Essential Features of PACA

1. Essential Features of PACA Jörg Meyer-Stamer

2. Shift in development paradigm • from long-term planning to short-term action • from top-down to bottom-up • from government-driven to public-private partnership

3. Development work is process management • There is no linear sequence: capacity building – creation of institutions – implementation/delivery • You understand a problem best if you try to solve it • Development is an iterative process • The most relevant element of learning is learning-by-doing • A key challenge for development work is to set the stage and to shape learning-by-doing • Development is a lengthy, painful process • You need quick wins to get motivation.

4. Institutions are a response to problems • The principle of institution building: form follows function • you design an institution in a tailored way to address a clearly identified problem • If you start a development process by creating an institution, you are creating a problem, not solving a problem • The creation of institutions must emerge from problem-solving and learning processes among local stakeholders

5. Shift in approach to LED promotion • Driven by opportunity • Based on local resources • Business-driven • Not primarily addressing the main sector, but the motivated sector • Little emphasis on strategy as plan • Iterative process • Open and open-ended process (“perspectivic incrementalism”) • Action learning • Main Role of LED Agents: Facilitation

6. Facilitation • Efficient facilitation of LED • Mobilise local knowledge • Connect local knowledge and players • Connect and contrast local and external knowledge • Contrast perceptions and facts • Make local players learn that they can do things they never thought of • Permits local government to project commitment to business, to establish communication channels with business

7. New understanding of government role in development • Unburden government • less delivery by government • government as facilitator • Deal constructively and pragmatically with fragmentation of government agencies • problem-oriented connection of agencies (instead of re-organisation, “co-ordination”) • Move government out of the way of business

8. LED in the PACA Way: Doing things differently or doing different things? Both! • Doing things differently: • driven by opportunities • looking at short-term results • maximising the efficiency in the use of time • Doing different things: • addressing market failure • stimulate business networking • addressing fragmentation of institutions and actors in a project- and opportunity-driven way

9. Development and refinement of highly effective mini- workshop formats and other diagnostic tools Documentation and codification of PACA process = facilitate transfer and training Scanning of international good practice Execution and evaluation of PACA Projects worldwide Scanning of research / academic literature on territorial development and upgrading Key elements of PACA: The product and its evolution Territorial upgrading Territorial change management

10. Bad weather, delayed flight, time to write PACA Manual Ver. 1.0 SME promotion through organisational development of Business Chambers Fundação Empreender, Santa Catarina, Brazil sponsored the first two PACA Exercises one success, one failure Ilgo F. Welp, chamber executive in the success city excellent facilitator sold PACA to other locations Why PACA exists

11. Thank you for your attention!