LED Center
The Local Economic
Development Center is devoted to providing beneficial information
of benefit to Network members and the general public
concerning local economic development (LED). It includes
basic information about the nature of LED and why it is important
to
local communities. The LED Center will be used to post information
of a technical nature that is meant to be of assistance to
communities in developing their own LED strategic plans.
See below the PDF file containing a
World Bank publication entitled, “Local
Economic Development: LED Quick Reference.” This document,
which can be downloaded, is very useful for communities that
are in the early process of considering how to develop an LED
strategy
for themselves.
Download the LED Quick Reference Guide here
Download the LED Strategic Plan Survey, 2004
Coming soon: The LED Center will also include
brief descriptions of existing LED plans of communities along
the corridor,
together with local contacts for further information.
Overview
of LED
Finding the answers for sustainable development of underdeveloped
or developing nations and peoples requires a thorough understanding
of the impediments to and potentials for economic development
so that creative solutions can be designed and delivered.
LED is an
important, perhaps the most important, key to sustainable
growth, the reduction of poverty, and the elevation of indices
of well
being of a people and society. But first some definitions:
What is Economic Development? Jane
Jacobs, the noted urbanist and economist, defines development
as “significant qualitative
change.” Economic development then is “qualitative
change in the economy”.
Local Economic Development (LED) is the process by which
public, business and non-governmental sector partners work
collectively
to create better economic conditions for a locality and its
region. The objectives of the LED process can be economic
growth, business
creation, employment generation, or combinations thereof.
The key to the process is the public-private partnership
between
local
government, private business, business associations, NGOs,
and other stakeholders.
Focusing on local economies in development
work is crucial because, in our view, local economies are the
only “true” economies.
In contrast, a national economy is a macroeconomic generalization,
defined as the sum of a nation’s production of goods
and services, that is useful for purposes of public policy
development,
measurement, and design of economic interventions. But changes
in national economies only happen as the economies of cities
and their regions change. “A national economy is
the sum of a nation’s city economies and the past and
current secondary effects of city economies upon the economies
of towns, villages
and wildernesses,” according to Jacobs.
Who Makes Local Economic Development Happen? In
a market economy, the engines of economic development are primarily
private businesses
that create wealth and jobs. But the private sector cannot
succeed without favorable business conditions in which to
thrive and
grow. Local governments and other public sector actors have
a major role
to play in helping to establish and maintain those favorable
business conditions so that firms in the city’s region can compete
successfully with firm’s from other regions.
What are some other advantages of a focus on Local Economic
Development?
- A focus on LED fosters efforts towards decentralization
and is antithetical to government centralization that is
so prevalent in many developing nations.
- LED supports civil society development. LED is a tangible process
through which local government, private businesses and
their interests, NGOs, labor interests and private citizens can work together
collectively
to develop their economic environment.
- LED supports democracy building because it places mayors and other
locally elected officials at the center of economic development
policy-making for the community, where they belong.
- LED relates to community development programming and essentially
all development programs related to infrastructure, public
facility and social program delivery. All either contribute to or are
affected by the local economy.
Our Approach to Local Economic Development
For a locality or region that is new to Local Economic Development,
the first step concerns organization of the effort
(who is involved and how it is staffed). Next, a community
or regional profile
and competitiveness (SWOT) assessment must be undertaken
to catalog the community’s assets and liabilities and assess
the economic development potential of the region. After this analysis
is completed, development of an LED strategy is undertaken, based
on
the conclusions
of the profile and assessment. The process then enters
the implementation stage. Finally, monitoring and evaluation is undertaken
in
a
systematic way that will afford continual feedback
on the effectiveness of
the strategy. This allows for mid-course corrections
in the strategy and its implementation as it unfolds. Emphasis is
always on making
the process a participatory one, with inclusion of
all significant stakeholders in the community or region.
Normally, training is an important ingredient in the initial
phase of an LED program so that key persons and institutions
fully understand
the concept and process as well as their particular
role and the roles of other stakeholders. Organizational development
includes
a review of alternative models for LED organization
and
selection of the one that best meets community needs.
LED Strategies for
Municipalities of Corridor VIII Countries
Municipality of Shkodra
click here
Municipality of Lezha, Albania
click here
Municipality of Smolyan, Bulgaria
click here
LED Reference List
Here are some references of books, manuals, papers and
other resources related to our approach to LED
that can be helpful
to localities
interested in developing their own LED strategic
plan:
Blair, John P., “Local Economic Development—Analysis & Practice,” Sage
Publications, 1995
Jacobs, Jane, “The Economy of Cities,” Random
House, 1969
Jacobs, Jane “The Nature of Economies,” Random
House, 2000
Jacobs, Jane “ Cities and the Wealth of Nations,” Random
House, 1984
Urban Development Unit, The World Bank, “Local Economic Development: LED--
Quick Reference,” The World Bank, 2002
Nichols, J. Hugh, “A Strategic Economic Development Planning Process for
Local Government in Albania, “ USAID Project (1996)
England, Thomas C., “Strategies for Creating Public Private Partnerships
for Local Government—The Role of the Mayor (1990).
Presentation at the 4th Great Cities of Americas Conference,
Buenos Aires
Peirce, Neal R., “CITISTATES—How Urban America Can Prosper In A Competitive
World,” Seven Locks Press (1993)
ICMA, “Building Citizen Involvement—Strategies for Local Government” (1995)
A training handbook.
National Council for Urban Economic
Development, “An Introduction to the
Economic Development Process,” (1980)
Kemp, Roger L., (editor), “Strategic Planning in Local Government—A
Case Book,” American Planning Association (1992)
Rusk, David, “Cities Without Suburbs,” Woodrow
Wilson Center Press (1993)
Belton, Hugh, “Becoming an Entrepreneur: A Handbook for Assessing Business
Opportunity (1996) An ME&A manual for business development
Fairbanks, Michael, and Lindsay, Stace, “Plowing the Sea: Nurturing the
Hidden Resources of Growth in the Developing World,” Harvard
University Press (1997)
Porter, Michael E., “Competitive Strategy: Techniques for Analyzing Industries
and Competitors,” Free Press (1998)
Porter, Michael E., “The Competitive Advantage of Nations,” Free
Press (1998)
Timmons, Jeffrey, with Smollen and Dingee, “New Venture Creation: Entrepreneurship
In The 1990’s,” Irwin (1985)
The Urban Institute, “The Community Builder’s Handbook, “ Urban
Land Institute (2000)
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