BSEC BUSINESS COUNCIL

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BSEC BUSINESS COUNCIL

• INVESTING
• IN THE BLACK SEA REGION
• Dr. Costas Masmanidis
• Secretary General

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What is BSEC ?

• BLACK SEA ECONOMIC COOPERATION

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What is BSEC ?

• BLACK SEA ECONOMIC COOPERATION
• Economic Cooperation Organization
• Created in 1992
• 12 countries

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What is BSEC ?

• BLACK SEA ECONOMIC COOPERATION
• Economic Cooperation Organization
• Created in 1992
• 12 countries
• Albania Armenia Azerbaijan
• Bulgaria Georgia Greece
• Moldova Romania Russia
• Serbia Turkey Ukraine

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The Black Sea Region
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The BSEC Structure

• Council of Ministers of Foreign Affairs
• Secretariat (Istanbul)
• ca 20 Working Groups, eg
• Energy
• Transport
• Environment
• etc
• 4 Related Bodies

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BSEC Related Bodies

• Business Council Istanbul
• BS Trade Dev. Bank Thessaloniki
• Parliamentary Cooperation Istanbul
• Academic Cooperation Athens

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BSEC BUSINESS COUNCIL
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BSEC BUSINESS COUNCIL

• Our Strategic Directions
• (reflecting the needs of our SMEs)

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BSEC BUSINESS COUNCIL

• Strategic Directions
• Promoting Regional Development

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BSEC BUSINESS COUNCIL

• Strategic Directions
• Promoting Regional Development
• Promoting Business Cooperation

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BSEC BUSINESS COUNCIL

• Strategic Directions
• Promoting Regional Development
• Promoting Business Cooperation
• Disseminating Business Information

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BSEC BUSINESS COUNCIL

• Strategic Directions
• Promoting Regional Development
• Promoting Business Cooperation
• Disseminating Business Information
• Helping SMEs Gain Competitiveness

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BSEC BUSINESS COUNCIL

• Strategic Directions
• Promoting Regional Development
• Promoting Business Cooperation
• Disseminating Business Information
• Helping SMEs Gain Competitiveness
• Helping improve the Business Climate / Eliminate
  Trade Barriers

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BSEC BUSINESS COUNCIL

• Strategic Directions
• Promoting Regional Development
• Promoting Business Cooperation
• Disseminating Business Information
• Helping SMEs Gain Competitiveness
• Improving the Business Climate / Trade barriers
• Promoting Foreign Investments

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• Invest
• in the Black Sea Region !

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Why should you invest ?

• .

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Why should you invest ?

• Regional market of 1/3 billion people

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Why should you invest ?

• Regional market of 1/3 billion people
• Fast-growing economies

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Why should you invest ?

• Regional market of 1/3 billion people
• Fast-growing economies
• Strategic position Center of Eurasia

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Why should you invest ?

• Regional market of 1/3 billion people
• Fast-growing economies
• Strategic position Center of Eurasia
• Energy resources transport routes

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Why should you invest ?

• Regional market of 1/3 billion people
• Fast-growing economies
• Strategic position Center of Eurasia
• Energy resources transport routes
• Great nature, culture Tourism paradise

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Why should you invest ?

• Regional market of 1/3 billion people
• Fast-growing economies
• Strategic position Center of Eurasia
• Energy resources transport routes
• Great nature, culture Tourism paradise
• Science Technology

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Why should you invest ?

• Regional market of 1/3 billion people
• Fast-growing economies
• Strategic position Center of Eurasia
• Energy resources transport routes
• Great nature, culture Tourism paradise
• Science Technology
• Competitive operation costs

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Why should you invest ?

• Regional market of 1/3 billion people
• Fast-growing economies
• Strategic position Center of Eurasia
• Energy resources transport routes
• Great nature, culture Tourism paradise
• Science Technology
• Competitive costs
• Talented, educated people

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Regional challenges

• .

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Regional challenges

• Bureaucracy

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Regional challenges

• Bureaucracy
• Corruption

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Regional challenges

• Bureaucracy
• Corruption
• Slow implementation of reforms

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Regional challenges

• But
• Continuous improvement !

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Regional challenges

• Bureaucracy
• Corruption
• Slow implementation of reforms
• Frozen conflicts

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Why is FDI so important in the BSEC region ?

• Economic benefits
• Technical Know-how
• Managerial Know-how
• Other spill-over effects (eg, new mentalities)
• Linking of local companies to global supply
  chains (globalization!)

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What kind of FDI can provide maximum benefits in
the BSEC region ?

• Greenfield investments
• in diverse Sectors

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FDI inflows in BSEC

• Rush in FDI since 2002

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FDI inflows in BSEC(in billion USD)

• 2002 5.7
• 2003 9.3
• 2004 18.4
• 2005 36.5
• 2006 57.9
• 2007 58
• 2008 43.7

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Investment profile in BSEC

• Rush in FDI since 2002
• However, a big share is H/C - related
• (exploration, upstream operations, pipelines etc)

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Investments in BSEC

• More greenfield / downstream investments needed,
  to help diversify the economies
• Eg., in the Energy sector
• Speciality chemicals
• Renewable Energy-related investments

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Investment promotion in BSEC

• One of the main strategic directions of the BSEC
  BUSINESS COUNCIL
• is the improvement of the business / investment
  climate
• and investment promotion.

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Investment promotion in BSEC

• New OECD regional project
• on investment promotion
• and sector competitiveness
• To be launched with the cooperation of the BSEC
  Business Council
• (October 20, Tirana)

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BSEC BUSINESS COUNCIL

• Visit our
• BLACK SEA BUSINESS GATEWAY
• www.bsec-business.org

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BSEC BUSINESS COUNCIL

• Thank you !