? of Isalm and their banking cartel

[RodISHI]

I came across a report online doing a search for OIC. Found something I was not aware existed and it has me curious. Is anyone else aware of this?

This whole report thing has me questioning in my mind, "would I prefer working for Christian or Jewish people or Islam peoples?"

Islamic
Development Bank (IDB) Assumption University of Thailand (AU) Thai Islamic Trade & Industrial Association (TITIA)




Report of the 6th and Final Meeting of
the OIC Task Force on SMEs

Jointly organized by
Islamic Chamber of Commerce & Industry (ICCI)
Islamic Development Bank (IDB)
Thai Islamic Trade and Industrial Association (TITIA) and
Assumption University of Thailand (AU)




Bangkok, Kingdom of Thailand
August 15-17, 2008


Report of the 6th Meeting of the OIC Task Force on SMEs
Bangkok, Kingdom of Thailand, August 15-17, 2008


The Islamic Commission for Economic, Cultural and Social Affairs at its 23rd Session held in January 2000 in Jeddah, Kingdom of Saudi Arabia, endorsed the proposal of Islamic Chamber of Commerce and Industry (ICCI) for the establishment of a Task Force on Small and Medium Enterprises (SMEs). The proposal was approved by the Islamic Conference of Foreign Ministers (ICFM) at its 27th Session held in Kuala-Lumpur, Malaysia in July 2000 and subsequently, by the Islamic Summit Conference at its 9th Session held in Doha, State of Qatar in November 2000. Accordingly, the Task Force was established in 2001 by the Secretary General of the Organization of the Islamic Conference (OIC) and ICCI was given the mandate to organize OIC Task Force Meetings on SMEs in a selected OIC Country on an annual basis.

Members of the Task Force:

The Task Force is comprised of representatives of the General Secretariat of the OIC, the Islamic Development Bank (IDB), the Islamic Centre for the Development of Trade (ICDT), The Statistical Economic and Social Research and Training Centre for Islamic Countries (SESRTCIC), the Islamic University of Technology (IUT), the Islamic Chamber of Commerce and Industry (ICCI), United Nations Industrial Development Organization (UNIDO), some selected National Chambers of Commerce and Industry, SME owners, SME Authorities and Institutions of OIC Member States.


Objectives of the OIC Task Force on SMEs:

The main purpose of OIC Task Force on SMEs was to open dialogue among the members of the Task Force on the challenges and opportunities for SME Development in OIC Countries and to propose concrete and feasible initiatives for achieving higher SME growth by facilitating their capturing of local strengths and addressing of global challenges.

SMEs are considered to be one of the principal driving forces in economic development. SMEs stimulate private ownership and entrepreneurial skills. They are flexible and can adapt quickly to changing market demand and supply situations. They help generate employment, help diversify economic activity and make a significant contribution to exports and trade. SMEs also play an important role in innovation and the high-tech business, due to their flexibility and creativity and many of them become large businesses. Hence, emphasis was laid on the creation of a business friendly environment in which the transformation of the OIC economies toward market economies could take place.

The overall goal of the OIC Task Force on SMEs was to provide the atmosphere to establish a friendly environment for enterprise creation, economic growth and improve production efficiency in OIC economies through sustainable and dynamic SME development. The main objective was to promote the conditions necessary for the growth and development of SME sector, including the following core issues:
A favourable policy and regulatory environment
Strong, sustainable Institutions providing financial assistance
Improved market access
Training
Technology
Skills and links with support Institutions.


Meetings of the OIC Task Force on SMEs:

Accordingly, ICCI with the cooperation and kind support of IDB, Member Chambers and SMEs Authorities, have organized six Meetings; first in Bangladesh in 2002, second in Mozambique in 2003, third in Pakistan in 2004, fourth in Thailand in 2005 and fifth in Turkey in 2006 and last in Thailand in 2008. In these meetings, the Task Force has examined problems / constraints, faced by SMEs of OIC Countries and has identified practical means of improving the performance of SMEs through the recommendations of these meetings.

Task Force has observed that Governments in some OIC Countries have introduced various support programmes to facilitate the growth and expansion of SMEs in different sub-sectors of their economies to exploit the full development potential of SMEs. The policies and incentives for enterprise development have been highly biased towards large-scale enterprises and hence discriminatory against SMEs. It is a sector which needs to be carefully nurtured by providing institutional support, access to finance, business development services, and less regulatory oriented business environment.

Through its discussions and deliberations in these six meetings, the Task Force identified several constraints, affecting SMEs including limited access to and cost of capital, low level of technology, limited access to markets and market information, absence of business development services, weak infrastructure for technology business incubation and cluster development center, regulatory and administrative constraints as well as inadequate institutional support.

Support services:

Small and Medium Enterprises (SMEs) have been recognized as an important strategic sector for generating high income growth and reducing unemployment. They are commonly recognized as one of the leading economic sector bringing economic by social development amongst large population segment. It is a sector which needs to be carefully nurtured by providing institutional support, access to finance, business development services and less regulation oriented business environment. Almost all the countries in the world place special emphasis on SMEs, due to their integrated, flexible and rapid production capabilities.

The main strategic elements identified by the Task Force are: public policy, institutional framework, financing, technology, information and market access, business development services, entrepreneurial skills, regulatory framework, linkages and networking.

The members of the Task Force have laid special emphasis on the need to strengthen the capabilities of SMEs in the fields of trade and commerce at the national and international levels and also in determining investment opportunities and the prospects of engaging in export/import trading.

In all these activities, SMEs to respond quickly and efficiently to international market signals and be competitive and productive. Towards these goals, effective business support systems are needed to enhance the competitiveness and productivity of SMEs.

To improve the competitiveness of SMEs, the Members of the Task Force have recommended to focus on policy options and to provide support services to SMEs in the following key areas:
To formulate a uniform definition of SMEs in OIC member states;
Technology and business Incubators and their Networking;
To develop data and statistical information as a basis for establishing measures to address the issues of SME financing;
Launching training for SMEs;
Venture Capital and Credit Guarantee Funds: A SME Sector Development Fund (SMESDF) and a Guarantee Fund along the lines of the Turkish Credit Guarantee Fund need to be created aimed at assisting SMEs in identified thrust sectors of the respective OIC countries;
Establishment of an Islamic Center for SME Support and Development, with assistance from IDB which would network all SME support agencies in the OIC member countries, bringing synergy through regular exchanges of national data and experiences, and explore solutions to common problems;
Network of all technological and business incubators to share best practices;
OIC SMEs Training Institute be set up and located in a country willing to donate land and building;
A directory of SMEs may be prepared by each OIC country;
Financial institutions should provide customized forms of finance for SMEs (special credit facilities, micro-credit schemes, seed capital, guarantee schemes, leasing, venture capital, concept of business angles) and other suitable forms;
IDB may further increase its technical and financial support to SMEs through its various financing facilities and windows, which may significantly contribute to the creation and development of SMEs;
Research and Development Facilities should be given priority. Research, Training and Development Center could be developed. Transfer of technology and know-how from advanced market economies could be important part of developing R & D capacity in OIC Countries;
Establishing and strengthening linkages between universities, research organizations and industries;
In order to develop sub-contracting among large and small enterprises in OIC countries, Sub-contracting Exchange Schemes can be launched. Professional Associations and National Chambers can set-up such an establishment. They may collect for example, information about engineering industries components, and what vendor industries can provide such components. In this way, inter-firm linkages could be expanded among the OIC Member Countries.
Establishment of a separate Micro Finance Bank;
Structure of Regulatory, Financial, Technical, Management & Marketing Support.

6th and Final Meeting of the OIC Task Force on SMEs:

The 6th and Final Meeting of the OIC Task Force on SMEs was convened at the Assumption University of Thailand, Bangkok on August 15-17, 2008. The Meeting was organized by the Islamic Chamber of Commerce & Industry (ICCI) in collaboration with the Islamic Development Bank (IDB), Thai Islamic Trade and Industrial Association (TITIA) and Assumption University of Thailand (AU).
The meeting was attended by about 100 participants including experts from national SME authorities, national chambers of commerce & industries and other public and private sector institutions of the 13 OIC member countries: Bahrain, Bangladesh, Egypt, Islamic Republic of Iran, State of Kuwait, Lebanon, Malaysia, Pakistan, Kingdom of Saudi Arabia, Sudan, Syria, Turkey, U.A.E.; in addition to participants from the host country, Kingdom of Thailand, which is also an observer state of the OIC; and one non-member country of the OIC, namely, Philippines.
In addition to the Islamic Development Bank Group (IDB) and Islamic Chamber of Commerce & Industry (ICCI), three subsidiary organs of the OIC: the Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC), the Islamic University of Technology (IUT), and the Islamic Centre for Development of Trade (ICDT) were also represented at the meeting, together with Islamic Chamber Research & Information Center (ICRIC).
The Special Unit for South-South Cooperation of the United Nations Development Programme (SUSSC/UNDP), New York was also represented, together with the South-South Global Assets and Technology Exchanges System (SS-GATES) Project. Two specialized agencies of the United Nations: United Nations Industrial Development Organization (UNIDO) and World Intellectual Organization (WIPO) were also represented at the meeting. The list of participants of the meeting is contained in the Annex.
The meeting was inaugurated on the morning of Friday, 15th August 2008 with recitation of verses from the Holy Quran. The welcome address was delivered by Mr. Anirut Smuthkochorn, President, Thai Islamic Trade & Industrial Association (TITIA). This was followed by the message of the ICCI President, H.E. Shaıkh Saleh Bin Abdullah Kamel, delivered on his behalf by Mrs. Attiya Nawazish Ali, Assistant Secretary General, Coordination, ICCI. A second welcome address was then delivered by Rev.Brother Dr. Bancha Saenghiran, President of Assumption University of Thailand (AU). The opening speech was delivered by H.E. Somsak Kiatsuranondha, Minister of Culture, Kingdom of Thailand.
A total of 36 thematic and country papers were presented at the meeting. Following the inaugural session on the morning of the 15th August 2008, the meeting held the following four working sessions and four exchange-of-views sessions on:
(i) The Role of SME Institutions
(ii) The Role of International Agencies & OIC Institutions
(iii) The Role of SME Financing Institutions and
(iv) The Role of Incubation Centers and the importance of linkages with Educational Institutions.
The meeting concluded with a closing session in the evening of the 17th August 2008 at which it adopted its report and a consolidation of the main recommendations of its present and past five sessions.
A summary of the meeting’s discussions, followed by its recommendations and proposals, is given below:
Summary of Discussions:

The meeting reaffirmed the substance of its discussions of the previous five sessions. It recognized the essential role of SMEs in enhancing speedy growth and sustainable social and economic development of OIC member countries; also the need for closer cooperation among all stakeholders – enterprises, chambers, financial institutions, and Governmental authorities in renewing and implementing policies and practices in support and promotion of SMEs.

In advancing the effectiveness, productivity and a noticeable impact of the SME sector, the Task Force felt the need for identifying and utilizing new approaches in this direction e.g. the establishment of an OIC Network of SME Agencies (ONSA), a SME Fund, an Islamic SME Credit Guarantee Fund, a Business Angels Network, a Technology and Business Incubation Centre and the creation of a conducive regulatory environment for SME development in member states.

In this vein, the meeting recalled its earlier identification of some salient issues confronting the development and growth of SMEs, namely financial constraints, outdated technologies, lack of skills, absence of information, weaknesses in management and marketing methods, and inadequacy of support services, all of which needed attention and improvement.

The Task Force also heard some successful practices in enabling the environment by improving the governmental policies and legislations in order to support and promote the SMEs and modernizing the production and marketing capacities and processes that could be shared with others through the establishment and strengthening of proper consultation and coordination mechanisms at national and international levels.
FINAL RECOMMENDATIONS:

The Task Force observed that Governments, national SME authorities, ICCI, IDB and the General Secretariat of the OIC could play significantly greater roles in assisting SMEs in the OIC member countries improving their competitiveness in the global economy and in enhancing their competitiveness in the Global Value Chains. Also, it was noted that various pockets of opportunities all over OIC countries are not/ under utilized.

DEFINITION:

In view of the varied levels of socio-economic activity in the OIC member countries at this time, Small and Medium Enterprises should presently be defined as follows: “Industrial and/or commercial enterprises in the private sector of a country’s economy, engaged in income-generating activities, whose sizes and scales of operation, relative or competitive advantages of region/ country, as well as financial parameters, are considered by the appropriate regulatory bodies to be modest in comparison to large scale operations in accordance with the trends prevailing in the country at a given time.”

The Task Force recommended the following concerted actions to be taken by:

I. GOVERNMENTS:

In recognition of the critical role of SMEs in the development of national economies, and in the socio-economic progress of the OIC member countries, and their people, there should be a clear national commitment for the creation of the necessary enabling environment that would promote and support SMEs. This could take the form of a proclamation, a declaration or an authoritative policy statement, supported by appropriate national legislation, signaling the seriousness the Government accords to the development and protection of SMEs.

The vision of national SME policy should be “people-oriented” and aim at the empowerment and betterment of all those engaged in the running of the enterprises as entrepreneurs, business owners or employees.

For a meaningful coordination of national SME policies and to avoid unnecessary duplication of efforts, governments should establish appropriate institutional mechanisms e.g., a national council, or equivalent body, comprising representatives of relevant ministries, para-statal bodies, chambers of commerce and industry, employers’ associations, NGOs, trade unions, media, the banking community, universities and other institutions of higher learning and research, the legal profession, and other concerned governmental and non-governmental institutions.

The national councils should advise on SME policies, monitor the implementation of the policies, identify any issues or problems, and propose remedial measures.

Encouraging including subjects of entrepreneurship and starting business in the curriculum of schools and universities.

For activating national SME policies, the Governments should establish autonomous organizational entities e.g., a Small and Medium Enterprises Development Authority, (or Corporation), with competence and resources to guide entrepreneurs on regulatory matters, management issues, transfers of technology, product development, marketing, financing, technical and managerial training, social security, and other related areas of SME development.

These organizational entities should also service the National Councils on SMEs, thereby providing a two-way communication link between the Government authorities on the one hand, and the entrepreneurs, and all other stakeholders on the other.

The Governments should undertake effective measures to ensure the maximum advantages accruing to SMEs from national export promotion schemes, and Government-to-Government bilateral and multilateral trade agreements, through timely dissemination of information, training and consultancies, where needed.

In view of the reported advantages of clustering SMEs, the Governments should adopt a programme of encouraging SMEs to form clusters and operate from the same locations. Such an approach would also enable Governments to review the impact of this approach upon the manufacture and marketing of different products.

The concept of “One-Village One-Product” should be introduced to develop specialization and distinct identities of enterprises in particular villages as evidenced from Pakistan’s adoption of AHAN programme. This would help in exploiting the traditional skills of entrepreneurs and in giving a boost to ethnic products, besides improving the local economies.


II. NATIONAL SME AUTHORITIES:

The national SME authorities, in consultation with the national councils on SMEs, should play the central role in the formulation of national legislation, and the corresponding rules and regulations governing the establishment, operation, facilitation, and expansion of SMEs.

They should have appropriate linkages with other regulatory authorities at the federal, provincial and local levels to serve as “One-window” operations for the issuance of permits and certifications to SMEs

In support and promotion of SMEs, the principal responsibilities of the national SME authorities should include (though not be confined to):

a) Convening meetings of the national coordination and consultation bodies (e.g., National Councils on SMEs), and serving as the effective channels of contact and communication between the Government, on the one hand, and the enterprises and other elements represented on these bodies, on the other

b) Guiding investors and entrepreneurs on regulatory matters, management issues, product development, marketing, financing, technical and vocational training, social services, and other areas of their concern

c) Organizing management training, and workers training programmes in partnership with ICCI, IDB, national chambers of commerce and industry, employers’ associations, trade unions, universities and other interested bodies.

d) Encouraging and facilitating the development of business and technology incubators (especially in industrial estates and industrial clusters, techno-parks), by large-scale industries, national chambers, universities and other institutions of training and research, including R&D institutions, industrial associations, export promotion authorities, trade development agencies, and other relevant bodies.

e) Organizing in cooperation with ICCI and IDB, SME trade fairs, and SME participation in international trade fairs, in collaboration with national chambers of commerce and industry, and trade associations.

f) Organizing in cooperation with ICCI and IDB, workshops, seminars, conferences, and exhibitions to help create awareness among SMEs within the location of their hubs and clusters, i.e., at their doorstep

g) Developing public-private partnerships in cooperation with the ministries of finance, and of industries and trade, city governments, and financial institutions to ease SMEs access to affordable financing, including customized forms of funding.

h) Assisting in the creation of matching programmes between investors (individuals or companies seeking opportunities for equity investment) and SMEs requiring equity finance to initiate or expand production of goods and services.

i) Engaging in information and public relations activity through the issuance of booklets, pamphlets and audio-visual material, including the Internet, focusing on social needs of the families of entrepreneurs and their employees, especially housing, children’s education, health-care and transport.

III. NATIONAL CHAMBERS OF COMMERCE AND INDUSTRY:

The national chambers should review their internal mechanisms for keeping abreast of developments in the SMEs and, where deemed necessary, adopt measures to keep them updated and streamlined.

Databases (including directories, where feasible) should be developed by the chambers on the categories, critical mass and products of SMEs, and on their share in the country’s home trade and exports; also on the support services available to them

In collaboration with national SME authorities, they should promote joint ventures, clusters, supply chains, sub-contracting and other innovative forms of both formal and informal networking among SMEs

In the establishment and functioning of the proposed national councils for SMEs, the national chambers should play a catalytic role ensuring the effectiveness of the councils in addressing the legitimate needs of SMEs.

IV. ISLAMIC CHAMBER OF COMMERCE AND INDUSTRY (ICCI):

A committee should be established within the ICCI, to coordinate SME policies of member chambers, promote the role of SMEs in inter- country trade and development, and follow-up the implementation of the recommendations of this Task Force, as well as, subsequent resolutions and decisions of the OIC, and ICCI, in support and promotion of SMEs

The proposed committee should, in turn, set-up a Brand Recognition Cell to promote initially a cluster of core businesses e.g., Islamic Banks, food processing, furniture industries, chemical manufacturing and mining related SMEs;

It should also set-up sub-committees on SME sub-sectors, e.g., Food/Agro Processing, Textiles, Leather, Light Engineering, software development, tourism, trading etc, as well as functional areas i.e. SME Regulatory Environment, Access to Finance, Marketing, Technology Upgradation, Incubators, HR Development etc. comprising of leading experts with a view to providing assistance to Member Countries.

Through the proposed subsidiary body, and in cooperation with national SME authorities, and national chambers, ICCI should sponsor a programme of networking among business and technology incubators in OIC member countries.




V. ISLAMIC DEVELOPMENT BANK (IDB):

The IDB should review its terms and conditions for support to SMEs through National Development Financing Institutions (NDFIs) with the view to determining the causes of the reported under-utilization of this facility, and devise measures to make the financing more readily accessible to SMEs.

The Bank should consider the possibility of encouraging the creation of venture capital and credit guarantee funds (along the lines of utilizing available firms like the Turkish Credit Guarantee Fund and the Venture Capital Bank of Bahrain) in OIC member countries where the investment climate may be found favorable; also the establishment of an SME Fund for providing equity financing to SMEs along the lines of the Small Enterprise Assistance Fund (SEAF) of Washington D.C. as well as the establishment of Islamic Guarantee Fund to provide loan guarantees schemes targeted at SMEs.

The IDB, in cooperation with ICCI, UNDP, UNCTAD and the World Bank, should develop data and statistical information as a basis for establishing measures to address the issues of SME financing; and undertake a preliminary study on the possible development of a competitive analysis framework and relevant indicators to support progress in building a sound SME sector in OIC countries. The exercise should also help to identify best policies and practices in SME financing, applicable to OIC member countries.

The IDB should assist in the establishment of an Islamic Center for the Support and Development of SMEs which would network all national SME authorities in the OIC member countries, becoming the link between them, as well as a synergy through regular exchanges of national data, experiences and best practices, including in the use of ICT tools for e-business. In this effort, the national SME authorities could collaborate in sharing ideas, and developing common policies and practices through a web portal that would establish the network virtually.

The Centre, with its own Governing Board, and recurrent financing by the participating national authorities, should, over time, become a self-reliant OIC institution dedicated to the development of, and fruitful interactions among, SMEs in the OIC member countries.

Pending the establishment of the proposed Center the IDB, in cooperation with the General Secretariat of the OIC, and ICCI, should undertake a feasibility study of utilizing the e-market place for SMEs, and identify impediments, if any, and the remedial measures to overcome them. In doing so, it should explore the possibility of partnership with the South-South Global Assets & Technology Exchanges System (SS-GATES), the market-oriented mechanism for South-South flow of trade, investment, technology transfer, as well as technical and humanitarian assistance, being developed by the Special Unit for South-South Cooperation of UNDP.

The Islamic Research and Training Institute of IDB, in cooperation with ICCI, the SME authorities and national chambers of OIC member countries, should organize training programmes on OIC policies and practices, including a symposium on industrial clustering for SMEs using best practices experiences.


VI. ORGANIZATION OF THE ISLAMIC CONFERENCE (OIC):

The OIC may be called upon to consider including in the outcome document of its next Summit Conference, its recognition of the significance of SMEs in the economic and social development of the member states, and its approval of the actions recommended by the OIC Task Force on SMEs, once endorsed by the Council of Foreign Ministers (CFM).

The Council of Foreign Ministers (CFM) may consider assigning to the General Secretariat of the Islamic Chamber of Commerce & Industry (ICCI) and OIC Standing Committee on Commercial and Economic Cooperation (COMCEC) the responsibility of formulating development strategies for selected SME sectors across OIC member countries through periodic meetings of national SME authorities

The CFM may consider mandating the relevant organs and institutions of the OIC to give particular emphasis to SME support activities in their research and technical cooperation programmes.

The CFM may consider inviting annual reports on the progress of SMEs in the member states, and recommendations for policy decisions for further actions in this regard by governments, relevant OIC organs and institutions, national chambers of commerce and industry, and other actors concerned with the growth and strengthening of SMEs.

The CFM may consider inviting governments, relevant OIC organs and institutions, national SME authorities, national chambers of commerce and industry, and public and private financial institutions, to pay particular attention to the role of women and youth in social and economic development and extend all possible encouragement and support to women and youth entrepreneurs, identifying the constraints and impediments in their way, and introducing measures to remedy them.


PROPOSALS:

The Task Force proposed for the consideration of COMCEC, ICECSA, and CFM the following specific initiatives which it conceptualized and developed in its in-depth deliberations of priority issues confronting SMEs and their future development.


With this background, the Task Force recommended that the following proposals be adopted at the OIC level:


1) Establishment of an OIC Network of SME Agencies (ONSA):

Welcoming the creation and hosting of ONSA by ICRIC, an affiliated organ of the Islamic Chamber of Commerce and Industry, the Task Force proposed that CFM consider extending its support to this initiatives, which would be conducive to the strengthening of SMEs in OIC countries, with the following main functions:
i. Coordinating exchanges of SME Development Experts between member countries including National Chambers of Commerce and Industry.
ii. Providing a platform for exchange of successful models of SME development policies, experiences and information with consideration of every country’s own needs and situation.
iii. Setting-up Committees on SME sub-sectors, e.g., Food/Agro Processing, Textiles, Leather, Light Engineering, software development, tourism, trading etc, as well as functional areas i.e. SME Regulatory Environment, Access to Finance, Marketing, Technology Upgradation, Incubators, HR Development etc. comprising of leading experts with a view to providing assistance to Member Countries.
iv. Devising mechanisms and channelling support for technology up-gradation of SMEs in Member Countries.
v. Devising and implementing initiatives for providing marketing information and promoting trade and joint ventures between SMEs in OIC countries.
vi. Utilizing ICT tools for data accumulation, information dissemination and knowledge build-up to be made available to ONSA member association and SMEs.
vii. Developing an effective e-marketplace for SMEs in member countries.
viii. Developing a Network of Private sector-led SME associations.
ix. Developing an SME definition to be adopted by OIC Countries, taking into account their respective national situations.
x. Organizing SME Trade Fairs and matchmaking between SMEs.
xi. Providing necessary data of investment opportunities for SMEs in member countries to encourage intra-trade between them.


2) Establishment of a SME Fund under IDB:

In view of the financial difficulties being faced by SMEs due to a lack of relevant financial institutions in man OIC Countries, the OIC Task Force proposed that the IDB may consider the establishment of a SME Fund as a Subsidiary of IDB Group for providing financing to SMEs in member countries. Such a Fund may benefit from the experience of the Small Enterprise Assistance Fund (SEAF) established in Washington D.C. or other similar local, regional and multi-lateral fund and of the SME Development of the World Bank.


3) Establishment of an Islamic SME Credit Guarantee Fund (IGF):

The Task Force proposed to establish an Islamic Guarantee Fund as a Subsidiary of IDB Group to provide loan guarantee schemes targeted at SMEs. These could include an SME loan guarantee scheme. The IGF may also extend a guarantee scheme to cover equity investments in SMEs. The IDB Group might work with the financial services industry to provide low security loans to startup firms and entrepreneurs in all sectors. The cost to the IDB Group of such a scheme would be minimal, as the revolving pool of credit would be provided from private sources.


4) Establishment of Database on Business Angels and creating linkages with SME Investment Opportunities:

By establishing the database, the SME Development Authorities in OIC Countries could help address the gap in the market for early stage finance and encourage investment by individuals and syndicates in seed and early stage businesses by stimulating the development of further Business Angel networks, and in particular syndicated business angel networks. The Business Incubation and Innovation Centre may act as a matchmaker between companies and the individual investors on the Business Angel register (database). This could be termed as Technology Innovation Fund (TIF) to be managed by a professional private sector entity.


5) Establishment of Technology & Business Incubators:

The Task Force recommended that consideration may be given to the establishment and maximizing utilization of existing business incubators in selected OIC member countries. The networking of these incubators would evolve an International Innovation System Regime for the OIC member countries producing innovative SMEs. These incubators can be established with two specific and distinct focuses as follows:

i. Technology incubators to channelize innovations among OIC countries.

ii. Business incubators to promote trade between member countries by providing incubatee SMEs with information and support for imports and exports among the member countries.

It is proposed that the respective Governments of the selected member countries where the incubators are to be established may cover the local costs. The required expertise may be obtained from within the member countries. The Technological Park and Incubation Centres in OIC Countries should be linked with ONSA.

6) Creation of a Conducive Regulatory Environment for SME Development:

Weak regulatory frameworks in some OIC countries are characterized by the complexity of laws and regulations for SME development, which put them at a disadvantage viz-a-viz larger national companies and foreign enterprises. With the growing importance of SME’s contribution to the OIC economies, the Task Force recommended that efforts need to be intensified for creating an improved regulatory environment conducive to the development of SMEs.

STRATEGIC ACTION PLAN:

The Strategic Action Plan prepared by the Task Force is annexed to this Report spelling out specific activities under each strategic element in terms of time frame and institutions concerned with their implementation for consideration by the CFM.

Proposal-1: Establishment of a Center of OIC Network of SME Agencies (ONSA)

Objectives Action / Activities Implementing Institution Time Frame Expected Outcomes
Cooperation among International, National, Regional, National Chamber of Commerce and Industries and SMEs agencies and institutions a) Networking of SMEs institutions/agencies.
b) Strengthen structural and organizational capacities of Member Countries
c) Cooperation in the area of Research and Development; development of collective working capacity of research centers
d) Pool and exchange of Experts
e) Provide R&D services to Member Countries
f) Capacity building of Chambers of Commerce and SMEs agencies and institutions
g) Improve production techniques and decreasing the costs
h) Enhance market competitiveness.
i) Brand development
j) Facilitating in production of quality products in accordance with international standards and product diversification



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§ Short-term

Medium-term



On-going ·1 Establishment of a Network for SME Agencies (ONSA)
·1 Sharing of experiences among OIC Development Agencies for the promotion of SMEs
·2 Solving basic problems in promotion and development of SMEs at bilateral/multilateral level
·3 Enhancement of social services in respect of SMEs
Human Resource Development a) Capacity Development Programs for SMEs Development Organizations and Associations
b) Capacity development programs for SMEs
c) Corporate Social Responsibility Development Programs
d) Seminars/workshops On-going ·1 Strengthened SME Development Organizations, SME Associations
·2 Human Resource Development for SME Sector
Cooperation in the area of Information collection and dissemination a) Wide dissemination of information on Government’s SMEs policies and support programs
b) Establishing e-portal with links to the website of various local, national, regional and international institutions
c) Identification of Database sources
d) Match-making
e) Sharing the experiences and good practices through expert exchanges · SESRIC
· ONSA
· ICDT
· IDB On-going ·1 Network of Database (Proactive Database)
·2 Easy access to information, statistics and follow up of new developments
·3 Increase marketing opportunities
·4 Enhance capacity of organizations/institutions
Research & Development a) Standardization of codes
b) Documenting case studies ·1 ONSA
·2 ICDT
·3 SESRIC
·4 IDB On-going ·1 Sharing knowledge and experiences
Market Access and Organization of Trade fairs and exhibitions a) Strengthening the communication channels among countries and institutions, enhancing the knowledge sharing, formation of an experts bank and achieving the knowledge and technology transfer through expert exchange
b) Organizing trade fairs and exhibitions
c) Exchange of trade delegations
d) Developing processing and marketing capacity of Member Countries
e) Increase capacity of trade among member states
f) Improve relations among associations and chambers of commerce of member states
g) Establishment of special and effective mechanisms and facilities for financing SME sector
h) Facilitate in development of international brands ·2 ICDT
·3 ONSA
·4 IDB
On-going ·1 Virtual Exhibitions
·2 E-Marketing
·3 Physical Exhibitions
·4 Creating a Cell of businessmen under ICCI for organizing SMEs exhibitions
Evaluation Evaluation of policies and programs for the support of SMEs All the implementing institutions Annual ·5 Smooth implementation of the Strategic Plan
Funding Will be worked later on by the Implementing Institutions

Proposal-2: Establishment of SME Fund

Objectives Action / Activities Implementing Institution Time Frame Expected Outcomes
Establishing a SME Fund as a subsidiary of IDB Group Developing the financing mechanisms for providing access to capital for SMEs in the member states. IDB Short to Medium term ·1 Finding new and effective mechanisms and facilities for financing SME sector
·2 Extending lines of Financing to SME Financing Institutions

Proposal-3: Establishment of Islamic SME Credit Guarantee Fund

Objectives Action / Activities Implementing Institution Time Frame Expected Outcomes
Establishing an Islamic SME Credit Guarantee Fund as a subsidiary of IDB Group Developing the guarantee mechanisms like export credits and credit insurance to increase flow of financing to SMEs. IDB
Short to Medium term ·3 Increased SME financing by banks and other non-banking financial institutions

Proposal-4: Establishment of a Database on Business Angel and creating Linkages with SME Investment Opportunities

Objectives Action / Activities Implementing Institution Time Frame Expected Outcomes
To link Angel Investors with viable SME investment opportunities Develop a database of Angel Investors and linking them with SME investment opportunities in the Member States ·4 ONSA
·5 National SME Development Agencies Short-term ·6 Enterprise creation
·7 Increase flow of Equity Capital to start-up SMEs

Proposal-5: Establishment of Technology and Business Incubators

Objectives Action / Activities Implementing Institution Time Frame Expected Outcomes
Cooperation among Business and Technology Incubation Centers a) Analyze and sharing the good practices
b) Enhance communication and cooperation among similar organizations
c) Support SME development programs, especially the projects related to vertical and horizontal integration
d) Exchange of Experts and capacity development of Incubator Operators
e) Facilitate cheaper and easy provision of inputs
f) Supporting new programs and encouraging entrepreneurs by creating appropriate conditions for the investments
g) Sharing the successful implementations with other countries via exchange of experts
h) Arranging and facilitating the consultation meetings on Sectoral basis ICCI-KOSGEB (Network for Incubators in Islamic Countries)
On-going
§1 Establishment of a Network of Incubation Center in Islamic Countries
§2 Cluster Development
§3 Increased expertise and the technical capacity
§4 Setting up of Technology Parks; Business and Technology Incubation Centers; Industrial Parks
§5 Improve relations among Business and Technology Incubators
Technology and Assets Transfer a) Facilitate technology transfer and encourage SMEs in adoption of latest technology.
b) Support the usage, production, and quality input, through technological machines and devices.
c) Support joint investment projects that have immediate, short-term and practical consequences
d) Prepare a guide relating to projects for support.
e) Prepare a list of experts that will be assigned to this program and their field of expertise.
f) Determine needs and problems of production, processing, and marketing chain and develop improvement programs. ONSA

Support and cooperation would also be sought from:
International institutions:
UNIDO/UNCTAD; WIPO; SS-GATE; and other related institutions

National institutions:
Chambers; Technoparks; Business and Technology Incubation Centers; SMEs Institution; and other related institutions ·5 Training of Trainers
·6 Development, usage, promotion and successful transfer of new technologies
·7 Develop the capacity of organizations/institutions and create opportunities of cooperation through knowledge sharing and exchanges of experts
·8 Increasing the expertise and the technical capacity
·9 Implementation of successful projects with other countries via exchange of experts
Funding Will be worked later on by the Implementing Institutions

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[RodISHI]

Evidently this Iranian in the US writing at Huffpost was insulted that a wire transfer from Iran took a little while.

Islamic Development Bank (IDB) -- Another Saudi Stooge | HuffPost