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RFCD 2011: Dr. Tamal Sarkar: Foundation for MSME Clusters: Cluster Development and Poverty Alleviation


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RFCD Conference @ Arthur Lok Jack GSB - November 2011

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RFCD 2011: Dr. Tamal Sarkar: Foundation for MSME Clusters: Cluster Development and Poverty Alleviation

  1. 1. Cluster Development and Poverty Alleviation
  2. 2. Types of clusters involved <ul><li>Handicrafts and Handlooms </li></ul><ul><li>Rural cluster </li></ul><ul><li>Other micro enterprise clusters </li></ul><ul><li>Agro based clusters </li></ul><ul><li>Clusters in the making in the above areas </li></ul>
  3. 3. Impact on Selection Criteria and Diagnostic Study <ul><li>Selection process to give more weightage to </li></ul><ul><li>Presence of stakeholders below poverty level </li></ul><ul><li>Highly labour intensive production </li></ul><ul><li>Presence of women in labour force/entrepreneuship </li></ul><ul><li>Presence of vulnerable/minority community </li></ul><ul><li>Diagnostic study to include Participatory Appraisal to help the poor speak </li></ul>
  4. 4. Impact on Implementation <ul><li>To be coordinated by a highly capacitated individual/ organization </li></ul><ul><li>In a sequenced approach based on the fulcrum activity, which is generally market linkage </li></ul><ul><li>Training largely through business linkages </li></ul><ul><li>Simultaneously put system in place </li></ul><ul><li>Continuous handholding and dispute resolution </li></ul><ul><li>Start with the not so poor and then move to the poorest </li></ul><ul><li>Include activities beyond economic issues – gender, health, education: empowerment </li></ul><ul><li>Critical role of value chain partner – sustainability angle </li></ul>
  5. 5. Monitoring and Evaluation General Cluster Programme Poverty Alleviation Programme New market created Increased income of the poorest Enhanced export Enhanced turnover of the poorest New product range Enhanced capability of the poorest Enhanced investment Enhanced wages Women empowerment
  6. 6. Specialized Issues <ul><li>Takes its time – 3 to 5 years for impact </li></ul><ul><li>Organic evolution needs flexibility in resource usage and time lines, quick fixes can ruin empowerment issues and thus often need patience </li></ul><ul><li>Percentage support fund required is much higher as compared to normal cluster programme </li></ul><ul><li>Ensure that marginal groups are not losers in this growth process </li></ul><ul><li>Higher time investment in creation of interest group and their sustainability </li></ul>