CR-M1017 : Public-Private linkages to promote development of the Huétar Norte Region

When local governments, universities, companies and business associations in a region decide to take concerted action with the goal of enhancing the growth of MSMEs operating in it, the chances of achieving significant results will grow exponentially. Not only that, when these actions incorporate strengthening of local competitive factors, the impact will be even greater, as they help to maximize the development potential of the region itself. This is the Local Economic Development (LED) approach that the MIF will support in the Huétar Norte Region of Costa Rica; a project that will showcase an emerging center of economic development as an example of what coordinated public-private linkages and actions can accomplish. This macro approach is a result of learning from over 30 projects the MIF has supported in the last 15 years, ranging from the provision of business development services to SMEs, to the promotion of business cluster development. In Huétar Norte, a region with two strategic sectors ¿food production and tourism- and many of the assets needed to spark development, but that also faces obstacles such as low level of industrialization, lack of a clearly defined business strategies and inadequate treatment of agricultural and industrial waste, the project will focus on strengthening public-private linkages to improve those territorial assets, and include over 500 MSMEs in the value chains by innovating their processes, products and services. The use of bio-controllers and traceability in agriculture and the reduction of the carbon footprint in tourism are just some examples of the project¿s featured activities. The Development Association of the Huétar Norte will be the MIF partner to carry out this ambitious initiative. Over the next four years, the project will generate practical knowledge and tools on how to effectively build a territorial governance mechanism among public-private stakeholders, how to strengthen partnerships and production linkages among MSMEs, and how to implement innovative and economically viable alternative for reuse and treatment of agricultural waste, critical for the environmental sustainability of the region. The potential for an impact beyond Huétar Norte Region looks quite promising as well. This experience will provide tangible and measurable results on how to carry out local economic development in a country like Costa Rica, thereby enriching policy dialogue with the Costa Rican local and central government officials, and with other countries in the region. The results can influence the development of MSME policies to incorporate a local productive perspective, and take into consideration requirements outside the capital city, to create policies and programs built on a common understanding of needs, limitations, assets and opportunities.