international conference on cluster economic development - Asian ...

TABLE OF CONTENTS
Page
Acronyms 3
Executive Summary 4
I. Background 6
II. Opening Session 6
III. Keynote Speech: Industrial Clusters and SMEs for Achieving the
Millennium Development Goals by Mr. Jebamalai Vinanchiarachi
IV. Special Lecture: Clusters and Cluster Policy by Professor Christian H.M.
Ketels
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V. Session 1: Examples of Successful Industry Clusters 8
VI. Session 2: Examples of Eco-Clusters 10
VII. Session 3: Promoting Local Economies through SME Cluster Approach
VIII. Session 4: Panel Discussion on Poverty-Innovation-Sustainability: How
to Integrate Clusters in Sustainable Development
IX. Closing Session 15
Annex A: Conference Agenda
Annex B: List of Participants
Annex C: Profile of Speakers and Panel Members
Annex D: Welcoming Remarks by DG/SARD, Mr. S.H. Rahman
Annex E: Opening Address by Managing Director General, Mr. Rajat Nag
Annex F: Key Note Speeches
a) Industrial Clusters and SMEs for Achieving the Millennium Development
Goals by Mr. Jebamalai Vinanchiarachi
b) Special Lecture: Clusters and Cluster Policy by Professor Christian H.M.
Ketels
Annex G: Session 1-Presentation slides by Resource Speakers
a) Industrial Clusters and Regional Development Policy in Asia by
Venkatachalam Anbumozhi
b) Main Determinants of Competitive SME Clusters: The Indonesian Story
by Tulus Tambunan, Director, Center for Industry and SME Studies,
University of Trisakti
c) Implementing Sustainable Clustering Projects and Policies: Lessons
Learned from 20 years in the Field by Eric Hansen, President,
Economic Transformations Group, Inc., United States
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Annex H: Session 2-Presentation slides by Resource Speakers
a) Eco-Clusters and Eco-Centers: Defining the ‘Eco’ in Industrial Systems
by Andreas W. Koenig, Eco-Industry & Re-Tem Corp., Tokyo
b) Eco-Industrial Networking of the Rice and Livestock Sector at
Chachoengsao Province in Thailand by Chettiyappan Visvanathan,
Professor, Asian Institute of Technology, Bangkok
c) Wood Industrial Cluster in Japan: Effective Wood Resources Utilization
in Maniwa by Masaki Kojima, Director, Zero-Emission Support Institute,
Japan
d) Philippine Eco-Industrial Zone Development by Dr. Anthony S.F. Chiu,
Professor, Center for Engineering and Sustainable Development
Research, De la Salle University Manila
Annex I: Session 3-Presentation slides by Resource Speakers
a) City Cluster Economic Development Strategy by Dr. KyeongAe (Kay)
Choe, Lead Professional (Water and Urban Development), ADB
b) Framework for Economic Development Approach: How to Identify
Clusters and their Potentials for Growth by Brian Roberts, Director,
Strategic Planning and Management Services
c) Boosting the Environmental and Economic Competitiveness of SME
Clusters by Venkatachalam Anbumozhi, Capacity Building Specialist,
ADB Institute
Annex J: Group Pictures with Participants and Conference
ACRONYMS
ADB Asian Development Bank
CCED city cluster economic development
CED cluster economic development
EIC eco-industrial cluster
EID eco-industrial development
MDG millennium development goals
SME small and medium enterprises
UNIDO United Nations Industrial Development Organization
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EXECUTIVE SUMMARY
The International Conference on Cluster Economic Development: Promoting Local
Economies through SME Cluster Approach was held at ADB Headquarters in Manila on 26
February 2010. Over 70 representatives from the governments of Bangladesh, Cambodia,
India, Indonesia, Lao PDR, Nepal, Pakistan, Philippines, Sri Lanka, and Viet Nam;
<strong>international</strong> development agencies and organizations; academe; non-government
organization (NGO), the private sector; and ADB participated in the <strong>conference</strong>.
The <strong>conference</strong> aims to (i) provide an overview of cluster economic development (CED) as a
new paradigm for local economic development, (ii) show some examples of good practices
of small and medium enterprise (SME) clusters, and (iii) contribute to the ongoing discussion
on using the cluster approach as an example of CED application.
Mr. Sultan Hafeez Rahman, Director General of South Asia Department welcomed
everybody. Mr. Rajat M. Nag, Managing Director General of ADB, delivered his opening
address. Mr. Jebamalai Vinanchiarachi, former Principal Adviser to the Director General of
UNIDO, delivered the keynote speech on the role of SMEs and industrial clusters in
achieving the millennium development goals (MDG). On video, Professor Christian H.M.
Ketels of the Harvard Business School discussed the conceptual framework of clusters and
cluster policy.
Presentations and discussions were structured into four sessions: (i) Examples of
Successful Industry Clusters, (ii) Examples of Eco-Clusters; (iii) Promoting Local Economies
through SME Cluster Approach, and (iv) Panel Discussion on Poverty-Innovation-
Sustainability: How to Integrate Clusters in Sustainable Development. Sessions 1 and 2
cited specific experiences on clusters from various countries. Session 3 explained the city
cluster economic development (CCED) approach, and the policies on and challenges facing
SME clusters in Asia. The last session attempted to synthesize the presentations and
discussions by focusing on how the CCED approach could be operationalized and how it
would be financed.
Key points that emerged from the <strong>conference</strong> include the following:
� The elements of clusters are geography or spatial proximity, linkages or similarity of
economic activities and interaction between the firms, whose grouping together are
driven by externalities such as public policy, market, infrastructure, knowledge
spillovers, and common desire to be competitive.
� In Asia, public policy plays a big role in the development and strengthening of SME
clusters. Linkage of clusters to market opportunities is also crucial to their
development.
� Experiences have shown that clusters can promote economies of scale, foster
efficiency in managing resources (e.g., eco-clusters), and enhance competitiveness
through specialization.
� Sustainability requires that the economic benefits of industrial clusters outweigh or
help mitigate their environmental costs. Promotion and use of appropriate
technologies by firms is very important.
� The framework of analysis for CCED helps to answer the questions, Where to invest
first and What to invest, thereby helping policymakers, investors, and donors to make
informed decisions on strategic investments that maximize intended impact and
benefits.
� CCED has potentials for fostering economic growth through job creation and
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increased income, thereby contributing to poverty reduction. In this context, ecoindustrial
networking will be important, with government funding and policy initiatives
tackling the economies of scale issue.
� Coordination is one of the key elements in operationalizing the CCED approach
because it needs a multi-sector and multi-level engagement.
Conference on Cluster Economic Development: Promoting Local Economies through
SME Cluster Approach
Cluster economic development provides a framework to unleash the potential of SMEs,
accelerate local economic development, and help reduce poverty in rapidly urbanizing Asia.
The <strong>conference</strong> underscored the importance of using the industry cluster approach to
promote growth of local economies.
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I. BACKGROUND
Cluster is a local agglomeration of firms or enterprises producing related, complementary, or
similar products or services. City cluster economic development (CCED) is a local economic
development approach that seeks to enhance the ability of cities to promote economic
growth in an extended urban-region. The framework of analysis of the CCED approach
helps to answer the questions, Where to invest first and What to invest, thereby helping
policymakers, investors, and donors to make informed decisions on strategic investments
that produce the greatest intended impact.
In 2009 ADB initiated a study under RETA 6337: Subproject 7: City Cluster Economic
Development in South Asia. The result of the study provides a background for the
<strong>conference</strong>, which is the first <strong>international</strong> gathering organized by the Asian Development
Bank (ADB) to discuss CCED, particularly the clustering of small and medium enterprises
(SMEs).
The <strong>conference</strong> aims to (i) provide an overview of cluster economic development (CED) as a
new paradigm for local economic development, (ii) show some examples of good practices
of small and medium enterprise (SME) clusters, and (iii) contribute to the ongoing discussion
on using the cluster approach as an example of CED application (see Annex A:
Conference Agenda). The <strong>conference</strong> gathered over 70 representatives from the
governments of Bangladesh, Cambodia, India, Indonesia, Lao PDR, Nepal, Pakistan,
Philippines, Sri Lanka, and Viet Nam; <strong>international</strong> development agencies and
organizations; academe; non-government organization (NGO); the private sector; and ADB
(see Annex B: List of Participants). The profile of speakers and panel members is in
Annex C.
II. OPENING
Ms. (Kay) KyeongAe Choe, Lead Professional (Water and Urban Development), ADB,
opened the <strong>conference</strong>. Mr. Sultan Hafeez Rahman, Director General of ADB's South Asia
Department, welcomed the participants. Mr. Rahman said that the cluster approach could be
used to trigger the growth and development of SMEs. Further, increasing the
competitiveness of SMEs could fuel private sector development, which is a key to reducing
poverty in the Asia and Pacific region. The approach is particularly relevant to Asia, which
experiences rapid urbanization. Some critical issues for consideration involve identifying
growth areas in urban-rural areas, accelerating SME and private sector development, and
sustaining large-scale infrastructure development amidst availability of limited resources. Mr.
Rahman noted that the cluster approach offers an alternative framework for addressing
these issues and expressed hope that the <strong>conference</strong> would provide a venue for finding
solutions to these challenges. (Annex D).
Mr. Rajat M. Nag, Managing Director General of ADB, delivered the opening address. He
said that Asia was in a period of rapid urbanization, which brings benefits and also presents
complex challenges. Resources for development have been stretched tightly, thus the need
to target development assistance and to look for areas where development impacts can
have immediate effects. SMEs are increasingly recognized as major drivers of economic
growth, employment and income generation, and poverty reduction. Therefore, it is critical
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for governments to devise effective strategies for CCED. The CCED is a local economic
development strategy that promotes the use of limited resources for maximum development
impact. It is a new paradigm for promoting industry development and fostering
competitiveness of cities. CCED provides a useful analytical framework for the development
of SMEs and for making investment decisions-- where to invest first and what to invest to
maximize resources. Mr. Nag challenged the participants to consider how Asian countries
could accelerate progress in economic growth and poverty reduction. In conclusion, Mr. Nag
expressed his wish that the <strong>conference</strong> would promote further initiatives to create a
competitive environment for SME clusters in Asia. (Annex E).
III. KEYNOTE SPEECH: SMEs AND INDUSTRIAL CLUSTERS FOR ACHIEVING
MDGs
Mr. Jebamalai Vinanchiarachi, former Principal Adviser to the Director General of UNIDO,
delivered the keynote speech. He said that by creating jobs, SMEs and industrial clusters
could play a big role in fostering inclusive growth espoused by the Millennium Development
Goals (MDGs). Breaking the poverty trap needs foreign direct investment and technology
diffusion. ADB’s Strategy 2020 is relevant to MDGs because it focuses on private sector
development, good governance, regional integration, etc.
Mr. Vinanchiarachi cited some country experience showing that targeting communities and
commodities can lead to poverty alleviation. A humanitarian program in Sudan focusing on
isolated villages used grassroots innovations and provided vocational training and livelihood
programs. Good practices of the program were replicated in Timor Leste. Targeting
commodities, as in the case of the button city in the People’s Republic of China and the milk
production and processing in Nicaragua, can also create positive impacts on poverty
alleviation. Growth follows networking with development partners and boosting
competitiveness.
Mr. Vinanchiarachi emphasized that urbanization is good for industry development because
agglomeration of firms promotes economies of scale, creates competitive pressures and
fosters information sharing for efficiency gains, and better influences the policy dialogue. As
a way forward, he suggested establishing cluster parks and common facilities through
public-private partnerships, enhancing the role of regional development agencies, and
strengthening the regional industrial innovation system. (Annex F.a).
IV. SPECIAL LECTURE ON CLUSTERS AND CLUSTER POLICY
On video, Professor Christian H.M. Ketels of the Harvard Business School talked about the
conceptual framework of clusters and cluster policy. He explained three dimensions of
clusters--geography or spatial proximity, industrial linkages (group of economic activities),
and interaction between actors (public and private institutions)--whose dynamics are driven
by local externalities. Clusters, along with urbanization and quality business environment,
contribute to prosperity. Regions which have specialization tend to do better in terms of
creating better jobs, higher wages, and higher standards of living. Location and natural
resources trigger the development of clusters, so do a more friendly business environment.
Growth of clusters is influenced by competition across regions, business environment,
entrepreneurial decisions, and cooperation and competition within the cluster. Because of
globalization, some regional clusters grow, shrink, or emerge. Clusters change their profile
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though functional specialization and integration into the global value chain.
Cluster policy (e.g., for export promotion, or natural resources protection) must target
clusters and create platforms for joint actions. Cluster initiatives are not defined by one
activity, but by the purpose of increasing competitiveness. They work when collaboration is
needed to address an issue. The ecological sustainability of clusters is defined by the
increasing market demand for environmentally sound products and services. The policy
challenge is how to balance environmental and economic goals. For cluster initiatives to
succeed, governments should not pick members or define action priorities. They may
finance or initiate, should participate, be ready to implement recommendations, and support
data availability. A priority scheme is necessary for cluster policy. The short-term priority is
how to make use of existing policy tools and upgrade general business environment and
companies. The medium-term priority is to strengthening public sector institutions for
competitiveness and building trust between public and private sector. The long-term goal is
to generate significant economic returns, for example through export promotion and
diversification. Right management is the answer to overcoming challenges.
What makes the cluster approach different is its continuous focus on productivity while
enhancing public-private collaboration, using a demand-driven approach, adopting regional
perspective to development, and enhancing the strengths of industries. (Annex F.b).
V. SESSION 1: EXAMPLES OF SUCCESSFUL INDUSTRY CLUSTERS
Moderator: Brian Roberts, Director, Strategic Planning and Management Services
Panel: Naomi Chakwin, Director of Financial Sector, Public Management and
Regional Cooperation Division, East Asia Department, ADB and Rana Hasan,
Principal Economist, Economic Research Department, ADB.
This session showcased some examples of successful industry clusters in Asia and other
continents. Below is a summary of the three presentations.
A. Industrial Clusters and Regional Development Policy in Asia by
Venkatachalam Anbumozhi, Capacity Building Specialist, ADB Institute,
Tokyo
Industrial clusters exist in Asia, such as those in India, Japan, Thailand, and Viet Nam--most
of which are SMEs in the manufacturing sector. Eco-industrial cluster (EIC) is a community
of business; geographic concentration of interconnected companies in specialized fields that
cooperate with each other and with the local communities to efficiently share resources,
leading to environmental quality, economic gains, and equitable enhancement of human
resources. Industrial clusters can be transformed into EIC given the right application of
environment, industrial, and regional development policies. Policy choices or decisions for a
particular regulation are important for EICs to attain their full sustainability potentials. (Annex
G.a).
B. Main Determinants of Competitive SME Clusters: The Indonesian Story
by Tulus Tambunan, Director, Center for Industry and SME Studies,
University of Trisakti
The literature attributes cluster success to internal networks or horizontal and vertical
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collaboration between SMEs, external networks, cluster size, supply and demand
conditions, and innovation capabilities of firms. Based on the experience of Indonesia, the
main determinants of successful clusters are internal network, skills of workers and owners,
external cooperation particularly with traders and suppliers, subcontracting, growth potential
of market served, adaptation capability, and firms or individuals inside the cluster who
pioneer changes or innovation. (Annex G.b).
C. Implementing Sustainable Clustering Projects and Policies: Lessons
Learned from 20 years in the Field by Eric Hansen, President, Economic
Transformations Group, Inc., United States
Clustering works and clusters make money. Clustering projects are strategic interventions to
accelerate competitiveness, formed from ideas that are matched by commitment and action.
Designing successful clustering interventions require looking at economic development as a
regional collaborative process; expansion of the leadership network; and adoption of a
model for a sustainable regional economy where conventional suppliers, clusters, and
products and services interact with their green or greening counterparts. The design is to be
based on the readiness or willingness to take action and compete for resources. It must
combine bottom-up and top-down approaches and provide for easy-to-access funding
mechanisms. (Annex G.c).
D. Panel Reaction and Discussion
The presentations elicited the following comments from the panel and the plenary:
� When we talk of CED, it is important to build on what is there and allowed for
something that can happen organically, rather than create something new.
� How SMEs can move up the value chain, particularly link with <strong>international</strong> suppliers
is one area where policymakers can help.
� It takes time to develop clusters. The clusters we see now have been in the process
of development for quite a while.
� Linkage to dynamic firms and dynamic markets is a key to the development of
clusters. Economic diversification or structural transformation is all about changes.
Asia has millions of enterprises, but wages have remained too low. A key challenge
is to finding out how enterprises can diversify and what is holding them back from
doing so.
• Creating a more direct linkage with market opportunities enables SMEs to move from
imitation and stagnation to innovation. Shift requires breakthrough opportunities.
• Cooperation is crucial for clusters to work out because actors have overlapping
interests.
• There is a huge uncertainty in industrial policy, particularly on what kind of
interventions work and do not work. It is important to have an experimental mindset
in designing interventions and carrying out rigorous evaluations of these
interventions.
• Having a before-and-after evaluation system for programs is not enough.
Comparison with control groups are also needed to fully determine the effects and
impacts of a particular program.
• It would be good to know how the cluster approach has made great impacts in other
countries.
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VI. SESSION 2: EXAMPLES OF ECO-CLUSTERS
Moderator: Venkatachalam Anbumozhi, Capacity Building Specialist, ADB Institute, Tokyo
Panel: Katsuji Matsunami, Advisor and Practice Leader (Agriculture), ADB and
Daniele Ponzi, Lead Specialist (Environment), ADB
The session highlighted environmental consideration in industrial clusters. Below is a
summary of each of the four presentations.
A. Eco-Clusters and Eco-Centers: Defining the ‘Eco’ in Industrial Systems
by Andreas W. Koenig, Eco-Industry & Re-Tem Corp., Tokyo
Recognition and knowledge sharing are necessary for the development of sustainable ecoindustrial
systems. The eco-industrial park in Devens and Philips Eco-Enterprise Center in
the US and the Kalundborg Symbiosis in Denmark are very good examples of eco-clusters.
Industrial ecology assumes that industrial systems behave like ecological systems. A key
mechanism of eco-industrial parks is a system approach to zero discharge. Eco-industrial
development (EID) is not only about environment, but sustainable business; it is more than
by-product exchange. Management of eco-industrial systems involves management by
infrastructure, standards, design, and cooperation, and management of networks. The key
to success is to always start with a vision. Systems make it possible, but people make it
happen. (Annex H.a).
B. Eco-Industrial Networking of the Rice and Livestock Sector at
Chachoengsao Province in Thailand by Chettiyappan Visvanathan,
Professor, Asian Institute of Technology, Bangkok
The cluster in Chachoengsao includes poultry, piggery, rice-based industries, and biomass
and biogas generation. Rice products reach urban areas from the rice industry and rice mills
in fringe areas, and rice paddies in rural areas. The solid and liquid wastes coming from the
rural-based poultry and piggery spill out to fringe areas. The value chain framework shows
that as the value of the produce increases, the pollution increases as well. The current
national policies in Thailand are conducive for the development of clusters, but a lack of
appropriate technologies hinders full resource recovery and complete reuse. Technology
transfer will accelerate the transformation of the region into a model cluster with a brilliant
inter-firm network. (Annex H.b).
C. Wood Industrial Cluster in Japan: Effective Wood Resources Utilization
in Maniwa by Masaki Kojima, Director, Zero-Emission Support Institute,
Japan
Maniwa is located at the center of west Japan. The concept of wood-resources utilization
industry-cluster emerged in Maniwa in 2001, following the eco-town building symposium in
1997. The Maniwa eco-industrial cluster (EIC) is a product of collaboration between the
industry, government, academe, and the local communities. Inside Maniwa are production
plants that produce wood pellet, wood-based concrete, bio-ethanol, and electricity. In 2004,
Maniwa established two wood products distributors. Maniwa also has inter-program
collaboration for human resource development participated in by the Maniwa Biomass
Laboratory, Industry Promotion Council, College, and Academy. (Annex H.c).
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D. Philippine Eco-Industrial Zone Development by Dr. Anthony S.F. Chiu,
Professor, Center for Engineering and Sustainable Development
Research, De la Salle University Manila
The Philippine initiatives on EID started in 1998. Private sector participation in managing the
environment was launched and by 2006, about 300 industries were involved in the industrial
waste exchange program. The PEZA-GTZ-Mactan Project is the first pilot project. Existing
industrial parks were redeveloped or converted into eco-industrial parks using by-product
exchange, such as the Philippine National Oil Company (PNOC) industrial park and
CALABARZON. Integrated waste management system and energy management have been
introduced in the economic zones. Further, the corporate social responsibility project of the
Mactan project is also being cascaded to other economic zones in the country. (Annex H.d).
E. Panel Reaction and Discussion
The presentations elicited the following comments from the panel and the plenary:
� In Asia, clusters may be more interested with efficiency gains than in public
recognition; thus, it would be better to highlight the economic benefits of cluster
approach.
� Eco-clusters tend to focus on new areas. Perhaps they can also cover existing areas
that have created serious environmental problems.
� Eco-clusters are not just about closed industrial parks because networks go beyond
parks, unlike those in special economic zones. It would be interesting to see how
clusters can bring in other resource owners and actors (e.g., producers) and some
examples of expanding clusters and networks.
� The support of government and the services sector is important because SMEs do
not have sufficient capacities to become environmentally sustainable.
� Cooperation, collaboration, and trust form a basis for sustaining innovation in parallel
with the normal cycle of competitiveness.
� Sustainable business is consistent with environmental sustainability.
� Closing the circle lets you achieve efficiency and connectivity between actors, but
this may be offset by the level of energy consumption inside the circle.
� Technology innovation through inter-firm network is very important.
� A lesson from Maniwa is that when we want to drive a process, we have to start from
the current system and know its potential, rather than approach matters from the top.
The process can be accelerated if we have strong analysis of needs, demands, and
problems. Stakeholder coalition and alliances between the industry, government, and
academe can make things work.
� Possible solutions for clusters that pollute the environment are (i) getting the
chambers of commerce involved by sharing the responsibility with them; (ii) bringing
the matter to the local pollution control agency; (iii) requiring ISO 14001 certification
for export-oriented clusters; (iv) using a top-down approach coupled with consistent
dialogue with industries (The government should start the ball rolling, but industries
should continue); (v) giving governments a larger role, particularly for developing
small-scale industries; and (vi) balancing the need to close the circle with the level of
energy use.
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VII. SESSION 3: PROMOTING LOCAL ECONOMIES THROUGH SME CLUSTER
APPROACH
Moderator: Eric Hansen, President, Economic Transformation Group, Inc.
Panelists: James Lynch, Director of Transport and Urban Development Division (SETU),
Southeast Asia Department, ADB and Bruno Carrasco, Director of Country
Coordination and Regional Cooperation Division (SAOC), South Asia
Department, ADB
The session talked about the way to go for fostering local economic development through
clustering of SMEs. Below is a summary of each of the three presentations.
A. City Cluster Economic Development Strategy by Dr. KyeongAe (Kay)
Choe, Lead Professional (Water and Urban Development), ADB
Conventional theories on urbanization do not necessarily apply to Asia because the
conditions are different. Urbanization in Asia shows agglomeration, and data reveals that
urbanization is positively correlated with gross domestic product (GDP). Urbanization is
accelerating, and the unit of analysis is getting broader because economic activities spill
over surrounding or fringe areas. Thus, there is a need for a region-based urban
development approach. The CCED is a local economic development approach that
enhances the ability of cities to foster economic growth in an extended urban-region. It
promotes economies of scale, creates multiplier effects on local economies, produces spillover
impacts, and combines with business cluster approach. The ultimate goal of the CCED
approach is employment generation and increased income to reduce poverty. Urban
development is economic development, and this provides the link between urbanization and
cluster development of SMEs. (Annex I.a).
B. Framework for Economic Development Approach: How to Identify
Clusters and their Potentials for Growth by Brian Roberts, Director,
Strategic Planning and Management Services
Competitiveness today focuses on the need to create collaborative advantage. Industry
clusters help build competitiveness of cities because they reduce transaction costs. There
are many techniques for analyzing industry clusters, but these are not enough for examining
the factors that enhance the competitiveness and development of industry clusters. The
CCED analytical framework offers a promising policy tool. It entails analysis of national
policies for cities, drivers of competitiveness, sector competitiveness profiles, industry
clusters, and strategic architecture. Then it suggests some courses of possible action plans
to support cluster development and organizational arrangements to implement the CCED.
Implementation requires industry cluster partnerships, cluster business plans, and prefeasibility
studies. (Annex I.b).
C. Boosting the Environmental and Economic Competitiveness of SME
Clusters by Venkatachalam Anbumozhi, Capacity Building Specialist,
ADB Institute
Growth and prosperity has created inequalities in production and consumption. The
challenge of sustainable development is the need to improve the quality of life and foster
economic growth without prejudicing our natural resources. With the right conditions, SMEs,
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particularly EICs, can boost their environmental and economic performance. Public policies
must promote the adoption of appropriate technologies by SMEs, provide needed
infrastructure, put in place a better market orientation for cluster products, and provide
financial support. National governments need to think strategically and come up with
integrated policy interventions for accelerating the development of EICs. Policy dialogue
beyond the cluster level and supported by the political leadership can bring tangible benefits.
(Annex H.d).
D. Panel Reaction and Discussion
The panel posed these questions: (i) Is there an optimum size for cities or urban centers
such that beyond this size there would be congestion costs? (ii) How do we go about
operationalizing the CCED framework in more concrete terms? and (iii) What is the role of
<strong>international</strong> financial institutions, such as ADB, in promoting the SME cluster approach in
Asia where the environment is vulnerable?
The questions resulted in following response:
� It is difficult to say what the optimum size of cities or urban centers should be
because urbanization is driven by economic activities. It has a natural pulling effect
that attracts migration from the rural areas. Instead of avoiding urbanization, it would
be better to look for better ways of promoting urban development. Urbanization and
economic growth are positively correlated.
� CCED involves many sectors, and implementing it requires coordination. ADB must
undertake better policy dialogues with governments and involve different ministries in
the process.
� ADB may start looking into investments in soft infrastructure because local
government capacities are weak and human knowledge and skills are also lacking.
� Similar to what Japan has done for its automotive and airline industries, ADB can
help by promoting the long-term competitiveness of clusters, supporting the microfoundations
of clusters, and providing seed money.
VIII. PANEL DISCUSSION: POVERTY-INNOVATION-SUSTAINABILITY: HOW TO
INTEGRATE CLUSTERS IN SUSTAIABLE DEVELOPMENT
Moderator: Michael Lindfield, Lead Professional (Urban Development), ADB
Panelists: Ashok Sharma, Director of South Asia Department's Financial Sector, Public
Management and Trade Division, ADB; and Ramesh Subramaniam, Director
of Central and West Asia Department's Financial Sector, Public Management
and Trade Division, ADB
The discussion focused on two questions: (i) how the CCED framework will be
operationalized and (ii) how its implementation will be financed.
A. Operationalizing CCED
The following suggestions were made on how to operationalize the CCED framework:
� Develop industries in the rural areas in order to create jobs and reduce poverty.
� Invest in strategic infrastructure, particularly on building technology transfer to subnational
level and on supporting sub-national research on human resource
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development, because the capacities of local governments are weak.
� Assign a qualified operator for the clusters. As an external party, ADB can go to any
of its member countries and encourage cooperation, for example, by means of
institutionalizing a roundtable discussion.
� Equip urban planners and get them involved in the process.
� Prepare a road map that shows how activities will be sequenced and how
coordination of different sectors is to be done.
� ADB can complement the top-down and bottom-up approaches to cluster
development by strengthening existing businesses and creating new ones.
� Disseminate knowledge and good practices on cluster development.
� ADB and its developing member countries need to address cross-cutting
infrastructure weakness, provide innovative SME financing, and create an
institutional structure to focus on competitiveness beyond the life cycle of specific
administrative boundaries.
B. Financing CCED
The following suggestions were made on how to finance the adoption of CCED:
� Establish a policy on financing scheme for clusters, which takes into consideration
the positive correlation between tax revenues and price of commodities within the
value chain framework.
� Similar to what is being done by the Inter-American Development Bank (IADB), ADB
may consider linking up cluster projects with loans. ADB will negotiate with the
government what kind of loans is needed for a specific purpose, and then a
competitive bidding process will be put in place in which different cities and regional
governments compete for loans based on the potential productivity of investment.
� Create a pool of money for SMEs to invest in sustainable development.
� For ADB to direct its lending operations to supporting public-private partnerships in
the establishment of special-purpose vehicles for promoting industrial clusters,
common facility centers for the effective integration of SMEs into cluster networking,
business support services for enabling SME clusters to thrive in an <strong>international</strong>ly
competitive environment, and sectoral innovation systems at the regional level that
promote incremental innovation at the firm level (e.g., R&D).
� ADB is supporting and should be supporting cluster initiatives either as a sole
financier or under cofinancing ventures. But the majority of the funding has to come
from the private sector. ADB will only be a catalyst. A good cluster design or program
will leverage commitments both from the government and the private sector.
� Link public inputs to performance, require business plan for infrastructure projects
financed by ADB (e.g., what entities exist around the road), look for product clusters
instead of industries, and find out what entrepreneurs need and then make
investment decisions.
Some participants also suggested or commented on the following: (i) relocating clusters in
Dhaka presents a big challenge—the transition should be gradual, the supply chain needs to
be relocated as well, and the government may consider asking support from ADB; (ii) ADB
needs to implement technical assistance to remove the knowledge gap and build capacities
on CCED; and (iii) prioritize infrastructure projects relative to the conditions of the local
economy.
In closing the panel discussion, Mr. Lindfield stated that a key area where ADB could help
was in the analysis of clusters, including how to empower them. On project development
14

arising from this analysis, he suggested that ADB must give it a thorough consideration
given that ADB has started to think more about integrating private sector and public sector
projects. A big challenge for ADB is the issue of supporting the soft side of CCED.
IX. CLOSING
Dr. Choe closed the <strong>conference</strong> by reiterating that CCED was a very useful and flexible tool
for making informed decisions. CCED could show the strengths of industries, gaps in the
sector, and how to match those gaps with the right investment. SMEs comprise about 90%
of industries in Asia, and about 60% of the labor force is found in SMEs. Since SMEs are
private, collaboration between the private sector and the government is very important for
the local economies to develop. Dr. Choe said that the <strong>conference</strong> was not the end, but only
the beginning of discussions and efforts to institutionalizing CCED. She ended by thanking
everyone for their contribution to the <strong>conference</strong>.
Dr. Vinanchiarachi, the keynote speaker, added that ADB has a niche to capture in fostering
inclusive growth through the development of SMEs and industrial clusters. In addition to
what ADB can do in terms of lending operations (see Section VIII, B: Financing CCED), Dr.
Vinanchiarachi said that ADB could also (i) work directly with regional development agencies
in dynamic industrial locations on funding innovative projects which make positive impacts
on poverty alleviation, (ii) provide grants to institutions establishing an inventory of modern
industrial applications and to programs seeking effective transfer of technology in terms of
acquiring, assimilating, adapting, learning and inventing something new that suits a given
country-specific context; and (iii) provide a one-time grant to firm-level innovations making
an impact at the regional level in terms of value addition.
15

Annex A: Conference Agenda
INTERNATIONAL CONFERENCE ON
CLUSTER ECONOMIC DEVELOPMENT
Promoting Local Economies through SME-Cluster Approach
26 February 2010, ADB Headquarters, Manila, Philippines
25 February 2010 (Thursday)
Afternoon Arrival of participants and resource speakers
18:00 – 19:00 Reception Cocktail (Crowne Plaza Galleria Manila)
26 February 2010 (Friday)
08:30 – 09:00 Registration (Auditorium B, ADB)
09:00 – 09:05 Welcome Remarks
Sultan Hafeez Rahman, Director General/SARD, ADB
09:05 – 09:15 Opening Address
Rajat M. Nag, Managing Director General, ADB
09:15 – 09:45 Industrial Clusters and SMEs for Achieving MDGs
Jebamalai Vinanchiarachi, former Principal Adviser to the Director General,
UNIDO.
09:45 – 10:30 Clusters and Cluster Policy (by video)
Christian H.M. Ketels, Professor, Institute for Strategy and Competitiveness,
Harvard Business School
10:30 – 10:45 MORNING COFFEE BREAK
10:45 – 12:30 Session 1: Examples of Successful Industry-Clusters
Moderator: Professor Brian Roberts and ADB Staff Panelists―Rana Hasan,
Principal Economist/ERD; Naomi Chakwin, Director/EAFM
Case 1: Cluster Industry and Regional Development Policy in Asia
Venkatachalam Anbumozhi, Capacity Building Specialist, ADBI
Case 2: Main Determinants of Competitive SME Clusters: The
Indonesian Story
Tulus Tambunan, Director, Center for Industry and SME Studies,
University of Trisakti
Case 3: Implementing Sustainable Clustering Projects and Policies:
Lessons Learned from 20 Years in the Trenches
Eric Hansen, President, Economic Transformations Group, Inc.
12:30 – 13:30 LUNCH BREAK (ADB Executive Dinning Room)
13:30 – 15:30 Session 2: Examples of Eco Clusters

15:30 – 16:00 COFFEE BREAK
Annex A: Conference Agenda
Moderator: Venkatachalam Anbumozhi and ADB Staff Panelists—Katsuji
Matsunami, Advisor & Practice Leader (Agriculture)/RSDD; Daniele Ponzi,
Lead Specialist (Environment)/RSES
Case 1: Eco-Clusters & Eco Centers: One-Stop Shop Solutions?
Andreas W. Koenig, Principal, Eco Industry & Senior Advisor, Re-
Tem Corp.
Case 2: Agricultural Waste in Thailand
Chettiyappan Visvanathan, Professor, Asian Institute of Technology
Case 3: Wood Industrial Clusters in Japan
Masaki Kojima, Director, Zero-Emission Support Institute
Case 4: Philippine Eco-Industrial Zone Development
Anthony S.F. Chiu, Professor, Center for Engineering and
Sustainable Development Research, De La Salle University
16:00 – 17:30 Session 3: Promoting Local Economies through SME-Cluster Approach –
Forward Looking
Moderator: Eric Hansen and ADB Staff Panelists―James Lynch,
Director/SETU; Bruno Carrasco, Director/SAOC
Case 1: City Cluster Economic Development [CCED] Strategy
KyeongAe Choe, Lead Professional (Water and Urban
Development), SAUD/ADB
Case 2: Framework for Cluster Economic Development Approach: How
to Identify Cluster and their Potentials for Growth?
Brian Roberts. Director, Strategic Planning and Management
Services
Case 3: Boosting the Environmental and Economic Competitiveness of
SME Clusters in Asia: Policies and Challenges
Venkatachalam Anbumozhi, Capacity Building Specialist, ADBI
17:30 – 18:30 Panel Discussion: Poverty - Innovation - Sustainability: How to Integrate
Clusters in Sustainable Development?
Moderator: Michael Lindfield, Lead Professional (Urban Development)/RSID
18:30 – 18:40 Closing Remarks
Panel Members: Chettiyappan Visvanathan; Brian Roberts; Jebamalai
Vinanchiarachi; Eric Hansen; Andreas W. Koenig, Werner E. Liepach,
Deputy Director General/CWRD; Ashok Sharma, Director/SAFM; Ganeshan
Wignaraja, Principal Economist, OREI
18:40 – 20:00 Dinner Cocktails (Courtyard, ADB)
2

Annex B: List of Participants
INTERNATIONAL CONFERENCE ON CLUSTER ECONOMIC DEVELOPMENT
Promoting Local Economies through SME-Cluster Approach
26 February 2010, ADB Headquarters, Manila, Philippines
A. DMC GOVERNMENT OFFICIALS
CENTRAL AND WEST ASIA
Country DMC Government Official
PAKISTAN
1. Mr. UMER DAD
Joint Secretary (Development)
Ministry of Environment
L.G. & R.D. Complex, G-52, Islamabad, Pakistan
Tel: +92-51-9245559
Fax: +92-51-9245527
umardad@yahoo.com
2. Mr. AHMED OWAIS PIRZADA
Additional Secretary
Planning and Development Division
Tel: +92-51-9262732
ahmedpir@hotmail.com
3. Mr. ATEEQ-UR REHMAN
Economic Consultant
Ministry of Commerce
Room No. 446, Secretariat Block 'A', Islamabad, Pakistan
Tel: +92-51-9204326
ateeqboi@yahoo.com
SOUTH ASIA
Country DMC Government Official
BANGLADESH
4. Mr. ARIJIT CHOWDHURY
Deputy Secretary
Bank and Financial Institutions Division
Ministry of Finance
Room No. 321, Building No. 7, Bangladesh Secretariat
Dhaka, Bangladesh
Tel: +880-2-7168305
Fax: +880-2-7168582
arijitc@finance.gov.bd
5. Mr. MD. MUSHARRAF HOSSAIN
Deputy Chief
Planning Commission
General Economics Division
Sher-e-Bangla Nagar, Dhaka, Bangladesh
Tel: +880-2-9116338
Fax: +880-2-9127813
Mobile: +880-01765-19929
INDIA
musha9166@yahoo.com
6. Mr. ASHISH KUMAR PAUL
Director General
Bangladesh Industrial Technical Assistance Center
Tejgaon Industrial Area, Dhaka 1208, Bangladesh
Tel: +880-2-9880036
Fax: +880-2-9889255
bitac@dhaka.net
7. Mr. ANGSHUMAN DEY
Deputy Secretary
Ministry of Micro, Small and Medium Enterprises
R.No. 275D, Udyog Bhawan, New Delhi - 11 India
Tel: +91-11-23062745
Fax: +91-11-23062886
angshuman.dey@nic.in
8. Mr. Chandan Saha
Joint Adviser (CI)
Planning Commission

Annex B: List of Participants
Country DMC Government Official
Yojana Bhavan, New Delhi, India
chandan.saha@nic.in
NEPAL
9. Mr. TANKA MANI SHARMA
Joint Secretary(Corporation Coordination Division and Privatization)
Ministry of Finance
Singha Durbar, Kathmandu, Nepal
Tel: +977-1-4211407
Fax: +977-1-4211351
sharmatm@gmail.com
10. Mr. CHANDRA KUMAR GHIMIRE
Joint Secretary
Ministry of Commerce and Supply
Singhdurbar, Kathmandu, Nepal
Tel: +977-1-4211450
Fax: +977-1-4211167
SRI LANKA
chandrakg64@yahoo.com
11. Mr. DHUNDI RAJ POKHAREL
Joint Secretary
Ministry of Industry
Industrial Promotion Division
Tel: +977-9851010602; +977-1-4211534
Fax: +977-1-4211619
dhundi_pokharel@moi.gov.np
12. Ms. A. DAMITHA N. DE ZOYSA
Director General
Ministry of Finance and Planning
Development Finance Department
Colombo 01, Sri Lanka
Tel: +94-11-2484542
Fax: +94-11-2394908
adnz@dfd.treasury.gov.lk
13. Mr. P. SUMANAPALA
Additional Director General
Ministry of Finance and Planning
Department of National Planning
Colombo 01, Sri Lanka
Tel: +94-11-2484591
Fax: +94-11-2448063
p_sumanapala@hotmail.com
14. Ms. H.W.P.S. JAYATHISSA
Assistant Director
Ministry of Trade, Marketing Development, Co-operatives and
Consumer Services
330, Union Place, Colombo 02, Sri Lanka
Tel: +94-11-2423960; 2300343
Fax: +94-11-2423972
pavithrajayathissa@yahoo.com
SOUTHEAST ASIA
Country DMC Government Official
CAMBODIA
15. Mr. HAY SOVUTHEA
Deputy Head, Social Policy Division
Supreme National Economic Council
#208A Norodom Blve, Khan Chamkarmon
Phnom Penh, Cambodia
Tel: +855-17-272747
Fax: +855-23-726447
sovuthea@gmail.com
16. Mr. VA SOPHAL
Deputy Director General
General Directorate of Planning
Ministry of Planning
#386, Preh Monivong Blvd., Beoung Keng Kang I, Chamkarmon
Phnom Penh, Cambodia
2

Annex B: List of Participants
Country DMC Government Official
Tel: +855-23-218895
Fax: +855-23-218895
vasophal@gmail.com
17. Mr. BUDI KURNIAWAN
Head of Section for Development of Guidance and Standard
Ministry for the Environment of Indonesia
B Building 4th Floor Jl. DI Panjaitan Kav-24, Kebon nanas Jakarta
Timur-Jakarta, Indonesia
Tel/Fax: +62-21-85904933
budkurni2003@yahoo.com
18. Ms. AGUSTINA SRIE
Head of Trade SMEs Center
Ministry of Trade
Gedung II 8 th INDONESIA
Floor, JI, M.I. Ridwan Rais No. 5, Jakarta 10110
Tel: +6221-3524919
Fax: +6221-350-9541
LAO PDR
PHILIPPINES
srie_agst@yahoo.co.id
19. Mr. SUTARTO THEODORE
Subdivision of Program and Report of Trade SMEs Center
Ministry of Trade
Gedung II 8 th Floor, JI, M.I. Ridwan Rais No. 5, Jakarta 10110
Tel: +6221-3524919
Fax: +6221-350-9541
theo.sutarto@gmail.com
20. Mr. SENGDARA DOUANGMYXAY
Deputy Division Chief
Department of Housing and Urban Planning
Ministry of Public Works and Transport
Victory Gate Square Avenue, Lanexang, Vientiance, Laos
Tel: +856-21-414420
Fax: +856-21-412283
douangmyxay@yahoo.co.uk
21. Ms. SIRIVANH KHONTHAPANE
Director General
National Economic Research Institute
Ministry of Planning and Investment
Tel: +856-21-9801182
sirivank@yahoo.com; nerilaos@yahoo.com
22. Ms. LONKHAM ATSANAVONG
Director, Planning and Cooperation Division
Department of Environment, WREA
Lanxang Avenue, Vientiane, Lao PDR
Tel/Fax: +856-21-218712
lonkhama@yahoo.com
23. Ms. SANSALUNA PINAGAYAO
Zone Administrator - Mactan Economic Zone
Philippine Economic Zone Authority
MEZ Administration Building
Mactan Economic Zone
Lapu-lapu City, Mactan Cebu
Tel: +63-32-3400595
Fax: +63-32-3400591
mez@peza.gov.ph
24. Ms. FIDELITA DE GUZMAN
Zone Administrator - Cavite Economic Zone
Philippine Economic Zone Authority
CEZ Administration Building
Cavite Economic Zone Rosario, Cavite
Tel: +63-46-4376146
Fax: +63-46-4376090
cez@peza.gov.ph
25. Ms. VIVIAN CERRER
Head, Environmental Safety Unit
3

Annex B: List of Participants
Country DMC Government Official
Philippine Economic Zone and Authority
Environmental Safety Unit, Policy and Planning
PEZA Building Roxas Boulevard corner San Luis Street
Pasay City, Metro Manila
Tel: +63-2-5519526
Fax: +63-2-5516561
vrcerrer@peza.gov.ph; esg@peza.gov.ph
26. Mr. MELENCIO SILO
Environment Specialist
Philippine Economic Zone Authority
PEZA Building Roxas Boulevard corner San Luis Street
Pasay City, Metro Manila
Tel: +63-2-5513429
msilo@peza.gov.ph
27. Mr. JASON VERGIL SUAREZ
ESO II - Policy and Planning
Philippine Economic Zone Authority
PEZA Building Roxas Boulevard corner San Luis Street
Pasay City, Metro Manila
Tel: +63-2-5513429
jason.suarez@gmail.com
28. Ms. TONILYN LIM
Acting Deputy Director/Bank Officer V
Crisis Management Office
Bangko Sentral ng Pilipinas
A. Mabini St., Malate 1004 Manila
Tel: +63-2-302.4303
Fax: +63-2-302.3972
tonilimus@yahoo.com
29. Dr. BENIGNO PECZON
Philippine Pollution Prevention Roundtable
57 Palanan Street, Ayala Greenfield Estates, Calamba, Laguna
Tel/Fax: +63-49-8353005
peczon@gmail.com
30. Mr. MERVIN GO
University of Sto. Tomas
Manila, Philippines
31. Ms. ANYA CATHERINE C. ARGUELLES
University of Sto. Tomas
Manila, Philippines
32. Mr. GLENN S. BANAGUAS
Researcher
Regional Climate Systems/ Ateneo de Manila University
Ateneo de Manila University Loyola Heights Campus
Katipunan Avenue, Loyola Heights, Quezon City
Tel: +63-2-426 5921
Fax: +63-2-426-0847
33. Ms. PRISCELLA B. MEJILLANO
Officer-in-Charge/ Assistant Director
Bureau of Local Government Development
Department of Interior and Local Government
A. Francisco Gold Condominium II
EDSA cor. Mapagmahal Street, Diliman, Quezon City
Tel. No.: +63-2-927-7852
pbmejillano@dilg.gov.ph
34. Ms. MARIA MATILDE L. GO
Assistant Division Chief
Local Fiscal Resources Development
Department of Interior and Local Government
A. Francisco Gold Condominium II, EDSA cor. Mapagmahal St,
Diliman, Quezon City
Tel: +63-2-9253771
madelzkey@yahoo.com
35. Dr. URDUJAH A. TEJADA
4

Annex B: List of Participants
Country DMC Government Official
Regional Director
Department of Science and Technology
Regional Office No. 02
Nursery Compound. San Gabriel
Tuguegarao, Cagayan
Tel. No. : +63-78-844-9443/3426
Fax No. : +63-78- 844-8654
jaye_tejada@yahoo.com
36. Engr. RENE BURT N. LLANTO
Director IV
Department of Science and Technology
Regional Office No. 07 Gov. Manuel Cuenco Avenue,
Banilad, Cebu City
Tel: +63-32-231 1916/416-2432
Fax: +63-32-231-1916
enertrub@yahoo.com
37. Mr. WARNER M. ANDRADA
Chief Tourism Operations
Department of Tourism
T.F. Valencia Circle, T.M. Kalaw St., Rizal Park, Manila
Tel: +63-02-523-8411
wmandrada@tourism.gov.ph
38. Mr. ARTURO L. CEBUMA, JR.
Chief Economic Development Specialist
Trade and Industry and Utility Staff
National Economic Development Authority
12 Saint Josemaria Escriva Drive
Ortigas Center Pasig City
Tel: +63-2-631 3734
39. Mr. VIRGILIO R. ANGELO
Chairman and Chief Executive Officer
Small Business Corporation
17th and 18th Floors, 139 Corporate Center
139 Valero Street, Salcedo Village, Makati City
Tel: +63-2-7511888
Fax: +63-2- 813 5726
vangelo@sbgfc.org.ph
40. Mr. MELVIN E. ABANTO
Vice President, Corporate Planning Office
Small Business Corporation
17th and 18th Floors, 139 Corporate Center
139 Valero Street, Salcedo Village, Makati City
Tel: +63-2-751-1888
Fax: +63-2-813 5726
41. Ms. ALICE OPEÑA
Policy, Planning, and Research Division
Bureau of Micro, Small and Medium Enterprise Development
Department of Trade and Industry
Sen. Gil J. Puyat Ave. Makati City
Tel: +63-2-751 5057
Fax: +63-2-896 7916
aliceopena@yahoo.com
42. Ms. ELSIE TAN
Program Development &. Coordination Division
Bureau of Micro, Small and Medium Enterprise Development
Department of Trade and Industry
Sen. Gil J. Puyat Ave. Makati City
Tel: +63-2-751 5059
Fax: +63-2-896 7916
elviratan@yahoo.com
43. Mr. ENRIQUE LOZARI
Consultant
Bureau of Micro, Small and Medium Enterprise Development
Department of Trade and Industry
5

Annex B: List of Participants
Country DMC Government Official
Sen. Gil J. Puyat Ave. Makati City
Tel: +63-2-951 4082
ricky.lozari@gmail.com
44. Ms. MARION MACEDA VILLANUEVA
Local Governance Support Program for Local Economic Development
(LGSP-LED)
45. Ms. EVELYN JIZ
Local Governance Support Program for Local Economic Development
(LGSP-LED)
46. Mr. FRANCIS GENTORAL
Local Governance Support Program for Local Economic Development
(LGSP-LED)
47. Mr. RESTITUTO B. MACUTO
OIC-Assistant Bureau Director, Program Management Bureau
Department of Social Welfare and Development
Tel: +63-2-9512801
Tel/Fax: +63-2-9512801
rbmacuto@dswd.gov.ph
48. Mr. ROMULO MIRAL JR.
Executive Diector
Congressional Planning and Budget Department
House of Representatives
Tel: +63-2-9316032
miralgrd@yahoo.com
49. Ms. CRISTINA ALARILLA
Research Coordinator
AIM-RVR CSR Center
4th Floor AIM Conference Center Manila
Benavidez corner Trasierra Sts.
Legaspi Village 1260 Makati City
Tel: +63-2-7501010 local 2139, 2145
Fax: +63-2-7521208
chinky_alarilla@yahoo.com
50. Mr. RYAN UY
Research Associate
AIM-RVR CSR Center
4th Floor AIM Conference Center Manila
Benavidez corner Trasierra Sts.
Legaspi Village 1260 Makati City
Tel: +63-2-7501010 local 2139, 2145
Fax: +63-2-7521208
ryan5781@yahoo.com
VIET NAM
51. Mr. LE THI PHUONG ANH
Officer
Ministry of Planning and Investment
SME Development Division
Agency for Enterprise Development
6B Hoang Dieu, Ba Dinh, Ha Noi, Viet Nam
Tel: +84-4-08044998
Fax: +84-4-37342189
lephuonganhmpi@gmail.com
52. Mr. TUAN ANH VU
Deputy Director
Ministry of Industry and Trade
Industrial Enterprise and Cooperative Development Division
Agency for Industrial Promotion
Tel: +84-904283983
Tel/Fax: +84-4-22218345
anhvtn@moit.gov.vn, vu_tuananh@ymail.com
53. Ms. NGUYEN HOANG ANH
Head of Water and Soil Pollution Control
Ministry of Natural Resource and Environment
Pollution Control Department
6

Country DMC Government Official
Viet Nam Environment Administration
Tel: +844-37713171
Fax: +844-37713176
anhnh@nea.gov.vn
B. INTERNATIONAL DEVELOPMENT AGENCIES AND ORGANIZATIONS
Agency/Organization Representative
Australian Agency for
International
Development (AusAID)
Cities Development
Initiative for Asia
(CDIA)
GTZ Philippines - PSP
Program Office
Infrastructure
Development and
Environment Analysis
Associates
United Nations
Industrial Development
Organization (UNIDO)
C. ASIAN DEVELOPMENT BANK
54. Mr. JOHN ALIKPALA
Consultant
Level 23, Tower 2, RCBC Plaza, 6819 Ayala Avenue
Makati City, Philippines
Tel: +63-2-7578232 Fax: +63-2-7578216
john.alikpala@ausaid.gov.au
55. Mr. ADOLFO GUERRERO
PPP Specialist
Suite 202-203 Hanston Building
Emerald Avenue, Ortigas Center
Pasig City 1600
Tel: +63-2-631 2342
Fax: +63-2-631 6158
aguerrero.consultant@adb.org
56. Ms. RITA I. PILARCA
Senior Adviser
7/F New Solid Building, 357 Sen. Gil Puyat Avenue
Makati City, Philippines
Tel: +63-2-8978199 local 14; +63-2-5568732 local 14
Rita.Pilarca@gtz.de
57. Mr. HANNU PELKONEN
Executive Director
hannu.pelkonen51@gmail.com
58. Ms. HAZEL ALFON
Consultant
Tel: +63-2-9010442
Fax: +63-2-8897202
hazelnut914@gmail.com
Annex B: List of Participants
Department Staff
East Asia Department 59. Ms. AMY LEUNG
Director
Social Sectors Division
aleung@adb.org
60. Ms. NAOMI CHAKWIN
Director
Financial Sector, Public Management and Trade Division
nchakwin@adb.org
61. Ms. JINGMIN HUANG
Urban Development Specialist
Social Sectors Division
jmasic@adb.org
62. Ms. JOANNA MASIC
Urban Development Specialist
Social Sectors Division
jmasic@adb.org
Economics and
Mr. RANA HASAN
Research Department Principal Economist
Development Indicators and Policy Research Division
rhasan@adb.org
63. Ms. NINY KHOR
7

Department Staff
Private Sector
Operations Department
Regional Sustainable
and Development
Department
Economist
Development Indicators and Policy Research Division
nkhor@adb.org
64. Mr. SHUJI HASHIZUME
Investment Specialist
Infrastructure Finance Division 2
shashizume@adb.org
65. Mr. ROBERT DOBIAS
Senior Advisor
Climate Change Program Coordination Unit
rdobias@adb.org
66. Mr. KATSUJI MATSUNAMI
Advisor
Agriculture, Rural Development and Food Security Unit
kmatsunami@adb.org
67. Mr. MICHAEL LINDFIELD
Lead Professional (Urban Development)
Sustainable Infrastructure Division
mlindfield@adb.org
68. Mr. DANIELE PONZI
Lead Professional (Environment)
Environment and Safeguards Division
dponzi@adb.org
Annex B: List of Participants
South Asia Department 69. Mr. BRUNO CARRASCO
Director
Country Coordination and Regional Cooperation Division
bcarrasco@adb.org
70. Mr. SHIGEHIKO MURAMAO
PAU Head
Urban Development Division
smuramoto@adb.org
71. Mr. SEKHAR BONU
Principal Urban Development Specialist
Urban Development Division
sbonu@adb.org
72. Mr. JIRO TSUNODA
Senior Financial Specialist
Financial Sector, Public Management and Trade Division
smuramoto@adb.org
73. Mr. NORIO SAITO
Urban Development Specialist
Urban Development Division
nsaito@adb.org
74. Mr. HONGWEI ZHANG
Economist (Financial Sector)
Financial Sector, Public Management and Trade Division
hzhang@adb.org
75. Mr. MASAYUKI TACHIIRII
Urban Economist
Urban Development Division
mtachiiri@adb.org
76. Mr. DAVID MARGONSZTERN
Urban Development Specialist (Transport)
Urban Development Division
dmargonsztern@adb.org
77. Mr. CHIA-HSIN HU
Economist
Financial Sector, Public Management and Trade Division
Southeast Asia
Department
chhu@adb.org
78. Mr. JAMES LYNCH
Director
Transport and Urban Development Division
jlynch@adb.org
8

Department Staff
Internal Evaluation
Department
Office of the Managing
Director General
D. RESOURCE PERSONS
Annex B: List of Participants
79. Ms. SUNUNTAR SETBOONSARNG
Senior Agriculture Economist
Social Sectors Division
ssetboonsarng@adb.org
80. Mr. FLORIAN STEINBERG
Senior Urban Development Specialist
Urban and Transport Division
fsteinberg@adb.org
81. Ms. SANDRINE BOUCHER
Senior Economist
Office of the Director General
sboucher@adb.org
82. Mr. THATHA HLA
Economist (Financial Sector)
Financial Sector, Public Management and Trade Division
thla@adb.org
83. Mr. EDIMON GINTING
Economist (Trade and Financial Sector)
Financial Sector, Public Management and Trade Division
eginting@adb.org
84. Mr. RAVI NANGIA
Consultant
rnangia.consultant@adb.org
85. Mr. VICTOR L. YOU
Senior Advisor
Office of the Managing Director General
vyou@adb.org
Resource person (In order of appearance)
86. Dr. JEBAMALAI VINANCHIARACHI
Former Advisor to the UNIDO Secretary General
P.O. Box 300 1400 Vienna, Austria
vinanchiarachi@yahoo.com
87. Dr. CHRISTIAN H.M. KETELS
Professor
Harvard Business School, Institute for Strategy and Competitiveness
Ludcke House, Boston, MA 02163, USA
cketels@hbs.edu
88. Dr. VENKATACHALAM ANBUMOZHI
Capacity Building Specialist
Asian Development Bank Institute
Kasumigaseki Building 8F
3-2-5, Kasumigaseki, Chiyoda-ku, Tokyo 100-6008, Japan
vanbumozhi@adbi.org
89. Dr. TULUS TAMBUNAN
Director
University of Trisakti, Center for Industry, SME and Competition Studies
Jalan Kyai Tapa No. 1 Grogol, Jakarta Barat, Indonesia
sjahrir@rad.net.id
90. Dr. ERIC ROLF HANSEN
President
Economic Transformations Group, Inc.
112 W 27th St., Ste 400
New York, NY 10001 USA
Eric@ETGNow.com
91. Mr. ANDREAS KOENIG
Principal, EcoIndustry and Senior Advisor, Re-Tem Corp.
Auf der Hostert 6 A
D-65510 Huenstetten – Germany
andreas-koenig@re-tem.com
9

Resource person (In order of appearance)
92. Dr. C. VISVANATHAN
Professor
Asian Institute of Technology
P.O. Box 4 Klongkluang, Pathumthani 12120 Thailand
visu@ait.ac.th
93. Mr. MASAKI KOJIMA
Director
Zero-Emission Support Institute
Obayashi 5-5-31, 305, Takaruzaka-shi, Hyogo 665-0034, Japan
m-zesc@hnpo.net
94. Dr. ANTHONY S.F. CHIU
Professor/ Research Scientist
De La Salle University – Manila
2401 Taft Avenue, 1004 Manila, Philippines
anthonysfchiu@yahoo.com
95. Dr. KYEONGAE CHOE
Lead Professional (Water and Urban Development)
Urban Development Division
kchoe@adb.org
96. Dr. BRIAN ROBERTS
Director
Strategic Planning and Management Services
Canberra, Australia
SPMS@bigpond.com
Annex B: List of Participants
10

Annex C: Profile of Speakers and Panel Members
International Conference on Cluster Economic Development
Promoting Local Economies through SME Cluster Approach
ADB Headquarters, Manila, 26 February 2010
Profile of Speakers and Panel Members
Mr. Rajat M. Nag is the Managing Director General ADB since December 2006. Prior to his
current post, he was head of ADB’s Southeast Asia Department and Special Adviser to the
President on Regional Economic Cooperation and Integration. With broad experience across
Asia, Mr. Nag plays a critical role in providing strategic and operational direction to ADB so it
achieves its mission of helping its developing member countries reduce poverty and improve the
quality of life of their people. He also oversees the risk management operations of ADB.
Sultan Hafeez Rahman is the Director General of ADB’s South Asia Department (SARD)
covering Bangladesh, Bhutan, India, Maldives, Nepal and Sri Lanka, as well as regional
cooperation in South Asia. Prior to this, he was the Director General of ADB's Pacific
Department (PARD); Deputy Director General, SARD; and Director, Operations Coordination for
South Asia. As Director General, SARD, Mr. Rahman oversees the operations of six division
within the Department - country coordination and regional cooperation; transport and
communications; energy; agriculture, natural resources and social services; urban development;
and governance, finance and trade. Mr. Rahman holds a Ph.D. degree from Stanford University
and Master's degrees in economics from Vanderbilt University and Stanford University.
Jebamalai Vinanchiarachi is a former Principal Adviser to the Director-General of United
Nations Industrial Development Organization (UNIDO). His research paper on national industrial
innovation systems won the ‘best paper’ award in 2005 at the 14 th International Conference on
the Management of Technology. He has authored several journal articles, books, and reports.
His most recent books are Myths and Realities of the East Asian Model of Development; India’s
Time; Rethinking Development Realities and Intervene to Industrialize. His book, Rethinking
Development Realities, was selected as the best book in economics by Indian author in 2007.
Christian H.M. Ketels is a Professor of the Harvard Business School faculty at the Institute for
Strategy and Competitiveness. He is a Senior Research Fellow at the Stockholm School of
Economics and Director of The Competitiveness Institute (TCI), a global network of
professionals interested in competitiveness and cluster development. Dr. Ketels has led cluster
and competitiveness projects in many parts of the world, has written widely on economic policy
issues, and is a frequent speaker on competitiveness and strategy in Europe, North America,
and Asia.
Session 1: Examples of Successful Industry Clusters
Venkatachalam Anbumozhi (Anbu) is a Capacity Building Specialist of the ADB Institute. Prior
to this, he worked for the University of Tokyo; Institute for Global Environmental Strategies in
Kobe, Japan; Pacific Consultants International, Tokyo; and Asian Institute of Technology,
Thailand. A distinguished fellow of Asia Pacific Rim University Forum on Development and
Environment, he has advised JICA, JBIC, APO, and UNESCAP projects on sustainable
development. He has published several books, authored numerous research articles, and

Annex C: Profile of Speakers and Panel Members
produced many project reports on natural resource management, environment-friendly
infrastructure design, and public-private partnership for sustainable development.
Tulus Tahi Hamonangan is Head of Center for Industry, SME and Business Competition
Studies at the University of Trisakti in Indonesia. His main research interests are economic
development, <strong>international</strong> economy, and industry. His publications include SME in Asian
Developing Countries (published in London in 2009) and Development of SME in ASEAN
Countries (published in India in 2009).
Eric Rolf Hansen is the President of Economic Transformation Group, Inc. His areas of
expertise are urban and regional economics, cluster analysis and mapping, economic
competitiveness, sustainable economic development, regional and national clustering policy,
urban planning, and managing broad-based economic change and actions. He has more than
30 years of experience in research, analysis, and consulting in regional economic analysis
clustering, and economic competitiveness strategy in Europe, Asia, the Middle East, Latin
America, Africa, and the United States.
Naomi Chakwin holds a Ph D. in economics. She is the Director of Financial Sector, Public
Management and Regional Cooperation Division of ADB’s East Asia Department. Prior to
joining the East Asia team, she was the Regional Director of ADB's office in Sydney, Australia
and has spent 16 years in financial sector development issues across the Asia region. Before
joining ADB, she was an economist at the World Bank, Harvard Institute for International
Development, and OECD in Paris.
Rana Hasan is a Principal Economist at the Economic Research Department of ADB. He
received a Ph.D. in Economics from the University of Maryland in 1997 and an MA in
Economics from the Delhi School of Economics, University of Delhi in 1990.
Session 2: Examples of Eco-Clusters
Andreas Koenig is a Principal at the EcoIndustry Company in Germany, a Senior Advisor for
Re-Tem Corporation in Tokyo, and a Senior Associate of Indigo Development in California. He
has over 20 years of experience in strategic development assistance in the fields of natural
resources, environmental management, and eco-industrial development in Asia, North Africa,
Middle East, and the Caribbean.
Chettiyappan Visvanathan is a Professor at the School of Environment, Resources and
Development of the Asian Institute of Technology (AIT) in Bangkok. He has extensively worked
and written on Waste Minimization and Waste Auditing/Clean technologies, Environmental
Technology Assessment, Industrial Waste Management and Industrial Pollution Control. Adding
to his academic competency and domain expertise are his wide range of research projects from
<strong>international</strong> funding and donor agencies. An active member of UNEP-IEO working group on
Metal Finishing, International Water Association and Global Environmental Technology Network
(GETNET), WHO Geneva, he also advises multilateral institutions, such as UNEP, UNIDO, etc.
Masaki Kojima is the Director of Zero-Emission Support Institute in Japan. For more than 30
years, Mr. Kojima has been involved in urban development, landscape design, and local-area
zero emissions for environmental systems planning and the Kobe Institute of Urban and Local
Problems.
2

Annex C: Profile of Speakers and Panel Members
(Anthony) Shun Fung Chiu is a Full Professor at the Graduate School of Business, and Center
for Engineering and Sustainable Development Research and Industrial Engineering Department
of the De La Salle University Manila. He works in the fields of cleaner production, operations
strategy, and eco-industrial development. His latest publication is a United Nations Environment
Programme kit on cleaner production and eco-industrial development. He authored more than
150 publications and technical presentations in more than 100 countries around the world.
Daniele Ponzi has about 28 years of experience in the environment field as staff and consultant
for various <strong>international</strong> organizations, Italian companies, and NGOs. Currently, he is the Lead
Environment Specialist of ADB. From November 2005 to November 2008 he was on a 3-year
leave of absence from ADB and served as manager of the Sustainable Development Division of
the African Development Bank (AfDB). In this capacity, he led AfDB safeguards and GEF
coordination and co-led the development of the AfDB emerging climate change agenda, in
particular the AfDB climate adaptation strategy and the Clean Energy Investment Framework.
Katsuji Matsunami is Advisor and Practice Leader for Agriculture sector development in ADB.
From 2002 to 2009 he held the Director Positions of Agriculture and Environment Management
Divisions in East Asia Regional Department as well as Central West Regional Department.
Session 3: Promoting Local Economies through SME Cluster Approach
(Kay) Kyeong-Ae Choe is the Lead Professional (Water and Urban sectors development) of
the ADB, who spearheaded the Cluster Economic Development and this Conference. She
currently serves as the co-chair of ADB's Urban Sector Experts Group and committee member
of Water Sector Experts Group. She has been covering regional planning, urban and rural
development, land and water resources management, and economic analysis of <strong>international</strong>
development projects. In total she has over 22 years of professional experience in <strong>international</strong>
urban development projects and studies, in more than 20 countries across Central Asia, East
Asia, South Asia, and Southeast Asia, as well as in European and African countries. She
earned a Ph.D. in City and Regional Planning in 1994 and an MS in Economics from the
University of North Carolina, Chapel Hill, USA. She also holds an MS in Urban and Regional
Planning (Land Use) from the University of Wisconsin, Madison, USA in 1989.
Brian Roberts is Emeritus Professor at the University of Canberra, Australia and Director of the
Strategic Planning and Management Services. He is an urban management specialist with more
than 30 years of experience as a professional planner, project manager, academic, and adviser
on a wide range of urban and economic development projects. He has authored or co-authored
more than 100 <strong>conference</strong> papers and publications, including a textbook on regional economic
development.
James Lynch is Director of the Transport and Urban Development Division in ADB's Southeast
Asia Department. Mr. Lynch joined ADB in 1997 and has held successive positions as Urban
Development Specialist, Senior Advisor to the President, and Deputy Country Director of the
Thailand Resident Mission. Prior to ADB, Mr. Lynch worked with a consulting firm in
Washington, DC that specialized in providing developing countries with advisory services in the
areas of urban development and housing finance. His career began in the private sector as a
consultant in real estate finance and urban economics. Mr. Lynch holds an MBA and a Masters
3

Annex C: Profile of Speakers and Panel Members
in City Planning from the University of California at Berkeley, and he completed his
undergraduate studies at Cornell University.
Bruno Carrasco is the Director of Country Coordination and Regional Cooperation Division of
ADB’s South Asia Department. Mr. Carrasco has a PhD in economics and joined the ADB as a
Young Professional in 1993. He has also worked for the UN in Africa. Mr. Carrasco was on
special leave in 2000-2003 working as a Senior Economist in the Economics Department at the
European Central Bank.
Session 4: Poverty-Innovation-Sustainability: How to Integrate Clusters in Sustainable
Development
Ashok Sharma is the Director of Financial Sector, Public Management and Trade Division of
ADB’s South Asia Department.
Ramesh Subramaniam is the Director of Financial Sector, Public Management and Trade
Division of ADB’s Central and West Asia Department.
4

Annex D: Welcome Remarks by Director General, South Asia Department
International Conference on Cluster Economic Development:
Promoting Local Economies through SME Cluster Approach
26 February 2010, ADB Headquarters, Manila, Philippines
WELCOME REMARKS BY
by Mr. Sultan Hafeez Rahman
Director General, South Asia Department
Asian Development Bank
Distinguished Guests, Ladies and Gentlemen, good morning.
On behalf of ADB I would like to extend a very warm welcome to you to this
<strong>conference</strong> on Cluster Economic Development. This is ADB’s first ever <strong>international</strong>
gathering on the subject of cluster economic development, which is attracting serious
attention from academics and policy makers.
I am indeed pleased to note that a broad cross-section of representatives from our
developing member countries from government, public institutions, academia and civil
society are with us here today, particularly thank you to our keynote speaker Dr. Jebamalai
Vinanchiarachi, former Adviser to the Director General of UNIDO, for sharing with us his
experience and perspectives on cluster development.
On average, informal sector economies in Asian countries contribute quite
substantial share (equivalent to 20%) to the economies, compared to formal industry
sectors. However, they are largely prevailing at the bottom one-third of income classes.
Many of the Asian DMCs hardly recognize the wealth created by these informal classes, and
not being able to capture into a formalized GDP figures. The scope of private sector
development is not only the investment banking and capital market, but also the socially
equitable development in private sector industries and SMEs for inclusive growth and
poverty reduction. With this backdrop, South Asia Department views that it is important to
generate appropriate strategic responses to leverage knowledge and resources to help
SMEs, for better investment climates and put poverty reduction back on track.
This <strong>conference</strong> pays special attention to how the cluster approach can be tapped to
fuel the growth and development of small-and-medium enterprises (or SMEs). SMEs play a
crucial role in the economy of many of our DMCs. Increasing the competitiveness of SMEs
will in turn contribute strongly to private sector development, a key driver of ADB’s Strategy
2020 and the goal of reducing poverty in the region.
With this backdrop, some key questions to consider are: what are the most effective
ways by which we can leverage our limited resources? How do we accelerate SME growth
and ramp up private sector development? How can we prioritize investments on
infrastructure development alongside limiting resources and the immense challenges of
urbanization? All these questions are related to economic growth and poverty-reduction
measures.
Distinguished guests, ladies and gentlemen, the cluster economic development
approach provides us with refreshingly different answers. It is my hope that this <strong>conference</strong>
will provide you with the platform to engage, debate and work out solutions to some of these
challenges, toward inclusive and sustainable economic growth.
I wish all of you a very productive <strong>conference</strong> and a most enjoyable stay in ADB and
Manila.
Thank you.

Dear Friends,
Annex E: Opening Address by Managing Director General
International Conference on Cluster Economic Development:
Promoting Local Economies through SME Cluster Approach
26 February 2010, ADB Headquarters, Manila, Philippines
OPENING ADDRESS
by Mr. Rajat M. Nag
Managing Director General
Asian Development Bank
On behalf of the Asian Development Bank, it is my great pleasure to join my colleagues in
welcoming you to our International Conference on Cluster Economic Development.
I am pleased to see so many representatives from government agencies across South and
South East Asia, who are directly involved in trade and SME development in their countries.
It is also very encouraging to see many experts representing a wide range of academia,
<strong>international</strong> organizations and institutions in this Auditorium today.
The purpose of today's <strong>conference</strong> is to enrich our knowledge of Cluster Economic
Development and its linkages to the SME-Cluster Approach.
The Asia and Pacific region, as you all know, has developed rapidly in recent decades. The
region has made significant strides in reducing poverty in the midst of a very fast economic
growth. It is a source of that pride that while in 1970, the level of poverty measured at under
a $1 /day was one in two persons, in 2003, it was 1 in 5. However, an immense task still lies
ahead of us to achieve the Millennium Development Goals (MDGs), for which in Asia we are
sadly offtrack.
In line with its development achievements, Asia is also in a period of rapid urbanization.
According to the latest UN projection, more than 54% of Asians will live in urban areas by
2030. This current urbanization pattern indicates that towns and cities are also sprawling out
to surrounding areas, forming “agglomerated (or clustered) urban-regions” and absorbing
patches of rural towns and villages in between.
This rapid urbanization does bring some benefits but also presents complex challenges. The
uncontrolled growth of cities has come with significant costs. Income gaps are widening
within and among urban and rural regions and developing countries. The region is suffering
under the weight of environmental degradation and increased risks of natural disasters due
to climate change. The recent energy and fuel crises, and of course the global financial crisis
which has tightened access to capital, have further added to the pressures.
On top of all this, we are only now beginning to emerge from the global downturn, which has
put significant budgetary and financial pressures on virtually all developed and developing
countries. With resources for development stretched tightly, it is clear—now more than
ever—that we need to target development funds to areas that can achieve the best impact. I
believe that the development story, while obviously a success, is highlighting the
environmental challenges, inequities and the rural urban divide. We, therefore, have to take
a new look -- a new approach – to address these issues.
One of these areas is the small and medium enterprise sector—SMEs. The last decade has
seen a huge emergence of SME clusters in the region. It is estimated that SMEs now
account for over 90% of all businesses, and employ as much as 60% of Asia's work force.
SMEs are increasingly recognized as a major driver of economic growth in developing Asia.

Annex E: Opening Address by Managing Director General
They play a crucial role in employment and income generation, and therefore in poverty
reduction.
However, Asia's export industries, particularly in the wake of the global recession, have
seen a dramatic decline due to low demand in global markets, high credit risks, poor
accessibility to capital and poor physical infrastructure. Many small and medium sized
enterprises are on the front line and therefore face the most difficulties.
Given the substantial opportunities for SMEs in areas such as manufacturing, services and
agriculture and their potential for reducing poverty, it is critical for governments to come up
with effective strategies and practical investment programs to facilitate further SME cluster
development.
The Cluster Economic Development (or CED) approach, which is the subject of our
<strong>conference</strong>, is a local economic development strategy that aims to promote the efficient use
of limited resources for maximum development impacts. As I said at the beginning, we are
excited about this approach, which provides a new paradigm for promoting the development
of industry and SME clusters and fostering competitiveness of cities. It is applicable to not
only the urban sector, but also more broadly areas in areas like the environment,
microfinance, regional cooperation and inclusive growth. It is an inclusive approach that
puts objective information in the hands of policy makers to decide in a coordinated way.
In essence, we believe the CED provides a useful analytical framework for strategizing the
development of SME industry clusters without being limited to urban-rural dichotomies,
thereby promoting more inclusive economic growth.
We believe that the analytical framework in the Cluster Economic Development approach is
a very powerful and practical tool for making investment decisions. It will identify spatial
clusters of industries that are competitive. The analytical tool, we believe, will show where
the infrastructure gaps are to enable SMEs/industry clusters to be more productive and reap
synergistic benefits through, for example, economies of scale. Above all, we believe it can
help policy makers make investment decisions on "where to invest first" and "what to
invest in" to maximize the economic benefits from limited resources. The approach can help
our developing member countries to target their investments based on their visions for
economic growth and poverty reduction.
Over the course of the day, we look forward to hearing examples of successful industry
clusters and eco-clusters in your countries that are making a difference in the lives of the
poor and creating jobs. You will hear how government, the private sector and civil society
can work together to promote SME cluster development, and above all, we want to hear
from you about the challenges and opportunities that need to be addressed for long-term
sustainability. Your insights and views on these discussions will help us at ADB to better
support our developing member countries in achieving their development goals.
As today's discussions unfold, I challenge all of us to consider how Asian countries can
accelerate progress on economic growth and poverty reduction while coping with the rising
global challenges more effectively. Asia is a success story, but faces inordinate challenges.
We see CED as one approach to meet these challenges. I hope all of you will freely
contribute your thoughts so that we can benefit from one another's field experience,
expertise, and practices. And I hope that the <strong>conference</strong> will promote further initiatives to
create a competitive environment for SME Clusters in Asia.
With that, I would like to welcome you and wish you a day of fruitful discussions.
Thank you very much.
2