Transcript [Project Name] Post-Mortem

From practice to policy: UNIDO’s
approach and lessons learned
Why the cluster approach?
Cluster are conducive environments for enterprise
development
Clusters exist aplenty in the world, some doing very well,
most not competitive enough
Public policy can help under performing clusters improve
their outcomes and dynamics
Clusters can be vehicles for pro-poor growth
Why the cluster approach?
Clusters are conducive environments for enterprise
development
Clusters exist aplenty in the world, some doing very well,
most not competitive enough
Public policy can help under performing clusters improve
their outcomes and dynamics
Clusters can be vehicles for pro-poor growth
Clusters and Poverty: the conceptual challenge
CLUSTERS
 Growth and
competitiveness
 Collective efficiency
and linkages
 Local institutions
 Social capital
 Global buyers
 Local clusters in global
value chains
POVERTY
 Income
 Employment and wages
 Vulnerability
 Risk
 Participation
 Empowerment
 Social protection
 Social provisioning
Pro-poor growth
A pattern of growth based on the development of a competitive private
sector that generates opportunities for the poor
-
Economic: income/employment, material assets, access to
resources but also
-
Human: training and health improvement that allow for the
engagement in production activity
-
Socio-cultural: overcoming discrimination, improving social status to
increase participation in the economy
-
Organizational: representative bodies, voice and rights that allow
advocacy of economic interests
-
Protective: reduce insecurity and vulnerability to shocks that hinder
risk taking
Clusters for pro-poor growth
What poor? How can the poor benefit?
-
Entrepreneurs, workers, unemployed and trainees – gains in
turnover/salary, employment creation/preservation, investment in
productive activities
-
Farmers and inputs suppliers – value chain linkages, stable supply
contracts
-
Consumers – affordable, better quality and increased variety of
goods/services produced in the cluster
-
The local community – via investments in firms’ CSR and as a
spillover effects from investments in education, infrastructure and
basic services (roads, electricity, water) and from increased tax
revenues
Field experience shows…
Pro-poor effects can be a spillover of cluster development:
Chontales, Nicaragua: public-private efforts for investment in the
electricity grid – beneficiaries: cheese producers, schools, poor
communities
However, to maximize pro-poor outcomes, a cluster initiatives needs to:
- Focus on clusters where income/employment potential of the poor
targets are the greatest;
- Give visibility to the poor – participation and organization
- Target assistance to marginalized groups e.g. women, minorities…
- Invest in human capital to increase productivity/employability e.g.
handloom cluster of Chanderi
Example: Chanderi (India)
 Selection: rural, low skill
handloom
 Process: inclusive, participatory, giving voice to marginalized
groups
 Target: Women weavers
 Dimensions of poverty: income, health, empowerment,
representation
 Poverty related outputs/outcomes:


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


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Women’s literacy programme and leadership courses
Access to health facilities and health education
600 weavers organised into 150 SHGs
Average wage rises by 10-15% 2004-06
Improved access to formal sector credit
290 families enrolled in health insurance schemes
2005, total turnover US$ 200,000
Conclusion:
Cluster development can be effective
to produce pro-poor outcomes…
when geared towards this objective
Participating countries
Mexico
Colombia
Ecuador Bolivia
Cluster and network projects - Examples
• Senegal: networks, associations, development of
capabilities of local government (municipalities),
mutual credit guarantee scheme
• India: from pilot projects to homegrown cluster
movement reaching hundreds of clusters with over
100 m USD budget allocation
• Nicaragua: networks, supplier development,
clusters, value chain integration, SME policy,
cluster-to-cluster cooperation
• Ecuador: sectoral technical assistance, networks,
chambers and common service units, municipalities,
vocational schools, participative LE planning
Integrating
the local system
Increasing impact
Clusters
Start up phase
Integrated Networks
Policy and
Diffusion
Country
wide
coverage
BDS and brokers
•Horizontal networks (HN)
Institutions and brokers
Horizontal networks
•Vertical networks (VN)
•Local coordination
Large/medium/small
enterprise integration
Technical skills
Local government
Governance systems
and joint development
vision
20 HN
(150 SMEs approx.)
HN: 44 (480 SMEs approx.) / HN brokers trained: 32
VN: 13 SMEs & 4 LE
Clusters: 5
Policy
makers and
private
sector
leaders
Broader
skill
development
(universities)
•Diffusion: 250 policy makers and
private sector leaders
•Building capacity: 11 clusters,
22 cluster brokers &7 universities
Cluster policy
The UNIDO approach:
1. Run cluster pilot initiatives – to show viability and benefits
2. Upscale
Objective:
• Assist national institutions to develop ownership of the approach as
a policy tool
• Strengthen institutional capacities and skills at all relevant levels
• Establish a knowledge management system (incl. M&E mechanism)
– lessons learned in the field feed back into policy
Cluster policy
includes:
-Govt: train officials, set up a policy framework, link departments,
establish a budget, identify/train implementing agencies, set up a
monitoring and evaluation system
-Investment in skill development: facilitators and cluster governance
institutions (municipalities, private sectors organizations and leaders),
private sector (link with education institutions)
-Connect with and mainstream in other private sector support policies
Services
Technical assistance projects
1.Technical guidance and advice on project formulation,
management, evaluation
2.Capacity building and training activities (training of trainers and
training for final beneficiaries: entrepreneurs, BDS, policy makers,
schools, academia)
3.Policy advice and institutional capacity building for dissemination of
the approach
Methodologies, Manuals, Training Kits
Expert Group Meetings and Joint Learning programs
Global training courses (Turin) and regional ones
Action-oriented research
For more:
www.unido.org/clusters
Thank you!
Giovanna Ceglie
Unit Chief
Cluster and Business Linkages Unit
UNIDO
[email protected]