UNUnited Nations Economic Commission for Europe
Industrial Restructuring and Enterprise Development
Major achievements in 2003

UNECE organized the first Land for Development Forum to promote a better understanding of the role of property rights as a tool for economic growth and identify the ways that property rights could be made available to the poor. As result of that event, the Government of the United Kingdom agreed to support the Forum's programmes to establish special arbitration courts for poor rural workers to protect their rights. In addition, new property legislation was enacted in CIS to give new rights to poor people.

UNECE produced the Report on Small and Medium-sized Enterprises (SMEs) in Countries in Transition in 2000-2001. This pioneering document presents the recent statistics on SMEs, as well as legislation and support measures for SMEs in countries in transition. The Report attests to the need to improve the framework regulatory conditions for entrepreneurship and SMEs in several countries of the region.

UNECE organized the Second Forum of Women Entrepreneurs, gathering over 250 women entrepreneurs from 28 countries (March). The discussion at the Forum focused on initiatives and best practices of governments, private sector and other stake- holders aimed at improving access of women entrepreneurs to financing and new technologies. It was decided that, in addition to organizing the biennial Forums of Women Entrepreneurs, UNECE would support the organization of subregional events, explore possibilities for organizing training sessions in cooperation with sub-regional groupings, such as Central European Initiative, Black Sea Economic Cooperation and Special Programme for the Economies of Central Asia, and strengthen cooperation with regional commissions, especially with the Economic and Social Commission for Asia and the Pacific (ESCAP).

The secretariat released the first publication in the series on women entrepreneurship entitled "Women's Entrepreneurship in Eastern Europe and CIS Countries." It overviews trends, major problems and policy issues related to women's entrepreneurship in countries in transition.

The secretariat produced summary proceedings of the Workshop on Policy and Regulatory Options for Promoting Industrial Restructuring in the UNECE Region and the Conference on Innovation as a Vehicle for Industrial Restructuring, organized under the auspices of the Team of Specialists on Industrial Restructuring in April. This document, intended for government decision makers, summarizes the major ideas and proposals put forward by the participants.

UNECE promotion of the economic dimension of security in Europe has borne fruit with the decision taken at the OSCE 10 th Ministerial Council in Porto, on 6-7 December 2002, to renew its commitment to the economic dimension. In 2003, the secretariat prepared a report to the OSCE Economic Forum in Prague (May) on the performance of OSCE participating States in implementing their commitments to good governance.

Major challenges for 2004

The main challenge in the enterprise development and restructuring programme will be to contribute practically to the establishment of the rule of law, in particular the enforcement of property rights and contract discipline, in countries in transition. The improved transparency and accountability of both large and small enterprises will facilitate the financing of new start-up companies as well as the modernization of existing enterprises.

UNECE will continue to strengthen its cooperation with OSCE in establishing an effective conflict prevention capacity. UNECE is expected to be given a mandate by the OSCE New Strategy Document to develop proposals for the establishment of "an early warning system" in the economic and environmental dimensions.

In the area of entrepreneurship promotion, UNECE will focus its work on good governance for SMEs. As a first step, in 2004 it will organize an expert meeting on good governance for small and mediumsized enterprises. The final objective of this new direction is the development of guidelines on business ethics for start-up entrepreneurs.

UNECE will finalize its new recommendations regarding the establishment of integral management systems for industrial and services enterprises, including SMEs.

Poor governance and organized crime in some parts of UNECE region are a major barrier to establishing public-private partnerships (PPPs). The main challenge for the UNECE PPP Alliance will be to agree on guidelines which could improve transparency and investor confidence in PPPs, and develop ways to implement them.

One of the major challenges for the UNECE Real Estate Advisory Group will be to find effective practical ways to implement the Land for Development Programme in particular, to translate proposals for formalizing property rights into effective policies. To this end, of utmost importance will be the development of a tool kit for governments which will help identify policies conducive to the practical use of property rights for development.

In the context of gender mainstreaming, challenges will be the organization of a subregional UNECE Forum of Women Entrepreneurs in Turkey, a Regional Symposium on Gender Mainstreaming in Economic Policies, and the preparation for publication of the second volume in the series on women's entrepreneurship "Women Entrepreneurs in the ECE Region: Access to Financing and ICT."