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==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 |last=Swinburn |first=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"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”competitiveness".<ref>Source:{{Cite GTZbook (2007),|last=Rücker „Local|first=Anja |url=http://www2.gtz.de/wbf/doc/gtz_LRED_manuscript_ii.pdf |title=Local and Regional Economic Development”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>
Another recent definition fromThe [[Swiss Agency for Development and Cooperation]] :“adefined 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 as:LED is "a participatory process where local people from all sectors work together to stimulate local commercial activity resulting in a resilient and sustainable economy." Itand isas "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 ILO[[International definedLabour itOrganization]] as(ILO) “LEDdefines isLED 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”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 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. In our experience,{{Who|date=December 2023}} external development projects implemented locally often results in local stakeholders becoming bystanders to a project in their locality.{{Original research inline|date=December 2023}}
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>World Bankname=":0" (2002), “Local Economic Development – A Primer“, December 2002.</ref> 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>Cunningham,{{Cite S.journal and|last=Cunningham [[Jörg|first=Shawn Meyer-Stamer|last2=Meyer-Stamer, J]].|first2=Jörg 2005.|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(1)[https:/ |issue=4 |doi=10.4314/wwwai.researchgatev35i4.net/publication/265199651_Planning_or_Doing_Local_Economic_Development_The_Problems_with_the_Orthodox_Approach_to_LED22449 |issn=1995-641X}}</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>{{citeCite web |urldate=http://learning.itcilo.org/entdev/led/pub/home.aspx?l=Eng&IdSezione=02011-02-14 |title=Local Economic Development (LED |accessdate=2009-06-06) |url-status=dead|archiveurl=httpshttp://webwww.archiveilo.org/webempent/20070501123347areas/http:WCMS_093862/lang--en/learningindex.itcilo.org/entdev/LED/pub/home.aspx?l=Eng&IdSezione=0htm |archivedateaccess-date=20072023-0512-0130 }}|website=[[International ILOLabour WebsiteOrganization]] on LED|language=en}}</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{{Cite journal |title=Local Economic Development in South African Municipalities: Prospects and Challenges |url=https://ledjournals.public-hubco.comza/{{deaddoi/10.31920/2634-3649/2023/sin2a9 link|datejournal=JanuaryAfrican Journal of Development 2018Studies |botvolume=InternetArchiveBot2023 |fix-attemptedissue=yes si2}} The South African LED Network</ref>
=== Local economic development responses to the COVID-19 pandemic ===
In addition to the laws and policies directly supporting and encouraging pro-poor
LED, other instruments, such as Integrated Development Planning, provide additional support for implementation. Integrated Development Planning is a key process used within LED, which looks toward the use of planning to situate pro-poor development and LED specifically.<ref>World Bank-Netherlands Partnership Program (BNPP), 2005. "Investigation of Pro-Poor Local Economic Development in South Africa."</ref> The South African Forum for Effective Planning and Development in 1995 defined Integrated Development Planning as, ‘A participatory approach to integrate economic, sectoral, spatial, social, institutional, environmental and fiscal strategies in order to support the optimal allocation of scarce resources between sectors and geographical areas and across the population in a manner that provides [[sustainable growth]], equity and the empowerment of the poor and the marginalised’(DPLG, 15).<ref>Department of Provincial and Local Government Affairs (DPLG), 2000: Local Economic Development: Guideline to Institutional Arrangements, Local Economic Development Manual Series Volume 1, DPLG, Pretoria.</ref>
====Integrated Development Planning====
* 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 to attract funds from other spheres of government, donor organisations and investors through defining and packaging attractive projects and programmes; secondly in helping to create an environment that is conducive to private sector investment and the general promotion of LED; and thirdly, by proposing direct interventions in the economy through, for example, providing incentives, developing economic infrastructure, and buying, developing and leasing/selling land,(DPLG 2000, 25).<ref>Department of Provincial and Local Government Affairs (DPLG), 2000: Local Economic Development: Guideline to Institutional Arrangements, Local Economic Development Manual Series Volume 1, DPLG, Pretoria.</ref>
====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]] (UN Habitat, 10).<ref>UN Habitat, Eco-Plan, 2005: "Promoting Local Economic Development through Strategic Planning". Volume 1.</ref>
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: Local Government Municipal Systems Bill, Government Gazette No. 21071 of 13 April 2000.</ref> For instance, public participation is a key element of the Systems Act, and municipalities are obliged to establish mechanisms for public participation and participatory governance.
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