Jordan Times
Monday, December 20, 2004
Information technology sector
highlighted as an example of organising private sector clusters
By Sarah Ryan
AMMAN — The IT sector was highlighted on Sunday as an example of organising the
private sector into clusters.
“Clusters are the correct framework for development,” said Khaled Kurdi at the
third monthly meeting of the Jordan Vision 2020 series entitled “Establishing
the Urgency of Reorganising the Private Sector into Clusters.
“They [clusters] are theoretically sound and tested globally,” remarked Kurdi,
local consultant to Jordan Vision (JV) 2020.
The role of strategy development on the sectoral level helps sectors understand
requirements to realise their future potential, he added.
According to Kurdi, a cluster is : “A geographically proximate group of
interconnected companies and associated institutions in a particular field,
linked by commonalities and complementaries.”
The value of connecting in similar businesses includes improving productivity
and access to specialised suppliers, skills and information, he indicated.
Jordan's IT sector was used to demonstarte a relatively young but successful
sector that has capitalised on the cluster approach. REACH, a plan initiated in
1999 for the sector, set targets and responsibilities dealing with the
regulatory conditions, an enabling environment, the advancement of IT, capital
markets and human resources for the sector.
The achievements have been many including 15 new laws dealing with labour,
telecommunications, private shareholding and IP, education sector reform and
private-public partnerships, noted Marwan Jumaa, CEO of Batelco Jordan.
“Each sector has to create a strategy and revise it each year,” he said.
“Following that, the strategy has to be made into an action plan with assigned
roles, responsibilities and deadlines.”
Young Entrepreneurs Association (YEA) Representative Laith Al Qasem facilitated
discussions with various businesses of the private sector.
One sector, Dead Sea products, is currently making JD5-JD6 million a year. Their
target is to grow 50 per cent each year to reach a total of JD35 million
annually.
The sector's representative noted that the concept of collective work needs to
be enhanced and hopefully have a strategy for the upcoming year.
JV 2020, supported by business organisations and private sector representatives,
aims to ensure the private sector is proactive in shaping a response to the
challenges of the 21st century rather than being overwhelmed by them.
As a concrete goal, the strategy looks to double Jordan's gross domestic product
by 2020.
The aim is to create strategic plans that follow international best practice
using techniques like cluster mapping. Results of sector strategies will be
presented to the government and the public by the end of 2004.
“JV 2020 is helping private sector realise their current state and future
potential,” concluded Kurdi.