main point of today’s presentation: local development ...main point of today’s presentation: 1....

1

Local Development Approach of Asia;View from OVOP Movement in Oita

－From Local to Global Model －

APU-APM Kunio IGUSA

April.21, 2006

Materials for Southeast Asia Study Forum Seminar at APU April 21, 2006

Main Point of Today’s Presentation:

1. Why the OVOP Concept has been adopted by many Asian countries – Origin, Adaptability and Background

2. How can the OVOP Concept contribute to solve the problems which the developing Asia is now facing – poverty alleviation, human capability building

3. Outline of OVOP Movement of Oita and its Development Process

4. What the main message of the OVOP movement learned by Oita and Thai case

・・ Significant advancement of Industrialization but emerging serious economic gap among regions, especially remote local area

・・ Massive population influx to big cities and increase slum like area, and depopulation in the local rural region

・・ Deteriorating environment in the big cities and breakdown of social community in the rural area

Background of Adoption of Oita’s OVOP Movement Model as seen in the Local Development in Asia

・・ Persistent poverty in the developing Asia and felt necessity forfinding effective measures and concept to solve the problems.

What is the OVOP?

"One Local Community ought to create at least identical One product”, “Community is able to do it if people have certain motivation and Idea".

"One Village One Product" seems simple, but signified by the easy terminology and clear massage even to the non-educated local residence.

"One Community creates One marketable Product with identical brand by using own resources, and brush up the Product, upgrade the Value, establish the own Brand, and merchandise in the Global markets.

Local but Global Globally accepted products that reflect ride in the local culture

Self-Reliance Creativity

Realization of One Village, One Product through independent actions utilizing potential of the region.

Human Resource Development

Fostering of people with a challenging and creative spirit

Three Basic Principles of OVOPDirections for the Success of the “One Village, One Product Movement”

１. 住民の意識改革 Awareness Building２. 地域の宝を知ること Identifying of the Local Treasure３. 継続は力 Perseverance is the Base of Power４．付加価値の高い産品づくり

Making High Value-Added Products５．販路の確保 Securing Marketing Channels６．人材育成 Human Resource Development

一村一品運動成功のために

Source: Arranged of materials provided by 「ＮＰＯ大分一村一品国際交流推進協会」（Oita OVOP International Exchange Promotion Committee）

2

Marketing to the World and Quality of the global brand

Target is “Only One” (Clear image of Made in Oita)

Challenging spirits and Creative power

・・ Hokkaido’s movement of “OVOP”

・・ 70% of Local government of Japan adopted the applied idea of OVOP and promoted （1988)

Three Direction of the OVOP Movement

Expanding the OVOP Idea to the other region

Source: Human Development Report 2003 (UNDP)

Situation of Income Poor in the World of 1990s

Why the OVOP Concept has been adopted by many Asian countries – Origin, Adaptability and Background

9.39.46.34.7China4.06.47.94.2Indonesia6.56.07.96.5Malaysia4.87.98.98.2Thailand5.88.09.89.7Taiwan5.78.77.58.3Korea1.34.14.510.5Japan

<1991-2000><1981-90><1971-80>,<1961-70>

Source: World Development Indicators et al

GDP Growth Rate of Asian Major Countries

Background of Movement in case of East Asia GDP Growth Rate (per Capita) of Developing Asia and Other Countries

Korea, HK, Singapore, Taiwan

Mexico, Chile, Brazil

ASEAN + China

EU, US, and Japan

Shanghai

Sichuan

ChinaperCaptia GDPMalaysia

Philippines

perCaptia GDP

perCaptia GDP

Income Disparities btw Urban and Rural Geographic Distribution of Income (2000)

Shanghai

Sichuan

Beijing

GDP per Capita

Comparison of Income level of provinces in China

0 - 50005000 - 1000010000 - 30000No data

GDP per Capita (Unit Yuan)

3

HDI in Local Philippines Geographical Allocation of manufacturing bases

Regional Differences within Countries is Significant

West Mindanao

National Avrg.

Capital Region

Philippines South Africa

Western Cape

North Tansvaal

National Avrg.

Venezuela Mexico

Global Comparison

Korea

Thailand

Sri LankaKyrgyzstan

MyanmarZambia

900

800

700

600

500

400

“Local oriented Growth” and “Decentralization” being major political agenda in Asia

Revitalization of Local economy and industry became Urgent issue for the developing Asia

Sustainable development, HRD, effective institutional management became common approach for advancing development

Major Characteristics of ”OVOP” Movement Model in Japan

Background of Movement in case of Oita and Japan

Necessity to stop exodus young population to big city and control weakening local economic power,

Necessity for promotion of local industries and revitalization of economies

Necessity to elevate local societies’ own initiatives and reducing over-dependence to central power center

Over concentration of economy to Mega Cities and depopulation in the Local Region under the rapid industrial process

Post-War Trend of Japanese Economic Development(GDP Growth Rate)

OVOP StartedOyama’s Experience

Rate of Population Increase from 1995-2000

4

Advancement of OVOP Movement of Oita

Prelude of OVOP (1975-1978)

First Step of OVOP (1979-1982)Beginning of Rural Town Meeting and Seedling of OVOP in Oita

Third Step of OVOP (1983-1988)Intensification of HRD and Diversification of OVOP Movement

Forth Step of OVOP (1989-1993)From Income Raising to Quality Life of People

Fifth Step of OVOP (1993-2000)Towards Global Interaction of OVOP and International Exchange

Concept making of OVOP

Prelude of OVOP (1975-1978)Concept making of OVOP

・・Challenging to the Endogenous Development under the Depopulation of Rural Oita

Learning from Oyama and Yufuin’s Experience

Mind change of people from isolation to Outward-looking through competition and identification

Change of local government policy line and its attitudes; from single Track to Dual Track

3 Ps, PR and Site Attendance

Rural revitalization efforts along with urban based industrialization

From main player to good provider

Location and Geographical features of

Oita and Oyama City


Population3,８７０NPC Movement=New Plum ＆ Chestnut

Began In 1961Against then Rice Farming promotion of National Policy and promoted to grow identical local products under the campaign of NPC with dream ‘Let’s plant plums and chestnuts to go to Hawaii!’ And Breaking through many difficulties, gained success in income raising, community revitalization, and stopped depopulation.Now highest percentage of passport carrying residents in Japan (70% of the population) in example.

NPC Movement in Oyama Town


The initial goal of the NPC Movement was to increase the incomes of the town's farmers through crop diversification. The first new crops were plums and chestnuts. Later several varieties of mushrooms were introduced. The program has expanded to the point that now over one hundred agricultural products are grown and processed in, and shipped directly form Oyama.

Oyama’s First NPC Movement

Product making of Special Local Product and Forming 1.5 Industrial commodities

Once incomes were stabilized it was decided the next goal shoud be to improve the lifestyles of the townspeople. This has been accomplished through the sponsorship of cultural and athletic events. One major part of this program has been foreign travel. In fact one of the initial goals during the early stages of the program was to make enough money to be able to go to Hawaii, a very ambitious goal at the time.

Human Resource Development and Regional DevelopmentOyama’s Second

NPC Movement


The third goal of tha NPC Movement has been to build the physical facilities necessary to provide a comfortable lifestyle. This has include a culture center, as well as several community centers. The town has also been working to provide many of the conveniences usually found only in large cities.

Cultural richness and Formation of communications point to the world

（Present Day

Oyama’s Third Stage of NPC Movement


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First Step of OVOP (1979-1982)Beginning of Rural Town Meeting and Seedling of OVOP in OitaRevolving Town and Community Meeting for OVOP

Selection of OVOP and TV Campaign for promotion

Marketing efforts by Oita Local Government of OVOP in the Global Market

Direct dialogue meeting with people by Oita governorKabae, Ajimu, Yufuin, Miemachi etc

Selection of excellent OVOP products and giving award and promotion

Provide TV program of OVOP under the rural people’s initiative

OVOP Exhibition in Tokyo and global market campaign

Technical Supporting for Quality Improvement of OVOPEstablishment of technical support center for OVOP

Town Meeting with Local People

Governor Hiramatsu held Town Meeting in the every town and villages to discuss how to revitalize local community and promotion of its industries with local poeples.

Governor has realized how important to communicate directly with local leaders to inspire the movement

Source: 「一村一品運動20年の記録」大分県一村一品推進協議会

Expanding Regional OVOP Principal Products

1980 1995 20001998


Dried Shiitake Mushrooms （椎茸）

Production Volume

1316 ton (2003)

Domestic Market Share

32 % (2003)


カボス Kabosu Limes生産量 Output of 2002fy

４，５５０ｔ国内生産シェア Domestic Production Market Share

Almost 100%

Processed Products made from Kabosu


麦焼酎 Barley Distilled Spirits (SHOCHU)

Quantity of 1975７６５ kl

Domestic Production Market Share １％

[156 times increase]

Quantity of 203

１１９，０６０klShare (３０．７％)


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［品目］

(1980) (2001)

143品目→336品目

[2.3 Times]

［販売額］

(1980) (2001)

359億円→1,410億円

339mil＄→1330

[4 Times] mil＄

カボス椎茸

一村一品運動品目数と販売額の推移Change in Number of Product ＆ Total Sales of Products in OVOP


③ 人づくり

Human Resource Development

先見性のある地域リーダーがいなければ、運動は成功しません。

一村一品運動の究極の目標は、人づくり

何事にもチャレンジできる、想像力に富んだ人材を育てることが必要

The ultimate goal of the “OVOP Movement” is Human Resource Development.

If we do not have regional leaders with foresight, the movement would not succeed.

It is therefore essential that we raise talented and creative individuals who can face new challenges.


First OVOP selected List on the Map

143 products were listed in 1980

Kurumaebi prawn in Himeshima

“Shochu” drink in Hijiand Usa

Bamboo handcraft in Beppu

Kabosu citrus in Takeda

Kicchomu pickles in Kusu

Seki Aji mackerel in Sagaseki

Shiitake Mushroom in Oyama

Listed OVOP Products

Source: 「一村一品運動20年の記録」大分県一村一品推進協議会

Oita OVOP Fair in Tokyo (1980)

Source: Home page of Oita Tourism Web site and 「一村一品運動20年

の記録」大分県一村一品推進協議会

豊の国づくり塾 Toyo no Kuni Development School

豊の国２１世紀塾Toyo no Kuni 21st Century School2001～2002塾生１５６名156 students in 2001 and 2002

1983～2001までの卒塾生１，８０５名1805 graduates from 1983 to 2001

塾是 : ｢実践・啓発・継続｣

Slogan: Practice, Enlightenment, Continuance


・２１世紀大分農業塾(Agriculture)

・豊後牛飼い塾(Cattle Owners)

・豊の国商い未来塾(Future Business)

・豊の国経営塾(Management)

・豊の国観交カレッジ(Tourism Exchange)

・おおいた環境塾(Environment)

・豊の国しらゆり塾(Single Mothers)

・豊の匠塾(Technical Expents)

・豊後やる木塾(Foresty Management)

・豊の浜塾(Fisheries)

・地域文化道場(Culture)

・大分県福祉ボランテイア大学校(Welfare Volunteer)など

豊の国づくり塾の広がりSpread of Toyo no Kuni Development Schools


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Forth Step of OVOP (1989-1993)

From Income Raising to Quality Life of People

From Production oriented to Cultural oriented OVOP

Promotion of Tourism and Sports under the Concept of OVOP

Neo-Town Resurrection Movement based OVOPRestoration of traditional township with new attractive concept

Revitalization of events, festival and sports activities

Paradigm shift from GNP society to GNS society

(Neo Showa Town <Takeda>, Mameta Commercial Town <Hita>, Usuki Samurai Town <Usuki>, etc)

Ajimu Green tourism, Kagura festival, Muddy Paddy Volleyball game, Kunisaki buddha marathon race, etc

Trend of GDP per Capita of Oita and its National Position

Position of Oita (%)

National

Oita

Progress of Oita’s Economic Position

2125⑧

2325⑦

2440⑦

2756①

2646③

2345③

2580④

2660②

2000

1153⑥

1151⑦

1203⑤

1299④

1333③

1143⑧

1341②

1576①

1979

Okinawa

Kagoshima

Miyazaki

OitaKumamoto

Nagasaki

SagaFukuoka

GDP per Capita in Kyushu Area (Trend and Rank)

Unit: 1000 yen

Source: Oita Prefecture in 24 years (Oita Govt)

ＧＮＰSociety ＧＮＳ Society

ＧｒｏｓｓＮａｔｉｏｎａｌＰｒｏｄｕｃｔ＝国民総生産

（県民所得）

ＧｒｏｓｓＮａｔｉｏｎａｌＳａｔｉｓｆａｃｔｉｏｎ＝国民充足度

（県民総満足）

Governor Hiramatu’s Proposal for OVOP


Mameda Town (Hita)

Leader Ishimaru

Old Town revival movement and its result

HIna doll Festval attracts people

Source: Home page of Oita Tourism Web site and 「一村一品運動20年


Ajimu’s Green Tourism

Shonai KaguraFestival

Jazz & Kagura music dance Source: Home page of Oita Tourism Web site and 「一村一品運動20年


8

Takeda’s Showa Town and Kitsuki’sSamurai town restoration attract many tourist

Takeda’s Showa town

Source: Home page of Oita Tourism Web site

Variety of events and sport attract people and richened people’s life

Muddy paddy volleyball game

Giant rope tugging competition

Kunisaki triathlon gameKunisaki Buddhist memorial marathon raceSource: Home page of Oita Tourism Web site and 「一村一品運動20年


Onsen Tourist resort revived

Nagayu Onsen resort

Yufuin Onsen resort

Source: Home page of Oita Tourism Web site

Fifth Step of OVOP (1993-2000)Towards Global Interaction of OVOP and International Exchange

Spreading OVOP Concept to Overseas and Deepening Mutual Interaction

Many Asian countries adopted OVOP for their Community Development and revitalization of rural industries

Expanding and Developing OVOP Concept toward Variety of Types

Many ideas were proposed under the OVOP framework

One Factory, One Product一廠一品運動 China Shanghai

中国上海市

One City, One Product一街一品運動 China Shanghai

中国上海市

One Village, One Treasure一村一宝運動 China Wuhan

中国武漢市

One Village, One Product一郷一品運動 China Jiangsu一鎮一品運動中国江蘇省

Exchange between Saemaul UndongMovement(Korea) and One village,One Product Movement(Oita)

One Village, One Product MovementOne Village, One Product Movement

One Tambon, One Productタイ王国 Thailand

One Barangay, One ProductOne Region, One Vision

フィリピン Philippines

Satu Kampung, Satu Produkマレイシア・ケダ州Malaysia Kedah

Back to Villageインドネシア東ｼﾞｬﾜ州Indonesia East Jawa

One Village, One Productカンボディア王国 Cambodia


H.E.Kim Dae Jung,President of Korea(1998)

Zeng Quinghong, Director of Organization Dept. of C.P.C. visited Oita

Meeting with President Bagabandi of Mongolia (21 Aug. 2002)

President Ramos of the Philippines visited Oita (Sep.1995)

Malaysia:Prime Minister MahathirBin Mohomad visits Oita(Dec.1991)

Many Asian Leaders visited Oita for discussing OVOP Movement


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Prime Minister Thaksin Shinawatra of Thailand

(Dec.22.2003, Prime Minister’s House)

タクシン首相来県（Ｈ13．11.20-21）

Minister Thaksin Shinawatra of Thailand visited Oita for Observing OVOP(Nov．20-21.2001) Source: Arranged of materials provided by 「ＮＰＯ大分一村一品国際交流推進協

会」（Oita OVOP International Exchange Promotion Committee）

Case of Thailand

Movement accelerated under Thaksin

One Tambon, One Product (OTOP)

Principles:1. To create income via self-reliance

2. Focuses on the ability of the local community to generate sustained income

3. “Product” include services, value added, environment protection, traditional knowledge, tourism, cultures, etc

Policy Rationale:

1. Employment and income creation for local community and people

2. Strengthening the capacity of the local community to be self-reliance

3. Promoting traditional knowledge

4. Promoting human resource

5. Encouraging creativity and innovations of the local community

Source: Montip Sumpunthawong “Globalization and Revitalization of Asia Local Economies; a Case of Thailand” submitted to IDEAS Follow up Seminar 2005

Objectives:

1. Developing local community capacity to create jobs, employment, income, and better standards of living

2. Strengthening the capacity of the local community to become self-reliance

Goals:

1. Generating better standards of living and higher income for the peoples in local villages

2. Enabling the local villages to become self-reliance



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Application of ‘OVOP Model for Regional Development’ of Asia

Necessity of seek the reason of OVOP’s adoption in many Asian countries

Realization of Value of OVOP Movement for Asian Rural Development

Clarification of Benefit of the OVOP in the Asian Local Communities

But new Concepts and Ideas should be introduced to fit the local condition

(1) Economic rationality: The process envisaged by the movement, of selective and concentrated use of limited resources to develop a certain ‘product’ to which value is added before sale, is a very rational process in economic terms.

(2) People’s empowerment: The product development process increases opportunities for interaction between local citizens and external markets, raising awareness and encouraging active involvement among local citizens.

(3) Community spirit and participation: Traditionally, Asian cultures emphasize strong bonds within the local community, and are thus the movement’s emphasis on cross-community participation is may be accepted easily.

(4) Decentralization of power: Decentralization and the allocation of power to regional governments is a major political trend throughout Asia. The movement provides an example of how local regions may increase their economic control and independence.

Rationale of the ‘OVOP Model for Regional Development’ of Asia

Policy Framework for the next 4 years (2005-2008) in Thailand

1. Poverty reduction

2. Human capital and social development

3. Correction of imbalance in economic structure

4. The Environment: Clean technology, sustainable development

5. International economic relations

6. Domestic affairs management

7. Active participation by people at all levels

8. National security

9. Direction of fundamental development policy of the country


From EAEM to Dual Track Development Model of Thailand

Dual Track Development Model

Parallel emphases on tow pillars

First track emphasizes FDI and manufactured exports under economic integration with rest of the world

Second track: domestic and grassroots

Domestic demand element

Local enterprise element

1. OTOP2. Village funds,3. 3.SMEs Bank and People Bank4. Venture Capital5. Housing project and housing loans for GPF

members and SOEs employees6. Capital Creation7. Low price computer and internet fees8. 30 Baht health care 9. Life insurance policy for low income

Global competitiveness


Strategies:

1. Utilizing traditional knowledge, local labor and resources in the production of local products with strong distinctive local attributes

2. Focusing on products that do no produce undesirable externalities to the environment and natural resources

Government agencies involve:

1. The national executive committee of One Tambon One Product

2. The Department of Export promotion

3. The Thai Industrial Standards Institute



“Intrinsic Growth” Approach and “Decentralization”being major political agenda in Asia

Revitalization of Local economy and industry became Urgent issue for the developing Asia

Sustainable development, HRD, effective institutional management became common approach for advancing development

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Method of Regional Economic Revitalization

○外発型の地域開発 “EXTRINSIC” Method他の地域から企業を誘致して新しい産業を興していく手法

To invite various businesses from other regions to promote new industry

to thrive

○内発型の地域開発 “INTRINSIC” Method地域にある資源・文化・技術を活用して地域経済を活性化する手法

The regional economy will be vitalized from within the actual community

through having ownership to promote things that are essentially innateto the region including regional resources, local culture and technicalknowledge.

※一村一品運動＝内発型の地域開発The One Village, One Product Movement = “INTRINSIC” Method

Source: 大分国際協力推進協会

Similarities between “Intrinsic Model” and “Oita Model”

Sustainability

Consciousness, institutionalization, and participation

Internalization of development mechanism

Synergy of traditional value with new focus

Global aspects and global approach

Increasing concerns for OVOP model for regional vitalization policy in the Asia

General Concept of OVOP/OTOP Movement in Asia

Different Concepts and Variety of Styles

Different Goals by Different Development Stage

Different Stages but Common Features

Goals of OVOP/OTOP and Similar Policy Frameworks

(A) Poverty alleviation and opportunity of income generation

(B) Increasing employment opportunities

(C) Narrowing gap btw Urban and Rural areas

(D) Mitigation of depopulation trends in Rural area

(E) Protection of environment and stable & safe society

Common Features

(1) Finding efforts to potential local resources

(2) Looking and focusing on suitable products/services with global eyes

(3) Exploring the new market possibilities (Export, Domestic)

(4) Quality improvement of the products/services for marketable level and higher-up the value added

(5) Empowerment of people and communities through the movement

(6) Pursuing sustainability and stable society

Indonesia:

Promotion of Eastern Remote area’s development by producing local handcrafts

(Weaving, wood decollation, etc)

Promotion and empowerment of SMCI

Main Goal: --- (A), (B)

Main Feature --- (1), (2), (3)

Non-OVOP but general industrial promotion of backward area

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Korea:

Revitalization initiatives of rural communities

(Contest of village communities capabilities )

Marketing agricultural products, amenities, green tourism etc (NRVM of Kangwon Prov.)

Goal: --- (E), (D), (C)

Main Features --- (5), (6)

Non-OVOP but Community development policy

Laos

Promotion of handcraft industries and their marketing

(Financing, technology assistance, trade fair, training service)


Main Features --- (1), (2), (3),(4)

Not yet adopted OVOP but hope to be taken similar policy

Nepal:

Formation of policy and strategic planning for sustainable tourism development with village empowerment

(Tourism for Rural Poverty Alleviation Program <TRPAP>))

Promotion of Village Tourism <Program2> and Micro-enterprise Dev Program; MEDEP Program<Program3>


Main Features --- (1), (2), (5)

No OVOP but similar programs coordinated by UNDP, However highly contributive if OVOP programs are adopted

(Sirubar’si village tourism; Bee keeping in Baitadi)

Bangladesh

Promotion of Small and Cottage Industries by forming industrial clusters and estate for them


Main Features --- (2), (3),(4)

Not yet adopted OVOP but similar promotion policies have been taken

Promotion of unique products by specific village(Jamdani Saree – Noapara)

Difficulties and Challenges regarding OVOP

Poor coordination of government

Lack of basic infrastructure

Lack of people’s awareness

Poor available resources

Political stability

Future Hopeful Direction of Neo OVOP

Exchange of experience

Solid framework fitted to the surrounding conditions

Strong international commitment of NGO and Int’l Organizations

People’s strong commitment

Effective use of University resource & public R&D Center

Balancing with national macro industrial policy

13

Concept of Survey on the Local Initiative Development Model by OVOP Movement

Pilot Project for Regional Industrial development

Japan Model

Asian Local Industrial Dev Model

Information Center for Asian Local Initiative Industry in OITA

・ Human Resource

・ Organizations

・ Leadership

・ Local Govt

・ Resources

・ Planning

・ Industrial Org

・ Finance

Local Govt, Industrial Association, Cooperatives, SMEs, NGO、NPO, etc

Oita Model

Comparison & Theorization

（Apply)

（Pilot Project)

（Research Items)

Region’s Existing Pattern

Thank you very much for your attention

Kunio IgusaRitsumeikan Asia Pacific UniversityJumonjibaru 1-1, Beppu City, Oita, JapanE-mail: [email protected]

END

main point of today’s presentation: local development ...main point of today’s presentation: 1....

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