Partnerships in local economic development
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Partnerships in Local Economic Development. 5 th National Annual Local Government Conference 11-12 August 2008 Presented by Gerry Delany [email protected] How important is LED?. What do South Africans worry about most? Poverty, crime, unemployment 13,2 million have work

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Partnerships in local economic development

Partnerships in Local Economic Development

5th National AnnualLocal Government Conference

11-12 August 2008

Presented by

Gerry Delany

[email protected]


How important is led

How important is LED?

  • What do South Africans worry about most?

    • Poverty, crime, unemployment

  • 13,2 million have work

  • 7,4 million need work (4 m +3,4 m)

  • Creating nearly half million jobs p a

    • but 200 000 new job seekers each year

    • only gaining 300 000new jobs p a


Partnerships in local economic development

What does that look like?


It s important

It’s important!

Need to advance on many fronts

  • Macro-economic policies fundamental

  • National programmes important, but insufficient

  • Globalisation changing the rules, the engines of growth are cities & regions

  • Emphasis and resources shifting to local and regional development strategies


Emerging trends gwen swinburn

Traditional LED

Subsidise FDI

No legal frameworks

Manufacturing & sector interventions

Hard infrastructure

Little economic info

Public sector only

Supply driven

No inst mechanisms

Sectoral

Political boundaries

Third Wave LED

Biz environ, target potential

Enabling legal frameworks

Agric, manufacturing & service -> clusters

Soft infrastructure

Evidenced based stratplans

Partnerships

Demand driven

Supportive inst mechanisms

Territorial

Economic space

Emerging Trends (Gwen Swinburn)


Ways to grow an economy

Ways to grow an economy

  • Create new enterprises

  • Attract investment from outside

  • Grow existing businesses

    Which gets the most attention?


Partnerships in local economic development

Sources of new jobs

Attract

10-20%

Create

15-25%

Retain and expand

60-80%

Which should get most attention?


A balanced led strategy

A balanced LED Strategy

Needs three legs…

and a firm foundation


Balanced led strategy

Balanced LED Strategy

Three legs:

  • Retain and grow existing businesses

  • Create new enterprises

  • Attract investment from outside

    A firmfoundation by investing in:

  • Hard (physical) and soft (economic) infrastructure


10 guiding principles swinburn yatta africities 2006

10 Guiding principles(Swinburn & Yatta, Africities 2006)

  • Strategically planned

  • Territorial approach

  • Locally owned, designed and delivered

  • Partnerships both for design and implementation

  • Reinforced by integrated government action

  • Focus on conducive local business environment

  • Integrated multi-sector initiatives

  • Invest in hard, soft & institutional infrastructure

  • Growth & retention of local businesses & people

  • Projects by all - public, private, non-government


From planning to action

From planning to action

  • Economic planning options

    • economic development department

    • across all departments

    • consultants

    • task team

  • Who needs to take part?

  • Partnerships for design & implementation

    • Relevant data they believe and understand

    • Consensus on what to do

    • Partners can then do what they do best


Partnerships in local economic development

Pinetown BR&E Task Team


Typical br e findings

Typical BR&E findings

  • Crime

  • Run down unattractive environment

  • Rising transport costs

    • businesses want to relocate

  • Few local suppliers

    • especially IT, business services, stationary

  • Need skills - sales/customer, technical, business

  • No/defunct business organisation

  • Services, traffic problems

    • “municipality unresponsive”


Partnerships in local economic development

South Durban Basin action teams


Top 10 fdi location factors

Top 10 FDI location factors

  • Access to customers 77%

  • Social & political stability 64%

  • Ease of doing business 54%

  • Reliable infrastructure & utilities 50%

  • Availability of professionals 39%

  • Availability of managers 38%

  • Level of corruption 36%

  • Cost of labour 33%

  • Crime & safety 33%

  • Availability of skilled labour 32%

Multilateral Investment Guarantee Agency (MIGA)


Exclusion

Exclusion

  • Social

    • bridge gaps between groups

  • Spatial

    • infrastructure, leverage outside resources

  • Economic

    • connecting to markets

    • access to cheaper inputs

    • education and skills development

    • supporting intitutions

  • Not just LED but a national priority also

Jörg Meyer-Stamer


Partnerships in local economic development

Inkumane


Serious about led

Serious about LED

  • Understand importance – set targets

  • Get relevant information – together

  • Partnerships/teams for design & implementation

  • Balanced strategy

  • Address exclusion


Partnerships in local economic development

Development ultimately is not a matter of GNP or money or physical capital or foreign exchange,

but of the capacity of a society to tap the root of popular creativity,

to free up and empower people to exercise their intelligence and their individual and collective efforts to achieve a better life.

Kari Levitt

Professor Emeritus, McGill University


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