1. Introduction to Local Development

2. What is development? Development is about: Utilizing resources To upgrade existing conditions For the benefit of people Who’s and what kind of resources? To what level? What is “adequate”? Local/external? Everyone/ disadvantaged? But there are some questions?

3. Shift in Concept of Economic Development ComponentOld ConceptNew Concept Location Physical location (near natural resources, transportations, markets) enhance economic options A quality environment and strong community capacity multiply natural advantages for economic growth Business and economic base Export base industries and firms create jobs and stimulate increased local business Clusters of competitive industries linked in a regional network of all types of firms create new growth and income Employment resources More firms create more jobs, even if many are minimum wage Comprehensive skill development and technological innovation lead to quality jobs and higher wages Community resources Single-purpose organisations can enhance economic opportunities in the community Collaborative partnerships of many community groups needed to establish a broad foundation for competitive industries Blakely & Bradshaw, Planning Local economic Development, 2002

4. Shift in Concept of Development Economic Development Economic Development – employment generation, centralized, focus on infrastructure (top – down) Local Economic Development Local Economic Development – decent employment opportunities, local entrepreneurship (to supplement FDIs), local tax base (for better service delivery); to create social benefits and through participation (bottom – up) Local Sustainable Development Local Sustainable Development – LED + protecting and enhancing environmental and cultural values and assets

5. Shift in Concept of Development In the developing world: In the developing world: – Governments (central and local) still focus on economic development + a little bit of LED – International development organizations and local actors are trying to promote LED + SD – There are strong efforts to localize global agenda: Promoting LED Promoting LED Localizing MDGs Localizing MDGs Think globally act locally Think globally act locally Local action against climate change Local action against climate change

6. Understanding local economy

7. The Leaky Bucket Concept: How money and resources enter a particular local economy – FDI, governments, donors…. How money and resources are currently leaking out of that local economy – employees commuting from other localities, inputs purchased externally, revenues invested outside… Identification of action to plug some of those leaks – training locals, support new SME’s to provide inputs and services, buy local…

8. The Leaky Bucket Concept Highway crossing the cityRoad with businesses along

9. The Leaky Bucket Concept Funnels and umbrellas In an urban regeneration program: Umbrella – ToR for external contractors Funnel – train local people in construction and conservation, support new entrepreneurs in construction and other businesses that can be developed in the revitalized area (Ethiopia model)

10. The Leaky Bucket Concept External investments are critical to LED but actions must be taken to ensure local benefits Who benefits and who pays the prices: – Niger Delta’s oil? – Sierra Leone’s diamonds? – Resort in Leopard beach?

11. Key questions for LED What is the “local” Who benefits and who pays the price What mechanisms we have to promote economic development for the benefit of local community and ensure sustainability What is the impact of global trends and processes on local economies?

12. Processes Reshaping Local Development Urbanization Urbanization Globalization Globalization Decentralization Decentralization Democratization Democratization

13. Urbanization An Urban Era RURAL 63% URBAN 37% RURAL 53% URBAN 47% RURAL 40% URBAN 60% Source: Un-Habitat RURAL 50% URBAN 50% 1970 2000 2008 2030

14. Urbanization Focus on cities and urban regions Cities and urban regions are the hubs of the national and global economy = opportunities for development But at the same time poverty and inequalities Slums Excluded populations Environmental degradation Safety issues

15. Globalization Competition between places and between local authorities – Investments and resources – People – Activities Even small and remote localities compete in the global arena Higher expectations – locals exposed to higher standards through media and visits

16. Decentralization and Democratization Local authorities as key actors Local authorities are broadening their responsibilities New actors in the local arena – civil society, NGOs, business sector, not just local and central government Expectations for participation

17. What are the implications?

18. The shift in local government From From working within a clear and limited framework, a local branch of central government is focusing on service delivery and reacting to needs and external initiatives But do they have the tools to manage it? To To Acting in a vague and unstable environment, with new responsibilities, in a multi actors’ arena, trying to adopt proactive modes of operation and be focused on development (to enable good services provision), as well as expectations to “deliver” – by residents and partners.

19. Switching the focus of local authorities C From D=R*L to D=R*C From problems (service delivery) to assets (development/management) ESOURCESESOURCES OCATIONOCATION APACITIES ESOURCESESOURCES

20. Switching the focus From problems (service delivery) to assets (development/management) Service delivery oriented local authority Development oriented local authority Resources // “solutions” ExternalLocal + external taped in Organizational working patterns Along departmental lines. Department - ministry Crosscutting. Multi-actors’ arena (stakeholders) Mode of operation ReactiveProactive

21. Switching the focus A new approach is required at local level – THE ASSETS BASED INTEGRATED APPROACH IdentifyingAssets and andopportunitiesFordevelopment Implementation and managementmechanisms Horizontal integration (sectors) Vertical integration (institutions)

22. Asset based approach to local development ABCD – Assets Based Community Development (as an alternative to needs assessment) // Leveraging local assets and opportunities for local development

23. Community development approach ASSETS BASED COMMUNITY DEVELOPMENT, JOHN L. MCKNIGHT JOHN P. KRETZMAN

24. What is Needs Assessment?  A formal tool that involves the identification of gaps  Prioritizing gaps  Making decisions on which of the priority needs warrant the attention and resources of the community Source: McKnight and Kretzman

25. Starting with needs What is the problem ?  It’s impossible to promote development [= add value] based on deficiencies only  A list of needs leads to fragmented solutions  Resources channeled to service providers and not to residents  Strengthen the tendency to focus on problems instead of on strengths and capacities  Dependency on external experts and institutions is encouraged  Next years’ problems must always be bigger  Leads to survival strategy and not to a strategy of change  The internal and external message is: local people are unable to take responsibility for their lives and their community’s future Source: McKnight and Kretzman

26. Start with capacity development  Sustainable local economic development: must focus within the community - on the very people and organizations making the community  A key first step in LED is to map the capacities, skills, and assets of local citizens and organizations  Local assets constitute a rich reservoir of resources available, to address issues of local concern but – in many cases these assets are hidden  The key: to effectively marshal these local strengths in order to collaboratively address issues of importance to the community and the local area, and attract external resources Source: McKnight and Kretzman

27. So, here is the dilemma... Source: McKnight and Kretzman People and Communities have deficiencies & needs Individuals and Communities have skills and talents

28. Source: McKnight and Kretzman

30. Notice! Starting with assets does not mean that needs are ignored – They are addressed through promoting strategic development process based on assets Source: McKnight and Kretzman

31. Features of Asset-Mapping  Asset-Based: Uncovers talents/skills found in the community right now  Internally Focused: Relies on community’s assets, not on those found outside of it  Relationship Driven: Seeks to build linkages among local people, institutions and organizations, as well as attracting external resources through partnerships (opportunities) Source: McKnight and Kretzman

32. Physical and natural resources Parks Forests Streams and water bodies Lake front Public facilities buildings Roads Institutional assets Businesses Social and municipal services Universities Cultural instit. Local authority Hospitals Civil society Clubs NGOs, CBOs PTAs volunteers Church groups Source: McKnight and Kretzman Personal assets Skills Time Hobbies Capacities Talents Experience Networks / connections

33. Harnessing local assets Personal assets inventory Personal skills Community Skills Enterprising Interests and experiences Personal Information Physical assets natural Buildings/infrastructure waste land Formal institutions agenda/interest capacities links Civil Society agenda/interest capacities links Specific links

34. Internal focus – utilizing community resources for community development Improve local services response to local needs Small scale economic activities Volunteers Community involvement in environmental activities Buy local // barter …

35. Assets as leverages for development External resources are required in most cases and local assets are used to attract these resources and to distribute the benefits localy – Industries with decent employment and SMEs opportunities – Upgraded infrastructure for the benefit of locals and visitors – Solar energy for job and income generating activities – …

36. Source: McKnight and Kretzman Physical and natural resources Parks Forests Streams and water bodies Lake front Public facilities buildings Roads Institutional assets Businesses Social and municipal services Universities Cultural instit. Local authority Hospitals Civil society Clubs NGOs, CBOs PTAs volunteers Church groups Personal assets Skills Time Hobbies Capacities Talents Experience Networks / connections Surrounding opportunities: Available/accessible external resources, budgets, programmes, technologies, initiatives, knowledge, experience…. linked to the local assets

37. Animal fodder Animal fodder Biogas Biogas Fertilizers Fertilizers … … The problem: water hyacinth The opportunity What are the opportunities? Income and employment opportunities (collecting. Producing, selling…

38. Harnessing local assets for (economic) development Local assets are: – Identified (uncovered, problems as opportunities) – Re-arranged (new links = innovation) – Used to attract external resources – Used to distribute benefits in the locality and among the different groups of local community (inclusiveness)

39. Leveraging local assets Requires local (mostly municipal) mechanisms: – Crosscutting working patterns and partnerships for innovative linkages – MSPU to identify assets and opportunities for strategic development – Municipal corporation to promote PPP initiatives – SME support center to plug leaks in the bucket – …

40. Strategic planning for local development

41. What Does This Has to Do With Strategic Planning???? Winston Churchill

42. Strategic Planning Strategic planning is a systematic decision- making process that focuses attention on assets and opportunities and on how to leverage them for development. Strategic planning provides a general framework for action: – A way to determine priorities, – To make wise choices – To harness resources and build partnerships – To achieve agreed-upon objectives.

43. Local Strategic Planning as A Framework for Action It is more than planning: – Understanding local government should own it – Identifying issues, assets and opportunities – Getting the the mandate – Planning – Creating//adapting platforms and capacities for implementation – Strategic managements

44. Strategic Planning Follows 4 key questions: – Where are we now? – Where do we want to go? – How are we going to get there? – How do we know we have arrived?

45. A Strategic Planning Process Taken from

46. Clear mandate, political support, local ownership Partnerships for the planning and implementation process What determines stakeholders? Their stake in the issues (affect/be effected) Their formal position Their control over resources (financial. Knowledge…) Their power to promote or block process/implementation Develop strategic options from action ideas to promote achievement of objectives Develop SMART indicators of performance Specific Measurable Appropriate Realistic Time dated strengthen existing institutional structures change or adjust mandates of existing institutions. Establish new ones if required Identify “anchor” institutions to take the lead. link to established policy instruments Develop skills necessary to support Modify legal and administrative frameworks. Provide access to funds. Maintain knowledge support and a learning process. Quick wins Low hanging fruits