GUIDE ON FOREIGN DIRECT INVESTMENT, ENVIRONMENT AND INTERESTED PUBLIC

Objectives of the article/post

Montenegro as an ecological state, declared by Constitution, must access every process with special sensibility and responsibility to future generations, especially in part of attracting foreign investment as one of the most important assumptions for further development. 

Previous experience with foreign investors, mostly negative, as evidenced by examples of privatizations of large systems like Kombinat aluminijuma Podgorica (KAP), should raise the level of caution in the whole society, especially since the consequences of accumulated debts and given garantees are infuencing the quality of the environment, where the citizens of Montenegro live and work. 

Recognizing the responsibility of civil society organisations in decision making related to the environment, which is linked with economic development, foreign investments and privatizations, the Environmental movement „OZON“ wants with this Manual to contribute to creation of positive business environment for attracting of serious investors, who will see the ecological country not as an obstacle but rather as a vision towards which they will adjust their interests and long-term strategic goals. 

Another reason that we can not and do not want to skip, is blaming NGOs, as most active and dominantly most critical segment of civil society, for „chasing away“ the foreign investors. In that way some centers of power were trying to justify their wrong decisions, which had negatively affected the quality of life and environment in Montenegro which they deliberately don’t want to show to the public precisely expressed in ecological and economic parameters. 

The great challenge that we are taking with a sincere wish to use our knowledge and experience for human cause, should affect the stimulation of argumentative public dialogue, or more accurately the wide consultations and involvement of expert and lay pubic in all future development projects or privatizations that will have an impact on the environment. 

As an association that publicly advocates the model of proactive institutions that will offer their services to users, rather than create obstacles with procedural and administrative barriers, we hope that this approach will be recognized by decision makers but also by potential foreign investors who want to invest in Montenegro. 

We hope that this Manual will help create a positive climate for investment, particularly in the area of environment, but that will also reduce the space for various abuses and irregularities, which is also essential for the whole society. 

Content Summary: 

Years of experience and the results that we’ve achieved in cooperation of government institutions and NGOs in the environmental field, gives me the right to assert that, among other things, it was one of the key preconditions for successful implementation of standards in the field of environmental protection, strengthening the capacities of our institutions, transparency of work and access to information in the field of environment, as well as participation of citizens in decision making. 

We realize that procedures for obtaining environmental approvals are interpreted as barriers to business, but the practice in the implementation of laws in this area shows that those are good mechanisms to overcome all the problems that could be an obstacle for successful implementation of major investment projects. 

That is why this manual is a ‘visa’ for successful preparation of projects and guidance that does not leave a possibility for error.

Key Takeaways:

The key recommendations that we can give to potential investors are early consultations with interested public and transparency of the whole process. 

Responsible and open approach from the very beginning has a positive effect on business image. Talking about the investment of several million of euros, implies the existence of long-term strategy and vision, so potential investors must take an adequate attitude not only towards the decision makers at the highest level but towards all interested public that seeks guarantees. 

Having in mind too long period of transition and economic crisis in this region, and several bad experiences in privatization process and finally the negotiation process with the EU, it is a logical approach to give the investors information about the plans at the state and local level in preparation phase, because the development strategies must be aligned. 

As we have already explained the theory that the environment in Montenegro is actually already a part of EU, which means that it enters the sphere of interest of citizens of this international community, it is clear that potential investors need to be well informed about the compliance of domestic legislation with the EU, or the dynamics in that process that is “alive”. 

Also, it is very important how the media is informing the public, because potential investors often have omissions that are causing them a significant damage. For example, it is not the same if you say that the implementation of the project will “improve the quality of environment” or “during the project implementation the application of the best standards in the area of environment will be taken into account”. 

Funds given to lobbysts often can be used in a more qualitative manner, in particular by informing the public of the planned investments, exploring the business environment, local communities, ordinary people and their vision and needs… 

The fact that we are ecological state, defined by Constitution, is a clear message to serious investors that they have to pay attention to environmental issues from the very beginning. 

In the end, noting that we are well aware that Montenegro is relatively small market, we want to highlight significant natural resources that we have, whose proper valorization could undoubtedly bring benefits to users. 

Impact on the target audience

The recommendations given in this Manual will provide guidance to all those who really want to listen to the needs of local communities and to make them the first and most important strategic partner, which is for us an undeniable evidence of serious and long-term interest, as well as the sustainability of investments. 

Potential investors have a great responsibility and they need to understand the caution that interested public has, especially civil society organisations that protect public interest, because the long period of transition and economic crisis as well as bad experiences do not leave a room for unconditional optimism. 

Montenegro has an unused potential but also significant environmental problems that need to be solved for which we need significant foreign investment, and we believe that joint observation of these two factors should be applied in all future projections and planning. 

Attachments:

OZON MANUAL FOR INVESTMENTS AND ENVIRONMENT.pdfOZON MANUAL FOR INVESTMENTS AND ENVIRONMENT