44th WORKSHOP MEETING OF HEADS OF NPOS
10–12 February 2004, Colombo, Sri Lanka
Statement of the Secretary-General
by Takashi Tajima
Secretary-General, Asian Productivity Organization
I would like to take this opportunity to extend a
very warm welcome to all delegates, advisers, and
observers to the 44th Workshop Meeting of Heads of
NPOs organized in Colombo, Sri Lanka. On behalf of
the Asian Productivity Organization (APO), I would
like to express my sincere gratitude to the Government
of Sri Lanka for its generous support and cooperation
in hosting this meeting. I would also like to commend
the National Productivity Secretariat, in particular
Mr. Mahinda Gammampila, Mr. Upali Marasinghe, and
their able staff, for the excellent coordination and
arrangements made for this meeting.
The last Governing Body Meeting held in Fiji in September
2003 undertook an intensive discussion of the APO’s
policies and strategies that have an important bearing
on its future operations. Let me highlight a few key
issues raised during that meeting. First, the Governing
Body reached a unanimous consensus to shift program
focus from Category A to Categories B and C to meet
the increasingly diversified needs and requirements
of member countries in a more effective manner. Second,
the Governing Body directed the Secretariat to give
a higher priority to the cost-effectiveness of the
APO’s overall operations. In this connection,
the importance of bearing local implementation costs
by host countries was also stressed. Third, it was
suggested that further efforts be made by the APO
to forge strategic partnerships with the private sector
as well as with other agencies. I will come back to
these issues later and refer to the actions we have
taken or plan to take.
Taking this opportunity I would like to emphasize
the significance of the three pillars that form a
new vision for the productivity movement and which
I first articulated at the 40th Anniversary celebrations
of the APO in 2001. First, in response to the changes
brought about by economic globalization, our movement
should place greater emphasis on strengthening national
competitiveness. Second, it should strike a balance
between productivity promotion and environmental protection.
And third, it should uphold social fairness to mitigate
the undesirable effects resulting from the power of
market mechanisms. All three are mutually reinforcing
to achieve the ultimate goal of the productivity movement,
which is a better quality of life for all. I have
directed my staff to take into account these three
pillars of productivity in designing APO activities,
including the Two-Year Plan that will be presented
in a subsequent session.
Let me now present the salient features of our activities.
"Knowledge has become the key economic resource
and the dominant source of comparative advantage,"
as stated by Peter Drucker. Knowledge is the driver
of productivity and economic growth. Therefore knowledge
management (KM) has gained great importance as a new
management paradigm in the 21st century. Because of
this, the APO has designated KM as a thrust area of
its activities. Among the multi-country projects on
KM implemented last year were symposia and study meetings
on intellectual property rights, learning organizations,
and entrepreneurship and innovation. APO resources
have been deployed to support member countries in
their efforts to implement KM. At the same time, NPOs’
capabilities in propagating KM and its applications
among client organizations were also enhanced not
only through multi-country but also country-specific
projects.
The application of KM has so far been focused on
large corporations and organizations. There is also
a strong tendency to apply KM based upon an established
information technology (IT) platform and facilities.
However, we believe that future activities in KM should
aim to widen the scope of its application as relevant
to Asian environments. More specifically, future projects
will examine applications of KM in small and medium
enterprises (SMEs), which are dominant in member countries.
As a new approach, attempts will be made to introduce
KM in the non-IT environment, which is again a shared
feature among many member countries.
Globalization and advances in information and communication
technology have changed the role played by SMEs. In
order to remain relevant, SMEs must seek new niches
and play more dynamic roles in the new economy. The
key to their success also lies in their ability to
improve their techno-managerial capabilities and to
form strategic corporate alliances across national
borders. The coexistence of the three critical factors
of niche markets, innovation, and collaboration is
integral to the competitiveness of SMEs. As part of
its program on SMEs, therefore, the APO has placed
special emphasis on nurturing and strengthening the
entrepreneurial spirit. A good example is the hosting
of the Asian Venture Forum, organized annually in
Osaka, Japan, since 2000 with financial support from
the Japanese government. The forum has served as a
channel for small entrepreneurs in the Asia-Pacific
region to establish cross-border strategic alliances
and business fusion in marketing and technological
innovation. For example, more than 120 business-matching
opportunities were created during the last year’s
forum. In future, this will be an area of emphasis
as strategic alliances will result in substantial
benefits to SMEs.
In reality, however, a vast majority of SMEs remain
weak and lack the needed ability to build up their
own competencies in rapidly changing business conditions.
The APO will undertake additional activities catering
to the specific needs of SMEs. The ongoing survey
on micro-financing is one illustration which is being
conducted to devise measures for the improvement of
the business environment of micro-enterprises so that
they can transform themselves into full-fledged SMEs.
The Second World Conference on Green Productivity
(GP) held in Manila in 2002, which followed the World
Summit on Sustainable Development (WSSD) in Johannesburg,
provided the overall framework for all NPOs to address
issues under the GP Program. A re-examination of the
success and accomplishments of past years enabled
us to readjust our course of future action. The APO
has continued its successful implementation of GP
demonstration projects (GPDPs.) The ability of the
NPOs to multiply the success of one GPDP into many
others has been upgraded. A number of new GPDPs coupled
with ongoing projects in the areas of, for example,
resource management, natural farming, and the tourism
industry, will provide the NPOs with many successful
cases for the further dissemination of GP in their
respective countries.
In response to the outcomes of the Second World Conference
on GP, we have also designated the three core priority
areas of greening supply chains, resource and waste
management, and the Type II Partnership Initiatives
submitted to the WSSD on (a) GP-Integrated Community
Development (ICD) projects and (b) the Sustainable
Investment Global Network for the Triple Bottom Line
in Asia (SIGN3-Asia). In this regard, I am very happy
to report that the APO Secretariat has established
a GP Advisory Committee, composed of Japanese business
leaders, to advise the APO on GP activities, especially
on greening supply chains. I am particularly pleased
to inform you that this committee will be chaired
by Mr. Yoichi Morishita, Chairman of Matsushita Electric
Industrial Co., Ltd., which is one of the leading
business corporations in environmental management
in the global market.
In response to a request made during the last Governing
Body Meeting, we have launched a new Category B Regional
GPDP on Energy Efficiency and Greenhouse Gas Emission
Reduction. This project is expected to build up the
capabilities of the NPOs in these areas. This cluster
approach will also be applied to other priority areas
such as water resource management and solid waste
management to create a regional impact.
Reduction of poverty and income disparity should
be achieved with the initiatives and actions of local
people. The ICD Program has been encouraging these
efforts through two major approaches. One is GPDPs
at community level. After a series of successful pilot
attempts, a nationwide program has been started in
Vietnam and some other countries are conceiving pilot
attempts. Jointly with the Vietnamese government,
the APO introduced the GP-ICD Program at the WSSD.
The other approach is to develop a core cadre to facilitate
ICD activities mainly through knowledge sharing and
skill development. In this regard, the ICD Program
will be further strengthened by learning from regional
wisdom such as movements for rural life improvement
and the "one village-one product" campaign.
In many APO countries, the agriculture and food sector
still accounts for a significant proportion of the
national economy and employment. A nation’s sustainable
growth cannot be ensured without the sound development
of this sector. The agriculture sector constitutes
an important part of the APO thrust areas of SMEs
and GP and is being challenged by strong internal
and external market forces and growing environmental
concerns. APO projects in 2003, therefore, addressed
the issues of marketing infrastructure, food certification
systems, water resource management, women entrepreneurs
in agribusiness, etc. We will further accelerate our
efforts in two major priority areas: first, strengthening
the competitiveness of agriculture and agri-business
through improved quality and safety of products and
better marketing infrastructure; and second, promoting
sustainable development with environmentally friendly
practices and advanced resource management. In this
context, you may recall that every year I have requested
more active involvement of NPOs in this sector. I
appreciate the recommendation made by the previous
Workshop Meeting to strengthen the relations between
NPOs and agriculture-related authorities.
The Development of NPOs (DON) Program is another
thrust area. Over the years, the APO has implemented
a host of projects designed to enhance the capabilities
of NPOs so that they can play a pivotal role in leading
the productivity movement at the national level. For
this, the guiding principle is the spirit of mutual
cooperation that closely binds member countries and
NPOs together. In country-specific programs, the APO
has always encouraged NPOs to tap the resources and
expertise possessed by fellow NPOs as they share a
more or less similar vision, mission, and goal. Advanced
NPOs and other willing NPOs have provided mentoring
assistance in various modes, including the dispatch
of experts, the exchange of NPO staff through study
attachments, and the sharing of information on areas
in which assistance is required. For example, the
Vietnam Productivity Center received technical help
from the SPRING Singapore-Service Quality Center starting
in September last year to develop in-house capability
on service quality. ROC experts on industrial engineering
(IE) were dispatched to the Training and Productivity
Authority of Fiji to help develop a national program
on IE and train their in-house consultants and associate
trainers from industry in the conduct of the program.
A memorandum of understanding between the National
Productivity Council, India, and the National Productivity
and Development Center, Mongolia, was signed to strengthen
the staff capabilities of the latter. All of these
activities constitute an integral part of long-term
programs under DON in support of NPOs’ institutional
development.
As I reported in my statement last year, we have
intensified our own IT utilization through the APO
intranet, the APOnet, and APO Web site. The APO intranet
has improved the work productivity of the Secretariat
by allowing quick communication among staff members.
The APOnet has been set up primarily to ensure more
efficient sharing of information between the NPOs
and the Secretariat. The APOnet contains updated and
state-of-the-art information on various technologies,
tools, and productivity practices. I would like to
urge all NPOs to use this wealth of information for
their advisory, consultancy, and training activities.
The number of visitors to the APO Web site has increased
five-fold from 4,000 to more than 21,000 per month.
More than 20 e-books have also been uploaded to the
APO Web site. In addition, we have initiated innovative
IT-based projects. Among others, the APO launched
the first e-Conference on SIGN3-Asia, in which more
than 300 individuals participated as well as a Web-based
training course on ISO 9001:2000. The APO is planning
to organize more Web-based projects in future and
to utilize the APO e-forum as a platform for a network
among APO participants over the Internet, so that
they can share their experiences with colleagues and
friends to generate multiplier effects.
With the effective introduction of IT, the APO has
not only disseminated information and knowledge to
a wider public domain but also helped reduce costs.
The APO Secretariat itself has saved a significant
amount of telephone and postal charges but more importantly
a tremendous volume of qualitative benefits was derived
which cannot be easily quantified. The APO will continue
exploring and using emerging IT technologies for the
efficient and effective utilization of available resources.
We have conducted both internal and external project
evaluation on a regular basis to improve the quality
of our projects and to meet the needs of member countries.
This exercise has gained increasing significance as
the achievements of our projects should be presented
in a more tangible manner to secure financial and
other support from member countries, other agencies,
and the public. With a view to stepping up our efforts
in this regard, I would like to suggest that post-project
evaluation be undertaken for selected projects as
a biennial exercise. The method will be worked out
in consultation with NPOs, and I need your full support
for this suggestion to enhance the credibility of
the APO.
The first edition of the APO Asia-Pacific Productivity
Data and Analysis came out in 2001 and it has become
an annual publication. It has earned a good reputation
as it provides valuable information to examine the
process of productivity growth, comparisons with other
member countries and advanced countries, and issues
to address in the future. This publication now represents
an important core competence of the APO thanks to
the cooperation of all member countries. It can also
be instrumental for NPOs to obtain financial and other
support from their governments and people. I need
your continued support to increase the level of confidence
in it as well as its authoritative status. In this
regard I wish to stress that the quality of the data
and analysis in the publication is dependent largely
on the competency of the national experts who are
recommended by NPOs. If the data submitted by a national
expert are less than reliable, the whole exercise
is futile for the country he or she represents. I
would like to urge all the NPO heads to analyze the
data that their national experts have provided and,
if need be, to replace them with others who can do
a better job.
At the outset of my statement, I highlighted a few
issues dealt with at the previous Governing Body Meeting.
Let me present actions we have taken or plan to take
to respond to those issues. In regard to the request
to shift from Category A to B and C projects, the
Two-Year Plan 2005 and 2006 shows that Categories
B and C projects will increase drastically. In terms
of budgeting, for example, they will constitute 48
percent for 2005 and 54 percent for 2006. Relating
to the cost-effectiveness of APO operations, we are
regularly monitoring improvements made and will report
the achievements to the next Governing Body Meeting.
As a cost-saving measure, discount air tickets are
now widely used, and some projects are implemented
through e-learning which is highly cost-effective.
In this connection, we again request all NPOs to ask
their governments for the necessary financial support
to meet local implementation costs as this is crucial
to our cost-saving efforts and effectiveness in the
spirit of mutual cooperation among member countries.
Regarding strategic partnerships, we have already
established working relationships with a wide variety
of international and national agencies but will also
step up efforts to develop new partnerships with others.
We receive numerous inquiries from countries outside
the region, for example, in Africa, on the possibility
of associate membership in the APO. Article 4 of the
Convention stipulates that governments outside the
Asian region may become associate members of the APO,
entitled to participate in all meetings and activities
of the APO and its organs. However, the Convention
does not specify their duties and obligations once
they become associate members. Our provisional proposals
are as follows: first, the associate member should
be a government; second, it should bear a certain
amount of membership contribution; third, it should
meet travel expenses including airfare, per diem allowances,
and local implementation costs when taking part in
APO projects; and finally, an associate member would
have no voting rights at the Governing Body Meeting.
In my view, an expansion of the APO network beyond
the Asia-Pacific region is likely to bring new benefits
to members in the globalized world. Although this
is a matter delegated to the Governing Body for consideration
and decision, I wish to seek your views and advice
on drafting a proposal to be submitted to the next
Governing Body Meeting.
The APO works through its network of NPOs in member
countries. Within this network, the proactive participation
and initiative of all NPOs in sharing their expertise
and resources for the common good of the organization
remain vitally important. In this globalized age,
however, the APO must constantly look beyond its boundaries
to network and connect with other international organizations
in fulfilling its mission and goals. The synergy derived
from the network of resources and capabilities from
within and beyond Asia and the Pacific has been mutually
beneficial and must be sustained. On this note, let
me express my appreciation to the United Nations,
International Labour Organization, United Nations
Environment Programme, Food and Agriculture Organization,
Asian Development Bank, Food and Fertilizer Technology
Center for the Asian and Pacific Region, Organisation
for Economic Co-operation and Development, Colombo
Plan Secretariat, UBIFRANCE, State of Hawaii, Regional
Institute of Environmental Technology (Singapore),
Asian and Pacific Development Centre, and European
Partners for the Environment. I look forward to cementing
further the relationships forged over the years and
welcome continuity in existing partnerships and new
collaborative programs in the future.
Ladies and gentlemen, five years ago when I assumed
the post of Secretary-General, I emphasized that the
challenge of the APO was to advance our productivity
movement based upon the spirit of mutual cooperation
and friendship. By now this is taken for granted by
all member countries and NPOs. However, I am convinced
that we should repeatedly remind ourselves that this
is the basic spirit of the APO in coming years. It
is in this spirit that NPOs have built up their capacities
and capabilities and contributed to economic development
through productivity promotion in the region. Our
united support for productivity improvement has been
clearly demonstrated by a number of achievements in
which the APO can take special pride. Just to mention
recent events, a National Productivity Roundtable
Conference was held in Indonesia last September with
the participation of President Megawati Soekarnoputri
and other national leaders. A Roundtable Conference
was also organized in Lao PDR last month, which was
graced by Prime Minister Vorachith. With cooperation
from fellow member countries that readily offered
to share their rich experiences, those conferences
marked important milestones in the productivity movement
in both countries.
Ladies and gentlemen, the wave of globalization appears
to be widening the gap between developed and developing
countries rather than narrowing it. To alleviate the
development gap among member countries, the crucial
challenges that lie ahead are, in my view, to grasp
the diversifying needs of member countries, design
country-specific strategies, and designate priority
projects. These issues can only be dealt with effectively
through the concerted efforts of member countries.
Furthermore, while negotiations at the World Trade
Organization have reached a stalemate, many countries
in the Asian region are working toward better cooperation
through free trade agreements (FTA) or economic partnership
agreements (EPA.) The APO has primarily been concerned
with micro-level issues and activities, but I believe
that we also need to adjust our program of action
by taking into account emerging economic scenarios
at the macro level.
Lao PDR joined the APO the year before. Last year
Cambodia unofficially expressed its desire to join
our family. These are clear manifestations of the
high expectations and appreciation of the APO by countries
in this region, which we certainly welcome. At the
same time, this also shows how much responsibility
the APO must shoulder. Let us strengthen linkages
and cooperation between the Secretariat and NPOs and
move forward based on our united strength to provide
a better quality of life for all people through productivity.
This Workshop Meeting is held to respond to the various
challenges we encounter, and I wish you all very fruitful
discussions.
I would like once again to thank the Government of
Sri Lanka for hosting this meeting and the National
Productivity Secretariat for making excellent arrangements
for all of us.
Thank you for your attention.
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