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Competitive Region Project—Latin America

Brazil: Pro-Northeast Brazil Initiative

Challenge

The Northeast region of Brazil, perhaps the most economically disadvantaged in the nation, determined to diversify its economy away from dependence on primary agriculture by developing a strategy to enable the growth of value-added products and services.

Solution

Working under a World Bank-sponsored initiative, ICF International carried out a three-state, four-cluster collaborative strategy process. The analysis began by analyzing the strengths and weaknesses of clusters in nine states of the Northeast. Next, we chose three states on which to focus—Bahia, Ceara, and Pernambuco—and completed a benchmarking process to determine the competitive position of each of these states in four clusters: information technology, tourism, fruits, and grains. With this completed, we initiated a collaborative working group process in each cluster in each of the three states. These working groups responded to market opportunities defined by the consultant and identified shared competitive challenges and action strategies to enhance the depth and breadth of their clusters. These were integrated into the Pro-Northeast Brazil Competitiveness Strategy.

Benefit

Cluster groups in each of the three states have moved forward with implementation. The state of Pernambuco, in particular, has been the most active, building a portfolio of five cluster groups today and even providing technical assistance to other states in developing their cluster strategies.

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