USAID Serbia Competitiveness Project

Report
USAID Serbia Competitiveness Project
Invest in Serbia!
Booz │ Allen │ Hamilton
Project Summary
• 4 Year $14.7 million project
• Objective:

Broad-based economic growth

Increased private sector competitiveness in targeted sectors
• Results: Increased sales, exports, investment and jobs measured by
return on investment (ROI) of 25:1
• Impact:

Increased capacity of key sectors and businesses to compete on
global, regional and domestic markets

Increased productivity & improved business climate
2
Opportunities &
Constraints Study
• Assessment of leading sectors to identify
those with high potential, obstacles to
growth and potential early stage activities
• Found common needs across sectors:
I.
Sales & Marketing
II.
Education & Training
III.
Policy Advocacy & Reform
The Opportunities and
Constraints Study brochure
• Conclusion: Support a broader set of sectors (11) to
address the common themes and leverage impact
3
Export to Sales Ratio
90.00%
80.00%
70.00%
Tourism
60.00%
AutoParts
Education
Energy, especially renewable
50.00%
Construction
Textile and apparel
40.00%
Logistics, warehousing and transport
Film and production
Building materials
30.00%
Wood processing and furniture
20.00%
10.00%
0.00%
2002
2003
2004
Year
2005
2006
• Construction & Building
Materials

MosBuild Trade Fair “1st Ever Serbian Participation”

Belgrade Construction Fair

Market Linkage Support

FIDIC Establishment
The brochure published for
MosBuild
• Renewable Energy:

Wood Waste Biomass Feasibility Study

International Investors Support

FDI promotion (Investor Handbook, Investor Targeting and
Facilitation)
5
• Wood Processing & Furniture:

FSC Chain of Custody Certification

Milan Fair mentorship

Market linkages (regional trade fairs)
• Tourism:

IMEX Trade Fair

Convention Bureau Capacity Building

Domestic Tourism Development
• Film and Production:

Cannes Producers Network

Film Commission Establishment

Film Location Outsourcing Support
6
Other Sub-Sectors
• Apparel
 Improving designer skills
 International Market
Linkages
 Producers’ Catalogue
• Auto Parts
 Just-in-Time Outsourcing
• IT
 CMMI/other certifications
to improve outsource
potential
 IT skills development
 Software development for
local market demand
• Logistics & Transport
 Load Sharing Study
7







“Serbia is Number One Business Reformer in the
World”
World Bank, Doing Business 2006
CEFTA agreement in force
Stabilization and Association Agreement (SAA)
signed; candidate status planned for 2008
WTO accession expected in 2008
Partnership for Peace, member since 2006
Legal reforms to align with EU legislation
Tax incentives (10% corporate tax, etc)
 FDI Stock (2001-2007): $13.5 bn
Project Policy Activities: Law on Undertaking
Investment Projects Abroad, Spa Law, facilitating
permitting in renewables
Serbia’s Market Access



Duty free exports to
the EU for almost all
products
FTA with Russian
Federation - market of
150 mil. people.
Limited number of
exceptions
CEFTA – duty free
access to 30 million
people market
Government Financial Incentives
Non-refundable funds for investments in all sectors, except
agriculture, tourism, hospitality and trade
Investment projects rated based on the evaluation criteria :
investors reference; participation of domestic suppliers;
effects on R&D, HR etc.
See www.siepa.sr.gov.yu
Enhancing human capital
Well educated
Proficient in foreign languages
Productive (avg 11.8% increase in past five years)
Readily available; Competitively priced
USAID contribution:
• Trainings, ToT
• Skills Gap Analysis; Curricula changes
• Career Center Support
Conclusion: Respond to entrepreneurs and
facilitate second stage of transition in Serbia
 Cross-cutting technical assistance
 Investment into preparation and follow-up of trade
fair participation
 Specific market research based on investor needs
 Sector-specific policy assistance
 Targeted workforce development based on market
research and trends
Booz │ Allen │ Hamilton
www.compete.rs - [email protected]
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