Local Economic Development Presentation Outline • What is local economic development (LED) • Local Economic Evolution • What doesn’t work…. then what does • How to do LED • Good practices for success Local Economic Development ? Local economic development is about local communities working to achieve sustainable economic growth that ensures increases in employment, prosperity and quality of life for their community. Local Economic Development: Some Misconceptions • It isn’t rocket science and doesn’t have to be expensive • It isn’t all about high-tech and is about small, medium as well as large cities • It is inclusive, collaborative and competitive • It is practical, involves all who want to play and can be fun! LED Evolution Wave Aims Tools First Wave Focus on the attraction of Subsidised loans, direct firm payments, tax 1960’s to early mobile manufacturing breaks, expensive and competitive low road 1980’s. investment from outside the industrial recruitment programs area. Second Wave Focus moved towards Using both direct firm payments, providing 1980’s to mid retaining and expanding managed workspace, advice and training for 1990’s existing (indigenous) SMEs, technical support and business start up industries. support. Third Wave Focus shifting from direct Detailed in next slide. Late 1990’s firm support to making the Note adoption of third wave techniques has not onwards entire business milieu more eliminated either good or bad practice continuing conducive to business growth to be used from 1st and 2nd waves. and retention. Third Wave Features • Strategic planning, integrated and holistic • Public/private partnerships • Networks that leverage effort • Collaboration then competition • Grow own rather than import jobs • Whole business environment counts not individual firms per se How to do LED ? Five stage approach: 1. Organizing the effort; 2. Doing the local economic assessment; 3. Creating the LED strategy; 4. Implementing the LED strategy; 5. Reviewing the LED strategy. LED: STAGE 1 • Identify the development stakeholders; • Identify champions; • Establish working groups and steering committees to ensure that both formal and informal structures are in place; • Establish LED staff teams and political supporting processes. LED: Stage 1 Governments Private Sector Community Sector Supra national Chamber of Commerce Individuals National Board of Trade Community groups State Business associations Church groups Regional Large corporations Professional associations City/County SMEs Educational institutions Town council Private developers Youth groups Health Authorities News groups Environmental groups Education Boards Voluntary service groups Transportation authorities LED: Stage 2 • Assessment categories: – Territorial endowment; – Human Resources; – Economic Competitiveness; – Institutional Milieu LED: Stage 2 • SWOT analysis: – S: competitive wage, skilled work force, educ. Institutions, good infrastructure;productive firms; – W: worsening poverty, inadequate infrastr, limited access to credit, health issues; – O: tech change, trade arrangements, etc; – T: loss of markets, downsizing business, etc LED: stage 3 Elements of the strategy: – Vision ; – Goals; – Objectives; – Programs; – Projects and action plan What Doesn’t Work! • Financial inducements to attract firms • “Shotgun” (untargeted) business recruitment/inward investment promotion • Big government based on centrally conceived and related direction • Relying on foreign direct investment, business retention subsidies or grant led projects • Relying on “low road” techniques e.g. cheap labor and capital Strategy Development: What Works • Holistic approach (social, environmental & economic) • Partnerships of multiple players make effective strategy making, private sector participation essential • Leadership by committed respected individual • Capacity building in all three stakeholder areas • Multi-level government interventions add value • Sector and cluster analysis as a way to target effort Bold = identified critical success factors Clusters in Practice: Good and Bad Do Do not • Facilitate clusters • Build clusters from nothing • Use them as demonstration • See clusters as static end goals models • Be committed to an individual • Broaden clusters by association firm or cluster survival building (vertical and • Fund single clusters in the horizontal) long term • Provide capacity building • Provide unfocused support/ support for cluster development intelligence • Provide pump priming funding • Focus on innovation when the • Find an industry champion/ key issue is modernization leader • Ensure industry input LED: Stage 4 • Implementation guided by 3 documents: 1. LED strategy; 2. Implementation plan; 3. Individual Project action plans. LED: stage 5 • Annual review of the strategy; • Stricter monitoring of the implementation programs; • M&E critical. Good Practice for Strategy Success • Integrated approach; • Strategy built by all relevant partners and based on a shared vision; • Range of of initiatives short, medium and long term to catalyze partnerships; • Effective local leaders; • Capacity building of mgt. and “on the ground teams Good Practice for Strategy Success • Strategy owned by local gov. • Political, financial and technical support from all levels; • Integrated approach to LED M&E.
Pages to are hidden for
"Economic Development Action Plan Swot Analysis"Please download to view full document