UNIDO ~ UNITED NATIONS IDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL...
-
Upload
agatha-hubbard -
Category
Documents
-
view
222 -
download
0
Transcript of UNIDO ~ UNITED NATIONS IDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL...
UNIDO ~ UNITED NATIONS IDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO
SME Partnership Group Meeting, Hanoi, November 2004
Economic Development, the Role of SMEs and the Rationale for Donor Support
Some Reflections on Recent Trends and Good Practices
Wilfried LuetkenhorstDirector
Small and Medium Enterprises [email protected]
UNIDO ~ UNITED NATIONS IDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO
SME Partnership Group Meeting, Hanoi, November 2004
Bad news for SME support programmes?
Beck et al. (2003): “SMEs, Growth and Poverty: Cross-country Evidence”
No robust association between SME share and economic growth
No evidence that SME share impacts on poverty reduction
Conclusion: Drop SME support and create a level playing field
Should we all pack up and go home?
UNIDO ~ UNITED NATIONS IDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO
SME Partnership Group Meeting, Hanoi, November 2004
What are the key contributions of SMEs to economic development?
Basic questions revisited
Does SME development require government and donor support?
How should SME support programmes be best designed and delivered?
UNIDO ~ UNITED NATIONS IDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO
SME Partnership Group Meeting, Hanoi, November 2004
SMEs and economic development
Enterprise-level Employment creation Productivity enhancement Innovation
Industrial system level Systemic productive capacities (missing middle) Attraction of FDI Structural change
Broader societal objectives Equitable income distribution Reduction of regional disparities Private sector dynamism
UNIDO ~ UNITED NATIONS IDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO
SME Partnership Group Meeting, Hanoi, November 2004
Commission on the Private Sector & Development: Report to the Secretary-General of the United Nations
UNIDO ~ UNITED NATIONS IDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO
SME Partnership Group Meeting, Hanoi, November 2004
Rationale for SME support programmes
Market failures to the detriment of SMEs
Economic and social cohesion and stability as a public good
SMEs hit hardest by regulatory compliance costs: need to create conducive enabling environment
UNIDO ~ UNITED NATIONS IDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO
SME Partnership Group Meeting, Hanoi, November 2004
Some principal considerations in SME support programmes
Combining financial and business development services
Linkages are key!• Horizontal: SME clusters• Vertical: global value chains
Focus on start-ups or existing SMEs?
An emerging agenda: corporate social responsibility
UNIDO ~ UNITED NATIONS IDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO
SME Partnership Group Meeting, Hanoi, November 2004
“Let us choose to unite the power of markets with the authority of universal ideals. Let us choose to reconcile the creative forces of private entrepreneurship with the needs of the disadvantaged and the requirements of future generations.”
Kofi Annan,UN Secretary-General
UNIDO ~ UNITED NATIONS IDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO
SME Partnership Group Meeting, Hanoi, November 2004
UNIDO ~ UNITED NATIONS IDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO
SME Partnership Group Meeting, Hanoi, November 2004
The new mantra: BDS market development
Donors as facilitators and market developers
Involve private sector in BDS provision
Promote commercially embedded BDS
Stimulate competition (voucher programmes)
Emphasize performance measurement
Keep subsidies away from transactions
UNIDO ~ UNITED NATIONS IDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO
SME Partnership Group Meeting, Hanoi, November 2004
“Best practice” is a relative concept …..
“ ‘Drive on the left’ is a best practice in London but not in New York. A best practice
might work well in some countries but fail miserably when recommended in other
contexts.”(Joseph Stiglitz)