South pacific business environment



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The University of the South Pacific

Graduate School of Business

Master of Business Administration Program

Promoting Sustainable and Responsible Business Practices

Course Outline for MBA 434

SOUTH PACIFIC BUSINESS ENVIRONMENT

Suva

Stathem ICT Park Campus

3rd Trimester 2011

Lecturers: Gyaneshwar Rao

Phone3232172

rao_gr@usp.ac.fj

Jim McMaster

Phone 323 1100

mcmaster_j@usp.ac.fj

COURSE LEARNING OPUTCOMES


This course aims to assist students to develop a thorough understanding of the business environment in today’s South Pacific. The course views the South Pacific from both a regional and an international perspective. Particular emphasis is placed upon the investment climate and upon strategies to promote economic growth, employment generation and private sector development.
Upon completion of this course, students should be able to:

  • Prepare and present a report that analyses and evaluates the economic growth strategy and prospects of a Pacific Islands economy. The report should analyse the main features of the economy and growth prospects of the main industries and sectors of the economy, trends in investment, employment generation, small business development, public and private sector reform and development, public financial issues, national debt and economic management of the economy, natural resource management, education and human resource capacity development, and health and social sector development.

  • Apply the techniques of cost-benefit analysis and the planning balance sheet approach to business investment decisions.

  • Analyse Pacific Island industries in terms of competition, industry structure, cost structure, growth performance, price leadership, competitive advantage, export performance, regulation, and technology and sustainability issues.

  • Prepare a feasibility study to select the optimal location for a foreign enterprise that plans to invest in an off-shore manufacturing plant in a Pacific Islands economy. This study will involve undertaking a comparative location analysis using multi-criteria analysis and a country risk assessment.

  • Undertake a risk analysis of a major business investment project such as a new multi-million dollar tourism hotel resort project in a Pacific Island.

  • Undertake a policy analysis study and review approaches to monitor and evaluate the effectiveness of current policies, policy instruments and alternatives.

  • Evaluate the effectiveness of current policies to promote small business development, entrepreneurship, and private sector development.

  • Review the role of business incubators and business online toolkits as measures to support small business development in the Pacific Islands.

  • Recommend a set of appropriate policy measures to promote green investment, exports and stimulate sustainable economic growth in the Pacific Islands.

  • Analyse the role of the World Bank, the Asian Development Bank (ADB), Commonwealth Secretariat, UNDP and the CROP Regional Institutions and make recommendations on how these organisations could be more effective in assisting the Pacific Islands

METHOD OF INSTRUCTION

The course is highly interactive between students and lecturer, as well as between students themselves. It demands active and ongoing participation by all. Students will work in teams to do the tutorial exercises.

ASSESSMENT

Assessment in this subject is based on the following elements:



Mid- trimester test. 20%.
Individual Topic Presentation 20%

Each student will make a 10 minute presentation using Powerpoint on one of the topics listed below.


Business Environment Analysis and Country Presentation, 20%

Groups will make a 20 minute presentation using Powerpoint on their assessment of the business environment in a Pacific Island Country assigned to their group.

Groups should analyse the business environment of the selected country and make a presentation using charts, diagrams, photos and illustrations. Reports should cover:


  • World Bank ease of doing business survey

  • Analysis of trade and investment opportunities

  • Country Economic Profile and Private Sector Structure and Performance

  • Economic Outlook for International Business

  • Review of the growth prospects of industries

  • Investment Promotion and Trade issues


Final Exams 40%

A final 3-hour exam will be held at the end of the trimester. The assessment measures will be based on the learning outcomes outlines above. Students must achieve a minimum of 40% in the final examination, (16/40).


Individual Presentation Topics and weekly Time Schedule
Each student will be assigned a topic to present to the class. The presentation will take the form of a mini-lecture and will be conducted over the period from week 3 to week 8. A powerpoint slide presentation should be prepared on the main issues to be discussed. Students should identify two questions for group discussion. The presentation should take about ten minutes and no longer than 15 minutes.
Week 3 Student Presentations

Role of Pacific Islands Forum Secretariat in relation to economic development, trade, investment and private sector development.

Role of the Asian Development Bank in promoting private sector development in the Pacific Islands

Role of the IMF and World Bank in the Pacific

Trust funds in the Pacific

Role of remittances


Week 4 Student Presentations

Investment Promotion Agencies in the Pacific

Pacific Island Trade and Investment Portals

Fiji Momi Bay resort development project

Fiji Natadola resort development project

Grand Pacific Hotel Suva project

Yaqara Film City tax free zone project
Week 5 Student Presentations

Mining in PNG

Virgin coconut oil and cosmetic products

Case Study; Pure Fiji

Future Forest Industries and Teak plantations in Fiji

Pacific Black Pearl Industry


Week 6 Student Presentations

Review of the Fiji Development Bank

National Centre for Small and Microenterprise Development in Fiji and other PIC small business centres: Lessons from experience.

ANZ Rural Banking and Microfinance in Fiji; Lessons from experience


Week 7 Student Presentations

Review of Business Incubators in New Zealand and Australia

Family businesses in Fiji

Ginger and agro processing in Fiji

Garment Industry in Fiji

Micro-brewery projects

Adventure and ecotourism projects
Week 8 Student Presentations

Case Study; Fiji Water

Case study; Pacific Green Furniture

Mining industry in Fiji including Namosi Copper Mine and Bua Bauxite mine development and lessons from the PNG Mining experience

Tutu project in Taveuni, young farmer settlement schemes
REQUIREMENTS

Please read the case studies and tutorial exercises before class and be ready to participate actively – to speak up, to ask questions, and to answer questions posed by the lecturer and other students.

Please attend each class. This is an intense, fast-moving course in which attendance is essential.

Work teams will be established and used throughout the course. As managers, you are expected to manage the team efforts so that every member participates to the full extent.

All presentations, whether verbal or written, should be clear, logical, and make good use of evidence. In writing, errors of spelling, diction, and grammar are unacceptable and will result in failing grades.

Academic dishonesty of any kind – cheating on tests, copying others’ work – will be penalised to the full extent. The MBA Programme trains honourable managers.


CLASS TIMETABLE
Week 1

Lecture topic

Pacific Island Economies: an Overview

Structure of Pacific island economies

Economic features

Natural and human resource endowments

Production and trade

Education and labour markets

Review of performance of the economies by UNESCAP, AusAID, World Bank IMF article 4 reports

Country debt levels and deficit budgets

At our first meeting the course teaching method will be discussed in detail. The class will be formed into groups and each group will be allocated a group assignment involving making a group presentation on the business environment in a Pacific Island country. Also each student will select a topic on which to make a ten minute presentation to the class.
Week 2

Lecture topic

Role of the Public and Private Sectors

Historic reasons for large public sectors

Role of government in promoting economic growth

Public infrastructure development and the role of government

Development of the private sector

Reassessment of the role of the public sector

Privatisation

Commercialisation of government enterprises

Public-private partnerships

Alternative methods of service delivery

Private sector as the engine of growth
Week 3

Lecture topic

National Planning and Economic management in Pacific Island economies:

Adapting to the Global Financial Crisis

Sustainable development and a low carbon development path

Role of fiscal and monetary policies

Prices and income policies

Exchange rate policies

Public sector borrowing and debt management

Micro-economic reforms and de-regulation

National sustainable development strategies

New approaches to economic planning


Student Presentations

Pacific Islands Forum Secretariat

Role of the Asian Development Bank

Role of the IMF and World Bank in the 21st Century

Trust funds

Role of remittances


Week 4

Lecture topic

Foreign and Local Investment Promotion

Investment policies and strategies

Factors affecting foreign investments

Role of investment promotion agencies

Role of incentives

Review of major investment projects and risk analysis

Environmental and social impact of large scale mining projects in PNG

Local versus foreign investments


Student Presentations

Investment Promotion Agencies in the Pacific

Pacific Island Trade and Investment Portals

Fiji Momi Bay resort development project

Fiji Natadola resort development project

Grand Pacific Hotel Suva project

Yaqara Film City tax free zone project
Week 5

Lecture Topic

Improving the Private Sector Business Environment

World Bank Easy of Doing Business Rankings

Review of Economic sectors with growth potential

Service sector development

Tourism development strategies

Role of tourism master plans

Technology and back office development

Agricultural sector development

Forestry and sustainable yields

Fisheries development and Pacific tuna


Student Presentations

Mining in PNG

Virgin coconut oil and cosmetic products

Case Study; Pure Fiji

Future Forest Industries and Teak plantations in Fiji

Pacific Black Pearl Industry


Week 6

Lecture topic

Strategies to promote Private Sector Development

Development finance

National small business development agencies/centres

On-line business toolkits

World Bank SMEtoolkit.com

Training entrepreneurs


Student Presentations

Review of the Fiji Development Bank and why development banks have failed in the Pacific.

National Centre for Small and Microenterprise Development in Fiji and other PIC small business centres: Lessons from experience.

ANZ Rural Banking and Microfinance in Fiji; Lessons from experience


Week 7

Lecture topic

Strategies to promote Private Sector Development

Business incubators

Innovation centres

Village factory schemes

Export processing zones, and tax free zones
Student Presentations

Review of Business Incubators in New Zealand and Australia

Family businesses in Fiji

Ginger and agro processing in Fiji

Garment Industry in Fiji

Micro-brewery projects

Adventure and ecotourism projects

Week 8

Lecture Topic:

Corporate Social and Environmental Responsibility

Promoting Corporate Environmental and Social Responsibility

The clean tech and green business revolution

Developing Green Business Enterprises

Measuring carbon footprint of business enterprises

Waste and energy reduction measures

Pollution taxes and incentives for green business

Carbon trading systems


Student Presentations

Case Study; Fiji Water

Case study; Pacific Green Furniture

Mining industry in Fiji including Namosi Copper Mine and Bua Bauxite mine development and lessons from the PNG Mining experience

Tutu project in Taveuni, young farmer settlement schemes
Week 9

Lecture topic

Improving Employment Opportunities

Labour markets in the Pacific

Unemployment and strategies to reduce it.

Wage rates and employment

Self-employment and subsistence sector issues

Role of non-formal education

Small business development in rural areas

The village economy and cash cropping


Pacific Islands Country review presentations by groups

PNG


Solomon Islands

Vanuatu
Week 10


Lecture topic

Trade and Export Market Development

Electronic Trade facilitation

National Single Window trade portals

Regional trade portals

Role of the World Trade Organisation

Trade policies issues
Pacific Islands Country review presentations by groups
Fiji

Tonga


Samoa
Week 11

Pacific Islands Country review presentations by groups

Kiribati


Tuvalu

Marshall Islands


COURSE CURRICULUM
Pacific Island Economies: an Overview

Structure of Pacific island economies

Economic features

Natural and human resource endowments

Production and trade

Education and labour markets

Associated cultural features

Systems of government

Land tenure issues

Population growth and migration


Role of the Public and Private Sectors

Historic reasons for large public sectors

Role of government in promoting economic growth

Public infrastructure development and the role of government

Development of the private sector

Reassessment of the role of the public sector

Privatisation

Commercialisation of government enterprises

Public-private partnerships

Alternative methods of service delivery

Private sector as the engine of growth
Public Policy Analysis and Sustainable Development

Role of policy analysis

Tools of policy analysis, cost-benefit analysis

Policy instruments and measures

Stakeholder Analysis and the Planning Balance Sheet approach

Public Policy Formulation and participation of stakeholders

Monitoring and Evaluation
Foreign and Local Investment and the business environment

Constrains to growth

Investment policies and strategies

Factors affecting foreign investments

Role of investment promotion agencies

Role of incentives

Review of major investment projects and risk analysis

Environmental and social impact of large scale mining projects in PNG

Local versus foreign investments
Economic sectors with growth potential

Service sector development

Tourism development strategies

Role of tourism master plans

Technology and back office development

Computer programming and data entry

Using the Southern Cross cable to deliver services to world

Agricultural sector development

Forestry and sustainable yields

Fisheries development and Pacific tuna

Business enterprise development

Role of entrepreneurs

New enterprises and development

Business plans and feasibility studies

Industry analysis

Analysing competitors

Market research and consumer analysis

The legal issues

Promoting Corporate Environmental and Social Responsibility

The clean tech and green business revolution

Developing Green Business Enterprises

Measuring carbon footprint of business enterprises

Waste and energy reduction measures

Pollution taxes and incentives for green business

Carbon trading systems
Strategies to promote private sector development

Development finance

Small business development

Training entrepreneurs

Business incubators

Innovation centres

Village factory schemes

Export processing zones, and tax free zones

Export market development

Small business and Pacific culture

The legal framework and commercial law issues
Labour markets in the Pacific

Education and employment

Unemployment and strategies to reduce it.

Wages and employment

Labour market growth

Self-employment and subsistence sector issues

Role of non-formal education

Small business development in rural areas

The village economy and cash cropping
Economic management in Pacific Island economies

Role of fiscal and monetary policies

Prices and income policies

Social safety nets

Exchange rate policies

Debt management

Public sector borrowings

Trust funds

Role of remittances

Budget deficits and surplus

Controlling inflation

Promoting employment


Taxation policies issues

Trade: an engine of growth for the Pacific

Lessons from experience

Role of the World Trade Organisation

Regional trade agreements

The Lomé Convention

Trade policies issues

Protection through tariffs and quotas


South Pacific economies in a changing environment

Public Policy Analysis and Economic Reforms

Micro-economic reforms and de-regulation

New approaches to economic planning

Role of sector investment studies

Sectoral and regional plans

Public sector reforms

Sustainable development

The Pacific and World economy

Benefit of globalization

Carbon footprint reduction strategies and policy measures

PICTA and PACER

Potential policy conflicts and globalization

Corporate social and environmental responsibility

The transfer of jobs from high wage counties to low wage countries

Global coordination of social and economic policies


Role of the CROP Regional Organisations

Pacific Islands Forum Secretariat

Role of the Asian Development Bank

Role of the IMF and World Bank in the 21st Century

Multi-national corporation in the Pacific

Boom and bust cycles for Pacific commodities


INTERNET SITES

There is now a large volume of material of direct relevance to the subjects discussed in this course on the Internet. Some important sites are:


Asian Development Bank website - www.adb.org.

ADB has many online publications on the Pacific Island countries. The work of the Asian Development Bank (ADB) is aimed at improving the welfare of the people in Asia and the Pacific.











World Bank website is:

www.worldbank.org

The World Bank (WB) is a vital source of financial and technical assistance to developing countries around the world. It is not a bank in the common sense. It is made up of two unique development institutions owned by 185 member countries—the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).
World Trade Organisation (WTO) Website is:

www.wto.org

The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business.
CROP (Council of Regional Organisations of the Pacific) Agencies

Fiji School of Medicine (FSMed)


Pacific Islands Forum Fisheries Agency (FFA)
Pacific Islands Development Programme (PIDP)
Secretariat of the Pacific Community (SPC)
Pacific Islands Applied Geoscience Commission (SOPAC)
South Pacific Board for Educational Assessment (SPBEA)
Pacific Islands Forum Secretariat (PIFS)
Secretariat of the Pacific Regional Environment Programme (SPREP)
south-pacific.travel (formerly the South Pacific Tourism Organisation - SPTO)
University of the South Pacific (USP)
Forum Fisheries Agency (FFA)

www.ffa.int

The Forum Fisheries Agency was established in 1979 under a Convention signed by twelve Members. The Convention reflects the common concern of member nations on matters of conservation, optimum utilisation and coastal states’ sovereign rights over the region’s living marine resources. FFA has its headquarters in Honiara, Solomon Islands. Membership of the FFA has now increased to sixteen - Australia, Cook Islands, Federated States of Micronesia, Fiji, Kiribati, Marshall Islands, Nauru, Niue, New Zealand, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu.


Pacific Islands Development Program (PIDP)

www.eastwestcenter.pidp
The purpose of the Pacific Islands Development Program (PIDP) of the East-West Centre is to help meet the special development needs of the Pacific Island region through cooperative research, education and training. PIDP conducts specific research and training activities based on issues and problems proritised by the Pacific Islands Conference of Leaders, which meets every three years
Secretariat of the Pacific Community (SPC)

www.spc.org.nc


The oldest of the inter-government regional organisations, the South Pacific Commission (SPC) was founded on 6 February 1947 by an agreement known as the Canberra Agreement, by the Governments of Australia, France, the Netherlands, New Zealand, the United Kingdom and the United States of America. The SPC’s work program covers diverse activities such as agriculture and plant protection, marine resources, environment management, rural development, rural technology, community health, statistics, economics, demography, women’s programs and activities, community education training, media conservation and exchange.
South Pacific Applied Geoscience Commission (SOPAC)
www.sopac.org.fj
SOPAC, the Pacific Islands Applied Geoscience Commission is an inter-governmental, regional organisation dedicated to providing products and services in three technical program areas of: Community Lifelines; Community Risk; and Ocean and Islands. Its Secretariat is based in Suva, Fiji.
Pacific Islands Forum Secretariat

The Pacific Islands Forum and its Secretariat


www.forumsec.org

The Pacific Islands Forum, formerly the South Pacific Forum until a name change in October 2000, was founded in August 1971 and comprises 16 independent and self-governing states in the Pacific. The Forum is established by a treaty between its members as the region’s premier political and economic policy organisation. Forum Leaders meet annually to develop collective responses to regional issues. 

In October 2005, Forum Leaders endorsed the Pacific Plan for strengthening regional cooperation and integration. At the regional level, coordination of the implementation of the Pacific Plan is, in the first instance, the responsibility of the Forum Secretariat. 

The Forum’s membership has increased from the original seven founding members (Australia, Cook Islands, Fiji, Nauru, New Zealand, Tonga and Western Samoa – now Samoa) to also include the Federated States of Micronesia, Kiribati, Niue, Republic of the Marshall Islands, Palau, Papua New Guinea, Solomon Islands, Tuvalu and Vanuatu. New Caledonia and French Polynesia, previously Forum Observers, were granted Associate Membership in 2006. Current Forum Observers include Tokelau (2005), Wallis and Futuna (2006), the Commonwealth (2006), the United Nations (2006) and the Asian Development Bank (2006), with Timor Leste as Special Observer (2002).



South Pacific Regional Environment Programme (SPREP)

www.sprep.org

SPREP is a regional organisation established by the governments and administrations of the Pacific region to look after its environment.

SPREP’s mandate is to promote cooperation in the Pacific islands region and to provide assistance in order to protect and improve the environment and to ensure sustainable development for present and future generations. SPREP has 21 Pacific island member countries and four countries with direct interests in the region.
South Pacific Travel

www.spto.org south-pacific.travel (formerly the South Pacific Tourism Organisation or SPTO) is the mandated inter-governmental body for the tourism sector in the region, with the mission to "Market and Develop Tourism in the South Pacific". South-Pacific. Travel members include the Pacific Island nations of the Cook Islands (Cooks), Fiji, Kiribati, Nauru, New Caledonia, Niue, Samoa, Solomons, Tahiti (French Polynesia), Tonga, Tuvalu, Vanuatu and Papua New Guinea (PNG).  The People's Republic of China is also a country member of south-pacific.travel.
Small Islands Developing States Network

www.SIDSNET.org

Small Island Developing States Network (SIDSnet connects 43 Small Island Developing States (SIDS) in the Pacific, Caribbean, Atlantic, Indian Ocean, Mediterranean and African island nations. SIDSnet's main goal has been to utilise information and communication technologies (ICTs) to link SIDS in supporting the implementation of the sustainable development objectives of the BPoA.

Australian Development Gateway www.developmentgateway.com.au

Purpose The Australian Development Gateway is a knowledge-sharing website, supporting people working in Asia Pacific countries to reduce poverty and promote sustainability. It is a mechanism for Australians and others in the Asia Pacific region to contribute knowledge and to engage in vigorous discussion.



The Global Development Learning Network (GDLN) www.gdln.org

The Global Development Learning Network (GDLN) is a partnership of over 120 learning centers (GDLN Affiliates) in nearly 80 countries around the world. GDLN




COURSE MATERIALS
Each student will be issued with a CD containing the lecture powerpoint presentations, and some reports relating to the course topics from the Asian Development Bank, Forum Secretariat, AusAID , and World Bank.

Students will be issued with a hard copy of the case studies.

Green Business Websites


  • www.EnvironmentalLeader.com

  • www.Greenbiz.com

  • www.SustainableLifeMedia.com

  • www.SustainableBusiness.com

  • www.Treehugger.com

  • www.Worldchanging.com

TUTORIAL EXERCISES
The class will be divided into groups of four students. Each group is asked to consider the following questions and to prepare a report on the key issues. Groups will be asked to have a representative and to give a feedback report after they have discussed the key issues:



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