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1 This article was downloaded by: [Hosei University] On: 15 April 2015, At: 04:09 Publisher: Routledge Informa Ltd Registered in England and Wales Registered Number: Registered office: Mortimer House, Mortimer Street, London W1T 3JH, UK Development in Practice Publication details, including instructions for authors and subscription information: One village one product: evaluations and lessons learnt from OVOP aid projects Kanako Mukai & Ryo Fujikura Published online: 14 Apr Click for updates To cite this article: Kanako Mukai & Ryo Fujikura (2015) One village one product: evaluations and lessons learnt from OVOP aid projects, Development in Practice, 25:3, , DOI: / To link to this article: PLEASE SCROLL DOWN FOR ARTICLE Taylor & Francis makes every effort to ensure the accuracy of all the information (the Content ) contained in the publications on our platform. However, Taylor & Francis, our agents, and our licensors make no representations or warranties whatsoever as to the accuracy, completeness, or suitability for any purpose of the Content. Any opinions and views expressed in this publication are the opinions and views of the authors, and are not the views of or endorsed by Taylor & Francis. The accuracy of the Content should not be relied upon and should be independently verified with primary sources of information. Taylor and Francis shall not be liable for any losses, actions, claims, proceedings, demands, costs, expenses, damages, and other liabilities whatsoever or howsoever caused arising directly or indirectly in connection with, in relation to or arising out of the use of the Content. This article may be used for research, teaching, and private study purposes. Any substantial or systematic reproduction, redistribution, reselling, loan, sub-licensing, systematic supply, or distribution in any form to anyone is expressly forbidden. Terms &

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3 Development in Practice, 2015 Vol. 25, No. 3, , One village one product: evaluations and lessons learnt from OVOP aid projects Kanako Mukai and Ryo Fujikura* (Received January 10, 2013; accepted May 17, 2014) The One Village One Product project that originated in Japan s Oita Prefecture is just one component of many official Japanese development assistance projects aiming to promote rural development in more than 30 countries. Not all efforts, however, result in the same level of sustainability. Oita Prefecture built its movement on three principles: local yet global, self-reliance and creativity, and human resources development. The projects that satisfy these principles are generally found to be sustainable. These principles can also be applicable to overseas projects. Le projet One Village One Product (Un village un produit) lancé dans la préfecture japonaise d Oita n est qu un élément de très nombreux projets d aide au développement officiels lancés au Japon dans le but de promouvoir le développement rural dans plus de 30 pays. Cependant, tous les efforts n aboutissent pas au même degré de durabilité. La préfecture d Oita a bâti son mouvement sur trois principes : local mais mondial, autosuffisance et créativité, et développement des ressources humaines. Les projets qui respectent ces principes se révèlent souvent durables. Ces principes peuvent aussi être appliqués aux projets à l étranger. El proyecto Una Aldea, Un Producto (UAUP), que tuvo su origen en la prefectura japonesa de Oita, es solo uno de los muchos proyectos de ayuda patrocinados por el gobierno de Japón y orientados a promover el desarrollo rural en más de 30 países. Sin embargo, no todos muestran el mismo nivel de sostenibilidad. La prefectura de Oita impulsó su proyecto tomando como base tres principios: lo local inserto en lo global, la autosuficiencia y la creatividad, y la potenciación de los recursos humanos. En general, aquellos proyectos que satisfacen estos principios resultan ser sostenibles, lo que permite inferir que pueden ser aplicados a proyectos implementados en otros países. Keywords: Aid Aid effectiveness; Monitoring and Evaluation; Capacity development; Labour and livelihoods Poverty reduction; Methods Introduction The One Village One Product (OVOP) project began in Japan s Oita Prefecture in 1979 and many of its activities continue to the present day. 1 OVOP is one form of regional development project and its aim is to help local residents add value to their local products, tourism, and culture in order to stimulate the local economy in rural areas. A unique feature of OVOP projects is the special attention given to identification and development of distinctive products within a given village. All 58 municipalities in the prefecture have participated in the project and a total of 766 different types of local products and services have been developed. 2 The development of unique local *Corresponding author. fujikura@hosei.ac.jp 2015 Taylor & Francis

4 390 K. Mukai and R. Fujikura products is noteworthy. Prior to OVOP, 143 types of products accounted for a total sale of billion JPY. However, by the time the Oita Prefectural Government terminated the campaign in 2003 the numbers had grown to 319 types of products, with total sales of billion JPY (Hiramatsu 2006). Son (2010) has shone a light on the strategies that were required to initiate the project and to develop effective policies. Matsui (2006) conducted a detailed study into the conditions for good regional development. The OVOP project has attracted attention from several developing countries. The propagation of the concept first began with the Mayor of Shanghai, China in He introduced the OVOP project in Shanghai with the aim of revitalising rural communities and providing better quality control for products. Similar projects have spread to other Asian and Central Asian countries including Cambodia, India, Indonesia, Laos, Malaysia, Mongolia, Myanmar, Kyrgyz Republic, Taiwan, and Thailand. Projects have also spread to South and Central American countries including Argentina, Columbia, and Peru. Since 2008, when the Japanese government identified the OVOP project as an aid strategy for product development and export promotion in Africa, it has also appeared in Tunisia, Malawi, Kenya, Ethiopia, Nigeria, Rwanda, Senegal, and other African countries. 3 In terms of overseas examples, Takei (2007) wrote about OVOP from an economic perspective, Takanashi (2009) wrote about the internal variation of economy and farmers, and Fujioka (2006) wrote from the perspective of local revitalisation. Kurokawa, Fletcher, and Dirk (2010) conducted a detailed comparative study of Japan, Thailand, and Malawi. OVOP projects have not always been successively implemented both in Japan and overseas. These projects are essentially dependent on the manufacture and sale of local goods and/or services. The degree to which these products are financially sustainable is crucial for success. Meanwhile, no comparative study of overseas OVOP projects has been conducted in this regard. By comparing projects conducted both in Japan and overseas, we intend to identify factors that are crucial to financially sustainable projects. We have conducted field studies, literature research, and interviews with key persons and participants of projects conducted under the name of OVOP or an associated name in Japan, Thailand, Malawi, the Kyrgyz Republic, and Laos. The Japan International Cooperation Agency (JICA) initiated all of the overseas projects considered in this study, except for the single project that was implemented at Baan Tawai village, Thailand. We were unable to conduct a field survey in Malawi due to financial constraints; however, we were able to obtain the necessary information by intensive interviews with a JICA expert that was fully involved in the project. This article first reviews the OVOP projects in Oita Prefecture and then presents the results of case studies conducted on overseas projects. Finally, it discusses the factors that have made these projects sustainable. OVOP project in Oita prefecture, Japan The origins of the OVOP project Oita Prefecture has a population of 1.19 million people, with 72% of its land area covered with forest. Its mountainous terrain was once a barrier to inter-regional trade and communication, perhaps contributing to what some people say is the character of the prefecture s people: unwelcoming of outsiders and lacking a cooperative spirit. However, this character may have preserved some unique traditions in its economy and culture (Hiramatsu 1993). Aware of their diverse culture, locals from the Oita Prefecture have identified local resources that were a source of pride and the OVOP project incorporated management methods that triggered competition between regions to stimulate the local economy. The OVOP project began with the pioneering efforts of Oyama Town; however, it was Morihiko Hiramatsu, the prefecture s governor at the time, who expanded these principles to the entire

5 Development in Practice 391 prefecture in 1979 (Son 2010). In 1983 the governor established schools in 12 locations as venues to train local leaders. Hiramatsu himself was the head of these schools, which attracted potential leaders from around the prefecture. The school offered a two-year programme and invited people from the business world as well as local leaders and taught them about community development. The programme produced more than 2,000 graduates over a 20-year period. These graduates were central players in establishing new schools at the town and village level and creating a training and consultation network amongst the OVOP projects. During the training at the schools, three principles emerged: Principle 1: Local yet global (develop new products and sales channels). While preserving the flavour of local culture, create products that are appealing both nationally and internationally. Principle 2: Self-reliance and creativity. The local community members must decide what to develop as the one special product for the village and how they can improve upon it using creativity and ingenuity. Principle 3: Human resources development. The ultimate objective of the OVOP project is human resources development. In particular, identifying a promising local leader and improving their leadership skills in the local area. Both the local leader and the participants should acquire knowledge and skills to overcome problems. 4 The following three villages have maintained the sustainability of their sales. The common thread among them was that they implemented policies that followed the three principles. Oyama town The mayor, Yahata Harumi, launched a campaign in 1961 to motivate local people by giving them a means of earning income by cultivating fruit trees, by giving farmers management approaches that were considered the most profitable value chains for their labour and products, and by suggesting how to integrate the community s collective knowledge. The town also sent a number of its young people to experience life in a kibbutz in Israel. These young people brought back ideas they learnt there and impacted their town in a positive way. They brought life to the region and created employment opportunities for others regardless of their age or gender. For example, they set their own price for vegetables produced by farmers and created a farmers market to sell them. They also opened a restaurant where women served meals prepared with the vegetables they had grown. 5 The yearly revenue of the farmers market and restaurant were initially 68 million JPY in 1990, rising steadily to 850 million JPY in 2000, and later to billion JPY in The number of farmers shipping produce grew from 210 persons initially to 3,213 in 2007 (Itoh 2009). A discussion held using two-way cable television unearthed some ideas from senior women for using existing farm produce, thus creating employment for seniors. 6,7 Yufuin town Yufuin has long been famous for its natural hot springs. The town has also boosted the local economy by promoting an image of nature protection. At the centre of this work were the local operators of the Japanese inn (ryokan) industry. One factor in their success was that they visited Kurort (a hot springs spa and health resort area) in Germany and reviewed the detailed concepts by themselves. They developed their own resort area by incorporating ideas from

6 392 K. Mukai and R. Fujikura nearby and from elsewhere (Kitani 2004). Also, the local development benefited the entire region through cooperation among the people working in the local tourist industry; no single inn or shop monopolised the profits. 8 When a large developer from outside of the region proposed a high-rise condominium development in 1970, a local opposition campaign succeeded in forcing the town to adopt bylaws to control high-rise condominium construction (Kitani 2004). The town s inns received 381,560 guests in 1979 prior to the start of the project, which grew to 3,883,580 guests by 2004, making Yufuin one of Japan s top tourist spots. Ajimu town Ajimu launched a green tourism initiative in Since the long-term accommodation vacation style that had begun in Europe did not become well established here in the same way, the locals had to consider their own unique model. 9 A local individual visited Germany and found that it was difficult to operate hospitality businesses since the farmers were not accustomed to offering customer service in a way that was typically expected. Moreover, they would have to invest considerable funds to ensure that their buildings complied with the standards of the Japanese hospitality industry legislation. As a result, the locals petitioned the prefectural government to relax the regulations on business permits for guest houses in the prefecture (known as minshuku, which are similar to bed-and-breakfast businesses in other countries) based on the approach that rather than providing the services of a Japanese inn (more like a hotel), the locals would be offering a chance for visitors to experience real life in the village. 10 Changes were also made to enable the locals to conduct their business more sustainably by limiting the number of guests they could receive per day and enabling them to participate in green tourism only during the agricultural off-season. As a result, the number of guests increased from 4,051 in 2004 to 7,433 in The overseas OVOP projects Thailand One Tambon one Product Thailand s past Prime Minister Thaksin Shinawatra launched the Thai version of the OVOP project, called One Tambon One Product (OTOP). 11 At the time of its introduction Thailand requested assistance with product improvement and market expansion from the Japan External Trade Organization (JETRO) and a Bangkok Centre operated by Japanese companies, in addition to receiving advice from experts dispatched from JICA to the Prime Minister s office. The national government, with the Prime Minister at the head, created the policies and then producers conducted their business with the aim of obtaining OPC certification in accordance with government standards (Fujioka 2006). 12 The government organised exhibitions, offered a variety of incentives for marketing activities, and created a website. In 2003, 1,032 of 7,400 villages nationwide participated in the programme and there were more than 5,000 OTOP product items, ranging from agricultural products, traditional textiles, furniture, pottery, and herbal products. Sales of rurally produced goods expanded from 8 billion THB in 2001 (prior to OTOP) to a whopping 48.7 billion THB in 2004, equivalent to 1% of the nation s gross domestic product (Takanashi 2009). 13 The sales value of OTOP products from the north-eastern part of the country also the poorest was second only to the sales from central Thailand. In Khon Kaen province and Nakhon Ratchasima province in north-eastern Thailand a total of 986 people in 38 production groups participated. One hundred and eighty-nine persons earned about 2,400 THB as an average monthly

7 Development in Practice 393 income and 95.8% of participants said that their income had increased, making it easier to make a living. These village OTOP production groups continued for seven years and participants said that they had not only earned an income but also gained personal satisfaction. Statements like My family can count on me now and I don t want to let our village s special products disappear attest to a strong sense of local affinity within the tambon (Takanashi 2009). Meanwhile, in B-Tambon (consisting of eight villages) in Ang Thong province in central Thailand, 700 women from a population of 2,600 participated in basket making at a production centre built in 2002 through assistance from the Japan Bank for International Cooperation (JBIC). The reported revenues for 2004 amounted to 2.56 million THB and the participating women averaged 4,672 THB in monthly income. 14,15 There were some problems, however, such as dissatisfaction that income was not distributed equally among the producers groups, a decline in prices due to similarity among products, and a shortage of raw materials (Takei 2007). Below are two examples of OTOP projects. Baan Tawai village, Chiang Mai province The OTOP Village Champion (OVC) programme was launched in 2006 to facilitate a connection between OTOP products and tourism. This village was the first to be certified under the programme, which combined wood carving products with sightseeing to nearby Doi Intanon (Thailand s highest mountain). Three persons who had been working in Chiang Mai returned to spread the wood carving techniques they had learnt to their whole village, and villagers cooperated by promoting their products. After the OTOP was launched, the recognition and respectability of their wood carvings of various sizes grew when they obtained three to five OPC stars. Their products went on display at OTOP markets around the country, resulting in more sales channels and local revitalisation (Kaewmanotham 2008). When the OVC was launched the government invested 40 million THB and implemented village beautification projects. As a result, more tourists came and the village s overall revenues increased by 30% over three years. The sale of carvings increased by 15% in one year alone. A large share of sales, however, went to outsider businesses attracted by OTOP product profits. Outsiders swelled to 70% of the village population and shops were established in a shopping village built outside of the original village, splitting the old village in two: one inside and one outside the village. It was local landowners who developed the outside village; however, today they have transferred the rights to the land and shops to the outsiders (Kaewmanotham 2008). The outsiders triggered a price competition which resulted in a major drop in product prices. In addition, rampant logging of forests has made it more difficult to obtain wood for carving (old-growth teak and mango trees). 16 The provincial budget for OTOP has since been eliminated and the town s shift to tourism has created new problems: an increase in waste management and other day-to-day operating costs and higher costs for maintenance of tourism facilities such as bus stations. As a result of these new stresses the village s finances have become strained (Kaewmanotham 2008). Furthermore, only a few carvers now live in the village where tourists came to visit. The sense of local community among the villagers has weakened due to a growing population of outsiders. 17 Ruamjai village, Chiang Rai province Ruamjai village is located in a mountainous area with an elevation over 1,000 metres and in an area where opium poppies have traditionally been cultivated. The main mission for JICA

8 394 K. Mukai and R. Fujikura volunteers dispatched here is to help the mountain tribes by transferring agricultural technology, including techniques for growing plum and other fruit trees. Yasuo Oura was sent from Japan in 1999 to teach techniques to make umeboshi (salted pickled plums), a Japanese food item, and laid the foundation for an industry that the locals could sustain. The reason umeboshi was chosen to for manufacture was that continuous production was possible with low-cost ingredients that required no cooking pots or fire (thus no major food-processing facilities) and the farmers had already learnt techniques to grow plums. The main market would be Japanese nationals living in Bangkok. Products had obtained certification by the Thai health ministry and were of a hygienic standard that met existing Japanese standards of cleanliness. All of this was well received by supermarket customers. Later, when umeboshi were selected as an OTOP product, the market price rose to the point that plums originally selling for 5 TBH per kilogramme were traded at a price of over 200 TBH (Yonesato 2003). Statistical data and details have not yet been published, however production and sales continue today despite the fact that the JICA project ended in Republic of Malawi As a result of the Japanese government, JICA, and Oita Prefecture introducing the OVOP project to the government of Malawi over the course of about 10 years, the Malawian President made his country the first in Africa to introduce the OVOP project as a national project at the end of 2003 (Yoshida 2006). 18 This project was launched as a JICA technical cooperation programme in 2005 and the objective was to create an environment to conduct business by making the greatest possible use of resources in rural areas. One feature of the project in Malawi was that it operated as a grant programme based on a review of proposals. Only groups that passed the review of the OVOP secretariat established by the government could receive funds from the Malawi Regional Development Fund, JICA s technical assistance and training, website design, and equipment. The Malawian government provided technical support, project evaluation, and funding, for the secretariat. In 2008 a total of 47 producer groups participated. The groups varied in size from five to 2,000 persons and products ranged from rice, cooking oil, milk, jam, honey, dried vegetables, and manufactured furniture. Many of the participants had their own businesses prior to the project beginning (Kurokawa, Fletcher, and Dirk 2010). One issue was that products had to acquire certification. It is not easy for food-vending businesses to acquire certification from the government-established Malawi Bureau of Standards (MBS). 19 An oil production group in the Mitundu village found that its participants lost motivation and drifted away when it had to halt sales for failing to obtain certification (Sawa 2011). On the other hand, by sharing ideas about selling raw and dried vegetables 389 people in the Bvumbwe vegetable growing group (not MBS-certified) were able to slightly increase perperson sales from 24.2 MWK to 29.7 MWK. The Khumbo Oil Refinery introduced machinery to boost production efficiency and obtain MBS certification and was able to boost per-person sales from 1,100 MWK in 2007 to 3,833 MWK in 2008 (Kurokawa, Fletcher, and Dirk 2010). 20 The latter group also created unique and highly notorious foods such as moringa powder and baobab jam with a high value added (Yoshitake 2008). Overall product quality is low; in fact, many products are not considered to have any value to sell in cities and sales channels are not clearly established. JICA experts have also pointed out other challenges for the sustainability of activities, including delays in collecting sales revenues leading to a chronic lack of funds (Mori 2008). Other issues are that many participants have little experience with accounting, are unable to accurately quantify their profits, and are not capable of developing a business plan. 21

9 Development in Practice 395 Kyrgyz Republic A JICA project was launched in the state of Issyk-Kul in the Kyrgyz Republic in 2006 with the goal of socio-economic development. A new OVOP project was initiated in 2011 to take over the previous one. 22 JICA volunteers are currently assigned to a number of villages to assist with product development; Kyrgyz staff have visited villages to check on their progress. 23 When the project began there was a low level of trust in Kyrgyzstan between the government, citizens, communities, and business. This was largely because information was not being shared in an equal fashion. 24 As a result, it was a challenge to find common desire among stakeholders to cooperate and connect under the OVOP project. One feature of the project in Issyk-Kul was that the activity was based on the collaborative approach of on-the-job training through local businesses. A Japanese company named MUJI, operated by Ryohin Keikaku Company, was able to a secure a partnership in 2011 with the JICA Kyrgyz secretariat to engage in on-the-job training. 25 The objective was to provide real business experience and to help groups associated with the project to grow. The initial opportunity arose when in 2010 the company inquired with JICA about potential sources of Christmas products. As a result, JICA sent out a notice to its affiliated offices around the world. Akihisa Haraguchi, a project leader stationed in the Kyrgyz Republic, promptly submitted product prototypes. The products (iphone cases and transit pass cases made from felt) were selected from more than 80 items submitted from around the world. 26 Participants included 244 women (from their teens all the way to their 60s) and sales were 55,618 US$ in 2011 and 53,550 US$ in While the salary of a Kyrgyz teacher ranged from 40 to 100 US$ per month, the partnership with MUJI had an enormous impact on women within the community with almost 218 US$ paid per person for working over the course of three months. 27 Other products include white honey, jam, and herbal soap. Kyrgyz OVOP staff have begun to operate a shop and have monitored the sale of these products. Monthly sales have increased from 672 US$ when the shop was opened in 2011 to 3,171 US$ just one year later. Here the objective was not only to study sales trends and to monitor revenues but also to provide business (accounting) training to support the participants self-reliance. This included knowledge on how to determine net profit by calculating fixed and variable costs as well as wages paid to staff. 28 These meetings and training sessions have been credited for the above success. The original 67 participating groups have grown to 84 groups today that involve about 500 people altogether. Local people, companies, and organisations that initially felt no connection with one another (and showed no interest in connecting) would later participate on OVOP branding committees and select products that would be the pride of their region. They were also the ones who attempted to spread OVOP throughout the entire region. 29 With projects still under way it is clear that the awareness of locals has changed through the results obtained. The participants have been initiating and conducting their own projects even after JICA volunteers have returned to Japan. 30 In October 2013, MUJI was awarded IFC s 2013 Inclusive Business Leader Award as it impacted the lives of the poor through market based solutions (as of 25 November 2013, on the IFC website 2013 Inclusive Business Leaders Forum). Lao People s Democratic Republic The Macroeconomic Policy Support for Socio-Economic Development in the Lao PDR project was implemented by JICA beginning in An OVOP project (in Laos referred to as One District One Product, or ODOP), conducted as a sub-project by the government in 2008 in response to a strong request from the Laotian side, provided a measure to identify potential export products and stimulate the rural economy. Under this project a local consultant carried out a study of the

10 396 K. Mukai and R. Fujikura entire country and selected Savannakhet Province and Saravanh Province as model projects due to their business potential. JICA volunteers and Japanese consultants were then assigned through bilateral technical cooperation to visit the provinces and were involved in developing 14 products and production processes. These included rattan products, ancient salt, honey, unpolished rice, textiles, banana liquor, and incense. 31 It is difficult to evaluate the project at this point because of the short time since the activities began. While there is a basic desire to make use of local resources, the marketing channels do not seem to have been adequately developed at this time. Discussion and conclusion As shown in Table 1, each of the three OVOP projects conducted in Oita Prefecture has been able to sustain their sales until the present time. On the other hand, many projects have failed to sustain their sales and were discontinued. Whether the projects are able to maintain their sales depends on their ability to deal with emerging problems. One significant problem is the emergence of similar goods from outside of the village. The ability to develop unique products which cannot be imitated, to quickly develop a new unique product if imitated, and to continue active marketing are all essential to make the project sustainable (Hiramatsu 2006). The three principles of OVOP are indispensable for the projects to obtain sustainability. Principle 3 (Human resources development) is particularly important because it is people that enable the other two principles. In other words, human resources must be developed in order to meet the other two principles. Project leaders who have been trained to adhere closely to the principles were able to achieve a certain level of success. In addition, Oyama town, which pioneered the project even before the prefectural government became involved, developed its human resources by sending young people to Israel, at considerable expense considering Japan s economic Table 1. OPOP Projects and their compliance with three principles. Principle 1: Local yet global Principle 2: Self-reliance and creativity Japan Oyama High quality fruits and vegetables Farmers markets and restaurants Japan Yufuin High quality Cooperation amongst local Japanese inn with industries and restricting hot springs outsider invasion Japan Ajimu Green tourism Petition for relaxing standards and limiting the number of guests Thailand Baan Tawai Village Thailand Ruamjai Village Republic of Malawi Kyrgyz Republic Lao People s Democratic Republic Principle 3: Human resources development Sending young people to Israel Learning cases in Germany Examining cases in Germany Woodwork Permitting outsider invasion Failure to raise local awareness Salted pickled plums Targeting specific customers Technology transfer from a and improvement of product JICA volunteer quality Poor quality of products High quality felt products No marketing channels developed Unclear business strategies Show room sales both locals and tourists None Insufficient training On-the-job training for production and sales management None Note: Items written in italics indicate a failure to meet the principle.

11 Development in Practice 397 conditions at the time. Local leaders from places such as Yufuin and Ajimu have also travelled overseas at their own expense and brought back what they learnt for the betterment of the local setting (Kitani 2004; Tsuchiya 2010). The leaders also made efforts to promote task sharing and collaboration at the local level. The local community worked together with their leader to develop themselves through commitment and experimentation. The context for their efforts was that townspeople felt a strong sense of crisis; the sense was that the three towns economies would collapse without their efforts (see, for example, Itoh 2009). The local people were also thinking about ways to make use of resources in the region as a long-term shared asset. Yufuin and Ajimu made use of their tourism resources, limited the scale of development, and are trying to ensure long-term profits by restricting the invasion of newcomers from outside the region. Overseas projects differ from Japanese projects in the sense of who initiates the project. While the local people identified the Japanese projects, mostly outsiders prepared the overseas projects, namely the JICA staff and volunteers. However, the three principles seem to be just as effective for the overseas projects and have hardly faced the problem of emerging similar goods. The case of the Kyrgyz Republic can be seen as one of the best examples of sustainability. Efforts to produce high-quality felt are proceeding quite well after having secured marketing channels through collaboration with a Japanese corporation (Principle 1). They are not only concentrating on immediate well-selling lines but are also developing products such as high-quality food, soap, and traditional textiles that are expected to be sustainably sold. 32 The demand for these products is verified by shop sales to local people and tourists (Principle 2). Training was particularly focused on acquiring problem-solving skills by integrating new knowledge obtained through the project with their traditional experience and culture. The leaders not only learn techniques related to the production of herbal soap but also sales management methods. Efforts are being made to share the benefits obtained and the techniques learnt with the local community rather than keeping profits to themselves as individuals. As the result, local leaders have been able to continue to play a central role in human resources, even after Japanese product development volunteers returned to Japan (Principle 3). Ruamjai in Thailand can also be seen as a sustainable example. The central government s quality assurances for OTOP products have opened up several excellent marketing channels (Principle 1). Ruamjai limits its market to Japanese nationals living in Bangkok and is succeeding in product quality improvements (Principle 2). Also, even after JICA volunteers have returned to Japan, some participants continue to act as leaders in their roles (Principle 3). Moreover, Ruamjai is the village of a minority group and there are strong relationships among the villagers. Their commitment to local development is quite evident. Meanwhile, Baan Tawai village in Thailand, Malawi, and Laos are examples where some of the three principles have not been satisfied. In these cases the conditions may lead to a lack of sustainability. In Baan Tawai village a leader failed to raise local awareness of shared assets and so uncontrolled development and profit chasing has depleted the resources and crushed the locals motivation (Principle 3). Moreover, there is no institution to prohibit the influx of outsiders seeking to control the local economy (in contrast to the case of Yufuin town which established a new bylaw). Therefore, a rampant development of resources was hindered. In Malawi, with the exception of a portion of sub-projects, product quality is generally poor and a problem exists in that some cannot acquire certification from the national government (Principle 1). Relatively stringent certification standards have hindered the project and the leaders have failed to overcome this problem (in contrast to the case of Ajimu town which relaxed existing regulations). Furthermore, the business strategies that guide what products are sold and where

12 398 K. Mukai and R. Fujikura they are sold are not clear (Principle 2). There are also problems with the training of personnel and the development of business strategies (Principle 3). Moreover, accounting systems and marketing channels are not yet well established. As for the ODOP in Laos, although it is too early to evaluate the project, marketing channels have not yet been developed (Principle 1). Both in Malawi and Laos, a region-wide commitment for development is not evident. Since the concept of the OVOP project encourages the use of unique features from each village, one would not expect to see a one-size-fits-all approach. A certain degree of commonality does though exist, and conditions determining the success or failure of the OVOP projects in Oita Prefecture and OVOP projects overseas are similar. Moving forward it will be important to reaffirm the three principles for future OVOP projects implemented in developing countries, to confirm the attitude towards development at the local level, and to promote projects in a way that compensates for any aspects that are missing. Acknowledgements Throughout the course of research for this study we received materials from, and were able to interview, many personnel engaged in the OVOP movement in Oita Prefecture and the OVOP concept in Thailand, Kyrgyz Republic, and Laos, as well as JICA experts and volunteers. We would like to express our sincere appreciation for their assistance. This work was partly supported by Hosei Graduate School Research Grant for Overseas Studies. Disclosure statement No potential conflict of interest was reported by the authors. Notes on contributors Kanako Mukai is a Ph.D. candidate at the Hosei University Graduate School of Social Governance, Tokyo. She obtained her Master s degree in Environmental Management from Hosei University Graduate School in Ryo Fujikura is a Professor at Hosei University, Japan. He served as an officer in the Environment Agency (presently the Ministry of the Environment) of the Japanese Government between 1984 and From 1991 to 1993 he was seconded as an environmental expert to the Overseas Economic Cooperation Fund (presently the Japan International Cooperation Agency). He was an Associate Professor at the Kyushu University and later a Professor at Ritsumeikan University from 1995 until Notes 1. We call these activities projects throughout this article; however, in actuality they have been differently named or translated in each case. If the activity conducted in Japan were literally translated, it would be called a One Village One Product movement (undo). On the other hand, JICA named their overseas activities a variety of different things, including project (e.g. Laos and Malawi during ), programme (e.g. Malawi after 2011), or approach (e.g. Kyrgyz). Meanwhile, the Yokohama Action Plan refers to an initiative (see Note 3). This confusion might have arisen from slightly different characters of the activities between those conducted in Japan and overseas. The ultimate objective from the Oita Prefecture activities was to promote a local movement aiming to improve the local society without a fixed implementation period. JICA, on the other hand, aimed to develop local products by providing technical assistance within a defined time period. 2. Municipal amalgamation promoted by the national government from 1999 to 2010 reduced the number of municipalities in Oita Prefecture from 58 to 18.

13 Development in Practice Yokohama Action Plan was adopted at the sixth Tokyo International Conference on African Development (TICAD VI) on 30 May This plan includes an action to assist product development and export promotion in Africa, by further promoting One Village One Product (OVOP) initiative. 4. Morihiko Hiramatsu, interview by the author, 25 August Zenpachiro Mitoma, former mayor of Oyama, interview by the author, 30 May A competition was held to select the best umeboshi nationwide. This created the impetus to expand the market for plums in Oyama. 7. Hideo Ogata, former mayor of Oyama, interview by the author, 30 May For example, rather than trying to keep guests at the Japanese inn or hotel, staff would recommend other local shops and restaurants. Also, chefs at one inn would create new menu items for other hotels. Rather than using their own vehicles to transport guests, the Japanese inns aimed to partner with taxi drivers by giving them customers. This led to drivers participating in the environmental beautification efforts (e.g. keeping the train station vicinity clean) (Kitani 2004). 9. When introduced as a component of the rural regional policies of Japan s Ministry of Agriculture, Forestry and Fisheries, green tourism did not fare well since Japan does not have long vacationers whereby tourists stay at one location for a week or more. 10. Later, the national government used special measures to relax regulations on total floor space for guest rooms, thereby reducing the economic burden on farmers. 11. A tambon is the smallest administrative unit in Thailand, consisting of two or more villages. 12. The OTOP Product Champion (OPC) programme is a quality control programme where a review committee gives a product a rating from three to five stars based on having (1) quality suitable for export, (2) consistent production volume and quality, (3) a standard that meets customer satisfaction, and (4) certain criteria on product origins. As of 2004 a total of 7,450 products had acquired OPC certification (Fujioka 2006). 13. Thai baht (THB): 1THB = 0.03 United States dollars, US$ (as of 8 November 2012). 14. The Japanese government also began providing financial aid for OVOP projects after the Asian economic crisis of 1997, amounting to one million THB in total for all villages in Thailand. In this village, the funds were used for basket making (Takei 2007). 15. Factory worker income in the neighbouring province was about 5,000 THB. Basket makers were earning about 3,600 THB in net profits (Takei 2007). 16. Wood carver, interview by the author, 5 February Wood carving vendors and wood carvers, interview by the author, 5 February After numerous interactions, including Malawian government personnel being invited to Japan and the dispatch of Japanese experts from Oita Prefecture to Malawi through a bilateral technical cooperation, then-president Bakili Muluzi visited the Oita Prefecture as a part of his visit to Japan for the third TICAD meeting, in October In December 2003 a One Village One Product Secretariat was created within the Malawian Ministry of Agriculture as an implementation body (Yoshida 2006). 19. The law prohibits the production and sale of uncertified products. However, from the perspective of promoting small business, products will not be confiscated from shops if the producers are making an effort to acquire certification with the exception of illegal or unsanitary products (Mori 2008). 20. Malawian kwacha: 100MWK = US$ (as of 8 November 2012). 21. They lack basic knowledge. They are unable to separate household finances and business revenues, they do not understand basic cash flow, and they do not understand why it is important to know their cash flow. 22. Yasuyo Okumoto (Industrial Development and Public Policy Department, JICA), interview by the author, 10 May Akihisa Haraguchi (Project Leader), interviews by the author, June Akihisa Haraguchi (Project Leader), interviews by the author, June An initiative to add value to producer support in developing countries through the MUJI and JICA cooperative project. MUJI has 180 shops in 21 countries (as of 3 August 2012). MUJI trained local producers in Kenya and Kyrgyzstan how to manage supply chains, maintain high quality standards, and monitor sales trends in the international market. 26. OVOP products from Kenya were also selected. 27. Akihisa Haraguchi (JICA Project Leader), interview by the author, 19 October Akihisa Haraguchi (JICA Project Leader), interview by the author, 19 October A committee to select products for the OVOP brand, with 20 regional sectors participating. 30. Akihisa Haraguchi (JICA Project Leader), interview by the author, 19 October JICA volunteers, Japanese consultants, interviews by the author, February Akihisa Haraguchi (JICA Project Leader), interview by the author, 19 October 2012.

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