Bosnia and Herzegovina

Regional Investment Summit to Underscore Role of Private Sector in Development Process

14/10/2003 - Policy-makers and business leaders gathering at the first Regional Investment Summit in Bucharest, Romania, are expected to strongly endorse the establishment of partnerships between the private and public sectors, in order to replicate and expand the economic success of Central Europe both eastwards and southwards.

“Effective and highly principled corporate governance is crucial, as are initiatives to address anti-trust issues, the protection of intellectual property rights and the recognition of the role that public-private finance can play in an enlightened economic development programme,” said Mr. Mircea Geoana, the Foreign Affairs Minister of Romania, before the meeting. The Summit, convened by the United Nations Development Programme (UNDP) and the International Herald Tribune (IHT), is hosted by the Government of Romania, between 14-15 October. The regional event is the first of its kind, gathering 23 countries from the Balkans to the Baltic states and from the Russian Federation and Ukraine to Cyprus, Greece and Turkey. Official delegations comprise prime-ministers, deputy prime ministers, ministers of trade and the economy and privatization officials. The government leaders gathered in Bucharest, together with prominent CEOs and top representatives of international financial institutions, will discuss ways to attract foreign direct investment as well as the need to further unleash domestic capital and entrepreneurship to help countries reach the Millennium Development Goals (MDGs). The MDGs are an ambitious agenda for improving lives and reducing poverty, agreed upon by 198 world leaders during the United Nations’ Millennium Summit in September 2000. Emphasizing the key role of the private sector in the development process marks an important turn in the way in which international organizations promote economic development. “Aid and trade are good but not sufficient to promote development,” said Mark Malloch Brown, the Administrator of UNDP and Chair of the UN Development Group, who will speak at the opening of the summit. Mr. Malloch Brown is the UN system's third highest-ranking official. “A strong business sector that absorbs trade and releases the entrepreneurial potential of a people is the best generator of development and economic growth,” added Mr. Malloch Brown. UNDP’s role in convening the Summit reflects a growing appreciation of the private sector's role in promoting development. The issue of business sector involvement is no longer limited to appeals for corporate social responsibility on the basis of enlightened self-interest. UNDP and other development actors recognize the critical role played by small and large companies in generating incomes and employment, and are embarking on new initiatives to support private sector development around the world. These include working with governments and international ratings agencies to improve sovereign ratings for some of Africa's best-run economies, partnering with well known multinational companies to promote hands-on training in business management and marketing to young entrepreneurs, or working with governments and civil society groups to introduce information and communications technologies to schools, health clinics, farms and local businesses. “A key to enabling the private sector to realize its potential and to unlock foreign direct investment is putting in place the right climate for investment, which is facilitated by meaningful dialogue between the public and private sectors. This Summit will provide an effective means to achieve this objective by bringing together investors, private companies, government officials and development organizations from throughout the region," said Assad Jabre, Vice President of the International Finance Corporation, before the event. The Summit participants will discuss the requirements of creating an enabling regulatory environment in the whole region, the promotion of FDI through privatization, the expansion of trade, the development of small and medium sized companies, and issues related to the development of public-private partnerships at both the central and local levels in Eastern Europe, the Balkans and the Commonwealth and independent States. “This event is unprecedented and is a reflection of the region’s political will to succeed” said Ms Marina Sturdza, regional advisor to the International Herald Tribune.