s e q Case Study Northeast Brazil: How a Business Membership Organisation can Contribute to Improving the Business Environment

Transcription

1 s e q u a Breakout Session 1.3: Improving the Business Environment at the National Level Case Study Northeast Brazil: How a Business Membership Organisation can Contribute to Improving the Business Environment by Dr. Ralf Meier, SEQUA Bonn Martin Wahl, bfz Hof

2 Contents Background The Project Concept Brazilian Partner Organisation Effects on the Business Enabling Environment Problem Areas Achievements Methods Some Statements for Discussion 2

3 1. Background The Clothing Industry is a Major Factor for the Economic and Social Development in the State of Pernambuco, Northeast Brazil Pernambuco belongs to the least developed parts of Brazil The clothing industry provides up to 100,000 jobs A major cluster of firms arised in the semi-arid Agreste region The industry is dominated by small and medium enterprises Some characteristics of the industry: low product diversification and product quality growing competition form Asian producers unsolved waste-water problems lack of demand-oriented vocational training no public-private dialogue between government and industry 3

4 2. The Project 2.1 Concept SME-Promotion through BMO-Development Project objective: SME-promotion Project duration: Project approach: Twinning of BMOs German partner: bfz ggmbh, Bavaria Brazilian partner: SINDIVEST Expectations towards SINDIVEST in the project Improve business services for SME Advocate for a better business environment for SME 4

5 2. The Project 2.2 Brazilian Partner Organisation Despite its Limitations SINDIVEST was the Appropriate BMO-partner Characteristics: Official employers' association of the garment industry in Pernambuco Up to 1996 only active in Recife less than 100 members No business services, no local offices Membership is open only to registered enterprises Reasons for selection: New leadership took initiative Creating a new association would be artificial Industry representation will be more successful when speaking with one voice 5

6 3. Effects on the Business Enabling Environment 3.1 Problem Areas Problems were Identified Jointly by the Partners during Project Implementation a) Environmental Protection huge waste water problems caused from denim washing shortage of water b) Qualification and Product Quality industry concentrated on low-priced garments / no product development lack of skilled labour and design ideas c) Taxation and Regulation extreme high proportion of informal enterprises no government control, no government support 6

7 3. Effects on the Business Enabling Environment 3.2 Achievements Networking and a Flexible Approach at Different Levels were Key Factors for Success a) Environmental Protection awareness created pilot sewage plant developed different stakeholders (university, city administration, public prosecuter for environmental affairs, private firms) brought together 70 % waste water is covered by sewage technology b) Qualification and Product Quality the public training institution SENAI set up 3 technical colleges for textile engineers number of participants in relevant trainings increased from 100 in 1997 to 1000 in 2002 improved design courses at the Recife University c) Taxation and Regulation public private dialogue initiated sales tax for the sector reduced from 17 % to 4 % 1000 SME decided to register 7

8 3. Effects on the Business Enabling Environment 3.3 Methods Means of Support concentrated on Exchange of Experiences and Know How Transfer Facilitation of coalitions and networks Exposure to and advise from Germany Flexible project planning Micro, meso and macro interventions Encourage change agents 8

9 4. Some Statements for Discussion Business Membership Organisations are legitimate and appropriate bodies for influencing the business environment Strengthening of BMOs leads to a more balanced power and raises the level playing field for public private BMOs are able to motivate the business community to assume responsibility for social and environmental issues Donors and development agencies should provide expertise and instruments, but not set the policy agenda 9

10 Contacts Dr. Ralf Meier Martin Wahl SEQUA ggmbh Foundation for Economic Development and Vocational Training Alexanderstr. 10 D Bonn Germany Phone +49 (0) Fax +49 (0) Mobile +49 (0) meier@sequa.de Internet bfz ggmbh Training and Development Centers of the Bavarian Employers' Associations Schleizer Str Hof Germany Phone ++49 (0) Fax ++49 (0) wahl.martin@bln.bfz.de Internet 10