Escolar Documentos
Profissional Documentos
Cultura Documentos
ISBN 92-1-131721-5
HS/738/05E
Promoting Local Economic Development Strategic Planning
Volume 1: Quick Guide
92-1-131726-6 (Series)
92-1-131721-5
DISCLAIMER
The designations employed and the presentation of material in this publication do
not imply the expression of any opinion whatsoever on the part of the Secretariat of
the United Nations concerning the legal status of any country, territory, city or area
or its authorities, or concerning the delimitation of its frontiers or boundaries
regarding its economic system or degree of development. Excerpts may be
reproduced without authorization, on condition that the source is indicated.
Designed and printed in Nairobi by the United Nations Office at Nairobi
Cover photocollage photographs by: Panos Pictures - Aerial view of urban sprawl in
Mexico Mark Henley / Community organiser with calculator in Mali Crispin
Hughes / Crowd in Indonesia Mark Henley / Black market money change in China
Mark Henley / Coal power plant pylons in Mongolia Mark Henley
The publication of the Local Economic Development Series was made possible
through the financial support of the Dutch Government.
Published by:
United Nations Human Settlements Programme (UN-HABITAT)
P.O. Box 30030 GPO 00100
Nairobi, Kenya
Fax: (254-20) 623091 (TCBB Office)
E-mail: tcbb@unhabitat.org
Web site: www.unhabitat.org
and
EcoPlan International Inc.
131 Water Street, #208
Vancouver, BC Canada V6B 4M3
Phone: 604-228-1855 Fax: 604-228-1892
E-mail: epi@ecoplanintl.com
www.ecoplanintl.com
Foreword
thank in the achievement of this training series: from the funding agencies
the Canadian International Development Agency (CIDA) and the Dutch
Partnership Programme, to the contributing members of the virtual round
table, to the dozens of trainers and members of local government, private
sector and civil society. Their wisdom and pragmatism permeate the
documents in this series. Due acknowledgement must also go to Gulelat
Kebede and the Training and Capacity Building Branch (TCBB) team of
UN-HABITAT who guided and contributed to the project while bringing it to
fruition. Final gratitude is reserved for principal author William Trousdale of
EcoPlan International, Inc. (EPI), as well as to the many co-authors who
undertook the challenge of articulating this innovative training series.
IV
Preface
Training Series uses case studies and real world examples to encourage the
evolution of learning-by-doing. The ultimate success and realization of these
outcomes however lies on the creativity of local establishments and actors local authorities, training institutions, informal sector operators, businesses,
and civil society organizations-in adapting the tools to the realities on the
ground and using this series as a living document, keeping it enriched
through new insights, knowledge and experience.
So, if you have found yourself asking:
Gulelat Kebede
LED Project Coordinator
Training and Capacity Building
Branch, UN-HABITAT
VI
Acknowledgements
vii
William Trousdale
Principle Author
VIII
Table of Contents
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .iii
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .v
Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .vii
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
ix
Introduction
his document, Volume 1: Quick Guide, is the final document in the Local
Economic Development Series - Promoting Local Economic
Development through Strategic Planning. It is a companion piece to the
documents described below: Volume 2 Promoting Local Economic Development through
Strategic Planning Manual: concepts and process is an
approach to LED in a 10-step framework
Volume 3 Promoting Local Economic Development through
Strategic Planning ToolKit: Support Tools provides tools to
facilitate each step in the framework
Volume 4 Promoting Local Economic Development through
Strategic Planning Action Guide: Ideas and Case Studies
supplies practical action ideas and case studies.
To find more details and references on anything in The Quick Guide,
go to The Manual. The Quick Guide serves as an overview for busy executives
or those not intimately involved with planning for local economic
development. This Training Series is part of a larger UN-HABITAT Training
Manual (see Training Resource Link 1: UN-HABITAT Training Manuals at
http://www.unhabitat.org).
Overview
What is Local Economic Development?
Local economic development (LED) is a participatory process in which local
people from all sectors work together to stimulate local commercial activity,
resulting in a resilient and sustainable economy. It is a way to help create
decent jobs and improve the quality of life for everyone, including the poor
and marginalised.
Local economic development encourages public, private and
civil society sectors to establish partnerships and collaboratively find
local solutions to common economic challenges. The LED process seeks
to empower local participants to effectively utilise business enterprise,
labour, capital and other local resources to achieve local priorities (e.g.,
to promote quality jobs, reduce poverty, generate municipal taxes). LED
practitioners have many actions available to them. For LED to be
successful, participants and practitioners should have knowledge of
these actions and be committed to a process to achieve sustainable
results. A LED strategy is a process-oriented and non-prescriptive
endeavour incorporating:
Local values (poverty reduction, basic needs, local jobs,
integrating social and environmental values);
Economic drivers (value-added resource use, local skills
training, local income retention, regional co-operation); and
Development (the role of structural change, quality of
development).
This suggests that LED is not about quick fixes or generating
wish lists. It requires a practical understanding of what the local area
does well and what it has to offer; where its weakness and gaps lie, what
outside threats and opportunities exist; and, what the local area wants
and needs. Undertaking LED requires knowledge of a local areas regional
economic linkages, including its competitive advantage and cooperation
opportunities. Success in LED depends on encouraging a business
environment where markets can operate efficiently, but appropriately,
within the local context. In most local areas (especially in developing or
transition countries), micro, small and medium-sized enterprises should
be strongly supported and encouraged to take the lead as they play a key
role in creating new local employment, wealth and tax generation. Visible
results can help maintain momentum in the short term, and simply
initiating a single project focusing on one critical issue might pave the way
for long-term success. Ultimately, LED is about sustainable development
in the long-term, for it takes time to change local conditions and mind
sets, build capacity, organise participatory processes and empower
stakeholders, especially the poor.
2
P R O M O T I N G L O C A L E C O N O M I C D E V E L O P M E N T T H R O U G H S T R AT E G I C P L A N N I N G Q U I C K G U I D E
EW
ERE AR E NOW?
WH
Stakeholders
&
Participation
ON
PU
ARTICIPA
IC P
TI
BL
Visioning
EW
Monitor &
Evaluate
I N F O R M AT I
8
Organisation &
Implementation
Strategy
Development
Issues &
Objectives
WE WANT TO
GO
?
10
E WE ARRIVED?
HAV
1
Adjust
& Modify
Situation
Assessment
DO
ERE
WH
Getting
Started
Action
Planning
HO
WD
O W E G ET THER
E?
O V E RV I E W
Business-enabling Environments
Good practice in local economic development suggests that use of public
resources and government intervention (e.g., public spending, access to
services) should focus on improving the basic business environment and
reach all levels of society (e.g., rather than supporting individual companies).
This means that capable institutions at the local level are essential for
effective LED. Beyond simple lack of capacity, expense (time and money) and
over-regulation (complex regulations) are the devastating effects of
cronyism1, nepotism2 and corruption.
Recent LED research suggests that strong and appropriate
institutions are necessary, and governments should pursue four concepts in
LED:
First, support for institutions and strategies should combine
governance with culture, to gain respect, legitimacy and
acceptance of the local citizens.
Second, there is a need for clear decision rules and procedures
in government, such as effective business codes and land use
zones that promote long-term plans and a clear and stable
economic playing field.
Third, the political environment must be safe. Poor economic
policies and weak government systems can seriously impact
local economic development efforts by raising risks and
increasing production costs. For many investors, consistency,
predictability and clarity of government policies and
regulations are as important as a business environment with
few restraints.
Fourth, enabling environments should have a high ease of
business entry and efficient regulation enforcement. Not
surprisingly, researchers have found that countries with
heavy regulation and weak enforcement have higher rates of
corruption, a larger informal economy, are less democratic
and are more likely to be poor.
1
2
Favouritism (appointed positions, jobs, contracts) to unqualified friends rather than qualified individuals or firms.
Favouritism (appointed positions, jobs, contracts) to unqualified family members rather than qualified individuals or firms.
P R O M O T I N G L O C A L E C O N O M I C D E V E L O P M E N T T H R O U G H S T R AT E G I C P L A N N I N G Q U I C K G U I D E
See Promoting Local Economic Development through Strategic Planning - Vol 4 - The Action Guide.
O V E RV I E W
the other, not everybody has been able to take advantage of the benefits,
bringing the subsequent income inequalities and adverse impacts into sharp
focus. Yet, poverty is caused by many factors and attributing the problem to
globalisation can be seen as externalising a problem and limiting the options
available. Just as market economics is not a zero-sum game (somebody has
to lose for somebody to gain), this manual approaches poverty alleviation as
more of a challenge in improving democracy by incorporating the poor in the
development process. It encourages a pragmatic approach to addressing
globalisation and poverty reduction through research into markets, fair
trade, information sharing and responsive governments that incorporate
participatory planning into the decision-making process.
Substantive
1.
9.
2.
Get commitment
3.
4.
5.
6.
7.
Incorporate accountability
8.
Incorporate culture
P R O M O T I N G L O C A L E C O N O M I C D E V E L O P M E N T T H R O U G H S T R AT E G I C P L A N N I N G Q U I C K G U I D E
Task 2:
Task 3:
Task 4:
Task 5:
Task 6:
P R O M O T I N G L O C A L E C O N O M I C D E V E L O P M E N T T H R O U G H S T R AT E G I C P L A N N I N G Q U I C K G U I D E
Task 2:
Task 3.
Financial Capital
Financial: Services, Access (credit)
Natural Capital
Resources: Primary resource, Resource process
Living systems: Quality of life, Aesthetics
Ecosystem Services: Economic support
Physical Capital
Technology, Machines, Tools, Factories: Plant, factory and business technology assessment
Built Environment and Infrastructure: Geographic, Buildings and Infrastructure (roads, sewer and
water, utilities)
10
P R O M O T I N G L O C A L E C O N O M I C D E V E L O P M E N T T H R O U G H S T R AT E G I C P L A N N I N G Q U I C K G U I D E
Task 3:
Task 4:
12
P R O M O T I N G L O C A L E C O N O M I C D E V E L O P M E N T T H R O U G H S T R AT E G I C P L A N N I N G Q U I C K G U I D E
M O D U L E T W O : W H E R E D O W E WA N T T O G O ?
13
Task 4.
Stakeholder
Implementation Group
Initial Actions
Action 2.
14
Additional Project headings can be found on the World Bank Local Economic Development Web site at:
http://www.worldbank.org/html/fpd/urban/led/implementing.html .
P R O M O T I N G L O C A L E C O N O M I C D E V E L O P M E N T T H R O U G H S T R AT E G I C P L A N N I N G Q U I C K G U I D E
Action 3.
Demonstration Projects
Action 4.
Action 5.
Study Tours
Action 6.
Action 7.
Simple upgrading of
local business areas
Action 8.
LED Publications
Advanced Actions
Marketing and Knowledge Management
Action 9.
Knowledge Management
Action 10.
Marketing and Promotion Marketing is a process and a product that uses information
to identify customers, position a local area, and sell the
local area and/or its products. Promotion is part of
marketing. Marketing strategies combine other actions
(publications, upgrading, knowledge management) in a
strategic way for specific market purposes.
Incubators
Action 12.
15
Action 13.
Action 14.
Small Business
Development Centers
Physical infrastructure
investment
Action 16.
Clusters
Action 17.
Industrial / Business /
Science and Eco- Parks
Action 18.
Action 19.
Linking of permits
16
Creating LED
Organisations
P R O M O T I N G L O C A L E C O N O M I C D E V E L O P M E N T T H R O U G H S T R AT E G I C P L A N N I N G Q U I C K G U I D E
Action 21.
Co-operatives
Action 22.
Partnerships
Action 23.
Institutional Cooperation
Mechanisms
(also see
Action 21)
Financial Co-op
Action 24.
Micro-credit
Action 25.
Finance
Investment
Action 26.
Action 27.
Broad-based Actions
Action 28.
Action 29.
Sustainable Tourism
Development
17
Action 30.
Urban-Rural Linkages
Action 31.
18
P R O M O T I N G L O C A L E C O N O M I C D E V E L O P M E N T T H R O U G H S T R AT E G I C P L A N N I N G Q U I C K G U I D E
Task 5.
Task 6.
Task 7.
Chapter 1: Introduction
Chapter 3: Where do we
want to go?
19
Task 2:
Task 3:
Task 4:
20
P R O M O T I N G L O C A L E C O N O M I C D E V E L O P M E N T T H R O U G H S T R AT E G I C P L A N N I N G Q U I C K G U I D E
Task 5:
Task 6:
Task 7:
Task 8:
21
Evaluation is. . .
P R O M O T I N G L O C A L E C O N O M I C D E V E L O P M E N T T H R O U G H S T R AT E G I C P L A N N I N G Q U I C K G U I D E
Task 2:
Task 3:
Task 4:
M O D U L E F O U R : H AV E W E A R R I V E D ?
23
Web Links
UN-HABITAT www.unhabitat.org
EcoPlan International, Inc. www.ecoplanintl.com
World Bank
www.worldbank.org
International Labour Organisation (ILO)
www.ilo.org
24
P R O M O T I N G L O C A L E C O N O M I C D E V E L O P M E N T T H R O U G H S T R AT E G I C P L A N N I N G Q U I C K G U I D E
ISBN 92-1-131721-5
HS/738/05E
Promoting Local Economic Development Strategic Planning
Volume 1: Quick Guide
92-1-131726-6 (Series)