Indonesia Bilingual Agreement - PowerPoint

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					   Indonesian-German Technical Cooperation

   A Participatory Planning & Action Tool for
      Regional Economic Development:
      First experiences from Indonesia

WiRAM Sector Network - Bangkok, 10. December 2003
        Purpose of this meeting

                             Present a
   Illustrate the
                         brief overview of
  PACA concept
                           conducted &
       in the
  context of RED
                          PACA activities

  Make the PACA
    experiences         Identify cooperation
    transparent            opportunities
      & obtain             regarding the
recommendations           PACA exercises
& ideas for possible      in SN-countries
Location of
….. on the way to
     become a
   learning and

            RED’s Goal:
Increasing Regional Competitiveness
                           of location
                           of region

                           of nation
            Key Determinants of
 resource base         political factors          infrastructure

Endowment with         Decentralization      Telecommunication,
natural resources     Good Governance             roads, etc.

 Economic         Business       Private Sector         Labor
  Policy         Environment        Services            Force

                      economic factors
              What is                         ?
(Participator Appraisal of Competitive Advantage)
is an action-oriented and participatory planning tool suitable
for Cluster Development and LED Initiatives
• bringing together all major economic actors of a locality
• stimulating motivation for joint
  LED activities
• focusing on genuine economic
• emphasizing a demand-driven
       Examples of previous PACA Exercises

Level of                   Jaraguá do Sul,
economic                   Brazil                  Blumenau,
develop-                                           Brazil
ment                   São Bento do Sul,
                       Brazil                   Lampang,
                                Brusque,        Thailand
             Mafra,     Hazyview,
                                      Chiang Rai, Thailand
             Brazil     South Africa
                     October 2003:
                       3 Districts    Queenstown,
                        Sri Lanka
                      in Indonesia    South Africa
           Novi Kneževac,
           Serbia             Kabokweni,
                              South Africa

                                                 Size of local economy
          Specific features of PACA

• Very limited fact-finding effort
• Strict action-orientation
• Limited involvement of
  external consultants
• Strong involvement of private sector, emphasis on
  business-driven LED
• Looking at opportunities for quick, visible results, not
  at big issues and bottlenecks
• The main assets are motivated stakeholders
      What has happened so far ?
• PACA Facilitator Training in Solo (25-29 Aug. 2003)
    23 participants from 9 districts / 4 provinces
    First time in Indonesia
    Training of Tools/Methods
    Practical Training of Interviews/ Mini-workshop
    Practical Application in a Ceramic Cluster in Klaten

• Realization of 3 PACA Exercises in Oct. 2003 (parallel!)
    Boyolali (Central Java)
    Bima (West Nusa Tenggara)
    Dompu (West Nusa Tenggara)
    Who is involved in a PACA ?

• A “Champion” who suggests and coordinates the PACA
   – provincial or local government agency, Chamber,
     NGO, donor agency (e.g. GTZ)

• The PACA Team

• Other Local Organizations who take an active role in
  – financing
  – making staff available for the PACA Team
• Various Local Stakeholders who participate in the kick-
  off workshop, interviews, mini-workshops and the
         What is the PACA Team ?

• 1 - 2 External Consultants who are familiar with the PACA
  method and LED
   – to introduce a fresh view at the local reality
   – to transfer their know-how to local members of the team
• 3 - 5 Local Facilitators
   – for instance: professionals from the local business
      promotion agency, the local Chamber, the local
   – not too young, too junior
   – with experience in economic promotion and in dealing
      with private business
            Sequence of activities in a PACA

 Preparation: Kick-                                            tation
                           Interviews          Workshop:                 Imple-
  * Advance    off                                            of Diag-
                                               Elaboration               mentation
     info     work-                                           nostic +
                                              of Diagnostic
* Hypotheses shop                                               Pro-
                         Mini-workshops        + Proposals

                      Fieldwork (1-2 weeks)

                        PACA-Exercise (2-3 weeks)

     Fieldwork Activities:                   Available Tools:

1) Qualitative Interviews               •   Interview Guideline
   • selected entrepreneurs             •   Econ/Political Mapping
     economic stakeholders
     supporting institutions            •   Life-line
   • in-house “conversation”            •   Metaplan Method
     or interviews during field trips

2) Mini-Workshops                       •   Porter’s Diamond
   • prospective clusters &             •   Porter’s 5 Forces
     supporting institutions
   • In/near the cluster
                                        •   Transaction Matrix
     environment                        •   Mind-Mapping
                                        •   Metaplan Method
         PACA Tools - Porter’s Diamond

                          Competitive advantage
                           and disadvantage of
                                 the sector
                            What are the strong
Supporting institutions      and weak points?
                                                    Demand conditions:
(factor conditions):                              * Sophisticated demand
* training, technology,                           * Unusual demand
   finance, public util.,                         * Pioneering / innovative
   infrastructure                                   demand
* location, land                                  Strong + weak points
Strong + weak points      Supporting industries
                            (suppliers, subcon-
                              tractors, service
                           Strong + weak points
      PACA Tools - Porter’s Five Forces
                      New entrants:
                       How likely?
                     What advantage?

Bargaining power                             Bargaining power of
                   Who are competitors?
  of suppliers                                   customers
                   Competitive advantage?

                   Threat of substitutive
                   products (radical tech-
                    nical change, change
                   in consumer behavior)
How was the process of the PACA
         exercise (1)?

The clusters were selected by the local/regional
partners in a scoring process.

Selected clusters in Boyolali:

 Furniture
 Milk
 Tourism
 Metal (copper) production
How was the process of the PACA
         exercise (2)?

Then the preparation of the PACA exercise took place
   Which persons should be involved?
   How can the logistic be arranged?
   Information about the schedule
   Preparing information and marketing material
Assistance of national and international advisors and
the PACA team
Realization of the fieldwork, analyzing and presenting
By Participants of the first PACA Facilitator/Multiplier Training
• Training Material
   Very satisfied about the content and quality of training material

• Organization
    Time-consuming bilingual training process (English / Indonesia),
   thus problems with the time-management
   Very satisfied with organization, training techniques, and handouts
   Satisfied with general time-frame and training steps

• In General

   Majority of participants saw its expectations met by the training
   Strong interest to implement PACA in the respective areas
        Aspects to consider (1)
PACA requires intensive resources in preparation,
realization and to maintain the follow up assistance
Local/regional relevant partners should be early
involved in the process, esp. those which can play in
the future a driving and supportive role
External expertise is still necessary
PACA is cost intensive and therefore it is the question if
local partners can replicate it in the same quality with
their own funds – but: trained partners can use their
know how for further replication
Be aware to assist the follow up process, otherwise You
loose the PACA spirit
Continuation needs budget!
        Aspects to consider (2)
PACA could be scheduled shortly before budget
planning processes, in order to raise the chance of
receiving finance
Get agreement and support from the local political
decision makers
Integrate relevant key persons in the PACA team
Provide technical expertise on SME promotion
Develop PACA manual to standardize the process
            Lessons learnt (1)

PACA is very time consuming and needs an intensive
Before the realization marketing for the process in the
location is essential
It is very positive to have all the material in the local
language (flyer, checklists, guidebook: how to realize a
PACA-exercise, book of concepts, handouts etc.)
PACA is a powerful tool to have a relevant impact in a
short time in a region
Not more than 2 clusters shall be analyzed at one time
          Lessons learnt (2)

Marketing of the experiences is very important
– other institutions have a high demand
PACA is just a start for a longer development
process. It is not a mystic tool – the main
resource of the process is the spirit and the
motivation of the people!

In 2004 in other districts a PACA exercise
shall be realized – the interest is already
The PACA methodology seems to be
suitable to analyze a district as a whole
and to intensify communicating processes
(Indonesian adaptation)
…. and now –

   the Indonesian PACA film:
Thank you very much

For your kind attention !

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