In 2002, the new governor of the state of Tabasco (in Southeast Mexico) hired the Economic Transformations Group to revitalize the state’s economy using an action-oriented, cluster-based approach.  The clustering process was launched in early 2002 with the formation of eight clusters, and the involvement of more than 600 business leaders throughout Tabasco.  At the end of the first year, more than 60 action initiatives were in implementation.  The project, Tabasco in Action, created a specific fund to support early stage initiative development (e.g., feasibility studies and benchmarking trips).  The fund required co-participation by the initiative leaders and private sector in all initiative financing.  The Fund has been very successful in converting initiatives from good ideas on paper to executable business plans and joint projects, to early stage implementation and financing.  By 2004, more than 42 project have received funding, totally $1.1 million.  The estimated investment potential is more than $80 million and generating 4,170 jobs.  The results of the leadership and clustering process of Tabasco in Action have resulted in the formation of dozens of new companies, new jobs in aquaculture, light industry, agricultural processing, a reorientation of cacao production to organic markets, and the beginning of a whole new mindset shift from ”the government has to solve our problems” to ”we can do it!”.