RFCD 2011: Ms. Delaine Morgan: Cluster Development Jamaica
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RFCD 2011: Ms. Delaine Morgan: Cluster Development Jamaica

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RFCD Conference @ Arthur Lok Jack GSB - November 2011

RFCD Conference @ Arthur Lok Jack GSB - November 2011

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RFCD 2011: Ms. Delaine Morgan: Cluster Development Jamaica RFCD 2011: Ms. Delaine Morgan: Cluster Development Jamaica Presentation Transcript

  • ROLE OF GOVERNMENT IN CLUSTER DEVELOPMENT Experience In Supporting Cluster Implementation THE CASE OF THE CASE JAMAICAOF JAMAICA
  • BACKGROUND –CLUSTER DEVELOPMENT IN JAMAICA• Jamaica’s experience in the area of cluster development commenced in 2002• Formation and support of clusters in the Agribusiness, Tourism and Entertainment sectors under the Jamaica Cluster Competitiveness Project (JCCP)• JCCP - A two year pilot project funded by DFID; USAID, the Government of Jamaica and the Jamaica Exporters’ Assoc. (JEA)• In 2003 feasibility study commissioned by the European CommissionKey Recommendation: the design of a private sectordevelopment programme to enhance the overall competitivenessof Jamaica’s private sector .
  • RIVATE SECTOR DEVELOPMENT PROGRAMME (PSDP) OVERVIEW A € 26.17 M initiative jointly funded by the Government ofWhat is the PSDP Jamaica and the EU and which operated from 2004-2009  Geared at increasing competitiveness of Jamaican Micro, Small & Medium Sized Enterprises (MSMEs) as well as strengthening their support InstitutionsPSDP Objectives  Via the provision of technical assistance & grant funding  Using key business support institutions in the private & public sector to execute various Programme activities to maximize firm level impact. Operating 2 Public Sector Institutions (JAMPRO & JBDC) contracted by the PMU to implement the Programme via a Cluster led Framework Approach. Wide range of Macro (policy level), Meso and Micro Key Outcomes interventions implemented via 12 Programme components impacting over 5000 MSMEs and 10 clusters  Registered exporters  Aspiring exporters  Export ready enterprises
  • TWELVE (12) PSDP COMPONENTS 3 FOCUS AREAS COMPONENTS/SUPPORT KEY FEATURES PROGRAMMESMACRO •Target Growth Competitiveness •Monitoring of Competitiveness issues to improve business(Policy Level) Enhancing Committee environment; Policy formulation to address issues;Ja’s business environment Targeted researchMESO •PSO Capacity Building Scheme •Cost sharing Grants for organisational strengthening &(Institutional Level) developmentAchieving higher standardsof management in the areaof BDSMICRO (Firm Level) •Cost Sharing Grants for MSMEs •Grant Funding on a cost sharing basisEnhancing enterprise •Enterprise Rating &Upgrading •Rating & Benchmarking of MSMEscompetitiveness and access •Market Penetration •Support to penetrate existing & new Mkts.to financing •Consortia Activities •Funding of multiple workshops & seminars •Back Office Services •Specialised BDS for MSMEs through PSOs •Business Information Points •Provision of value added info & services •Export Centres •Provision of tools/services to develop export capabilities of MSMEs; •Cluster & Sector Initiatives •Facilitating cluster development activities •Corporate Finance Broker •Financial advice and hand holding of MSMEs to access external sources of financing
  • PSDP OPERATING FRAMEWORK – Cluster Led Approach• PSDP contracted JAMPRO & the Jamaica Business Development Corporation (JBDC) to manage various programme components through established clusters;• Both JAMPRO and JBDC were directly responsible for 5 clusters each to ensure: – PSDP objectives were met in the area of cluster development – PSDP funds were fully accessed by individual clusters – Relevant guidance and support were provided to all stakeholders within the cluster
  • OVERVIEW: JAMPRO & The JAMAICA BUSINESS DEVELOPMENT CORP. (JBDC) JAMPRO JBDCMandate JBDC was established in April 2001 by the JAMPRO is Jamaica’s Export and Investment promotion agency formed in Government of Jamaica and is charged with the 1988 to stimulate, facilitate and promote the responsibility of facilitating the development of development of trade and investment in key sectors of the island’s economy. MSMEs in making a contribution to the country’s economy.Staff Complement 88 skilled professionals with expertise in Over 100 skilled professional business advisors, export development, investment and export engineers and industry specialists promotion and business facilitationClient Base Aspiring & Existing exporters ; local and Micro, Small & Medium size enterprises (potential foreign investors & existing)Cluster Experience Cluster Unit established in 2007, to support JBDC has significant experience gleaned from industry-based clusters with a cadre of staff successfully implementing cluster/networking trained in the UNIDO cluster modality. programmes using int’l best practices (UNIDO & Cluster Navigators)
  • PSDP TARGETED INDUSTRY CLUSTERS FISH TOURISM MUSIC WELLNESS TARGET INDUSTRIES: NEGRIL  Agribusiness EGG (TOURISM)  Creative Industries  Tourism  Services VISUAL AND FASHION PERFORMING ARTS AUTHENTIC SMALL GIFTS RUMINANTS & CRAFTS
  • ASSIGNED CLUSTERS BY CLUSTER SUPPORT AGENCY PSDP BUDGET ALLOCATION PER CLUSTER = € 172,000 CLUSTER SUPPORT AGENCY JAMPRO JBDC MUSIC WELLNESS FISH EGG NEGRIL (TOURISM) FASHION VISUAL AND AUTHENTIC GIFTS &PERFORMING ARTS CRAFTS TOURISM SMALL RUMINANTS
  • FASHION CLUSTER VALUE CHAIN Patternmakers Designers/ Merchandisers StylistsAssociations Producersand agencies Technical Distributors support Raw material Fashion Shows suppliers Fashion Retail Accessories Houses (Craft producers)
  • PSDP CLUSTER SELECTION & DEVELOPMENT FRAMEWORK Build interest and Identify and define participation clusters 1.Mobilisation 2.Diagnosis CLUSTER DEVELOPMENT FRAMEWORK 4.Implementation 3.Collaboraive strategy Build commitment and Identify and prioritize mechanisms to challenges and actions implement policies with stakeholders
  • PSDP ASSISTANCE TO CLUSTERS 10 Clusters Support Services Technical Funding/ Services GrantExport Centres/ Enterprise Corporate Target Growth Other Cluster Cost Sharing Business Raring & Back Office Market development Finance Competitiveness Business Information Upgrading Committee Services Penetration initiatives Development PointsIPs (rating services) Broker Services PSDP SUPPORT PROGRAMMES
  • JAMPRO CLUSTER SUPPORT STRUCTURE FISH NEGRIL VISUAL & TOURISM MUSIC (Tourism) PERFORMING ARTS Facilitator Facilitator Facilitator Facilitator Facilitator PSO PSO PSO PSO PSO PMU SupportRelevant JAMPROSupport Depts. Cluster Coordinator 1 - Fish; Negril ;V&PA Cluster Coordinator 2 - Tourism ;Music Cluster andPSDP Support Progs Linkages Dept.Local BSPs Administrative SupportInt’l expertsOther Int’l donorProgs. Dept. Manager Vice President, JAMPRO ( Cluster Support Agency)
  • JAMPRO CLUSTER SUPPORT SERVICES• Assist clusters in completing their diagnostics• Provide ongoing guidance and assistance to clusters in developing and executing their operational plans• Hand holding the cluster through the implementation process• Facilitate monthly monitoring meetings with cluster facilitators/PSO/cluster leadership to plan activities, review outputs and targets & address issues.• Execute cluster development training programmes• Contribute and provide guidance at regular cluster meetings where relevant• Provide mediation advice and intervene where relevant to assist clusters in addressing issues.
  • PSDP IMPACT ON CLUSTERS SUPPORTED PSDP impacted a wide cross section of MSMEs and associated institutions who were members of individual clusters; Cluster membership supported by the Programme was in excess of 1100. Membership per Cluster 6% 6% Authentic Gifts & Craft 7% Jamaica Fashion & Apparel Cluster 16% 4% Jamaica Wellness Cluster Egg Industry Cluster Small Ruminants Cluster Music Cluster (JARIA) 5% The Visual and Performing Arts Cluster 5% The Jamaican Fish Cluster 27%,VPA Negril and Western Jamaica MSME 4% The Tourism Cluster 21%, Music
  • PSDP IMPACT ON CLUSTERS SUPPORTED Cluster Programme - New Products Developed/Enhanced Distribution 9 8 8 8 7 7 6No. of Products 5 4 4 3 2 1 1 1 1 1 0 Small Ruminants Negril MSME Wellness Gift & Craft Jamaica Fish Fashion Cluster Music Cluster VPA & Fashion Clusters
  • PSDP IMPACT ON CLUSTERS SUPPORTED Participating PSOs equipped with cluster development methodology tools and applications Improved Business Practices & Increased profitability of firms assisted Market Diversification: o Fashion cluster has successfully broken into European, Canadian and Caribbean Markets o Main distribution outlet established for Gifts and Craft cluster (Things Jamaican retail chain) o Small ruminants cluster has impacted the local market by increasing their supply of lamb products from .02% to 5% at end of the PSDP Business linkages within and across value chains
  • WHAT HAVE WE LEARNT IN JAMAICA Each cluster is unique, with its own set of challenges defined by several factors including:  membership profile,  industry,  cluster stage  Support system etc. Organizational support infrastructure critical to continued success of clusters Cluster development is an on-going evolving equation Clusters takes on average 5 years to become self-governing and self-financing Adequate financial resources required for some time before clusters can self-sustain Clear commitment and involvement of cluster members required from very beginning of the process
  • Thank You !