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{{citation style|date=March 2013}}'''Local
==Definitions for local economic development==
There are several definitions for local economic development. In one of the early concept notes on LED, the World Bank in 2006 defined LED as "the process by which public, business and non-governmental sector partners work collectively to create better conditions for economic growth and employment generation. The aim is to improve the quality of life for all in the community".<ref name=":0">{{Cite book |last1=Swinburn |first1=Gwen |url=http://siteresources.worldbank.org/INTLED/423069-1099670772921/20738133/led_primer.pdf |title=Local Economic Development: A Primer Developing and Implementing Local Economic Development Strategies and Action Plans |last2=Goga |first2=Soraya |last3=Murphy |first3=Fergus |publisher=[[World Bank]] |___location=Washington D.C. |publication-date=January 2006 |language=en |archive-url=https://web.archive.org/web/20170329084338/http://siteresources.worldbank.org/INTLED/423069-1099670772921/20738133/led_primer.pdf |archive-date=29 March 2017 |url-status=dead}}</ref>
In 2007 GTZ (now called [[Deutsche Gesellschaft für Internationale Zusammenarbeit|GIZ]]) refined the definition of the World Bank by describing LED as "a process to mobilise stakeholders from the public and the private sectors as well as from civil society, to become partners in a joint effort to improve the economy of a defined subnational territory and thus increase its competitiveness".<ref>{{Cite book |last1=Rücker |first1=Anja |url=http://www2.gtz.de/wbf/doc/gtz_LRED_manuscript_ii.pdf |title=Local and Regional Economic Development |last2=Trah |first2=Gabriele |publisher=GTZ |___location=Eschborn |publication-date=February 2007 |language=en |archive-url=https://web.archive.org/web/20070818191147/http://www2.gtz.de/wbf/doc/gtz_LRED_manuscript_ii.pdf |archive-date=18 August 2007 |url-status=dead}}</ref>
The [[Swiss Agency for Development and Cooperation]] defined LED as "a broad set of activities, which aim at creating a competitive advantage for an urban or rural territory and for the enterprises in this territory to improve territorial attractiveness and economic wellbeing". This definition was developed for the SDC by Mesopartner, a research consultancy specialising in LED that was co-founded by the late [[Jörg Meyer-Stamer]].
Different developmental organisations tend to emphasise elements in the definitions that are aligned with their specific mandate. For instance, [[United Nations Human Settlements Programme|UN-Habitat]] defines LED "a participatory process where local people from all sectors work together to stimulate local commercial activity resulting in a resilient and sustainable economy." and as "an approach to help create decent jobs and improve the quality of life for everyone, including the poor and marginalized".<ref>UN-Habitat (2004), "The Quick Guide, Strategic Planning for Local Economic Development", June 2004</ref>
The [[International Labour Organization]] (ILO) defines LED as "a participatory development process that encourages partnership arrangements between the main private and public stakeholders of a defined territory, enabling the joint design and implementation of a common development strategy, by making use of the local resources and competitive advantage in a global context, with the final objective of creating decent jobs and stimulating economic activity".<ref>Rodríguez-Pose, Andrés (2001), The role of the ILO in implementing local economic development strategies in a globalized world, Department of Geography and Environment, London School of Economics, London, 31 December 2001</ref>
From these different definitions of LED there are several core elements that are common:
* It takes place within a defined territory
* It has a strong bottom-up orientation, it is driven by local stakeholders
* It involves a range of stakeholders from the public and private sector, as well as from civil society
* It is about improving the competitiveness and attractiveness of the ___location
* It is undertaken for the purpose of fostering economic well-being
With the rapid changes in global, national and local economies, increasingly definitions of LED are adding aspects of inclusiveness, sustainability and resilience. Many international development organisations see LED as complementary to other support measures, such as improving governance, reducing inward migration and improving urban development. International development projects or national government projects can help to establish or enhance LED locally, but should not replace or displace local effort. As a consequence, the aim of an externally support should be to establish an effective LED process locally, not to solve the problems of the locality with regards to its economy.
There are more definitions out there. Many countries, development organisations and even locations have created their own definitions.
==Approach==
There are two broad approaches to LED. One is about developing a strategy for a ___location, mainly through planning. This is often the preferred approach by international development organisations and governments in developing countries.<ref name=":0" /> The other approach is a more iterative approach where local stakeholders jointly learn about what is possible in the local context. In this approach a broad range of private and public stakeholders cooperate to improve local conditions to create jobs and local wealth.<ref>{{Cite journal |last1=Cunningham |first1=Shawn |last2=Meyer-Stamer |first2=Jörg |date=2006-06-30 |title=Planning or doing local economic development? Problems with the orthodox approach to LED |url=http://www.ajol.info/index.php/ai/article/view/22449 |journal=Africa Insight |volume=35 |issue=4 |doi=10.4314/ai.v35i4.22449 |issn=1995-641X|url-access=subscription }}</ref>
According to the [[International Labour Organization]] (ILO), national and local governments, as well as enterprises and other organisations have to rethink development strategies to cope with ongoing events such as [[globalization]]. In contrast to traditional development policies, Local Economic Development strategies promote local dialogue and enable people to be more proactive; help to make local institutions better contribute to development; make economic activity dependent on the comparative advantages of a specific territory, generating development by firms more capable to withstand changes in the global economic environment rather than top-down development imposed by national planners.<ref>http://learning.itcilo.org/entdev/led/pub/home.aspx?l=Eng&IdSezione=0 ILO Website on LED</ref> Economic development activities in developing countries tend to be unidisciplinary, initiated and implemented by just one ministry or agency. An advantage of LED approaches is that they facilitate a multidisciplinary approach. [[South Africa]] has been particularly active in promoting the concept.<ref>http://led.public-hub.com/ The South African LED Network</ref>▼
▲According to the
=== Local economic development responses to the COVID-19 pandemic ===
With the COVID-19 pandemic and associated restrictions impacting the economies of many cities and towns, local economic development responses played a particularly important role. Key approaches included support to keep businesses afloat during lockdowns and other restrictions, efforts to reactivate cities after restrictions eased, and a focus on long-term economic development. Lessons that emerged from the experience of the pandemic include the need to respond and iterate rapidly, the importance of collaboration between stakeholders and different tiers of government, and the need to maintain a focus on multiple time horizons, even in the midst of the crisis.<ref>{{Cite journal |last=Wear |first=Andrew |date=2023-01-01 |title=Economic development in a pandemic : Reflections from Melbourne, 'the world's most locked-down city' |url=https://www.ingentaconnect.com/contentone/hsp/jurr/2023/00000016/00000004/art00003 |journal=Journal of Urban Regeneration & Renewal |volume=16 |issue=4 |pages=375–384}}</ref>
===LED in South Africa: pro-poor vs. pro-growth===
Many LED interventions in South Africa have taken a direct pro-poor intervention, leading to questions regarding whether this approach is more effective in terms of poverty relief than the spin-offs of more pro-growth focused endeavours. The Microeconomic Reform Strategy is a central component of the 2005 policy guidelines for implementing LED in South Africa.<ref name="World Bank-Netherlands Partnership Program 2005">World Bank-Netherlands Partnership Program (BNPP), 2005. "Investigation of Pro-Poor Local Economic Development in South Africa."</ref> This strategy seeks to address the inequalities in the country and to build on the RDP (Reconstruction and Development Program), by focusing on issues of the geographical spread of activity, integration, black economic empowerment, knowledge-led growth, skills development and state responsiveness.
In addition to the laws and policies directly supporting and encouraging pro-poor
LED, other instruments, such as
====Integrated
In terms of what an '
* The municipal council's vision for the long-term development of the municipality. Special emphasis is to be placed on the
* An assessment of the existing level of development in the municipality. This should include the identification of any communities which do not have access to adequate basic services
* The council's long-term development vision and should consider the need for social and economic advancement of disadvantaged sections of the community
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* The council's spatial development framework, which should guide the way in which the physical area will be developed
It is suggested that IDP can assist in the promotion of socio-economic development in at least three ways; first, in helping
====Public participation====
A participatory approach to LED involves the inclusion of different stakeholders so that their views, concerns and issues can be included in the planning process. This is important because it is here that networks, partnerships and information sharing occur that make better, more practical, strategies possible.<ref>.ND Ngubane, 2005: "Promoting Local Economic Development through Strategic Planning". Volume 1.</ref>
Variables to be considered when conducting this inventory should reflect the components of a functioning economy, such as human and social capital, financial capital, physical capital and [[natural capital
In South Africa, municipalities are specifically required to involve communities in the affairs of the municipality, to provide services in a financially sustainable manner and to promote development.<ref>RSA, 2000:
====Conclusions====
There is entrenched policy support for
Given the dual challenges faced by South African society of needing to address both [[chronic poverty]], yet also to achieve economic growth and global competitiveness, from a policy perspective it would seem that the approach adopted by Mangaung, Cape Town and eThekwini is most appropriate. These municipalities took a middle of the road approach, focusing their LED strategy on addressing both issues of poverty and growth and the fundamental linkages between the two (World Bank, 2005, 75).<ref
These case studies show that pro-poor, community-based initiatives that are market linked, providing a viable product and operating in an economically effective fashion, can help disadvantaged community members to effectively participate in the market economy. Similarly, community-based service provision and labour
====Land-use planning for LED====
[[Land-use planning]] and development control serve as measurable tools for LED. The assignment of property rights in land and third party enforcement are essential for the efficient operation of markets. Public intervention ensures the separation of incompatible land-uses, integrated planning and development of synergistic land uses, and the 'public goods' aspect of necessary public facilities, open space and infrastructure investment (Lai, 1994, 78-80).<ref name="LAI WAI CHUNG 1994">LAI WAI CHUNG, L. (1994), 'The eco- nomics of zoning: a literature review and analysis of the work of Coase', Town Planning Review, 65, 77-98.</ref> Land use planning and development control are essential for the existence and operation of land and property markets (Alexander, 48).<ref>A Transaction-Cost Theory of Land Use Planning and Development Control: Towards the Institutional Analysis of Public Planning E. R. Alexander The Town Planning Review
The following are a list of public land use and development controls that the Ontario Ministry of Municipal Affairs and Housing lists as useful methods in promoting economic development.<ref>Ontario Municipal Affairs and Housing. "Municipal and Financial Tools for Economic Development Handbook".</ref>
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==References==
{{Reflist}}
==External links ==
* Observatory of Rural and Local Development [https://web.archive.org/web/20140104213308/http://observalocal.com/ www.observalocal.com]
* [http://www.ledknowledge.org] http://www.ledknowledge.org - Global Local Economic Development Site
* [http://www.ledna.org] http://www.ledna.org - African Local Economic Development Site
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