What are the Results of PACAWhat are the Results of PACA®®? ?

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What is PACA?What is PACA?

The origin and core of PACA:

– a rapid appraisal methodology

• to diagnose a local economy

• to identify opportunities for LED activities with a quick impact

= PACA Exercise The PACA approach to LED:

– LED as an opportunity-driven and business-oriented development initiative

• to create a favourable environment for entrepreneurs and companies

• to create income and jobs at the local level

= PACA Project

Short-term results in Thailand, Short-term results in Thailand, 20022002

Lampang Ceramic Group jointlyentered new markets in Chinaand companies are selling nowto Kunming

Lampang fundraised jointly for clusterdevelopment program with IFCT

Lampang ceramic and tourism sectorstarted cooperation and launchedspecial award for hotel/restaurantswhich use Lampang ceramics

Lampang started tourist project:Visit of Ceramic Factory

Short-term results in Thailand, Short-term results in Thailand, 20022002

Garment Sector Chiang Maistarted joint raw material sourcing

Furniture Group Chiang Mai startedgroup for lobbying against regulations

Chiang Rai tourism group organized itself and developed joint strategy

Governor Chiang Rai promotes PACA reports as guideline for alllocal government departments

Examples of Activities Resulting Examples of Activities Resulting from a PACA Exercise in Serbia, from a PACA Exercise in Serbia, 2002/20032002/2003

Implemented activities in Novi Kneževac: Setting-up of an LED unit in the

municipality Presentation of the Micro-Finance Bank

[short-term impact: 5 loans approved] Organisation of an information seminar

for farmers by FAO Reorganisation of the ‘Green Market‘ Organisation of a Song Festival Introduction of a ‘Walking Cinema’

Short-term activities in El Oro, Short-term activities in El Oro, Ecuador, 2003/2004Ecuador, 2003/2004

Reducing harbour fee by 70%more fishermen registered cooperation between fishermen and

harbour captain to fight piracy “Benchmarking”: Visits to fishery

clusters in Ecuador and PeruTraining to maintain outboard enginesControlling and standardising the

weights used by wholesale buyers Arts and craft training for wives

Short-term results of the PACA Exercises Short-term results of the PACA Exercises in Bima, Dompu and Boyolali (Indonesia), in Bima, Dompu and Boyolali (Indonesia), 2003/2004 2003/2004

Boyolali Boyolali

Marketing improvement – in the Selo tourism sector– in the furniture and metal sector

Stronger involvement in the Development Forum

Strengthening of local and regional networks

Improving the planning and analytical capacities of local decision makers

Inspiring a new partnership for the Boyolali economy.

Bima and Dompu (1)Bima and Dompu (1)

I. Establishment of a "Distribution and Marketing Center" (DMC)

I. idea existed long before the PACA Exercise

II.dynamics of the PACA process strongly accelerated the realization of the DMC

III.Main objective of DMC:

I. to directly link rural producers to markets

II.to provide technical training in order to secure a sufficient quality, quantity and continuity of local products

Bima and Dompu (2)Bima and Dompu (2)

Strengthening of organizational structures within the rural producer groups– creation of a 'Salt Division' to coordinate support

measures for the salt production more effectively, • linking the local salt industry with rural salt producers,

the regional economic development board, the department of trade and industry, and the district's development planning board.

– First tangible results • joint organizational training session for salt producers • ongoing infrastructural improvements such as water

channels and a new iodine machine.

Bima and Dompu (3) Bima and Dompu (3)

Bimanese textile manufacturers – have been able to join the

national handicraft association – have jointly produced a

promotion booklet on their unique designs

– local craftswomen have been visiting provincial and national product fairs and established a stronger retail network

Bima and Dompu (4)Bima and Dompu (4)

Economic forums in the Bima and Dompu districts have been strengthened– members of the forum were trained as

PACA facilitators and – were able to gain conceptual knowledge

of systemic competitiveness – improved their facilitation skills during

the various workshops and interviewsThe PACA exercise raised the legitimacy of

the economic forums to give recommendations to the district governments and parliaments.

Examples of activities after PACA Examples of activities after PACA Exercises in various Latin American Exercises in various Latin American locations locations

Stimulating direct Stimulating direct commercialisation and exportscommercialisation and exports

Cattle Farmers Association sells fresh milk via local restaurants

Open the export channels of an established export company for other local producers

Turn disadvantages into Turn disadvantages into competitive advantage (1): competitive advantage (1): Deforestation Deforestation

Massive cutting compromises the sustainability of a wood-working cluster in the Peruvian Amazon

Local action: Local wood industry propose to invest the wood-cutting-tax in the reforestation of the local woods Initiatives to use secondary forests (non-traditional wood varieties) Foundation of a local firm to sell selected seeds

Turn disadvantages into Turn disadvantages into competitive advantage (2): competitive advantage (2): SecuritySecurity

The lack of security is a competitive disadvantage of many locations in Latin America

Local action : Professionalise business self-help and create a private security firm Offer a high-security business park to investors and local businesses

Use available biomass for Use available biomass for profitable activitiesprofitable activities

In each location we find unused resources: Use natural compost to

substitute chemical fertilisers

Collect and select wood processing waste to sell to artisans and to use as source of energy

Use maize and rice waste as fodder and source of energy

Stimulating local demand Stimulating local demand

Many products are not consumed in the location where they are products. The producers are not aware of the needs of the final customers. Activities to stimulate local demand: Fairs and markets with local

products (“The Orange Festival”) Distribute booklets with new

recipes to local restaurants Contest around recipes for meals

based on local inputs

Long-term results in Mafra, Brazil, Long-term results in Mafra, Brazil, 1998 - 2003 1998 - 2003

Connecting a local NGO (introducing new production methods and products to smallholders) with local supermarkets

Local supermarkets depositing liquid funds at local agricultural credit cooperative, facilitating the expansion of NGO‘s work

Introducing additional products and processing, involving more producers

Around 1,000 families benefiting from the scheme, visible increase in welfare

Skilled youngsters stay at family farms

Thank you for your attention!Thank you for your attention!