What do the regions have to do to prepare for FDI

attraction after the current crisis? Dusan Kulka, June 17, 2009

The song remains the same:

What target industries can realistically be attracted?

Export oriented

Serving domesticmarkets / Import oriented

Labor intensive

Knowledge / technology intensive

?Specify potentials and needs for FDI

And prepare your product

QUALITY(ATTRACTIVENESS)OF THE BUSINESSCLIMATE

APPROPRIATE (MARKET-READY)

BUSINESS PROPERTY AVAILABLE

SCOPE, CREDIBILITY AND

PROFESSIONALISMOF RELEVANT PUBLIC

SECTOR SERVICES

Major location selection criteria

Net economic impact criteria:• Economic compatibility - potential to strengthen

country’s key value-chains [EC]• High export potential [EX]• High value-added potential [VA]• Employment potential [EM]• Technology and innovative potential [TI]• Local input / sourcing potential [LI]• Local strategic linkages potential [SL]• Upgrade potential [UP]

Always count / measure the impact

Greenfield investmentEfficiency seeking

Net economic impact

Contestable

Go green …

?

FDI in the region after crisis

Continuing economic globalization Efficiency / productivity gains seeking Need for a technological leap

Increased governmental interventions Protectionist policies Safety / security measures / concerns

• New winners and losers• A new start for everyone

Two counteractive forces

Make politicians read that article

FIRM

Local andRegional Environment

National Environment

Global Environment

SUPPLIER

SUPPLIER

SUPPLIER

SUPPLIER

CUSTOMER

CUSTOMER

CUSTOMER

CUSTOMER

COMPETITOR

COMPETITOR

COMPETITOR

Support (productivity enhancing) infrastructure

Think strategically / long-term

Good luck!