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Economic Development and ABCD
The mindset….
“All of life is interrelated. We are all caught in an inescapable network of mutuality,
tied to a single gar...
Key barriers for economic development
globally and in South Africa
Many of these issues could be resolved through simply s...
Development issues are interwoven and complex,
making impact dependent on a range of factors
Enterprise
development
Suppli...
Creating Shared Value begins with
understanding the context from multiple sides
COMMUNITY DRIVERS
•  Jobs
•  Training and ...
Our approach: based on a sustainable livelihoods,
asset driven model
Simanye’s approach begins with a focus on assets (fro...
The key to creating sustainable impact
Clear goals and objectives
Adapting to the context and addressing key needs as well...
Community engagement process
Respect
Listen, understand, learn
Facilitate and educate, but do not impose or force
The comm...
ABCD	
  
What is ABCD?
“They will use what they have to secure what they have not”
- Rev. Dr. Moses Coady
•  Asset Based Community ...
Needs versus Assets
NEEDS BASED ASSET BASED
•  Focuses on needs and what is missing •  Focuses on what is already there an...
ABCD overview: process
Day 1
•  Positive stories
•  Assets
•  Associations
•  Power
Day 2
•  Community
economic
analysis
•...
ABCD overview: process
Day 3
•  Transect
walks
Day 4
•  Action
planning
•  Success
indicators
Source:Simanye
The leaky bucket and demonstrating the
multiplier effect
Rural community
Assets: tree cutting skills
trees
Regional factor...
Value	
  Web	
  and	
  Microfranchising	
  
And after ABCD? The Value Web!
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Simanye asset based development paradigms

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Holistic economic community development best practice, using asset-based models as a foundation for sustainable and effective development.

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Simanye asset based development paradigms

  1. 1. Economic Development and ABCD
  2. 2. The mindset…. “All of life is interrelated. We are all caught in an inescapable network of mutuality, tied to a single garment of destiny. Whatever affects one directly affects all indirectly” - Martin Luther King Jr. (1929-1969)
  3. 3. Key barriers for economic development globally and in South Africa Many of these issues could be resolved through simply starting with an asset based approach… •  Lack of ownership of communities and lack of buy-in •  Dependence and entitlement of communities, from lower self-esteem and lack of control •  Non-sustainable projects (in both the impact and financial sense) •  Lack of understanding of the local culture and community structures as well as how success is defined by local communities •  Finding and addressing real root causes is difficult, leading to projects that do not tackle the real underlying issues •  Lack of access to opportunities and finance – and distance from formal or sophisticated markets •  Political instability, crime, and violence all compound other problems •  Corruption and misappropriation of development funds Source:Simanye
  4. 4. Development issues are interwoven and complex, making impact dependent on a range of factors Enterprise development Supplier development Worker productivity Job Creation Regional development Health Education Infrastructure Food security It is difficult to address higher end goals (such as larger enterprise development) without looking at how root causes (poor health, lack of education) have led to the problems in the first place. Solutions must be holistic and focused on the most salient issues in order to create real change. Source:Simanye
  5. 5. Creating Shared Value begins with understanding the context from multiple sides COMMUNITY DRIVERS •  Jobs •  Training and skills development •  Business support •  Procurement opportunities and supply chain access •  Financing •  Health •  Education •  Food security •  Infrastructure GOVERNMENT DRIVERS •  Promote business growth and job creation •  Keep citizens healthy and happy •  Ensure socio-economic development •  Create political stability •  Integrated Development Plan (IDP) alignment of initiatives CORPORATION DRIVERS •  Profitable operations and shareholder value •  Legislative and policy compliance •  Healthy and productive staff •  Saving costs, reducing lead times and increasing quality in procurement •  Social licenses to operate •  Good public image and relations •  Infrastructure Source:Simanye
  6. 6. Our approach: based on a sustainable livelihoods, asset driven model Simanye’s approach begins with a focus on assets (from social to financial and beyond), and starts with the premise that communities know themselves best. Helping the communities to mobilise their own assets and consider multiple factors to address issues holistically therefore leads to ownership, impact and sustainable development. Sustainable Livelihoods Framework: DFID Source:Simanye
  7. 7. The key to creating sustainable impact Clear goals and objectives Adapting to the context and addressing key needs as well as responding to key assets Considering economic, environmental, social and developmental variables Bottom-up, community driven and collaborative processes Partnerships for success Innovation and research Focus on cost efficiency and self-sustainability of projects Source:Simanye
  8. 8. Community engagement process Respect Listen, understand, learn Facilitate and educate, but do not impose or force The community and local factor is the single greatest factor – above economic, technical or other considerations Source:Simanye
  9. 9. ABCD  
  10. 10. What is ABCD? “They will use what they have to secure what they have not” - Rev. Dr. Moses Coady •  Asset Based Community (Driven) Development (ABCD). •  ABCD was developed by McKnight and Kretzmann (1993) in ‘Building Communities from the Inside Out’ •  Further developed by the COADY International Institute of St Xavier University in Canada. •  In South Africa, ABCD is promoted in collaboration with Gordon Institute of Business Science (GIBS) and also implemented by the Department of Social Development •  The focus is on assets rather than needs, as well as letting communities be the drivers of their own development process thus leading to ownership and sustainability Source:Simanye
  11. 11. Needs versus Assets NEEDS BASED ASSET BASED •  Focuses on needs and what is missing •  Focuses on what is already there and what person or community has •  Intrinsically negative as regardless of how developed a community it will always have something missing •  Intrinsically positive – no matter how bad things are there will always be assets •  Top-down, forced solutions •  Bottom-up organic solutions •  Use of external experts •  Use of local knowledge/expertise and outside experts (mutual learning) •  Dis-empowering and creates low-self worth •  Empowering •  Leads to dependence and entitlement mind- set •  Leads to increased sustainability through ownership of the process by the community •  Not conducive to partnerships •  Conducive to partnerships •  Not tailored as solutions are not context specific •  Context specific solutions •  Need for continued external interventions •  Community becomes the long term manager of own development Source:Simanye
  12. 12. ABCD overview: process Day 1 •  Positive stories •  Assets •  Associations •  Power Day 2 •  Community economic analysis •  Mapping Source:Simanye
  13. 13. ABCD overview: process Day 3 •  Transect walks Day 4 •  Action planning •  Success indicators Source:Simanye
  14. 14. The leaky bucket and demonstrating the multiplier effect Rural community Assets: tree cutting skills trees Regional factory Assets: factory and tools, wood-work and carpentry skills Big city Assets: mass markets, brand, business skills, scale Sell: R 20 / pile Profit margin: R 20 Sell: R 100 / chair Profit margin: R80 R 220 / chair Profit margin: R120 Source:Simanye
  15. 15. Value  Web  and  Microfranchising  
  16. 16. And after ABCD? The Value Web!

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