Haemus Review: Pavlina Lozanova*: Black Sea, supply and demand for foreign investment in the region / Черно море – източник и обект на чуждестранни инвестиции в региона , [EN, BG]

Pavlina Lozanova*: Black Sea, supply and demand for foreign investment in the region / Черно море – източник и обект на чуждестранни инвестиции в региона , [EN, BG]

* Secretary of the Legal and Political Affairs Committee
in the Parliamentary Assembly of the Black Sea Economic Cooperation

The dynamics in the globalization processes and the intensive international movement of capital have significantly increased the influence of foreign direct investment in the global economy. They are an important source of economic growth, bringing additional capital, advanced technologies and modernization, generating local employment, enhancing competition in the internal economy, stimulating consumption, transferring knowledge, know-how and good practices. Their importance as a key factor in improving the competitiveness of the economy is constantly increasing. In this regard, the development of effective governmental policies to promote foreign direct investment as a major source of incentives for the economic growth are a priority for each country. This article is dedicated to the role of governments in stimulating international investment in some of the countries of the Black Sea region.

Direct investment flows, which are theoretically linked to the levels of global trade in goods and services, have suffered a dramatic decline as a result of the pandemic. According to the Global Economic Outlook (2021-2023), the global economy in 2020 fell to 3.7% (the highest decline since the Second World War) and the volume of global trade in goods and services fell to 9.5% in 2021.The pandemic and its economic consequences have led to a sharp decrease in foreign direct investment globally and a fierce struggle between the countries competing to attract limited resources. According to the United Nations Conference on Trade and Development (UNCTAD), direct investment flows reached 42% in 2020 and a strong jump in 2021, by 77% reaching $1.65 trillion, from $929 billion in 2020, surpassing their pre-pandemic level.

The successful and proper management of financial assets is at the heart of the eternal drive to increase wealth. The investments represent the mechanism between the capital movements of major economic agents and determine the growth of wealth measured by them. Investments are defined as a universal tool for channeling economic agents' savings towards activities which return is equal to or higher than the market interest rate.^{^[2]} The totality of transactions on the sale or acquisition of real or financial assets constitutes investment activity. In this process, participants can be both the state at all governmental levels, as well as the citizens and the business. According to the financial theory and practice, there are two main types of investors – institutional and individual. In general, the behavior of both types of investors is similar, although the institutional investors usually invest bigger amounts. The individual investors are those, who manage their own capital in order to achieve the financial objectives set.^{^[3]}According to the definition used by the UN, foreign direct investment (FDI) is investment made to acquire a lasting interest in or effective control over an enterprise operating outside of the economy of the investor. FDI net inflows are the value of inward direct investment made by non-resident investors in the reporting economy, including reinvested earnings and intra-company loans, net of repatriation of capital and repayment of loans.^{^[4]}

We have to determinate the scope of the Black Sea region, which is the subject of this publication. There are different definitions. This fact is essentially indicative of the region's inhomogeneity in terms of historical, ethnic, geopolitical, and economic factors. For the purposes of this publication, the definition adopted by the European Commission in 2007 will be used. Accordingly^{^[5]}, the Black Sea region includes, in addition to the countries that have direct access to the Black Sea – Bulgaria, Georgia, Romania, Russia, Turkey and Ukraine – as well as those that are influenced by it for historical reasons, geographical location and close links with the above countries. The latter group includes Greece, the Republic of Moldova and the other two South Caucasus countries - Armenia and Azerbaijan. Different understandings of the scope of the region are also reflected in the diverse configurations of the regional cooperation. In the most significant regional organization, for example, the Organization of the Black Sea Economic Cooperation (BSEC), along with the ten countries already listed, there are also Albania, Serbia and North Macedonia (full-fledged member since November 2020). Black Sea is situated on a crossroad of important transport and communication hub through which oil and gas supplies pass. Investments in energy and energy security are priorities for the strategies of the countries of the region and take into account the impact it has on more remote regions, including Central and East Asia, the Caspian Sea and the Middle East. The issue of energy security is mainly based on the conflict of interest between Russia and most CEE countries (including the Black Sea countries). For these reasons, the Black Sea countries are seeking to diversify their supply and energy sources in order to reduce their dependence on Russia. On the other hand, cooperation in the field of energy and the construction of energy routes connects the region with more remote parts of the world, not only economically but also politically. These processes will inevitably lead to a wider range of investors in the region. Infrastructure also plays an important role in promoting trade, investment and tourism within the Black Sea region. The transport sector is developing faster than any other sector in the region. There are three successful Black Sea projects related to the development of transport links, namely the Black Sea Highway Ring project, a project for the development of motorways of the sea and a project to facilitate road freight transport.

The need for urgent recovery pandemic measures has increases the role of trade and investment flows more than ever. The pandemic has had a negative impact on all aspects of social and economic life. Massively destabilizing both global trade and investment, it has caused unprecedented shocks to the global value chains. According to the World Investments Report for 2021, foreign direct investment flows have fallen to 35%. Support measures taken by countries to mitigate the effects of the pandemic-induced economic crisis have led to large budget deficits and a huge increase in debt levels. Global debt, both public and private, reached record levels at the end of 2020, at USD 277 trillion, or 365% of the global GDP. Such debt levels raise concerns about long-term sustainability as well as future implications for the international trade and investment flows. From another hand, the Foreign direct investment flows are recovering faster than the trade flows since investor confidence is much more prone to uncertainty. With technological advances and digitization, trade and investment pressures are becoming even stronger. They are the main factors in stimulating the faster global economic recovery from the pandemic. In particular, they are crucial for developed and less developed countries with small domestic markets and the limited ability to stimulate recovery through fiscal stimulus packages. They are vital to generating a more sustainable, greener, and digital economy.

The inflow of foreign investment depends heavily on several factors, including national legislation, economic sustainability, the social and political situation of a country, economic dynamics, the rate of inflation, an efficient banking system, the modernization of infrastructure, a stable regulatory system for foreign investment and property rights, etc. At the same time, medium and long-term economic stability, legislative framework, well-developed infrastructure are among the factors influencing the investment decisions in particular. One of the most important conditions in the process of stimulating foreign investment is the development of an effective national legal framework for attracting investments, including specific mechanisms of interaction between the state and the foreign investor. The State therefore develops a special state investment policy that should be consistently adapted to the ever-changing investment environment. When shaping investment policies, it is necessary to analyze the main macroeconomic indicators, such as the level and structure of GDP and the volume of foreign investment, with due regard to the country's specific economic stability criteria. It is thus necessary to define the priority areas for foreign investments and the principles of their formulation and to consider current trends in the international capital flows.

Foreign investment legislation includes general and specific legislation as well as the provisions of international treaties. The role of legislators in this process is of utmost importance. The adoption and implementation of the legislation, based on investment policies, is one of the first steps that the states are taking to stimulate and attract more foreign direct investment. Normally, the updating of the legislative system aims to regulate relations between the public sector and the foreign investor, the mechanisms of public and private partnerships, with the aim of guaranteeing the rights of citizens and foreign nationals in the event of possible disputes in independent courts. The favorable investment regime established by the national legislation is one of the most important criteria for economic development, which stimulates the flow of foreign capital within the international competitiveness frames. Another important investment incentive mechanisms include increased transparency on policies and regulations, streamlined administrative and procedural requirements, sharing best practices, and coordination between actors to ensure that policies and regulations are implemented efficiently and effectively.

International agreements and conventions concern closer economic interaction between two or more participants in the investment process. International bilateral agreements also protect and promote foreign investment. They shall be concluded with a view to creating favorable conditions for mutual investment flows between the States. Today, the importance of foreign international agreements is increasing, and they gain priority. For example, the Trade-Related Investment Measures Agreement (TRIMS), the General Agreement on Trade in Services (GATS) and the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) establish mechanisms for Member States of the World Trade Organization to regulate investment activities in the form of capital investment, provision of services, new technologies, goods and services. Ratification of the International Investment Agreements shall become an integral part of the investment legislation of each country. They shall ensure that the potential risks of investing in foreign countries are reduced and their rights are guaranteed. In order to promote and protect foreign investment, governments conclude international investment treaties prohibiting unfair and discriminatory measures against the foreign investors. Investment arbitration claims are expensive procedures with serious financial consequences against the host economy. Currently, more than 2,500 investment agreements are in force worldwide. The aim of investment agreements is: establishing a favorable investment climate that will attract foreign investment; protecting the interests of the investors in the foreign markets. If the investor considers that the host economy has breached a clause in the agreement, the investor shall claim financial damages against the host economy using the agreement dispute resolution mechanism. It involves the use of an independent arbitral tribunal. Claims by foreign investors on investment agreements are increasingly common in the case law. At the end of 2019, there were over 1,000 claims made by investors under investment contracts against 120 different host economies around the world. In the event of disputes, there are some general trends, which include issues of sustainable development, environmental protection, labor protection and human rights.

According to a survey conducted by the World Bank's dedicated on attracting iinvestments,^{^[6]} 14 good practices are identified among successful agencies to encourage the global investment. The recommendation made by researchers is that underperforming agencies should implement these established best practices in order to increase the efficiency of their work and increase their share of foreign direct investment at the market. The most common practices can be summarized in three main categories: internal systems for optimizing the investor services, adapting the way agencies operate to successful private sector practices, gaining in-depth knowledge of sectors and fields that are promoted as a priority in specific country. One of the major gaps in the work of investment promotion agencies is their inability to adapt to the way private sector companies operate. In order to overcome this problem, successful agencies employ staff with extensive experience in the private sector. This aspect is of paramount importance for the management staff. The experience of the private sector agency staff ensures that other companies with highly skilled employees will be in competition. All successful agencies offer salaries which are above the level of the public sector, and within less than one third at the level of the private sector. It is important to note that more than two-third of the successful investment promotion agencies are public institutions, but only 30% of them are directly subordinated to a ministry. In other cases, they are autonomous institutions that are not subordinated to any ministry, but to a higher body - to the Prime Minister or the President. All successful agencies identify several priority sectors of the economy in which they concentrate their efforts. This maximizes the efficiency of the agencies in view with their limited resources. They usually work in a wide network of partners at the regional level. About 80% of the successful agencies have their own representations abroad in countries where a significant number of potential investors are concentrated. Employees in these offices are usually directly subordinated to the agency itself. Over the past 2 years, over 75% of the employees of successful agencies have undergone specialized trainings for upskilling in areas such as investment services, marketing, and innovation.

An important recommendation for successful investment management is the establishment and the maintenance of research capacity, including the collection of the necessary sectoral data and the preparation of in-depth analyses for the current state of affairs and the effectiveness of the investment marketing and activities. Efficient use of information and customer interaction management systems significantly improves the activities of the agencies. The successful agencies manage to create maximum facilities for contacting and accessing investors by providing the necessary contact information (telephone with voicemail, email, etc.). Maintaining internet sites with up-to-date data containing information on existing regulations, investment projects, etc. is of utmost importance. More than 85% of the top agencies promptly upload new content to their webpage at least once a month, and more than half daily. The successful agencies have a comprehensive system for managing inquiries, which describes in detail and clearly the necessary framework within which their relationships with the agency will develop, which facilitates cooperation and increases trust.

The Black Sea Trade and Development Bank (BSTDB) supports the economic development and regional cooperation in the Black Sea region through lending, guarantees and participation in private enterprises and public entities in the Member States. The total portfolio in the Black Sea region is dominated by industry, the financial sector and utilities. At the same time, investment in financing infrastructure, including energy efficiency, will be among the Bank's priorities over the next four-year period. According to the report of the BSTB after several years of economic growth, the positive trend in the countries of the Black Sea region is in recession. In the wake of the 2008 crisis, the Black Sea countries implemented sound economic and financial policies aimed at reducing vulnerability and allay fears of potential weaknesses. The economic growth in the Black Sea region in 2010-2019 was relatively week in comparison with the global market growth rates. Lower GDP growth led to a decrease in the investment levels between 2010 - 2019. The gross investment level in the Black Sea region from 2000-2008 increased at an annual average rate of 12.1%, which is double than the GDP growth rate. From 2010-2019, the annual investment growth averaged only 3.7%. The reasons cannot be sought only in the pandemic and its economic consequences. Regional geopolitics remains complex. Similarly, the economic outlook in some countries in the region is causing capital outflows and a decline in international investment. At the same time, they are regularly cited among the riskiest countries, vulnerable to global financial or economic crises. The countries of the Black Sea region achieved moderately higher real GDP growth of +2-2.5% in 2020. The emerge of the pandemic melted this outlook and, like the rest of the global economy, the region experienced a GDP contraction of -2.4% (negative growth). Economic activity is falling dramatically, unemployment is rising, suggesting that banks' bad loans are expected to rise, and governments are experiencing widening imbalances of key indicators. If the real economy fails to recover sufficiently, it could create a loss of confidence in the markets.

Country	Real GDP Growth	Inflation	GDP Total US Dollars Million	GDP Per Capita	FDI US Dollars Million
Albania	-6.50%	1.60%	14,465	5,026	500.00
Armenia	-7.80%	1.20%	12,587	4,246	200.00
Azerbaijan	-4.30%	2.80%	42,607	4,202	1,500.00
Bulgaria	-4.10%	1.70%	68,312	9,831	500.00
Georgia	-4.90%	5.20%	16,114	-	800.00
Greece	-9.90%	-1.20%	188,805	18,114	3,750.00
Moldova	-8.20 %	3.80%	11,865	3,352	200.00
Romania	-3.90%	2.60%	248,704	12,927	2,030.00
Russia	-3.10%	3.40%	1,478,492	10,131	12,000.00
Serbia	1.58 %	-1%	52, 960	7.636	3,400.00
Turkey	0.40 %	12.30 %	668,642	7,928	6,200.00
Ukraine	-4.80 %	2.70 %	150,228	3,599	-98.00

Main macroeconomic indicators 2020 (source: BSTDB)

The investment policy of the Republic of Armenia is one of the priorities for the government of the country. It applies the open-door policy to foreign investment. According to the Foreign Investment Act (1994), foreign investment in the Republic of Armenia is protected and investors are granted several privileges and guarantees. In 2015, the Armenian Government approved the Concept of Investment Policy of the Republic of Armenia and the Action Plan aimed at increasing the volume of investment, creating a favorable investment and business climate. The Republic of Armenia has concluded bilateral intergovernmental agreements "On the encouragement and mutual protection of investment" with more than 40 сountries. The Republic of Armenia is a member of the International Centre for the Settlement of Investment Disputes and has ratified the Convention on the Settlement of Investment Disputes between States and Nationals of Other States, as well as the International Convention of the CIS for the Protection of Investor Rights. The Government of the Republic of Armenia initiated reforms in the business sphere, offering favorable conditions for foreign investors. It is one of the few countries that uses an EU generalized system of preferences. The legislation provides for compensation for investors, including: 3-year delay in the payment of VAT on imports of equipment, incentives for income tax in case of creation of new jobs within the framework of the projects approved by the relevant governmental decision, exemption from income taxes for large exporters, tax incentives for new companies, tax incentives in industrial zones, exemption from tax on activities in border areas, exemption from VAT, income tax, property tax and customs duties for residents of free economic zones.

The rights and interests of investors in the Republic of Azerbaijan are regulated by the Law on "investment activity", the Law of the Republic of Azerbaijan "for the protection of foreign investment", as well as other legal documents. In order to promote the creation of a favorable business climate and attract foreign investment, the Government of Azerbaijan has signed agreements on the avoidance of double taxation and agreements to promote and mutually protect investments with more than 50 countries. The business registration system has been simplified, the mechanism for granting State financial assistance to businesses has been improved, taxes for entrepreneurs have been reduced, effective mechanisms have been established to protect the rights of businessmen and provide a favorable business environment, a necessary legislative framework for domestic and foreign investors has been established. The Azerbaijani Export and Investment Promotion Foundation, the Azerbaijani Investment Company and the National Entrepreneurship Support Fund are the institutions that aim to support foreign investment and ensure further development of entrepreneurship. These structures perform successful work in the fields such as providing various business services to local and foreign entrepreneurs, expanding business relations, attracting local and foreign investors to participate in the oil sector and giving preferential loans to local entrepreneurs. It should be noted that in order to improve the investment environment to support the development of the oil industry, the following reforms have been implemented: restrictions on the validity of licenses have been lifted, license duties have been reduced approximately twice, license times have been significantly reduced, and inspections carried out in the business sector have been suspended for 2 years. On 17 March 2016, the President of the Republic of Azerbaijan signed a Decree "on measures to establish a special economic zone for the establishment of a free trade area in order to promote the sustainable development of the economy and increase competitiveness.

The governmental policy in the investment field in the Republic of Bulgaria is aimed at maintaining and establishing the effective investment and business environment, macroeconomic stability, improving the administrative environment and maintaining the lowest tax rates, promoting access to finance for small and medium-sized enterprises. The system of measures is governed by the Investment Promotion Act, which is compatible with Regulation 800/2008 of the European Commission. The priority sectors are the manufacturing industry and some areas of the services sector (information technology, research and mechanical engineering, health, education, etc.). Another condition for providing state support for foreign investment is the creation of new jobs for a period of not less than 3 years. In a strategy designed to ensure macroeconomic, financial and budgetary stability within the EU, the Europe 2020 strategy sets out the following priorities: developing a knowledge-based and innovation-based economy, promoting a more resource-efficient, greener and more competitive economy, promoting a high-employment economy providing social and territorial cohesion. Invest Bulgaria Agency is a government institution for the implementation of the state investment policy, including attracting investment, supporting new projects and assisting in their successful implementation. The Agency assists potential and current investors in exploring investment opportunities in Bulgaria and in the implementation of investment projects in the country at the planning stage. The services are free of charge and include provision of information, including macroeconomic data, regional unemployment data, information on the real estate business, investment incentives, legal advice, administrative procedures, infrastructure, relations with central and local administrations, the staff of the Chambers and non-governmental organizations.

The legal framework for international investment in Greece is closely linked to the EU regulatory framework. The EU regulatory framework is one of the most comprehensive in attraction of international investors. Law 4251/14 provides the possibility of entry, stay and employment of foreign nationals, residents of third countries within the EU, for the purpose of doing business in Greece. Greece is developing numerous national programs to attract investments. The Development Act 4399/2016 is a framework law providing diversified incentives, such as tax exemptions, subsidies for labor costs arising from investments. Less developed regions of the country, for example, receive special assistance for agricultural production, research, and innovation. Special aid shall also be granted to undertakings providing increased employment, added value and exports. Greece is developing a special framework to attract strategic investments - mostly over 100 million euro. Such investors shall enjoy a rapid licensing procedure as well as fiscal stability or exemption. International investment cooperation is carried out within the General Secretariat of Strategic and Private Investment.

In order to improve the investment environment in the Republic of Moldova, the government has approved Law No 182/2010 on industrial parks; Law No 440-XV/2001 on free economic zones; Law No 81 of 18 March 2004 on investments in entrepreneurial activities. The Free Economic Zones Act has generated huge demand from foreign investors, especially in the automotive industry. The free zones open up new prospects for economic and social modernization of the country and have already attracted additional investment in the national economy. Investments support the structural transformation and modernization of the Republic of Moldova, especially by creating new jobs that allow for the transition of labor resources to the areas of added value, as well as through the dissemination of technological knowledge and competences in the labor market and local companies. Investment will become a major aspect of economic growth and, therefore, the consolidation and diversification of exports from the Republic of Moldova. Investment and export promotion is a public institution that coordinates the implementation of the competitiveness policy, promoting exports and attracting investment in Moldova. An important prerequisite for attracting investment and promoting exports to Moldova is the existence of a bilateral regulatory framework. Moldova is currently signed over 1 150 mutual investment protection agreements. They create a platform for cooperation in areas of common interest such as infrastructure development, road network, transport, production, etc. Multilateral cooperation shall include the development and diversification of cooperation in accordance with the principles and norms of international law and the promotion of an individual and collective initiative of undertakings directly involved in the economic cooperation process. The priority areas of cooperation with the countries of the Black Sea region are agriculture and food industry, banking and finance, customs, education, energy, environmental protection, exchange of economic information, pharmaceuticals, science and innovation, tourism, trade, transport, etc.

Romania applies a macroeconomic imbalances procedure under the Monitoring Mechanism of the European Commission. Romania currently complies with all the requirements of this mechanism, including the strengthening of macroeconomic policy. The Foreign Investment Act, adopted by the Romanian Parliament in 1991, allows foreign capital to be involved in the creation of commercial companies with foreign capital or in association with Romanian legal entities and individuals. In order to support entrepreneurs, the Romanian Government simplified the procedure for starting a business with a shortened time from 29 days in 2004 to one week in 2016. Business activity in Romania includes industries from high technology and software to creative industries. The national strategy for improving competitiveness identifies 6 key sectors for the economic development of Romania - IT and business services, aerospace, automotive, agribusiness, bioindustry and creative industry. Invest Romania is a governmental institution providing support to foreign investors in Romania and professional advice. The aim of this structure is to strengthen the sustainable development of the Romanian economy and to attract foreign investment, know-how and new technologies for the development of industries that create high added value.

The regulatory legislative framework in the investment field in the Republic of Serbia includes Investment Act; State Aid Control Act; Regulation on general conditions for attracting investment; Regulation on state aid rules; Regulation establishing a single list of regional development and local government units; Regulations on standards for a business-friendly environment in local government units, etc. The Foreign Investment Act defines the economic, legal and social conditions, sites and entities of investment activities, protection of the rights, interests and property of investment entities. In general, the regulation of investment activities in the Republic of Serbia is carried out in accordance with public investment programmes; direct management of public investment; introduction of tax systems with differentiation of tax rates and exemptions; development of certain antitrust areas. Under the General Conditions for Attracting Investment Regulation, funds are allocated to investment projects involving foreign and domestic capital, as well as a specific programme aimed at strengthening the entrepreneurship.

The main legislative acts regulating foreign direct investment in Turkey are laid down in Law No 6224 on the Promotion of Foreign Investments, adopted in 1954. New Law No 4875 of 17 June 2003 defines the fundamental principles of foreign direct investment, ensures the protection of the rights of foreign investors and aligns the standards of investors and investments in accordance with the international law. Accordingly, investors are free to make foreign direct investments in Turkey and enjoy the same equal rights as the Turkish investors. The law also states that tangible and intangible assets invested by the investor in entrepreneurial establishments on the territory of Turkey are regulated in accordance with Turkish legislation. In 1960 Turkey signed an agreement to promote and protect investment with more than 80 countries. They create favorable legal conditions to promote Turkish investment abroad and attract foreign investment in Turkey and contribute to improving the investment climate and economic cooperation between the countries. The Investment Office of the Presidency of Turkey is the only official institution that has taken on the task of promoting investment opportunities offered by Turkey on the world market and assisting investors at every stage of their activities in Turkey. Turkey's International Direct Investment Strategy 2021-2023 was developed under the leadership of the Investment Office and aims to maintain Turkey's competitive position in the region, increase the share of high-value-added investments and ensure skilled employment.

The Law of Ukraine No. 1710–IX "on amendments to the Law of Ukraine "on industrial parks" and some other legislative acts of Ukraine regarding attracting investments in the industrial sector of the economy by stimulating the creation of industrial parks" specifies the mechanisms of state stimulation of the arrangement and functioning of industrial parks, namely: provision of full or partial compensation of the interest rate on loans for the implementation of economic activities within industrial parks; provision of funds on a non-refundable basis for the arrangement of industrial parks and ensuring the construction of related infrastructure facilities (roads, communication lines, heating, gas, water and electricity supply, engineering communications, etc.) necessary for the creation and operation of industrial parks; compensation for the costs of connection to transport networks; provision of tax and customs incentives in accordance with the legislation. In addition, in order to introduce an effective mechanism for attracting foreign investment and supporting the investment development of Ukraine, there is a state institution "Office for Attracting and Supporting Investment”. The main tasks of the Office include: information support of foreign investors in the preparation and implementation of investment projects in Ukraine; attraction of investments, as well as ensuring cooperation of executive authorities, other state authorities and local self-governmental bodies aimed at creating a favorable investment climate in Ukraine;· facilitating the interaction of foreign investors with state bodies, local self-government bodies on the implementation of investment projects; assistance in improving the investment image of Ukraine in accordance with the procedure established by law. In order to stimulate the attraction of strategic investors and increase the investment attractiveness of Ukraine, as well as increase the competitiveness of the economy through the introduction of state support for large investment projects, on 13 February 2021, the Law of Ukraine "on state support of investment projects with significant investments in Ukraine" (No. 1116-IX, dated 17.12.2020) came into force. The provisions of the Law stipulate the amount of investment; the term of implementation of the investment; assistance in improving the investment image of Ukraine in accordance with the procedure established by law.

Investment promotion refers to all activities that the governments and investment promotion agencies carry out in order to attract foreign investment to their jurisdiction and to encourage foreign investors to continue investing and expanding their activities. The countries of the Black Sea region apply some of the best practices to attract investments with high levels of coordination and governmental engagement; effective research and timely provision of information requested by investors; simple procedures and support to investors in order to facilitate their activities; tax incentives and other benefits in investment areas; strategic targeting of specific sectors or companies; investment strategy; commitment to the existing needs of investors; consultancy services; services for subsequent and post-investment services for investors; monitoring and evaluation of investment promotion activities.

Currently, main directions of development of international economic relations are to strengthen investment cooperation among countries. At the same time, expanding trade and investment and strengthening economic sustainability will require more trade and investment cooperation at national and regional level. A transparent, predictable, and business-friendly environment is key to for the promotion of trade and investment. In meeting these objectives, it is necessary to establish and promote favorable conditions for foreign investors, thereby promoting economic growth in the region. The promotion and mutual protection of investments based on bilateral and multilateral agreements contribute to the development of integration processes, mutually beneficial trade and economic cooperation between the countries. Taking into account the above, the policy to strengthen international investment activities in the Black Sea region remains one of the main drivers in the process of sustainable development, stability and prosperity.

Sources:

Adamov, B., Prodanov, S., Investments, Veliko Tarnovo, 2007
European Commission. 2007. Communication from the Commission to the Council and the European Parliament. Black Sea synergy: A new regional cooperation initiative. COM (2007) 160 final. Brussels: EC.
World Investment Report 2021
Investment Promotion Essentials, Investment Climate Advisory Services, World Bank Group, Washington, D. C., 2009www.bstdb.orghttps://www.kearney.com/foreign-direct-investment-confidence-index/2021-full-reporthttp://www.un.org/esa/sustdev/natlinfo/indicators/methodology_sheets/global_econ_partnership/fdi.pdf

[BG]

Черно море – източник и обект на чуждестранни инвестиции в региона

Динамиката в процесите на глобализация и интензивното международно движение на капитали значително увеличиха влиянието на преките чуждестранни инвестиции в световната икономика. Те са важен източник на икономически растеж, носещ допълнителен капитал, усъвършенстване на технологиите и модернизацията, генериране на местна заетост, засилване на конкуренцията във вътрешната икономика, стимулиране на потреблението, прехвърляне на знания, ноу-хау и добри практики. Значението им като ключов фактор за подобряване на конкурентоспособността на икономиката непрекъснато се увеличава. В тази връзка разработването на ефективни правителствени политики за насърчаване на преките чуждестранни инвестиции като основен източник на стимули за икономическия растеж са приоритетни за всяка държава. В настоящата статия се разглежда ролята на правителствата за стимулиране на международните инвестиции в някои от страните от Черноморския регион.

Преките инвестиционни потоци, които са теоретично свързани с нивата на световната търговия със стоки и услуги, претърпяха драматичен спад в следствие на пандемията. Според Глобалните икономически перспективи (2021—2023 г.) световните икономически нива през 2020 г. са спаднали до 3,7 % (най-високият спад от Втората световна война насам) и обемът на световната търговия със стоки и услуги е спаднал до 9,5 % през 2021 г. Пандемията и икономическите последици от нея довеждат до рязко намаляване на преките чуждестранни инвестиции в световен мащаб и до ожесточена борба между страните, конкуриращи се за привличане на ограничените ресурси. Според Конференцията на ООН за търговия и развитие (УНКТАД) потоците от преки инвестиции са достигнали 42 % през 2020 г. и силен скок през 2021 г., с около 77% достигайки 1,65 трилиона долара, от 929 милиарда долара през 2020 г., надминавайки равнището им преди пандемията.

Успешното и правилно управление на финансовите активи са в основата на вечния стремеж към увеличаване на благосъстоянието. Инвестициите представляват механизмът, чрез който се осъществява движението на капиталите между основните икономически агенти и чрез който се обуславя растежът на измереното с тях богатство. Инвестициите се определят като универсален инструмент за насочване на спестяванията на икономическите агенти към дейности, които имат процент на възвръщаемост равен или по-висок от пазарния лихвен процент.^{^[7]} Съвкупността от сделки по продажбата или придобиването на реални или финансови активи представлява инвестиционната дейност. В този процес участници могат да бъдат, както държавата на всички нива на управление, така и гражданите и бизнесът. Според финансовата теория и практика съществуват два основни вида инвеститори – институционални и индивидуални. Като цяло поведението и на двата вида са аналогични, независимо че институционалните инвеститори обикновено инвестират по-големи суми. Индивидуалните инвеститори са тези, които управляват своите собствени капитали с цел постигане на заложените финансови цели.^{^[8]} Съгласно дефиницията, използвана от ООН, преките чуждестранни инвестиции са инвестиции, които се извършват с цел да се придобие дълготраен дял в или ефективен контрол върху предприятие, което осъществява дейността си извън териториалните граници на държавата на инвеститора. Входящите нетни потоци на преките чуждестранни инвестиции включват входящите преки инвестиции, извършени от инвеститори не-резиденти, включително реинвестираната печалба и вътрешнофирмените заеми, както и нетната стойност на репатрирания капитал и изплатените кредити.^{^[9]}

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Pavlina Lozanova*: Black Sea, supply and demand for foreign investment in the region / Черно море – източник и обект на чуждестранни инвестиции в региона , [EN, BG]