Productive Transformation Program:A public – private alliance to develop

World Class Sectors

October, 2009

4 4

CAN

Chile

MERCOSUR

Mexico

U.S.A.

Canada

Triangulo Norte

EFTA

EuropeanUnion

In force: CAN, G2, Mercosur y Chile

On tramit: Estados Unidos, Canadá, Triángulo Norte y EFTA

On negotiation: Unión Europea

Without FTAs: (Next: Korea, Dominican Republic)

2010: 9 FTA’s with 45 countries and preferential access to over 1.3 billion consumers

Our sales force is doing a great job opening new business opportunities…

...however, in order to succeed we must strengthen our productive capabilities. Our productive forces must be revamped.

If Colombia was to be seen as a company, one could say…

But, ¿how?

Productive Transformation Program

A public-private partnership, aimed at developing world-class sectors. The program intends to develop and execute business plans aimed at boosting economic growth as well as generating skilled jobs. The strategy encompasses both, established and emerging sectors.

Stimulating the development of

ESTABLISHED SECTORSinto world class

performers

Promote the development of world

class performers of NEW AND EMERGING

sectors

OPEN CONTEST

ValueProposal

Market Terms

Co - financing

Team work

15Proposals

from different sectors

EVALUATIONJURY

DNPCPC

Alta ConsejeríaCompetitividad

ProexportBancoldex

ESTABLISHEDSECTORS

NEW & EMERGING SECTORS

4

4

International consulting firm - Definition process

Methodology + International vision

A contest based on open processes, participation and

well structured methodologies ...

Today, 8 different sectors are executing their business plans leading to become world class performers

Stimulating the development of ESTABLISHED SECTORS into world class standards

Promote the development of NEW AND EMERGING sectors to reach world class levels

Tercerización de Procesos

De Negocio

Each one of the 8 business plan include an analysis of...

• Long-term aspirations.• Strategic plan. • Schedule of planned activities, goals and people in

charge.

• Current state of the sector. • Colombia's competitive position compared to other relevant

countries.• Competitive gaps compared to world class players.• Gaps in best practices adoption.

• Current market size and potential.• Major global players in this sector.• Global Best Practices.• Trends: consumption, growth, supply, demand,

competition, niches.• Opportunities.

WORLD

COLOMBIA

ACTION PLAN

The business plans include initiatives along four key topics...

HUMAN RESOURCE DEVELOPMENT

buscar

LEGAL AFFAIRS & REGULATION

INDUSTRY DEVELOPMENT & PROMOTION

INFRAESTRUCTURE

Pertinence, improved skills, readiness and retention in the industry. Bilingualism and promotion of university-industry partnerships...

Adapt the regulatory framework to suit the industry’s needs.

Put in place strategies to: attract foreign investment ,strengthen sector representation, bolster management capabilities .

Ensuring adequate infrastructure is in place to suit industry’s needs.

ACTION PLAN

184 Initiatives

By 2019, these 8 world-class sectors will multiply their 2008 revenues by 3,4 times and their exports by 7,7

US$ Millions

2008

Employment

Total sales

Exports

313.000

20.126

4.397

773.100

39.670

1.112.600

69.100

34.023

1.988.700

215.800

126.46218.090

2,5 X 3,6 X 6,4 X

2,0 X 3,4 X 10,7 X

4,1 X 7,7 X 28,8 XUS$ Millions

2012

20192032

TODAY

¿How to do it?

Inter institutional Articulation

Public – Private Alliance

Maintaining a strong public-private partnership and strengthening the daily institutional articulation.

Stimulate the production of more and better products &

services

ESTABLISHED SECTORS

Promote the development of

NEW AND EMERGING SECTORS

A world-class team

Public – Private Alliance

Productive Transformation Program Manager

Auto-Parts Manager

Electric Industry, Products & Services

Manager

Graphic Communication

Industry Manager

Textile, Apparel. Design & FashionManager

Health TourismManager

Cosmetics & Care Products

Manager

BPO&O Manager

SW & TI Manager

Human Capital Development Manager

Legal Affairs & Regulation Manager

Industry Development & Promotion Manager

Infrastructure Manager

Inter institutional Articulation

Joining forces to develop world class sectors

Another step ahead…

+

AGRICULTURE AND AGRO INDUSTRIAL

SECTORS

Ministerio de Agriculturay Desarrollo RuralRepública de Colombia

Ministerio de Comercio,Industria y TurismoRepública de Colombia

Inter institutional Articulation

www.transformacionproductiva.gov.co

Colombia is moving towards a focalized economic development model, based on a

PPP, with a methodology, a structure, acommon “language” and goals to generate

world class sectors.