AMMAN -- The IT sector was highlighted on Sunday as an example of organising the private sector into clusters.
"Clusters are the correct framework for development," said Khaled Kurdi at the third monthly meeting of the Jordan Vision 2020 series entitled "Establishing the Urgency of Reorganising the Private Sector into Clusters.
"They [clusters] are theoretically sound and tested globally," remarked Kurdi, local consultant to Jordan Vision (JV) 2020.
The role of strategy development on the sectoral level helps sectors understand requirements to realise their future potential, he added.
According to Kurdi, a cluster is : "A geographically proximate group of interconnected companies and associated institutions in a particular field, linked by commonalities and complementaries."
The value of connecting in similar businesses includes improving productivity and access to specialised suppliers, skills and information, he indicated.
Jordan's IT sector was used to demonstarte a relatively young but successful sector that has capitalised on the cluster approach. REACH, a plan initiated in 1999 for the sector, set targets and responsibilities dealing with the regulatory conditions, an enabling environment, the advancement of IT, capital markets and human resources for the sector.
The achievements have been many including 15 new laws dealing with labour, telecommunications, private shareholding and IP, education sector reform and private-public partnerships, noted Marwan Jumaa, CEO of Batelco Jordan.
"Each sector has to create a strategy and revise it each year," he said. "Following that, the strategy has to be made into an action plan with assigned roles, responsibilities and deadlines."
Young Entrepreneurs Association (YEA) Representative Laith Al Qasem facilitated discussions with various businesses of the private sector.
One sector, Dead Sea products, is currently making JD5-JD6 million a year. Their target is to grow 50 per cent each year to reach a total of JD35 million annually.
The sector's representative noted that the concept of collective work needs to be enhanced and hopefully have a strategy for the upcoming year.
JV 2020, supported by business organisations and private sector representatives, aims to ensure the private sector is proactive in shaping a response to the challenges of the 21st century rather than being overwhelmed by them.
As a concrete goal, the strategy looks to double Jordan's gross domestic product by 2020.
The aim is to create strategic plans that follow international best practice using techniques like cluster mapping. Results of sector strategies will be presented to the government and the public by the end of 2004.
"JV 2020 is helping private sector realise their current state and future potential," concluded Kurdi.
By Sarah Ryan
© Jordan Times 2004
