SDGs, Transformation, and Quality Growth: Insights from International Cooperation (Sustainable Development Goals Series)

This is an Open Access book. The primary objective of this book is to seek out insights into the concept of high-quality growth (HQG). It explores the essential attributes of HQG, such as inclusiveness, sustainability, and resilience, as well as its relationship with transformation, by drawing principally on illustrative cases and instances of international cooperation. The United Nations document on Sustainable Development Goals (SDGs) states that “We resolve to create conditions for sustainable, inclusive and sustained economic growth, shared prosperity and decent work for all.” As such, the concept of quality growth is inherent in many aspects of the SDGs. A similar approach can be seen in the Development Cooperation Charter announced by the Japanese government in 2015. According to the Charter, one of the most important challenges of development is quality growth and the reduction of poverty achieved through such growth. The approach in the Charter emphasizes inclusiveness, sustainability, and resilience. This volume is a pioneering study on quality growth as well as its relationship with SDGs and transformation. Comprehensive studies on quality growth are very few. The case study approach distinguishes the present volume from some previous literature that discussed quality growth within the framework of general policy. Instead, in this book, concrete cases and experiences provide insights into hands-on “ingredients”. Through the case studies, it can be seen more clearly that transformation and quality growth are phenomena that do not occur automatically but, rather, ones that require specific, properly designed strategies and approaches. Another unique feature of this book is that it aims to make explicit some of the consistent, but implicit, principles of Japan’s international cooperation. Foreword Acknowledgements Contents About the Author 1 SDGs, Transformation, and Quality Growth: An Overview 1.1 Key Attributes of Quality Growth and Its Definition 1.2 Dimensions of Transformation and Its Definition 1.3 How Transformation Takes Place and What Triggers It 1.4 The Case Studies Approach 1.5 The Organization of This Volume and Its Main Pillars 1.5.1 Strategies for Transformation and Quality Growth 1.5.2 Industrial Development and Transformation: Insights from Outstanding Cases 1.5.3 Learning Capacity for Quality Growth 1.5.4 Transforming Economies for Jobs and Inclusive Growth 1.5.5 Addressing Challenges of Urbanization for Quality of Growth 1.5.6 Quality Growth Focusing on Environmental Sustainability 1.5.7 Quality Growth Focusing on Resilience to Disaster Risks 1.6 Closing Remarks 1.6.1 From Diagnoses to Actions 1.6.2 Synergies, Tradeoffs, Priorities, and Sequences 1.6.3 Quality Growth Strategy for Each Context References 2 Strategies for Transformation and Quality Growth 2.1 Key Issues from an Analytical Perspective 2.1.1 Overview of Transformation and Quality of Growth in East Asia, Latin America, and Africa 2.1.2 Transformation and Changing Endowments 2.1.3 Virtuous Circle of Endowments, Transformation, and Quality Growth 2.2 Strategies for Enhancement of Essential Endowments for Transformation and Quality Growth 2.2.1 Strategy for the Enhancement of Learning Capacity 2.2.1.1 Case 2.1: Effective Approaches Toward Improvement of the Quality of Education in Science and Math Education 2.2.1.2 Case 2.2: Effective Approaches to Strengthening Capacity to Learn to Learn by Learning by Doing 2.2.2 Strategy for Investing in Quality Infrastructure 2.2.2.1 Case 2.3: Effective Approaches to Constructing Quality Infrastructure: Michinoeki 2.2.3 Strategy for Strengthening Institutions 2.2.3.1 Case 2.4: Effective Approaches to Strengthening Institutions that Facilitate Participation of Small and Medium Enterprises in Industrial Development 2.3 Strategies to Catalyze Transformation and Quality Growth 2.3.1 Strategy for Catalyzing Sequential or Catching-Up Transformation 2.3.1.1 Case 2.5: Effective Approaches to Facilitate Regional Networks and Integration Through Development Corridors 2.3.2 Strategy for Transformation Through Integration into Global Value Chains 2.3.2.1 Case 2.6: Effective Approaches for SME Participation in GVC Through Expansion of Supporting Industries 2.3.3 Strategy for Innovation-Led Transformation 2.3.4 Strategy for Inclusive Business–Led Transformation 2.3.4.1 Case 2.7: Effective Approaches to Catalyzing Local Transformation Through Inclusive Business 2.4 Conclusion 2.5 Further Discussion 2.1: Overview of Recent Trend of a Consensus on the Importance of Transformation and Quality of Growth in East Asia, Latin America, and Africa 2.6 Further Discussion 2.2: Transformation and Quality of Growth from Capital Assets Accumulation Perspective References 3 Industrial Development and Transformation: Insights from Outstanding Cases 3.1 An Analytical Perspective 3.1.1 Change of Endowments and Dynamic Comparative Advantage: The Focus of Industrial Strategy 3.1.2 Leading Industries, Economic Transformation, and the Role of Government and Institutions 3.1.3 Typology of Industrial Development and Transformation Challenges 3.1.4 Research Questions for Case Studies 3.2 Case Studies 3.2.1 Case 3.1: Thailand’s Automobile Industry 3.2.1.1 Accumulation of Knowledge and Capabilities, Prerequisite for Development of an Automobile Industry 3.2.1.2 Formation of Automobile Clusters and Industrial Estates 3.2.1.3 Eastern Seaboard: Infrastructure that Triggered the Rapid Expansion of Thailand’s Automobile Industry 3.2.1.4 “Detroit of Asia” Vision 3.2.1.5 Institutions that Facilitated Changes of Endowments 3.2.1.6 Other Factors 3.2.1.7 Summary of the Industrial Development Process 3.2.1.8 Challenges Toward Further Transformation 3.2.2 Case 3.2: Cerrado Agriculture and Agro-Industry Value Chains in Brazil 3.2.2.1 Change of Endowment by Technological Innovation, Achieving “A New Comparative Advantage” 3.2.2.2 Accumulation of Knowledge and Capabilities 3.2.2.3 Institutions that Facilitated Changes of the Endowment 3.2.2.4 Summary of Agricultural Development Process 3.2.3 Case 3.3: Bangladesh Garment Industry 3.2.3.1 Learning, Accumulation of Knowledge, and Capabilities 3.2.3.2 Change of Endowments: Rural Development and Mobilization of Female Workers with Low Opportunity Cost 3.2.3.3 Change of Endowments: Connectivity and Logistics Upgrading by Infrastructure 3.2.3.4 Institutions that Facilitated Garment Industry Development 3.2.3.5 Summary of the Industrial Development Process 3.2.4 Case 3.4: Chile’s Salmon Industry13 3.2.4.1 Change of Endowment by Technological Adaptation/Innovation 3.2.4.2 Learning and Accumulation of Capabilities and Knowledge 3.2.4.3 Institutions that Facilitated the Development of the Chilean Salmon Industry 3.2.4.4 Summary of the Development Process of the Salmon Industry 3.2.5 Case 3.5: Singapore 3.2.5.1 Human Resource Development and Accumulation of Knowledge and Capabilities 3.2.5.2 Institutions that Enabled the Process of Transformation 3.2.5.3 Summary of the Process of Development of Institutions for Accumulation of Knowledge and Capabilities 3.3 Concluding Remarks: Findings from the Case Studies 3.4 Further Discussion (3.1) 3.4.1 Catalytic Role of International Cooperation 3.4.2 Aid and Transformation Focusing on Inclusive Growth 3.4.3 Opportunities and Capacity Nexus for Inclusive Growth 3.4.4 Japan’s View and Experiences References Further Readings 4 Industrial Strategies and Learning Capacity for Quality Growth 4.1 Key Issues from an Analytical Perspective 4.1.1 Knowledge, Learning, and Transformation 4.1.2 Learning Society and Capacity Development 4.1.3 Learning for Specific Capacity and Learning to Learn for Enhancing Core Capacity 4.1.4 Determinants of Learning 4.2 Industrial Strategy and Effective Approaches for Learning 4.2.1 Research Questions 4.2.2 Learning for Inclusive and Innovative Growth 4.3 Cases of Learning for Specific Capacity 4.3.1 Case 4.1: Learning for Inclusive and Innovative Growth Enabled by Capacity Development of Small-Scale Farmers with Increased Responsiveness to Market Needs: Initiatives of SHEP in Kenya5 4.3.2 Case 4.2: Learning for Inclusive and Innovative Growth Through Capacity Development in Rural Infrastructure Development: Local Government Engineering Department (LGED) of Bangladesh7 4.4 Cases of Learning to Learn and Enhancing Core Capacity 4.4.1 Case 4.3: Learning for Inclusive and Innovative Growth Through Rural Livelihood Improvement (Seikatsu Kaizen) Programs in Japan and Developing Countries9 4.4.2 Case 4.4: Learning for Inclusive and Innovative Growth in Incubating Inclusive Business: One Village One Product (OVOP) Initiatives 4.4.3 Case 4.5: Learning for Inclusive and Innovative Growth Through Kaizen, Just in Time (JIT), Total Quality Management (TQM), and Beyond, in Japan, the United States, Thailand, and Other Countries 4.4.3.1 Experiences in Japan12 4.4.3.2 Quality Control Circles with Kaizen: An Effective Approach to Learning to Learn at the Front Line 4.4.3.3 Total Quality Management: An Effective Approach to Organizational Learning 4.4.3.4 Impacts of TQC/TQM and Creation of a Learning Enterprise 4.4.3.5 Experiences in the United States 4.4.3.6 Experiences in Thailand and Other Developing Countries 4.5 Concluding Remarks: Lessons from Case Studies 4.5.1 Easy Entry Points for Commencing the Learning Process 4.5.2 Low Cost and Low Risk 4.5.3 Learning by Doing, Mutual Learning, and Co-creation of Innovative Solutions, Strengthening Cognitive Skills and Capacity of Learning to Learn 4.5.4 The Impact of Learning on Innovative Solutions, Inclusive Business, Quality, Productivity, and Beyond 4.6 Further Discussion (4.1) 4.6.1 Kaizen, Learning, and Innovation for Quality Growth 4.6.1.1 Kaizen as a Participatory and Inclusive Approach 4.6.1.2 Kaizen, Learning, and “Genuine” Inclusive and Innovative Growth 4.6.1.3 Kaizen and Innovation 4.6.1.4 Kaizen and Sustainable Growth 4.6.1.5 Kaizen and Secure Growth 4.6.1.6 Summing Up References 5 Transforming Economies for Jobs and Inclusive Growth 5.1 The Imperative of Inclusive Development in Sub-Saharan Africa 5.1.1 Demographic Transition 5.1.2 Slow Transformation of the Economic Structure 5.1.3 Natural Resource Curse 5.2 Strategies for Inclusive Growth: The Asian Experience 5.3 Strategies for Inclusive Growth: A Case Study Approach 5.3.1 Strategy 1: Increasing Staple Crop Productivity 5.3.1.1 Case 5.1: Agricultural Sector Development Program and Related Initiatives in Tanzania 5.3.1.2 Case 5.2: The Coalition for African Rice Development Initiative 5.3.2 Strategy 2: Diversification of Agriculture to Include Higher-Value Crops and Enhancement of the Agro-Industry Value Chain 5.3.2.1 Case 5.3: Smallholder Horticulture Empowerment Project in Kenya 5.3.2.2 Case 5.4: Diversification Through Agroforestry in Semi-Arid Kenya 5.3.3 Strategy 3: An Industrial Strategy with Links to Agriculture Development 5.3.3.1 Case 5.5: Agricultural Development–Led Industrialization in Ethiopia 5.3.3.2 Case 5.6: Export Promotion in Kenya 5.3.3.3 Case 5.7: Introducing Kaizen into Sub-Saharan Africa 5.4 Concluding Remarks References 6 Addressing Challenges of Urbanization for Quality of Growth 6.1 Land Readjustment and Re-urbanization as an Approach to Making Cities Inclusive, Safe, Resilient, and Sustainable: Key Issues 6.2 Land Readjustment: Characteristics and Relevance for Urbanization in Developing Countries’ Quality Growth 6.2.1 Land Readjustment and Inclusiveness 6.2.2 Land Readjustment and Safety, Resilience, and Sustainability 6.3 Land Readjustment in Developing Countries: Case of Medellin, Colombia 6.4 International Cooperation for Land Readjustment 6.5 Concluding Remarks: Land Readjustment and Quality Urbanization References 7 Quality Growth Focusing on Environmental Sustainability 7.1 Sustainable Consumption and Production: Mainstreaming of the Circular Economy 7.1.1 Case 7.1: Enhancing the Circular Economy of the Automobile Industry 7.1.2 Case 7.2: Kaizen, TQM and Sustainable Growth 7.2 Strengthening the Green Economy: Sustainable Use of Terrestrial Ecosystem, Sustainable Management of Forests, and Reversal of Land Degradation 7.2.1 Case 7.3: Strengthening the Green Economy with Innovative Practices: Agroforestry in the Amazon Rainforest 7.2.2 Case 7.4: From Slash-and-Burn Farming to Sustainable Agriculture: Panama Canal Watershed Conservation 7.2.3 Case 7.5: Fight Against Desertification: Social Forestry in Semi-Arid Kenya 7.3 Natural Capital, Transformation, and Sustainable Growth 7.3.1 Case 7.6: Natural Capital, Transformation, and Sustainable Growth: The Case of Cerrado Agriculture 7.3.2 Case 7.7: Natural Capital, Transformation, and Sustainable Growth: The Case of Chile’s Salmon Industry 7.3.3 Case 7.8: JICA-JAXA Forest Early Warning System in the Tropics (JJ-FAST)9 7.4 Concluding Remarks References 8 Quality Growth Focusing on Resilience to Disaster Risks 8.1 Understanding Disaster Risks 8.2 Strengthening Disaster Risk Governance to Manage Disaster Risk 8.2.1 Case 8.1: Capacity Development for Disaster Risk Management in Central America: BOSAI Initiatives3 8.2.1.1 Central American Policy of Integrated Risk Management (PCGIR) and BOSAI Project 8.2.1.2 Understanding Disaster Risks and Capacity Development (CD) to Reduce Vulnerability 8.2.1.3 The Impact of the BOSAI Project in Reducing Vulnerability of Communities and Municipalities 8.2.1.4 Strengthening Disaster Risk Governance to Manage Disaster Risk 8.3 Investing in Resilience: “Build Back Better” in Recovery, Rehabilitation and Reconstruction Outline placeholder 8.3.1.1 Case 8.2: Technological Innovation and Capacity Development for Low-Cost Earthquake-Resistant Housing: Taishin Initiatives 8.3.2 Investing in Resilient Infrastructure for Resilient Cities and Human Settlements 8.3.2.1 Case 8.3: Project for Capacity Development of the Department of Climate Change Adaptation and Strategic Risk Management for Strengthening of Public Infrastructure: GENSAI Initiatives 8.3.3 Post-disaster Reconstruction to Enhance Resilience of Communities, Cities, and Society: Building Back Better Through Land Readjustment 8.3.3.1 Case 8.4: Reconstruction After the Great Hanshin-Awaji Earthquake and Great East Japan Earthquake and Tsunami Through Land Readjustment and Its Further Innovation 8.4 Sharing Knowledge and Innovative Solutions and Nurturing Human Resources for Disaster Risk Reduction 8.4.1 Case 8.5: Integrated Services Digital Broadcasting-Terrestrial (ISDB-T) and Emergency Warning Broadcast System (EWBS)10 8.4.2 Case 8.6: Disaster-Prevention Training with Earthquake Simulation Vehicles11 8.4.3 Case 8.7: Kizuna: Disaster Risk Reduction Training Program for Latin America and the Caribbean 8.5 Concluding Remarks References