Transcript ｽﾗｲﾄﾞ ﾀｲﾄﾙなし

Evolution of Government’s Role on
Economic Development
23rd January, 2009
JICA
Masaki Miyaji
1
Japan Today
• Small Islands surrounded by sea
( Land area : 338 Sq Km, less than 1/2 of Zambia, Its 70% is
mountainous)
• Population : 127 Million (X 12 of Zambia)
• GDP : over 4 Trillion US$ ( 2nd largest in the world)
• No mineral resources ( Coal mines were closed 30 years ago)
• 60% of Japan’s Food consumption is based on import
• Japan’s only but the most important resource is “Human
Capital Resources”
• Japanese Economy stands on Manufacturing with
Technologies and highly controlled Skills
Japanese experiences in developing Investment
by the Private Sector
(Large enterprises and MSMEs)
Experiences and Instructions
of FDI （Foreign Direct Investment）
“Mozal Project” in Mozambique
The Importance of
Human Capital Resources Development
4
Japanese experiences in developing
Investments by the private Sector
(Large Enterprises and MSMEs)
5
Impacts of micro, small & medium-sized
manufacturing firms (2004/2005）
of which Small
Enterprises
SMEs
Large
Enterprises
Total
No.
% of total
No.
% of total
No.
% of total
No.
No. of Enterprises
(1,000)
4,326
99.7
3,777
87.1
12
0.3
4,338
No. of Employee
(1,000)
28,086
71.0
9,857
24.9
11,466
29.0
39,553
Value added
(US$ billion)
524
55.3
98
10.3
423
44.7
947
Capital investment
(US$ billion)
39
36.7
-
-
67
63.2
106
Notes :
1. MSMEs are companies with <300 regular employees (<100 in wholesaling &
services, <50 in retailing, eating & drinking places) or with capital stock of
< \300 million (US$ 2.7 mill) (< \100mill in wholesaling, < \50 mill in services,
retailing, eating & drinking places)
2. Small enterprises are companies with <20 regular employees (<5 in
wholesaling, retailing & services)
6
Japan’s Policy fostering Economic Development
and Changing Business Climate
1945～54
Reconstruction Era
1955～72
High Growth Era
1973～84
Stable Growth Era
1985～
Transition Era
7
1945～54
Reconstruction Era
●The War destroyed production & distribution facilities
& systems
●The economy was democratized such as:
① Land Reform
② “Anti-Monopoly Law” established
③“Trade Unions” allowed
④ “Conglomerates” resolved
● “Priority Production Systems” as a core industry
①Iron- Steel manufacturing ② Shipbuilding ③ Coal Mining
●Fostered SME’s (established SME’s Agency)
● Improved diverse infrastructure, such as Laws, Systems &
Institutions and Electricity, Railway, Port, & Road
●Established Financial Institutions to supply ample Funds
8
RECONSTRUCTION DAYS（1945-1954）
～Establishment of Institutional Framework～
Small & Medium Enterprise Agency (1948)
Laws/
Regulations
Small & Medium
Enterprise Credit
Insurance Law
Credit Guarantee
Association Law
Banks
Insurance
Schemes
Financial
Schemes
Small Business
Finance
Corporation
MSMEs
People’s Finance
Corporation
Corporative
Union Law
Default
Credit Guarantee
Association
Medium-sized
Enterprises
Micro, Small
Enterprises
9
1955～72 High Growth Era
 Promoting modernization and upgrading in hardware
 “Pyramid structure” was developed
 Adverse effects of expanded sub-contracting system (i.e.; pressure from
parent company) became problematic.
 Tackled to solve “Dual Economy” : Gaps (productivity, wages,
technology, funding, etc.) between large and small enterprises widened
 Annual GDP growth was over 10% until 1973
 Japan became the World No.2 in terms of GNP in 1968
HIGH GROWTH DAYS（1955-1972）
How to Tackle
“Dual Economy”
～Coping with “Dual Economy”～
~STRONG～
LARGE FIRMS
Productivity ◎ Some Prescriptions
Wages ◎
Modernization of
Technology ◎
Equipments or MSMEs
Funding ◎
Lower Corporate
Tax for MSMEs
Exemption of MSMEs
from Anti- Monopoly Law
Adverse Effects
Sub-contracting
Systems
～WEAK～
MSMEs
Productivity ×
Wages ×
Technology ×
Funding ×
Revitalization
of MSMEs
Nationwide
11
Phase Two: Stable Growth Era ~
1973～84 Stable Growth Era
 Promoted modernization & upgrading in software
 “Core” business structural shifts of enterprise was
inevitable by business climate change due to oil crises
 Subsidies in place to industrial structural shifts,
designated areas
in
 Stronger Yen currency damaged industries and regional
economy
 Energy-saving measures taken by enterprises
(led to international competitiveness)
12
STABLE GROWTH DAYS（1973-1984）
～Paradigm Shift～
Towards
Knowledge
Intensification
Business
Climate Change
Oil Crisis
Oil Crisis
Structural Changes Hard
Human Recourses
Development
Small & Medium
Enterprise
College
Soft
Soft
Hard
・Modernization of Equipments
・Government Financial Institutions
・Tax Regimes
・Legal Institutional Framework
・Information
Dissemination
・Human Capital
・Technology Upgrading
Small & Medium
Information
Centers
13
1985～
Transitional Era
 Strong Yen encouraged enterprises to invest overseas
 Low interest rate policy led to economic boom
 “Bubble economy” burst in 1991: “lost decade”
-Globalization led to enterprise restructuring
-De-regulation led to change in human resource
management & subcontracting systems
 Recovery since 2002 due to export to emerging
markets
Virtuous Trajectory of Industrial Clusters
~Toward Poverty Alleviation~
Infinite Business
Opportunities
JUMP
STEP
“Qualitative
Improvement” Phase
HOP
Limited Job
Creation
“Quantitative
Expansion” Phase
Geographical
Concentration of
Enterprises
Agriculture-based
Society
Increasing Employment
Opportunity
Industrial Clusters
Africa
China
India
Japan
15
Industrial Cluster
Industrial Park
16
Industrial Cluster
Anchor Firm
Industrial Park
17
Industrial Cluster
Anchor Firm
Industrial Park
18
Industrial Cluster
Anchor Firm
Industrial Park
19
Industrial Cluster
Anchor Firm
Industrial Park
20
Industrial Cluster
Anchor Firm
Industrial Park
21
Major Industrial Clusters, led by
the Government
Higashi-Osaka City
Tsubame Sanjo-City,Niigata
Ohta-ku,Tokyo
Suwa-City, Nagano
22
Ohta-ku, Tokyo (Population 667 Thousand)
・Industrial cluster for mechanical metalworking
Bird’s Eye
View.
Less than 5
Employees
occupy almost
60%.
Ota-ku, Tokyo （2001）
Number of
Employees
1-4
Number of
MSMEs
4,145
Kamijima Heat Treatment Industry
（42 Employees）
・Heat treatment which
makes stiffness of the
cutting utensils (brooch,
hob, drill.) .
Share
58.3%
5-9
10-19
20-29
over 30
1,507
787
292
384
21.2%
11.1%
4.1%
5.4%
Total
7,115
100%
Sources ：
Ministry of Public
Management, Home Affairs, Posts
and
Telecommunications
「A Statistical Table for Companies」
Azuma Manufacturing Factory
（2 Employees）
・Slotter (the machine to
process the groove inside
the gear) is processed.
・Precise processing to the
curved surface are possible.
23
23
Higashi-Osaka City (Population 513 Thousand)
・Industrial cluster for machinery plastics
・Philosophy is “ Only One“
・”Niche Top” MSMEs are 61/ 548 in Japan.
”Special Economic Zone for Manufacturing”.
Bird’s Eye view
・ Plastic formation and the
quality control aspect 3
dimensional measurement
equipment of computer
control.
・ Interior part ( for high
accuracy formation
technology of the micro
unit ).
Higashi-Osaka City（2001）
Number of Number of
Employees MSMEs
1-4
4,689
5-9
1,977
10-19
1,070
20-29
380
over 30
453
Total
8,959
Tokai Factory (18 Employees)
Share
54.7%
23.1%
12.5%
4.4%
5.3%
100.0%
Asahi Manufacturing
(121 Employees)
・Part product enterprise (worldwide share
80%), concerning the cylinder head which
is the heart of the VTR from compilation to
casting.
・ Various aluminum materials.
24
Suwa-City, Nagano（ Population 53 Thousand )
・Industrial cluster for precision instrument industry
・De facto “Oriental Switzerland"
・Aiming toward “Manufacturing Kingdom Suwa”
Bird’s Eye View
Suwa-City,Nagano(2001)
Number of
184
MSMEs
Number of
5,375
Employees
Total Shipment
* 1205
Amount
Total Value
* 487
Added
Takashima Industry
( 250 Employees)
Production of the clock part, other than
precise part processing.
* Unit: Hundred Million Yen
25
Tsubame-Sanjo City, Niigata
（ Population 44 Thousand)
・Industrial cluster for the metal house wear
Ezawa Manufacturing （17 Employees）
Stainless steel, aluminum, iron, brass and titanium.
26
Experiences and Instructions of
FDI （Foreign Direct Investment）
“Mozal Project” in Mozambique
27
Mozal S.A.R.L.
Photograph from
Mozambique at a Glance
Mozambique General Information (Data Source: Economist Intelligence Unit Country Profile 2006)
① Land Area
:
799,380 k㎡
② Population
:
19.8 million
③ Capital
:
Maputo
④ Ethnic
:
African 99.66% (Makhuwa, Tsonga, Lomwe, Sena, and others), European 0.06%,
Euro-Africans 0.2%, Indians 0.08%
⑤ Language
:
Portuguese (Official), Makua-Lomwe, Tsonga and Sena-Nyanja
⑥ Religions
:
Catholic 23.8%, Muslim 17.8%, Zionist Christian 17.5%, other 17.8%, none 23.1%
⑧ Others
:
At independence in 1975, Mozambique was one of the world’s poorest countries. A
Brutal civil war from 1977-92 exacerbated the situation.
Photograph taken before 2005
After (2007)
Before (1996)
Namibia
Virgin Bush
GDP: US$2.897 billion
GDPPC: US$180
Cutting Edge Facility
GDP: US$7.839 billion
GDPPC: US$382
29
Data Source: IMF World Economic Outlook
IMF staff estimation for 2007
Mozal General Overview
Mozal S.A.R.L
Mozal Phase 1
Mozal Phase 2
①
Business
Aluminium Ingot Smelter
②
Location
Maputo/Mozambique
③
Construction start
May 1998
June 2001
④
Operation start
June 2000
April 2003
⑤
Production Capacity
280,000 tons
280,000 tons
⑥
Shareholders & Equity
Mitsubishi Corp
25 ％
BHP Billiton
47 ％
IDC
24％
Mozambican Govt
4％
⑦
Total Cost
⑧
Employee
⑨
Reduction Technology
⑩
Electricity Supply
⑪
Alumina Supply
⑫
Aluminium Ingot Offtake
US$1,200 Mil
US$710 Mil
1,135 （as of Aug 2006）
AP35（Pechiney Technology）---Upgraded in 2006 from AP30
Supplied from South Africa
Supplied from Australia
Pro-rata basis
30
MOZAL Project Scheme
Mitsubishi Corp
25%
BHP-Billiton
47%
Mitsubishi Corp
Mozal Project
IDC
Offtake
24%
BHP-Billiton
4%
Mozambican Govt
Dividend
Project Finance
DEG
IFC
CDC
COFACE
PROPARCO
JBIC
EIB
DBSA
CGIC
EDC
31
Key Drivers for Investment
1. Competitiveness of production cost
2. Governments’ strong commitment and
supports (both Mozambique & SA GVMT)
3. Participation of Reputable Policy lending
institution (IFC, JBIC, IDC, DBSA, DEG, CDC,
COFACE, EIB, PROPARCO, CGIC, EDC)
4. Reliable Partner (BHP-Billiton & IDC)
32
Key Drivers for Investment
1. Competitiveness of production cost
2. Governments’ strong commitment and
A)The production cost is the cheapest in the
supports
(both
Mozambique
&
SA
GVMT)
world.
3. Participation of Reputable Policy lending
B)This project is strong against depression
institution
(IFC,
JBIC,
IDC,
DBSA,
DEG,
CDC,
through special purchasing contract of 2
COFACE,
PROPARCO,
EDC) and
majorEIB,cost
factors, CGIC,
electricity
alumina.
4. Reliable
Partner (BHP-Billiton & IDC)
33
Key Drivers for Investment
1. Competitiveness of production cost
2. Governments’ strong commitment and
supports (both Mozambique & SA GVMT)
3. Participation of Reputable Policy lending
institution (IFC, JBIC, IDC, DBSA, DEG, CDC,
COFACE, EIB, PROPARCO, CGIC, EDC)
4. Reliable Partner (BHP-Billiton & IDC)
34
Key Drivers for Investment
IFC
DEG
COFACE
JBIC
DBSA
1. Competitiveness of production cost
CDC
PROPARCO
EIB
CGIC and
EDC
2. Governments’
strong commitment
supports (both Mozambique & SA GVMT)
3. Participation of Reputable Policy lending
institution (IFC, JBIC, IDC, DBSA, DEG, CDC,
COFACE, EIB, PROPARCO, CGIC, EDC)
4. Reliable Partner (BHP-Billiton & IDC)
35
Key Drivers for Investment
1. Competitiveness of production cost
2. Governments’ strong commitment and
supports (both Mozambique & SA GVMT)
3. Participation of Reputable Policy lending
institution (IFC, JBIC, IDC, DBSA, DEG, CDC,
COFACE, EIB, PROPARCO, CGIC, EDC)
4. Reliable Partner (BHP-Billiton & IDC)
36
Why Mozambique?
Q: No bauxite - Alumina, in Mozambique.
Electricity coming from SA.
Why Mozambique?
A: 1)Potential charm point: Cahora Bassa dam
– future Hydroelectric-power generation
Full production would fully cover the electrical
demand in whole Africa of today.
2)Port capability in Maputo
37
MOZAL CSR Activity
Mozal Community Development Trust (MCDT)
1. Mozal Community Development Trust (MCDT), as a None Profitable Organization,
started its operation in January 2001 and its main aim is to share the success of Mozal
with local community via various programs.
2. It has a very transparent activity by disclosing budget and audit each year and also
report to Mozal the progress of each activity on monthly basis.
3. Mozal donates approximately US$5Million each year.
Mozal S.A.R.L
Financial and KnowHow support
IFC, Government, NGO
Local Community,
Private Company
Mozal Board
In Mozal Board, amount and
menu of activity of MCDT is
checked and discussed.
MCDT has close
communication with Mozal every
month.
MCDT
38
MCDT Activity
1. Policy
“Together we make a difference” (Mozal CSR policy aims for the sustainable
development in harmony with Local Community.)
2. Principal of Activity
・Align development initiatives with those of National, Provincial and Local
Government to fight poverty within the framework of the action plan to Reduce
Absolute Poverty (PARPA)
・Act as catalyst by creating pilot projects in other areas
・Establish partnerships with various organization to achieve sustainable results
Involve all relevant stakeholders, including government, NGOs, community
structures and the private sector.
3. Main Development
・Small Business Development
・Education & Training
・Health & Environment
・Sports & Culture
・Community Infrastructures
39
MCDT
Support to the Chicken Farm
Teacher’s training and capacity building
Agricultural Development Program
Production of the Carpets
Donation of the computers to the University Support to the Primary Schools
Donation of the equipment to the Hospital
Total Control of the Epidemic
Support to the National Park 40
MCDT
Community Sports Tournament
Construction of the Clinic
Sponsoring of the art exhibition
Uniforms distribution to the teams
Classroom Building
School Project
41
The Importance of
Human
Capital Resources
Development
Development
Innovation
Marketing
Branding
Strategy
Stable
Operational
Financing
Collaborating
Go for a
with Research
Challenge the Product
“Niche”
“Status Quo” Differentiation Institutes
Markets
Human Capitals
Ambition
Curiosity
Passion
Not Necessarily
Highly-Academic
Aspiration
Willingness
Kaizen
Craftsmanship
Backbone of the Economic Requirement
43
1.Compulsory Educational System （Since 1947）
-A Key “Driver” for Significant Literacy ImprovementDrastic Increase in High School
Attendance
Almost 100% Enrollment Ratio
(%)
High School Attendance Ratio(%)
120
Within 50 years
100
99.6
99.4
Almost double
80
Basic Literacy
Improvement
99.2
99
60
40
98.8
98.6
Primary Enrollment Ratio
Secondary Enrollment Ratio
Overrall Average
Male
1998
1996
1994
1992
1990
1988
1986
1984
1982
1980
1978
1976
1974
1972
1970
1968
1966
1964
1962
1960
1958
1956
1954
0
1952
1999
1990
1993
1996
1984
1987
1978
1981
1972
1975
1966
1969
1960
1963
1951
1954
1957
1948
20
1950
100.2
100
99.8
Female
University/College Attendance Ratio(%)
60
Students Pursuing Higher Degree
Sky-rocketed
50
40
30
Overrall Average
Female
Male
20
10
”Basic Report on Schools”2004
0
19
54
19
57
19
60
19
63
19
66
19
69
19
72
19
75
19
78
19
81
19
84
19
87
19
90
19
93
19
96
19
99
20
02
Source： Ministry of Education, Culture, Sports,
Science and Technology
44
Domestic Resource Mobilization Efforts for AFRICA
Efforts
～”Sequencing” IS THE KEY WORD～
・Appropriate Tax regimes
Ⅳ. INDUSTROAL AGGLOMERATION
Efforts
・Proper Legal/Institionary
Framework
・Enactment of basic SME laws
－Export Credit －Insurance
・Primary Industry Development
－Dispatch Exports
Ⅲ. REGIONAL INDUSTRIES
・Technology Transfer From Abroad
・EPZs(Export Processing Zones)
－TA for Farmers
－Initiation of fishers Program
・Basic Infrastructure Development
Efforts
Ⅱ.PRODUCT SERVICES －Road, Bridge, Ports etc.
・New Product Development
Efforts
－Dispatch Export
・「One Taw ban, One Products」
Initiative
Ⅰ. NEED × SEEDS
・Mapping Exercise
－Identification of Market Needs
・Rural Credit Scheme for SMES
(ex) African Food Show Case
・Credit rationing by the Governments
・Rural Credit Scheme for
Individuals
・Collaboration via Cooperative in
Local Communities
(ex）Gramean Bank Model
45