Evolution of Government’s Role on Economic Development. 23 rd January, 2009. J I C A. Masaki Miyaji. Japan Today. Small Islands surrounded by sea ( Land area : 338 Sq Km, less than 1/2 of Zambia, Its 70% is mountainous) Population : 127 Million (X 12 of Zambia)
23rd January, 2009
J I C A
( Land area : 338 Sq Km, less than 1/2of Zambia, Its 70% is mountainous)
Human Capital Resources Development
Experiences and Instructions
of FDI （Foreign Direct Investment）
“Mozal Project” in Mozambique
Japanese experiences in developing Investment by the Private Sector
(Large enterprises and MSMEs)
Investments by the private Sector
(Large Enterprises and MSMEs)
MSMEs are companies with <300 regular employees (<100 in wholesaling & services, <50 in retailing, eating & drinking places) or with capital stock of < \300 million (US$ 2.7 mill) (< \100mill in wholesaling, < \50 mill in services, retailing, eating & drinking places)
Small enterprises are companies with <20 regular employees (<5 in wholesaling, retailing & services)
Japan’s (2004/2005 Policy fostering Economic Development and Changing Business Climate
High Growth Era
Stable Growth Era
●The War destroyed production & distribution facilities
●The economy was democratized such as:
① Land Reform② “Anti-Monopoly Law” established
③“Trade Unions” allowed④ “Conglomerates” resolved
● “Priority Production Systems” as a core industry
①Iron-Steel manufacturing ② Shipbuilding ③ Coal Mining
●Fostered SME’s (established SME’s Agency)
●Improved diverse infrastructure, such as Laws, Systems & Institutions and Electricity, Railway, Port, & Road
●Established Financial Institutions to supply ample Funds
RECONSTRUCTION DAYS (2004/2005（1945-1954）
～Establishment of Institutional Framework～
Small & Medium Enterprise Agency (1948)
Small & Medium Enterprise Credit Insurance Law
Small Business Finance Corporation
People’s Finance Corporation
Credit Guarantee Association Law
Corporative Union Law
Credit Guarantee Association
Micro, Small Enterprises
High Growth Era
HIGH GROWTH DAYS (2004/2005（1955-1972）
How to Tackle “Dual Economy”
～Coping with “Dual Economy”～
~STRONG～ LARGE FIRMS
Modernization of Equipments or MSMEs
Lower Corporate Tax for MSMEs
Exemption of MSMEs from Anti- Monopoly Law
Revitalization of MSMEs Nationwide
Phase Two: Stable Growth Era ~ (2004/2005
Stable Growth Era
Business Climate Change (2004/2005
Human Recourses Development
Small & Medium Enterprise College
・Modernization of Equipments
・Government Financial Institutions
Small & Medium Information Centers
・Legal Institutional Framework
STABLE GROWTH DAYS（1973-1984）
Towards Knowledge Intensification
Virtuous Trajectory of Industrial Clusters (2004/2005
Infinite Business Opportunities
“Qualitative Improvement” Phase
Limited Job Creation
“Quantitative Expansion” Phase
Geographical Concentration of Enterprises
Increasing Employment Opportunity
Ohta (2004/2005-ku, Tokyo(Population 667 Thousand)
・Industrial cluster for mechanical metalworking
Less than 5 Employees occupy almost 60%.
Bird’s Eye View.
Kamijima Heat Treatment Industry （42 Employees）
・Heat treatment which makes stiffness of the cutting utensils (brooch, hob, drill.) .
Azuma Manufacturing Factory
・Slotter (the machine to
process the groove inside
the gear) is processed.
・Precise processing to the
curved surface are possible.
Sources： Ministry of Public Management, Home Affairs, Posts and Telecommunications 「A Statistical Table for Companies」
Higashi-Osaka City (2004/2005(Population 513 Thousand)
Tokai Factory (18 Employees)
・Industrial cluster for machinery plastics
・Philosophy is “ Only One“
・”Niche Top” MSMEsare 61/ 548 in Japan.
・ Plastic formation and the quality control aspect 3 dimensional measurement equipment of computer control.
・ Interior part ( for high accuracy formation technology of the micro unit ).
”Special Economic Zone for Manufacturing”.
Bird’s Eye view
Asahi Manufacturing (121 Employees)
・Part product enterprise (worldwide share 80%), concerning the cylinder head which is the heart of the VTR from compilation to casting.
・ Various aluminum materials.
Suwa (2004/2005-City, Nagano（ Population53 Thousand )
・Industrial cluster for precision instrument industry
・De facto “Oriental Switzerland"
・Aiming toward “Manufacturing Kingdom Suwa”
Bird’s Eye View
( 250 Employees)
Production of the clock part, other than
precise part processing.
Tsubame-Sanjo City, Niigata (2004/2005
（ Population44 Thousand)
・Industrial cluster for the metal house wear
Ezawa Manufacturing（17 Employees）
Stainless steel, aluminum, iron, brass and titanium.
Experiences and Instructions of (2004/2005FDI （Foreign Direct Investment）“Mozal Project” in Mozambique
Mozal S.A.R.L. (2004/2005
Mozambique at a Glance (2004/2005
GDP: US$2.897 billion
GDP: US$7.839 billion
Photograph taken before 2005
Cutting Edge Facility
Data Source: IMF World Economic Outlook
IMF staff estimation for 2007
Mozal General Overview (2004/2005
MOZAL Project Scheme (2004/2005
The production cost is the cheapest in the world.
This project is strong against depression through special purchasing contract of 2 major cost factors, electricity and alumina.
Q: No bauxite - Alumina, in Mozambique.
Electricity coming from SA.
A: 1)Potential charm point: Cahora Bassadam
– future Hydroelectric-power generation
Full production would fully cover the electrical demand in whole Africa of today.
2)Port capability in Maputo
MOZAL CSR Activity (2004/2005
Mozal Community Development Trust (MCDT)
In Mozal Board, amount and
menu of activity of MCDT is
checked and discussed.
MCDT has close
communication with Mozal every month.
Financial and Know-
IFC, Government, NGO
MCDT Activity (2004/2005
Support to the Chicken Farm
Agricultural Development Program
Production of the Carpets
Teacher’s training and capacity building
Donation of the computers to the University
Support to the Primary Schools
Donation of the equipment to the Hospital
Support to the National Park
Total Control of the Epidemic
Sponsoring of the art exhibition
Uniforms distribution to the teams
Community Sports Tournament
Construction of the Clinic
The Importance of
Human Capital Resources Development
Collaborating with Research Institutes
Stable Operational Financing
Go for a “Niche” Markets
Challenge the “Status Quo”
Backbone of the Economic Requirement
Drastic Increase in High School Attendance
Almost 100% Enrollment Ratio
Within 50 years
Basic Literacy Improvement
Students Pursuing Higher Degree Sky-rocketed
Source： Ministry of Education, Culture, Sports, Science and Technology
”Basic Report on Schools”2004
～”Sequencing” IS THE KEY WORD～
・Appropriate Tax regimes
・Proper Legal/Institionary Framework
－Export Credit －Insurance
・Technology Transfer From Abroad
・EPZs(Export Processing Zones)
・Enactment of basic SME laws
・Primary Industry Development
－TA for Farmers
－Initiation of fishers Program
・Basic Infrastructure Development
－Road, Bridge, Ports etc.
Ⅳ. INDUSTROAL AGGLOMERATION
Ⅲ. REGIONAL INDUSTRIES
・New Product Development
・「One Taw ban, One Products」Initiative
・Rural Credit Scheme for SMES
・Credit rationing by the Governments
・Collaboration via Cooperative in
－Identification of Market Needs
(ex) African Food Show Case
・Rural Credit Scheme for Individuals
(ex）Gramean Bank Model
Ⅰ. NEED × SEEDS