Transcript Competitiveness

Why “Competitiveness”
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Previous projects focused on:
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Developing BSOs & Agricultural Assoc.
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Policy & Legislation
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Privatization
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Developing Market Economy
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Improving Business Environment
Competitiveness is final stage of development
Attractive Features of
Competitiveness Project
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Well-defined, specific, tangible
Private sector focus
Influence policy through Private Sector
Associations
Measurable Results (Sales)
Can select sectors
Support US Industries
Cluster Selection Criteria
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Potential for growth & Results
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Economic Growth vs. poverty alleviation
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Strategic or competitive advantage
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Potential for influencing sector
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Receptivity & participation of local partners
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Other donors, national government
What look for in Cluster?
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Willingness to commit to strategy
Willing to invest own resources
Willingness to take risks
Willingness to research & development
Willingness to coordinate with competitors
Private Sector Lead Growth
 Availability of private sector capital inflows
 Potential of international investors
Measuring results
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Increased Sales/Exports!!
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Improved policies
Increased production
Improved coordination & interaction
Improved productivity
Increased investment, employees
Quantifying impact from USAID
Cluster Development
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Insufficient time to create impact
Policy reform is long-term
Pressure for results
Difficult to “create” linkages (profit driven)
Forward linkages vs. backward linkages
Some sectors lend to linkages more than
others (i.e tourism, agriculture)
Access “other donor” funding
Profitable Clusters
are product of decades of evolution
Competitive Clusters Need:
 human resources,
 physical infrastructure,
 capital resources,
 science R&D,
 information technology,
 natural resources
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Can USAID impact all these factors?
Cluster Members
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Educational institutions
Research institutions
Business organizations
Banks, financial
institutions
Government agencies
(regulatory &
infrastructure)
Suppliers
Competitors
AGRICULTURE
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Seed suppliers/producers
Chemical inputs
Farm machinery
Farmers
Associations
Irrigation Associations
Producers (meat, poultry)
Processors
Research institutions
Ag. University
Extension Service
Business organizations
Banks, financial institutions
Government agencies (regulatory &
infrastructure)
Suppliers
Competitors
Intermediaries
Brokers
Retailers
Exporters
Technical Resources
at all Levels of Value Chain?
Example of Forest Product Sector
Backward linkages
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Quality
Tree Species
Fertilizers, pest problems
Environmental Issues
Deforestation
Illegal harvesting
Equipment Mfg.
Educational Inst.
Extension Service
Banks, Investors
Forward
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Processing methods
Quality Control
Government controls
International pressures
Types of Products
Domestic Marketing
International Marketing
Distribution
Market analysis
Chicken or the Egg?
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Does USAID pick clusters that already have
certain degree of momentum and prosperity
on own?
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Is USAID increasing competitiveness or
along for the ride?
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If cluster development methodology
worked….can apply to any sector?