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TitleTool Kit for Rapid Economic Assessment, Planning, and Development of Cities in Asia
LanguageEnglish
File Size5.1 MB
Total Pages157
Table of Contents
                            Tables, Figures, Boxes, and Maps
Acknowledgments
About the Author
Abbreviations
Abstract
Introduction
Economic Development Context
Rapid Economic Assessment Tool Kit
Tools Manual
Notes on Preparing City Economic Development Plans
Appendixes
References
                        
Document Text Contents
Page 1

Tool Kit for Rapid Economic Assessment, Planning, and Development of Cities in Asia

This tool kit provides a framework and tools for conducting rapid assessments to prepare city economic
development plans in Asian cities. An analytical framework is presented to guide readers through a series
of steps for three analytical and assessment processes. These are (i) City Economic Development Analysis,
(ii) City Economic Development Futures Appraisal, and City Economic Development Strategic Planning and
Development. The tools are designed to prepare economic profiles; evaluate future economic development
options and pathways; and prepare strategies, action plans, and prioritize investment activities in support of
city economic development. The steps in each process are linked to tools which assist users in collecting and
analyzing data and information for a range of studies, and to assessment techniques used to prepare a city
economic development plans. The tool kit includes new qualitative assessment tools developed specifically
for use in developing countries. It is intended primarily for use by staff of the Asian Development Bank.
However, it is expected to be very useful for government officials, investors, developers, local community
leaders, and international development assistance agencies involved in activities designed to support city
economic development.

About the Asian Development Bank

ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member
countries reduce poverty and improve the quality of life of their people. Despite the region’s many successes,
it remains home to the majority of the world’s poor. ADB is committed to reducing poverty through inclusive
economic growth, environmentally sustainable growth, and regional integration.

Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for
helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants,
and technical assistance.

AsiAn Development BAnk
6 ADB Avenue, Mandaluyong City
1550 Metro Manila, Philippines
www.adb.org

ASIAN DEVELOPMENT BANK

Tool KiT for rapid Economic
assEssmEnT, planning, and
dEvElopmEnT of ciTiEs in asia

Page 2

ASIAN DEVELOPMENT BANK

Tool KiT for rapid Economic
assEssmEnT, planning, and
dEvElopmEnT of ciTiEs in asia

Brian H. Roberts

Page 78

Tools manual 67

Competitiveness Analysis of Ready-Made Garment Industry Clusters
Figure 11 shows the scores for 39 current and future attributes of competitiveness for the RMG
industry clusters in Colombo, Sri Lanka; in Delhi, India; and in Dhaka, Bangladesh. Figure 11 shows
the 39 attributes of competitiveness for the fi ve drivers aggregated to 13 key or primary attributes.
There are signifi cant diff erences between the competitiveness of attributes in the three clusters.
The comparative analysis suggests that, overall, the Colombo cluster is the most competitive of
the three clusters. This is because it is more specialized and targets the higher-value end of the
global consumer market. However, the cluster has a number of weaknesses that need support if
it is to enhance its competitive position and develop. Furthermore, the three clusters face strong
competition from Southeast Asian producers and will not be able to strengthen their competitive
position by relying on advantage through economies of scale in the future. To develop, the three
clusters will have to identify how to add value along their supply chains.

Several weak competitiveness attributes are common to the three clusters. On the whole,
government support is indiff erent compared with that in other Asian countries. Value adding,
development of markets, access to resources, and access to skilled labor are common factors
undermining the competitiveness of the clusters. In Colombo, conditions in the social and business
environments, collaboration, technology orientation, infrastructure, and supply chains are healthier
than those in the other clusters. The Colombo cluster appears to have a much stronger willingness
of fi rms to collaborate, although this might be because the fi rms in the cluster are willing to pitch
themselves.

figure 11 Comparisons of 13 Primary Competitiveness Attributes
of Three Ready-Made Garment Clusters

Apparel Cluster Colombo

Okhla and Noida Ready-made Garments Delhi

RMG Industry Dhaka

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00
Labor

Infrastructure

Resources

Social Environment

Markets

New Products

Business
Environment

Structure

Collaboration

Technology
Orientation

Supply Chains

Value Adding

Government

FIRM STRATEGY
STRUCTURE
AND RIVALRY

RELATED
SUPPORTING
INDUSTRIES

DEMAND
CONDITIONS

FACTOR
CONDITIONS

Source: B. H. Roberts et al. 2010.

Page 79

68 Tool Kit for rapid Economic assessment, planning, and development of cities in asia

In Delhi, the market focus of all the firms is on exports, primarily to generate foreign exchange
earnings. While leading firms in the clusters are aware of the potential of developing domestic
markets, ine�ciencies in the production chain process of the cluster mean that profit margins and
the potential to add value and expand demand in the domestic market have not been attractive.

Specifically, firms in Dhaka are reluctant to share information and knowledge to improve cross-
industry learning that could support innovation. Social capital in the cluster is strong because of the
long history and associations between local producers and suppliers in areas with a strong physical
concentration of similar types of businesses. As a result, opportunities for the clusters to support
endogenous growth are being hampered.

In short, government support for cluster development in the three countries is generally weak,
especially the unwillingness of the governments to streamline business approval processes, increase
resources for education and training, and introduce incentives to upgrade technologies that would
enhance business performance and lead to more sustainable industry development. Governments
in the three countries are also reluctant to address the serious environmental problems associated
with the RMG clusters.

Most clusters enjoy some strategic advantage by being located close to sources of raw materials
that are not only of good quality but are reliable in terms of supply; however, there is still a high
import component, especially for synthetic garments, which weakens the competitiveness of the
resource attribute. Competition in global markets has raised awareness of the need for improved
quality assurance, production sustainability, and business ethics. Without such improvements,
cluster firms find securing international contracts di�cult.

Two sets of competitiveness attributes require the most support. The first set is related to
supporting industries, especially strengthening the delivery and quality of local business support
services, identifying opportunities to add value to supply chains, and sharing this knowledge with
other businesses in the cluster. Enhancing the competitiveness of these attributes associated
with factor conditions will require formal and informal dissemination of knowledge through the
development of training facilities, networks and partnerships, and industry associations.

The second significant set of attributes requiring support relates to government services. As
already mentioned, government support for the RMG clusters is limited in all three countries.
Approval systems for business development are bureaucratic, which deters investors and new
entrants into the cluster. Furthermore, business and environmental regulations are complex and not
enforced. The failure of governments to address environmental problems a�ects public health and
productivity. Finally, government support for research and development is limited, undermining the
capacity of the clusters to raise productivity and production along supply chain systems.

Page 156

references 145

. 2011. Lesson 8: The Cohort Component Population Projection Method.
http://www.cpc.unc.edu/measure/training/online-courses/non-certficate-courses/pap/
lesson-8

Voet, D. and J. G. Voet. 1995. Biochemistry. New York: John Wiley and Sons.

Webster, D. and L. Muller. 2000. Urban Competitiveness Assessment in Developing Country
Urban Regions: The Road Forward. Washington, DC: Urban Group INFUD, The
World Bank. http://info.worldbank.org/etools/docs/library/166856/UCMP/UCMP/
Documents/competitiveness.pdf

Wilson, D. and L. Beaton. 2003. Promoting Institutional and Organisational Appraisal
and Development: A Source Book of Tools and Techniques. London: Department for
International Development of the United Kingdom. http://webarchive.nationalarchives.
gov.uk/+/http://www.dfid.gov.uk/pubs/files/prominstdevsourcebook.pdf

World Bank. 2000. Environmental Strategies for Cities. Washington, DC.

. 2004. SWOT Analysis Questions and Data Analysis Template. http://www
.worldbank.org/urban/local/toolkit/docs/m2/templates/module-2-template-1.pdf

. 2007. Understanding Your Local Economy: A Resource Guide for Cities.
Washington, DC.

. 2009a. Clusters for Competitiveness: A Practical Guide & Policy Implications
for Developing Cluster Initiatives. Washington, DC: World Bank, International Trade
Development. http://siteresources.worldbank.org/INTEXPCOMNET/Resources/
cluster_initiative_pub_web_ver.pdf

. 2009b. Evaluation of Cost–Benefit Analysis in Bank Projects. http://ieg
.worldbankgroup.org/Data/reports/Approach_Paper_CODE_cost_benefit_analysis.pdf

Page 157

Tool Kit for Rapid Economic Assessment, Planning, and Development of Cities in Asia

This tool kit provides a framework and tools for conducting rapid assessments to prepare city economic
development plans in Asian cities. An analytical framework is presented to guide readers through a series
of steps for three analytical and assessment processes. These are (i) City Economic Development Analysis,
(ii) City Economic Development Futures Appraisal, and City Economic Development Strategic Planning and
Development. The tools are designed to prepare economic profiles; evaluate future economic development
options and pathways; and prepare strategies, action plans, and prioritize investment activities in support of
city economic development. The steps in each process are linked to tools which assist users in collecting and
analyzing data and information for a range of studies, and to assessment techniques used to prepare a city
economic development plans. The tool kit includes new qualitative assessment tools developed specifically
for use in developing countries. It is intended primarily for use by staff of the Asian Development Bank.
However, it is expected to be very useful for government officials, investors, developers, local community
leaders, and international development assistance agencies involved in activities designed to support city
economic development.

About the Asian Development Bank

ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member
countries reduce poverty and improve the quality of life of their people. Despite the region’s many successes,
it remains home to the majority of the world’s poor. ADB is committed to reducing poverty through inclusive
economic growth, environmentally sustainable growth, and regional integration.

Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for
helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants,
and technical assistance.

AsiAn Development BAnk
6 ADB Avenue, Mandaluyong City
1550 Metro Manila, Philippines
www.adb.org

ASIAN DEVELOPMENT BANK

Tool KiT for rapid Economic
assEssmEnT, planning, and
dEvElopmEnT of ciTiEs in asia

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