Transcript Vital Statistics

Presentation to Round Table
Fred Millan
Team Leader
Regional Socio-Economic Development
Programme (RSEDP2)
Wednesday 21st April 2010
RSEDP2
Support to Regional Development Agencies
RSEDP 2 (M€ 4.9) is a Technical Assistance Project
funded by the EU and comprises 4 components:
1
2
3
4
Increase the efficiencies of the RDAs
Promote and Association of RDAs
Municipal Cooperation
Grant Scheme Promotion and Management.
2nd Call circa M€10, June 2010 with 2 lots (large and
small scale projects e.g. Large up to €500,000 and Small
up to €150,000.
nd
2
Call Grant Scheme
The 2nd Call is under consideration, to be confirmed.
Likely that:
 Launched in June 2010
 Grant Fund circa M€10
 Large & small scale projects
(e.g. Large up to €500,000 and Small up to €150,000.)
 All Serbia
 Eligible organisations could include:
 Regional Development Agencies
 Regional SME agencies
 Municipalities (LEDs)
 Chambers of Commerce and Industry (CoCIs)
 Industry Associations and Cluster Associations
 EU 27 Countries (Industry, Business associations, RDAs & CoCIs etc.)
KEY QUESTIONS
1
Capacity Building for
Regional Development?
2
Capacity to do what?
Serbia
 Population of SERBIA
 Working age population (15-64)
 Participative working population
7.3 Million
4.9 Million
60.5% (71%.)
 2.5 Million in employment
 Public Sector jobs 40%, Private 40%, “Informal” 20%
(EU average 20-25% in public sector)
 Unemployment rate
 Long term unemployment
 Youth unemployment
 15+ yrs accessing higher education
17.9% (9.5%)
10.9% (3.1%)
42.5% (18.3%)
14% (40%)
Serbia Competitiveness
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Agriculture sector comprises 1.3M (17% pop) and 12% GDP
Rapidly aging farming population
SMEs generate 35% of GDP and 43% of employment
300,000 SMEs, 95% comprise 10 employees or less
Serbia has a high rate of business start-ups (and failures)
3% of R and D invested by SME/businesses
Export values represent only 47% of imported values
GDP per capita circa €4,650 (EU 27 average circa €25,000)
In Europe, Growth Competitiveness Index (GCI) for Serbia is
45 from 49, ahead of Macedonia, Moldova, Bosnia and
Albania
Dominance of Belgrade
 3rd largest city in South Eastern Europe, after Athens and
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Istanbul
Belgrade population circa 1.7million (23%)
31% of Serbia employed population
30% of SMEs are located in Belgrade
Contributes circa 35% to national GDP
Capital, financial, legal, political centre
Headquarters of the 20+ largest businesses
Only Significant International Airport.
Pressures – Transport, Utilities, Environment etc.
THE REGIONAL ISSUE
 JOB
LOSSES & MIGRATION
Needs:
 NEW JOBS IN THE PRIVATE SECTOR
 JOBS IN HIGH GROWTH COMPANIES
 JOBS IN EXPORT
Regional Development
Regional development is employment creation!
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New jobs taken up by unemployed
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By people moving to new jobs
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Opportunities for school leavers & unemployed
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But who will make the job offers?
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Who will create the new jobs?
Essentially Private Enterprises, much less the Public Sector!
ENTERPRISE IN THE PRIVATE
SECTOR
Private Enterprises will create new jobs
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They are main target groups for regional development
actions (production, services, tourism)
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Necessary to understand what impedes enterprises
from expanding and creating jobs
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Regional development is most effective where there are
organisations who understand the needs of businesses
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Developing initiatives to help businesses overcome
constraints.
RSEDP2 GRANT SCHEME
OBJECTIVES
The main objectives of the RSEDP2 Grant Scheme is to
fund regional development projects addressing:
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Needs of manufacturers in (growth) sectors
Barriers that constrain regional economies;
Cooperation/partnership between the public
and private sectors;
Unemployment and under employment .
Project Concepts
 Area-based Development Partnerships
 Structural Changes at the Regional Level
 Quality, Standards & Better Services
 Qualification & (re) Skilling
 Networking & Internationalisation
 Enhancing economic/social efficiency & effectiveness
 Mobilising Communities
 JOB CREATION !!!
Business Infrastructure
Supply Chains and Clusters
Value Chains
Training and Employment
“Business Infrastructure”
Infrastructure works / equipment relating to
existing business parks and or business centres
where services are provided, e.g.
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Where businesses are impeded because of design or
specification of existing infrastructure – poor access, parking,
reception, seminar facilities, inadequate technology for training
etc.
OR...
 Developing a “Centre of Excellence” within an established
cluster (Automotive, Pharmaceutical, Agro Processing),
including laboratories, testing and calibration, certification
facilities to encourage best practice and innovation.
e.g. Innovation Centre or Centre of Excellence should be
supported by Trade/Industry Associations, Chambers of
commerce or Groups of Municipalities.
“SUPPLY CHAINS/CLUSTERS”
Large companies procure a wide range of supplies – goods
and services - (often) from smaller, local suppliers but ONLY
if local companies can supply at right
- Quality,
- Price,
- On time and
- Volumes (sustainable over time).
If not, particularly FDI companies secure supplies from
approved supply chain outside the country.
e.g. FIAT will have 100’s of suppliers across numerous
sectors from pencils to CAD IT.
But HOW MANY local companies supply this type of
international company?
A Simple Model
Connecting your organisation
to a cluster or hub to access
numerous organisations
through a support centre
Clusters Work
Silicon Valley has moved from
an aerodrome of empty
hangers in 1948 to the most
famous model of cluster
development for advanced
technologies and IT innovation
much of it driven by US
government treasury support
to NAS A and support
technologies .
“Value Chain”
Adding Value to existing raw materials is a
very simple way of increasing the profit
accrued, generating jobs and accessing new or
higher values markets,
e.g. Adding value to fruits and vegetable by pre packaging for
consumer retail markets, e.g.
MAXI retail “sliced” oranges (chill packs) @ 56dr per pack
0.2KG. But whole oranges are 89Dr per kilo in Maxi (much
less in fresh fruit markets.)
Adding Value
Companies such as MAXI are
good at adding value to basic
products, fruits, vegetables ...
MAXI Exclusive appeals to those
individuals and families with busy
lives who can afford and are
prepared to purchase “pre –
packed ready - prepared foods
even as simple as sliced oranges
or tomatoes, despite they are 4
to 10 time the costs of the basic
items in the local fresh markets .
“Adding Value”
= additional
profits & jobs
Chilled pre packs can add 5 to
10 x the original value of
agriculture commodities .
“TRAINING & EMPLOYMENT”
45% young adults under 24 years are unemployed!
In UK and Europe this has been successfully tackled by matching
unemployed people (appropriately trained) to companies seeking and
willing to fill vacancies.
80% of trainees have been retained by their “donor” companies.
The key is to understand the needs of the companies/sectors and train
selected young adults with relevant skills = Parallel activities
Unemployed adults
Donor Companies
Select Trainees
Select willing companies
Basic Class based Training
Induct HRD managers
Customise to individuals
Company Training
Match trainee
Agree contract (1 year basic)
Monitor trainee
Monitor Company
Screen Trainee
Successful Trainee retained .