Archives: Special Events

43rd WORKSHOP MEETING OF HEADS OF NPOs
18-20 February 2003, Manila, Philippines

Statement of APO Secretary-General Mr. Takashi Tajima

I would like to take this opportunity to extend a very warm welcome to all delegates, advisers, and observers to the 43rd Workshop Meeting of Heads of NPOs organized in Manila, the Philippines. On behalf of the Asian Productivity Organization, I would like to express my sincere gratitude to the Government of the Philippines for its generous support and cooperation in hosting this meeting. I would also like to commend the Development Academy of the Philippines, in particular, Dr. Gonzalez and Dr. Romero and their able staff, for the excellent coordination and arrangements made for this meeting.

In all our endeavors for productivity improvement, our ultimate objective is the realization of a better quality of life for all. Michael Porter once mentioned that "A nation's standard of living is determined by the productivity with which it uses its human, capital, and natural resources. The appropriate definition of competitiveness is productivity." In my view, however, competitiveness reflects only one dimension of productivity as it should be complemented by other critical factors such as environmental protection and social fairness. Thus strengthening competitiveness, maintaining harmony between productivity and the environment, and responding to social fairness should constitute the three pillars of the present productivity movement. They are mutually reinforcing to achieve the ultimate objective of the productivity movement, that is, a better quality of life for all. These three pillars were presented when we celebrated the APO's 40th anniversary in 2001. Since then, APO activities have been designed taking these pillars of productivity into account, including the Two-Year Plan, which we will present in a subsequent session. Let me now present the salient features of our activities.

The major components of corporate assets have been shifting from tangible to intangible ones. Until the 1970s, such corporate assets as money, buildings, machinery, and equipment were considered more important in running a business than intangible assets such as knowledge, experience, ideas, and know-how. The scenario for strengthening competitiveness has reversed since the late 1980s, suggesting the emerging importance of knowledge as a productive asset to business corporations. New products and services can be derived on the basis of creative and innovative ideas and knowledge possessed by workers. Realizing that knowledge is a key source of competitive advantage, governments and organizations alike have accorded top priority to knowledge generation and application. The Republic of China serves as a good illustration as the government has sought to establish a nationwide knowledge management infrastructure.

The APO has already designated knowledge management as one of its thrust areas. The main focus has now shifted from the introduction of the theory and concepts of knowledge management to its actual application at enterprise level. Furthermore, strengthening of the capabilities of NPOs to propagate knowledge management among their client organizations is part and parcel of our major concerns. A shining example is the Vietnam Productivity Center (VPC). The VPC received technical assistance under the DON program in early last year and in less than one year has developed sufficient capabilities to render expert services on knowledge management to its client enterprises.

A creative and innovative mind is a hallmark of small entrepreneurs. Their mindset, driven by the economies of speed and networking that now appear to govern the business world, has put them on an equal footing vis-a-vis large enterprises when competing in global markets. In part, our program on SMEs has been directed at nurturing and strengthening the spirit of small entrepreneurs. The Asian Venture Forum, which has been organized annually in Osaka, Japan, since 2000 with financial support from the Japanese government, is a case in point. The forum has provided opportunities for small entrepreneurs in the Asia-Pacific region to develop cross-border strategic alliances in technology and marketing. A follow-up survey revealed that as many as 62 alliances had been forged over the first two years.

Strong SMEs have built up their core competence on their own initiative and can be expected to grow further. On the other hand, we need to recognize the hard reality that a majority of SMEs remains vulnerable as they feel themselves under serious pressure from the changing environment. Previously we have offered a host of projects to strengthen SMEs in general, but in coming years we need to embark on activities catering to the specific needs and priorities of weak SMEs.

The achievements and success of the APO Green Productivity (GP) program since the First World Conference on GP in 1996 reached greater heights with our historic participation in the World Summit on Sustainable Development (WSSD) in Johannesburg, South Africa, and the organization of the Second World Conference on GP in Manila, the Philippines, both held last year. Participation in the WSSD gave the APO an invaluable opportunity to share its vision and achievements with a global audience. I am glad to inform you that the APO proposal for a partnership initiative on GP-ICD projects in the Asian region was included in the official WSSD documents. As a follow-up to the WSSD, the Second World Conference on GP was organized to undertake a critical review of the progress of the GP program and determine future directions, taking the decisions and outcomes of the WSSD into account. Based on its deliberations, the conference issued the Statement on Green Productivity, which will form the basis for future GP activities. In line with that statement, we will pay immediate attention to methods for improving "unsustainable patterns of production and consumption." For this purpose, supply chain management from the standpoint of GP needs to be examined. This is also in line with the recommendations made by a high-level GP advisory committee comprising representatives of private Japanese corporations. Those corporations, particularly multinational corporations, have extensive knowledge and experience in environmental management. A close partnership with them, as illustrated by the formation of that committee, will therefore enrich the APO GP program. As suggested by the committee, a detailed survey on green procurement practices in some APO member countries will be conducted by the APO, and the results will be reported at the upcoming Workshop on Green Procurement in Manila. We hope that similar actions and practices in respect to green purchasing and procurement will be taken throughout the APO region.

Apart from these special activities, the GP program continues to explore avenues to expand and enrich the GP concept and its wider application. Issues like occupational health and safety, energy management, hazardous waste management, water management, and life cycle assessment were addressed throughout the year under various multi-country programs and GP Demonstration Projects (GPDPs). During 2002, special emphasis was placed on eco-tourism related projects to commemorate the International Year of Eco-tourism. In the area of information dissemination, several publications, posters, and CD-ROMs on GP-related issues were produced. The GP homepage has been mobilized to spread information relevant to GP more widely. The APO Secretariat has continued to strengthen global networking for GP-related projects with such organizations as the United Nations Environment Programme, Asian Development Bank, and US Environmental Protection Agency (US-EPA).

The Integrated Community Development (ICD) program has contributed to sustainable development and poverty alleviation through two major approaches. One is GPDPs at the community level. Based on the successful implementation of GP-ICD projects, the Vietnamese government in collaboration with the APO has now launched a nationwide campaign to broaden the impact of GP-ICD. The other approach is to develop a core cadre to play a leading role in sustainable community development. While these approaches will remain unchanged, the ICD program will further be strengthened by introducing the element of kaizen in projects for rural life improvement. Similar to its applications in the industrial sector, it is expected that kaizen in the agricultural sector will help alleviate poverty and enhance productivity at the community level.

The agriculture and food sector still accounts for a significant proportion of the national economy and employment in most member countries. Recent experience has shown that a nation's sustainable development cannot be ensured without sound development of this sector. Therefore APO projects in 2002 addressed the issues of genetically modified organisms (GMOs), adoption of quality assurance systems, and strengthening of sanitary and phytosanitary (SPS) measures. Sustainability issues were highlighted, including watershed and irrigation management, afforestation, and non-pesticide farming methods. We are increasingly aware that the agricultural sector has much in common with the APO thrust areas of SMEs and GP. Thus, we will pay more attention to two major areas in our activities: first, strengthening the competitiveness of agriculture and agribusiness through improved quality of products and their marketing; and second, promoting more sustainable development of agriculture including agricultural resource management and environmental protection. Considering the importance of this sector and its close linkages with thrust areas, I would like to call for more vigorous and continuous involvement of NPOs in this sector. I wish to emphasize that functional liaisons should be reinforced between NPOs and agriculture-related ministries and agencies to plan and carry out APO agriculture projects more meaningfully and smoothly.

I am pleased to report that the Development of NPOs (DON) program has expanded in terms of the number of member countries that have availed of the program and the variety of services offered. As to the country-specific program, we helped the Sri Lankan government to formulate the national productivity policy for the public sector, offered advice to the NPO Bangladesh in designing a strategic action plan for productivity improvement, and rendered expert services to the Vietnam Productivity Center to upgrade its capabilities in IT and knowledge management. At the same time, the multi-country program continued to make distinct contributions to the institutional development and capacity building of NPOs. In addition to annual projects such as workshops on productivity specialists, the APO best practice network has contributed to strengthening linkages among member countries, and now numerous client firms of NPOs are implementing the best practices gleaned from the network to attain higher productivity and increase their competitiveness. The Forum on Development of NPOs held in Tehran, Iran, in December last year discussed how to measure the integrated performance of NPOs, which is linked with the long-term vision and strategies. Based upon the concept of the balanced scorecard, the forum attempted to design a generic scorecard for NPOs.

Efforts at disseminating information about the APO and reference materials for productivity promotion continued to be given special focus. For this purpose, increasing use is being made of electronic media, particularly the APO Web site on the Internet. The number of visitors to the APO Web site has been rising steadily, and the Intranet/LAN system in the Secretariat is functioning effectively. In June last year, the APOnet was set up to serve as a hub of information exchange and networking among member countries, offering a prime source on productivity promotion. I hope all NPOs will make full use of this facility. Our next plan is to introduce e-books on the APO Web site. It is our hope that this e-networking will generate greater multiplier effects of APO projects and foster closer communication among the APO Secretariat, the NPOs, and project participants for better program planning, implementation, and follow-up. The 2002 edition of the APO Asia-Pacific Productivity Data and Analysis, which was first introduced in 2001, has already been published. I believe that the second edition presents productivity parameters in a more comprehensive manner than the first. However, all-out efforts should be made to improve further its usefulness to policy makers in government and business and all others concerned. Since I have a belief that APO projects should be planned reflecting not only regional and sub-regional strategies but also country-wise strategy, I also hope that this publication will become more useful for this purpose too. For those reasons, I would like to urge further cooperation of all NPOs for improving the publication.

I reported our financial position to the previous GBM in Malaysia. In order to cope with the financial constraints due mainly to the considerable reduction of special funds, I mentioned that the Secretariat would spare no efforts to make the best use of funds available. A number of actions have been taken in line with my statement. For example, Secretariat staff, participants, experts, and resource persons are already using discount air tickets. However, the use of discount tickets by participants can be implemented effectively only in cooperation with the NPOs. Participants in APO projects constitute the largest group of ticket users, averaging 2,200 per year, and the savings thus derived are expected to be quite substantial.

Furthermore, we also need your cooperation and assistance in regard to the local implementation costs. We wish to reconfirm the decision made by the Governing Body in 1998 that member countries should meet full local implementation costs when hosting APO projects. Two important implications are derived from this decision. First, bearing local implementation costs demonstrates the spirit of mutual cooperation among member countries on which the APO is based. Second, the APO's general funds thus saved can be used for other meaningful purposes such as generating new projects to meet the felt-needs of member countries. Of course, I am aware that many NPOs face budgetary constraints. In spite of the difficulties and constraints on your part, I hope that all NPOs will make further efforts to secure the necessary budget to honor the spirit of mutual cooperation and the principle of meeting all local implementation costs.

In the age of globalization, the APO must continue to network and connect with other international organizations in fulfilling its mission and goals. This will help create synergies that will improve access to new resources, both human and financial, while at the same time make our vision and achievements known globally. I must emphasize that the synergy derived from the pooling of resources and capabilities from within and beyond Asia and the Pacific has been mutually beneficial and must be sustained. Let me express my appreciation to the International Labour Organization, United Nations Environment Programme, Food and Agriculture Organization, International Atomic Energy Agency, Asian Development Bank, Food and Fertilizer Technology Center for the Asian and Pacific Region, Colombo Plan Secretariat, UBIFRANCE, Canadian International Development Agency, State of Hawaii, Carl Duisberg Gessellschaft, Maastricht School of Management, Regional Institute of Environmental Technology (Singapore), Asian and Pacific Development Centre (APDC), and European Partners for the Environment (EPE). I look forward to the deepening of relationships already entrenched over the years, and welcome continued assistance and cooperation from them in forming new working partnerships in the future.

Ladies and gentlemen, the productivity movement is a marathon without a finish line. The challenges of productivity promotion in the future will by no means be less than those in the past four decades. New development scenarios in the region and the world, rapid advances in technology, unique models in business and production processes, and fresh demands from society will require new and different perspectives and strategies in our productivity endeavor. We should respond to new challenges with innovative and creative minds so as to retain our distinct credibility. This task can be achieved by cementing partnerships among member countries and by pooling resources and sharing experiences among them. The new vision of the APO referred to earlier has been developed based primarily upon the shared wisdom and aspirations of member countries. Partnerships nurtured over the years are particularly relevant today because they are of real power when riding out uncertainties in the prevailing environment.

Of all the challenges facing us, we need to place priority on answering one question: "Where is our productivity movement heading?" My question is simple but answers are not so easy to find because of uncertainty and discontinuity in the global economy. Answers may not be identical among member countries in light of their diverse needs and requirements. I therefore wish to propose that this Workshop Meeting, especially during the strategic planning discussion, identify and delineate specific directions and major strategies the APO should adopt in the 21st century. In this regard I would like to suggest that the guidelines of region- and country-wise strategies for productivity improvement should be formulated through the discussions, so that our productivity movement will not only grow but also more effectively serve the exact needs of each member country.

I would like once again to thank the Government of the Philippines for hosting this meeting and the Development Academy of the Philippines for making excellent arrangements. I wish you all very fruitful discussions and an enjoyable stay in Manila. Thank you.

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