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Improvement Rural Living Condition Through One Village One Product (OVOP) Movement. Presented By: Bagus Santoso Agung Nur Fajar. ASEAN Workshop, Yogyakarta, 13-14 March 2014. Background The Original OVOP. The OVOP Program originated from Oita Prefecture, Japan in 1979

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Improvement Rural Living Condition Through One Village One Product (OVOP) Movement


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  1. Improvement Rural Living Condition Through One Village One Product (OVOP) Movement Presented By: BagusSantoso AgungNurFajar ASEAN Workshop, Yogyakarta, 13-14 March 2014

  2. BackgroundThe Original OVOP • The OVOP Program originated from Oita Prefecture, Japan in 1979 • Oyama'sgeographical disadvantage as a mountainous area resulted in very low incomes from agriculture productions and high rate of urbanization • OVOP was initiated to improve the level of income and reduce the rate of urbanization through • Diversification of the town's agricultural practices • Assist farmers to move their agriculture production from traditional rice to new plum and followed by high-end mushroom and herbs production

  3. The Original OVOPBenefits of OVOP • Achievement of the original OVOP movement • Decrease in urbanization, from 7,000 before the movement to less than 4,000 after the movement and stabilized thereafter • Oyama's agriculture income has increased significantly to 5.49 billion yen of sales output in 2008 • Due to success implementation of OVOP program, OVOP has been adapted in many countries, including in ASEAN countries

  4. Project Design Guidelines

  5. OVOP Project Design:Country-Specific Research Characteristics of OVOP Best Practices Assess the Possibility of Adapting OVOP Program Success Keys of OVOP Program Country Specific Research Identify Challenges and Possible Solutions SWOT Analysis

  6. PROGRESS REPORT: Mini Survey and Comparative Study Visits

  7. Mini SurveySMEs/Cooperatives/OVOP Producers

  8. Mini SurveySMEs/Cooperatives/OVOP Producers

  9. Mini Survey Policy Maker Japan Indonesia Cambodia Thailand Vietnam

  10. Mini Survey Policy Maker Philippines Lao Brunei Darussalam Myanmar Malaysia

  11. Purpose/Objectives of Adapting OVOP Movement

  12. Purpose/Objectives of Adapting OVOP Movement

  13. Main FindingsGovernment Functions Japan Indonesia Cambodia Thailand Vietnam

  14. Main FindingsGovernment Functions Philippines Lao Brunei Myanmar Malaysia

  15. Main FindingsFeatures Japan Indonesia Cambodia Thailand Vietnam

  16. Main FindingsFeatures Philippines Lao Brunei Myanmar Malaysia

  17. Problem IdentificationOriginal Vs Adaptation Country OVOP Movement • Different principle between OVOP in Japan and the adapting countries • Differences in existing cooperative values in Japan and the adapting countries (e.g. Indonesia) • The pride towards local products • Regeneration Regeneration

  18. Differences in OVOP Principles

  19. Cooperatives in Japan Vs The Adapting Countries

  20. Indonesia

  21. OVOP in Indonesia • Indonesia officially began adapting OVOP model since 2007, through Presidential Instruction No. 6 Year 2007 • The government has launched OVOP Programs in 33 villages across Indonesia • Focuses on small industries (especially SMEs and farmers in rural areas)  speed up the development of OVOP programs and improve the quality of human resources / people skills

  22. Study Visit in IndonesiaYogyakarta, Kulon Progo and Bantul

  23. Study Visit in IndonesiaBali

  24. Key Success • It is initiated both by central and local government • Collaborate with universities to carry out research studies • Large market shares both domestic (more than 200 million population) and international (AEC member) • Abundant natural resources • 150 million total labor force • Significant growth in information technology • Promising economic growth both in Indonesia and ASEAN countries

  25. Main FindingsProblem Identifications - Indonesia

  26. Main Findings Opportunities and Threats

  27. Alternative StrategiesIndonesia

  28. Cambodia

  29. OVOP in Cambodia The Role of OVOP National Committee

  30. Study Visit in Cambodia

  31. Some Key Success Factors of SMEs in Cambodia

  32. Issues in OVOP Development in Cambodia

  33. OVOP Movement in Cambodia

  34. OVOP Cambodia: Opportunities • SMEs are the main actors in Cambodian economy • Decentralization  empower local government and community to develop local economy • Member of AEC that will implement in 2015  larger market shares Opportunities of OVOP Cambodia

  35. Thailand

  36. OTOP Main Purposes

  37. OTOP Opportunities Tourism are connected with the OTOP program, thus will offer productive activities Consumers tend to value hand-made products more than factory-made products Larger market share and gain competitive advantage

  38. Pursue uniqueness Sourcing for Excellent OTOP In Search of Excellent OTOP - Business Matching - Trade fairs (domestic & international) - Product development - OTOP City - Provincial Star Product - OTOP Village Champion - Advanced Smart OTOP - OTOP to the World - OTOP City (Intl Expo) Marketing Standard - OTOP Grand Sale - OTOP Mega Sale - OTOP to the World - OTOP City (CLMV) Product Champion - Community Product Standard - Smart OTOP - OTOP City - OTOP Product Champion - OTOP City Ministerial Integration 2009-2012 2007-2008 2003 2004 2005 2006 2002 OTOP Development Source: Department of Industrial Promotion, Thailand Ministry of Industry (2003) and Office of SME Promotion (2008).

  39. OTOP ManagementIntegration Among Government Agencies Source: Office of SME Promotion (2008).

  40. Study Visit in Thailand

  41. OTOPStrengths and Weaknesses

  42. OTOP: Opportunities

  43. Vietnam

  44. Study Visit in Vietnam

  45. One Village One Craft (OVOC) • Government of Vietnam has been implemented the One Village One Craft (OVOC) program in 2006  linked to Decree No 66/2006 on development of rural trades • Ministry of Agriculture and Rural Development developed the project on "Development of One Village - One Craft Program for the 2006-2015 Period“ with an aim to increase rural craft growth by 15% per annum, attracting 300,000 labors to work in craft villages a year

  46. One Village One Craft (OVOC) • The objectives are: • To improve the development of craft villages toward specialization in each village. • To encourage people to optimize the utilization of local resources in order to enhance community strengths and preserve traditional craft villages

  47. Main Players in OVOC Development • Central level  the Ministry of Agriculture and Rural Development • Local level  handicraft village association in each region and some handicraft enterprises • Vietnam Handicraft Research and Promotion Center (HRPC) has been known as a leading organization to promote this movement in Vietnam  non-profit organization NGO working for sustainable development of artisan crafts and rural economic opportunities in Vietnam

  48. OVOP VietnamStrength and Weakness

  49. OVOP VietnamOpportunity and Threat

  50. Philippines