Competitiveness and Industry/Sector Specific Example Projects

 

Armenian Competitiveness Assessment

 

Through a contract with USAID/Armenia, JAA led a national competitiveness assessment (under the Nathan-MSI GBTI IQC). The overall objective is to establish a process and structure for productive change by assessing the competitive environment of Armenia with particular focus on the growth of small and medium sized enterprise. The results of the assessment coupled with JAA’s expert recommendations will be providing guidance to USAID/Armenia’s strategy for supporting economic growth through 2009.

 

By applying several tools and methodologies appropriate to early competitiveness assessments—and to encourage initial involvement of industry groups—JAA carried out a countrywide competitiveness benchmarking exercise to collect sound comparative data for decision-makers and investors as input to public-private dialogue.  Having assessed the strategies and performance of nine Armenian industries (precision engineering, IT, food processing, brandy, wine, apparel, gems & jewelry and tourism) JAA was able to provide the stakeholders with a clear understanding of the current and potential competitiveness of Armenia’s economy.

 

JAA also suggested new policies developed for export development, investment promotion, infrastructure, and human resource development to improve the quality of the enabling environment based on cross-cutting priorities and the priorities of competitive industries.

 

Armenia CAPS Project

 

The Competitive Armenian Private Sector Project (CAPS) is the follow-on project to the Armenian Competitiveness Assessment.  The objective of this assignment is to assist private sector operations and strategies, while improving the quality of the microeconomic business environment in sectors that have the most impact on the economy in terms of income generation and employment. 

 

CAPS is based on a cluster approach which focuses on improving the business environment and fostering cooperation among enterprises in a particular industry sector.  The project currently has two industry clusters: Tourism and ICT—a third industry will be chosen a later time.  JAA is also assisting the production of an Armenian Competitiveness Report as well as providing training on competitiveness councils and best practices to provide more extensive briefings, and skills-development in competitiveness approaches through a series of workshops, roundtables and seminars.  JAA has examined industry performance, and intimately involves industry leaders in planning the implementation of a competitiveness initiative for Armenia.

 

Bosnia Cluster Competitiveness Project

 

To improve Bosnian competitiveness and jumpstart economic growth, JAA is designing mechanisms for public-private dialogue; introducing competitiveness concepts in the dialogue between clusters and government; educating the public sector on competitiveness and the need to engage the private sector; and assisting development of a national competitiveness council.

 

JAA is providing technical expertise by way of a labor association development specialist and short-term technical assistance in the area of public-private dialogue.  By working directly with trade associations, industry committees, and Regional Development Agencies (RDAs) JAA is introducing competitiveness concepts to guide the dialogue between business and government.  These partnerships are designed to develop strategies that advocate a pro-business investment climate by reforming business regulations and removing trade barriers that inhibit market linkages.   The formation of a Trade and Investment group will facilitate transactions into the wood and tourism sectors and will help each industry pinpoint target markets based on Bosnian assets.

 

Laos: Jump-Starting Exports and Building Trade Competitiveness

 

The objective of this effort was the rapid but sustainable growth of the Laotian export market, and foreign exchange generation.  The key to reaching the objective was engaging the local and regional industries, governmental leadership, and supporting academic institutions in ways that help jump-start initiatives in order to boost foreign exchange revenues from tourism, agriculture and light manufacturing in the short to medium term while improving the business environment for achieving these results. The project was implemented in three stages:

 

Stage 1: Benchmarking Laotian Competitiveness.  JAA reviewed global and regional industry trends relevant to Laotian exports such as coffee, apparel, tourism, wood products, and livestock products.  The subsequent analysis of this information provided a national competitiveness benchmark against which JAA could rank the current state of Laotian competitiveness in respect to exports, investment, human resources, science and technology, infrastructure, business environment and overall economic performance.

 

Stage 2: Strategy Development Workshops with Private and Public Sector Leaders.  JAA developed a presentation on the current competitiveness of Laos that clearly indicates current Laotian export competitiveness, highlights opportunities currently available to boost such exports, provides relevant examples from other countries in industries relevant to Laos, and provides some initial indications of ways to boost exports. JAA then developed industry cluster leadership maps, convened leadership groups, and worked with Laotian counterparts suggested by the World Bank. 

 

Stage 3: Design of Industry Cluster Export Strategies and Action Plans.  Of the four to six original industries engaged in Stages 1 and 2, JAA will proceed to map out a practical strategy for at least three of the industries. The team will use a highly interactive and participative methodology for engaging Laotian leadership groups so that the strategies identified are both understood and supported by local leaders.  This strategy will focus on the leading potential export growth sectors for Laos, specific strategic initiatives industry by industry, and government initiatives related to attracting foreign investment in export industries. 

 

JAA was uniquely qualified for this assignment due to significant experience in conducting export competitiveness initiatives in the region.  The project was able to investigate the demand-side issues for each of the clusters within the region. Through connections into industries in the neighbor countries, the project was able to collect information on the market opportunities for Lao companies to supply downstream products for regional exports.

 

Sri Lanka Competitiveness Exercise/Initiative Program

 

JAA was initially contracted by USAID to conduct competitiveness exercises in Sri Lanka.  The JAA team led a series of 26 workshops on competitiveness, cluster development and competitive strategies for business and government leaders.  Working with leading business associations, these workshops focused on techniques of effective dialogue and emphasized the need to work with one voice, ensure bi-partisan support, and to prioritize advocacy efforts.

 

In October of 1998, for the first time in Sri Lankan history, all 5 leading business associations came together and issued a set of 10 key priorities, calling on the Government to work in bi-partisan ways to address these. Since that time, priorities have been expressed annually with greater levels of analytical sophistication, and have led to direct sessions with the head of state and business leaders.

 

Business and government leaders were so impressed at every level that the Minister of Industrial Development, the Minister of Trade, and the Board of Investment requested competitiveness-training sessions for approximately 20 top staff in each of these three ministries. Moreover, The Minister of Industrial Development adjusted his productivity campaign to include a focus on competitiveness; the Minister of Trade, who was trying to generate support in South Asia for a regional trade agreement, sponsored a regional competitiveness conference; and the Ceylon Chamber established an Economics Intelligence Unit.

 

On the basis of the results from the competitiveness exercise, USAID issued a Request for Proposal (RFP), and JAA (through the Nathan-MSI GBTI consortium) was awarded the contract to implement a longer-term Competitiveness Initiative. JAA returned to Sri Lanka to facilitate the development and implementation of competitive strategies in five industry clusters: rubber, tourism, gems and jewelry, tea and ICT. Given the success of this initial group, the program was expanded to include three additional clusters: ceramics, coir and spices.  Each of the eight clusters has been implementing several action initiatives and have achieved notable improvements in bottom-line results, value added and market position.

 

On the basis of these positive results, USAID extended the project twice, for a total of an additional three years (through 2007), adding approximately $8M to the earlier budgets. JAA is currently focusing on workforce development, cluster sustainability and policy reform.  JAA assisted the Government of Sri Lanka establish a National Competitiveness Council.  Also, JAA worked with partner organizations in Sri Lanka towards the inclusion of Sri Lanka in the Global Competitiveness Report, published by the World Economic Forum in association with the Harvard Institute for International Development.

 

Croatian Competitiveness Initiative

 

JAA has been working closely in Croatia with our partners at Nathan Associates Inc. since 2001 and DAI since 2004 on a two-part Competitiveness Initiative.  JAA’s earlier introductory exercise in Southeast Europe pinpointed the lack of institutionalized private-public dialogue mechanisms as a constraint limiting the viable economic growth of the region. 

 

In response, JAA helped catalyze the formation of the Croatian Competitiveness Council (CCC), composed of fifteen leading Croatian CEOs, including two leaders from HUP – Croatia’s leading voluntary business association which represents small- and medium-sized enterprises.  Shortly after the formation of the CCC—Croatia’s first business roundtable of its kind—the Deputy Prime Minister signed a formal Memorandum of Understanding on behalf of the Government of Croatia recognizing the Council and agreeing to engage it in constructive dialogue.  Since May 2001, the Council has convened monthly to define key constraints to economic growth, and implement initiatives to address them.

 

In order to serve a wider constituency JAA helped convene the heads of Croatian Government officials, labor unions and educational institutions; this work culminated in the formation of the National Competitiveness Council.  The purpose of this council is to subsume the voices of several previously disparate sectors of the Croatian workforce.  Further, the Council helps the Government set priorities and monitor the implementation of national competitiveness programs.  The project also assisted several secondary sites form competitiveness councils to undertake smaller, regional initiatives while simultaneously strengthening the embryonic associations.

 

The three major industry clusters that the Croatian Competitiveness Initiative is working with are ICT, wood products and tourism.  Initiated in March 2003, the Wood Products Cluster brought together representatives from all parts of the value chain, including the monopoly supplier, Croatia Forests.  The cluster also brought in the Ministries of Economy, of Agriculture, and of Forestry, as well as academic institutions.  The cluster is well on its way to achieving its aim of more than doubling current revenues from 800-million euro to 1.9-billion euro in by 2010.  In order to cater to the needs of Croatia’s growing ICT sector, JAA and its partners, Nathan Associates, in association with Istrian Development Agency, are developing eight different industrial parks, which are projected to create almost 2000 new jobs by year-end 2007.  Not to be outdone, the Tourism Cluster unveiled their strategy on the island of Hvar to turn the port town of Stari Grad into a premium destination in its own right by capitalizing on Croatia’s rich cultural heritage and pristine natural settings.

 

Uganda Competitiveness Exercise

 

The USAID Africa Bureau funded this initial study and assessment in Uganda, selecting that country because of its commitment to economic reform and private sector development, as well as because of the interest expressed by USAID/Kampala.

 

In this pilot program for Africa, JAA applied methods of Competitiveness Analysis to industry clusters in Uganda and also engaged leaders of the Government of Uganda. Particular focus was on four Uganda industry clusters: cut flowers, fisheries, coffee and tourism. The analysis also included a comprehensive assessment of the extent to which Uganda has a favorable national platform (i.e., policy environment, infrastructure, human resources) for attracting foreign capital and enabling the competitiveness of Ugandan enterprise and industry. The team also examined the existing private-public dialogue mechanisms and recommended ways to strengthen these.

 

The initiative lasted about six months and involved intensive work with industry clusters and the identification of case studies of competitive enterprises that could serve as models to others. The head of the leading business association and the Finance Minister requested immediate follow-on assistance. Towards the end of the study, President Museveni requested a personal briefing at his country home two hours outside of Kampala. Present were twenty top government and private sector leaders. The JAA Team Leader engaged the President in lively conversation regarding the study findings and recommendations.  Subsequent to this project, the Government implemented a Medium-term Competitiveness Strategy (MTCS) to guide public sector improvements in support of economic competitiveness. 

 

Cambodia, Indonesia, Philippines, Thailand, and Vietnam/ANE Bureau National Competitiveness Building Project and Southeast Asia Competitiveness Initiative (SEACI)

 

The broad objective of the preliminary competitiveness exercise in Southeast Asia was to develop national strategies tailored to country-specific conditions in Indonesia, Philippines, Thailand, Cambodia and Vietnam.  The objective was to identify decision-makers among the private and public sector leadership who could develop networks of stakeholders that support various aspects of competitiveness initiatives and institutional reforms thus improving business and industry strategy.

 

The program in Thailand included a special focus on the regions around Bangkok and Chiang Mai; similarly, the Filipino program focused on the regions around Davao, Mindanao, Cebu, and parts of Luzon. In Vietnam the objective was to reform outdated development methods and implement national strategies to take advantage of the U.S.-Vietnam bilateral trade agreement, as well as strengthen U.S.-Vietnam trade linkages.

 

Based on the success of an initial Southeast Asia regional competitiveness exercise, USAID funded a multi-year project in Thailand, Vietnam and Cambodia, implemented by JAA and Nathan Associates to contribute to the speedy recovery of South East Asian economies. 

 

The Thailand Initiative worked with the multimedia, handicrafts, high-value agricultural products, gems, silk, seafood and tourism/ecotourism clusters. By the end of the project, JAA’s in-country counterpart, The Keenan Institute-Asia (KI Asia), had been trained to continue implementing strategic and policy initiatives using the cluster engagement methodology.  JAA conducted five competitiveness cluster-training workshops for industry clusters and a series of training events for JAA’s Thai counterparts. 

 

In Cambodia, JAA collaborated with Enterprise Development Cambodia (EDC) on a program to improve the quality of processed fish exports caught in Tonle Sap Lake.  The JAA/EDC partnership also devised regional business plans for rice milling, rice noodles, and brick and tile manufacturing.

 

The Vietnam component of the SEACI Project worked with the fruit and ceramics clusters in and around Hanoi, and ICT clusters in Hanoi and Ho Chi Minh City. JAA organized three major training conferences with over 200 people attending, and featured a former Prime Minister of Ireland. 

 

Diversification of Kazakhstan’s Economy through Cluster Development in Non-Extracting Economic Sectors Program

 

Through a contract with Kazakhstan’s Ministry of Economy and Budget Planning, JAA developed a national competitiveness strategy as well as industry strategies and action plans for improving the productivity and competitiveness of seven key non-oil industries (identified through in depth research, analysis and dialogue) in Kazakhstan.  The overall objective of this program was to identify existing, emerging and potential manufacturing, agricultural and service clusters in Kazakhstan’s non-extractive economy, and evaluate them in terms of their productivity, competitiveness and growth potential.  JAA identified industries (existing, emerging or new) with the potential for growth and increased competitiveness based on in-depth analysis and extensive industry workshops and interviews.  This preliminary competitiveness analysis was used as a basis for developing strategic agendas and action plans for each cluster.  With JAA’s guidance, the seven piloted clusters developed strategies and enacted implementation plans.

 

JAA also worked with the industries and the government to resolve constraints in the business environment through private-public dialogue mechanisms.  With JAA’s guidance the government set up a competitiveness working group to prioritize and resolve the key constraints in each industry. 

 

JAA also conducted a skills and knowledge transfer program, designed specifically to pass on skills and knowledge to key Government officials, business leaders, and members of the private sector/academia.  The full range of training topics included private sector development methodologies, value chain analysis, SME issues, product/market research, and export/trade promotion.  The sectors involved in this project were tourism, textiles, oil and gas equipment, food processing, logistics and transport, construction materials, and metallurgy.

 

Pakistan Initiative for Strategic Development and Competitiveness

 

The USAID-funded PISDAC project is a three-part competitiveness initiative focused on the creation of industry clusters, and workforce development. 

 

The first phase of the PISDAC initiative ran through August 2004.  During that time, JAA laid the foundations for a series of reforms aimed at closing the gap between Pakistani enterprises and firms that produce the highest value products.  By creating Strategy-Working Groups (SWOGs), three primary industries—Dairy, Marble & Granite, and IT—began to identify elements of a sector strategy intended to upgrade productivity, increase competitiveness, and foster public-private dialogue.

 

By the beginning of Phase II (September 2004 – August 2006), a fourth SWOG had formed representing the Gems and Jewelry sector.  Each of the four SWOGs was encouraged to broaden their membership ranks to include major industry players, representatives from support industries, and relevant government officials at the national, provincial, and local levels.  For JAA, the second phase included a significant amount of support/technical assistance to the Small and Medium Enterprise Development Authority (SMEDA), the local SME development partner.

 

PISDAC assisted SMEDA in benchmarking itself institutionally and operationally with other similar entities in Europe and elsewhere vis-à-vis its mandate and its ability to promote innovation and better strategy.  SMEDA is receiving technical assistance to strengthen its capacity to provide advocacy and business development services including industry strategy development; coordination with supporting government and university institutions; and direct industry-specific technical assistance.

 

Over the life of the project the Government of Pakistan expressed a strong interest in the SWOGs and in the PISDAC methodology.  The Ministry of Industry, Production and Special Initiatives, the Export Promotion Bureau, and the Government of Punjab are actively supporting PISDAC SWOGs and the PISDAC project.  EPB has agreed to collaborate with SMEDA and PISDAC to coordinate resources with EPB financing some technical assistance and study tours for the SWOGs.  The high level of responsiveness of both industry leaders and high level GOP officials led to a subsequent contract extending the project for another two years, to February 2006.

 

The third phase of PISDAC (February 2006 – March 2008) is convening three additional SWOGs for the surgical instrument, wooden furniture, and horticulture industries, while introducing competitiveness related policy and institutional reforms.  By helping industries take advantage of these reforms, PISDAC will contribute to the sustainability of economic growth in Pakistan.  PISDAC’s focus on industries that have direct impacts on rural poverty (dairy industry, gems and jewelry, and marble and granite) will greatly improve economic livelihoods and employment in disadvantaged areas such as Baluchistan, North West Frontier Province and the federally administered tribal areas (FATA). PISDAC will also pioneer innovative approaches for linking industries with their education and training providers and address skills gaps through workforce initiatives.

 

El Salvador Export Promotion for Economic Reactivation of Salvadoran Micro, Small, and Medium Enterprises Activity

 

JAA is a core firm for the EXPRO program consortium in El Salvador.  The program is helping Salvadorans to improve the environment for enabling Salvadoran exports through the implementation of incentive structures, and the provision of technical assistance and information to MSMEs and export service providers.  JAA is providing technical expertise in competitiveness, marketing, export promotion, and business development.

 

JAA has helped to establish a network of marketing representatives in the US, and to analyze the US demand for natural tropical fruit juices and concentrates to help Salvadoran farmers/producers understand the opportunities available in the U.S. market, how to export tropical juices and concentrates, and how to position themselves as juice or concentrate exporters rather than fruit exporters. JAA also helped plan and conduct a seminar in Los Angeles, in conjunction with the Produce Management Association Trade Show, on the use of commercial intelligence in export and investment promotion.  JAA visited the Salvadoran exhibit at the PMA show and another at Natural Products Expo East to see the products, meet the exhibitors and give them suggestions about marketing. 

 

Egypt TAPR II

 

The Technical Assistance for Policy Reform II (TAPR II) project supports the overall USAID/Egypt goal of promoting a globally competitive Egyptian economy benefiting all Egyptians equitably.  In partnership with BearingPoint, JAA provided senior competitiveness advisory expertise to the country team writing the Egypt Competitiveness Report, which was presented at the World Economic Forum regional conference in May 2006.  The JAA team conducted an evaluation of the current Agricultural Export and Rural Incomes Project that addressed a wide range of components including trade association development, university capacity building and improvement of public-private sector communication, biotechnology research, smallholder horticulture and dairy/livestock development, and business development services.  In addition, the JAA competitiveness expert conducted meetings with key private sector leaders and the National Competitiveness Council in an effort to support the council dialogue and activities.

 

Russia, Ukraine, Kazakhstan—Europe and Eurasia Bureau National Competitiveness Building

 

JAA developed and implemented a national strategy to help the governments and private sectors of Russia, Ukraine, and Kazakhstan become more competitive in the global marketplace. Specific objectives included: (1) influencing policy and institutional reform, (2) improving business and industry strategy, (3) reaching the highest levels of private and public sector leadership, and (4) developing a regional stakeholder network to support competitiveness initiatives and reforms.  JAA collaborated with the Competitiveness Project Leadership Board (CPLB) to identify private and public sector leaders and invite them to business strategy seminars. JAA also coordinated with CIPE on a Competitiveness Conference, which was held in Budapest, Hungary in March 2002.   

 

World Bank Toolkit of Analytical Methods to Enhance the Competitiveness of Agricultural Supply Chains and Agribusiness in Sub-Saharan Africa

In this flagship program, JAA was contracted by the World Bank’s Environmentally and Socially Sustainable Development (ESSD) Group to prepare a toolkit of implementation approaches centered on value chain principles to enhance the competitiveness of agriculture and agribusiness in Sub-Saharan Africa. 

 

The toolkit provides a number of implementation tools and methodologies based on value chain concepts that can be used in the context of agricultural and agribusiness development programs.  The over-arching purpose of this document is to provide practical approaches that focus on improving the competitiveness of agricultural supply and value chains.   Value chain analysis is an indispensable part of many approaches; however the tools discussed in this document have been selected for their usefulness in guiding and supporting market-focused private sector initiative and action.  The toolkit includes 20+ cases describing how the tools have been effectively implemented.  Cases have been selected from many countries: Botswana, Ghana, Kenya, Mali, Mongolia, Mozambique, Nigeria, Pakistan, Rwanda, South Africa, Sri Lanka, Tanzania, Thailand, Uganda, and Zambia, amongst others.

 

The bulk of the toolkit is individual tools and approaches.  The document also discusses several key themes which the tools apply or take into account.  In this regard, however, the important “take-away” from this document is not the identification of common themes, but rather the insight that the use of value chain-based approaches must add value, create opportunity, and reach markets.  This toolkit provides planners and decision makers with practical tools for implementing effective value and supply chain development programs.  It provides a common framework to public and private stakeholders for prioritizing decisions that will have a competitive impact on sectors and sub-sectors.  It also provides practical tools for planning, programming and animating, and provides policy-makers, business leaders, members of the development community, and researchers and practitioners with methods and approaches that can be used to promote the development of traditional and non-traditional value chains in Sub-Saharan Africa.

 

For information on more projects related to Competitiveness, please view our JAA Corporate Capabilities and Qualifications Document