Booz │ Allen │ Hamilton

• 4 Year $14.7 million project
• Objective:
 Broad-based economic growth
 Increased private sector competitiveness in targeted sectors
• Results:
Increased sales, exports, investment and jobs measured by return on investment (ROI) of 25:1
• Impact:
 Increased capacity of key sectors and businesses to compete on global, regional and domestic markets
 Increased productivity & improved business climate
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• Assessment of leading sectors to identify those with high potential, obstacles to growth and potential early stage activities
• Found common needs across sectors:
I.
Sales & Marketing
II.
Education & Training
III. Policy Advocacy & Reform
The Opportunities and
Constraints Study brochure
• Conclusion: Support a broader set of sectors (11) to address the common themes and leverage impact
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Export to Sales Ratio
90,00%
80,00%
70,00%
60,00%
50,00%
40,00%
30,00%
20,00%
10,00%
0,00%
2002 2003 2004
Year
2005 2006
Tourism
AutoParts
Education
Energy, especially renewable
Construction
Textile and apparel
Logistics, warehousing and transport
Film and production
Building materials
Wood processing and furniture

• Construction & Building
Materials
 MosBuild Trade Fair “1 st Ever Serbian Participation”
 Belgrade Construction Fair
 Market Linkage Support
 FIDIC Establishment
The brochure published for
MosBuild
• Renewable Energy :
 Wood Waste Biomass Feasibility Study
 International Investors Support
 FDI promotion (Investor Handbook, Investor Targeting and
Facilitation)
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• Wood Processing & Furniture:
 FSC Chain of Custody Certification
 Milan Fair mentorship
 Market linkages (regional trade fairs)
• Tourism:
 IMEX Trade Fair
 Convention Bureau Capacity Building
 Domestic Tourism Development
• Film and Production :
 Cannes Producers Network
 Film Commission Establishment
 Film Location Outsourcing Support
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• Apparel
 Improving designer skills
 International Market
Linkages
 Producers’ Catalogue
• Auto Parts
 Just-in-Time Outsourcing
• IT
 CMMI/other certifications to improve outsource potential
 IT skills development
 Software development for local market demand
• Logistics & Transport
 Load Sharing Study
7

“Serbia is Number One Business Reformer in the
World”
World Bank, Doing Business 2006
 CEFTA agreement in force
 Stabilization and Association Agreement (SAA) signed; candidate status planned for 2008
 WTO accession expected in 2008
 Partnership for Peace, member since 2006
 Legal reforms to align with EU legislation
 Tax incentives (10% corporate tax, etc)
 FDI Stock (2001-2007): $13.5 bn
 Project Policy Activities: Law on Undertaking
Investment Projects Abroad, Spa Law, facilitating permitting in renewables

 Duty free exports to the EU for almost all products
 FTA with Russian
Federation - market of
150 mil. people.
Limited number of exceptions
 CEFTA – duty free access to 30 million people market

Non-refundable funds for investments in all sectors, except agriculture, tourism, hospitality and trade
Investment projects rated based on the evaluation criteria : investors reference; participation of domestic suppliers; effects on R&D, HR etc.
See www.siepa.sr.gov.yu

 Well educated
 Proficient in foreign languages
 Productive
(avg 11.8% increase in past five years)
 Readily available; Competitively priced
 USAID contribution:
• Trainings, ToT
• Skills Gap Analysis; Curricula changes
• Career Center Support

Conclusion: Respond to entrepreneurs and facilitate second stage of transition in Serbia
 Cross-cutting technical assistance
 Investment into preparation and follow-up of trade fair participation
 Specific market research based on investor needs
 Sector-specific policy assistance
 Targeted workforce development based on market research and trends
Booz │ Allen │ Hamilton

www.compete.rs
office@compete.rs
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