studies regarding various agricultural clusters in developing and transition economies, some of which are discussed in this paper
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. This paper attempts to overcome the knowledge gap on ACs by drawing lessons from any
type of clusters in developing countries in general and by reviewing the information available on ACs in developing countries in particular. However, caution is required when drawing
lessons from other sectorscountries: Sectoral specificities as well as differences because of diverse levels of economic development should be taken into account.
3.3 THE INCREASING IMPORTANCE OF CLUSTERS IN DEVELOPING COUNTRIES
The existing literature shows that clusters in developing countries including those in the agricultural sector are usually more dominated by smaller-scale firms, are organized
in a more informal manner, have weaker linkages among actors, face more difficulties in achieving a critical mass of firms and tend to be specialized in lower-value niches, although
they are now increasingly entering higher-value markets. These characteristics of clusters in developing countries are further explained in Table 1, with an emphasis on their internal
structure and market focus.
Understandably, given all the above, it is far more difficult to promote clusters in developing countries than in developed ones. Another way to read this is that support to clusters in
developing economies is certainly more needed. This is why various institutions have become involved in supporting developing country clusters, including ACs. The United States Agency
for International Development’s USAID portfolio of cluster initiatives as of January 2003 was in the region of US60 million in 26 countries and has strongly increased since then; and
IDB’s portfolio exceeds US380 million. Several other institutions have developed programmes to support competitiveness in developing and transition economies through clustering.
The Andean Development Corporation ADC implements the “Support competitiveness programme”, which includes nine cluster projects in Andean countries. The United Nations
Industrial Development Organization UNIDO launched in 2001 a programme called “Development of Clusters and Networks of SMEs Program” to foster inter-enterprise linkages
and collaborative relations with local support institutions. To date, UNIDO has worked with SME industrial clusters in India, Indonesia, Malaysia, Mexico, Nicaragua, Honduras, Jamaica,
Bolivia, Madagascar, Morocco and Tunisia. The International Trade Centre UNCTADWTO ITC is currently developing and implementing export-led poverty reduction projects EPRP
focused on sectorsclusters showing high potential to contribute to poverty reduction through exports, such as agricultural products fresh and processed; community-based tourism; and
textiles fibres and clothing. The EPRP approach has been implemented in Bolivia, Brazil, Cambodia, El Salvador, Ethiopia, Kenya, Mongolia, South Africa and Viet Nam.
The approaches of these international institutions to cluster development have some common and distinct features, which are presented in Table 2.
15 http:www.isc.hbs.eduecon-student_projects.htm
3.4 AN INTRODUCTION TO AGRO-BASED CLUSTERS FROM DEVELOPING COUNTRIES
