REPORT
The WAIPA Executive Meeting (WAIPA EM) took place at the Palais des Nations in
Geneva, Switzerland, on 28 and 29 January 2004. The plenary sessions of WAIPA EM
were devoted to the following topics: "Best Practices in IPAs Target Setting and
Performance Evaluation", "ICT Industries, an Opportunity for FDI?", and "Strengthening
the Role of IPAs in Policy Advocacy". This year, the Conference consolidated the format
of plenary meetings on day one and workshops a la carte on day two, whose dynamism
and openness has been greatly appreciated by WAIPA members.
268 delegates from 90 countries participated in the two-day event, 65 of whom were
heads of IPAs. This involves an increase of 30% from last year's event and confirms the
success of the WAIPA Conference as an Executive Meeting for Heads of IPAs. WAIPA EM
has also attracted numerous representatives of the private sector, ranging from service
providers, business information professionals, and economic media, as well as officials
of international and multilateral organizations, NGOs, and the academia. It is broadly
acknowledged that WAIPA has consolidated its position as the world’s largest annual
gathering of senior investment promotion professionals.
In spite of the snow and adverse weather conditions, investment professionals from all over the world
arrived in Geneva on the eve of the WAIPA Executive Meeting to participate in the pre-registration
events. These events included a one-day training workshop facilitated by Pro-Invest - a program of
the European Union for IPAs in Africa, Caribbean and Pacific (ACP) - on maximizing the efficiency of
the sales and marketing effort of investment promotion professionals, a "Brown Bag Lunch" organized
by UNCTAD to present the IT product "The Investment Gateway" and to network at the cocktail
sponsored by The World Free Zone Convention.
Ms. Patricia Francis, President of WAIPA, opened the Conference on 28 January 2004 together with
Mr. Carlos Fortin, Deputy Secretary General of the United Nations Conference on Trade and
Development (UNCTAD), who also hosted the Conference. Ms. Francis welcomed the fifteen new
members, which joined WAIPA in 2003 and thanked the sponsors of the WAIPA Executive Meeting
that included Ernst & Young, IBM-PLI, OCO Consulting, IPAWorld, The Free Zone Convention, and
Euromoney.
Substantive discussions started with Mr. William Pedder, Chief Officer of UK Trade and Investment
and Chairman of the session, setting the different macro and microeconomic parameters that should
be considered for fixing FDI targets and evaluating IPAs performance, such as increases in the
number of jobs or the number of projects facilitated. Furthermore, an IPA should decide whether its
indicators of performance will encompass regional or national data, and more importantly, how it will
motivate its staff in achieving individual performance targets. It is very important for any IPA to recruit
qualified staff and compensate them according to their performance and contribution. In conclusion, he
noted that in formulating indicators or performance, IPAs need to be clear on their objectives, beware
of targets that can skew activities, and establish a range of key performance indicators.
Next, Mr. Kai Hammerich, Director-General of the Invest in Sweden Agency (ISA) presented his
organization's "return on investment" performance evaluation, which utilizes several criteria for each
project, including: size of investment (quantity), importance of the investment (quality), type of
investment, location, potential for technology transfer, etc. He stressed that when measuring
performance, it is very important to maintain a "team spirit" so that individual performance
considerations will not override the overall interests. CzechInvest's methodology was presented by its
CEO, Mr. Matin Jahn. Operating targets are set every two years and the results of the bi-annual
performance evaluation are announced publicly. CzechInvest also maintains quality by adhering to
ISO 9001/2000 standards and regularly benchmarking itself to IPAs in other countries. Once a year, an
internal audit is performed by an external consultant and CzechInvest's employees undertake a
regular assessment process every six months. Mr. Charles Jonker, Chief Executive Officer, Gauteng
Economic Development Agency (GEDA) explained that GEDA’s performance targets are established
in collaboration with the provincial government and, after passing through an internal planning
process, annual strategy and performance targets are elaborated for a three-year period. Further,
GEDA’s objectives are not only confined to quantifiably measurable targets, as the Agency also seeks
to maximize employee satisfaction, become recognized as an active community member, and facilitate
the flow of information between investment opportunities in the region and potential investors.
The second session of the WAIPA Executive Meeting focused on the role of Information and
Communication Technologies (ICTs) in attracting FDI. The session was opened by Mr. Talal Abu-Ghazaleh,
ViceChair of the UN ICT TF, and Chair of the ICC Commission on E-Business, IT and
Telecoms. Mr. Jan Smit, Senior Consultant at Ernst & Young – ILAS -, made a presentation on the
evolution of the ICT value chain and implications for developing countries. Foreign investors in ICT
are driven by the global fragmentation of the ICT value chain (R&D, rentals, repairs, media
productions, end-users, wholesale, and retail), such as in software application development and
transaction processing. In ICT manufacturing, investors are looking at off-shoring manufacturing.
Developing countries should ensure that their business environments are supportive of ICT activities
and facilitate provision of suitable forward and horizontal linkages and opportunities for foreign investors,
rather than focus exclusively on production of hardware, software code, or processing data.
Mr. Roel Spee from IBM Business Consulting Services – PLI -, delivered a presentation on trends and
future outlook for the ICT industry. Most FDI in ICT in 2003 originated from the US and flew to Asia.
Of these projects, most went into sales and support, manufacturing, and software development. The
last panelist in the second session was Mr. Mark O’Connell, Managing Director of OCO Consulting,
who focused on the strategies that the developing countries can adopt in attracting FDI in ICT and identified
opportunities in ISP, e-banking, LAN, wireless technologies, satellite communications, earth stations,
public access services, IT services, telecom & BPO, and software development. Developing
countries wishing to attract FDI in ICT also need to have appropriate legal and regulatory frameworks
in place.
The joint high-level session with UNCTAD’s Commission on Investment, Technology and Related
Financial Issues focused on the role of IPAs in Policy Advocacy. The session was opened by Mr.
Rubens Ricupero, Secretary-General of UNCTAD, and chaired by Mr. Karl Sauvant, Director of
UNCTAD’s Division on Investment, Technology and Enterprise Development.
The keynote speaker, Mr. Demian Fiocca, Secretary of International Affairs of the Brazilian Ministry of
Planning, presented recent political and economic developments in Brazil and efforts by the
government to improve the investment environment. He illustrated the government's efforts with
examples on macro and microeconomic measures and the planning of infrastructure projects using
public-private partnerships (PPPs). Mr. François de Laage de Meux, President of the French
Committee of the International Chamber of Commerce, emphasized in his presentation the role of the
business community in assisting governments to improve the investment environment, but he also
underlined the importance of international agreements and called for the reopening of WTO talks. Mr.
Peter Rashish from Kissinger McLarty Associates, a United States based think tank, highlighted the
importance of partnerships between IPAs and the private sector and broadened the discussion to
include a number of stakeholders in the policy advocacy process as IPA allies or constituents of IPA
services, e.g., trade unions, policy foundations, the media, NGOs, and national and regional politicians.
Two presentations were given by heads of IPAs, which have performed successfully in policy
advocacy. Mr. Kai Hammerich, Director-General of the Investment in Sweden Agency (ISA),
and Ms. Aminata Niane, Director of Senegal’s Investment Promotion and Major Works Agency
(APIX) stressed the importance for the IPA of having a clear political mandate and the difficulties
that IPAs face in positioning themselves between their private sector clients and the
government. The discussion was divided between proponents of an IPA that positions itself
between the private and public sector, and those who highlighted the importance of being part of
the government in order to influence policies.
In the closing session, Ms. Patricia Francis, President of WAIPA, gave a brief presentation on the
program of the WAIPA 2004 Annual Conference. She also gave the floor to Mr. Demian Fiocca,
who on behalf of the Government of Brazil, invited participants to the Conference, which will be held
from 15 to 16 June 2004 in Sao Paulo, Brazil.
The plenary sessions were followed by the welcome cocktail where WAIPA, in partnership with
Euromoney Ltd., launched the WAIPA Annual Magazine. The magazine will be released for the WAIPA
Annual Meeting in Sao Paulo and will include the results of a survey conducted by UNCTAD on FDI
prospects and the implications for IPAs.
WAIPA's Steering Committee met on two occasions during the Conference. Proposals were
discussed to amend the WAIPA Statutes, especially in those articles dealing with the structure and size
of the Steering Committee and the assets of the Association in case of dissolution [Articles VII and
XXIV of WAIPA statutes].
On the second day of the WAIPA EM, delegates could choose from a menu of parallel activities,
ranging from training workshops in topics such as tools for policy advocacy, strategic marketing, and
new trends in investment promotion, to individual tutorials on FDI statistics facilitated by the team of
the World Investment Report. UNCTAD organized another "Brown Bag Lunch" to share with
participants; the "Investment Compass", a new web-based benchmarking tool, which reveals the
competitiveness of each country's taxations system for FDI.
WAIPA would like to thank UNCTAD for hosting the WAIPA Executive Meeting and for the
support of its Investment Promotion Section (IPS) in the organization of the Conference.