Last March 12 to 14, 2012, representatives from the Mindanao industry clusters gathered for the National Industry Cluster Enhancement Program (NICCEP) Workshop in Davao City.

Taking off from the success of the Davao Industry Clusters Enhancement Project (DICCEP), the NICCEP has the objective of strengthening the capacity of selected industry clusters and replicate the DICCEP experience throughout the country. Pilot models are already being established in Luzon and Visayas, but as for Mindanao, according to DTI-11 Regional Director Mari-zon Loreto, its true essence is the creation of upgraded industry clusters to serve as models for other regions. Through this workshop, DTI hopes to boost the competitiveness of our industries, nurture convergence among stakeholders, enhance target participants’ understanding and appreciation of the value chain development approach through the sharing of best practices and field visits, and firm up Industry Cluster Plans. This is a joint project of the Japan International Cooperation Agency (JICA) and the Department of Trade and Industry.

All of the eight priority industry clusters were represented: Banana, Mango, Coconut, Seaweed, Wood, Mining, Tourism and ICT. Other industries like Poultry, Machinery, and Biofuels while not included in the priority industries, were also there to learn from the workshop with hopes of being included as three additional industries to make up a total of 11 target industries for Region 11.

Using the Value Chain (VC) Methodology, participating industry leaders can identify and assess the linkages within the value chain of their industry clusters in relation to an existing market. The key is to focus on strengthening those links instead of starting from scratch. The VC chart, as the outline for the targeted output, is designed to direct development plans on more grounded, concrete and industry-specific inputs that will prove useful in the facilitation of industry clusters. It also ensures that IC development plans are geared towards inclusive growth for all stakeholders within the value chain.

Rita Pilarca, senior adviser to the Private Sector Promotion Program of GIZ [German Deutsche Gessellschaft fúr Internationale Zusammenarbeit or the German International Corporation-Private Sector Promotion or GIZ-PSP], provided participants with valuable guidance on methodology, troubleshooting and best practices of pilot Industry Clusters. She emphasized a simple rule: capacity before opportunity. Industry facilitators must always identify a clear market before developing products for the market. Pilarca cited examples where a vicious cycle is created by catering to a market that is actually incompatible with industry stakeholders in cost or in production. The general result is non-compliance to agreements.

The challenge for participants is to find niche markets for their industry clusters and points of convergence that goes through all the layers of the value chain. In the institutionalization of the Industry Cluster and Value Chain Methodology, it is better to start from simple, functional improvements to more complex structural changes and strive for quick (real-time), visible results to attract private investors because government funding is limited. Members from unrepresented industries in the top 11 clusters were also able to learn from the healthy dialogue of the workshop.

DTI Undersecretary Merly Cruz concluded that industry facilitators should mainstream their industries immediately. Sustainability should be already embedded in all development plans to ensure the future. She stresses that this endeavor is not meant to revolve around DTI, whose only goal should be to jumpstart industries, strengthen inter-agency linkages to industries until they can stand on their own, and pass it on to the private sector.

JICA Representative Naoko Yago, expressed her appreciation to participants and organizers. She said that she was inspired by DTI Secretary Gregory Domingo and Undersecretary Merly Cruz as well as the great support from local industries themselves who expressed gratitude and interest for Japanese project initiatives.

Tetsou Inooka, the chief advisor of NICCEP, is in the Philippines to conduct consultations with the priority industries. A Joint Coordinating Committee shall facilitate intra/inter-organization coordination, aligned with the existing framework of DTI-RODG [Regional Operations and Development Group (RODG) - DTI], whose meetings shall convene twice a year.

NICCEP’s overall goal is to facilitate the increased contribution of the priority industry clusters to the national economy, particularly in terms of job-creation, strengthening SMEs, product value-adding, improving the business environment and reducing poverty in the Philippines. It is only when these goals have been realized can we say that this has been a real success. For more information about the NICCEP, you may visit their website at www.niccep.dti.gov.ph

God is Great!

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