APEC Investment Reform Paul Kennelly APEC’s Investment Experts Group (IEG) APEC Energy and Investment Roundtable 30 September – 2 October 2008, Cairns

1.Introduction

Market Characteristics Demand & Supply: ‘The China Syndrome’ Global Growth Volatility: Extreme events (weather, stock market, geopolitical tensions, etc.)

Transparency → Predictability The Prime Reform Challenge – Policy Certainty

APEC’s Reform Frameworks Trade Facilitation Action Plan (TFAP): Significance for IFAP as a successful model Investment Facilitation Action Plan (IFAP): More later... Leaders Agreement on Implementing Structural Reform (LAISR): More later...

2.Behind-the-border Barriers

Nature & Implications Nature of behind-the-border barriers Implications of such barriers

3.APEC’s Investment Facilitation Action Plan (IFAP) and the LAISR

IFAP, Raison d’être Definition of ‘investment facilitation’ Methodologies for measuring reform progress Capacity Building

LAISR, 2008-? Objective Definition of ‘investment facilitation’ Methodologies Capacity Building

4.Reform Ingredients to make Action Plans work

Maximising reformist sentiment Self assessment Identification of prioritiesCoordination Ownership

Ownership (Policy Desirability) 1. Identify / develop ‘reform champions’.

Ownership (Policy Desirability) 2. External drivers of reform are less-than-ideal as they tend not to ‘stick’. 3. Reform must be pursued from within (government, business, individuals). 4. Expert external assistance can prove crucial.

Self-assessment Local experts: Know their economy Contribute to a sense of ownership Essential for long-term success –“Give a man a fish, and he eats for a day. Teach a man to fish and he has food for life.”

Identification of priorities Identify policies likely to d eliver greatest benefit & least cost/market distortions: Map the economic impacts of barriers; and Prioritise for the short-term and long-term Expand the ‘sweet spot’, i.e. have: policy desirability, political feasibility, and administrative feasibility Complement relevant work in progress

Coordination By working together, agencies: Increase ownership Maximise efficiency and effects Bring a ‘whole of government’ perspective  and the result is a quality outcome

Thank you