CLUSTER DEVELOPMENT AGENT Originators: Foundation for MSME Clusters (FMC), UNIDO

Reducing poverty through sustainable industrial growth Definition of a CDA or cluster broker? A professional who works on the ground in the cluster and accompanies the process of cluster development from its initiation to phasing out

Reducing poverty through sustainable industrial growth Why do we need a CDA?  Could we rely on a cluster stakeholder to do the job?  The issue of neutrality – trust – time CDA is an entry point into the cluster for the implementing agency A CDA is from outside the cluster S/he does not have a business interest in the cluster S/he works full time S/he is mandated to work for a fixed time period Single person or a team? Both is possible…

Reducing poverty through sustainable industrial growth Who is a CDA?  A professional who works in the cluster on a daily basis and operates as a temporary catalyst of a process  Establishes trust-based relations with and among cluster stakeholders  Supports cluster stakeholders in the formulation of a joint vision for the development of the cluster  Fosters joint action on specific business objectives  Empowers local stakeholders to take the lead of the process

Reducing poverty through sustainable industrial growth Qualities of a CDA  Willing Soul Hardworking Open to new ideas, tries them out Is self-motivated, assumes responsibility  Communicator Pick up and connect clues fast Understands local (business) culture  SME expert Has familiarity, preferably experience of how SMEs work Understands local production process May or may not be technically qualified  Conflict Resolver Identify the symptoms of conflict Understand its roots Avoid conflicts

Reducing poverty through sustainable industrial growth What is the role of the CDA?  A technical / sectoral expert  A coach  A facilitator / broker  A manager  A coordinator  A business dev expert  A trainer ?

Reducing poverty through sustainable industrial growth What is the role of the CDA? Accompany the process……  Identify and involve leaders  Broaden the scope of action: from first comers to the business community at large  Empower local actors – establish forums of dialogue/participation and give voice to marginalized actors  Catalyze initiatives but do not take ownership – give ownership  Build local capacities to sustain the process – governance  Progressively transfer responsibilities to cluster stakeholders – prepare for exit

Reducing poverty through sustainable industrial growth What is the role of the CDA? Working on the ground…doing what? Project phase Diagnostic Action planning Implementation M&E The CDA 1. Get to know / understand / analyze 2. Broker consensus-building, manage conflicts, identify business opportunities 3. Foster business network development 4. Foster vertical linkages (supplier-producers-buyers) 5. Foster public-private dialogue 6. Bridge coordination gaps between firms and support institutions 7. Give advice, solve technical and business problems, train 8. Monitor progress, prepare reports

Reducing poverty through sustainable industrial growth Principles for the CDA to follow?  Guiding and not deciding  Not doing but getting done  Not a perfectionist but logical  Creating but not owning - giving ownership  Innovating – taking risk  Professional support system of CDA

Reducing poverty through sustainable industrial growth What is the role of the CDA? Which one is the CDA?  The driver?  The front-seat navigator?  The back-seat passenger?

Reducing poverty through sustainable industrial growth Phasing Phase 1Phase 2Phase 3Phase 4 Principal Firms Support Firms NDA Association Institutions BDS providers Govt. Departments Network Umbrella Association

Reducing poverty through sustainable industrial growth Documents to be prepared by CDA?  Action plan  Background material for cluster visitors  Case study  Data preparation for monitoring and evaluation  Exit strategy  Final project report  Handholding of stakeholders in presentations  Implementing agency’s talking points  50 formal documents in 3 years