INVESTMENT REFORM INDEX

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INVESTMENT REFORM INDEX

• January 2006

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Agenda

• Context and Objectives
• Approach and Process
• Differentiating Factors
• Organisation and Key Events
• Annex

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Investment Reform Index Context and Objectives
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Context
The Investment Reform Index and the Investment
Compact
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Objectives
The IRI is guided by four key objectives
Regional Collab-oration and Peer Review
Targeted Support in Imple-mentation
Public and Private Sector Involvement
Structured Evaluation
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Investment Reform Index Approach and Process
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Approach
The IRI measures implementation of reform in 10
key dimensions
Main focus of evaluation in 2006
Part of a separate process conducted in
cooperation with the EC in the framework of the
European Charter for Small Enterprises
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Approach
Each dimension is broken down into main
sub-dimensions Example Tax Policy Framework
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Approach
Each sub-dimension is broken down into core
indicators Example Tax Framework ? Tax
Administration
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Approach
Each indicator is broken down into levels of
reform Example Tax Framework ? Tax Administration
Note This table has been simplified for
presentation purposes each level of reform and
Best Practice example is fully detailed in the
actual IRI. 1Best Practice refers to a country,
usually in Central Europe or one of the Baltic
States, which has made significant reforms in
each indicator
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Process
Gathering information for scores will follow a
specific process Example Anti-Corruption
CET
Investment Compact
Private Sector
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Investment Reform Index Differentiating Factors
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Differentiating Factors
How the IRI is different from other indices

• Meta Index which incorporates existing work
  already conducted by other organisations (e.g.,
  World Banks Doing Business report).
• Comprehensive evaluation of the investment
  environment structured along ten key dimensions
  in line with OECD standards.
• Does not only measure but also provides guidance
  on how to improve through best practices.
• Focus on a very specific region where history,
  culture and geography allow for more relevant
  benchmarking between countries.
• Tripartite participatory approach to evaluation
  and measurement including government, private
  sector, and the OECD.
• Practical tool for governments to define
  priorities for reform.
• Living Index through the Investment Compact
  website that will include an interactive space
  where individuals and experts can comment on
  particular aspects of the review.

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Investment Reform Index Organisation and Key
Events
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Organisation
The Investment Reform Index is organised to
involve all levels in the evaluation and input
process

• IC Core Team collects data and interviews OECD
  Experts to establish a preliminary level of
  progress for each country in each policy
  dimension
• Local consultants build from the first
  measurement by collecting primary data in the
  countries and conducting interviews with local
  experts. The results analysed by the IC Core Team
  and incorporated into the level of progress
• The Private Sector and the Country Economic Team
  evaluate the latest measure. This provides an
  opportunity to step back and analyse the
  measurements in a broader context. After
  consultation mechanisms are complete, all parties
  confirm a final measurement, which is published

Local Consultants Country Economic Team
IC Core Team
Private Sector
OECD Experts Local Experts
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2005-2006 Key Events for the Investment Reform
Index
Key Events
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Annex Tripartite Review
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Annex
Tripartite Review of the Investment Reform Index

• Team of government experts, including the
  Ministry of Economy, SME Agency/Development, IPA,
  Ministry of Finance, Competition Authority, etc.
• Propose annual targets and actions taking into
  account input from the private sector and the
  OECD
• Conduct progress measurement
• Participate in peer reviews to validate results

• OECD IC Core Team
• Support CET and FIC in each country to set annual
  targets and measure progress
• Publish progress on targets twice a year
• Co-ordinate peer-review process
• Manage and update IRI