Title: Handbook for Promoting Foreign Direct Investment in Medium-Size, Low-Budget Cities in Emerging Markets
1Handbook for Promoting Foreign Direct
Investmentin Medium-Size, Low-Budget Citiesin
Emerging Markets
- Joerg Simon, Senior Investment Adviser
- MILLENNIUM CITIES INITIATIVE
- THE EARTH INSTITUTE AT COLUMBIA UNIVERSITY
- http//mci.ei.columbia.edu
2Handbook for Promoting Foreign Direct Investment
in Medium-Size, Low-Budget Cities in Emerging
Markets
- The Millennium Cities Initiative (MCI)
- MCIs investment-related activities
- Importance of capacity-building in city
investment promotion - Purpose of the Handbook
- Structure of the Handbook
- Preparation of the Handbook
- Follow-up
3Millennium Cities Initiative The Earth Institute
at Columbia University
Handbook for Promoting Foreign Direct Investment
in Medium-Size, Low-Budget Cities in Emerging
Markets
- Millennium Cities Initiative (MCI)
- Localize MDGs
- Continuing rural-urban migration MDGs at
national level need to be - achieved at local level
- Assist second-level cities in Sub-Saharan Africa
in achieving the MDGs by 2015 - Criteria for selection of cities stimulating
economic development - needs assessments integrated MDG-based city
development - strategies
- Complement to Millennium Villages
- Agricultural value chain cities as regional hub
for rural area
4Handbook for Promoting Foreign Direct Investment
in Medium-Size, Low-Budget Cities in Emerging
Markets
- MCIs investment-related activities
- Preparation of investment-related materials
- Assessment of legal framework for investment,
investors guides - assessment of infrastructure constraints to
business activities - investment opportunities and profiles of
promising sectors identified by - KPMG, UNIDO and Columbia University
- Dissemination of information
- Investors missions investment days in-country
and abroad specific - targeting efforts
- Promoting the city as an investment side
- Strengthening the citys capacity in facilitating
investors in establishing - business and after-care services enable the city
administration to - better servicing businesses
5Handbook for Promoting Foreign Direct Investment
in Medium-Size, Low-Budget Cities in Emerging
Markets
- Importance of capacity-building in city
investment promotion - Role of investment in building productive
capacity - Investment brings capital, jobs, technologies and
skills it contributes to - the improvement of local infrastructure, export
capacity and - Competitiveness of local enterprises
- Investment is always local
- Cities are key nodes of the global economy and
supply pools of skilled - workers that companies need to access cities
also benefit directly - from inward investment (e.g. also from business
linkages) - Companies are now investing more and more where
the resources - (including human talent, services) are located
companies increasingly - assess and compare the attractiveness of cities
(or sub-regions) rather - than countries when making location decisions
6Handbook for Promoting Foreign Direct Investment
in Medium-Size, Low-Budget Cities in Emerging
Markets
- Importance of capacity-building in city
investment promotion (continued) - Growing importance of promoting cities
- Cities respond to their growing importance by
developing their own - capacities for attracting and facilitating inward
investment - the number of sub-regional and city investment
promotion agencies - has increased during recent years both in the
developed world as - well as in emerging markets
-
- Challenges medium-sized and low-budget cities in
emerging markets are facing in attracting FDI - Limited budgets and underdeveloped capacities for
attracting and - servicing investors, identifying investment
potential existing investment - climate and infrastructure
7Handbook for Promoting Foreign Direct Investment
in Medium-Size, Low-Budget Cities in Emerging
Markets
- Purpose of the Handbook
- To serve as a tool for medium-sized, low-budget
cities to - Strengthen investment promotion capacity
- Develop a strategic approach to attracting
investment - Brand and market the city
- Identify potential investment opportunities
- Facilitate investors and provide after-care
services for investors - Promote private-public sector dialog
- Better benefit from FDI, e.g. through business
linkages
8Handbook for Promoting Foreign Direct Investment
in Medium-Size, Low-Budget Cities in Emerging
Markets
- Structure of the Handbook
- 10 modules, each of them is being introduced by
topics, objectives and - concluded by key take-away points and resources.
Cases of best practice - demonstrate how cities and agencies are gaining
experience in attracting - and servicing investors.
- Module I. The Handbook
- Based on world-wide best practices it provides
under-resourced cities in - emerging markets with a practical framework and
easy-to-follow guidelines - on how to increase inward investment. While the
focus is on how to attract - FDI, most of the modules will be equally useful
for attracting domestic - investment.
- Module II. Introduction to foreign direct
investment - The module provides a general overview of FDI
definitions, determinants, - benefits, trends and issues. It is essential
background reading for investment - officers and FDI policy makers wanting to
understand the world of FDI.
9Handbook for Promoting Foreign Direct Investment
in Medium-Size, Low-Budget Cities in Emerging
Markets
- Structure of the Handbook (continued)
- Module III. A framework for investment promotion
- A complete overview of how to do investment
promotion, as well as the - rational and importance of it.
- Module IV. How to develop a city investment
promotion strategy - Helps policy makers develop an investment
promotion strategy for their - cities, preferably developed in conjunction with
the national IPA. The - strategy can use the templates provided in this
module, with a key emphasis - on making the strategy sector-based and focused
on achieving clear targets - that can be monitored and evaluated.
- Module V. How to build a city investment
promotion agency - Designed to inform cities on how to establish a
new investment promotion - agency. The practical illustrations of the
organizational structure, vision, - mission, and client charter of an IPA are laid
out, as are budgets and - funding. Also discussed are the staff, skills and
roles, as well as the - importance of IPA networks.
10Handbook for Promoting Foreign Direct Investment
in Medium-Size, Low-Budget Cities in Emerging
Markets
- Structure of the Handbook (continued)
- Module VI. How to market a city to foreign
investors - Pays attention to the importance of marketing in
attracting inward - investment to a city. Provides best practices and
templates for developing - the most important marketing materials. Cautions
low-budget cities to - spend very limited resources on expensive image
and brand building - campaigns.
- Module VII. How to target investors and generate
leads - Provides city IPAs with a comprehensive toolkit
for developing and - implementing an investor targeting and lead
generation strategy and - individual campaigns. By following the main
topics and proven best - practices, city IPAs should, over time, increase
the volume of investment - into their cities.
11Handbook for Promoting Foreign Direct Investment
in Medium-Size, Low-Budget Cities in Emerging
Markets
- Structure of the Handbook (continued)
- Module VIII. How to facilitate inward investment
- Designed to assist city IPAs in understanding how
to handle investor inquiries, provide information
to an investor in the most effective format,
organize a successful site visit, and consider
the options for the facilitation services the
city IPA can provide to an investor. - Investment facilitation is essential for every
city IPA to ensure seamless entry of investment.
Effective investment facilitation ensures that - (i) The investment is completed (and not
cancelled). - (ii) Investors are happy, which adds to the image
and reputation of the city and its IPA - a
satisfied investor is the most effective
promotional tool possible. - (iii) Reinvestment is encouraged.
12Handbook for Promoting Foreign Direct Investment
in Medium-Size, Low-Budget Cities in Emerging
Markets
- Structure of the Handbook (continued)
- Module IX. How to develop after-care and policy
advocacy - Informs medium-size, low-budget cities in
emerging markets of the - importance of after-care and policy advocacy and
provide guidelines for - how a city investment promotion organization can
develop an after-care - and policy advocacy program.
- Module X. Next steps moving city investment
promotion forward - Assists a city set up an investment promotion
agency and implement - investment promotion activities, identify
priorities for investment promotion and establish
a monitoring and evaluating success.
13Handbook for Promoting Foreign Direct Investment
in Medium-Size, Low-Budget Cities in Emerging
Markets
- Preparation of the Handbook
- Prepared in 2008/2009
- Workshop with international experts in December
2008 - Final draft in May 2009
- Verification with a number of experts in city
investment promotion - Launch in December 2009
- Available on-line in English on
http//mci.ei.columbia.edu
14Handbook for Promoting Foreign Direct Investment
in Medium-Size, Low-Budget Cities in Emerging
Markets
- Follow-up
- Distribution world-wide to city and sub-regional
institutions - Publication of hard copies
- Translation into Arabic, French, Chinese, Russian
- Training based on the Handbook
-
- Thank you very much for your attention!