USAID, JE Austin do their part for Sri Lanka

The Competitiveness Programme concludes project in Sri Lanka
Lessons Learned Workshop brings together eight industry clusters
Forward strategies mapped out post-TCP(Bullets)

The Competitiveness Programme (TCP) drew its six-year project in Sri Lanka to a close with a Lessons Learned Workshop on August 6th and 7th, bringing together the eight industry clusters that had worked with TCP, a U.S. Agency for International Development (USAID) programme, to share experiences and engage in frank discussions on the pros and cons of different cluster activities. During the two-day workshop, each cluster presented reviews of initiatives pursued as part of their cluster development strategies, followed by discussions of initiatives that had succeeded or failed and what lessons could be drawn.

TCP has been USAID’s flagship economic growth programme since 2001 and is focused on private-sector-led development using a cluster approach to advance Sri Lanka’s competitiveness in the global marketplace. The eight industries, namely ceramics, coir, gems and jewellery, ICT, rubber, spices, tea and tourism all agreed to form special working groups or ‘clusters’, replicating the ‘value chain’ of that industry in Sri Lanka. The clusters included not only members from exporting firms but also from activities linked to those exports extending backward to factories, plantations, and associations of rural small holders or microenterprises. Each cluster also reached out to include key government agencies in government and academic centers with resources to help them overcome obstacles to improve competitiveness. The value-chain perspective facilitated better strategic analysis and helped disseminate new knowledge and best practices.

Inaugurated by the U.S. Embassy Chargé d’Affaires James R. Moore and concluded by USAID Mission Director Rebecca Cohn, the workshop showcased a series of presentations by industry executives on cluster competitiveness, strategic marketing and branding, workforce development, rural linkages of competitiveness initiatives and public-private cooperation on policy affecting the business environment. Citing examples such as a hot-air drier for spice-growers in Matale, improved looms for coir fiber geo-textiles and rubber seedling cultivation in Eastern Sri Lanka Mr. Moore said, “The winning initiatives in the TCP programme emerged from the efforts of dedicated individuals from the private and public sectors invested in working with fellow cluster members and specialists from TCP to implement strategic ideas that benefit not just one firm but the entire value chain.”

In wrapping up the workshop President/CEO of J E Austin Associates Inc. Kevin Murphy maintained that over the course of the project there had been a paradigm shift in how the private sector approached industry issues and engaged the government. The private sector has grown increasingly comfortable with taking more initiative and responsibility. “This”, he said, “was due in part to TCP acting as a catalyst and a neutral broker helping to create trust among industry participants and opportunities to work together

Agricultural Economist Christa Lachenmayr of Nathan Associates Inc. discussed future opportunities for the clusters to continue improving their competitiveness post TCP. “Supply-chain initiatives have the potential to impact a large number of rural beneficiaries, but while the incentives exist for business owners and exporters to increase quality, excessive attenuation through layers of traders and middle men means that the incentives are not yet readily available or apparent to the smaller producers; so there is still more work to be done.”

Chief of Party TCP, John Varley who moderated the workshop thanked his hard-working team whose efforts have not gone unrecognised by the industry clusters. Summarising cluster and industry achievements, Mr. Varley said, “The clusters have demonstrated the value they can add to national development. In 2006 the export earnings for all firms in the eight sectors with TCP clusters totaled $2.3 billion up from $1.5 billion in 2000 and $1.2 billion in 1995 –Growth in the years since 2001 is double that of the years prior the TCP clusters. That rapid growth is what Sri Lanka needs to create jobs and improve standards of living.” In addition the Rubber, Coir and Tourism clusters have all played key lead roles in attracting more million of dollars of international funding for development projects in their sectors. All clusters have worked with government on practical policies to promote competitiveness and with academic centers on resource and workforce development projects.

Ms. Cohn closed with a round of congratulations to all partners in the project, expressing USAID’s pride in a long list of successful partnerships with Sri Lanka’s private sector., She pointed out that the “value chain” approach to development, pioneered by USAID in Sri Lanka under TCP has since been emulated in many other countries. “Competitiveness” she said “is the drive to improve on past performance. The day should never come when we stop asking how we can improve the way we live, work and govern ourselves.