COMPETITIVENESS
FDI
GLOBALIZATION
Predictability
Economic Stability
Political Stability
Free Market Economy
investor-friendly framework
Improving Investment Climate: Why? Improving Investment Climate: Why?
Undersecretariat of Treasury6
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
Undersecretariat of Treasury7
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
Undersecretariat of Treasury8
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
Undersecretariat of Treasury9
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
Undersecretariat of Treasury10
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.
Undersecretariat of Treasury11
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
Undersecretariat of Treasury12
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
Undersecretariat of Treasury14
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
Undersecretariat of Treasury16
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
Undersecretariat of Treasury17
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
Indicators of Success - FDI StatisticsIndicators of Success - FDI Statistics
Undersecretariat of Treasury18
World Investment Report 2008, UNCTAD
Indicators of Success - FDI StatisticsIndicators of Success - FDI Statistics
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.
Undersecretariat of Treasury19
# of countries# of countries Turkey’s RankingTurkey’s Ranking
Doing Business 2009Doing Business 2009 181181 5959
Doing Business 2008Doing Business 2008 178178 6060
Doing Business 2007Doing Business 2007 175175 6565
Doing Business 2006Doing Business 2006 155155 8484
World Bank - Doing Business 2009 Report
Doing Business 2009 Report Turkey has displayed progress in;• employing workers, • protecting investors and• enforcing contracts.
Indicators of Success - FDI StatisticsIndicators of Success - FDI Statistics
Undersecretariat of Treasury20
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
Indicators of Success - FDI StatisticsIndicators of Success - FDI Statistics
Undersecretariat of Treasury21
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:
Undersecretariat of Treasury22
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
Undersecretariat of Treasury23
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