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Masahiro Kawamura, PhD, JICA Expert for Commercial Agriculture Promotion / One Village One Product for the promotion of One Village One Product Programme implemented by the Government of Nepal and Federation of Nepalese Chambers of Commerce and Industry.
Responsibility for the contents and opinions expressed on this book rests solely with the author. Author: Ganesh Shakya, Senior Programme Manager, Agro Enterprise Centre, Federation of Nepalese Chambers of Commerce and Industry
Publisher: Japan International Cooperation Agency (JICA) Nepal Office, Block B, Karmachari Sanchaya Kosh Building, Hariharbhawan, Lalitpur, Nepal Mail: Post Office Box 450, Kathmandu, Nepal Tel: +977-1-5010310 / 5010305 / 5010311 Fax: +977-1-5010284
This copy of the book has been supplied on condition that anyone who consults it is understood to recognise that its copyright rests with the Author and JICA and that no quotation from the report, nor any information derived therefrom, may be published without the Author and JICAs prior, written consent.
Preface
It is my great pleasure to help publish an article, Understanding One Village One Product in Japan, Thailand and Nepal in Nepal written by Mr Ganesh Shakya who is my colleague working as Senior Programme Manager at Agro Enterprise Centre, Federation of Chambers of Commerce and Industry. This is the first book which describes the history and effect of original Japanese OVOP movement and its dissemination to Thailand and Nepal. In his article, I found it particularly valuable that he describes the different natures and characteristics of OVOP in the 3 countries, yet shows that they have strikingly similar messages: importance of rural entrepreneurship with positive participation at grassroots level for the development of their local pride, local materials and local employment. As he describes in his articles, One Village One Product movement was born 30 years ago in Japan, my native country, and has been adopted by various countries and regions in the world, including Nepal. He has been working as the Senior Programme Manager of One Village One Product Programme since its inception in Nepal in 2006. I acknowledge that he is the person who contributed to the successful operation of this One Village One Product Programme in Nepal and who knows best about achievements and potentials, as well as difficulties, in the production and marketing of all the One Village One Product items in Nepal. I highly appreciate his hard working and professional nature for his work, and wish him to be so in future. I hope that he will continue writing such a meaningful article as this for many years to come. I wish him great success in his professional work.
Masahiro Kawamura, PhD JICA Expert for Commercial Agriculture Promotion / One Village One Product AEC, FNCCI / Ministry of Agriculture and Cooperatives
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Pradip Maharjan CEO Agro Enterprise Centre Member Secretary OVOP Secretariat
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Table of Contents
Preface........................................................................................................... i Prologue ....................................................................................................... ii Acronym and Abbreviation........................................................................... iii Table of Contents ........................................................................................ iv List of Tables ................................................................................................ v List of Figures ............................................................................................... v Chapter 1: Introduction .................................................................................1 Chapter 2: OVOP in Japan ...........................................................................1 Oyama-Machi Experience.........................................................................1 Starting of the Movement ..........................................................................2 Principles of OVOP ...................................................................................2 OVOP products in Oita, Japan..................................................................3 Role of Government ..................................................................................5 Role of Leaders.........................................................................................5 Conclusion ................................................................................................6 Chapter 3: One Tambon One Product in Thailand .......................................6 Introduction ...............................................................................................6 Philosophy, Activities and Objectives .......................................................7 Administrative Structure and Committees.................................................8 Types of OTOP .........................................................................................9 OTOP Promotion.....................................................................................10 Product Sales Trend ...............................................................................12 OTOP focus in 10 years Road Map ........................................................13 Conclusion ..............................................................................................13 Chapter 4: OVOP Programme in Nepal .....................................................14 Background .............................................................................................14 Initiation ...................................................................................................14 OVOP Programme ..................................................................................15 OVOP Nepal Products ............................................................................16 Role, Duties and Responsibilities of the Committees .............................20 Programme Partners...............................................................................22 Role, Duties and Responsibilities of the Partners...................................23 Hiramatsu OVOP Award 2010 ................................................................25 Support by the Government of Japan .....................................................26 Strength and Weakness..........................................................................26 Conclusion ..............................................................................................28 Chapter 5: Overall Conclusion....................................................................28
List of Tables
Table 1 OVOP products in Japan in 2002 .................................................. 3 Table 2 OVOP Product price compared with Motorcars ............................ 4 Table 3 OTOP Producer registration Year 2010 ...................................... 10 Table 4 OTOP Product Registration Year 2010 ....................................... 11 Table 5 OTOP Quality Assurance ............................................................ 12 Table 6 Number of OTOP products with Star........................................... 12 Table 7 OTOP 10 Years Road Map ......................................................... 13 Table 8 OVOP Products in Nepal............................................................. 16 Table 9 Annual budget Allocation............................................................. 19 Table 10 Composition of Basket Fund Sub-Committee ........................... 20 Table 11 Composition of District Committee ............................................ 21 Table 12 Government Partners ................................................................ 22 Table 13 Private Sector Partners ............................................................. 23
List of Figures
Figure 1 Sales Trend ................................................................................ 13 Figure 2 Planning Process........................................................................ 19 Figure 3 Shiitake mushroom and distilled barley spirit ............................. 35 Figure 4 OVOP Hiramatsu Award ............................................................ 35 Figure 5 Nepalese participant with Dr Hiramatsu in Japan ...................... 35 Figure 6 Junar orange from Ramechhap and Sindhuli............................. 36 Figure 7 Lapsi candy and lapsi fruits from Bhaktapur .............................. 36 Figure 8 Bel tree, bel juice stock, bel fruits and bel squash ..................... 36 Figure 9 Trout raceway, trout and trout for sale in Nuwakot and Rasuwa 37 Figure 10 Coffee nursery, coffee trees and processed coffee from Kaski and Syangja ............................................................................... 37 Figure 11 Lokta farmer with Lokta shrubs, Lokta bark, and Lokta Hat..... 37 Figure 12 Orchid farming in green house and orchid flowers................... 38 Figure 13 Agro Tourism in Begnas Lake are (restaurant, fish pond, panoramic view) ......................................................................... 38
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Chapter 1: Introduction
Isson Ippin meaning One Village One Product (OVOP) in Japanese is a community centred and demand driven rural economic development programme that originated in Oita Prefecture, one of 47 Prefectures in Japan in 1979. OVOP is now a popular term of rural development in Asia followed by Africa and Latin America (Annex 1). A credit goes to Dr. Morihiko Hiramatsu, the former Governor of Oita Prefecture, who named and promoted OVOP as a campaign with a vision of revitalising remote villages at a time when there was a problem of depopulation due to the migration of village youngsters to big cities for seeking employment. Dr Hiramatsu retired from the Governor in 2003, and is now the President of Oita OVOP International Exchange Promotion Committee (OOIEPC), working for the promotion on OVOP all over the world.
Combination first and then New Paradise Community which aimed at 2 human and community improvement .
Principles of OVOP
The OVOP movement defined by Oita OVOP International Exchange 5 Promotion Committee is based on the following three principles . 1. Think Globally, Act Locally 2. Self-reliance and Creativity 3. Human Resource Development The first principle Think Globally, Act Locally that is meant for the creation of globally acceptable products and/or services based on local resources. Local residents are expected to create globally marketable products and/or services which represent local peoples pride in material and cultural richness of their home villages/towns. The story behind any product or its development helps attract consumers attention such as local flavour will help add values to local products while the use of local human and material resources will help make economic activities sustainable.
1 The Past, Present and Future of the Town of Plums and Chestnuts, by Oyama-Machi, a hand out in JICA Training Community Capacity and Rural Development Promotion for Asia Countries - One Village One Product on June 16, 2011. 1
Stenning and Miyoshi (2008) Knowledge and Networking Strategies for Community Capacity Development in Oyama-machi: An Archetype of the OVOP Movement, Journal of OVOP Policy vol.1 Oct, 6, 5-20. 3 Oita OVOP International Exchange Promotion Committee, OVOP Movement: Why was OVOP proposed?, at http://ovop.jp/en/ison_p/haikei.html 4 Oita OVOP International Exchange Promotion Committee Bulletin 5 Oita OVOP International Exchange Promotion Committee, OVOP Movement: Principles of OVOP, at http://www.ovop.jp/en/ison_p/jissen1.html 2
The second one is Self-reliance and Creativity. These two factors are crucial since local knowledge and instinct can aid the discovery of buried treasures in each village/town. Everything local is potentially valuable, but whether the potential turns into a reality depends on the initiative and effort of the local people. The last one is Human Resource Development which aims at fostering local people with challenging and creative spirit. For example, the regional development policy of Japan has traditionally focused on construction of infrastructure like roads and bridges. The OVOP movement, in contrast, emphasises visionary local leadership with challenging and creative spirit. The success of any OVOP product/service largely depends on its quality - developed and improved by local people themselves
Tangible Products Shiitake mushrooms, (Figure 3), Kabosu limes, barley spirits (Figure 3), and greenhouse mandarin are the branded OVOP products of Japan. Shiitake mushrooms is one of the best products of Oita. In 2001, a total of 1425 tons Shiitake mushrooms were produced which 7 accounts 28 % of domestic market share . Similarly, another product Kaboshu limes is the product that produces only in Oita. Its annual production as recorded in 2001 was 6050 tons. Greenhouse mandarin is another unique product ranking Oita's 4th production. Its annual production is recorded to 5630 tons. Other products like Bungo Beef that topped the Japanese Beef Grand Championship in 2002. It is famous for quality throughout Japan. Oita's Distilled barley spirits (fig 2) is also equally famous product of OVOP. The combination of Kaboshu lime juice and barley spirits is famous and smooth in taste. Oitas produces like Shiitake mushroom (Figure 3), Kabosu lime, Greenhouse mandarin and distilled barley spirit (Figure 3) has now become national brands of Japan. The price of 100 gm dried Shitake mushroom costs US$ 28 (3,000 yen) whereas the price of a motor car, if calculated simply by weight, costs just US$ 1.9 (200 yen) per 100 8 gm (Table 2) .
Intangible Products In OVOP Japan, there is no limitation in product selection. Tangible or intangible, any product could be OVOP product. For example, Yufuin town and Kuju town both have successfully achieved regional 9 development without compromising natural environment . Oita's Soccer Team Trinita, Annual Wheelchair Marathoon are the events included in OVOP. Similarly, Beppu Argerich Music Festival and Oita Asia Sculpture Exhibition are another example of successful OVOP
Oita OVOP International Exchange Promotion Committee, OVOP Movement: Local Yet Global, at http://www.ovop.jp/en/ison_p/jissen1.html 8 OOIEPC Office. 9 Oita OVOP International Exchange Promotion Committee, OVOP Movement: Local Yet Global, at http://www.ovop.jp/en/ison_p/jissen1.html 4
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Oita OVOP International Exchange Promotion Committee, OVOP Movement: Fruits of OVOP, at http://www.ovop.jp/en/ison_p/seika.html 3
events. These are the example of the right choice of local products, quality consciousness and value addition wisdom of the local people.
Role of Government
In Japan, there is no such OVOP program or project implemented by the Central Government. There are only some Prefectural Governments which supports OVOP. OVOP was initiated 10 autonomously in 58 cities, towns and villages of Oita Prefecture . In the year of its introduction, the number of OVOP products throughout the prefecture was 143, but 20 years later the figure had increased more than two-folds to 336. OVOP wasn't always met with success, and there were many trials and errors along the way. Yet, no matter how unpromising things seemed, the Prefectural government never attempted to provide subsidies for OVOP regions because they feared that such assistance would only hamper self-reliance and prevent lasting success of OVOP. Instead, the government assisted in product development and distribution. Through the establishment of institutions such as Agricultural Technology Centre, Mushrooms Research and Guidance Centre, Livestock Experimental Station, and Institute of Marine and Fisheries Science, the government offered guidance in production and processing technology. Distribution routes were opened and expanded by the efforts of the Prefectural government and the then governor Mr. Hiramatsu himself, who organised numerous fairs in major Japanese cities and abroad, where he personally advertised Oita's prospective products. Also, regional markets were set up throughout Oita to encourage local consumption of OVOP products. Moreover, groups and individuals with outstanding achievement in OVOP were honoured with rewards.
there were 1,991 graduates, and they were all actively involved in OVOP in their respective regions and sectors. Training schools that were exclusively designed for each industry, such as Agricultural Training School, Commerce School, International College, Environment School, IT Academy and OVOP Women's 100 Member Group, were also established to nurture leaders in a wider range of fields
Conclusion
The OVOP program started 30 years ago in a small village of Oita Prefecture, Japan as a community centered and rural economic development program now has been reached to different countries of Asia, Africa and Latin America. This program has given a good lesson of utilisation of local resource, local skills and local leadership in order to revitalise the poor condition of the village community. It has emphasised on self-reliance and creativity whereas attempt to discouraged the dependency nature. The OVOP in Japan is a cooperative, village or district level movement but not a central government program. Now, OVOP is not officially supported by Oita Prefectural Government. The local people of Towns and villages themselves are responsible for promoting OVOP with their own fund. The success of failure of the program depends upon the commitments and dedication of the local community. Identification of potential local resources, utilisation of local skills to promote the globally accepted products is the main theme of the OVOP Japan. The equation of local resource and local skills utilisation generates local pride creating Independence mentality amongst the local communities. This philosophy of OVOP Japan is equally applicable to Nepal also in order to sustainable development of OVOP Nepal.
Role of Leaders
OVOP's ultimate goal is fostering global-minded, challenging leaders, 11 who could drive OVOP into further success . Regions that have successfully adopted OVOP in the past all had such leaders at the frontier. A number of regional training schools have been founded to educate potential leaders and students of these schools usually work by day and study by night. By 2002, 10 years after the schools first opened,
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Now OVOP is not officially supported by Oita Prefectural Government. Towns and villages people themselves promote OVOP with their own fund. It is up to them to continue OVOP or not. 11 Hiramatsu (2001) OVOP Movement, http://www.ovop.jp/en/ison_p/gaiko.html 5
Since the OTOP idea was borrowed from Oita, Japan where village community is the focal point of the movement but, in the case of Thailand, it is a national perspective. In other words, OTOP is a national development policy of the Thai Government. Government announces poverty war and made policy to promote OTOP to confront the most alarmed problem of poverty. The contribution of Japan External Trade Organisation (JETRO) was very worth to promote OTOP in Thailand at its early stage. JETRO launched a one-year programme to support Thailand's development of OTOP and promote OTOP products in the Japanese market from January to December 2002. The targeted industries include textiles, wooden products, baskets, ceramics and mulberry papers. In conducting this programme, JETRO has coordinated with the OTOP committee, Department Export Promotion, and other related organisations in Thailand and Japan.
To strengthen and revitalise local community to be self-reliance in area of local development To promote local wisdom To promote human resource and human capability, especially in developing local products in accordance with traditional ways of living and cultures To promote creativity base on local way of life and culture Special Features The OTOP has attempted to discourage the government subsidy policy. The principle of this process doesnt emphasise about subsidy to a locality because it destroys self reliance ability. Government supports technique for developing quality of product. In marketing thought establish One Product Corporation for a way to spread products to market.
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set pals and strategies. It is also responsible to develop OTOP database and create information system with parties involved in the OTOP project. It is also responsible for monitoring and evaluation of the project. 2. Production Promotion Sub-Committee This sub-committee works for entire development of OTOP products. Fostering the quality enhancement, factor of production development, improvement of production process (value addition factors), promotion of local content usage are the major functions of the sub-committee. 3. Marketing Promotion Sub-Committee This committee is formed for the promotion of OTOP products marketing in domestic and international markets. It lay down marketing policies, action plans and marketing directions. It is also responsible for identification of distribution channels. Finding appropriate locations for the setting up of domestic and international distribution outlets is another important function of the sub-committee. Besides that, protecting intellectual property of the OTOP products is another responsible task of the sub-committee. 4. Product Standard and Quality Development Sub-Committee This sub-committee particularly deals in quality matters. The subcommittee foster facilities and provides guidance promoting product standard and quality enhancement. This includes giving advices on production techniques and product upgrading methods. 5. Regional/Provincial Sub-Committee The regional level sub-committee formulates policies and plans essential for the promotion and strengthening of local community. It works for strengthening of the producer's competitiveness through promotion of communities' network. It also helps enhancing producer's knowledge, skill, and expertise.
OTOP Promotion
The OTOP has set up different activities to promote the project. They are OTOP Registration, OTOP City Fair, OTOP Product champion (OPC), Regional OTOP Fair, Entrepreneurship Development, Young OTOP Camp, Knowledge-based OTOP, OTOP Village Champion (OVC), OTOP Midyear Fair, and OTOP Tourism Village. These activities has been extended for registration of potential OTOP producers and the products, publicity and domestic market promotion, awarding STARS based on quality of the products, business promotion and value addition through, creation of knowledge based OTOP network that includes producers, government agencies, private sector and educational institutions, development of tourism in potential villages.
OTOP Registration There are three different types of producers group registered under OTOP Registration Year 2010 (Table 3). They are Community Occupation group; One-Person Owner group; and Small and Medium Enterprises (SMEs) group and registered producer groups whereupon 33,228 groups are involved.
Types of OTOP
For product selection, there is no hard and fast rule or restriction in OVOP program. Any type of products like commodity, services, local culture, ways of life, tourism, traditions etc could be a potential product of OVOP. The selected product have local essence or not; local skills have been utilised or not, demand driven or not, globally acceptable or not, are the most important factor to be considered. Considering all these factors, OTOP has been extended in different sectors as under:
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Similarly, a total of 85,173 products have been developed under different categories registered in 2010. (Table 4) The products promoted by OTOP come under 5 different categories. They are food, beverage, fabric and dressing wear, furnishing, decoration and souvenir and herbal products.
product unable to attain 2 stars due to its many weakness and difficulty for development.
Souvenir
Quality Assurance The product evaluation for branding of the products is done by the 14 OTOP National Administrative Committee and the Ministry of Interior . Community groups, SMEs and individual entrepreneurs must register their products to participate in this contest. Only one product can be submitted by each producer. The general evaluation criteria for the contest are: The product is exportable and has a brand quality, Production can be sustainable and with consistent quality, The product can provide customer satisfaction, and The product has an impressive background story. The grading of each product is made at various administrative levels according to established official procedures. First, product quality will be scored for up to 30 points at the local level. Second, the marketing capability measured by the number of obtained markets and the period of group activities will be scored for up to 30 points. Finally, up to 40 points will be scored at the national level by the use of same criteria of quality and marketing. The five-star certificate is granted only to the product having more than 90 points and qualified as good quality and exportable (Table 5).The product scoring 80 to 89 points is branded as 4 Starred products which means a fairly good quality, nationally recognised and make exportable upon further improvement. One star product is defined as a
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OTOP Product Champion Based on the score, 10,982 products have got star certificate as of OTOP Product Champion (OPC) Year 2000 in Thailand (Table 6).
Kiyoto Kurokawa, Fletcher Tembo and Dirk Willem (2008) Challenges for the OVOP movement in Sub-Saharan Africa, ODI Working Paper 290. 11
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S a le sinT h a iB h a t
The philosophy of OTOP is entirely based on three fundamental principles of Oita movement. The program has focused on skill development, creation of unique products and promotion of market. The OTOP has extended in products, services, local culture (ways of life), tourist locations, and traditions sectors. OTOP in Thailand is a national agenda for economic development from the grass root. Therefore, the role of government including the prime minister is very significant. The stakeholders are very active and and work in an integrated way. The program has given top priority to the community, groups and local wisdom and utilised them very prudently. The participation of local community in the program is very encouraging. The competent government field workers work for the program. Similarly, they are conscious about quality and competitiveness. As a result, they have promoted different OTOP branded products in domestic as well as in the international market. Finally, OTOP of Thailand could be concluded as a successful program.
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Conclusion
The OTOP Program was launched a decade ago in Thailand. The former Prime Minister of Thailand, Thaksin Shinawatra launched OTOP in 2001. Since the OTOP idea was borrowed from Oita, Japan where village community is the focal point of the movement but, in the case of Thailand, it is a national perspective. In other words, OTOP is a national development policy of the Thai Government.
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Initiation
The success of OVOP program in many countries including Thailand has inspired the Federation of Nepalese Chambers of Commerce Industry (FNCCI)-an umbrella organisation of the Nepalese private sector to initiate OVOP in Nepal in a form of national prioritised program. The FNCCI had discussed and dialogued with different
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Ministries in order to launch the OVOP program in Nepal. The Ministry of Industry, Commerce and Supply (MoICS) now The Ministry of Industry was also making its best effort to compliment OVOP program through the possible technical and infrastructural supports from the Government of Japan under its Aid-For-Trade initiatives. In 23rd March, 2006 a meeting was held at Ministry of Agriculture and Cooperatives (MoAC) in the presence of the Minister and the Secretary of the MoAC, President of the FNCCI, Executive Director of Agro Enterprise Centre (AEC)/FNCCI, and the under secretaries to discuss on the concept note about launching OVOP program in Nepal prepared by AEC/FNCCI. It was suggested At the same time, a suggestion was also made to form a working task force under the chairmanship of the President of FNCCI for the implementation of the program. AEC/FNCCI in coordination with Joint Secretary of the Agro Business Promotion and Statistics Division, Directorate of Fisheries, National Citrus Development Program has worked out in detail on product development like Junar (Sweet Orange), Lapsi (Hug Plum), Rainbow Trout, and Bel (Stone Apple) to be promoted in OVOP program. On 14th of May, 2006, a meeting of the High Level Committee of MoAC under the chairmanship of Honorable Minister for Agriculture and Cooperatives took place. The Secretary of MoAC, MoICS, Ministry of Local Development (MoLD), Joint Secretaries, Third Vice President of FNCCI, Chairman of AEC Board, and Executive Director of AEC/FNCCI were present in the meeting. The Committee has principally agreed to implement OVOP program as proposed by FNCCI. It has decided that the High Level Committee of MoAC would direct the program at a policy level and a proposed Working Committee.
During the period of 5 years, the program has basically focused on production and marketing side. Different agriculture inputs and technical training had been provided to the producers for the extension of the production area as well as quality production. Similarly, different inputs and technical training had been given to improve market and marketing system development.
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are shown in
Junar (citrus Sinesis (L) Osb) Junar is a typical fruit of Nepal which is also know as sweet orange (tight skin) (Figure 6). Its botanical name is Citrus Sinesis (L) Osb. Lapsi (choeropondias axillaries) Lapsi is a unique fruit of Nepal which is rarely found in other countries (Figure 7). The botanical name is Choeropondias axillaries. The other familiar name is mombin or hug plum.
OVOP Programme
OVOP in Nepal is a Public Private Partnership (PPP) based program which was officially launched in July 17, 2006 for 5 years as a pilot project. The program in its first year with 4 products has extended in 7 districts. In the second year of its operation, the program has been extended in two new additional districts with new products. Similarly, in the fourth year, the program was successful to introduce two new products in two additional districts. By the end of five year of its operation, 8 products in 11 districts have been extended.
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Bel (aegle marmelos (Linn) correa) Bel is a wild fruit of Nepal having plenty of Ayurvedic values (Figure 8). It is also known as stone apple or golden apple. The botanical name is aegle marmelos (Linn) correa.
Objectives The main objective of the program is to alleviate poverty in local community and to benefit local producers and the business enterprises through promotion of demand driven and export potential local products utilising local resources and the local skills. Other specific objectives include: Quality and Commercial Production Value Addition Brand Promotion Internal and External Market Promotion Overall Economic Development Theses objectives are based and designed on the 3 fundamental principle of OVOP Japan. Working Modality The OVOP in Nepal is a PPP based program. Therefore, the program implementation part is divided into production and marketing sectors. FNCCI as a private sector takes care of market promotion activities whereas the government sector looks after production side. Planning Process Figure 2 represents the planning process of OVOP in Nepal. Since the program is new in Nepal, the planning process is based on top down process in the preliminary stage. For example, products have been selected jointly by the government and the FNCCI in the beginning year. However, the product have selected by the technical experts on the basis of localness, uniqueness, market demand and export potentiality. Later, bottom up planning process has been exercised. The annual program is prepared by the related District Committees in consultation with local producers, local enterprises, related local government organisation and other stakeholders on the basis of budget ceiling given by AEC, the Secretariat of OVOP. The proposed annual program is forwarded to AEC for review. The AEC will examine the proposed program, budget and the activities at length and returned back to the concerned District Committee to make more comprehensive and effective if necessary with suggestions. Then, AEC will present the proposed annual program to the Central Committee for rectification. The rectified program will be forwarded to the Planning Division of MoAC for final approval.
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Working Procedures For execution of OVOP in Nepal, an especial working procedure called Ek Gaon Ek Utpadan (OVOP) Karyekram Karyanoyen Karyebidhi has been developed which was amended in 2007. This is an official document as a guideline to implement OVOP in Nepal. The working procedures have been drafted by AEC and finally passed by High Level Committee of MoAC in 2006.
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Ganesh Shakya, OVOP: Lokta Handmade paper in Rising Nepal, 2 June 2009
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Ganesh Shakya, Cymbidium Orchid Farming in Kathmandu Valley, in Rising Nepal, 28 August 2009 17
Local Producers
Organisation Joint Secretary - Agri Business Promotion and Statistics Division, MoAC
OVOP Working Procedures 2006/07 OVOP Working Procedures 2006/07 20
Portfolio Coordinator
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2 3 4 5
Representative Planning Division, MoAC Representative Ministry of Industry Representative Ministry of Local Development Executive Director
OVOP Secretary. The committee can propose for additional program with justification based on local communitys demand. The committee is responsible solving any kinds of problem arises in the field level. Keeping transparent accounts, reporting of the monthly, trimester, and annual report is the duty of the committee. It organises fairs and exhibition in the district and also participate in the inter district fairs and exhibition to promote the OVOP products. The committee also does the monitoring and evaluation of the programme and responsible for making necessary improvement. It works closely with DADO to facilitate local producers in production side.
The sub-committee does the program budget expenditure management as approved by the central committee. Rectifying the proposal made by the OVOP Secretary relating to adjustment of budget and to facilitate easy operation of the program is one of the functions of the sub-committee. It has right to examine financial progress report and book keeping. It works for fast releasing of budget and keep transparent. Similarly, it urges for timely auditing of annual budget program and submits the report to the central committee. District OVOP Program Implementation Committee This is a core committee formed in district level to implement the program in the OVOP launched district. This is a five member committee headed by the president of District Chamber of Commerce 20 and Industry (DCCI) as a coordinator (Table 11) . The chief of the District Agriculture Development Office (DADO) represents the committee as a sub-coordinator. The planning officer of District Development Committee and two other persons from related organisations represent as a member of the committee.
Programme Partners
Since OVOP in Nepal is a PPP based programme, it has different partners in both public and private sectors. Government Partners There are 5 government stakeholders in central level involving directly in the program (Table 12). They provide technical support to the producers. The program formulates the annual program and allocates the budget which follows the same process to get approval as described above.
This committee is sole responsible for execution of the program in local level. The committee prepares the annual budget and program and submits to the OVOP Secretary to get approval. It also works as a coordinator between the local producers/business entities and the
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Private Sector Partners Similarly, there are three different private sector partners involved in the program (Table 13).
Directorate monitors the field regularly and gives necessary advice to solve the farmer's problem. Beside that, it produces different technical manuals and distributes to the farmers. 5. Directorate of Post Harvest Management This Directorate is responsible for providing technical aid to the farmers relating to post harvest management. It gives on the spot practical training to the farmers on grading and packaging. 6. Fisheries Development Division (NARC) The Fisheries Development Division of NARC is responsible for undertaking different study on trout fish. This organisation identifies the potential location for trout farming. It helps providing training to the farmers on and about trout feed production, disease control and appropriate trout farming system. It also produces different technical manual and literature for appropriate trout farming system and distributed to farmers. It does regular field supervision and advice the farmers for improvement. 7. District Agriculture Development Office (DADO) DADO is responsible for preparing annual production program, mobilisation of its technical staffs to help farmers, reporting of the program, collection and compilation of production statistics, budget mobilisation, and field supervision in close coordination with District OVOP Program Implementation Committee. 8. Agriculture Service Centre (ASC) The technicians of the centre supervise the field, advice what, when and how to do better farming. 9. Federation of Nepalese Chambers of Commerce and Industry (FNCCI) FNCCI is the prime partner of the program from private sector. This organisation does policy advocacy, meeting and interaction with related Ministry for the extension of the program in new areas. 10. Agro Enterprise Centre (AEC) AEC is the secretariat of the OVOP program. It is solely responsible for implementing the overall program. Preparation and to get approval of annual budget and program, budget releasing to the concerned district and implementing the program are the major function of the AEC. It undertakes different study like feasibility study, impact study, evaluation study and many more as per need. It organises national level fairs and exhibition to promote the OVOP products in the
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national and international market and works for brand promotion. Identification of new product and new the district is the duty of AEC. Organising committee's meeting, present the periodic and annual progress report to the Central Committee and carry out the activities as instructed by the Committee is the duty of AEC. It appoints the auditor as approved by the Central Committee and finalises the audit report and submits to the Central committee. Publicity is another important function of the AEC. It publishes reports, product-wise technical manuals, brochures, booklets etc. and distributes widely. The AEC suggests making amendment in the working procedures as and when needed. It also organises press conference to acknowledge the status of OVOP program nationwide. It establishes coordination among all the stakeholders of the program. 11. District Chamber of Commerce and Industry (DCCI) The president of the DCCI is the coordinator of the District OVOP Program Implementation Committee (DOPIC). Preparing annual budget and program in coordination with the DADO and the local community, getting approval from the OVOP Secretary, and the implementation of the program in the district are duties of the DOPIC. Besides that, it organises as well as participates in different fairs and exhibition to promote its product. It is also responsible to keep transparent book keeping of the program. The DOPIC can request the OVOP Secretariat for additional activities with justification which is not included in the approved annual program. It prepares periodic and annual progress report and submits to the OVOP Secretary. For extension and marketing promotion, DOPIC extends the publicity works through different media. It does regular supervision of the field for better implementation of the program.
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Shiva Kumar Upadyaye and the Study team, Evaluation Study of One Village One Product program in Nepal, July 4, 2011 26
Most of the commodities selected in pilot programme are indigenous types that have high potentials for expansion in Nepal due to the suitability of climatic condition. All commodities have strong market demands both in internal and external markets. The programme is properly endorsed by the government in its policy and development level documents for its proper implementation. The programme can be implemented in a highly inclusive manner and for supporting to reduce rural poverty. The programme by its nature involves a large number of primary and direct beneficiaries. However, there are weaknesses as follows . Local resource, local skills, local leadership and the local pride are the most important factors of OVOP Japan philosophy which is not well addressed in Nepal Production and marketing (Quality improvement, Value addition, Enterprise development, Cooperatives, market promotion etc) has to be developed side by side but the focus on marketing side is least Dependent on Government Budget Lack of sufficient subject matter specialists Delay in decision making process Delay in budget release Limited budget, increasing demand for new products in new districts Delay in brand promotion
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Conclusion
OVOP Nepal is a part of national agenda pertaining to poverty alleviation. The programme was designed more or less based on three fundamental principles of Oita movement. Identification of potential local products, value addition, branding and the market promotion are the major objectives of the programme. The OVOP in Nepal is a PPP based programme. MoAC (government programme) and FNCCI (private sector) is the major partner of the programme. The programme is funded by the government. Different line agencies under MoAC provide extension services to enhance production whereas the AEC is responsible for market extension. AEC is designated as OVOP Secretariat which is solely responsible for implementation of the overall programme in grass root level. The whole programme runs as per guidelines of OVOP Working Procedures which is made particularly developed for the implementation of the programme. The programme was started with 4 products in 7 districts. Within the period of 5 years, the programme has been extended in11 districts covering 8 products. The programme has supported the farmers with all the inputs required for orchard management and market promotion activities. With this supports, the quality of the products have been enhanced and the farmers are happy with fruitful returns. The programme is still working for brand promotion.
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Shiva Kumar Upadyaye and the Study team, Evaluation Study of One Village One Product program in Nepal, July 4, 2011 27
the most important things to be considered while identifying the products. The central government of Japan does not interfere in village development activities. Only the local government assists in institution development, market facilities development and honoured the groups and individuals with rewards. The role of leaders is also equally important. They educate potential leaders through regional training 23 schools . In Thailand, the OTOP is one among several other projects of Thai Government. The philosophy of OTOP is based on fundamental principles of OVOP Japan. The OTOP aims at empowering the local villages with capacity enhancement of the local people and develop one unique product of their own. OTOP is said to be a successful community development programme of Thailand. The Thai Government has developed OTOP as a national agenda. The role of Thai Government to promote OTOP is significant. The OTOP has been extended in 70,787 villages including Bangkok. The programme has been implemented in integrated manner. As a result the OTOP product is now famous not only in Thailand but also 24 in abroad . At a time when OVOP is spreading widely in Asian countries, a thought of OVOP programme development in Nepal was evolved. FNCCI the apex body of private sector took initiation for launching of the programme in Nepal earlier to 2006. Finally, the government of Nepal officially launched OVOP programme in Nepal in 2006. Since Nepal is one of the poorest countries of the world and poverty alleviation is one of the prime challenges to the government. In this context, OVOP programme could be a best tool for alleviating rural poverty. Besides that there are many local resources, cultural traditions and events that could be developed within OVOP concept. This is reason why Nepal introduced he programme. The main objective of the programme is to alleviate poverty in local community and to benefit local producers and the business
enterprises through promotion of demand driven and export potential local products utilising local resources and the local skills. OVOP in Nepal is a PPP based programme. Private sector takes care of market promotion activities whereas the government sector looks after production side. Different activities have been undertaken to enhance production and marketing of the selected products within the period of 5 years. The programme is successful in quality and packaging improvement to some extent. The programme has been extended in the 11 districts which were initially started in 7 districts. But, this is not enough. There are still many challenges the programme has to face. Local resource, local skills, local leadership and the local pride are the vital elements of OVOP Japan philosophy which is not well addressed in OVOP Nepal. Marketing aspect has been given least attention as compared to production side. The existing cooperatives and farmer groups are not active enough. The community is more dependent on government budget. Delay in budget release, decision making and brand promotion are big weaknesses. The budget allocated by the government is not enough to fulfil the increasing demand for new products in new districts. Most of the local people are not yet cleared of the concept of OVOP. They thinks OVOP is simply a just another agriculture project because most of the products selected under OVOP programme are agriculture products which is not the concept of OVOP Japan. In addition to agricultural products, anything products like handicrafts, cultural programme, and tourism could be the product of OVOP. This message should be extended throughout the country through extensive campaigning. Finally, it is up to the local people whether to develop the programme in sustainable way or not which is not possible without their commitments.
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Oita OVOP International Exchange Promotion Committee, OVOP Movement: Fruits of OVOP, at http://www.ovop.jp/en/ison_p/seika.html 31
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Year
Characteri stics
148 building facilities 133 cultural activities 111 rural development activities 80 conservation activities Encouragemen t oriented Local government led Community development Various products (eg. football team) Any individuals and groups can participate
Production and marketing oriented Central government led Cottage industry development Handicrafts and processed foods Any individuals and groups can participate
Responsib le body
Main actors
Cooperatives Leader farmers Community leaders (mayor etc) Local extension /research (2002) 338 agricultural products
Local CCI DADO Farmer groups / cooperatives Technical offices About 4,000 producers
Several villages with strong leadership and commitment were commercially successful
Production and marketing oriented Central government and FNCCI led Agricultural development Agricultural and forest products Districts and villages with potentials selected Production is increasing and marketing development in progress Coffee exported to Japan US$ 0.4 million (2007) ? (assessment necessary)
Budget
Economic effect
? (Prefectural and village regular budget) US$ 1.7 billion for 338 agricultural products only (2010)
Dr Masahiro Kawamura (2010) OVOP Program in Nepal: Achievements, Issues and Future 33
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Figure 8 Bel tree, bel juice stock, bel fruits and bel squash
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Figure 9 Trout raceway, trout and trout for sale in Nuwakot and Rasuwa
Figure 10 Coffee nursery, coffee trees and processed coffee from Kaski and Syangja
Figure 13 Agro Tourism in Begnas Lake are (restaurant, fish pond, panoramic view)
Figure 11 Lokta farmer with Lokta shrubs, Lokta bark, and Lokta Hat
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