Integrated Growth Pillar 1 of the SEE 2020 Strategy SEEIC Meeting Sarajevo, 19 June 2013.

Integrated Growth

Pillar 1 of theSEE 2020 Strategy

SEEIC MeetingSarajevo, 19 June 2013

CEFTA SECRETARIAT

Background• Focusing on growth the SEE 2020 Strategy (further SEE 2020)

recognises trade and investment as core components of economic development agenda for the region• Five out of eleven agreed headline targets of the SEE 2020 are trade

and investment related.• At the last CEFTA Joint Committee meeting in November 2012, the

Ministers endorsed active involvement of the CEFTA Structures in the SEE 2020.• CEFTA Structures are leading the on-going programming and are

expected, to take over implementation of the Integrated Growth pillar in agreement with RCC, overall coordinator for the SEE 2020.

• Following a decision of the CEFTA Deputy Ministers at the CEFTA Strategic Meeting on 19 March 2013, the Secretariat has developed a draft strategic document for discussion at the CEFTA meetings in the period April – June 2013.

CEFTA SECRETARIAT

Overall Strategic Goals • Increase regional GDP PPP per capita from 38% to 46% of the EU-27 average• Grow the region’s total value of trade in goods and services by more than

130%• Reduce the region’s trade deficit from 14.1 to 11.6 % of regional GDP

Integrated Growth • Increase intra-regional trade in goods by more than 230% • Increase overall FDI inflows to the region by at least 120%

Smart Growth • Increase GDP per person employed by 33%

Sustainable Growth• Increase the rate of enterprise creation to 20% • Increase exports of goods and services per capita from the region

by 130%

Inclusive Growth • Increase the overall employment rate by 12% • Add 300.000 highly educated people to the region’s workforce

Governance for Growth • Increase government effectiveness by 20% by 2020

SEE 2020 Headline Targets

CEFTA SECRETARIAT

Approach to Programming (1)Draft strategic document

• The draft document prepared by the CEFTA Structures in consultation with RCC and OECD on behalf of SEEIC, represents a strategic framework identifying key intervention areas with defined actions needed to support achievement of the SEE 2020 headline targets.

• The proposed Integrated Growth agenda promotes interdependence, interaction and synergies of the SEE 2020 with the implementation of CEFTA and the EU accession process.

• Proposed measures, instruments and actions address issues of regional dimension and relevance aiming at benefits in harmonising legislation/processes among the Parties in full compliance with the EU accession and/or optimisation of resources/institutions at the regional level.

CEFTA SECRETARIAT

Kew Areas of Intervention...

Integrated Growth

Free Trade Area

Free flow

of goods

Free flow

of Servic

es

Free flow

of Investment

Free flow

of skilled labour

Competitive Economic

Environment Competition Policy IPR

Public Procureme

nt

Integration into Global Economy

Market Access Participation in Global Supply

Networks

Capacity Transparency Data availability and quality

CEFTA SECRETARIAT

Approach to Programming (2)

Programming process • Consultation on the draft strategic document has involved directly over

one hundred officials and civil servants attending CEFTA official and expert meetings in the period April – June 2013 as well as relevant partners e.g. RCC and OECD.

• After the first draft has been discussed collected inputs were incorporated into the document, and presented for endorsement at the regular CEFTA Deputy Ministers meeting on 18 June 2013.

• In the period from June to October 2013, specific programmes with tentative budgets and governance scheme for the implementation of the Integrated Growth pillar are to be defined.

• In coordinated by RCC, the CEFTA Structures will participate in consolidating the five pillars strategic documents into one single strategy to be adopted in November 2013.

CEFTA SECRETARIAT

Approach to implementation (1)• The approach is based on two fundamental premises:• Develop optimal institutional and legal arrangement to

enable achievement of agreed regional goals in the field of trade and investment, and

• Ensure efficient use of available resources, both human and financial.

• The approach is therefore proposing :• Consolidation of CEFTA implementation with Integrated

Growth agenda, and • Efficient use of existing CEFTA structures and processes in

the context of the SEE 2020.

CEFTA SECRETARIAT

Approach to implementation (2)Institutional framework

• It is assumed that well functioning CEFTA Structures, representing a genuine forum for all trade related discussion in the region, serve as implementation structure for the Integrated Growth, Pillar 1 of the SEE 2020, thus avoiding any duplication of efforts in the domain of trade and investment.

• It is recognised that CEFTA as a comprehensive regional free trade agreement, designed as an integral and complementary part of CEFTA Parties pre-accession agenda, provides strong legal basis for policy formulation and implementation in key intervention areas related to trade and investment.

• Relevant legal basis, required full consensus in decision making and well defined mandate of respective bodies at all levels (from experts to ministers) inherently demand articulation of respective national positions and are thus the best guarantee that the agreed regional goals are by definition aligned with respective national objectives.

CEFTA SECRETARIAT

“Value added” of the SEE 2020 Strategy

• Places trade in a strategic context of economic development and growth agenda for the Region;

• Headline targets quantified – measurable indicators allowing for corrective action;

• Strategic importance of trade and investment in the economic development of the Region clearly recognised – 5 out of 11 headline targets are trade and/or investment related;

• Promotes importance of intra-regional trade (230% intraregional trade in goods versus 130% of total trade in goods and services);

• Facilitates synergies among related policies e.g. Trade, Competitiveness and Transport policies;

• Allows to conceptualise market access strategies in a wider context/wider region.

THANK YOU.