PUBLIC SECTOR
The public sector faces globalization as well, especially on provincial and municipal level. With the private sector being global, even a local investment is decided about on international level.
While the public sector on federal level can take full advantage of its diplomatic ties worldwide, provinces and municipalities have to work a lot harder for attracting FDI (Foreign Direct Investment) to their region. Marketing terms such as "Exposure" and "Brand Awareness" gain importance, not anymore just in the field of tourism.
Investment incentives should not just attract but tie and keep investors. Our international experience as strategy and development consultants to the private sector is of tremendous benefit to public sector clients.
Understanding investors from all parts of the world and their particular objectives is the key to successfully building an attractive environment for FDI. Carefully diversifying the geographic origin of investments is very important nowadays as well, with political preferences changing frequently.
ECONOMIC DEVELOPMENT STRATEGY
Investment incentives such as grants, subsidies and tax cuts only make sense if sustainable and attracting the industries which fit best. Therefore, your focus should not only be set on "How to attract" but also on "How to tie and keep".
1) SWOT and USP analysis of the country, its major areas and its workforce.
2) Incentives for job creation based on current and future education level.
3) Identification of easy-to-migrate industries with high cluster potential.
4) Creating 1-year, 3-year, 5-year, 10-year and 20-year milestones.
ATTRACTING INVESTORS
You want to attract FDI (Foreign Direct Investment) to your country, province or city? You need an international brand awareness for business, similar to famous "Brand Dubai" for tourism! Additionally, you determine your target industries (cluster oriented) and desired type of lead investors; and create sustainable incentive programs around this.
1) Stimulus (Introduction)
2) Initial Negotiations
3) Unbiased Due Diligence
4) Visit
5) Decision
6) Controlling
1) Suspect
2) Prospect
3) Lead
4) Opportunity
5) Investment
6) Controlling
With public budgets being tight and public debts becoming unpopular, public private partnerships (PPP) are gaining importance. Deciding about the partners for financing, construction and operation is part of the tender process. But, the ideal partners have to be identified, approached and attracted to the tender first. Especially developing and emerging countries are facing problems here, but we're there to assist.
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