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50th GBM: green light formembership contribution increase

(Continued on page 5

T he 50th session o the APO Governing Body (GBM) took place in Tehran, Islamic Republic o Iran, 21−23 April. In

attendance were 45 delegates and advisers rom 19 member countries, two observers rom the United Nations Devel

opment Programme, and one rom the Iranian Conederation o Employers’ Association. The meeting elected the new

APO Chair and Vice Chairs or 2008/2009 ( see page 7 ) and received reports rom Secretary-General Shigeo Takenaka, whic

included the nancial report and reports on the programs and activities o the organization or 2007 ( see page 2 for a summar

of the Secretary-General’s annual report to the GBM ). The meeting also decided the amount o the total membership contri

butions or 2009 and 2010 and approved the program plans or that biennium. Although “discussions o budgetary matters ar

never easy,” pointed out the Secretary-General, they proceeded in the spirit o mutual cooperation, as explained below.

The 50th GBM opened with a welcoming address by APO Director or I.R. Iran Mohsen Haji Mirzaie, who expressed de

light that Iran was able to host this important event or the rst time in the country’s 40-year history o membership in the

APO. Mirzaie proudly announced that Iran’s ourth scal development planning program had produced a national economi

growth rate o 8%. Productivity improvements alone had generated growth o 2.5%, and this was expected to continue into

the th development program.

In his opening message, APO Chair Besar Setyoko o Indonesia conveyed appreciation to Secretary-General Takenaka and

Secretariat sta members or their eorts and speedy response to put into practice the Governing Body’s decisions on th

new membership contribution ormula and the Secretariat reorm plan.

Vice President o the Islamic Republic o Iran or Management Development and Human Capital Dr. Ebrahim Azizi de

livered the inaugural address. He said that the APO had played an important role in strengthening productivity among it

member countries in the nearly 50 years o its existence. He went on to explain that productivity had immense importance

in Islamic culture and in the teachings o the Quran. Dr. Azizi shared his analyses o the relevance o productivity and con

cluded by stating that productivity would continue to be a major pillar in I.R. Iran’s development plan.

C O N T E N T S

.Annual report o the Secretary-General

.Comment board

.New APO publication

.Common sense talk

.Innovation or globalcompetitiveness

.Food supply chains in the lando tulips

.Job creation through ruraltourism development

.Program calendar

.Photo report

.New chair and vice chairs

.APO/NPO update

.Thailand’s philosophy o thesufciency economy

.APO Photo Contest 2008

APOnews

Information to Make a Difference in Productivity

Volume 38 Number 5

, Forum, Japan

, Study mission, Netherlands

Thai philosophy, Thailand

Printed on Recycled Paper

50th GBM in progress

8/14/2019 APO News 05 2008E


APO News ● May 008

Ater welcoming all present to the 50th

Session o the APO Governing Body,Secretary-General Takenaka expressed

sincere appreciation to the Government o the

Islamic Republic o Iran or hosting the meeting

in Tehran and commented on the beauty o the Al-

borz Mountains ringing the capital. He continued

by pointing out that the 2008 GBM was historic,

since or the rst time in a hal-century, the Gov-

erning Body was to decide the amount o total

membership contributions or 2009 and 2010 in a

clear departure rom past practice, when individu-

al contributions were decided automatically based

on GNI and the total was the sum o all individualcontributions. Now membership contributions are

linked directly to program contents and direction.

The transition to the new system would not be

smooth without the support o all member govern-

ments, Takenaka acknowledged, while expressing

the hope that a decision on the amount o total

membership contributions would be made by the

GBM so that 2009 project preparations could start

immediately thereater.

The Secretary-General also hoped that the GBM

would support an increase in total membershipcontributions, pointing out that they had been ro-

zen since 2005, and that sharp rises in oil prices

had triggered increases in airares. In addition,

the rapid weakening o the US dollar against the

Japanese yen adversely aects the APO, since

Secretariat personnel expenses are estimated in

yen and then converted into dollars using an ex-

change rate determined or budgetary purposes.

For example, the 2009 calculation rate was based

on the exchange rate o one US dollar to 110 yen,

although the current rate has allen ar below that.

An increase in the amount o personnel costs in

US dollars would push up overall APO expenses

substantially, he explained.

The 50th GBM was also important because 2008

was the target year to restore a balance between

administrative and project costs, as directed by the

47th GBM in 2005. That GBM also designated

2008 as the nal year or a progress report on the

Secretariat Reorm Plan. The Secretary-General

recounted how the reorm had concentrated on

restructuring, personnel policy, and inancial

discipline and management. During 2007, major

progress in personnel policy was made with the

perormance appraisal rules based on management

by objective. The system links salary adjustments

with work perormance, rewarding those with

good or outstanding perormance, instead o the

previous automatic one-step increments and pro-

motions to the next grade. “The introduction o

the system contributed greatly to the work culture

o the Secretariat by improving communicationamong sta members and by motivating them to

contribute more to the organization,” commented

Takenaka.

Eorts in restructuring and inancial discipline

and management had produced positive results in

many areas, but nowhere were they more evident

than in restoring the balance between administra-

tive and project costs, Secretary-General Takenaka

stated, citing the imbalance between the two that

had rightly been a major cause o concern at previ-

ous GBMs starting in 2003. Since then, however,

declines were witnessed in administrative relative

to project costs in all subsequent years, including

in 2007. He attributed this partly to Secretariat

restructuring, sta rejuvenation, and more disci-

plined nancial management o projects, with the

average disbursement rate per project also improv-

ing markedly in the years through 2007. “Although

the US dollar is likely to remain weak against the

yen or some time, as long as we maintain the

current reorm momentum, I am condent that we

will be able to maintain a proper balance betwee

administrative and project costs through the end othis year as well,” predicted Takenaka.

Following up on projects on new topics, utilizin

new methods, and with new outreach contents

Secretary-General Takenaka said that about 1

projects on new topics like the aging o societ

and mergers and acquisitions had been held i

2007, with 15 more planned or 2008 and anothe

20 or 2009. Four e-learning projects were oere

last year, attracting over 900 participants wh

recommended their continuation. Another nove

step in 2007 was ollow-up ace-to-ace projecton the same topic or outstanding participants i

e-learning courses. “Since all the participants ha

enrolled previously in the same e-learning course

it was possible or us to organize the project

more eiciently, producing better results,” ex

plained Takenaka; the Secretariat plans to increas

e-learning projects in 2008 to six.

As projects with new outreach, last year the APO

deputed one observational study mission each t

Australia, Switzerland, and Canada with a tota

o 55 participants. Based on their evaluations, thnumber o such missions will increase to ve, cov

ering advanced manuacturing technologies an

sae, green supply chain management in the new

destinations o Germany and the Netherlands.

“I am confident that this

year we will be able to make

more concrete contributions

to the institutional develop-ment of NPOs.”

Activities in amiliar areas were not neglected. Th

4th EPIF, organized with the Vietnam Productivit

Centre and Vietnamese government, attracted 9

exhibitors and record-breaking attendance o mor

than 98,000. Extensive media coverage spread th

One eature o the APO Governing Body Meeting (GBM) is the annual report o the Secretary-General. That report sums up the previous year’s activities an

administrative matters, comments on new initiatives, and casts an eye ahead to uture plans or APO projects and programs. The gist o Secretary-General Shigeo

Takenaka’s annual report to the GBM in Tehran is given below. For the ull text, please see the APO Web site.

Annual report of the Secretary-General

Secretary-General Shigeo Takenaka (fle photo)

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Comment board

Director Praba Nair , KDiAsia, Singapore.

Chie expert, expert group meeting on Cur-

riculum Development or the Basic Course on

Knowledge Management, 19−21 March 2008,

Philippines.

“The purpose o the meeting was to design the basic KM training course curriculum to enhance

APO member countries’ capability in this area.

The meetings on KM commenced in September

2007 in Manila, the Philippines. A drat APO KM ramework and KM imple-

mentation approach were ormulated then. They were reined and inalized

at the second meeting held in Kuala Lumpur in January 2008. KM training

courses based on the APO KM ramework were also proposed at the meeting.

The latest meeting, in Cebu, the Philippines, was devoted to the identication

o relevant topics or a training course. The meeting succeeded in nalizing

the training curriculum or KM, including objectives, modules, contents, train-

ing methodology, and the template or presenting the training materials. It was

characterized by lively exchanges o ideas thanks to the active participationo all experts. The training materials will be developed by the experts or the

pilot APO Basic KM course to be held in September 2008.”

Vice-Director Nguyen Xuan Dinh , International Cooperation Department,

Vietnam Farmers’ Union.

Participant, multicountry study mission on Best Cases o Green Supply

Chains or Agribusiness SMEs, 10–14 March 2008, ROK.

“The mission was really interesting and useul or me, particularly in the

context o rapid globalization. The mission equipped me with the essential

knowledge and practical experiences in green supply chain (GSC) develop

ment in the Republic o Korea. Through site visits, I could observe with m

own eyes the eective application o environment-riendly technology in agri

business, well-organized business practices or environmental protection, an

interactive relationships among producers, scientists, government, businesse

and consumers. The mission satisied my curiosity and urnished me withnew ideas concerning GSC development in my country. However, the ve-da

program was a little too short to cover all the main issues, experiences, an

concepts. I hope that the next program will be a little longer. I would also lik

to suggest that the APO organize a pilot project to demonstrate the applicabil

ity and practicality o major methodologies learned during the program.”

Manager Minoru Yamamoto , Research & Development Division, and Man

ager Toshikatsu Kanaoka , Global Business Development Division, Fuji Xero

Learning Institute Inc., Japan.

Participants, orum on Innovation and Competitiveness, 4−6 March 2008

Malaysia.

“This orum provided us the opportunity to discuss ‘innovation and competitiveness’ with representatives rom other Asian countries. We quickly realize

the diversity o Asia and dierent denitions or implications o innovation

We also noted that the uniqueness o each country or organization can be

source o innovation. The orum gave us new perspectives to understand th

uniqueness o each country in which Fuji Xerox operates. We believe that thi

new view and knowledge will inuse the spirit o innovation into our work

and business. We are now looking orward to reading the APO’s white pape

on these issues complete with uture plans and suggestions. We believe that i

will provide guidelines and a ramework or all APO member countries.”

message o Green Productivity throughout Vietnam. The EPIF also reached out

to numerous private-sector businesses and enhanced APO visibility. In 2009,

the EPIF will be held in March in the Philippines with the close cooperation o

the Development Academy o the Philippines, the country’s government, and

its private sector.

Other projects on Green Productivity, the development o NPOs, and inte-grated community development were undertaken in 2007. Meetings under

DON Strategy brought together 15 NPOs rom two clusters o development

and produced in-depth analyses o their institutional development priorities.

The Secretary-General remarked that, “I am condent that this year we will

be able to make more concrete contributions to the institutional development

o NPOs.” All other planned projects including those related to knowledge

management, strengthening o SMEs, IT and innovation, and ood saety will

be implemented and he was “happy to report that Category B projects outnum-

bered those in Category A in 2007.”

Touching on the APO Arican Program, Takenaka noted that a three-week

advanced course or the development o productivity specialists would com

mence at the end o April in South Arica with experts rom APO member

and nancial assistance rom Japan. He added that an APO delegation woul

attend the 4th TICAD meeting in Yokohama, where economic growth, huma

security, and the environment in Arica will be addressed.

Ater assuring the GBM that he would give ull details on the 2009 Program and an update on research results at the 2008 WSM in Cambodia, th

Secretary-General concluded his statement: “Our mission o creating a bette

tomorrow through productivity improvement today would not be possibl

without the ull cooperation and determination o member countries to ad

vance the productivity movement in the changing environment. The APO mus

constantly investigate new topics, adopt new modalities, and establish new

outreach programs, the results o which can be incorporated when appropriat

into project planning and design to beneit member countries…. With you

ullest support, the APO can be relentless in the pursuit o higher productivity

which is undamental to economic progress, prosperity, and the well-being o

the people in the region.”

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50th GBM ..................................................................................................................................... (Continued rom page 1)

Following the decision o the Governing Body to adopt a new membershipcontribution ormula at its 49th session in Mongolia in June 2007, the meet-ing used a new procedure to determine the amount o total APO membership

contributions. Previously, national contributions were based on a xed ratioo the gross national income o member countries. From this year onward,

Directors are required to decide the total membership contributions or a biennium based on program plans prepared by the Secretariat in consultation

with the Workshop Meeting o Heads o NPOs.

The discussions on the total membership contributions proceeded smoothly,and Directors arrived at a rm, unanimous decision on the amount or 2009 and

2010. The agreed amount represents a 3.2% increase above the current level,taking into account such actors as increasingly expensive airares due to high

oil prices and the recent depreciation o the US dollar. The increase thus ends areeze on APO total membership contributions imposed since 2005. APO Sec-retary-General Takenaka appreciated the increase and stated that it epitomized

the strong commitment o member countries to the productivity movement aswell as a vote o condence in the work o the organization.

Another highlight o the 50th GBM was policy initiatives proposed by Direc-tors ocusing on ideas to upgrade the productivity movement in the Asia-

Pacic region beore the 50th anniversary o the APO in 2011. Several ideaswere expressed by more than one Director, such as strengthening the APO’s

think tank role, establishing centers o excellence in specialized areas among NPOs, development o national customer satisaction indices, and improve-ment in public service delivery. The meeting requested the Secretariat to

examine the proposals and devise an integrated plan to commemorate the rst50 years o the APO’s existence.

Secretary-General Takenaka, in his closing statement, expressed appreciation

or all the ideas suggested. He reported that the initial step in strengtheningthe think tank role had been taken with the launch o the new version o the APO Productivity Databook series. The new volume contains labor produc-

tivity data on all member countries spanning the 30 years rom 1975 to 2005and is the only publication that provides this type o data. The GBM greeted

the Secretariat’s initiative with applause.

While in Tehran, the delegates had the opportunity on the second day o theGBM to visit the Royan Institute, the country’s leading institution in cell- based biotechnology research.

During the closing session, APO Director or Sri Lanka Mahinda Madihahewa

presented a vote o thanks to the Government o I.R. Iran and National Ira-

nian Productivity Center or their generosity and warm hospitality extended

throughout the meeting. He then issued an invitation to all delegates to at-

tend the 2009 GBM in Sri Lanka.

APO Secretary-General Takenaka welcoming orum participants via video

Innovation or global competitiveness

T he 24th Top Management Forum was held in Kyoto, Japan, 2−6 March,2008. The orum series brings together executives o public and private en-terprises including NPOs o APO member countries and provides a venue

or CEOs and managers in the Asia-Pacic region to examine the best practices o leading Japanese companies in a specic area. This year the ocus was on how in-novative corporate strategy allows businesses to survive and thrive in erce globalcompetition. APO Secretary-General Shigeo Takenaka kicked o the event with avideo message in which he stated that, “In today’s economy, the borders separat-ing dierent business ields are blurred as a result o technological innovationand deregulation.... Thereore innovative strategies are required to determine thetype o superiority which will gain a greater market share and which competitorsare most signicant in complex, interconnected markets.” The opening ceremonywas graced by representatives o the coorganizers such as President TsuneakiTaniguchi, Japan Productivity Center or Socio-Economic Development, andChairman Kiyoshi Otsubo, Kansai Productivity Center.

The 36 participants rom 17 member countries plus eight local attendees heardExecutive Vice President Keisuke Okada o All Nippon Airways (ANA) outlinethe strategies that the ANA Group deployed on the fight path to becoming the

No. 1 airline in Asia. Division General Manager Atsuyoshi Nakamura, Sharp Cor-

poration, introduced a unique adaptation o monozukuri, the art o manuactur-ing, as a means to succeed in global competition. Chairman and CEO YoshiharuKaihara, o the denim producer Kaihara Corporation, explained an internationalexpansion strategy ocusing on product and workorce quality with continuous

product development. Ajinomoto Co., Inc.’s history o innovation and business di-versication was presented by Corporate Vice President Koichi Maeda. Ater thediscovery o the amino acid umami, Ajinomoto developed a wide range o prod-ucts including undamental oods, seasonings, pharmaceuticals, and nutritionalsupplements ound in households throughout the region and beyond.

Refecting the realities o a globalized economy, the APO invited two guest speakers to the 2008 Top Management Forum: Vice President Bhat Harikrishna o WiprJapan KK, the Japanese headquarters o the Indian IT service provider Wipro; anVisiting Lecturer Tatsuo Tanigawa, Ritsumeikan Asia Pacic University. Harikrishna described Wipro’s innovation-oriented operations and global management stra

egy. The cutthroat competition in the global auto industry and necessary survivatactics were the topics o Pro. Tanigawa, who stressed the importance o strategialliances and capability learning. Researchers and government representativewere also invited to share their views with orum participants.

Ater a group discussion on how Japanese strategies could be adapted to allow businesses in other APO member countries to compete worldwide, a site visit wamade to Shimadzu Corporation, a multinational manuacturer o measuring instruments, medical systems, and industrial equipment headquartered in Kyoto.

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T he Netherlands, amed or its prize tulips, is the world’s third-largest exporter

o agricultural products and a leader in high-tech market gardening, dairyarming, and modern ood supply chain management rom arm to ork. The

APO, as an advocate o ood saety and quality management, dispatched an ob-servational study mission on Building Reliable, Sae, Green Food Supply Chainsto the Netherlands in collaboration with the Wageningen Expertise Centre or

Chain and Network Studies (WCNS), 1−5 April. The 13 participants investigatedthe Netherlands’ ood marketing system, roles and unctions o each player in

the supply chain, and related technology-intensive systems.

The mission rst visited the Agricultural Economics Research Institute o Wage-ningen UR (LEI) where experts rom the WCNS and LEI explained the horticul-ture sector, agricultural markets, and ood supply chains in the Netherlands. A

tour o Naktuinbouw, a nonprot horticultural inspection service organization,demonstrated its value-added seed quality control practices. On the second

day, FloraHolland, the Netherland’s oremost cooperative fower auction center,hosted the participants beore they traveled to the commercial supplier Haluco

to learn about its interwoven network o contractors, clients, and growers, bothoreign and domestic. In the aternoon, participants observed the award-winning,

energy-producing greenhouse at the Wageningen UR Greenhouse Horticulture.They also heard a presentation on greenhouses as a source o innovation at theFoundation or Innovation in Greenhouse Horticulture. “The innovative green-

house was outstanding and proves that a greenhouse can be a source o energy,”commented Executive Director Tan Jin Soon, GS1 Singapore Council-cum-

member o the Singapore Standards Council, SPRING.

The third day eatured speakers rom the Product Board or Horticulture, Hol-land Product Promotion, and Flowers&Food who spoke on the importance o collaboration among trading partners and supply chain members. Then Hessing,

a leading vegetable and ruit cutting operation, opened its actory to the missionto demonstrate its processes. The ourth day also comprised three lectures on

Food supply chains in the land o tulips

ood saety practices, governance, and research activities beore visiting Friesland Foods Western Europe, a multinational producer o dairy products, rui

drinks, and ood ingredients. The mission ended with the annual Kom in de Ka(come in the greenhouse) estival, where APO participants joined locals in learn

ing how growers ensure sae products.

Mission members expressed satisaction with the study mission. “We saw an

studied many wonderul systems, organizations, and processes. We may noable to apply everything in our country, but most o our learning will be use

someday within our organizations,” commented Senior Manager Nihal SenerathJaykay Marketing Services (Pvt.), Sri Lanka.

Participants at the Wageningen UR Greenhouse Horticulture

Job creation through rural tourism development

Rural areas are becoming popular destinations or tourists wanting to experi-ence unique attractions, adventures, and authentic rural ood and amenities.

This trend provides opportunities or rural communities to develop productsand services while generating employment and income. The Philippine government,through its Department o Tourism (DOT), is positioning the country as a key des-

tination in Asia or tourists seeking the rural liestyle. DOT envisions marketing themore than 7,000 islands across the archipelago based on their unique endowments,

colorul heritage, and culture. However, the need to organize rural communities todevelop local tourism enterprises is recognized. Improved product quality and up-

graded services are critical or robust, sustainable rural tourism development.

Inspired by the APO multicountry seminar on Community-based Rural Tourism

(CBRT) in Malaysia in 2007, ormer participants and resource person Dr. MinaGabor, President o the Philippine SMEs Development Foundation (PHILS-

MED), organized a ollow-up national seminar, 26–28 March, in Cebu. DOT,PHILSMED, Philippines Convention and Visitors Corporation, and Develop-

ment Academy o the Philippines cooperated in organizing the project. The APOdeputed three international experts under the TES Program and the Secretariat program ocer responsible or CBRT projects as resource persons, who were

complemented by our local experts.

The seminar was resoundingly successul, attracting 320 participants, or morthan twice the original target, rom all over the Philippines, representing bot

the government and private sectors, including tour and travel associations. DOTUndersecretary Oscar Palabyab, who gave the keynote address, attributed thsuccess to timeliness and the ocus on the value o tourism to the lie o rura

communities. He said that CBRT had great potential or job creation, increasedemand or local products and services, greater awareness o cultural heritage

environmental protection, and agrobiological diversity. Tourism niches, sucas bird watching, whale watching, diving, ecotourism, agrotourism, and rura

homestays improve the demographics o the tourism labor orce, since jobs arnot limited to the hospitality business but create new tourism proessionals including marine experts, botanists, ornithologists, and ecologists.

Other topics discussed involved global trends in tourism development, the CBR

ramework, community participation in rural tourism project planning and development, sustainable management o natural resources or tourism, ecolabel

or rural products and services, and promotion o local culture and indigenou products as part o the tourism package. Participants grouped into regional clusters and prepared marketing plans or their tourism products on the nal day o

presentation to the entire seminar.

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APO/NPO updateNew address and phone/fax numbers of NPO for MongoliaThe address and phone/ax numbers o the NPO or Mongolia were changed to:

National Productivity and Development Center Room 102&103, 1st Floor, Central Cultural PalaceSukhbaatar Sq. 3, Ulaanbaatar-11Tel: 976-11-326-115 Fax: 976-11-329-799

August

IndonesiaStudy meeting on Financing of SMEs, 5−8 August.

▶Objectives: To analyze the results o the research on Financing or SMEs conducted in 2007; and identiy best practices and ormulate practi-

cal, innovative recommendations or strengthening SME nancing in member countries.▶ Participants: Senior government oicials responsible or SME policyormulation, senior managers, NPO heads, senior researchers, and academ-ics with proessional knowledge o or direct involvement in the area o SME nancing.

PakistanRegional workshop on Biomass Utilization for Industrial Boilers, 18−23 August.

▶ Objectives: To build the capacity o industries, especially SMEs, to col-lect, store, process, and use biomass as uel in industrial boilers; and create

a pool o proessionals in the target countries (Bangladesh, India, Nepal,Pakistan, and Sri Lanka).

▶ Participants: Industry (especially SME) managers, energy proessionals, biomass specialists, boiler users or manuacturers, and energy consultants.

Sri LankaSeminar on Public-Private Partnerships (PPPs) for Improving the Pro-ductivity of Irrigation Systems, 25−30 August.

▶ Objectives: To review the present status o PPPs in irrigation systemmanagement in member countries; enhance the understanding o partici-

pants o the issues, challenges, and opportunities in PPPs or irrigationmanagement; and share the best examples o PPPs and identiy lessons or their adaptation to country-specic situations.

▶ Participants: Senior ocials or researchers in the public or private sec-tor, senior managers o water companies, and senior representatives o water users’ associations with experience in participatory irrigation man-agement.

e-Learning courseToyota Production System (based on the Global Development Learning

Network o the World Bank platorm).Phase 1: 18−20 June or Indonesia, I.R. Iran, Malaysia, Philippines, andThailand;Phase 2: 4−6 August or Cambodia, Lao PDR, Mongolia, and Vietnam; andPhase 3: 11−13 August or Bangladesh, India, Nepal, Pakistan, and SriLanka.

▶ Objectives: To understand the methodology o the Toyota ProductionSystem, its application, and critical success actors to enable participantsto use the knowledge in setting up fexible production systems or small-quantity production in their own processes.▶ Participants: Quality personnel, trainers/consultants, and senior/mid-level managerial and technical personnel rom industry involved in manu-acturing, production systems, and automation.

Kindly contact your NPO or details o the above activities, including eligibility or participation. The project details along with the address o

your NPO are available rom the APO Web site at www.apo-tokyo.org.

Program calendar

Photo report

MPC (L) and CPC (R) signing an MOU on innovation and competitiveness Forum on Innovation and Competitiveness, 4−6 March 2008, Malaysia.

Experts debating the KM training curriculum Expert group meeting on Curriculum Development or the Basic Course on Knowledge Management, 19−21 March 2008, Philippines.

New APO chair and vice chairsThe 50th Session o the APO Governing Body elected APO Director

or the Islamic Republic o Iran Mohsen Haji Mirzaie as APO Chair or 2008–2009 and APO Alternate Director or Japan Masato Watanabe andAPO Director or the Republic o Korea Sung-Ki Bae as the First andSecond Vice Chairs, respectively.

(L–R): Bae, Watanabe, Mirzaie

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Published monthly by Asian Productivity Organization, Hirakawa-cho Dai-ichi Seimei Bldg. 2F, 1-2-10 Hirakawa-cho, Chiyoda-ku, Tokyo 102-0093, Japan;

Siam Cement Group executives (R) explaining production acilities

Thailand’s philosophy o the sufciency economyor sustainable enterprises

An important unction o the APO is identiying new methods o pro-ductivity improvement and disseminating them to member countries.A recent example was the APO and Thailand Productivity Institute

(FTPI) seminar on the Global View and Applications o the Suciency Econ-omy Philosophy (SEP) toward Sustainable Enterprises, in Bangkok, 12−16February. The seminar, with 25 APO participants rom 12 member countriesin the audience o more than 100, began with an open orum eaturing variousinternational and local dignitaries including senior government ocials, repre-sentatives o the private sector, and economists.

The SEP was ormulated by His Majesty King Bhumibol Adulyadej o Thai-land, a dedicated development expert. His Majesty questioned the sole ocuson economic growth and suggested an alternative, human-centered develop-ment approach enabling individuals to achieve an appropriate balance in their endeavors. The SEP acknowledges that a measure o sel-reliance is neededto operate eectively in the globalized market. It is based on the three keyconcepts o moderation, reasonableness, and sel-immunity pursued ollowing

the two underlying principles o knowledge/wisdom and ethics, which involvevirtue and integrity. The SEP achieved global recognition when H.M. KingBhumibol received the 2007 UNDP Lietime Achievement Award or his con-tributions to eorts to alleviate poverty and social inequality in Thailand.

In his opening remarks at the seminar, APO Secretary-General Shigeo Takenaka

introduced the broad spectrum o creative productivity models that APO projects have disseminated, including practical Japanese tools such as 5S,kaizen, and the community-based One Village, One Product (OVOP) move-ment. Other models included Thailand’s One Tambon, One Product (OTOP)movement (an adaptation o OVOP), Korea’s New Community Development(Saemaul Undong ), Indonesia’s groundbreaking microinance system, andBangladesh’s Nobel Prize-winning Grameen Bank. “The suciency economy

concept caught our attention ater Thai participants in various APO projects re-erred to it during discussion sessions. It is interesting or me to learn that theconcept is broader and applicable at any level rom individuals, communities,and enterprises to the management o the national economy,” stated Secretary-General Takenaka.

Keynote speaker Secretary General Dr. Surin Pitsuwan, Association o South-east Asian Nations, suggested that the SEP could serve as a coping mechanismor the harsh realities o globalization since, “Globalization oers no deenses,no protection or guarantees or anyone anymore. Everyone is equally exposedand everything is at risk.” Dr. Pitsuwan added that the world was in desperateneed o alternative, sustainable solutions that deliver social security, especiallydeveloping nations struggling to balance immediate needs and uture nation-

building agendas.

The SEP is increasingly accepted by the Thai corporate world. An early adopter was the Siam Cement Group, the recipient o H.M. the King’s Trophy or BestPractice o the Suiciency Economy in Large Enterprises category in 2007.

During the Asian nancial crisis, the group devised a survival strategy or re-orm centered on the SEP which averted possible business closure by harness-

ing the ingenuity, resourceulness, and sel-suciency o its employees.

For the FTPI, the seminar provided an opportunity to share the best practices o

the SEP in action in its OTOP outreach programs. The FTPI is conducting nee

assessment or OTOP cluster management and designing a quality managemenramework based on the SEP. It expects that the SEP will become the oundatioor developing human resources holistically throughout the Asia-Pacic.

Theme: Productivity —Tomorrow’s Hope

Sponsor: Asian Productivity Organization

Cosponsor: FUJIFILM Corporation

Supported by: National Productivity Organizations

Entrants: Nationals of APO membersClosing Date for Entries: 15 August 2008

Asian Productivity Organization

Rules and Entry Form: See the APO Web site (www.apo-tokyo.org)

apo news 05 2008e

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