The Importance of Research and Participa

The Importance of Research and
Participatory Approaches in
Policy-Making in Brunei Darussalam
Dr Giuseppe Rizzo
Researcher
Centre for Strategic and Policy Studies

Outline
1. Why policy research? How?
2. Why participatory approaches? How?
3. How Knowledge Intensive Business Services
can contribute to economic diversification?

Why economic diversification?

When did it become a
major policy objective?
a)

RKN2 (1962-1966)


b)

RKN3 (1975-1979)

c)

Asian financial crisis (1997)

Which industries?
MIPR,
1995

MIPR,
1997

Air transport Agriculture
Insurance

Forestry


Econ Counc,
1998

RKN8,
2001

BEDB,
2003

RKN9,
2007

Finance

Finance

Agriculture

Halal


Tourism

Tourism

Clothing

Logistics

Logistics

Construction
materials

KIBS

KIBS &
Finance

Construction
-KIBS


Fishery

Finance

F&B

BioTech

Finance

ICT

Agriculture

Clothing

ICT

Education


Tourism

F&B

Hi-Tech

Handicraft

Tourism

KIBS

Logistics

Clothing
Hi-Tech

What results?



90% of export



90% of Government revenue



50% of GDP



Majority of FDI inflow

Why is it so challenging?
Strengths
• Political stability
• Financial resources
• Geographical location

• Good infrastructure

Weaknesses
• Clarity of policy objectives
• Human resources
• Cost structure
• Corporate governance
• Small market
• Bureaucracy

1. Policy Research

LAND OPTIMIZATION STRATEGY FOR
INDUSTRIAL AND COMMERCIAL GROWTH

What is the role of access to land?

Objective
Optimize industrial and commercial land use to
drive economic diversification under the guiding

principles of balanced and sustainable
development.

Stakeholders and policy environment
Wawasan 2035

Outline of Strategies
and Policies for
Development
(2007-17)

National
Development Plan
(2007-12)

National Land Use
Master Plan
(2006-25)

Land Availability

Study, 2006

BSB Development
Master Plan

Analysis process
Priority strategic sites
Economic
future

Clusters

Employment

Land
requirements
Structure planning for
priority sites

Land

resources

Planning
frameworks

Potential
land

Land
capability

Governance and strategy
implementation

Priority clusters in the strategy
KIBS
Creative
industries

Tourism


Priority
clusters
Logistics

Education

Energy

Biodiversity,
Food and
Pharma

‘000

Economic future scenarios
1,000
800
600

Wawasan
Organic growth

865

587
414

400
200
0

266

Land budget

Land requirements
Urban
commercial
activities

Space intensive
activities

Agglomeration
benefits

Existing urban
footprint

1.1 m sqm

Location criteria

Appropriate
greenfield
locations

69.6 ha

Supply-side analysis

High potential
development areas

Phasing of the land allocations

Phase 1
(2012-35)
100 sq km

Required
69 sq km

Phase 2
(2035-50)
40 sq km

Phase 3
(2050+)
106 sq km

Phase 4
(2050+)
567 sq km

Available
813 sq km

Strategic actions
Special Purpose
Zones
Whole of
Government
approach

Investment
attraction

Mobilising private
investment

Catalyst projects

Implementing the
strategy

How to make it work?

Collaboration

Innovation

2. Participatory Approach

CLUSTER DEVELOPMENT INITIATIVE

Objectives
• To identify a shared and grounded list of
prioritised economic clusters;
• To engage the key stakeholders of each cluster in
a participatory process aiming at identifying
strategic initiatives for the development of the
cluster;
• To
provide
recommendations
for
the
development of each cluster.

Which clusters?
Energy
Education
services

Finance

Logistics &
Transport

AgriFood
Clusters

Digital
economy

Health
services

Business
services

Tourism
Halal

How to evaluate and prioritise?
Economic attractiveness

Strategic feasibility

Impact on economic
growth

Resource and skills
availability

Impact on diversification

Competitive strength

Potential for sustainable
employment

Cooperation & Buy-in

Positive industrial spillovers

Cultural and Environmental
sustainability

Cluster-specific workshops

Desk
research

• Cluster
mapping
• Critical
success
factors
• Examples
from abroad
• Trends

Workshop






Vision
SWOT
Gaps in CSF
Strategic
initiatives

Business services cluster
Knowledge-based business services that provide
professional and technological support to other
businesses in order for these businesses to
function effectively.












Business services cluster
Scientific Research
Architectural Services
Consultant Engineering Services
Data Processing Services
Information Storage and Retrieval
Services
Computer Consultancy Services
Legal Services
Accounting Services
Advertising Services
Commercial Art and Display
Services













Market Research Services
Business Administrative Services
Business Management Services
Employment Placement Services
Business Services n.e.c.
Higher Education
Technical and Further Education
Business and Professional
Associations
Financial Asset Broking Services
Services to Finance and Investment
Non-Financial Asset Investors

Role of KIBS in
research
commercialisation
Discovery
Collaborative research
Incubation
Venture launch
Venture sale

Strengths






Political stability
Geographical location
Good basic infrastructure
Good basic education
High standard of living

Gaps







Market size
Human resources
Over-dependence on Government
Connectivity
Not enough entrepreneurs and critical thinkers
Lack of transparency and engagement in policy
implementation

Strategic initiatives
Cluster
institution

Research
centre for
KIBS

National
Innovation
Agency

Prioritise
contracts for
local KIBS

Platform for
knowledge
sharing

Regular review
of regulations

Joint
promotion

Collaboration
with education
institutions

Brunei
Business
Federation

• Policy research provides answers based on best practices, models,
data
• Participatory approach ensures
ownership, and informed decisions

transparency,

accountability,

• Collaboration between public sector, private sector, and researchers
is a key success factor for the policy-making process

Dr Giuseppe Rizzo
Researcher, CSPS
giuseppe@csps.org.bn
www.csps.org.bn