TRANSNATIONAL CORPORATIONS PLEDGE PARTNERSHIPS WITH SMALL AND MEDIUM-SIZED ENTERPRISES FOR DEVELOPMENT
Press Release
TAD/1925
TRANSNATIONAL CORPORATIONS PLEDGE PARTNERSHIPS WITH SMALL AND MEDIUM-SIZED ENTERPRISES FOR DEVELOPMENT
20000811GENEVA, 11 August (UNCTAD) Transnational corporation-small and medium- sized enterprise (TNC-SME) linkages can have a positive impact on national growth and development, concluded participants in the international workshop on Technological and managerial upgrading of small and medium-sized enterprises (SMEs) through linkages with transnational corporations (TNCs), organized jointly by the United Nations Conference on Trade and Development (UNCTAD) and Intel Malaysia from 8 to 9 August 2000 in Penang, Malaysia.
This event involved 250 participants from TNCs, SMEs and SME-support agencies from seven Asian countries, as well as international experts from Organization for Economic Cooperation and Development (OECD) countries and representatives from UNCTAD, the United Nations Development Programme (UNDP) and the United Nations Industrial Development Organization (UNIDO). It was co- organized by the Penang Skills Development Centre, the Penang Development Corporation, the American-Malaysian Chamber of Commerce, and the Federation of Malaysian Manufacturers.
Participants exchanged views on successful Asian linkage programmes, particularly those implemented in Penang, and identified a number of best practices, which were considered as conditions for the success of such programmes:
1. Governments must act as catalysts by providing a continuously improving logistics and educational infrastructure, particularly for the development of engineering and management skills. The enabling business environment must be founded on a meaningful and continuous public-private sector dialogue, so that the public sector understands the business needs of TNCs and SMEs alike.
2. TNCs must act as agents of change or anchor companies working with SMEs for technological and managerial upgrading by adopting SMEs and coaching them in continuous improvement. They must provide business opportunities with other international partners. TNCs, with their vast potential, can facilitate universal access to information technology and the capability to embrace new methods of commercial transactions, in particular, e-commerce.
3. SMEs must have the commitment to compete, to survive and to succeed. Moreover, they must have a vision of their own evolution and be prepared to change their mindset in line with new opportunities and requirements. They must focus on core competencies, be flexible, willing to learn and committed to continuous improvement.
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4. The public and private sectors, as well as academia, must work together to create meso institutions, such as skill training centres, to facilitate transfer of technology and to achieve the capability for continuous innovation.
5. The creation of linkages between TNCs and SMEs must be based on trust, confidence and long-term vision. It requires open communication, a regular flow of critical information, and sharing of knowledge concerning all aspects of development that are essential for productive partnerships.
The Minister of Human Resources of Malaysia and the Chief Minister of the State of Penang have been requested to invite United Nations Secretary-General Kofi Annan to consider extending the scope of the Global Compact between the United Nations and the international business community to the developmental role of TNCs and the promotion of public-private partnerships in developing countries. Participants also called upon UNCTAD to disseminate the findings of the workshop and to develop appropriate technical assistance programmes for the promotion of TNC-SME linkages, in cooperation with other relevant United Nations organizations, multilateral agencies, bilateral donors and the private sector.
For more information, please contact Lorraine Ruffing, Chief, Technology and Enterprise Branch, UNCTAD Division on Investment, Technology and Enterprise Development, tel: +41 22 9075802, e-mail: ; or the UNCTAD Press Unit, tel: +41 22 9075828; fax: +41 22 9070043; or e-mail: .
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