Fundamental Insights underlying Fundamental Insights underlying PACA PACA

Jörg Meyer-Stamerjms@mesopartner.com

Businesspeople do not trust Businesspeople do not trust anybodyanybody

The world of the businessperson is a shark’s pond:

I. competitors try to steal his/her business

II. suppliers and customers try to rip him/her off

III.business chambers – are old boys’ clubs – represent the establishment – don’t offer anything of substance

IV.government is busily inventing obstacles for business

V. politicians perceive businesspersons primarily as cows they can milk

VI. collaboration appears as a utopian idea.

Developmental institutions are Developmental institutions are fragmented fragmented

Even in places with relatively few development promotion institutions (SME support, technology, extension, finance, ...), these institutions mostly act in an uncoordinated way

With an increasing number of institutions, fragmentation problems increase exponentially

Institutions resist efforts to be coordinated for coordination’s sake

Supporting institutions are inward-oriented and do not consider the needs of companies.

Communication between Communication between government and the private sector government and the private sector is complicated is complicated For the private sector, government is predominantly a

source of problems– taxes, tariffs, rates, laws and regulations,

corruption, time delays in licensing …..For government, the private sector is predominantly a

source of problems– job retrenchment, environmental hazards,

contamination, noise, ...

Planning - Doing - Learning is an Planning - Doing - Learning is an iterative process, not a sequenceiterative process, not a sequence

Planning - doing - learning is a cumulative processYou best understand a problem as you try to solve itSolving easy problems first enables you to go for

more challenging problems.

Local people know their reality Local people know their reality bestbest

At least, that is what they thinkThey distrust external actorsThey distrust the wisdom and ideas of external actors

(e.g. development consultants)They assume that they already know everything that

is relevantThey often don’t understand innovative ideas

suggested by external actors If an external actor come up with an innovative idea,

he must implement it -- and carry the cost of implementation, as well as the risk of failure.

To unleash a dynamic To unleash a dynamic development process, you need development process, you need quick winsquick winsComprehensive planning or mobilisation efforts

without practical activities and outcome breed apathy and cynicism

Quick wins create motivation and buy-in, create credibility and trust among local actors and are the starting point for longer-term activities.

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