Organization of the Meeting

The Expert Group Meeting on "Promoting Resource-based Export-oriented SMEs for Poverty Alleviation in Asia and the Pacific" was organized by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), at the United Nations Conference Centre (UNCC), Bangkok during 21-23 January 2003.

Objective

The overall objective of the meeting was to deliberate on the critical issues related to the promotion of agro- and resource-based small and medium enterprises (SMEs) which could be export-oriented and which could utilize the resources available especially in the rural areas. The other objective was to explore the possibilities for enterprise development in rural areas with a view to alleviate poverty in those areas.

Participation

The meeting was attended by senior experts and officials from nine countries namely Bangladesh, Cambodia, China, India, Malaysia, Nepal, Republic of Korea, Thailand and Viet Nam. Representative of the United Nations Asian and Pacific Centre for Transfer of Technology (UNAPCTT) had also participated.

Recommendations

At the national level, development of agro-based and resource-based SMEs call for various policies, including the following :

1. General policies
   
   1. In general, private sector should be allowed to take leading role for development of SMEs. However, government should create enabling environment for the sustained growth and development of SMEs through strengthening legal, institutional, administrative and financial set ups and formulating appropriate policies both at the micro and macro levels.
   
   
   2. Member countries should take appropriate policy and operational measures to promote the backward and forward linkages among the resource-based small and medium industries and large industries with a view to developing resource-based and export-oriented SMEs.
2. Fiscal policies
   Instead of providing special tax holidays and other fiscal incentives, focus should be on strengthening rural infrastructure and public-private partnership for dispersal of SMEs and balanced regional development.
   
3. Marketing
   Sectors with competitive advantage need to be identified and sector specific innovative marketing support be devised. SMEs need to be promoted as ideal destinations for franchising and outsourcing. In this context, ICT must be used as an effective tool for enhancing the marketing capabilities in rural areas. Member countries can support the initiatives of UNESCAP/UNAPCTT and other international agencies should support member-countries initiatives in enhancing the competitiveness of SMEs through training programmes, demonstration projects, trade fairs and other market promotion activities.
4. Finance
   Member countries should focus on expanding financing base through the micro-credit arrangement in rural areas, where micro enterprises may develop. In this respect, the experience of some member countries in introducing credit cards, credit rating, credit guarantee systems and village funding scheme for the small scale industries may be particularly relevant for other developing countries.
5. Entrepreneurship development
   Special programmes need to be evolved at the national level in cooperation with the bilateral and international organizations such as UNESCAP/UNAPCTT for skill upgradation and entrepreneurship development including women entrepreneurs for small-scale enterprises. The member countries suggested evolving pilot demonstration projects in selected sectors for enhancing the capabilities of SMEs.
6. Technology
   As technology upgradation and quality control are critical factors for competitiveness in the context of WTO regime and knowledge-based economy, it is necessary to focus on technology upgradation issues and evolve new mechanisms such as industrial clusters and agro-business incubators. Member countries should focus on improving their capabilities in technology assessment, IPR and other management issues through training programmes.
7. Infrastructure
   Improvement in infrastructure facilities to the SMEs in rural areas is necessary to enhance their efficiency and productivity.
8. Regional cooperation
   It is necessary to evolve programme on strengthening networking and sharing of experience on best practices of promoting SMEs. It was stressed that UNESCAP/UNAPCTT should strengthen its activities to support the initiatives of member countries in this regard.