Economic Development Action Plan Swot Analysis by yek12436


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									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
• 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

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
               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
  – 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
• M&E critical.
     Good Practice for Strategy
• 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
• Strategy owned by local gov.
• Political, financial and technical support
  from all levels;
• Integrated approach to LED M&E.

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