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Partnerships in Local Economic Development

Partnerships in Local Economic Development. 5 th National Annual Local Government Conference 11-12 August 2008 Presented by Gerry Delany gerry@delany.co.za. 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

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  1. Partnerships in Local Economic Development 5th National AnnualLocal Government Conference 11-12 August 2008 Presented by Gerry Delany gerry@delany.co.za

  2. 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

  3. What does that look like?

  4. 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

  5. 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)

  6. Ways to grow an economy • Create new enterprises • Attract investment from outside • Grow existing businesses Which gets the most attention?

  7. Sources of new jobs Attract 10-20% Create 15-25% Retain and expand 60-80% Which should get most attention?

  8. A balanced LED Strategy Needs three legs… and a firm foundation

  9. 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. 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

  11. 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

  12. Pinetown BR&E Task Team

  13. 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”

  14. South Durban Basin action teams

  15. 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)

  16. 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

  17. Inkumane

  18. Serious about LED • Understand importance – set targets • Get relevant information – together • Partnerships/teams for design & implementation • Balanced strategy • Address exclusion

  19. 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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