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From LED to Regional Competitiveness

From LED to Regional Competitiveness . West Coast District Piketberg 13 November 2013 . Shannon Hiemstra & Colin Mitchell Stone Soup Development (Pty) Ltd 083 7771004 www.stonesoupdevelopment.com . LED necessary but not sufficient? . Question:

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From LED to Regional Competitiveness

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  1. From LED to Regional Competitiveness West Coast District Piketberg 13 November 2013 Shannon Hiemstra & Colin Mitchell Stone Soup Development (Pty) Ltd 083 7771004 www.stonesoupdevelopment.com

  2. LED necessary but not sufficient? Question: What assumptions should we test or challenge in thinking about our municipality / region in the light of our accumulated experience and understanding of local economic development?

  3. What is 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

  4. It’s about balance! Gilded Cage Future Assured LED & PACA Growth SocialDevelopment Flattering to Deceive In Limbo Development

  5. Systemic Competitiveness

  6. Systemic Competitiveness Meta: Development-orientated patterns of socio-political organisation Macro: Generic institutions, economic policies and framework conditions Meso: Selective interventions to support efforts to shape a competitive advantage Growth Micro: Targeted activities to improve market functionality Development

  7. Micro Level Companies and entrepreneurs needed to create and sustain competitive efforts • Intra-firm effort to improve efficiency, quality, responsiveness; • Formal and informal co-operation, • Trust and social capital • Networks, alliances, • Collective learning Growth Micro: Targeted activities to improve market functionality Development

  8. Meso Level Targeted approaches & institutions to strengthen the competitiveness of localities • Economic promotion approach & organisations. • Environmental protection agencies. • Relevance & effectiveness of education providers. • Availability of & access to Information. • Effectiveness of municipality to deliver services. Growth Meso: Selective interventions to support efforts to shape a competitive advantage Development

  9. Macro Level Stable, competition-orientated macro-economic, political and legal framework conditions • Budget & Finance Policy. • Regional Development Policy, Approach and Principles • Environmental Policy • Regional policy cohesion • Technology Policy • Availability & Access of Information Growth Macro: Generic institutions, economic policies and framework conditions Development

  10. Meta Level Basic orientations and societal framework conditions in a given society Meta: Development-orientated patterns of socio-political organisation • Social status of entrepreneurs • Value systems that encourage learning & growth • Socio-economic positioning of locality • Capacity to formulate vision & strategy • Social cohesion and inclusion Growth Development

  11. Municipal Re-positioning Flexibility, Innovation & Leadership Clan Values cohesion, participation and communication; Like a family Adhocracy Dynamic, adaptable, innovative and action learning orientation External Focus Internal Focus Hierarchy Favours structure & control; Coordination and control; Stability and efficiency Market Results & Performance orientated; Competitive and “customer” focussed Stability & Control

  12. Municipal Development Orientation Flexibility, Innovation & Leadership Adhocracy Clan Target Orientation External Focus Internal Focus Current orientation Market Hierarchy Stability & Control

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