Local Economic Development

Coming together is the beginning. Keeping together is progress. Working together is success.

Henry Ford

Local Economic Development

For creation, development and increasing of competitiveness of community-based SMEs, in 2012 SME DNC of Armenia has introduced new strategic direction named “Local Economic Development” and the department of Local Economic Development Programs (thereafter Department) has been created in the structure of SME DNC.

The purpose of the Department is to identify the economic potential of communities of Armenia, and to undertake economic development initiatives on that basis to enhance local competitiveness.

Within the frameworks of local economic development programs implementation SME DNC had launched the localization and implementation of the international best practices. As a result, German PACA (Participatory Appraisal of Competitive Advantages) method and the Japanese OVOP (One Village, One Product) concept have been invested.

OVOP concept implies to create local specialties based high value added products, which will be competitive in internal and external markets. OVOP concept focuses on local advantages use and human resource development.

For the evaluation of resources and competitive advantages of communities and revealing of products according to OVOP concept, PACA tool is being implemented by SME DNC, which allows to reveal high value added products and build its value chains by participatory diagnosing and analyzing the economy of the community, its resources and competitive advantages.

 From May 2012, SME DNC branch offices’ experts, trained by the Department, have started the economic mapping of the communities of Armenia for ensuring necessary database for implementing actions mentioned above.

As a result of the economic mapping the current economic situation of the communities will be outlined, where the priority branches of communities, available resources, SMEs operating in the communities, value chains, cooperations within and between communities and other economic criteria will be reflected. These maps will allow us to analyze economic potential of the communities, find out the opportunities and ways of their economic development.