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

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! Growth Development In Limbo Gilded Cage Flattering to Deceive Future Assured LED & PACA Social Development

5. Systemic Competitiveness

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

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

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

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

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

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

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