The American Chamber of Commerce (Amcham) was created in 1993 to provide possibilities for increased business contacts and partnerships in Slovakia. Can you tell us what have been the main steps that marked the Chamber's development since its creation and what services the chamber provides to local and foreign investors seeking to develop their business inside and outside Slovakia?
At the beginning, the Chamber, with less than 20 members, was quite a small organisation. It was more of a socially orientated organisation at that time, especially for the American and international community. Now, after eight years, we have well over 200 members. Services have expanded and we are always looking for ways to increase benefits for our members. Basically, what we have to offer comes down to three main services:
1. Contacts
2. Information
3. Advocacy
Almost everything we do fits under these three pillars. We provide our members with the possibility to make contacts with the Slovak government, business people, companies, non-profit organisations or other members of the Chamber. The benefits of membership are diverse and varied. Companies and individuals join the Chamber of a great variety of reasons. As part of our efforts to develop business, we organise and host events for businesspeople to increase their contacts and networking possibilities. We provide companies and individuals with information on what is going on in Slovakia. A large part of this information is available through our monthly magazine. We provide information about our general membership, about our members and our activities. We also provide notices and information from the US Government and the US Embassy here in Bratislava. In addition, we provide access to services as well as information about newly developed legislation. The service that has increased the most over the past year and a half is our advocacy efforts on behalf of our members. Most of that is done through Task Forces, which are a little different from the structure that we previously had. Our Task Forces are usually called together to examine legislation; the most common form of recent advocacy was commenting on and addressing proposed changes in the Slovak Labor Law and the Commercial Code.
Do you believe that there is a shortage of correct and concise information about Slovakia for foreign investors?
In the past there has certainly been a lack of information published about Slovakia; historically this has always been a problem. Slovakia itself is a young country and many people are still unfamiliar with its history. People tend to be poorly informed and therefore do not recognise the potential of Slovakia. We are working on this issue along with the Slovak government to improve the availability of public and legislative information.
How is the chamber funded?
For the most part, it is funded by our membership fees. Our members pay a yearly fee that basically covers our costs. We also realize some profits from events and some services or increased funding. Financially, we are completely independent from other official institutions, from the US Chamber of Commerce, the US Embassy and the US Government. Of course, we co-operate with these institutions but we have no direct financial ties to any of them.
Which sectors do your members mainly belong to?
They come from a great variety of sectors. We many financial institutions, manufacturing companies, service providers, consulting related companies, banking institutions, law firms and many others.
Since its creation, the American Chamber of Commerce ( Amcham ) has been promoting trade and investment between the USA and the Slovak Republic. According to you, what have been Amcham's major achievements for both countries?
Our main achievements have been to raise the awareness of the importance of foreign investment and foreign investors in Slovakia as well as their contribution to the national economy. We do have some members in the USA but we are mainly focused on being a service organisation for our members here in Slovakia. We do promote trade between the two countries but that is not the primary reason for our existence. Our major achievements have been increasing business contacts and opportunities for both countries, but mostly here in Slovakia.
How would you evaluate the level of trade between Slovakia and the USA?
I think the US is still classified as the
fourth largest investor in Slovakia. It is
on a very significant level, especially after
US Steel's investments in Kosice. The trade
between the two countries is increasing. There
are even some Slovak companies investing in
the US now. |
How would you describe your level of co-operation with foreign and local chambers, including the Central and Eastern European Amcham network?
We have an excellent level of co-operation, which has been significantly improved for two main reasons:
1. We have at least two official meetings per year with the European Council of American Chambers of Commerce-one in Washington DC and one in a European member AmCham. These conferences are always a good opportunity for exchanging and sharing information, and seeing how other Chambers operate. Being relatively a 'new kid on the block' last year, I invited many nearby AmChams to come here in September 2001 for a Central and Eastern European Summit, which was very successful and useful for improving our operations.
2. We usually meet on a monthly basis with the 'Chamber of Chambers' also known as 'The Foreign Chambers Association', which consists of the Chambers from France, Great Britain, Sweden, Italy, Holland and other European countries. We have very positive working relations with other European Chambers of Commerce.
What have been the major initiatives undertaken by the local government to attract FDI to Slovakia?
The present government has proposed some relatively attractive incentives for foreign investors, such as the so-called tax-free holiday scheme, and various other incentives created to attract foreign investors. We would like to see stronger incentives, especially in the regions that suffer from high unemployment. One of Slovakia's most impressive examples of FDI is US Steel in Kosice.
Since 1998, the Government has undertaken major steps to restructure the economy, through the privatisation of strategic state companies, bearing in mind the EU integration target. Within this framework, could you give us your opinion on the steps that Slovakia has to take towards its integration into the European and world bodies, and what role do you and your office play in this process?
I have to be very careful about commenting about this situation, but it is no secret that the international perspective of Slovakia is built upon its past and any return to those practices would definitely mean a decrease in foreign investment. The major factor that will influence Slovakia's integration into NATO and the EU are the parliamentary elections, now scheduled for September 2002. Returning to the past would be devastating for the integration process, for investment levels and for the socio-economic development of the country. One of the greatest hindrances for progress, and the influx of FDI, is also the significant presence of corruption. While Slovakia has advantages in many areas if we compare it with other countries in the region, I think corruption is an overwhelming concern in the entire region. Corruption is institutionalized; it is real legacy here and it's almost accepted as common practice. If Slovakia can manage to significantly reduce corruption, foreign direct investment would definitely increase. One significant role we strive to play is participating in the legislative process and tracking and commenting on legislation as it is brought in line with EU requirements.
In your opinion, what sectors have the best growth potential and the greatest need for FDI?
The agricultural sector is a sector that could definitely benefit from foreign investments; it certainly is needed. We would also like to see a lot of investment within the IT sector. Tourism is also in great need of investment and development, however I strongly feel that the service industry needs to be developed first in order for tourism to be established and promoted successfully.
As the Executive Director of Amcham, you are involved in many different sectors of the economy. Could you give us an overview of the investment climate here in Slovakia?
The investment climate is positive and evolving. Two major factors that will affect it are, again, corruption issues and the upcoming elections. There are very strong feelings among foreign investors that Slovakia simply cannot return to the past, as it would be devastating for the future socio-economic development of the country.
What would be your greatest personal challenge over the next few months?
I would like to see the beginnings of program to foster a reduction in institutionalised corruption. I am working to develop a formal plan for combating corruption and educating people about this problem. I have some plans, but can't really reveal them yet. I have had a very exciting year and I am more excited about 2002 as I am looking forward to developing our chamber and its services and increasing our membership.
Note: World Investment News Ltd cannot be held responsible for the content of unedited transcriptions. |
V.I.P. INTERVIEWS 
