Developing countries could leapfrog through cluster processes which enable many small actors to join forces and overcome barriers that are formidable for each one of them. On the other hand, excessive difficulties could hamper the scope for and effectiveness of clusters, make them inward-minded, increase the risk of dominance by vested interests and political capture, etc. Lack of transparency and shortage of skills could severely weaken prospects for good governance in regard to clustering.
How much faith should be placed in processes of clustering in developing countries? Is clustering primarily an option for relatively more advanced developing countries, or what is the key to beneficial clustering in least developed countries?
What about revitalisation of traditional skills and sectors, what about clusters as a key to modernisation and technical upgrading?
What is crucial for a constructive contribution by foreign actors, such as aid agencies or multinational enterprises? What is key for these to contribute to favourable local development processes for the long term?
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