Local Economic Development

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Local Economic Development

• A View from the World Bank

Presentation by Gwen Swinburn Local Economic
Development Specialist The World Bank Group
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Outline

• What is LED?
• Why now?
• What is our approach?
• How we are doing it
• Demonstration projects
• Challenges

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What is LED?

• Local Economic Development is the process by
  which public, business and non-governmental
  partners work collectively to create better
  conditions for economic growth and employment
  generation.
• The aim is to improve the quality of life for
  all.

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Why LED Now?

• Decentralization
• Democratization
• Territorial production systems
• Good governance
• Good practice
• Need to find better project sustainability

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Why LED in the World Bank Now ?

• Urban Strategy
• Rural Development
• Private Sector Development Needs
• Sustainability of Mining Activities
• Sub-national Fiscal Reform

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What is our Approach?

• Research OECD good practice
• Pilot demonstration programs
• Good practice in Developing countries
• Training
• Knowledge sharing

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How we are doing this
One-to-one city advising
Sharing
Single country
city networks
Multi-country city networks
Seminars,
workshops and study tours
Training for in-country
consultants and train the trainers
Face-to-face LED training
Knowledge
Distance learning LED training
Web-based LED training
LED knowledge World Bank web site/printed
materials
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Local Economic Development Capacity Building and
Knowledge Sharing
Programs
Target Audience

• Knowledge Management
• To ensure Bank staff and clients have the
  knowledge needed to support the successful
  development and implementation of LED strategies
• To proliferate current LED knowledge and good
  practice
• To develop new knowledge in the area of LED
• Training
• To ensure Bank staff and clients have the skills,
  knowledge and motivation needed to design and
  implement successful LED strategies
• Advisory Service
• To ensure cities and Bank staff have targeted,
  relevant assistance as they develop their skills
  in LED
• To support innovative pilot programs and projects

• Bank Staff
• Need to understand LED from a strategic
  perspective
• Need to be able to advise clients on LED
  strategies
• Need to recognize need and be able to build LED
  into Bank-funded projects
• Local, National and State Governments,
  Bilaterals/Multilaterals and NGOs
• Need to understand LED from strategic management
  and practitioner perspectives
• Need to know how to implement LED within their
  own context
• Local Stakeholders
• Need to understand LED so that they can
  contribute to development and implementation of
  city LED plans
• Need to understand the benefits to them if they
  do participate

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Demonstration Programs (1)

• Mostar (BiH) City Development Strategy
• Part of broader Cities Alliance family
• Initial one-year program
• One-to-one city advising from WB expert
• Supporting external, international-funded LED
  strategy process
• Multi-donor funded through Cities Alliance, WB,
  OSCE and Konrad Adenaur Foundation
• Emphasis LG capacity building and basic business
  enabling environment and strategic planning
  skills development

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Demonstration Programs (2)

• Bosnia SME Local Business Enabling Environment
  Improvement Program
• Network of 3 cities
• One-year program
• Facilitated by WB expert, regional consultants
  and local Multi-donor Project Development
  Facility
• Multi-donor funded but LG expected to sign
  contract and contribute money
• Emphasis Forming functioning stakeholder
  partnerships focus on PSD business like
  approach

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Demonstration Programs (3)

• Cities of Change
• Network of 5 cities Bulgaria, Latvia, Poland,
  Hungary and Slovakia
• 2-year facilitated learning program (1st stage)
• WB expert and regional consultants
• Funding from WB and Bertelsmann Foundation
• Emphasis Comprehensive LED strategic planning

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Capacity Building Training Materials
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http//www.worldbank.org/urban/led
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External Connections
DFID
CIDA
IADB
GTZ
Bertelsmann Foundation Ford Foundation SOROS
USAID
Local Economic Development
European Union
ICMA
INTA
IEDC
ILO
OECD - LEED
EURADA
EUROCITIES
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Challenges
For LED generally Monitoring and evaluation of
holistic strategies
For LED in our client countries Local Government
Capacity Polices to address the informal
economy Instruments to diagnose the local
business enabling environment Lack of experienced
LED consultants and practitioners
Challenges
For LED in the World Bank How to mainstream LED
programs in World Bank Skills shortage in
strategic LED