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2013 Knowledge Sharing Program with Uzbekistan 2013 Knowledge Sharing Program with Uzbekistan: Innovation Strategy for Agriculture and Industrial Technology MINISTRY OF STRATEGY AND FINANCE Korea Development Institute 2013 Knowledge Sharing Program with Uzbekistan 2013 Knowledge Sharing Program with Uzbekistan: Project Title Innovation Strategy for Agriculture and Industrial Technology Prepared by Korea Development Institute (KDI) Supported by Ministry of Strategy and Finance (MOSF), Republic of Korea Korea Development Institute(KDI) Prepared for The Government of Uzbekistan In cooperation with Institute of Forecasting and Macroeconomic Research, Republic of Uzbekistan Program Directors Hongtack Chun, Executive Director, Center for International Development (CID), KDI Program Officer Hyunyi Choi, Senior Research Associate, Division of Policy Consultation & Planning, CID, KDI Program Manager Taihee Lee, Director, Division of Policy Consultation & Planning, CID, KDI Senior Adviosr Se-Ik Oh, Former President, Korea Rural Economic Institute Authors Chapter 1. Kwang Suck Lee, Sungkyunkwan University Chapter 2. Kyung Ryang Kim, Kangwon National University Chapter 3. Seong Kwan Jang, Dep of Electronic Engineering Korea Polytechnic University Chapter 4. Woong Sae Choi, Dep of Electronic Engineering Korea Polytechnic University Government Publications Registration Number 11-1051000-000475-01 ISBN 978-89-8063-855-0 94320 978-89-8063-849-9 (set) Copyright ⓒ 2014 by Ministry of Strategy and Finance, Republic of Korea Government Publications Registration Number 11-1051000-000475-01 2013 Knowledge Sharing Program with Uzbekistan: Innovation Strategy for Agriculture and Industrial Technology MINISTRY OF Korea Development STRATEGY AND FINANCE Institute Preface In the 21st century, knowledge is one of the key determinants of a country’s level of socio- economic development. Based on this recognition, Korea’s Knowledge Sharing Program (KSP) was launched in 2004 by the Ministry of Strategy and Finance (MOSF) and the Korea Development Institute (KDI). KSP aims to share Korea’s experience and knowledge with the partner countries to achieve mutual prosperity and cooperative partnership. Former high-ranking government officials are directly involved in the policy consultation to share their intimate knowledge of development challenges, and to complement the analytical work of policy experts and specialists who have extensive experience in their fields. The government officials and practitioners effectively pair up with their counterparts in the development partner countries to work jointly on pressing policy challenges and share development knowledge in the process. The program includes policy research, consultation and capacity-building activities, all in all to provide comprehensive and tailor-made assistance to the development partner countries in building a stable foundation and fostering capabilities to pursue self-sustainable growth. In 2013, policy consultation and capacity building workshop were carried out with 36 partner countries covering over 140 research agendas. As a new partner country, Costa Rica, Belize, China, Russia, Hungary, Egypt were selected in consideration of the country’s policy demand, growth potential, and strategic economic partnership. 2013 marked the seventh year to conduct KSP with Uzbekistan, and the fourth year to conduct Strategic Development Partner Country (SDPC) KSP. Based on the written demand survey form as well as the discussion with the Uzbekistan government, the program entitled ‘Innovation Strategy for Agriculture and Industrial Technology’ was launched in August, 2013, focusing on the following four topics: A study of Production and Marketing for the Pilot Agro- Processing Industry Cluster in Uzbekistan, A Pilot Study for the Development of Agro-Processing Industry Cluster in Uzbekistan, Policy framework for building Techno Innovation Park, Strategy of improving competitiveness of SMEs (Small and Medium-Sized Enterprise) through industry- academic education program. I would like to take this opportunity to express my sincere gratitude to Senior Advisor Mr. Se Ik Oh, Project Manager Mr. TaiHee Lee, as well as the project consultants including Prof. Kyung Ryang Kim, Prof. Kwang Suck Lee, Prof. Seung Kwan Jang and Prof. Ung Sea Choi for their immense efforts in successfully completing the 2013 KSP with Uzbekistan. I am also grateful to Executive Director Dr. Hong Tack Chun, and Program Officer Ms. Hyunyi Choi, and all members of the Center for International Development, KDI for their hard work and dedication to this program. Lastly, I extend my warmest thanks to the Uzbek’s counterparts, the Institute of Forecasting and Macroeconomic Research of Uzbekistan and other related agencies, program coordinators, and participants for showing active cooperation and great support. In your hands is the publication of the results of the 2013 KSP with Uzbekistan. I believe that KSP will serve as a valuable opportunity to further elevate mutual economic cooperation of Uzbekistan and Korea to a new level. I sincerely hope the final research results on the selected areas could be fully utilized to support Uzbekistan in achieving economic development goal in the near future. Joon-Kyung Kim President Korea Development Institute Contents 2013 KSP with Uzbekistan ……………………………………………………………………………………… 017 Executive Summary ……………………………………………………………………………………………… 022 Chapter 1 A Pilot Study for the Development of Agro-Processing Industry Cluster in Uzbekistan Summary ………………………………………………………………………………………………………… 032 1. Introduction …………………………………………………………………………………………………… 035 1.1. Economic Transition and Agricultural Economy in Uzbekistan …………………………………… 035 1.2. Objective and scope of the study ……………………………………………………………………… 040 2. Agenda for the Development of Agro-processing Industry in Uzbekistan …………………………… 041 3. Clustering Agro-processing Industry ……………………………………………………………………… 044 3.1. Basic Principles of Agro-clustering …………………………………………………………………… 044 3.1.1. Development of cluster concepts ……………………………………………………………… 044 3.1.2. Definitions and characteristics of clusters …………………………………………………… 045 3.1.3. Porter’s Diamond Model for developing countries ………………………………………… 046 3.2. New Paradigm of Agro-Food Policy in Korea ……………………………………………………… 049 3.2.1. National Food Cluster …………………………………………………………………………… 049 3.2.2. Special Zone for Agro-processing ……………………………………………………………… 050 3.2.3. Emerging Senary Industry ……………………………………………………………………… 051 3.3. Selected Cases of Agro-processing Clusters in Korea ……………………………………………… 054 3.3.1. Cheongdo Persimmon Cluster ………………………………………………………………… 054 3.3.2. The Senary Industry in Munkyung …………………………………………………………… 057 References ………………………………………………………………………………………………………… 077 . Chapter 2 Agriculture and Marketing Development for Agro-Processing Pilot Cluster in Uzbekistan Summary ………………………………………………………………………………………………………… 080 1. Introduction …………………………………………………………………………………………………… 082 1.1. Background of the Study ……………………………………………………………………………… 082 1.2. Purpose of the Study …………………………………………………………………………………… 084 2. Support Systems for Agro-Processing Cluster Pilot Projects …………………………………………… 084 2.1. The Need to Strengthening Agro-Processing Clusters ……………………………………………… 084 2.2. The Concept of Agro-Processing Cluster Development …………………………………………… 087 2.3. Postharvest Management Support System for Agro-Processing Clusters ………………………… 089 2.4. Situation Analysis for Implementation of Agro-Processing Clusters in Uzbekistan …………… 090 2.4.1. Organization of Production …………………………………………………………………… 090 2.4.2. Establishment of Postharvest Management System ………………………………………… 090 2.4.3. Agricultural Processing ………………………………………………………………………… 091 2.4.4. Establishment of an Efficient Marketing System …………………………………………… 091 3. Support System for Agro-Processing Clusters in Korea ………………………………………………… 092 3.1. Organization of Production …………………………………………………………………………… 092 3.2. Agricultural Marketing and Distribution System …………………………………………………… 094 3.2.1. Characteristics and Features of the Agricultural Marketing………………………………… 095 3.2.2. Changes in Distribution Channel ……………………………………………………………… 098 3.2.3. Changes in Agricultural Marketing Policy …………………………………………………… 101 3.3. Post-Harvest Management System Support for Agro-Processing Clusters ……………………… 103 4. Establishment of Support System for Ago-Processing Pilot Cluster in Uzbekistan …………………… 106 4.1. Agriculture in Samarkand ……………………………………………………………………………… 106 4.2. Selection of Pilot Clustering Project Areas …………………………………………………………… 108 4.3. Organization and Structure of Tomato Production in Bulungur District ………………………… 110 4.3.1. Current Situation in Bulungur District ………………………………………………………… 111 Contents 4.4. Organization and Structure of Apple Production in Jambay District …………………………… 115 4.4.1. Current Situation in Jambay District …………………………………………………………… 116 5. Suggestions for the support of Agro-Processing Pilot Clusters in Uzbekistan ………………………… 119 5.1 Ensuring stable supply of products …………………………………………………………………… 120 5.2. Enhancement of Production and Productivity ……………………………………………………… 120 5.3. Contract Farming, Credit Access and Processing …………………………………………………… 120 5.4. Enhancement of Postharvest Management Practices ……………………………………………… 121 5.5. Value Addition and Expansion of Market Access …………………………………………………… 121 5.6. Ensuring Food Safety and Quality …………………………………………………………………… 121 5.7. Human Resource Development ……………………………………………………………………… 122 5.8. Expansion of Investment in Infrastructure …………………………………………………………… 122 References …………………………………………………………………………………………………………
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