Ethiopia Industrial Parks & B2B Linkages (2016-2017)
ETG, with Precise Consult International, designed and is implementing a B2B linkages matching grants program to support Ethiopian enterprises to increase sales to foreign manufacturing firms in targeted industrial parks. This project is a component of the $250 million Competitiveness and Job Creation Project loan by the World Bank to the Government of Ethiopia. In one of the first B2B linkage projects in Africa, ETG developed a “buyer-led” approach to support local supplier companies to meet sales opportunity targets by developing transaction-specific strategies to address binding constraints and improve production competencies to meet rigorous local procurement standards of foreign buyer companies. Based upon our experience in developing and implementing buyer-supplier linkage programs worldwide, ETG focused on both large buyers (mostly in apparel and footwear) and local suppliers, starting with buyer-specific needs and establishing key buyer firms as clients, and then identifying potential local supplier firms willing to co-invest in upgrading their capacities. The project targeted 15 companies during the first year, with an average company upgrading cost of $400,000 per company and expected increase in sales to buyer firms exceeding $2 million per company, and leading to the generation of 225 jobs overall. This project served as a prototype for the development of B2B linkage and enterprise competitiveness programs in the many industrial parks being launched throughout Ethiopia. Funding from the Government of Ethiopia and the World Bank. 2016-17.
Upper Egypt Competitiveness Project (2017)
ETG, in collaboration with DMI and CGA, designed a competitiveness component of a $500 million regional development program by the World Bank and Government of Egypt in two governorates in Upper Egypt. ETG was responsible for developing the cluster and enterprise competitiveness and industrial zones components of the project, and used a “buyer-led” approach, building upon experience in other projects. Cluster Competitiveness Initiatives (CCIs)–a combination of sector-specific and firm-specific initiatives—were designed for the two governorates to support investments and coordination measures to catalyze private investment in existing and emerging industries. The CCIs were designed to address the binding constraints to consummating sales and expanding jobs by clusters and their individual firms with support of a cluster consulting firm that will work jointly with the private sector to design and implement cluster-wide measures and individual firm actions to increase sales and jobs. To complement the cluster competitiveness initiatives, specific firm-level assistance programs were designed to facilitate the provision of buyer-led business development services to firms with high potential to generate sales and jobs. The program was designed to be implemented over four years, with a focus on development of ten clustering initiatives with the aim of generating 2,000 new jobs. Funding from the World Bank, 2017.
Suriname Enterprise Competitiveness and Innovation (2016-2017)
ETG was hired by the Government of Suriname and Inter-American Development Bank to support the implementation of the Pilot Program—Innovation for Firms in Suriname (IFS)—to support innovation and development of local firms in Suriname by strengthening their integration into value chains and clusters and their linkages with firms and buyers and among themselves. The program is oriented to improve local firms’ productivity, competitiveness and innovation, and ETG developed a “buyer-led” approach. ETG worked with the IFS team to develop practical operating procedures for the IFS, identify and support best candidate local firm and operational clusters to supported by the program, and assist selected firms (in clusters) to develop specific innovations to increase sales and exports, and have positive impact on other SMEs in the value chain. The focus is on supporting firms, which can demonstrate “quick wins”, and lead the way in establishing early success of the program. ETG provided “hands on training” to the IFS task manager, CUS staff, and relevant public and private stakeholders. ETG supported ten companies to formulate their enterprise development plans to achieve increased sales and exports and will have positive economic impact on other firms in the value chain. This focus on lead firms is to achieve “quick win” results of the IFS program, within the already identified value chains with sales and export potential (e.g., value added agribusiness, mining, ICT, forest products, non-timber forest products). Funding from the Government of Suriname and the Inter-American Development Bank, 2016-2017.
Chile-Regional Innovation and Entrepreneurship Eco-System for Arica (2016-2017)
Kenya Industrialization Strategy and the Leather Value Chain (2015-2016)
ETG was hired by the World Bank and the Government of Kenya to develop a strategy for how Kenya’s leather sector can contribute to national economic growth through expanding exports of both semi-processed and finished leather goods. The analysis and strategy involved an assessment of Kenya’s raw material base (especially the quality of hides and skins), how to boost the tanning subsector, and increase the production of finished leather and leather products, and marketing. Our analysis addressed key strategic questions including: what is the status of development of the industry, what are the most critical competitiveness challenges and opportunities, and what are the most are promising leather products that Kenya should focus on moving forward, and how to support increased value addition and exports by upgrading production processes, technology, marketing and branding of leather products. The value chain and strategic positioning analyses revealed that Kenya must systematically move from export of low value added “wet blue” tanned leather to finished leather and higher value added and niche market products. ETG worked with local stakeholders to develop a strategy and action plan, and supported the collaborative development of ten major action initiatives. The action plan was presented to the Minister of Industrialization, who subsequently supported the development of key action initiatives including the establishment a leather industry park, a value-added leather product development center, and a shared manufacturing center in the heart of Nairobi’s Karikor informal sector leather cluster. The adoption of the action plan promised to triple leather sector employment within ten years. Funding from the World Bank 2015.
Vietnam Special Economic Zone – Thanh Hoa Regional Industrial Competitiveness Project (2015-2016)
ETG supported the development of Special Economic Zone (SEZ) and SME Development in Thanh Hoa Province. The project involved the overall aims of positioning local SMEs to enhance their capabilities and develop their linkages to large anchor investments by developing in an organizational design for a business development facility and programs, which improve SME linkages and capacities. This facility was designed to provide targeted technical assistance to enhance SME capability to benefit from business opportunities around the $14 billion investments in the zones in Thanh Hoa province at the Nigh Son Eeconomic Zone. The aim of the Business Development Facility is to increase participation of local SMEs in regional value chains/clusters, and increase capacity, competencies, and growth of regional SMEs for long-term regional economic resilience, prosperity, and quality job creation. Funding from the World Bank, 2014.
Guyana Agricultural Diversification Project (2014-2015)
ETG fielded a world-class team of global agribusiness and cluster experts to support private sector entrepreneurship in agribusiness and break-though training in local technical and administrative capacity development to foster initiatives enhancing entrepreneurship and exports in non-traditional agribusiness clusters. Funding for the project by the InterAmerican Development Bank, 2013.
Nepal Tourism Cluster Development: Lumbini & Manaslu/Gorkha (2013)
Conducted a competitiveness assessment and action plan for two important tourism clusters in Nepal: Lumbini (the birthplace of the Buddha) and Manaslu/Gorkha (an up-and-coming heritage and trekking destination). The strategies aimed to attract higher yield tourists and increase tourism investments for growing tourism revenues and employment and fostering linkages to other related industries that can further enhance the tourism product, all while maintaining alignment with the values and sanctity of the sacred sites associated with the birth and life of the Lord Buddha The project was financed by The World Bank, 2013.
Local Economic Development and Cultural Heritage Tourism Development in Nepal (2012)
ETG developed a tourism strategy and action plan as part of a World Bank team for the urban regeneration and economic competitiveness of the Kathmandu Valley. Conducted an assessment of the tourism cluster/value chain and develop a strategy and action plan, involving cultural heritage, soft adventure, wellbeing/health, rural village, and agri-tourism. Key recommendations involving the cultural heritage conservation and responsible tourism development of the seven World Heritage sites within Kathmandu. World Bank, 2012.
Suriname-in-Action – Tourism & Agriculture Clusters Development (2011-12)
Business Forum and the Ministry of Trade and Industry to conduct a competitiveness assessment of the tourism and agricultural sectors in Suriname and launch a private sector-led clustering process for the tourism and agricultural clusters. More than 200 private and public sector leaders were involved in developing 24 action initiatives, eight of which received $60,000 in funding for early stage implementation. Suriname Business Forum, Government of Suriname, with funding by the InterAmerican Development Bank, 2011-2012.
Agribusiness incubators—assessment of best practices and development of incubator training program (2010-2011)
ETG, in association with Agrifood Consulting International, co-led a team of world experts in agribusiness, clustering, and incubators, to assess best-practices internationally in agribusiness incubation and developed a training program for Agribusiness incubation emphasizing whole value chain development and sustainability. The project team identified the twelve best agribusiness incubators in the developing world—ranging from the Fundacion Chile to TechnoServe-Mozambique to Villgro in India—and based on first-hand case studies of the approaches, histories, and lessons learned, prepared an assessment of the state-of-the-art in agribusiness incubation. ETG/ACI also prepared an extensive training program for agribusiness incubator managers and developers, and delivered the training at a world gathering of incubator managers in Helsinki, Finland in 2011. The assessment report and training materials are available at www.infodev.org/en/publication.1095.html. Project sponsored by infoDev/World Bank, 2010-2011.
Regional Economic Development Strategy for Clusters in the State of Minas Gerias, Brazil
ETG co-led a large multidisciplinary team of industry and cluster experts to develop comprehensive strategy and action plans for sustainable innovation in five clusters (fruit, biotech, handbags and shoes, furniture, and metal foundry/casting) in the state of Minas Gerias. Co-financed by the InterAmerican Development Bank. 2010-2011.
Local Economic Development Strategy for Sao Luis, Brazil (2010-2011)
ETG economic experts working with ECG/Maquina led a team of economists to develop a long range, cluster-based local sustainable economic development strategy for the municipality of Sao Luis in the state of Maranhao, in Northeast Brazil. The project, funded by the World Bank, engaged 150 government and business leaders to develop a comprehensive strategy to accelerate growth of the city’s economy, including Sao Luis’s world heritage site for cultural tourism.
Macedonia: NATIONAL STRATEGY AND ACTION PLAN FOR CRAFTS INDUSTRY (2010-2011)
ETG in collaboration with INOA, were hired by the Government of Macedonia and the World Bank to develop a collaborative strategy and action plan to ensure a stronger development and protection of the interests of crafts industry, which is an important part of Macedonia’s economic and cultural heritage as well as an integral element of the entire tourist offer and promotion of Macedonia. The ETG/INOA team implemented the assessment of opportunities for crafts development. The team prepared a study of International Best Practices in Crafts Development and facilitated the dialogue with craft workers, business leaders, relevant government institutions and non-governmental organizations to develop a Strategy and Action Plan which aligns otherwise diminishing craft business products/services with most promising sources of tourism income.
ECUADOR: Regional Economic Development in Loja (2009 -2010)
The Government of Ecuador and the IDB hired ETG to enhance the economic competitiveness of the southern region of Ecuador, the provinces of Loja, Zamora, and Oro and develop four clusters in the southern region: tourism, coffee, software and creative industries, and eco-services and biodiversity. ETG worked closely with the Provincial Government of Loja to create cluster groups and their business, government and academic leaders to develop these cluster strategy and action plans. In this project “Loja in Action”, ETG adapted its “fast-track” clustering approach and created lasting results within 6 months, launching four new clusters and supporting the development of more than 42 business plans and action initiatives, with co-financing of initiatives by the private sector, regional governments, national government agencies, and the support of the Inter-American Development Bank.
Chile: Regional Development and Clustering in the 8 Regions of Southern Chile (2008-2010)
In a contract for Chile’s lead economic development agency, CORFO, ETG staff worked with Dalberg Global Development Advisors to implement Chile’s new strategy to support economic development at the regional level. The team implemented ETG’s “fast-track” clustering approach to demonstrate to Chile’s regional development agency staff how to launch clusters and support local business entrepreneurs to develop and implement action initiatives. During the first eight months of 2008, nine new clusters were launched and more than 250 action initiatives were developed, with co-financing of initiatives by the private sector, regional governments, national government agencies, and the support of the Inter-American Development Bank. By 2010, a total of 25 clusters were underway and engaged in the implementation of more than 150 action initiatives.
Argentina: Clusters of Mendoza (2006-2009)
ETG supported the development of nine clusters in the Province of Mendoza, Argentina with funding support from the Inter-American Development Bank. ETG led a consortium of four companies in launching Argentina’s first cluster-based economic development program. The project team undertook cluster mapping and analysis, and process design and implementation to accelerate development of nine industrial clusters, including two tourism clusters (adventure and rural tourism), four agricultural clusters, and three industry and services clusters.
Guyana: National Clustering Policy and Economic Summit (2005-2006)
The Government of Guyana and the Inter-American Development Bank hired ETG to develop and initiate the implementation of a National Clustering Policy and Public-Private Dialogue. The project team analyzed and mapped Guyana’s economic clusters and designed a new cluster-based economic development strategy and public-private collaborative approach. The strategy development process involved working with 300 government and private sector leaders of Guyana. The team developed detailed model for identifying, mapping, and selecting clusters for inclusion in Guyana’s national competitiveness strategy. ETG helped to “kick-start” clustering activities in aquaculture and call centers. The Aquaculture cluster established the Guyana Aquaculture Association (www.aquaculture.org.gy). ETG also supported Guyana in identifying policy recommendations and associated investments that helped to facilitate dialogue and cooperation between the public and private sectors to improve competitiveness for Guyana. ETG designed and facilitated a major Economic Summit that brought together more than 400 leaders to take action for Guyana’s development.
Mexico: Chihuahua Nuevo Milenio (2004-2005)
Twelve years after supporting the State of Chihuahua to launch Mexico’s first economic clustering project in 1992, ETG was called back in 2004 to support the new Governor’s initiative Chihuahua Nuevo Milenio Program to relaunch a statewide competitiveness strategy project for the eight regions in the state. ETG staff worked with regional leadership groups ranging from the state’s two largest metropolitan areas (Ciudad Juarez and Chihuahua City), to its 6 mid- and small-sized cities to rural development areas. ETG provided training, support to more than 300 regional leaders to define next steps in their regional development projects. ETG is supporting leadership groups to launch regional cluster initiatives and begin early stage implementation in each region.
Mexico: Tabasco in Action (2002-2004)
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!”.
Panamá: Compite Panamá (2002-2003)
In March of 2002, the Government of Panama in collaboration with the private sector and with the financial and technical support of the InterAmerican Development Bank, launched a cluster-based economic strategy program called Compite Panamá (Panama Compete). ETG was hired to facilitate the process and put into action a collaborative strategy process that would accelerate business competitiveness in Panama. One of the most important accomplishments was the development of a shared vision for the future economy developed by a public-private leadership team. Four key sectors were targeted for accelerated development (agro-industry, logistics/transportation around the Panama Canal, information technology, and tourism). Five cluster working groups were organized and put to work, leading to the development of more than 40 action initiatives. The program is completed its second phase with the development of the Compete Panama Fund to support initiative development. ETG participated in the inauguration of a third generation of the program “Impulsando Panama” in 2008.
South Africa: Tourism Cluster Development Project (1998-2000)
In 1998, ETG was hired to design, launch, and implement South Africa’s first tourism cluster initiative. The “Tourism Collaborative Action Initiative” leadership group was formed with high level leaders from government, business, and organized labor to work together to realize the potential of South African tourism, and thereby impact positively on the national economy, through enhanced national and international tourism earnings and job creation.
The project combined rigorous analytical research with collaborative human processes to develop a shared vision and strategy for tourism development and to mobilize collective action by key stakeholders in the private sector, labor and government. The project resulted in numerous action initiatives involving tourism stakeholders in both the private and public sectors to create foundations for sustainable partnerships, skills development and for a marketing platform that is credible and competitive in the global context.
The project developed a process of engagement among private and public tourism stakeholders in such a way as to develop a consensus view of the eco-, cultural and conventional tourism and the strategies needed to drive it forward. More than 500 leaders were involved in processes at the national cluster level, two “thematic” clusters, and four pilot regional clusters. A great many parties were involved in this program which, together with the sheer magnitude of the project, presented a great challenge in terms of co-ordination and integration, with results that ranged from exceptional to less than impressive.
Mexico: Transformando Campeche (1996-98)
In April 1996, business leaders in the state of Campeche, Mexico arranged funding for and launched a 3-year cluster-based economic strategy project. This unique, private sector-led project had three phases: Phase I provides a diagnosis of the strengths and weaknesses of the state’s economy, while in Phase II ETG staff developed strategic options for Campeche’s future using a process-intensive, working group approach. In the third and final phase of the project, specific initiatives were launched under the guidance of the consulting team, which includes Mexican sub-contractors with direct experience from the Chihuahua Siglo XXI project, in addition to ETG staff. The private and public sectors developed a joint, focused vision of the state’s future and the means for implementing that vision. Since 1998, Campeche has achieved a major transformation of its primarily agriculture and fishing economy into a diversified one with a boom in both 1) tourism (tripling the number of tourists to the region between 1997 and 2000), and 2) light industry (8,000 new industrial jobs from 1997-2000, the highest growth (48% increase) in Southeast Mexico.
South Africa – Cluster Leadership Training (1997)
At the invitation of the Government of South Africa, private sector, and in collaboration with the World Bank, ETG professionals were invited by the Government of South Africa to carry out cluster leadership training and facilitation workshops, in South Africa during 1997. We met with more than 300 South African business, government and union leaders to carry out cluster-specific workshops and leadership training. We have established an on-going relationship to work with the SA government in implementing their cluster program.
Chihuahua Venture Capital Summit (1997)
Professionals from ETG were invited by Chihuahua to plan and facilitate an economic development summit on Chihuahua in 1997. One of the primary objectives was to develop a collaborative process to design and implement mechanisms to support local entrepreneurship and wealth generation. ETG worked to develop an approach and help implement in the most effective way to mobilize local investment, support high growth enterprises, and position Chihuahua to become the most advanced high value-added economy in Mexico.
Morocco: Le Maroc Compétitif – Cluster-based Economic Strategy (1995-96)
In 1995 Morocco launched a new kind of economic development project with the help of ETG professionals (then at DRI-McGraw-Hill) and financing from the World Bank and European Union. Le Maroc Compétitif was an ambitious project devoted to creating a new movement for “collaborative” economic action and change in Morocco. During its first year (1995-96), the project mobilized more than 150 key business and government leaders in four of Morocco’s most important industrial clusters (textiles/apparel, tourism, seafood products, and electronics and information technology. Each of these clusters formed working groups which brought public and private leaders together to articulate more than 30 concrete action initiatives that have demonstrated the viability of a participative, action-oriented approach to economic change in Morocco. Among these initiatives are the establishment of trade and investment promotion centers, training centers, and new enterprise incubators. To ensure the ability of the working groups to implement these initiatives, the private sector has demonstrated its commitment to the project by financing and launching the LMC Association, a new economic organization established to coordinate the continued implementation and operation of the project and its initiatives.
Chihuahua, Mexico: Mexico’s First 21st Century Economy (1992-95)
The Chihuahua Siglo XXI Project was launched in 1992 as a long-term, comprehensive effort to design and implement new economic development strategies for Chihuahua. In 1992, the ETG team with DRI/McGraw-Hill examined the external and internal economic environment for the state, developed a vision of a new kind of economy to guide the decisions of policy makers and leaders in the private sector and developed strategies and tactics for moving the economy in new directions. Then, via a comprehensive set of “cluster working group” meetings, ETG staff assisted group participants in identifying a set of concrete action initiatives on trade, investment, education, infrastructure, finance and other issues. These initiatives are still in the process of being implemented under the leadership of the project organization: Chihuahua Siglo XXI. The transportation and distribution cluster was one of nine clusters identified. A transportation/ distribution cluster working group was formed and five new action initiatives emerged from a six month intensive working group process, including: a joint purchasing collaborative among trucking companies, the formation of a trucker’s credit union (bank), the development of a new local airline with direct passenger and freight connections between Dallas/Fort Worth and Chihuahua airports. Chihuahua created a very pro-active and positive business climate and became one of Mexico’s leading states in job growth, foreign direct investment, and high tech infrastructure.
Hong Kong: Economic Strategy (1988-89)
In preparation for its reintegration with China in 1997, the members of Hong Kong’s business community hired professionals from ETG (then at Stanford Research Institute, SRI International) to develop a strategy to prepare Hong Kong to make the economic transition from a British to a Chinese Hong Kong. This project encompassed an enormous process of consultation with business leaders, government officials in Hong Kong and China, as well as universities and community organizations. The final report was to be issued when the Tiananmin Square event occurred. Responding to this event our team added an entirely new process step to re-examine the commitment of the community to its future economic vision. After being completed, our report confirmed Hong Kong’s sense of its future and was used as the guide for a number of international trade, education and technology initiatives. This project introduced our team to the nature of different types of cross-border partnerships—with Hong Kong and Guangdong being one important example of an entrepôt and cross-border production partnership region. One of the key economic opportunities related to Hong Kong’s role as an entrepôt (trading and transportation logisitics) center for the region. Key transportation/logistics industry linkages and opportunities were identified and developed in industry working groups.
Bangalore, India – Innovation-Driven Economic Development (1988)
ETG professionals (then at Stanford Research Institute, SRI International) were hired to develop a technology-based economic strategy project for the region of Karnataka, India—focusing on Bangalore. At this time Bangalore was not known, as it is today, as one of the major software development centers of the world. Our project with this region focused on analyzing the region’s clusters, their requirements, the capabilities of the region’s universities, national labs (they had four) and how to sustain and accelerate the technology-based enterprise development process that was just taking shape. This project helped shape a collaborative strategy that created a network for shared R&D, training and venture financing that helped to chart the course for Bangalore to become the “Silicon Valley. We learned from Bangalore, India the importance of understanding the buyer-supplier dynamics of business in a region and how very often economic development programs are less essential to economic development than “virtual” programs that improve market efficiency by removing barriers or creating opportunities for collaboration.
Strategy for the Electro-Optics Region of Jena, East Germany (1991)
Immediately following the announcement of integration professional staff (now with ETG) under took an assignment to assist the region of Jena, Thuringia in former East Germany in linking the privatization process with regional economic strategy. The project was financed by the Treuhandanstalt and Jenoptic Carl Zeiss (JCZ). The project took place at the time that the JCZ had already announced layoffs of over 25,000 workers, with plans for layoffs of 20,000 more. The project undertook the following activities: (1) Presentation of an economic development framework based on market principles. (2) Multiple workshops on current world market trends and technology issues in electro-optics and optical technologies. (3) Organization and management of technology-business development working groups to develop business plans for spin-offs, joint-ventures and collaborative R&D. (4) Organization and management of a regional economic infrastructure strategy process, focusing on retraining, R&D and physical infrastructure. (5) Development of a business plan for a regional economic development organization (JEDCO). (6) Brokering of partnerships between US optoelectronics companies and components of CZJ. The project concluded with presentation of a business plan and limited business introductions. Subsequent to the project new management was brought to CZJ, the state of Thuringia established an economic development organization, became a co-owner of the remaining company, new federal government investment was attracted to the region, a Japanese company located operations in the region.