A Summary ofA Summary of

Jörg Meyer-Stamer

jms@mesopartner.com

What is Participatory Appraisal of What is Participatory Appraisal of Competitive Advantage (PACA)?Competitive Advantage (PACA)?

A methodology to prepare an action-oriented diagnostic of the local economy– to initiate a local economic development initiative– to assess and refocus ongoing local economic

development activitiesA methodology to motivate local stakeholders to take

an active role in an LED initiative

How to launch local and regional How to launch local and regional economic development economic development initiatives? The PACA viewinitiatives? The PACA viewLook at strengths instead of weaknesses

– identify potential for unique advantage– Porter perspective: how to turn disadvantage into

unique advantage?• Porter argument: strategy = a unique

advantage that cannot easily be replicatedGo for activities with a quick, visible impact

– don’t get stuck in endless strategizing– don’t start by addressing the biggest of all

challenges

Key insights underlying PACAKey insights underlying PACA

Development work is process managementThere is no linear sequence: capacity building –

creation of institutions – implementation/deliveryDevelopment is rather 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

– Institution development: form follows function Development is a lengthy, painful process

– You need quick wins to get motivation.

What is the objective of PACA?What is the objective of PACA?

Identify, with a rapid appraisal, the main strengths and weaknesses of the local economy and its main sectors (duration: 1 - 2 weeks)

Identify options for practical activities to strengthen the competitiveness of firms -- Criteria:– feasible with local resources– quickly implementable (starting next week)– quick, visible results (with 3 months)

Who is involved in a PACA?Who is involved in a PACA?

A “Champion” who suggests and coordinates the PACA– provincial or local government agency, Chamber,

NGO, somebody elseOther local organizations who take an active role

– financing– making staff available for the PACA Team

The PACA TeamVarious local stakeholders who participate in the kick-

off workshop, interviews, mini-workshops and the presentation

What is the PACA Team?What is the PACA Team?

1 - 2 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

team3 - 5 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 activitiesWhat is the sequence of activitiesin a PACA?in a PACA?

Prepa-ration:* Orga* Ad-vanceinfo

Kick-off

Wks

Results-Workshop:Diagnosis

+ Proposals

Interviews

Mini-workshops

Pre-sen-tationevent

Imple-mentation

PACA-Project

PACA-Exercise (2-3 weeks)

Fieldwork (1-2 weeks)

Hy-po-the-sis

Wks

Wayfor-

wardWks

What about the fieldwork?What about the fieldwork?

Formats: Qualitative interviews

(“conversation”)

Mini-workshops

Tools: Guideline Five forces Interaction matrix

Diamond Five Forces Interaction Matrix SWOT Mesocard to define possible

action – if participants are

strongly motivated

What is the immediate result of a What is the immediate result of a PACA?PACA?

A diagnostic of the local economyA set of proposals for practical activities

– to strengthen the local economy– to improve the business-friendly environment– to stimulate the competitiveness of companies– to create new business opportunities

Numerous local stakeholders who have a clearer idea about Local Economic Development

Buy-in of the private sector into LED – Communication channel established between

public and private sector on LED

What about the follow-up?What about the follow-up?

Implementation of activities done by local project champions – monthly to bi-monthly visits of external PACA

Team members to facilitate and troubleshoot After 4 - 8 months: workshops for evaluation and

definition of further activities, possibly facilitated by external consultants– option: More focused PACA Exercise, looking at

one sector, cluster or value chain

PACA has a strong emphasis on PACA has a strong emphasis on FacilitationFacilitation

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

What are the resources necessary What are the resources necessary for a PACA?for a PACA?

Time of the members of the PACA TeamRemuneration for PACA consultants (possibly

covered by external agency)– depending to number of consultants and duration

of exerciseTime of the participants in interviews and workshops

Why would you do a PACA?Why would you do a PACA?

Local stakeholders have little or no experience with LED– no use to run a strategic LED planning exercise:

how can you plan something you cannot imagine?Communication breakdown between public and

private sector A strategic planning exercise has become stuck

– PACA is a useful tool to get into practical action quickly

What again was the basic idea of What again was the basic idea of Local Economic Development?Local Economic Development?

Create a business-friendly environment Improve the quality of the location for firmsStimulate upgrading in companies

– through inter-firm learning– through support in fields like training,

management, technology• refocus and strengthen supporting institutions• stimulate closer interaction between companies

and supporting institutionsAttract new companies, stimulate entrepreneurship

Thank you for your attention! Thank you for your attention!