Promotion of Economy

There is still a lot to be done if we are to achieve the United Nation’s (UN) Millennium Development Goals. Economic growth in most developing and transition countries is not nearly high enough to cut poverty in half by 2015. Promoting small and medium-sized enterprises (SMEs) is a key place to start. They form the backbone of successful national economies and play a central role in employment: the majority of jobs are created by small and medium-sized companies. These firms often serve markets that are much too small for them to remain economical over the long-term. Productivity must be increased however if they are to enter new markets, and this is only possible if employees are better qualified and production lines and conditions modernised. Additionally difficult institutional and macro-political framework conditions limit the further development of small and medium-sized companies. This is where Inwent comes in. We strengthen those institutions that promote local businesses and the management skills of executives and junior managers. We qualify local service providers, such as corporate consultants and credit managers, giving them the skills they need to assist local companies in increasing competitiveness. We also contribute to developing a local pool of trainers and strengthening the market for non-governmental corporate consultants. Our programmes are practice-oriented and serve SMEs in our partner countries. Inwent supports their continued economic development.

Social and ecological responsibility is part and parcel of sustainable economic activity. This activity must be coupled with environmental protection and nature conservancy along with minimum standards for labour protection and corporate social responsibility (CSR). With the "Promoting environmentally and socially responsible business development and employment in Western China" programme, Inwent helps Chinese companies see the introduction of social standards as a necessary and worthwhile investment. Workshops, discussions and case studies demonstrate how productivity increases and quality improves, thus enhancing competitiveness, in companies that apply CSR guidelines to their work. The programme, focused primarily on West China, includes the advanced training of information multipliers who carry their respective know-how into other parts of China.

We are also active in structurally weak regions of China. Rural areas inhabited by a great number of people are not competitive for a number of different reasons. They are home to too few commercial enterprises and as such very limited economic potential. And despite high population density, there is a lack of qualified experts who could promote economic development in structurally weak and rural regions. Regional economic promotion is therefore charged with encouraging growth and employment in less advanced areas of a country by training local experts and providing them with the skills they need to plan and manage strategies for regional development. This addresses more than just regional imbalances in the economy and living conditions. The fact that well educated experts take part in political policy formation and decision-making processes is a desired side effect. This strengthens decentralised structures, one of the keys to future development in the region and the country as a whole. The "Promoting Regional Competitiveness in Southeast Asia" programme is one example. Experts and executives learn the most important concepts and instruments of economic growth from both public and private agencies that promote corporate development. The need for sustainable economic development is particularly stressed. Strategies are demonstrated for introducing minimum social standards at local and regional companies. During the 12-week programme, participants develop strategic methods for applying their new knowledge to their regions and adjusting it to suit specific local conditions.

Inwent also supports the regional economic integration of our partner countries. Working together with others towards an economic future has many advantages. This is why increasing numbers of countries are joining together to form economic interest groups on a regional level, following the lead of the European Union. There is strength in numbers, and this applies equally to trade. To ensure that these trade organisations function smoothly, partners need to trust each other and individual countries must delegate responsibilities. Inwent promotes the cross-national cooperation of companies, administrations and governments via capacity building. We provide employees at umbrella institutions in particular with qualifications so they can hold their own in negotiations with other unions and trade partners.

Product quality assurance is another important topic for developing and transition countries. If they wish to survive on the international market, they must be competitive and comply with internationally applicable quality standards. Inwent supports its partner countries in achieving these standards and keeping pace with global trade. We offer a programme for the Southern African Development Community (SADC) for example on quality management that teaches experts and executives from the SADC region about technological, ecological and economic standards. Participants have the opportunity of working in a German company as a trainee. This training programme provides participants with the skills they need to improve techniques and processes in their companies and as such comply with international quality standards.

Information from the Federal Ministry for Economic Cooperation and Development (BMZ) on the topic