OECD tells Southeast Europe to try more for FDI

SOFIA, Jan. 24 – The Organization for Economic Cooperation and Development said Wednesday that Southeastern European countries, Albania included, is suffering from the poor image and that has made they are failing to attract potential foreign direct investment (FDI). “Actual FDI flows remain well below the region’s potential, particularly in the Western Balkan countries,” the report by. The report also said that the FDI inflows depend heavily on privatization. Bulgaria, Croatia, Romania and Serbia attract 90 percent of investment to the region, pointing to a deepening regional split. The OECD report studied government policies aimed at improving the investment environment in Albania, Bosnia-Herzegovina, Bulgaria, Croatia, Macedonia, Moldova, Montenegro, Romania and Serbia. “Time is running out for the region to achieve its full investment, growth and employment potential,” the report said. OECD advised local governments to improve skill-orientated education, encourage competition, intensify regional cooperation and intra-regional trade, and step up the fight against corruption in order to avoid being marginalized. These countries “risk being squeezed between the Central Eastern European countries, which are increasingly active in high-value, more capital and technology intensive sectors, and low-cost, labor-intensive producers in Asia and North America”, it added. (Tirana Times Staff)