BLACK SEA ENERGY CONFERENCE BUCHAREST, 3-5 APRIL, 2006 Black Sea Region BUSINESS ENVIRONMENT: OPPORTUNITIES AND OBSTACLES Costas Masmanidis Black Sea Economic Cooperation (BSEC) BUSINESS COUNCIL

What is BSEC ? Created in countries Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Serbia-Montenegro, Russia, Turkey, Ukraine

The Black Sea Region

The BSEC structure 1  Council of Ministers of Foreign Affairs  Committee of Senior Officials (MFA)  Working Groups (Transport, Energy etc)  Related Bodies

The BSEC structure 2 Bodies  Inter-governmental - PERMIS (Istanbul)  Parliamentarian - PABSEC (Istanbul)  Academic - ICBSS (Athens)  Bank - BSTDB (Thessaloniki)  Business - BUSINESS COUNCIL (Istanbul

The essence of our Mission Help the Region's companies cope with and reap the benefits of Globalisation

The essence of our Strategy n Promote regional cooperation n Promote international cooperation n Provide information, training n Help attract greenfield FDI n Help improve business climate

Why is greenfield FDI needed?  New capital, new jobs  New technologies  New management, corporate practices  Connection to global supply chains  Opportunity to become global supplier  Various "spillover" effects (mentality etc) Globalization

What do Investors want ? 1) Big market (or: Easy access to a big market) 2) Good business climate

The business opportunities  Regional market of 1/3 billion people  Fast-improving economies  Strategic position at the center of Eurasia  Energy resources  Energy routes into Europe  Great nature, culture: Tourism paradise  High technological and scientific base  Talented / educated people  Competitive costs of production  Great scope for business cooperation

Barriers to Business and Investment  Bureaucracy  Unclear / unstable rules of the game (lack of predictability)  Complicated taxation systems  Lack of finance for SMEs  Corruption  Slow implementation of reforms

Business climate GOOD NEWS: Continuous Improvement

Helping improve the business climate One of the most valuable activities that Business Organisations can engage in WHAT ?  Set priorities, targets, deadlines  Monitor what reform works and what does not  Provide feedback HOW ?  Cooperate with each other  Form strategic partnerships with OECD et al  Cooperate with governments (PPP)

BSEC BUSINESS COUNCIL