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Director of Duke CGGC, Gary Gereffi, gave this presentation at the Regional Competitiveness and Growth Center (RCGC) launch event in Astana, Kazakhstan.
As part of Duke CGGC collaboration with the National Analytical Center (NAC), an affiliate of Nazarbayev University in Kazakhstan, Duke CGGC Director Gary Gereffi presented an overview of global value chain and development. The presentation included a section dedicated to value chains and economic diversification in Kazakhstan.
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Duke CGGC researcher Lukas Brun leads a guest lecture for Duke University Professor Bora Park’s “The Politics of Market Competition in a Global Economy” class. The lecture covers the work of Duke CGGC and the GVC framework.
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Improving competitiveness in South East Europe's food and beverage sector
1. Next Generation Competitiveness Initiative
First Meeting of the Food and Beverages
Processing Expert Group
Paris, March 4th 2014
With the financial assistance
of the European Union
2. Agenda
1
Provide project context and explain NGCI
2
Propose and explain methodology
3
Adopt mandate for the Food and Beverages Processing Expert
Group
4
Decide on work plan and key activities for 2014
2
3. The Organisation for Economic
Co-operation and Development (OECD)
Who we are
The OECD is an international organisation
with 34 member countries:
•
USA, Canada, Japan, Australia, New
Zealand, Europe (20 of EU-28,
Switzerland, Norway, Iceland)
•
Chile, Mexico, Israel, Korea, Turkey
…and a growing number of key partners
•
Brazil, Russian Federation*, India,
Indonesia, China, South Africa, Colombia*
totaling more than 80% world GDP and 64%
of the world’s population.
The OECD’s mission is to promote policies
that will improve economic and social wellbeing
*in accession process
What we do
Sharing of good policy practices, peer review and
policy dialogue in:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Anti-corruption
Competition and Financial markets
Corporate governance
Development
Economic growth
Education
Environment
Employment and labour markets
Governance
Health and social care
Industry and Entrepreneurship
Investment
Private Sector Development
Regional, Urban and Rural development
Science, Technology and Innovation
Tax policy
Trade, etc.
Setting international standards on domains
ranging from agriculture and tax to the safety of
chemicals
3
4. The OECD Investment Compact for South
East Europe
Objectives
To support governments of the region to improve their investment climate and
foster private sector development
Geographical Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Kosovo*, FYR Macedonia,
Republic of Moldova, Montenegro, Romania and Serbia
coverage
1
2
Political support
Ministerial
Conference
SEE 2020 Vision
3
Policy dialogue
Regional working
groups:
•
•
•
Innovation
Human capital
Competitiveness
Policy
assessment
Competitiveness
Outlook
SME Policy Index
4
Policy
prioritisation
Next Generation
Competitiveness
Initiative sector
component
SEE 2020
national policy
prioritisation
* This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on the
Kosovo declaration of independence. Hereafter referred to as Kosovo.
5
Support for
implementation
Regional
Competitiveness
Initiative pilot
projects
EDIF Triple Helix
Partnership
projects
4
5. The Next Generation Competitiveness
Initiative (NGCI)
Funding and
implementation
Geographical
coverage
• Project funded by the European Union
• Implemented by the OECD Investment Compact
Albania, Bosnia and Herzegovina, Croatia, Kosovo*, FYR
Macedonia, Montenegro and Serbia
•
Objectives
Rationale for a
sector focus
•
•
Enhance competitiveness by addressing key constraints to
growth in high-potential sectors
Foster co-operation across the SEE region
Support enhanced value creation
• Allows to generate greater interest and involvement from the
private sector
• Useful approach to understand obstacles to doing business
• With limited resources, a sector-specific approach can have
impact
5
6. The NGCI sector work encompasses
five project steps
Current/future work focus
1
•
Identification of highpotential sectors for
further analysis
Analysis of main economic
sectors regarding:
- Economic attractiveness
(turnover, growth,
employment, exports,
RCA, FDI)
- Potential for regional cooperation (supply chain
complementarities)
- Potential for increasing
value added (patents,
innovation clusters)
Outcome:
•
2 high-potential sectors
selected: Food and
Beverages Processing;
Tourism
2
Initial sector analysis and
identification of policy
barriers to sector
development
• Initial analysis of priority sectors
• Identification of strengths,
weaknesses, opportunities and
threats
• Identification of growth
constraints and prioritisation of
policy barriers
Development of policy recommendations to
foster sector development
3
Addressing policy barriers to sector development
• Review of international good practices addressing
priority policy barriers
• Development of recommendations
4•
Increasing value added
Development of strategy to increase value added
• Development of recommendations to transfer key
competencies from declining sectors to FBP
5
Outcome:
• Prioritisation of policy barriers
to sector development
Regional integration of selected (sub-)supply
chains
• Development of strategy to better link selected subsupply chain stages in SEE region
• Development of strategy to better tap synergies across
selected supply chains
Outcome:
• Development of action plan and definition of pilot
actions for three workstreams
The Food and Beverages Expert Group (FBEG) as the high-level forum for
guiding and supporting the work effort
6
7. In light of their development potential, SEE Food and
Beverages Processing as well as Tourism have been
chosen for the NGCI Sector Work
1
2
1
Turnover
Employt.
Exports
RCA
World
growth
FDI
VC
complem.*
Patents
Basic metals
XXX
XX
XXX
X
XXX
XX
XX
XX
XXX
XX
XXX
XX
XXX
XX
X
XXX
X
Coke, petroleum
XX
X
XXX
XX
X
XXX
X
Electrical machinery
XX
X
XX
XXX
XX
XX
X
XX
XX
Fabricated metal products
XXX
XXX
XX
XXX
XXX
XX
XX
X
XX
Food, beverages and tobacco
XXX
XXX
XXX
XXX
XXX
XXX
XX
XX
XXX
ICT manufacturing
X
X
X
X
X
X
X
XXX
Machinery and equipment nec
X
XX
XX
XX
XX
X
X
XXX
Motor vehicles, trailers
X
X
X
X
XX
XXX
X
XX
Rubber and plastics
XX
XX
XX
X
XXX
X
X
X
Textiles, apparel and leather
XX
XXX
XXX
XXX
X
XXX
X
X
XX
X
XX
X
X
XX
XXX
XXX
XXX
XXX
XXX
X
XXX
XX
XXX
X
X
XXX
1
X
Chemicals inc. Pharmaceuticals
3
Clusters
Selected results from the analysis
1
Sectors
Wood and wood products
Travel/ tourism
ICT (services)
X
X
X
* There are 2 crosses when SEE economies cover at least 2 stages of the supply chain
Sector performance/potential among all SEE sectors XXX= top third; XX= middle third; X=bottom third
X
XXX
XX
7
8. Example Ukraine – to improve access to finance for agribusiness SMEs a credit guarantee scheme is being
created
1
2
3
1
1
1
SHORT TERM ACTIONS
What is the objective of the
scheme?
1
Who does the scheme target?
• Objectives
• Financial Sustainability
MISSION
2
How to identify partner
banks?
• Identify relevant segments
• Eligibility criteria
TARGETING
3
PARTNERNSHIP
• Identification of partner banks
MEDIUM TERM DIRECTIONS
How to cover administrative
costs?
How to assess risks?
4
• Link to risk
• Average fees
PRICING
5
How to set up, run and
supervise the scheme?
RISK
MANAGEMENT
6
Credit
guarantee
scheme
currently
being
implemented by
Ukrainian
National
Bank
• Coverage ratio
• Payment
• Monitoring
OPERATIONS AND
GOVERNANCE
• Supervision
• Roles
8
9. The FBEG work effort will cover the entire food and
beverages processing value chain with a focus on food
and beverages processing
Illustrative
Primary Focus: Processed
foods and beverages
Simpl.
valuechain
Examp.
of Actors
Farm Inputs
• Feed
suppliers
• Veterinary
services
Examp.
of
products
• Genetics,
breeding
stock
• Medicinery
• Supplies
• Farm
equipments/
machines
• Fertilisers
Farming and
production
• Commercial
farms
• Individual
farms
• Cooperatives
First
Processing
• Food
Processors
Second
Processing
Third
Processing
• Food Processors
• Production of
grain
• Flour
production
• Pasta, Bread
• Production of
fruit and
vegetables
• Syrop
production
• Beverages
• Poultry, beef,
pork, sheep
meet
• Fresh and
refrigerated
meat
• Steaks
• Production of
raw milk
• Fresh milk
• Milk powder
and yogurt
• Retailers
• Food
services
• Export
• Retail
services
Increasing
focus on
sub-supply
chains for
specific
work
streams
(e.g.
regional
supply
chain integration)
• Meat based
meals
• Cheese,
butter, Ice
creams
Sources: National Analytical Center (NAC) Kazakhstan, KazAgroMarketing, OECD analysis
• Glucoses and
fermented
products
Distrib.
and retail
9
10. Mandate of the SEE Food and Beverages
Processing Expert Group
Tasks
• Identifying challenges and
policy barriers to
competitiveness of SEE food
and beverages processing sector
• Developing policy
recommendations and pilotscale actions to improve
competitiveness of food and
beverages processing sector
• Reviewing and developing
sector-specific measures in
food and beverages processing in
context of SEE 2020 Strategy
implementation
• Formulating sector-specific
recommendations and
action plans addressed to policy
makers in SEE region
Composition
For approval
Organisation & Reporting
• FBEG to consist of two
representatives from public
administration and two
private sector
representatives from each SEE
economy
• SEEIC to co-chair the FBEG
meetings
• Public administration
representatives to encompass
official participating in
SEEIC Working Group on
Competitiveness and
representative of Ministry in
charge of food and beverages
processing
• FBEG Co-Chairs to prepare
minutes of the meetings
• Private sector to be
represented by sector-specific
associations/clusters and
company representatives
• RCC Secretariat and OECD IC to
jointly prepare meetings of
FBEG
• FBEG, with agreement of SEEIC,
to set up sub-groups to
examine specific questions
• FBEG to meet two times
annually
• FBEG established for duration
of two years
• FBEG to invite other regional
partners, organisations and
stakeholders to attend the
meetings
10
11. Upcoming activities for the FBEG – your
involvement is essential
Q1 2014
Key activities
Initial analysis of the food
and beverages processing
sector
Identification and
prioritisation of
barriers to sector
development
Review of international
good practices in
addressing barriers to
sector development
Q2 2014
Development of strategy
to transfer competencies
from slow-growing
segments of the SEE
economies to the food
and beverages processing
sector
Development of
strategy to increase
value added in FBP
Key meetings
Proposal for pilot projects
1st meeting of the
FBEG: barriers to
sector development
– 4 March
2nd meeting of the
FBEG: increasing
value added in food
and beverages
processing –
beginning of July
Q3 2014
Identification of levers
for creating synergies
between different food
and beverage subsupply chains
Q4 2014
Development of
recommendations
addressing key barriers to
sector development
Proposal for pilot projects
Identification of levers
for creating synergies
with other supply
chains
Explorative surveys
involving FBEG
3rd meeting of the
FBEG: validation of
key
recommendations
+ pilot projects –
mid November
11
12. Explorative surveys will be supported by an
interactive online tool requiring the FBEG’s
involvement
Explorative online surveys using Futurescaper to:
•
gather expert input from larger groups and tap into knowledge
networks
•
facilitate expert interaction to identify levers for value creation
and supply chain integration
•
prioritise and rank recommendations to maximise impact
•
create visual summaries of expert inputs and recommendations
!
OECD to reach
out to FBEG to
participate in
explorative
surveys
•
Futurescaper question based online platform - Example
•
FBEG to
leverage
individual
networks to
involve
additional
experts in to
explorative
surveys
12
13. Further objectives of this meeting
• Identification of strengths, weaknesses, opportunities and threats in
the SEE food and beverage processing sector
• Identification of main barriers to the development of the SEE food
and beverage processing sector
• Agreement on next steps
13