What are the Results of PACA ® ?

What is PACA? The origin and core of PACA: –a rapid appraisal methodology to diagnose a local economy to identify opportunities for LED activities with a quick impact =PACA Exercise The PACA approach to LED: –LED as an opportunity-driven and business-oriented development initiative to create a favourable environment for entrepreneurs and companies to create income and jobs at the local level =PACA Project

Short-term results in Thailand, 2002 Lampang Ceramic Group jointly entered new markets in China and companies are selling now to Kunming Lampang fundraised jointly for cluster development program with IFCT Lampang ceramic and tourism sector started cooperation and launched special award for hotel/restaurants which use Lampang ceramics Lampang started tourist project: Visit of Ceramic Factory

Short-term results in Thailand, 2002 Garment Sector Chiang Mai started joint raw material sourcing Furniture Group Chiang Mai started group for lobbying against regulations Chiang Rai tourism group organized itself and developed joint strategy Governor Chiang Rai promotes PACA reports as guideline for all local government departments

Examples of Activities Resulting from a PACA Exercise in Serbia, 2002/2003 Implemented activities 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’

Short-term activities in El Oro, Ecuador, 2003/2004 Reducing harbour fee by 70%  more fishermen registered  cooperation between fishermen and harbour captain to fight piracy “Benchmarking”: Visits to fishery clusters in Ecuador and Peru Training to maintain outboard engines Controlling and standardising the weights used by wholesale buyers Arts and craft training for wives

Short-term results of the PACA Exercises in Bima, Dompu and Boyolali (Indonesia), 2003/2004

Boyolali Marketing improvement –in the Selo tourism sector –in the furniture and metal sector Stronger involvement in the Development Forum Strengthening of local and regional networks Improving the planning and analytical capacities of local decision makers Inspiring a new partnership for the Boyolali economy.

Bima and Dompu (1) I.Establishment of a "Distribution and Marketing Center" (DMC) I.idea existed long before the PACA Exercise II.dynamics of the PACA process strongly accelerated the realization of the DMC III.Main objective of DMC: I.to directly link rural producers to markets II.to provide technical training in order to secure a sufficient quality, quantity and continuity of local products

Bima and Dompu (2) Strengthening of organizational structures within the rural producer groups –creation of a 'Salt Division' to coordinate support measures for the salt production more effectively, linking the local salt industry with rural salt producers, the regional economic development board, the department of trade and industry, and the district's development planning board. –First tangible results joint organizational training session for salt producers ongoing infrastructural improvements such as water channels and a new iodine machine.

Bima and Dompu (3) Bimanese textile manufacturers –have been able to join the national handicraft association –have jointly produced a promotion booklet on their unique designs –local craftswomen have been visiting provincial and national product fairs and established a stronger retail network

Bima and Dompu (4) Economic forums in the Bima and Dompu districts have been strengthened –members of the forum were trained as PACA facilitators and –were able to gain conceptual knowledge of systemic competitiveness –improved their facilitation skills during the various workshops and interviews The PACA exercise raised the legitimacy of the economic forums to give recommendations to the district governments and parliaments.

Examples of activities after PACA Exercises in various Latin American locations

Identify business opportunities In the poorest regions you will find lots of unexploited business opportunities -- Examples: Coffee-restaurant at the gate of an enterprise zone Local telephone shop offers to order products from distant places

Stimulating direct commercialisation and exports Cattle Farmers Association sells fresh milk via local restaurants Open the export channels of an established export company for other local producers

Turn disadvantages into competitive advantage (1): Deforestation Massive cutting compromises the sustainability of a wood-working cluster in the Peruvian Amazon Local action: Local wood industry propose to invest the wood-cutting-tax in the reforestation of the local woods Initiatives to use secondary forests (non-traditional wood varieties) Foundation of a local firm to sell selected seeds

Turn disadvantages into competitive advantage (2): Security The lack of security is a competitive disadvantage of many locations in Latin America Local action : Professionalise business self-help and create a private security firm Offer a high-security business park to investors and local businesses

Use available biomass for profitable activities In each location we find unused resources: Use natural compost to substitute chemical fertilisers Collect and select wood processing waste to sell to artisans and to use as source of energy Use maize and rice waste as fodder and source of energy

Stimulating local demand Many products are not consumed in the location where they are products. The producers are not aware of the needs of the final customers. Activities to stimulate local demand: Fairs and markets with local products (“The Orange Festival”) Distribute booklets with new recipes to local restaurants Contest around recipes for meals based on local inputs

Long-term results in Mafra, Brazil, Connecting a local NGO (introducing new production methods and products to smallholders) with local supermarkets Local supermarkets depositing liquid funds at local agricultural credit cooperative, facilitating the expansion of NGO‘s work Introducing additional products and processing, involving more producers Around 1,000 families benefiting from the scheme, visible increase in welfare Skilled youngsters stay at family farms

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