1. desarrollo económico del estado de chihuahua a.c. Can sector-specific PPDs be fair to the economy as a whole? and, is there chance for spill over to wider issues? desarrollo económico del estado de chihuahua a.c. Alonso Ramos Vaca aramos@gruposiga.com.mx Chihuahua, México Paris, 1-2 February 2006 www.publicprivatedialogue.org, WORKING GROUP 7

2. desarrollo económico del estado de chihuahua a.c. Chihuahua: a long tradition in PPD DESEC  Investment attraction  Physical infrastructure CHIHUAHUA XXI CENTURY  Cluster development  Economic infrastructure CODECH  New dialogue mechanism  Regional councils 1973 1990 2004

3. desarrollo económico del estado de chihuahua a.c. Can sector-specific PPDs be fair to the economy as a whole? is there chance for spill over to wider issues? Yes, Overall economic impact Infrastructure development Cross-culturization Social Capital development but… Risk of over-specialization Complacency (stagnation)

4. desarrollo económico del estado de chihuahua a.c. Overall Economic Impact Job creation Extended training Non-specific supplier development 668 615 563 514 498 461 453 425 475 525 575 625 675 92939495969798 Jobs x1000 City Jobs in manufacturing Los Angeles369,710 Chicago334,710 Juárez/ El Paso230,001 Detroit225,010 Source: US Department of Labor, Twin Plant News, 2005. Permanent Jobs in the State of Chihuahua.

5. desarrollo económico del estado de chihuahua a.c. Infrastructure development Infrastructure initiatives are usually cross-cutting, with impact on several clusters The cycle ‘cluster-infrastructure’ starts with infrastructure development Local Suppliers Leading Export Firms Selling products or services out of the region Human Resources Technology Financial Capital Business Climate Physical Infrastructure Economic Infrastructure of raw materials, components and services Human Resources Foreign Investment New Technologies New Partnerships Dynamic Clusters Economic Infrastructure

6. desarrollo económico del estado de chihuahua a.c. Cross-culturization Q1 ISO9000, Quality awards 6  TQM Benchmarking and model setting New work culture and ethics Global management practices Quality and productivity

7. desarrollo económico del estado de chihuahua a.c. Social Capital Development 1.New dialogue mechanisms 2.Shared vision and long-range orientation 3. Improved international image 4.Community Learning 5.Trust Planning Process ideas Human Factor actions

8. desarrollo económico del estado de chihuahua a.c.  Problems and limitations  1.Risk of over specialization (“all eggs in one basket”) 2.More than one cluster is needed for efficient cross- cutting initiatives 3.Complacency & stagnation (linger too long in a past-successful model) HUMAN RESOURCES TECHNOLOGY PHYSICAL INFRASTRUCTURE BUSINESS CLIMATE FINANCIAL RESOURCES Services Transport Tourism Business Services Automotive Electronics Textiles Natural Resources Light Manufacturing Forest Products Materials Agribusiness Services Trade Market Analysis Elements of Production High Low Value Added Today Future Design Materials & Component Procurement Sales & Distribution Basic Production Dynamic model