Roundtable Conference for the Promotion of the Productivity Movement in Africa
28–31 August 2006, Hilton Hotel, Sandton, South Africa

Ladies and Gentlemen:

It is a great pleasure for me to be here in the Republic of South Africa to attend the Roundtable Conference (RTC) for the Promotion of the Productivity Movement in Africa, which the Asian Productivity Organization has the honor of sponsoring, and to address such distinguished guests and participants from Africa and resource persons from Asia. The purpose of this RTC is to enable our friends from the seven African member countries of the Pan African Productivity Association (PAPA) to formulate country-specific master plans to give new impetus to their productivity drives. It is my sincere hope that this conference will provide timely momentum for enhancing economic development through higher productivity in the participating African countries. It is also my hope that the conference will give an opportunity for PAPA to play a even greater role on the African continent with renewed support from its members.

Sometime ago, I saw on television an interview with Mr. Carlos Ghosn, President and CEO of Nissan Motor Company, a leading Japanese automaker. Mr. Ghosn was responsible for the successful turnaround of the company, from one that was losing money to a highly competitive enterprise in the global market. When asked about the most difficult obstacle that stood in the way of achieving this, he answered that it was not a lack of funds or other resources but a lack of realization on the part of his staff that things could be changed. Until they realized that the old, established way was not the only way to do business, it was not possible for him to introduce any reform measures. However, once that mindset had changed, other things gradually fell into place.

I believe that changing mindsets is what the productivity movement is all about. To establish the belief that we can change past practices, do better, and compete with the best in the world is an essential ingredient for achieving sustained economic development. The fact that Asia has achieved the highest economic growth rates in the world in the last half-century is not unrelated to the existence of many vibrant national productivity organizations (NPOs) in the Asia-Pacific region and the activities of the APO, the only intergovernmental regional organization that is actively promoting the cause of productivity.

Let me analyze some factors contributing to a successful productivity movement in APO countries. First of all, it is the NPOs. The NPOs occupy a pivotal position in the productivity movement, guiding, coordinating, and orchestrating other stakeholders. In order for NPOs to perform such functions, they must enjoy a high degree of autonomy, support, and flexibility. The Japan Productivity Center for Socio-Economic Development (JPC-SED) is an example. It played a major role in reconstructing the postwar Japanese economy by exposing thousands of top Japanese business managers to the most advanced management methods from the West. Yet it has been functioning independently without governmental interference since its founding in 1955. Although the JPC-SED is somewhat exceptional, most successful NPOs in the APO region have substantial independence from their governments. Our experience has shown that excessive intervention by a government has dampened the initiative and sapped the creative spirit of an NPO.

The second factor is government. The government has a crucial role to play in raising awareness about productivity among its people and industry and nurturing their positive attitude toward productivity improvement. Generally speaking, the effectiveness and sustainability of a productivity movement depends on the extent to which the government commits itself to the movement. This is because the productivity movement calls for considerable financial outlays and in many countries only the government can provide funding a regular and sustained basis. This is particularly true in countries where the productivity movement is still in a nascent stage.

Third, productivity is neither a monopoly of the NPO nor that of the government. Productivity cuts across all sectors and embraces all actors and layers of society. Toward that end, the NPO must ensure that it secures the widest representation and participation, including labor and business

In some countries, the productivity movement is regarded as anti-labor by union leaders. Every effort must be made to clear up such misunderstandings by treating labor as one of the pillars of the productivity movement. The business sector forms yet another pillar. For this reason, activities to improve productivity must be directed, first and foremost, at strengthening the private sector, particularly SMEs. Their active involvement is essential for any successful productivity movement.

Now I would like to talk about the APO, the only regional organization active in the field of productivity. Although attempts have been made to create similar regional organizations on other continents, they failed for one reason or another, in spite of the fact that there are a number of NPOs all over the world. Why has the APO been successful? There are several contributing factors.

When the eight founding NPOs met to discuss the possibility of launching the APO, they devoted quite some time on the ways and means to finance its operations. There were two schools of thought. One was to finance the organization with contributions from the NPOs themselves, without any government funding. The other was to ask their governments to shoulder the financial burden. Some NPO representatives were reluctant to accept the second option because they felt that such financial help often meant government interference. But financial prudence finally persuaded them to accept the second option, paving the way for the organization to stand on solid financial ground. Fortunately for us, most APO member governments have behaved maturely and refrained from interfering with the daily activities of the APO or NPOs.

In its early stages, the APO received some financial assistance from the USA. But it is Japan that has, by virtue of its large presence and techno-financial resources, retained the leading role in the APO. For many years, Japan not only paid the predominant part of the APO's expenditure, it hosted most of its projects, with the willing cooperation of major Japanese companies. It is not an overstatement to say that if it had not been for the Japanese government's initiative and support, the APO most probably would not have been established nor existed in its present form.

Gradually, the next layer of countries, such as Singapore, Malaysia, Thailand, Republic of Korea, and Taiwan, emerged as economic powers. As their strength grew, governments and NPOs in those countries started sharing responsibility with Japan in rendering assistance to other member countries. Forty years ago, a majority of APO projects was hosted by Japan. Recently, Japan has hosted roughly 10% of APO projects, while some of the other members are hosting as many projects as Japan. Here lies the secret of the longevity and effectiveness of our organization.

The APO's productivity journey may offer valuable lessons to other like-minded organizations. First, the financial commitment of member countries is a sin qua non to make a multilateral organization viable and sustainable. Second, the existence of a core country or countries willing to play a leadership role is crucial to keep momentum for organizational growth. And third, the development of a network of cooperation among member countries, with the more advanced member countries acting as mentors to the less advanced ones, is of particular value to narrow the productivity gap between them.

The participation of the experienced resource persons from APO member countries in this conference is clear evidence of the mutual cooperation that is the APO's bedrock spirit in promoting productivity. All of them are productivity doyens possessing rich experience and expertise in making their productivity movements a success. Without the concerted effort, commitment, and action of people like them, the APO could not have been as effective as it is today. It is our sincere wish that all the distinguished participants who are present here today at this RTC will join hands, hearts, and minds for the sake of productivity improvement in the African region.

I have noted the excellent arrangements made for the conference by the host organizations, the National Productivity Institute of South Africa and PAPA. I want to commend the leadership exercised by Dr. Yvonne Dladla and Mr. Thembo Lebang. I also want to express my deepest appreciation to Mr. Membathisi Mdladlana, Minister of Labour of the Republic of South Africa for his gracious presence. My special thanks go to Mr. Nelson Mandela for sending his video message. Nothing is more encouraging than the blessing from the most respected living statesman in the entire world. I would also like to take this opportunity to extend my heartiest congratulations to participants from Botswana, Kenya, Mauritius, Nigeria, Tanzania, Zambia, and the Republic of South Africa for their timely decision and commitment to revitalize the productivity movement in their respective countries.

I look forward to the outcome of this conference and hope that the results derived in the form of productivity master plans will be tangible and action oriented with clear guidelines and roadmaps for the participating NPOs and PAPA. Last but not least, I wish to express my heartfelt appreciation to the Japanese Government for the financial support to implement this RTC.

Thank you.

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