Transparency, good governance and digitalization seen as key factors for a positive business and investment climate in the OSCE region

On the margins of the 31st OSCE Economic and Environmental Forum, the Office of the Co-ordinator of OSCE Economic and Environmental Activities (OCEEA) hosted a side event titled "Enhancing the Business and Investment Climate through Good Governance and Digitalization." The event brought together policymakers, experts, and private sector leaders to discuss pressing challenges to maintaining a transparent, enabling business environment and how digital tools can help alleviate these issues.

Panellists highlighted the dual nature of digitalization as simultaneously a tool for enhancing transparency and accountability while also presenting obstacles such as corruption, regulatory inconsistencies, and the digital divide in many regions.

"The link between good governance and economic prosperity is clear,” said Ambassador Bakyt Dzhusupov, the OSCE Co-ordinator of Economic and Environmental Activities in his opening remarks. “When businesses can operate in an environment of transparency and fairness, they flourish, create jobs and lift communities out of poverty. Strong governance also fosters greater social cohesion and stability, making countries less vulnerable to internal conflict and external threats," he added.

Reflecting on the OSCE Best Practice Guide on good governance and digitalization, published by OCEEA in 2022, panellists noted how open government initiatives have significantly improved transparency, reduced bureaucratic hurdles, and enabled real-time access to crucial information. These measures have contributed to a more positive investment climate across the OSCE region by building trust between governments and the private sector.

A recurring theme throughout the event was the importance of collaboration between policymakers and the private sector. Private sector representatives stressed that successful adoption of digital tools requires ongoing dialogue and partnerships to ensure these innovations provide practical solutions that meet business needs. Public-private partnerships were cited as key drivers of transparency, innovation, and effective governance.

The Ukrainian Network of Integrity and Compliance was highlighted as a successful collective action initiative in promoting a corruption-free business environment. Panellists underscored the key factors behind its success, including clear peer-to-peer compliance commitments, regular monitoring, and active engagement from multiple businesses.

The event concluded with a call for continued co-operation between public and private actors, with an emphasis on the need for OSCE participating States to step up their efforts in good governance and the development of digital infrastructure. These efforts will help improve transparency, reduce corruption, and create a business climate that fosters investment and long-term prosperity.