Backward Linkage Promotion Program BLPP

1
Backward Linkage Promotion Program (BLPP)

• Objective
• Functions
• Design and Financing
• Institutional Set-up

2
Objective

• To help actual and potential supplier companies
  raise themselves to world class standards

3
Objective (contd)

• What BLPP is not
• Not a SME Program
• Itself, does not effect the linkages

4
Backward Linkage Promotion Program

• It is a double lens, focusing on
• Market Development
• Assistance to Selected Companies

5
Current Situation - DISPERSED
Supply Industry Development Resources
Potential Buyers
Potential Suppliers
Potential Suppliers
6
Desired Situation
Backward Linkage Promotion Program
Supply Industry Development Resources
Potential Buyers
BLPP
BLPP
Focused
Focused
Potential Suppliers
Potential Suppliers
7
Functions of the BLPP

• Market Development
• Market research
• Matchmaking
• Supplier assessment development programs
• Monitor results, follow up and troubleshoot
• Feed back to policy makers

8
Functions of the BLPP (contd)

• Support the strengthening of suppliers
• Promote linkage concept to FDI and large domestic
  industry
• Co-operation between agencies and with private
  sector to concentrate resources to help raise
  potential suppliers to world class standards

9
Design and Funding

• There is no one single model for the design and
  funding of a BLPP. They depend on existing
  institutions, politics, history, geography, etc.
  of the country.

10
Design and Funding (contd)

• Elements
• Enlistment/role of buyers
• Selection of suppliers
• Identification and participation of service
  providers
• Selling the BLPP
• Policy and strategic feedback to the government
• Funding government, suppliers, buyers

11
Institutional Set Up

• The BLPP
• Macro-organization
• Staffing
• Institutional Network

12
Lessons Learned

• Demand and market driven
• Private sector involvement
• Winner strategy-selective
• Networking - farm out activities
• Self-improvement
• Political support at the highest level