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A Summary of PACA Jörg Meyer-Stamer

What is Participatory Appraisal of Competitive Advantage (PACA)? In a narrow sense (PACA Exercise): –A methodology to prepare an action-oriented diagnostic of the local economy to launch a local economic development initiative to assess and refocus ongoing local economic development activities –A methodology to motivate local stakeholders to take an active role in an LED initiative In a wide sense (PACA Project): –a business- and opportunity-driven concept of Local Economic Development

Why “PACA”? P –Participatory motivating + involving local stakeholders A –Appraisal quick, action-oriented diagnostic: Strengths, weaknesses and opportunities in the local economy and what to do about them CA –Competitive advantage creating a differentiated profile of local economy

Fundamental insights underlying PACA For successful local economic development, you need to create opportunities for motivated actors to become visible –you cannot rely only on those who ought to be responsible To involve business in LED, you need quick wins –to overcome distrust –to build motivation –to make sure that business people dedicate some of their scarce time to development efforts You cannot assume that local stakeholders have a concept of competitiveness and competitive advantage

What are the specific features of PACA? Very limited fact-finding effort Limited involvement of external consultants Strict action-orientation Strict market- and business-orientation Looking at opportunities for quick, visible results, not at big issues and main bottlenecks Concept of LED asset: motivated stakeholders, not “economic potentials” Strong involvement of private sector Motivating and mobilising the private sector for LED Aligning stakeholders to the goal of creating a local competitive advantage

What is the sequence of activities in a PACA? Prepa- ration: * Orga * Ad- vance info Kick- off Wks Results- Workshop: Diagnosis + Proposals Interviews Mini-workshops Pre- sen- tation event Imple- mentation PACA-Project PACA-Exercise (2-3 weeks) Fieldwork (1-2 weeks) Hy- po- the- sis Wks Way for- ward Wks

Who is involved in a PACA exercise? A “Champion” or “Host” who suggests and coordinates the PACA –provincial or local government agency, Business Chamber, NGO, somebody else Other local organizations who take an active role –financing –making staff available for the PACA Team The PACA Team Various local stakeholders who participate in the kick- off workshop, interviews, mini-workshops and the presentation

What is the PACA Team? external facilitators who are familiar with the PACA method and LED –to introduce a fresh view at the local reality –to transfer their know-how to local members of the team local members –for instance: professionals from the local business promotion agency, the local Chamber, the local university –not too young, too junior –with experience in economic promotion and in dealing with private business

What does the kickoff workshop look like?

What about the fieldwork? Formats: Qualitative interviews (“conversation”) Mini-workshops Tools: Guideline (always) Mapping (sometimes) Life-line (sometimes) Diamond, 5 Forces, Interaction Matrix,... Mesocard Brainstorming on possible action –if participants are strongly motivated

Field work: Typical interview situations

What does a mini-workshop look like?

Diagnostic, proposals, presentation Results workshop to elaborate diagnostic and proposals = 1-2 day exercise of the PACA Team Presentation Event: Immediately communicate the results to the local audience –presentation of findings and proposals –Mesocard-based discussion –invitation to audience to become a Champion immediate Way-forward-Workshop with local champions to define priorities, activities and responsibilities for implementation and monitoring implementation by local champions

How the results workshop looks like in practice

What the Presentation Event looks like

The PACA Exercise Value Chain Hypo- theses Work- shop Kick-off Work- shop Field- work: Inter- views + Mini- work- shops Results Work- shop Presen- tation Event Way- forward Work- shops Reflection + communication in the PACA Team Communication with stakeholders / potential ChampionsCommunication with political role playersDocumentation of information, work on hypotheses

What about the follow-up? Implementation of activities by local stakeholders –monthly to bi-monthly visits of external PACA Team members to facilitate and troubleshoot After months: workshops for evaluation and definition of further activities, possibly facilitated by external facilitators –option: More focused PACA Exercise, looking at one sector, cluster or value chain

What is Local, what is Regional? City quarter Neighborhood City Municipality Major urban agglomeration Sub- provincial region Province State Elements of Subsector Cluster / value chain Diversified economy And where to apply PACA? Local EconomyRegional Economy     

Until August 2004, PACA has been applied in more than 70 locations in 15 countries, among others: Level of economic develop- ment Size of local economy Lampang, Thailand Korat, Thailand Chiang Rai, Thailand La Vega, Dom. Republic El Oro, Ecuador Picota, Peru Mafra, Brazil São Bento do Sul, Brazil Jaraguá do Sul, Brazil Brusque, Brazil Blumenau, Brazil Hasalaka, Sri Lanka Novi Knezevac, Serbia Nova Crnja, Serbia Kabokweni, South Africa Queenstown, South Africa Ilembe, South Africa Hazyview, South Africa

Which are the critical steps in a PACA Exercise? Prepa- ration: * Orga * Ad- vance info Kick- off Wks Results- Workshop: Diagnosis + Proposals Interviews Mini-workshops Pre- sen- tation event Imple- mentation PACA-Exercise (2-3 weeks) Fieldwork (1-2 weeks) Hy- po- the- sis Wks Way for- ward Wks Difficult steps: Support by experienced PACA facilitator advisable Very difficult steps: Support by experienced PACA facilitator mandatory

Examples of Activities Resulting from a PACA Exercise in Serbia Implemented LED Proposals in Novi Kneževac: Setting-up of an LED unit in the municipality Presentation of the Micro-Finance Bank [short-term impact: 5 loans approved] Organisation of an information seminar for farmers by FAO Reorganisation of the ‚Green Market‘ Organisation of a Song Festival Introduction of a ‘Walking Cinema’

What has been the outcome elsewhere? Some examples: Mafra, Brazil: More than 1,000 smallholder families increase their their income by more than 100% Lampang ceramics cluster, Thailand: Study tours to India and Italy Joint export initiative to China Hazyview tourism cluster, South Africa: Local businesses collaborate to develop new tourism products / packages

How to launch local and regional economic development initiatives? The PACA view Look at strengths instead of weaknesses –identify potential for unique advantage –Porter perspective: how to turn disadvantage into unique advantage? Porter argument: strategy = a unique advantage that cannot easily be replicated Go for activities with a quick, visible impact –don’t get stuck in endless strategizing –don’t start by addressing the biggest of all challenges

So what comes after PACA? Option 1: More PACAs –to monitor, energise and re-focus ongoing activities –to initiate more intense development activities in specific clusters or value-chains –to constantly adjust an LED effort to new opportunities and necessities Option 2: From PACA to local strategy –PACA leads to alignment, sophistication and motivation of local players –Players agree to formulate an explicit LED strategy

More detailed structure of a PACA Project Build-up PACA Exercise Activity 1 Activity 2 Activity 3 Activity 4 M+E PACA Cluster PACA

Thank you for your attention!