Dilemmas and Problems in PACA

1. Dilemmas and Problems in PACA Jörg Meyer-Stamer jms@mesopartner.com Shawn Cunningham shawn.cunningham@gtz.de

2. Essence of PACA • Efficient facilitation of LED • Mobilise local knowledge • Connect local knowledge and players • Connect and contrast local and external knowledge • Contrast perceptions and facts • Make local players learn that they can do things they never thought of • Permits local government to project commitment to business, to establish communication channels with business.

3. PACA: Dilemmas and key problems • The planning vs. learning-by-doing dilemma • The donor-prominence dilemma • The buy-in dilemma • The ends vs. means problem • The time-frame dilemma • The problem of fragmentation • The dilemma of co-ordination and overload.

4. The planning vs. learning-by-doing dilemma

5. What is the planning vs. learning-by-doing dilemma? • You understand a problem much better when trying to solve it rather than trying to analyse it • during research, some role players and interests remain invisible • during research, some issues are avoided, e.g. because they are embarrassing.

6. How to address the planning vs. learning-by-doing dilemma? • PACA has an inherent tendency to address this dilemma • Problems arise with actors who find it difficult to get out of a planning-driven mode • Include some medium to longer term activities for the role-players that are planning driven • this will keep them interested and involved • Be careful not to create either / or situation! Rather prove that some smaller activities can rejuvenate or supplement long term plans that are stuck.

7. The time-frame dilemma

8. What is the time-frame dilemma? • Private businesspeople think in short time-frames (months) • Public sector actors think in longer time-frames (budget years, election periods).

9. How can we address the time-frame dilemma? • Try to identify activities that cater for both time-frames • Make sure that both public and private sector champions understand the different time-frames.

10. The Public sector vs. Private sector dilemma

11. Where does the Public sector vs. Private sector dilemma come from? • Government agencies often have the LED mandate, but not the resources nor capacity • Private sector is often stubborn or inwardly focused, not being present at the social or community level • Private sector is often seen as sponsors, not as contributors • Private sector does not know that it can play a catalytic role by being more involved • Mistrust between stakeholders due to ideological differences

12. How to address with PACA: • Get private sector to take certain activities forward collectively • Get private sector to invest time and resources, not necessarily just money • Build trust and relations between PS and PS by creating successful collaborative ventures • Develop communication events/systems between both sides

13. The Small firm vs. Large firm dilemma

14. Where does the Small firm vs. Large firm dilemma come from? • LED often tends to focus on the one at the expense of the other • Many if not most successful small firms are spin-offs from larger firms • Jobs lost in large firms are not made up by small firm formation • Can job losses be curbed?

15. How to address with PACA: • Get all types of business (even potential business) involved • Address the problems of existing firms to reduce job losses and promote local investment (input factors) • Build relationships between large and small • Get small firms to respond to local needs

16. The donor-prominence dilemma

17. What is the donor-prominence dilemma? • The presence of a donor organization during a PACA Exercise creates the expectation among local stakeholders that the donor will solve their problems • donor can be foreign aid organisation or national / provincial entity • The endorsement by a foreign or higher-level donor organization can be helpful in persuading local actors that a PACA is a worthwhile effort • An external / foreign donor organisation will often cover the initial cost of conducting a PACA exercise • Local actors expect an ongoing financial stream from the donor.

18. How to address the donor-prominence dilemma? • Do the build-up of a PACA properly and emphasize the dominating role of the local champion • Advise donor organizations to keep a low profile in PACA Exercises • Promote the local host (or institution) as the host, initiator and driver • Pursue a consistent management of expectations.

19. The buy-in dilemma

20. What is the buy-in dilemma? • An effective PACA Exercise creates a strong buy-in by local stakeholders • The effectiveness of a PACA Exercise depends on the buy-in during the build-up phase.

21. How to address the buy-in dilemma? • Make sure that you identify a strong, reputable, well-connected host for the PACA Exercise • Undertake a serious effort to recruit competent local members of the PACA Team • Develop a consistent marketing and PR effort in the build-up phase • If you face too limited buy-in in the build-up • consider to call off the exercise • consider to do awareness-building (LED Café, LED training) • a visit by an LED stakeholder from a location with a successful LED process may help.

22. The ends vs. means problem

23. What is the ends vs. means problem? • Actors in local / regional development initiatives often confuse ends and means • Collaboration = means • Network-building = means • Strengthening business development services = means • Having effective associations and chambers = means • Formulating a strategic plan = means • Strengthening competitiveness = end towards the bigger end of creating wealth.

24. How to address the ends vs. means problem? • Point out the possible confusion during the Results Workshop • Check the proposals: Do they confuse ends and means? • Promote the idea that LED is a complex system that requires multiple inputs from multiple stakeholders to achieve complementary objectives that are not always directly related • point out that everything adds up and that not one single approach will solve local problems.

25. The problem of fragmentation

26. What is the problem of fragmentation? • Organisations report vertically • Different organisations report to different top structures • Horizontal communication is rarely part of performance criteria • Different organisations have varying organisational cultures and communication styles • Different organisations often have conflicting objectives.

27. How can we address the problem of fragmentation? • Identify opportunities for organisations to meet their performance objectives • Identify win-win-opportunities: • two or more organisations working together to address a specific, clearly defined opportunity or problem • each organisation has a better chance of meeting its performance objectives.

28. The dilemma of co-ordination and overload

29. An Institution in created to solve it Another Institution created to solve it Another Institution created to solve it Another Institution created to solve it Another Institution created to solve it Problem only partially solved, or new problems created Problem only partially solved, or new problems created Problem only partially solved, or new problems created Problem only partially solved, or new problems created Fragmentation discovered as new problem Where does the dilemma of co-ordination and overload come from? Morale of the story: • Persistent problems generate waves of (public) initiatives • Institutions are created without an exit-strategy • Increasing layers of institutions lead to a proliferation of co-ordination • Co-ordination institutions are perceived as competitors and reinforce fragmentation A Problem

30. Exploding co-ordination effort • Let us assume that you need 15 minutes per week for co-ordination with each other institution in your field, and to observe co-ordination between other institutions. • With n other institutions, this takes x percentage of your weekly time: 2.5 % 15 % 50 %

31. How to co-ordinate?The PACA view • Don’t co-ordinate • death of LED by committee • don’t start LED with exhaustive co-ordination • Create occasions for collaboration • Identify quick-win projects • preferably fixed-term • co-ordination and collaboration is a means, not an end in itself • Identify and plan joint projects using highly efficient PACA workshop formats.

32. Thank you for your attention!