A Summary of PACA Jörg Meyer-Stamer Stimulating Local and Regional Economic Development

What is Participatory Appraisal of Competitive Advantage (PACA)? A methodology to prepare an action-oriented diagnostic of the local economy –to initiative 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

What is a local economy? For instance, it may be like this: An integrated footwear cluster An electronics satellite cluster A large chemical company Regional service providers: Health care University Wholesale trade Farmers and small food processors Local producer services: IT, transport, construction,... Local consumer services: Retail, beauty,... Government Footwear value chain Electronics value chain Global buyers Training institutions Business promotion Finance institutions

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

What is and isn’t Local Economic Development SME promotion Industrial policy Urban / regional planning Community development Strategic planning Creating a LED agency  is an important element of a LED initiative, but it also involves large companies  symbolizes top-down approaches, not local, bottom-up initiatives  is related to LED initiatives, makes them easier  follows a different logic, though there is some synergy  may be a medium-term result of an LED initiative, not the starting point  may also be a medium-term result of an LED initiative

Starting an LED initiative: Strategic Planning Advantages: Result = huge document –Useful in keeping supervisory bodies happy -- if performance is measured by input, not outcome –Useful in dealing with foreign donors Comfortable: you don’t have to leave your office –Let consultants and your junior staff to the legwork Disadvantages: Demotivates -- too complex, too many and too difficult proposals No action-orientation Does not stimulate learning-by-doing and adaptation of approaches

Starting an LED initiative: PACA Advantages: Action-orientation Motivates stakeholders Quick, visible effects Learning-by-doing Constant adaptation of planning (revolving planning) Disadvantages: No big document, does not appear “scientific” Possible result of diagnostic: Better don’t start an LED initiative You have to leave your office, perhaps to listen to the complaints of companies

Who is involved in a PACA? A “Champion” who suggests and coordinates the PACA –provincial or local government agency, 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 consultants 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 is the sequence of activities? Prepa- ration Kick- off work- shop Elaboration of Diagnostic + Proposals Interviews Mini-workshops Presen- tation of Diag- nostic + Pro- posals Imple- mentation Fieldwork

What about the fieldwork? Formats: Qualitative interviews (“conversation”) Mini-workshops Tools: Guideline (always) Mapping (sometimes) Life-line (sometimes) Diamond (always) Metaplan to define possible action –if participants are strongly motivated

Elaboration of diagnostic and proposals Diagnostic: see PACA-Manual 3.1 Proposals: see PACA-Manual 3.1 What about the follow-up? –see PACA-Manual 3.1

How to know that you do PACA in the right way? Constant reflection within the PACA team Exchange with PACA teams in other locations Exchange with PACA specialists elsewhere (South Africa, Sri Lanka, Brazil)