Niche industries the way forward

Niche industry could be one of the keys to private sector economic growth here in Samoa.

That’s the opinion of the United Nations Under-Secretary-General, Gyan Chandra Acharya, who visited Samoa this week.

Speaking to the media in Samoa, he said he believes Small Islands Developing States (S.I.D.S) should not be looking at traditional business models.

Mr. Acharya, who is the Under- Secretary-General and High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (U.N.O.H.R.L.L.S.), was in Samoa to discuss the preparations for the Private Sector Partnerships Forum that will be convened on August 30- 31 in Apia.

With sustainable development being a main theme of the conference, Mr. Acharya said that island states should look at adapting big country models to small scales.

“One of the things we should be looking at again is not the traditional model of the business,” he said.

“When I say the traditional model, if you are looking at the scale, if you are looking at the big manufacturers and all of that will be very difficult, given the smaller size of the economy; given the fact that it is away from the major economic centres. “But that doesn’t mean that you cannot work on the niche production, that is what we were discussing with many of the people.

“It does not mean you cannot grow up the value chain in whatever you are producing, even on a small scale.”

In regards to this, he said aspects to look at were enhancing the quality of the product being sold, branding and marketing and looking for new markets in which to sell the product.

“These are some of the issues, which every country faces in any case,” he said. “So you can always find some niche production, niche services, niche areas in which you can do a lot of work.

“That is what we are trying to focus on.” Turning to policy the Under- Secretary-General said he believes the dialogue that will happen with the private sector and the government will also open up opportunities.

“For many people to say ‘ok this is the best practice, this is working in this part of the world, again small islands but it is working,’” Mr Acharya said.

“Then why don’t you look at all of that and if that is possible why don’t you adapt that to your situation,” he said.

“I think this is what we will be looking at in terms of the private sector partnership.”

He also said the cost of producing things depends on what is termed the factors of production. According to Investopedia factors of production is an economic term to describe the inputs that are used in the production of goods or services in the attempt to make an economic profit “And transportation and connectivity plays a very important role, energy plays a very important role,” he said.

“And you have a lot of resources as well.

“You have the oceans, you have the fishing, you have the tourism, even agriculture, but it is how do you really upgrade the quality, link up with the…big companies.

“How to really make sure that that is really effectively and efficiently used and then also bought to the level, which will create a market for itself.”

Mr. Acharya said this did not have to be on a large scale all the time but getting the linkages with the international community would help the local private sector deal with demand they will face from the international community when they get into a market.

“So that is what we are looking at, we are not only looking at just the production and all of that,” he said. “I would say that there is an opportunity and these are therefore the issues we have identified based on our discussions with all the member states.

“So I see a lot of opportunity for that.”