Third South Asia Investment Roundtable
June 13-14, 2005

Following the success of the first two South Asia roundtables on foreign direct investment (FDI) in Bangladesh and the Maldives, FIAS organized in June the 3rd South Asia Investment Roundtable in Dhaka in collaboration with the South Asia Development Facility (SEDF) and the Department for International Development (DFID) UK. About 50 delegates from key government organizations of South Asian countries, namely Afghanistan, Bangladesh, Bhutan, India, Pakistan, Nepal, the Maldives and Sri Lanka attended the roundtable. Representatives from the Bangladesh private sector were also present. In light of the World Bank Group’s Doing Business 2005 report, the 2005 World Development Report, and the background paper on Perception of South Asia as an FDI destination, the Roundtable intended to promote greater understanding of the importance and benefits of regulatory reforms in South Asia.

Drawing from successful regulatory reform experiences in OECD and South Asia, the Roundtable aimed to promote an open exchange of experiences on the challenges and practicalities of implementing regulatory reforms tailored to local conditions and needs of South Asian countries. The Roundtable aimed to increase the participants’ awareness and understanding of how institutions and government agencies can work to reform poorly framed regulations that pose unnecessary burdens on investors. Finance & Planning Minister of Bangladesh, Saifur Rahman spoke as the chief guest at the Roundtable. The Roundtable was also addressed by the Acting British High Commissioner Stephen Bridges as the special guest. Thomas Davenport, Manager of FIAS, presented the keynote speech.


Agenda ( 83KB)



Background
Benchmarking Paper

Perceptions of South Asia as an FDI destination ( 63KB)
Aminur Rahman, Investment Policy Officer,
FIAS

· Providing an overview of perceptions from outside as indicative of the dimensions of the challenge facing the policy makers’ participants;
· Drawing on over twenty identified, comprehensive data sets published by learned and independent commentators, using a mixture of selected South Asia, FDI-relevant, quantitative and qualitative data.


The Session Topics


Session #1 Keynote Address

The Profile of South Asia’s Regulatory Environment-Lessons from Doing Business in 2005 ( 69KB)
Tom Davenport Manager, FIAS, Washington DC

· Comparing eight South Asian Countries both within South Asia and internationally in terms of various indicators of the Doing Business Study.
· Demonstrating which countries in the region seem to be the best reformers could be replicable/adaptable to other countries in the region.
· Highlighting the key lessons regarding regulatory reforms in South Asia in light of the “Doing Business in 2005”.


Session #2 Setting the Scene

Topic (a)
Lessons from the World Development Report, 2005: A Better Investment Climate for Everyone ( 617KB)
James Crittle South Asia Regional Program Coordinator, FIAS South Asia Regional Office Dhaka
· Describing the role of FDI in the rapid and efficient transfer and adoption of ‘best practice’ across borders.
· Highlighting evidence on the role and importance of regulatory reform in promoting an appropriate environment for both foreign and domestic investment.

Topic (b)
Regulatory Reform Needs in South Asia ( 568KB)
Presentation ( 568KB)
Scott Jacobs Managing Director, Jacobs and Associates, Washington DC

· Synthesizing the key features of the business/commercial regulatory system in South Asian Countries
· Assessing the effectiveness and efficiency of the existing business/commercial regulatory systems in South Asia. and discussing how they affect the foreign and domestic investment in South Asia.
· Identifying the key business/commercial regulatory reform needs in light of international best practice experiences.


Session #3 Successful Regulatory Reform: Option & Process

Topic (a)
Case Studies of Successful Regulatory Reform ( 83KB)
Presentation ( 419KB)
Andy Stone Senior PSD Specialist, World Bank Group, Washington DC

· Providing key policy lessons to decision-makers of South Asian countries on regulatory reforms by drawing from successful reform experiences.
· Identifying the critical factors that lead to successful reforms.
· Analyzing to what extent successful reform experiences can be extrapolated to provide practical policy advice to other South Asian countries.

Topic (b)
Financial Market Reform in Pakistan ( 218KB)
Haroon Shariff Economic Adviser, DFID Pakistan

· Highlighting the key features and progress of the financial market reform process in Pakistan in recent years.
· Assessing the key constraints and impediments in the financial system and how these were tackled.

Topic (c)
Reform Program in Orissa State ( 141KB)
Meenakshi Nath Economic Adviser, DFID India

· Highlighting Orissa State as one of the leading states in India in recent years in implementing wide reaching policy and regulatory reform.
· Summarizing the key features of development partner’s support to the reform process and assessing progress achieved

Topic (d)
Competition Policy and Competitive Markets as a Substitute for Regulation ( 71KB)
Presentation ( 154KB)
Rughvir S. Khemani, Adviser, Investment Climate, Dept. World Bank Group,

· Discussing the interface between competition policy and regulation through country and sector specific examples.
· Analyzing the political economy of excess regulation,.
· Providing illustrative examples of various regulatory policies involving competition in South/South East Asian countries that are impeding foreign and domestic investment
· Highlighting how modern competition policy framework can play a critical role in South Asian countries in promoting competition and the attainment of social objectives in a market friendly way.


Session #4 Breakout Session, Presentation & Discussion
Regulatory Reform Implementation in South Asia: Participants Viewpoint on Key Political Economy Issues


Session #5 Regulatory Impact Assessment: the OECD Experience

Topic (a)
Regulatory Impact Analysis in OECD Countries ( 64KB)
Presentation ( 158KB)
Delia Rodrigo Administrator, Directorate for Public Governance and Territorial Development, OECD

· Highlighting the impact of regulatory impact assessment (RIA) on the quality of the regulatory environment in the OECD.
· Introducing effective RIA – lessons from the OECD experience

Topic (b)
The UK Regulatory Impact Assessment System ( 420KB)
Faisal Naru Regulatory Impact Unit, UK Cabinet Office

· Examining features of the UK integrated regulatory impact assessment system
· Highlighting some of the key features of the UK system with reference to its applicability and adaptability to developing countries.


Session #6 Regulatory Impact Assessment: Challenges & Relevance for Developing Countries

Topic (a)
The Relevance of Regulatory Impact Assessment in Developing Countries ( 47KB)
Presentation ( 186KB)
Colin Kirkpatrick Professor of Development Economics, University of Manchester
David Parker Professor of Business Economics, University of Cranfield

· Presenting the key features of the RIA systems used in the UK and OECD
· Examining the challenges of implementing RIA systems in developing countries, drawing on international experience in this area
· Identifying the key issues in designing and implementing appropriate RIA systems in the South Asian context
· Analysing how RIA methodologies may need to be modified to be effective in South Asia.

Topic (b)
Challenges to Introducing Regulatory Impact Assessment in Developing Countries ( 74KB)
Presentation ( 232KB)
Darren Welch Bannock Consultants, London UK

· Highlighting the objectives and benefits of establishing RIA systems in developing countries
· Identifying the key issues in designing and implementing appropriate RIA systems in developing country contexts
· Analyzing how RIA methodologies need to be modified to be effective in developing countries

· Examining the challenges of implementing RIA systems in developing countries

Topic (c)
Regulatory Impact Assessment in Sri Lanka ( 79KB)
Malathy Knight-John Head Public Enterprise Reform, Competition and Regulatory Policy Research Unit, Colombo Sri Lanka

· Focusing on recent efforts in Sri Lanka to establish a Regulatory Impact Assessment system in central government.
· Drawing out some of the key issues faced by reformers, the progress achieved, and plans for the future


Session #7 Breakout Session, Presentation & Discussion

Regulatory Reform Implementation in South Asia: Participants Viewpoint on Key Capacity Issues


Session #8 Plenary Session on “Regulatory Reform

in South Asia-The Role of Donors, Government and the Private Sector”

A panel discussion led by three high profile speakers representing development partners, governments, and the private sector.