Project Title

APEC Forum: Promoting Stakeholder’s Building Capacities in Clusters and Local Economic Promotion Instruments 

Project Year

2016   

Project Number

SME 09 2016A 

Project Session

Session 2   

Project Type

Standard 

Project Status

Project in Implementation   
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Project No.

SME 09 2016A 

Project Title

APEC Forum: Promoting Stakeholder’s Building Capacities in Clusters and Local Economic Promotion Instruments 

Project Status

Project in Implementation 

Publication (if any)

 

Fund Account

APEC Support Fund 

Sub-fund

ASF: Micro, Small and Medium Enterprises (MSME) 

Project Year

2016 

Project Session

Session 2 

APEC Funding

122,500 

Co-funding Amount

39,400 

Total Project Value

161,900 

Sponsoring Forum

Small and Medium Enterprises Working Group (SMEWG) 

Topics

Small and Medium Enterprises 

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Peru 

Co-Sponsoring Economies

China; Korea; Mexico; Papua New Guinea; Thailand; United States 

Expected Start Date

01/03/2017 

Expected Completion Date

31/12/2017 

Project Proponent Name 1

Hernan Zeballos (change of PO wef 7 April 2017) 

Job Title 1

Director of Productive Development 

Organization 1

Ministry of Production 

Postal Address 1

Calle Uno Oeste Nº 060. Urb. CORPAC, San Isidro. Lima 11, Peru 

Telephone 1

51-987107182 

Fax 1

51-1 6162222 

Email 1

hzeballos@hotmail.com 

Project Proponent Name 2

Not Applicable 

Job Title 2

Not Applicable 

Organization 2

Not Applicable 

Postal Address 2

Not Applicable 

Telephone 2

Not Applicable 

Fax 2

Not Applicable 

Email 2

Not Applicable 

Declaration

Hernan Zeballos 

Project Summary

SMEs are key engines and sources for economic growth in APEC economies.  Therefore, business capacity building on SMEs is necessary to take advantage of opportunities to engage them into international trade flows and commercial investment contracts.  Also, it is important to foster institutional or social capital capacities for designing and implementing public policies in order to adopt a comprehensive and competitive approach within APEC economies, sharing best practices for identifying economic potentialities and projects/programs aiming the promotion of Global Value Chains, clusters, among other business schemes as significant tools for economic developing in Asia-Pacific region.

In the framework of this project, there will be a forum; it will be scheduled for two days, September 21-22 2017, in Lima, Peru.  During this event, there will be presentations by international speakers, who will share and discuss best practices, knowledge and strategies for the promotion of SMEs competitiveness at the meso and micro level.  The audience can share experiences and establish partnerships.  In addition, government officials will be able to learn from best practices for promoting public policies that generate a competitive environment in APEC economies.

Relevance

SMEs play a vital role for economic growth, social inclusion, and development in local economies. They account for over 97 per cent of all enterprises in every APEC economy and they contribute in dynamizing economic activity and job creation (SMEWG, 2016). As well as, 60% of world trade in 2013 was conducted through international networks (outsourcing and offshoring) and global value chains. The participation of developing economies in global value chains increased from 22% to 42% between 1990 and 2013 (World Bank). Only in China, insertion in value chains has grown 6 times in the last 15 years (World Bank). 

However, there are significant gaps in the levels of integration of SME in global value chains in different regions of the world. For example, Mexico and Central American economies are strongly linked to the USA global value chains.  Similarly, South American economies are mostly integrated into Asian production networks (ECLAC). 

In addition, SMEs face many difficulties when trying to engage in international trade to be integrated in global value chains schemes: shortage of capital, lacking of managerial capacities, poor qualification of human capital and limited practice and knowledge in business integration contracts (such as clusters, consortiums, licensing and franchising). 

Thus, a mayor benefit to developing economies from this project is to point out the relevance of strategic tools aiming the participation of SMEs in Global Value Chains, through two channels:

a)  SMEs: access to foreign markets, capital, technology, knowledge and quality standards. Also, companies should specialize in economic activities and procedures of high added value in order to export / subcontract to leading global companies.

b)  Employees: Workers must acquire relevant managerial skills and know how (learning by doing). 

Another mayor benefit is to share international experiences about how economies and businesses shifted from a comparative advantage strategy basis to a competitive advantage one. 

Therefore, a local mesomicro environment conducive to SMEs’ growth and sustainability is needed. As noted by the Organization for Economic Co-operation and Development (OECD), one of the main drivers of growth is entrepreneurship, innovation and R&D.  In this sense, governments can provide an important stimulus for MSMEs development. It is very important to point out that local and regional governments are much closer to the conditions and bottlenecks that affect enterprises, and they control much of the investment needed to upgrade the business environment (OECD, 2005). Recently, the ministers of SMEs through the "Strategic Plan 2017-2020", stated promoting the development of an enabling environment, foster capacity building for SMEs and enhance synergy with other APEC fora, the private sector and other stakeholders to promote the development and growth of SMEs. 

This project is aligned with the Rank 1 of Funding Criteria for All APEC-Funded Projects in 2016: Projects that demonstrate a direct link to promoting Regional Economic Integration most precisely related to the human capital development, including implementation of the Strategic Plan on Capacity Building and Activities outlined in the Global Value Chains Blueprint. 

Also, his project will enable to share best practices regarding public policies for decision making in trade & industrial promotion, and implementation programs & projects at local levels in APEC economies, focusing on public – private partnership alliances among the several actors within the territory. The forum will take place in Peru, and will be a great opportunity for developed and developing economies to be aware about the current and future dynamics of international trade and investments and to learn how, global value chains are shaping and driving the global economy. 

Thus, especially for developing economies, SMEs, individuals and governments must rethink about the role to play in this global business environment, combining clusters and value chains strategies.  In addition, economies will identify areas in order to integrate their SMEs into global value chains. Those can be related to trade logistics, customs, transportation, innovation, labor flexibility, improve management skills, financing and gender inclusion.

Objectives

·  To improve institutional and local government capacities to design and implement public policies, focusing on economic and competitive development of their localities to foster SMEs business development.

·  To identify the economic potential in APEC economies that could support the implementation of development policies with regard to SME internationalization through global value chains, cluster and other policy instruments.

·  Strengthen capacities for financial inclusion and gender in regional development programs in APEC economies.

.  To show the importance of promoting clusters to enhance public and private associations as significant tools for the economic development of APEC economies.

Alignment

The project is related to the third priority of APEC 2016 "Towards the modernization of micro, small and medium enterprises in the Asia-Pacific region," which establishes the importance of promoting and coordinating industrial productive ecosystems in the economies of APEC. This initiative also represents the priorities supported by the Strategic Plan 2017-2020 SMEWG related to financing for business expansion and capability development; inclusive business ecosystem that supports SME growth and market access for SMEs. 

In addition, this project is in line with 2015 APEC Leaders’ Declaration – Investing in Human Capital Development:  To redouble our efforts to empower our MSMEs providing them with the necessary tools to benefit and participate in economic growth. 

The project "Promoting Stakeholder´s Building Capacities in Clusters and Local Economic Promotion Instruments" will contribute to the articulation and coordination between local actors. In order to internationalize SMEs, providing all available information and facilities as regards to generate business partnerships, such as clusters, export consortia or promoting integration into Global Value Chains, access to financing and to new international markets opportunities. Finally, a closer relationship will be achieved for the benefit of the stakeholders, involving the private sector, civil society, and academic institutions, in which it will create a competitive and favorable environment for the sustainability and growth of SMEs.

TILF/ASF Justification

Although SMEs play an important role within APEC economies, local authorities and relevant stakeholders need to fully understand  the conditions that promote or limit business development in each territory. Therefore, this project promotes cooperation and coordination between different public – private actors, multilevel governments (governance), and different plans and instruments for local development, promoting human capital development, key factor to the development and growth of APEC economies, and that is possible only through the building of institutional capacities.                                                      

Beneficiaries and Outputs

Outputs: 

·  A two-day forum where participants can share information and best practices in APEC economies in the topics indicated in the agenda.

·  Summary conclusions and recommendations of the forum.

·  We will collect all materia presented during the forum. Those will also be stored in soft copies to all participants of the meeting, SMEWG focal points, and other stakeholders. 

Outcomes:  

·  SMEs may be able to make strategies that allow their growth and sustainability through the formation of associations, clusters or be inserted into Global Value Chains schemes in APEC economies. 

·  Policymakers will have a better perspective regarding developing policies that help enhance and provide a more competitive environment for SMEs. This will be possible through the combined contributions of a wide range of organizations and actors involved in providing tools for capacity building that will help create a more competitive environment within regions.

·  Local SMEs leaders will be able to match – on a business basis – with the knowledge and the technology required with foreign market’s needs. 

·  Regarding gender inclusion, the project will take advantage of the promotion of different programs in favor of women's entrepreneurship and their access to financial markets.

·  Academic institutions will be able to match their activities based on SMEs needs by developing tools that could boost their development. This will enable the formation of a triple helix, which involves a closer relationship between university-industries-governments in the Knowledge Society for the benefit of local development from the regions of APEC.

·  The forum is designed to provide institutional (meso) and business (micro) capacities to align SME competitiveness in international markets, focusing on entrepreneurs, business associations, SMEs and APEC member economies. They all can discuss best practices that will benefit SMEs, such as clusters or Global Value Chains with other SMEs from APEC economies, and that would benefit their growth and sustainability.

·  The best practices generated would be useful to local authorities and relevant stakeholders in APEC economies for designing and implementing public policies in favor of a competitive approach for SMEs. Also, SMEs will express their needs and share experiences that result in a feedback of recommendations and conclusions that allow the development of a more competitive business environment and better public services. 

Beneficiaries:  

The Beneficiaries of projects include:

·  The direct beneficiaries would be SME entrepreneurs, APEC policy makers (local and national level), who will have the opportunity to articulate and implement strategies in coordination with other social actors to provide a competitive environment in APEC economies such as officials governments from Ministries and agencies involucrate in industrial and commerce promotion. 

·  Private sector or experts who can find opportunities for new projects that will accelerate trade between SMEs from APEC member economies. SMEs, who will have the opportunity to think and build new strategies such as the formation of clusters as a way to be inserted into global value chains. At the same time, SMEs will have the opportunity to express their requests and needs for the development of their enterprises. 

·  Academic institutions, business associations and others that are related to local development. Through the academy and other institutions can cover part of the needs of SMEs, such as studies of new markets, technology and innovation. The coordination between state and social actors benefit SMEs in APEC economies, achieving systemic competitiveness within their localities.  In this sense, the agenda will include the participation of the most representative peruvian business associations such as Chamber of Commerce of Lima – CCL, Peruvian Trade Associations (COMEXPERU), the Association of Peruvian Exporters (ADEX); National Society of Industries (NSI); and, The Development Finance Corporation of Peru (COFIDE). 

·  International Development Banks and Financial Organizations such as World Bank, Inter- american Development Bank, Asian Development Bank. NGOs that foster new entrepreneurships in young people and women, as a way to help create their own jobs to support their families. 

Taking into account, the relevance  of this event, It is expected to have speakers coming from the Small & Medium Business Corporation (SBC) and / or Small and Medium Business Administration from Korea; SME Corp from Malaysia, Taiwan Institute of Economic Research (TIER), Office of Small and Medium Enterprises Promotion (OSMEP) from Thailand. Also the National Chinese agency for SME promotion. As well as, SMEs representatives form Latin-American economies such as Mexico and Chile.

Dissemination

The plans to disseminate result and/or outputs of the project include: 

·  All presentations will be stored in USB drives to be distributed all participants.

·  Videos will be presented about the experiences of local economic development by promoting the internationalization of SMEs.

·  Hard copies of presentation files, reports and other relevant materials will be around 150 copies for each kind of publication.

·  All event will be delivered in real time by Live streaming.  This is very important to expand the forum to local regions of the APEC economies and, particularly, to the focal points of the SMEWG.

·  The main local leaders of the APEC economies, covering local development issues, are those who will disseminate experiences learned within their regions.

Final report on conclusions and recommendations about local development instruments and stakeholder’s building capacities in Clusters to take advantage of their partnerships. This report will be posted in the websites of the Ministry of Production, APEC Secretariat web page and others relevant institutions related to this issue. Also, this final report could be translated to Spanish version (previous approving of the APEC Secretariat), so more people can learn these experiences.

Gender

·   We have considered the participation of two delegates from each APEC Economy.

·  The forum will cover several topics such as:

a) Women leadership in entrepreneurship.

b) The access of women to financial markets and instruments.

c) Strengthening technical and managerial capacities for women

d) The wage gap in the labor market between men and women.

· The forum involves the participation of both men and women, so that they can discuss and express their opportunities and difficulties of the business sector, such as access to finance, innovation, development of partnerships, and other topics. 

·  The project will make the respective invitation to women entrepreneurs in order that they can share experiences of development and business growth. For instance, Ms. Ana María Choquehuanca, from the Peruvian Congress.

·  Special efforts will identify 40 percent of women speakers, so that they can participate in the forum.

.  A specialist woman, who fosters and promotes capacity building within the female gender, drives the project.

Work Plan

The project is designed to involve micro, small and medium enterprises (MSMEs), regional and local governments, academic institutions, NGOs, business associations, civil society and women; so that all key public-private actors that drive SMSE competitiveness will be covered. Participants can share their experiences and SMEs will have opportunities to form partnerships with other SMEs from APEC economies. 

Participants can share their successful experiences and SMEs will have opportunities to form partnerships with other SMEs from APEC economies. In addition, policymakers will be able to learn from best practices for the development of a competitive environment in their regions for the benefit of SMEs. 

In this context, the forum will be scheduled for two days, September 21-22, in Lima, Peru. The first day, there will be presentations of international speakers and each finished presentation will be an appropriate time to discuss the questions and needs of participants.

Timing

Activities

Outputs

Last week of April 2017

Establishment of organizing committee and advisory team

Committee established.

Last week of May 2017

Planning the project: Draft agenda for the first day of the forum, Identifying speakers, selecting experience/best practice cases, possible venues.

Tentative Agenda is designed.

May 2017

Selection of the forum venue by the Organizing Committee.

Venue Selected.

Last week of June 2017

Finalizing draft agenda for the second day of the forum.

Invitation of keynote speakers/moderators.

Decision of the 2-day forum agenda.

Keynote speakers/moderators confirmed.

First week of July of 2017

Sending official invitations with general information to APEC member economies and APEC SMEWG members.

APEC member economies and APEC SMEWG members confirmed.

First week of August 2017

Review and approval of the agenda by the Advisory Committee and it will be circulated among the economies for their inputs.

Approval tentative agenda.

Second week of August 2017

Administrative Circular will be sent to all participants with all details of the forum.

Administrative Circular is sent to participants.

Week of August 2017

Submission of forum materials and presentations.

Preparation of facilities and equipment.

Compilation of seminar materials

Last week of August 2017

The forum will be announced on the APEC webpage and Ministry of Production.

Confirmation of event.

Registration of participants.

21-22 September 2017

Holding the forum in Lima, Peru.

Day 1st and 2nd day: Presentation of national and international speakers.

The Forum is to be hosted.

First week of October 2017

Conclusions disseminated among APEC member economies.

Approved Conclusions and recommendations.

Second week of October 2017

Distribution of results and final report to be uploaded in the APEC website. This report will also be sent to the APEC Secretariat.

Virtual Dissemination.

Risks

·  Participants and main speakers do not confirm their participation in time. Therefore, the Organizing Committee and Advisory Committee will help to ensure identifications of keynote speakers and others important participants. Letters of invitation will be circulated in advance.

·  The speakers do not have their presentations, so the organizing committee will collect all the presentations of the speakers with 15 days in advance of holding the forum.

·  Absence of any speaker for some reason. So that there will be speakers from the Ministry of Production capabilities with proportional keynote speakers to cover the absence.

.  Potential difficulties due to conflicting schedules with SMEWG meeting. This forum will not be held on the margins of the SMEWG to facilitate APEC member economies' attendance.

Monitoring and Evaluation

·  We expect to receive around 200 participants, of which 20 attendees will come from 10 eligible economies and 12 participants (speakers included) from developed economies.

·  We will be applying one survey to participants to know their opinions and point of view about the forum.

·  We will apply a survey to find out if there have been some partnership initiative among participants.

·  We will record where are participants from, especially SMEs and main women local leaders of APEC economies, to know that economies will take into account best practices of the project.During the design and implementation of the project, we will record about of the percentage of participation and inclusion of the female gender. We expected to have the 50% of women participant in the audience and at least 30% of women speakers.

During the implementation, the PO will monitor different activities that will have place in the framework of the project in consultation with project team and organizing committee. The project will adhere strictly to APEC Project implementation procedures, and it will fulfill with the timeline of all activities.

Linkages

This project is related with three outside APEC organizations, such as: a) Pacific Alliance, b) OECD and, c) Trans Pacific-Partnership (TPP).  Also there are important current global negotiations for strengthen trade and investments, such as the Transatlantic Trade and Investment Partnership (TTIP) and the Regional Comprehensive Economic Partnership (RCEP).

In this scenario, we have identified key institutions and researchers from prestigious universities that can provide to the several stakeholders mentioned in this project a prospective economic and social vision regarding the relevance of Multinational Corporations (MNC), FDI trends, and trade flows between developed and developing economies.  In this framework, it must be pointed out the global value chain dynamics and linkages between SMEs and MNCs (outsourcing and offshoring).

Regarding to previous work, APEC has funded projects that supported the development of SMEs to promote local development, such as "APEC High Level Meeting on Driving SMEs' Growth to Promote Local Development” in 2007.

Also, APEC Ministers have committed to fund projects that are both high priority and high quality, under the APEC Support Fund (ASF), it involving SMEs in activities to support the construction of inclusive economies through poverty reduction led by MSMEs. Moreover, promote capacity building to enable people, business, and governments can improve their skills and knowledge to engage in the liberalization of trade and investment.

This project seeks to strengthen APEC economies ecosystem for promoting their development and growth through sharing knowledge and experiences. For this reason, we consider that APEC is the best source to fund this project.

Sustainability

This forum will enable all stakeholders, especially from developing economies, to promote the public – private environment in order to incorporate the current international trade & investment dynamics in the process of design and implementation SME promotion initiatives, focusing on a global perspective, in terms of SMEs growth potential and prospects for success in local development instruments, clusters and global value chains.

Among the stakeholders, this project will target Manufacturing & High Tech SMEs, the Ministries of Industry and Foreign Trade, Regional Governments and Academia.

The project oversees would prepare surveys at the beginning of the forum and by the end of the project in order to evaluate principal policies and statistics from the APEC economies participants.

These initiatives and best practices will be replied in their home economies and expect to incorporate public multilevel governance tools such as guidelines, guides, virtual and technological platforms in order to support the activities planned for next year regarding the Capacity Building Programme on Strategy Formulation for Territorial Competitiveness.

This Forum aims to improve institutional and business capacities for SME competitiveness, which depends, among other factors, on territorial business environment conditions. In this sense, this conference is based on institutional APEC Economies approaches where the participation of territorial actors have formed partnerships in order to access financing. 

After the forum, we will collect information about stakeholders’ participation, which will be send to each delegates, entrepreneurs from APEC Economies.  A large number of public and private actors are involved in economic territorial development both at a national and at a regional level, which is an indication of the interest shown by the target group. 

The cases and experiences presented at the forum will include macroeconomics content combined with technical issues, as well as microeconomics, in connection with the most relevant regional intervention programs in APEC Economies. 

On this basis, the Ministry of Production is working on identifying and designing SMEs promotion public policies, technical documents and procedural guidelines to improve the level of productivity and competitiveness in local regions. 

In the forum, official delegates from APEC economies will sign relevant recommendations and initiatives to create a regional agenda to continue increasing the knowledge about building capacities in Clusters and Local Economic Promotion Instruments for the SMEWG, in a global environment.

Project Overseers

Mr.  Ricardo Pérez Luyo:  Director - Regional Competitiveness Division / General Directorate for Economic Studies, Evaluation, and Regional Competitiveness / Vice Ministry of SME and Industry in the Ministry of Production.  He is Master of Arts in Development Economics. Williams College - Center for Development Economics. Williamstown, Massachusetts, USA. In addition, he has a Master in Finance. Universidad del Pacífico. Lima, Peru and BA in Economics. Universidad de Lima. Lima, Peru. Mr. Pérez has a lot of experience in private, public sector and academy as professor of International Trade and Globalization and Foreign Direct Investment.

Ms. Ximena Romero:  Assessor - Regional Competitiveness Division / General Directorate for Economic Studies, Evaluation, and Regional Competitiveness / Vice Ministry of SME and Industry in the Ministry of Production.  She is Economist of the Universidad Católica Santiago de Guayaquil with a specialization in Macroeconomics at the Pontificia Universidad Católica de Chile.

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

Not Applicable.

Waivers

An Advance Payment will be requested for two delegates from 10 (ten) eligible economies for their travel expenses and Per Diem; also, will be required for international speakers.

Are there any supporting document attached?

No 
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Version HistoryVersion History

Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

Proposal Status

Originating Sub-Forum

Approval Status
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