lred and value chains 2009

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LRED and VC

A competitive view:

Similarities, differences and

synergies of the two

approaches

Philip Madelung

VC Sub-Group meeting 22/23 Oct 2009, Manila


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Agenda

Similarities and differences between LRED

approach and VC promotion

Synergies between the two approaches

Resources for LRED

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LRED VCA

LRED and VC promotion have a lot in

common


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LRED and VC promotion have a lot in

common

Creating a favourable business environment for

SMEs

Local market potential as a starting point

Competitiveness is a goal (of a region / of a

sector)

Overlap in relevant actors

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but there are also some differences between

an LRED approach and VC promotion:

LRED VC promotion

Dimensions Primarily spatial

approach

Primarily sectoral

approach

Actors All relevant actors in a

region or locality

Limited to the selected

VC: regional, national,

international

Driving actors Public sector (and

private sector)

(Mostly) private sector

Direction of

approach

links to governance

issues

links to agricultural

products

Markets addressed Service and ressource

markets

Product markets

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Value Chain Analysis is only one among many

tools of the LRED approach

But only the Value Chain approach links localproducers to (inter-) national markets.

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LRED and VC promotion overlap, but each

approach offers more than the intersection

LRED

VCA


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Let us concentrate on the synergies of VC

promotion and LRED:

Management of conflicts between competing

demands on local resources

Working on complementarities between differentVC in a region, but keeping regional

development in mind

Increasing the local / regional share in total

value addition in a VC

Regional marketing initiatives

Local roundtables coordinating public support

for key sectors

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Resources for LRED

LRED Reference Guide:

http://www2.gtz.de/wbf/lred/index.asp

Product Manager (Knowledge Management):

Kirsten Schttler, Section 4121,

[email protected]

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http://www2.gtz.de/wbf/lred/index.aspmailto:[email protected]:[email protected]://www2.gtz.de/wbf/lred/index.asphttp://www2.gtz.de/wbf/lred/index.asp


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Contact: [email protected]

Thank you very much for your attention!


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Backup

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Hot topics in LRED

National LRED strategies (regional / structural

policy)

M&E in LRED

Sustainability of of LRED approaches instructurally disadvantaged regions

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LRED is

an ongoing process by which

key stakeholders and institutions from all spheres of

society, the public and private sector as well as civil

society,

work jointly to create a unique advantage for the

locality and its firms,

tackle market failures, remove bureaucratic obstacles

for local businesses and strengthen thecompetitiveness of local firms.

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A quick recap of LRED (definition)


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What it isnt:

SME promotion

Industrial policy

Urban / regional planning

Strategic planning

Community development

Creating a LRED agency

What it is:

A broad and integrated set of

activities across different

sectors and policy fields,involving various actors, which

aim at creating a competitive

advantage

for the area

for the companies in thearea

... in order to contribute to the sustainable development of a

locality through the creation of income and jobs

LRED more specifically


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LRED intervention areas (based on Rcker / Trah)

Competent LRED Actors

Cooperative Governance and Management

Structures

Competitive Locational Factors Strategy and Learning

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LRED approach (based on Rcker / Trah)

Intervention Area 1: LRED Actors Building Government Capacity

Strengthening Local/ Regional Private

Sector Institutions

Building Organisational and

Entrepreneurial Capacity in Poor

Communities

Strengthening LRED Intermediary

Institutions

Intervention Area 2: Cooperative

Governance and ManagementStructures

Promoting Multi-stakeholder Trust and

Networking

Building Adequate Management

Structures for LRED Processes

Intervention Area 3: LocationalFactors for LRED

Creating a Favourable Business

Climate

Locational Marketing and Investment

Promotion

Improving Access to Business and

Financial Services

Promoting Clusters, Sub-sectors and

Value Chains

Utilizing Local Natural Resources for

LREDIntervention Area 4: Strategy and

Learning

Fostering a Learning Culture and

Learning Mechanisms

Increasing the Strategic Orientation of

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Some tools for the LRED approach (1)

Conceptual and Analytical Tools

e.g. The Hexagon, Economic Mapping, Porters Five

Forces Analysis, Porters Diamond

LRED Training and Capacity Building Tools

e.g. Training on Communication and Facilitation in

LRED, LOCATI, CEFE, Small Business Competitive

Club

Communication and Networking Tools

e.g. PACA, LED-Caf

Tools for Strategy and Learning

e.g. LOCATI, GENESIS, COMPASS of local

competitiveness, Participatory Benchmarking

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Some tools for the LRED approach (2)

Tools for strengthening locational factors

e.g. Reducing Local Red Tape, Regulatory

Impact Assessment, Local and Regional

Business Climate Survey, Market Assessment

tool-set for BDS, Value Chain Promotion,Public Slogan Competition

Value Chain promotion is one tool among many

others in LRED!

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A quick definition of Value Chain promotion

(from value links glossary)

Promoting a value chain means supporting its

development by externally facilitating a value

chain upgrading strategy.

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lred and value chains 2009

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