Changing Paradigm of Cluster Development: Learning from Global Experiences Poverty Intensive Cluster...
26
Changing Paradigm of Cluster Development: Learning from Global Experiences Poverty Intensive Cluster Development in Iran 20-22 February 2014, New Delhi Issa Mansoori UNIDO NPC 1
Transcript of Changing Paradigm of Cluster Development: Learning from Global Experiences Poverty Intensive Cluster...
1
Changing Paradigm of Cluster Development: Learning from Global Experiences
Poverty Intensive Cluster Development in Iran
20-22 February 2014, New Delhi
Issa MansooriUNIDO NPC
2
Outlines
• MSME Sector in Iran• Trends in MSME sector and poverty• Poverty intensive cluster development
Geography
Europe
Africa
Asia
Middle East
4
MSMEs in Iran; Share
(%)No. of
EmployeeType
96.5 1-9 Micro
2.5 10-49 Small
0.4 50-149 Medium
0.4 >150 Large
4
5
Value creation capacity in different segments of the chain
by traditional MSMEs
Supply Design Production/Process
Marketing Sale
Value
6
Focus of Supports by Government and Banking System
Supply Design Production/Process
Marketing Sale
Value of Supports
Value Creation by SMEs
Level/area of intervention
National
Industry
بنگاهبنگاهبنگاهبنگاهبنگاه
Firm
7
8
Share of MSMEs linked to any value chain in 2008 and 2013 (among 40,000 MSMEs in the clusters)
Simple Market based
End Market
Leader/Branded Co
Key Supplier
Preferred Supplier
Certified Supplier
Tier 1
Tier 2
Tier 3
Strategic Partner
2008 2013
88% 96%
12% 4%
Share from total num
ber of firms
Year
Linke
d to
the V
C
Japan’s experience
9
Value creation capacity
Countries’/regions’ experiences
10
11
From pro-poor to competitiveness
Crafts
Agriculture
AutomotiveElectronic
Textile
Economic Value
Complexity of Technology
12
Back to Traditional Sectors
Crafts
Agriculture
AutomotiveElectronic
Textile
Economic Value
Complexity of Technology
Focused sectors
Pro-poor Competitiveness
13
3 categories of sectors• With High Constrain by int. relations Such as automotive, home appliance, ICT, etc.
With little constrain by int. relations Such as carpet, saffron, pistachio, etc.
With growth in domestic and regional market demand
Such as textile, footwear, petrochemical down-stream, furniture, etc.
Periods of economic contraction tend to favor a higher increase in informal sector activity
14Source: OECD 2010
15
Cluster Dev. Program MilestonesIn Iran
2003 2005 2006
UNIDO Strategy Doc . On Iran SME
Sector
UNIDO-ISIPO Collaboration
ISIPO Facilitated projects
(80Initiations)
2008
Establishment/Activities of
ABCD Foundation
Appr
oach
year
2010
Cluster Dev. In 5th National Dev. Plan
(Passed by Parliament)
Being Applied by Other Organizations
2013
Under 2nd strategyISIPO Clustering Projects
41 cluster projects
3 pilot projects
16
Under 3rd strategyLaws & regulations resolution
- National General Policies for Industry Sector (Supreme Leader advisory council, 2005)
- Fifth 5-year National Dev. Law (Parliament, 2011) Articles 80 and 150 are on Clusters and Networks development
- Approval of a budget line for cluster and network development ( Government, 2011)
- National/Multi-sector regulation for clusters & networks dev. (ongoing)
- ISIPO regulation on Cluster Dev. Known as reference among the related organizations across the country
17
18
Sustainable Livelihood as a tool for facing poverty
Old New Individual Players Market system
• Direct solutions (grants and subsidies) for the problems of individuals
• Managing constraints through the market dynamics …
• How can market system provide solutions for individuals and firms?
• What are the systemic constraints?
Individual Empowerment
Enterprises Development within the market system
Tool
Cluster Development
19
Shift from traditional to new approach of intervention for poverty alleviation
Community based interventions
e.g. rural infrastructure improvement, establishment
of education centres
Individual empowermente.g. direct grants and subsidies,
training the individual
Market systemBusiness/sectors development
Direct Supportse.g. direct payment to the poor,
providing basic stuff
Group Individual
Local
National
20
Case study 2: Greenhouses( vegetable and flower)
• Linked to the neighboring countries such as Kuwait, Russia, CIS countries.
• 100% increase in efficiency per hectare• Management of energy carriers consumption• Water resources management• Preventing degradation of lands
21
Case Study 3: Pistachio farms in rural areas
• Common purchase of inputs like fertilizers, pesticides organic production
• Jointly water resources management 60% decrease in water consumption in the farm
• Getting hygienic standards• Preventing migration to cities
22
Case study 4: Qom Footwear Cluster
• Establishment of export consortium• Export to CIS, Iraq and Afghanistan• Establishment of a common brand
23
Case study 1: Yazd Textile cluster(550 MSMEs)
• Establishment of 22 design service providers• 30 percent decrease in the waste of raw
materials through Technology upgrading• Local copy right• Design bank
24
Networking within the clusterBuzz
Pipeline
SME
25
BDS support framework
SME BDSpContract
Finance Inst.
Marketing
Market XBuyer 1
Contract
SME
SMESME
SME
Networks of SMEs
