Unlocking the potentials of Micro and Small Enterprises (MSEs) in building local technological capabilities in agro-processing industry

This research was aimed at feeding into the quest for ways that would help advance Africa’s effort to industrialize its economy. Empirical evidence suggests transforming the agro-industry and inserting MSEs into value chains is the most feasible strategy. Inspired by arguments against global value chains (GVCs) orientation of Africa’s industrialization strategies, this research investigated the link between local production and technological capability in Africa using indicators from various international databases and cross-country quantitative analyses. The research also undertook an in-depth qualitative investigation on Ethiopia’s edible oil industry as an important case capable of shedding some light on problems linked to Africa’s agro-processing with a special focus on local production system and technological capability. The finding revealed strong positive linkages between local value chains and technological/innovation capabilities in Africa. Structural constraints, under-developed supply chains, and poor implementation and coordination of policies have limited Africa’s capability to harness potentials inherent in the agro-processing sector.</p

REGIONAL LINKAGE IN TOURISM: THE CASE OF VIETNAM

Abstract. This research is conducted for investigating the current situations of regional linkage in tourism development in the areas of Midlands and Northern Mountains in Vietnam. Data were collected from a survey of 755 people, including officials from State management bodies in charge of tourism, officials and staffs at tourism resorts, tourism firms, tourism scientists and tourists. In addition, we conducted focus group and interviewed tourism agency officials and tourism firms in the Midland and Mountainous provinces of Vietnam. The results show that tourism development in Vietnam in general and the Northwest region in particular is extremely fragmented, not yet forming a regional linkage; regional and national tourism development projects are just formalistic. Some causes are the limited regional integration policy, lack of appropriate regional governance mechanisms and inactive participation of the private sector in regional integration. Based on the findings, we propose a tourism sector linkage model; besides, policyimplications are given for fulfilling the linkage policies in Vietnam in particular, and more broadly for emerging countries in general.Keywords: Midlands and Northern Mountains, tourism linkage, Vietnam

Tourism as a driver of economic development: The Colombian experience

The current paper analyzes the importance and potentials of the tourism sector for economic development. It is divided into four major parts. After a short introduction, section two presents some theoretical insights into the topic of economic development. Commenting on the most relevant components of the catching-up theory by Abramovitz (1986) and the structural change theory by Baumol (1967) and others, it could be realized that growth and the accompanying structural changes in the distribution of employment and GDP have their sources in the sector industry. But at the moment of incorporating the demand side explanation of structural change, the service sectors offer growth potentials as well. Furthermore, the basic characteristics and importance of the tourism sector for economic development and employment are emphasized, examining the so-called 'social capabilities' and the innovation potential within the process of economic growth of any nation. A short survey of literature concerning the contribution of this sector to economic growth makes clear that tourism should be considered not just from the perspective of the benefits, but also from the costs associated with it. Section three provides an analysis of the economic impact of tourism in a developing country, namely Colombia, based on time-series analysis and data gathered supported on the 'Tourism Satellite Account' Methodology. Some relevant indicators produced by the World Economic Forum through its 'Travel and Tourism Competitiveness Report', are also evaluated. Finally, some conclusions are drawn with respect to the potentialities, as well as the challenges identified for the Colombian case. --structural change,service sectors,social capabilities,economic development,tourism,Colombia

Cutting the Climate-Development Gordian Knot - Economic options in a politically constrained world

Combating climate change cannot but be a cooperative venture amongst nations. Together with the problem posed by the withdrawal of the US from the Kyoto Protocol, the key challenge for winning the battle is the involvement of developing countries in efforts to alter their GHGs emissions trends. This involvement is necessary technically but also politically to bring the largest emitter of the planet back on the battle field. In the first section we draw on history to outline the intellectual underpinning of North/South divide around climate affairs. In the second section we show the economic basis for a leverage effect between development and climate policies. The third section ventures to propose some guidance to develop a viable climate regime strong enough to support an ambitious effort to decarbonize economies and we show that the Kyoto framework, once re-interpreted and amended is not so far from this working drawing.climate policy; development

Assessing the Economic Impact of an Agricultural Project in a Petroleum-Exporting Country. The Case of Palm Oil in the Republic of Congo

Agribusiness,

Information Technology in The Learning Economy -Challenges for Developing Countries

This paper inquires how the concept of the "learning economy" can be applied to the requirements of developing countries. The main purpose is to develop an analytical framework to better understand how learning and capability formation can foster industrial upgrading. Special emphasis is given to te spread of information technology (IT). We inquire under what conditions developing countries can use this set of generic technologies to improve their learning capabilities. We argue that information technology should not be regarded as a potential substitute for human skills and tacit knowledge. Instead, its main role should be to support the formation and use of tacit knowledge. In the paper we compare two stylised models of the learning economy, the Japanese versus the American model. The Japanese model is explicit in its promotion and exploitation of tacit knowledge, while the American model is driven by a permanent urge to reduce the importance of tacit knowledge and to transform it into information - that is into explicit, 4 well structured and codified knowledge. We show that each of these models has peculiar strengths and weaknesses. Developing countries need to develop their own hybrid forms of institutions that combine the advantages of both models in a way that is appropriate to their idiosyncratic needs and capabilities.information technology; learning; learning economy; knowledge; capabilities; networks; developing countries; economic development; industrial upgrading

Assessing the Role of Microfinance in Fostering Adaptation to Climate Change

Much of the current policy debate on adaptation to climate change has focussed on estimation of adaptation costs, ways to raise and to scale-up funding for adaptation, and the design of the international institutional architecture for adaptation financing. There is however little or no emphasis so far on actual delivery mechanisms to channel these resources at the sub-national level, particularly to target the poor who are also often the most vulnerable to the impacts of climate change. It is in this context that microfinance merits a closer look. This paper offers the first empirical assessment of the linkages between microfinance supported activities and adaptation to climate change. Specifically, the lending portfolios of the 22 leading microfinance institutions in two climate vulnerable countries – Bangladesh and Nepal - are analysed to assess the synergies and potential conflicts between microfinance and adaptation. The two countries had also been previously examined as part of an earlier OECD report on the links between macro-level Official Development Assistance and adaptation. This analysis provides a complementary “bottom-up” perspective on financing for adaptation. Insights from this analysis also have implications for OECD countries. This is because microfinance is also being increasingly tapped to reduce the vulnerability of the poor in domestic OECD contexts as well and may therefore have the potential to contribute to adaptation. The paper identifies areas of opportunity where microfinance could be harnessed to play a greater role in fostering adaptation, as well as its limitations in this context. It also explores the linkage between the top-down macro-financing for adaptation through international financial mechanisms and the bottom-up activities that can be implemented through microfinance.Microfinance, Climate Change, Financing, Adaptation, Bangladesh, Nepal

A STUDY ON COMPETITIVENESS OF READY-MADE GARMENTS FOR EXPORT-LED ECONOMIC GROWTH IN BANGLADESH: ISSUES AND CHALLENGES

Abstract: Bangladesh achieved remarkable economic development in the last few decades, and the ready-made garment (RMG) industry played a vital role in this regard. The future economic development of the country depends on the success and continuation of such industrial sectors for export-led growth of the country. Considering the importance of the export-led economic growth strategy, this study assessed the global competitiveness of this industry. Michael Porter’s Diamond model of national competitiveness is used as the main analytical framework to assess the sources of competitiveness. A SWOT analysis is also conducted to identify future challenges and critical success factor for the continuing contribution of the industry. The study followed a mixed method approach to investigate the research questions. Secondary literature, consisting mainly of reports and documents from government and the private sector, were collected to comprehend the contemporary industry. A survey of 199 respondents from 150 RMG factories was conducted to assess effects and relative weights of different factors included in the National Diamond model and to understand the basis of the competitiveness of the RMG industry of Bangladesh. A further 30 face-to-face interviews with representatives from five different stakeholder groups including international buyers were conducted to get further explanations and insights of different factors of importance for achieving and maintaining the competitiveness of the RMG industry of Bangladesh. The findings of the study reveal that not all the dimensions of Porter’s National Diamond model contributed to the competitiveness of the RMG industry. Among the four main National Diamond dimensions, the RMG industry of Bangladesh appeared to enjoy competitiveness without having a favorable demand condition in the domestic market. The other three main dimensions—i.e., the factor conditions, related and support industries, and industry strategy, structure and rivalry—mostly played conducive roles in the development of the RMG industry in Bangladesh and provided the impetus to achieve competitive advantage in the global market. However, within factor conditions, the availability of a large unskilled workforce, strategic locations and reasonable infrastructure acted as sources of competitive advantage despite some limitations including a lack of highly skilled mid-level RMG professionals, limited access to adequate financing, and deficiencies in R&D activities. Similarly, regarding related and support industries, a large number of backward-linkage knitwear industries positively contributed towards competitiveness, though industry respondents indicated an absence of well-developed clusters as a limitation compared to other countries. In the case of industry strategy, structure and rivalry, collaborative actions by the industry association regarding compliance issues, as well as collective responses to buyers’ needs, were identified as sources of competitive advantage, while sub-contracting to non-compliant factories and a lack of systematic R&D (e.g., an absence of a common e-platform) were considered as limitations. The findings indicate that the positive impact of favorable factors of those three dimensions (factor conditions, related and support industries, and industry strategy, structure and rivalry) were relatively stronger than the negative impacts, and contribute to the achievement of competitive advantage of the industry. Other than the four main factors, the study also found that government support has played a significant role in the development of the RMG industry in Bangladesh. The government provided these supports through various policy initiatives, financial incentives, and the negotiation of favorable trade agreements including tariff and import-quota free access to the European Union under the Generalized System of Preference (GSP) scheme. The study also recognized that three chance events greatly influenced the development of the RMG industry of Bangladesh and positively affected growth in the sector: a quota system levied against traditional RMG exporters (e.g. South Korea, Hong Kong) in the 1970s; the Multi-Fibre Arrangement (MFA) that governed world trade in textiles and garments from 1974 to 1994 and provided beneficial access for Bangladeshi exporters; and compliance issues raised after the 2013 Rana Plaza garment factory catastrophe. The findings further highlight the importance of Porter’s double, multiple and rough diamond propositions in maintaining the continuous growth and development of the RMG industry in Bangladesh. It also briefly points out the potential impact of current COVID -19 pandemic on the RMG industry of Bangladesh. Finally, it proposes further research avenues to advance knowledge on competitiveness from different perspectives along with policy implications for the RMG sector of Bangladesh

Quest for economic development in agrarian localities

This paper describes and analyzes the operational strategy of West Nile region, a typical low local capability community, in pursuit of local economic development. Special emphasis has been placed on the development of groups of survival beekeeping-enterprises and their integration in the local economy. The region provides an interesting example of what public-private partnerships can offer for local economic development. Secondly, it is an attempt to document, in a coherent manner, the activities and contributions of the key actors in the honey and beeswax value chain, including support from complementary institutions. Finally, it conceptualizes and theorizes the practice of beekeeping, honey extraction, processing and marketing in West Nile. Possible lessons that can be learnt from the experience are also identified and discussed

Learning about innovation in Europe’s regional policy

In the good old times scholars and practitioners arguing in favor of a regional dimension of innovation policies felt like being the avant-garde of new, forward-looking thinking against the old-fashioned conventional wisdom, according to which “grand” industrial policy inherently required the full strength of the Nation State or – for some – the new European “super-State”. The former looked for answers from a new territorial and systemic perspective, paying particular attention to SMEs and endogenous capacities rather than searching from exogenous help by, for example, luring inward investment, typically branch plants from multinational companies, through fiscal incentives . At the same time, the emphasis on innovation implied a departure from traditional regional policies, focused on the transfer of resources from “rich” to “poor” areas and on providing basic infrastructures to disadvantaged regions in the name of cohesion objectives.