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Poverty Community of Practice Meeting MSME Development in Central Asia

Poverty Community of Practice Meeting MSME Development in Central Asia. Wojciech H übner. Regional Economic Advisor in Central Asia. Issyk-Kul, 16-18 November, 2004. MSME development. Fundamentally important Context of poverty alleviation “ From job seekers to job creators ”

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Poverty Community of Practice Meeting MSME Development in Central Asia

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  1. Poverty Community of Practice Meeting MSME Development in Central Asia Wojciech Hübner Regional Economic Advisor in Central Asia Issyk-Kul, 16-18 November, 2004

  2. MSME development • Fundamentally important • Context of poverty alleviation • “From job seekers to job creators” • Powerful vehicle to help change attitudes • Multiplier effect • Market economy – as close as one can get * * * • Use accumulated knowledge – selective new approach – synergies and cooperation Poverty Community of Practice Meeting, Issyk-Kul, 16-18 November 2004

  3. MSME sector – Among remaining challenges • Deficiencies of business environment • Unclear entrepreneurial perspective • Limited decentralisation • Shadow economy • Too few innovative businesses • Corruption • Limited results in entrepreneurial development • Behavioural and cultural change • Donor community: fragmentation of the development effort Poverty Community of Practice Meeting, Issyk-Kul, 16-18 November 2004

  4. What kind of technical assistance initiatives should be of primary focus for the UNDP? • Which should be the target areas? • How to best implement the decided strategy? Poverty Community of Practice Meeting, Issyk-Kul, 16-18 November 2004

  5. Complexity: Focus on coordination with other donors; search for strategic alliances; Constraints: Preference given to the extension, strengthening and complementing the already successful line of UNDP’s assistance; Use our own assets: Exchange of best practices among CA countries; Poverty Community of Practice Meeting, Issyk-Kul, 16-18 November 2004

  6. SME technical assistance: • Should respond to actual, recognised and important needs; • Be highly efficient. The sources of efficiency may stem from an advantageous positioning of the UNDP, and /or specific experience already gathered; • Bring clear value added; • Possibly create valuable synergies with other UNDP activities; • Should be consistent with the general UNDP’s strategy for Central Asia. Poverty Community of Practice Meeting, Issyk-Kul, 16-18 November 2004

  7. Proposed target areas A. Strengthen Poverty Alleviation / Social Mobilisation / Micro-crediting programs and projects by adding SME development component (new Business Development Centres, business incubators, intensive training based on case studies, apply external and CA best practices); B. Help broaden MSME financing; C. Combat shadow economy and reducing its negative impact; D. Focus on Entrepreneurial Development; E. Increase e-competence in doing business; F. Develop MSME connections to trade development and to foreign investmentprojects. Poverty Community of Practice Meeting, Issyk-Kul, 16-18 November 2004

  8. Implementation of the MSME development strategy – main guidelines 1. Use the MSME development as a link for subregional initiatives 2. Improve/develop efficient partnerships with governments 3. Aim at setting up of permanent structures; viable after the project is over; 4. Broadly use cooperation with Associations, NGOs – with ultimate focus on final end-users Poverty Community of Practice Meeting, Issyk-Kul, 16-18 November 2004

  9. 5. Promote role of woman-entrepreneurs 6. Further decentralize assistance effort 7. Support only realistic E-strategy 8. Promote spirit of openness and export orientation in SME development 9. Accept only result-oriented initiatives, however adjustable over time 10. Promote broad participation of UNDP COs staff in regional initiatives Poverty Community of Practice Meeting, Issyk-Kul, 16-18 November 2004

  10. The follow-up: 1.Nextinput: national feedbacks to be incorporated in the next version of draft Strategy (types of activities, concrete initiatives, events, etc.). 2.New version of the draft – with national supplements and a matrix: countries /priority SME activities. 3.SME subregional specialists roundtable Poverty Community of Practice Meeting, Issyk-Kul, 16-18 November 2004

  11. 4.Set up permanent CA SME Task Force – SME development intellectual centre (with a database and website). 5. Discuss proposed subregional and national strategies with leading government institutions and business associations 6.Formulate 2-year Action Plan 7.SME Subregional Conference – according to Subregional, iterative and participatory approach Poverty Community of Practice Meeting, Issyk-Kul, 16-18 November 2004

  12. Thank you Poverty Community of Practice Meeting, Issyk-Kul, 16-18 November 2004

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