Industrial Master Plans:International Comparison of Contentsand Structure
Kenichi Ohno (GRIPS) November 2009

Master Plan Types Overall industrial (covering multiple sectors)
 Sector-specific (electronics, garment, etc.)
 Issue-specific (SMEs, TVET, etc)
 Regional development plans Technical blueprints

We will discuss only the first three types.

VisionImportance, role, orientation, and positioning ofindustry in national development

Targets

Long- and medium-term numerical and/or qualitative
targets

Situation analysis

Current status, potentials and obstacles of thedomestic industry in the national, regional and global
context; tables and graphics for data, surveys,international comparisons, etc.

Policy issues

A small number of selected issues should beidentified, prioritized, and analyzed in preparation for
designing policy action

Action planoraction mechanism

A large matrix that pre-specifies actions, sub-actions,
expected output, success criteria, deadlines, andresponsible organizations; procedure for monitoring
and reporting should also be specified.
Alternatively, a monthly high-level committee chaired
by top leader, or a well-focused and well-coordinatedbudgeting and project approval process may substitutethe action plan matrix.

Vision A statement of importance, role, positioning ofindustry in question.
“Thailand is the automotive production base in Asia
which creates more value added to the country withstrong automotive parts industry.” (Thai Automotive)“Motorcycles should continue to be used to ensure
people’s mobility and reducing infrastructure cost per
year, provided that problems of traffic congestion,
traffic accidents, environment, and industrial property
rights are solved...” (Vietnamese Motorcycles)Targets Long- and/or medium-term targets, both

qualitative and quantitative.
 What and how many targets should be set
depends critically on sector characteristics,private capability, and policy capacity.
“By 2006, (i) produce 1 million cars with 40% exported;(ii) produce 2 million motorcycles with 40% exported;(iii) export 200 billion baht of high-quality spare parts;(iv) localization of 60%” (Thai Automotive)

Situation Analysis
 Current status, future potentials, andimpediments to growth.
 (Optional) general features of industry, global
trend, international comparators
 The amount of situation analysis depends onthe existing knowledge of stakeholders.
Ex. past performance, capacity, export and import,
localization, domestic products and producers,
quality, cost, productivity, competitiveness, demand
forecasts, etc.

Analysis of Policy Issues
 In-depth analyses of a small number of key

issues as background to the action plan
(action plan must solve these problems).
Ex. Human resource, technology, cost reduction,
quality improvement, forward and backward linkage,
marketing, material procurement, export promotion,
infrastructure services, etc.

Action Plan Matrix or Action
Mechanism An action plan matrix is a large table thatspecifies actions in detail and in advance (partof the main text or separate volume) High-level monthly committee chaired by top
leader (only for a few important issues) Annual budgets and projects coordinated by astrong hub organization
While process-oriented approaches are more flexible,
they require strong leadership or hub organization.

Standard Format of Action
Plan Matrix
Triangle of Hope Project, Zambia, 2007 (excerpts)
Expected
Activity Respons MonitoringRecommendation
Activities
StatusStatus(action)(sub-action)
outputperiodibilityindicatorLand forNot yet Jun.
MACO
Promote investment 1. Identify land to Little
Monthly
started 2007
(main),
in cotton production be held in MACO progress cotton
reportMoLby allocating land to trust
production
appropriate
2. Write to MoL Not yet identified(sub)for title deedstarted andproducers
3. Develop adm Donesecuredmechanism forfarm blocks

This approach requires much effort in constructing
and monitoring the matrix. It is suitable for countries
lacking strong industry leaders or hub organizations.
 Effective mechanisms for drafting and monitoring
must be established.
Optional Materials
Other materials can be cited in main text, orplaced in appendix or background papers.
General explanation of the industry, global trend Performance review (past master plan results)
 SWOT, benchmarking, competitiveness index,
HRV trees, other country rankings.
 Surveys, empirical studies, etc.
These should not be the main part of the master plan.

Required Features
 Targets should be ambitious but realistic.
 For compactness, relevance should be thecriterion for inclusion of any materials.
 All components should be logically linked.
 Flexibility and adaptability—because allindustries and countries are different.
 Implementability is crucial.
 Effective, not superficial, stakeholder
involvement in the entire process.

Relative Scope of Government
versus Market
 Proper domain of government depends on (i)industry characteristics, (ii) private sector
capability; and (iii) policy capability.
 For each sector and at each point in time,policy reach should be defined pragmatically– state and market must be mixed but withvarying weights.

General Rules
Setting targets and specifying products, producers,investment, technology, location, markets, etc.
Greater scope forGreater scope forgovernment
markets
Initial capital investment (sunk cost)
Large
Small
Gestation period
Long
Short
Market volatility
High
Low
Product type
Industrial inputs
Consumer goods
Private sector maturity and dynamism
Low
High
Government policy capability
High
Low
Trust between government and business
HighLow
Note: this table shows general tendencies. Government scope may be larger when many conditions on
the left are met, and market scope may be expanded when many conditions on the right are satisfied.
There is no need to have all conditions satisfied for either conclusion.

Comparison of Master Plan Structure
0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Malaysia: Third Industrial
Master Plan
Thailand: First Automotive
Industry ES
Thailand: Second
Automotive Industry ES
Thailand: Second
Automotive Industry
VisionThailand: Small and Medium
Enterprises
Thailand: Supporting
Industries ES

Targets
Situation analysis
Policy issues

Thailand: Food Industry ES
Thailand: Leather, leather
goods, footwear ES
Indonesia: National Industrial
Dev. Policy
India: National Strategy for
Manufacturing
India: Industrial Policy ofMaharashtra State

Action plans

General Remarks
 All master plans are different; it is difficult tofind one prototype for all countries to emulate.
 Vision and targets usually take up 5-15%.
 Some M/Ps mainly provide situation andissue analyses; others carry a large action
plan section.
 Executive summaries are sometimes used
more often and therefore more important thanthe main text.

Thailand Automotive
M/P 2007-2011
Drafting team at Thailand Automotive Institute Vision 2011  4 Objectives  5 Strategies

 12 Action Plans
 Strong coordination by Mr. Vallop of Thailand
Automotive Institute Effective stakeholder networking – FDI, local
producers, government, donors
 Process-based action mechanism – annual
budget and projects for implementing actions(no matrix)

Thai Automotive Strategiesand Action Plans

Source: Thailand Automotive Institute, The Automotive Industry Master Plan 2007-2011 Executive Summary, p.4.

Thailand Supporting Industry
Promotion M/P 1995
 Thai supporting industries = component

suppliers of automobiles and electronics.
 Japanese cooperation in 1987-91, 1995, 1999,2000-04, 2006-10, etc. (studies, experts,training, other).
 Master plan drafted in 1995 – still used as achecklist of policy actions and their relations.
 Action plan summary (3 pages only)Mr. Panuwat Triyangkulsri,
Thai Ministry of Industry,
Department of Industrial
Promotion

Ethiopia: Leather and Leather
Product M/P 2005 (2 volumes)
 “Master Plan” – situation analysis, vision(TDA), targets and actions
 “Business Plan” – detailed targets andactions for footwear, garment, leather goods
 Too many numerical targets – policy domainshould be reduced.

Ethiopia: Basic Metal andEngineering M/P
 General industry information  situationanalysis  “gap analysis” (capacity vs.
demand forecasts)  vision/mission/goals action plan matrix
 Structure is simple and reasonable.
 General industry information is appropriate.
 The question is quality and concrete contentsof strategies, goals, and action plans. Moreinformation and analyses are needed toupgrade them.

Recommendations for Ethiopia
 Priority industry M/Ps should be drafted orrevised over medium term (PASDEP II periodand beyond).
 About 10 industrial M/Ps at maximum.
 Relatively compact M/Ps (50-100 pages).
 Action plan matrix with reasonable size (nottoo large) with proper monitoring mechanism.

Suggested Master Plan
Structure for Ethiopia
 Introductory materials (brief) Overview – vision, goals, positioning (5-10%)
 Situation analysis, past and current (20-30%)
 Analysis of selected policy issues (20-30%)
 Implementation procedure (brief)
 Action plan matrix (40-45%)

Background papers containing surveys, technicalappendix, etc. may be prepared in separate volume.