Dianna DaSilva -Glasgow Social Science Research Seminar October 17, 2012

COUNTRY MAPPING EXERCISE: GUYANABASED ON cCFC Workshop, July 9- 13, 2012Institute of Critical Thinking, UWI, St. Augustine, Trinidad and Tobago Dianna DaSilva-Glasgow Social Science Research Seminar October 17, 2012

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine WHAT ARE CLUSTERS? “Clusters are geographically close groups of interconnected companies and associated institutions in a particular field, linked by common technologies and skills. They normally exist within a geographic area where ease of communication, logistics and personal interaction is possible. Clusters are normally concentrated in regions and sometimes in a single town”. (Michael Porter)

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine WHAT ARE CLUSTERS? • Key aspects of Definition: • “Clusters are groups of independent companies and associated institutions that are: • Collaborating and competing; • Geographically concentrated in one or several regions, even though the cluster may have global extensions; • Specialised in a particular field, linked by common technologies and skills; • Either science-based or traditional; • Clusters can be either institutionalised (they have a proper cluster manager) or non-institutionalised.”

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine Overview of Main Economic Sectors • Agriculture; rice and sugar • Mining and quarrying; gold and diamond production • Manufacturing; food and beverages • Services; wholesale and retail distribution and telecommunications

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine BACKGROUND & FOCUS OF THE MAPPING EXERCISE • The mapping process was mainly business oriented but with implications for policymaking and academic research. The focus of the exercise was informed by the following factors:

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine BACKGROUND & FOCUS OF THE MAPPING EXERCISE • Attempts at clustering in Guyana through an initiative of the USAID, Guyana Trade and Investment Support Programme (USAID/GTIS) (fisheries and aquaculture) did not produce much result. Notwithstanding this experience clusters can work. It is therefore necessary to revisit and re-convince the private sector of the benefits and likely impact of clusters.

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine BACKGROUND & FOCUS OF THE MAPPING EXERCISE • Supporting the identification of competitive, productive and profitable business opportunities in Guyana given that: • Significant scope remains for enterprise development and investment. • Need for diversification of the economic and productive base of the country consequent to several exogenous shocks such as the erosion of preferences for sugar, which has been an economic mainstay of Guyana for decades.

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine OBJECTIVES • The exercise sought to identify clusters that can have the following impact in the medium to long term: • support competitiveness and increased productivity • increase employment and skills development in Guyana • increase the export base of Guyana • support the Diversification Programme and the Low Carbon Development Strategy of the Government of Guyana

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine METHODOLOGICAL APPROACH FOR CLUSTER SCREENING IN GUYANA

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine STEP 3: Draft Analysis of the business characteristics

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine RESULTS

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine Business Database • The total number of companies within Guyana= 8888, 5465 of which are listed as companies and 3423 as individuals. • Four sectors are examined: • Jewellery Manufacturing; • Apparel, Textile and Garment; • IT-enabled services • Furniture Manufacturing • The number of companies examined under the four sectors came up to about 704 or 8% of the total business population in the country

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine Business Database

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine Business Database • The activities of businesses were broadly defined based on International Standard Industrial Classification (ISIC) codes revision 4. • The size of businesses was defined as the number of employees based on the following criteria was used: • A large company is a company with >100 employees • A medium company is a company with 21-100 employees • A small company is a company with 5-20 employees

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine BUSINESS SEGMENTS: Furniture Manufacturing

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine BUSINESS SEGMENTS: IT-Enabled Services

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine BUSINESS SEGMENTS: Textile, Apparel, Clothing and Garment

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine BUSINESS SEGMENTS: Jewellery Manufacturing

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine VALUE CHAIN ANALYSIS: Hand-crafted gold jewellery

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine VALUE CHAIN ANALYSIS: Wooden furniture manufacturing

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine VALUE CHAIN ANALYSIS: Garment manufacturing

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine VALUE CHAIN ANALYSIS: BPO Services

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine CLUSTER DEFINITION

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine FIVE FORCES MARKET ANALYSIS: Wooden Furniture Manufacturing

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine FIVE FORCES MARKET ANALYSIS: Garment Manufacturing

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine FIVE FORCES MARKET ANALYSIS: BPO Services

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine CLUSTER PRIORITIZATION AND SELECTION

CCFC Workshop, July 9-13, Institute of Critical Thinking, UWI, St. Augustine Thank you

Dianna DaSilva -Glasgow Social Science Research Seminar October 17, 2012