The Investment Development and Export Advancement Support (IDEAS) Project will have the following components and expected results: Component A: Foreign Direct Investment (FDI) / Domestic Investment (DI) / Export Facilitation and Investment Aftercare Improved This component will address three themes: 1) Implementation of the new GOM Industrial Policy for enhanced inter-ministerial coordination and streamlining of DI, FDI and aftercare Issues to be Resolved: Domestic and foreign investors are confronted with no clear and transparent system for facilitating investment or coordinating the development and management of national competitiveness policies and programs between ministries. Expected results within 4 years: 1) The current system for FDI/ DI facilitation and aftercare is streamlined and better coordinated; 2) The inter-ministerial coordination structure of the Industrial Policy is operational and effective; 3) Select programs described in the Industrial Policy are successfully launched and fully implemented with tangible results; 4) New FDI, DI, exports, and jobs have been created as a result of these efforts; 5) The GOM has monitoring and evaluation systems and capacity to monitor results; and 6) The private sector is involved with the implementation of the Industrial Policy; and through the Policy's structure the GOM accepts and responds to private sector requests in a coordinated fashion. 2) Development and Implementation of a comprehensive export promotion strategy and trade policies to support exports Issue to be Resolved: The Agency for Foreign Investments was recently granted authority to promote exports in addition to its original mandate to promote foreign investment. It will assume full responsibility for export promotion in 2011, but currently has no organizational capacity or expertise in this area. Expected results: Within 2 to 3 years the agency is capable of providing professional export promotion assistance resulting in increases in exports. A comprehensive export promotion strategy and supporting policies are in place and being implemented. Increases in new DI, FDI, exports, and jobs are realized and tracked by the Agency. 3) Continued Professionalization of the Public Procurement system Issue to be Resolved: Lack of professional procurement officers hampers competition, constrains new investment by domestic and foreign firms and reduces public confidence. In addition, the private sector that bids on government contracts is still unfamiliar with new procurement requirements and procedures. Expected results within 2 to 3 years: Use of the e-procurement system continues to grow, enabling the government to make real progress on achieving its targets for the e-procurement system. If appropriate, legislation for increasing the independence of PPB is passed. GOM procurement officials are trained and certified as procurement professionals and a formal procurement certification program is established and well functioning. In addition, the quality of goods and services provided to the GOM is enhanced and opportunities for corruption are decreased because access to public procurements for foreign and domestic firms is more fair and transparent as a result of more competent procurement professionals and knowledgeable private sector bidders. Component B: Public-Private Dialogue (PPD) Enhanced Issue to be Resolved: Generally, there is a lack of standardized and transparent mechanisms for the private sector to effectively identify its needs and communicate them to the Government; the private sector lacks capacity to undertake diverse and productive approaches to advocacy; and the public sector lacks the capacity and resources to filter and analyze requests and provide a clear and confident response, when appropriate. Expected Results within 4 years: (1) Select chambers and business associations actively engage in professional advocacy using diverse and productive approaches without USAID support. (2) Sustainable and equitable public private dialogue mechanisms are established. (3) The media provides the following: transparency to private sector requests and government responses, a means for officials who champion reform to receive recognition, and a way for inactivity or non-responsiveness to be publicized. (4) One or more existing or new sustainable private sector organizations, like the NECC, are sustainable and serve as an equal counterpart to the Industrial Policy's Competitiveness Committee of Ministers and the Inter-Ministerial Expert Group and its input is incorporated into the development of Industrial Policy measures. Component C: Legal Framework on Planning and Permitting of Construction Land is Improved Issue to be Resolved: Spatial and urban planning in Macedonia is supposed to provide guidelines for national development and the efficient management and use of various types of land such as construction and agricultural land. However, the urban and regional planning process in Macedonia is complex and confusing, involving multiple national and sub-national agencies. This complexity often inhibits foreign and domestic investment because investors have difficulty buying and utilizing real property due to an incomplete and uncoordinated legal framework that results in unclear, lengthy and overly expensive procedures for obtaining land use and construction permits. Thus, many investors shy away from Macedonia and invest in other countries in the region. This component will only address the legal framework relative to the planning and permitting of construction land. This component will analyze, update, and amend the legal framework covering the processes and procedures related to planning and permitting of construction land, so that the process of planning and the issuing of construction permits is streamlined and more effective. Expected Results within 2 to 4 years: The legal framework is complete and coordinated resulting in clearer, less lengthy and expensive procedures for spatial and urban planning and construction permitting.
