The PACA Approach: From the PACA Exercise to the PACA Process Jörg Meyer-Stamer

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

The origin of PACA Conducting a rapid, action-oriented appraisal of a local economy Encouraging, empowering and motivating local actors to implement practical, short-term LED activities

Challenges in the follow-up to PACA Exercises Limited facilitation skills of local actors –inefficient meetings –little creativity in overcoming obstacles Lower than expected planning skills Quick evaporation of excitement created during PACA Exercise

Lessons learnt: practical More external input into supporting the follow-up necessary External facilitators play a crucial role –to overcome fragmentation and miscommunication among local actors –to stimulate creative problem-solving More effort necessary to develop efficient workshop formats for planning and monitoring implementation activities More effort necessary to maintain excitement

Lessons learnt: conceptual Overcoming a traditional, planning-oriented, top-down- and government-driven approach is a big, challenging learning and change process PACA must put more emphasis on developing tools for change management –i.e. changing the mental models and behaviour of local actors Re-packaging PACA: An approach which provides, for the entire project cycle, innovative, efficient tools –efficient communication tools (e.g. mini-workshops) –participatory planning, monitoring and evaluation tools

Evolution of PACA PACA as a diagnostic tool PACA as a process-oriented concept Cluster and value chain development Rapid Appraisal of Local Innovation Systems Efficient Corporate Social Responsibility Revolving activities for locational upgrading Community- Based Economic Development

PACA as a diagnostic tool Emphasis on the initial PACA Exercise –understanding the opportunities and potentials for action to strengthen the local economy –initiating a first round of practical LED activities –quickly visible, albeit modest results to motivate local actors for more LED –initiating a learning process on LED

Revolving activities for locational upgrading Basic idea: Series of targeted PACA Exercises –to investigate parts of the local territory –to investigate a sector, a cluster or a value chain in the local economy to get to more specific LED activities to give breadth and depth to the initial PACA Exercise Conduct repeated PACA Exercises to monitor, refocus and energise the implementation of earlier PACA proposals

Community-based economic development Basic idea: Stimulate activities in poor communities –which do not require individual entrepreneurship, since this is a bottleneck –which follow a clear business logic –which create income for the local community

Efficient corporate social responsibility Basic idea: Increase the efficiency of CSR interventions –Observation: CSR interventions are often measured by input, not by outcome –CSR interventions often follow a fuzzy logic, not a business logic –CSR interventions may become more efficient if they follow a clear business-logic PACA is based on business principles and thus particularly attractive and convincing for corporates

Cluster and Value Chain development Basic idea: Identify quick win opportunities within a cluster or a value-chain –Observation: Cluster and value chain initiatives often require a long build-up and awareness- building effort before they produce an outcome –PACA principle: quick wins encourage buy-in move from simple activities with modest results to more complex activities with bigger returns –Specific, highly efficient mini-workshop formats which accept the time-constraints of cluster and value chain actors

Rapid Appraisal of Local Innovation Systems Model case of a PACA derivate –created as an assessment tool –evolving into an action-oriented tool for government technology promotion agencies for technology transfer organisations

PACA Project Repackaging PACA PACA Exercise PACA Tools PACA Tools PACA Tools PACA Tools PACA Tools

PACA Tools Very efficient Mini-workshop formats –existing formats –newly developed formats for specific purposes Rapid diagnostic tools –rapid cluster diagnosis workshop –rapid value chain diagnosis workshop