An Integrated Approach to LED Promotion and the Critical Role of Local Government Challenges & Opportunities CLGF Energising Local Economies: Partnership for Prosperous Communities Cardiff, March 2011

 UNCDF is the UN’s capital investment agency for the world’s least developed countries, established in 1966 by the General Assembly  Flexible instruments: investment capital (grants, credits and guarantees), capacity building support and technical advisory services to promote: Inclusive Financial Sectors. Decentralization and Local Development.  Interventions: Catalytic Investment and Policy Impact contributing to Sustainable Local Development.  Active portfolio: $200m in 38 LDCs; 10 post-conflict countries. UNCDF: An Overview

Local Government System Policies & Regulations Institutions & Capacities Investment Basic Service Infrastructure UNCDF Local Government System Local Economic Development Food Security Other Stage 1 LDP Stage 2 LDP Specialized Sector & Thematic Outputs Climate Change Adaptation Basic Social Services Policies & Regulations Sector Specific Policy, Legal & Regulatory Inputs Institutional Capacities Sector Specific Systems & Capacities Investment Sector Earmarked Development Funds M D G Structure & Stages of the UNCDF Local Development Programme

LED Policy Advise LED Promotion (through LG) Capacity & Finance National Context for LED Promotion National Economic Context Macroeconomic Policy Context Institutional Context Local Capacity for LED Promotion LED Governance Enhancing the Enabling Environment LED Catalytic Interventions National/Sub-National Channels of Coordination & Communication for LED Promotion The Scope of the Local Economic Development Programme

Institutionalizing LED Promotion Functions at the National and Local Levels

Institutionalizing the LED Promotion Function at the National Level; In Relation to the Lead LED Promotion & Harmonization Agency (Ministry or Inter-ministerial Body) In Relation to the LG Support and Supervision Agency Institutionalizing the LED Promotion Function at the Local Level; Activate the LED focused department/unit (or create a pilot entity) at Target LG Tier Consolidate/introduce the LED promotion staff at target LG Institutionalizing the Function

Activating the LED Promotion Function of Local Governments

Conduct the Quantitative Assessment of the Local Economy; - the Local Economy and Business Enabling Environment Assessment (LEBA) - In-depth/focused quantitative assessment of specific sectors, clusters or value/supply chains Establish and Activate the LED Forum; Membership – Local Economic Actors Objective: Obtain a nuanced understanding of the dynamics of the local economy Establish and Activate an LED Promotion Committee; Membership: LED Promotion Actors; Objective: Harmonize and coordinate the actions of all LED Promotion Actors Conduct the Qualitative Assessment of the Local Economy; - the Participatory Appraisal of Competitive Advantage (PACA) - In-depth/focused quantitative assessment of specific sectors, clusters or value/supply chains Introduce and Populate the Local Economy MIS The Scope of the LED Governance Function at Target LG

Project Development LED Governance Process Local Economy Assessment LED Forum LED Strategy Local Economy MIS & GIN Strategy Development Infrastructure Productive Projects Regulations Capacity Development Technical Assistance Macroeconomic Policy Project Finance Project Implementation & Coordination Local Government Private Sector Public-Private Partnership Public-Public Partnership Development Partner Programs The Scope of the LEDP at the Local Level The LED Fund

The Potential Scope of the Economic Development Strategy;  Macroeconomic Policy Reform  Regulatory Reform  Institutional Reform  Economic Infrastructure Development  Strategic Sector Development - Financial Services - Business Development Services - Communication - Transportation - Other  Sector, Cluster & Value/Supply Chain Development - Finance & Financial Services - Business Development - Technology Transfer, Product Development and Market Access - Skills Development - Other  Catalytic Interventions The LED through LG Package; Deploying the Economic Development Strategy Formulation Process

LED Strategy Implementation Stages Implementation of Investments & Interventions Project Development LED Needs Assessment & Strategy Formulation (Focus options of Assessment) Local Economy Assessment LED Forum Local Economy MIS LED Strategy Catalytic Project Identification Value Chain Analysis Cluster Analysis Sector & Sub-Sector Analysis SME Analysis Informal Sector Analysis Private Sector Analysis Sector & Sub-Sector Analysis Post Conflict Economy Analysis Project Finance Project Coordination & Implementation Economic Infrastructure Projects Productive Projects Regulatory Improvement Interventions Capacity Development Programmes Technical Assistance Programmes Service Sector Development Programmes Macro Policy Development Programmes The Scope of the LEDP at the Local Level

Diagnosing the National Context for LED Promotion

The National Level The Sub-National Economies Macro Policies – LED Relevant TradeLaborMonetaryTaxLand National Development Strategies – LED Relevant AgricultureIndustry Private SectorSME The National Macroeconomic Policy Context The Alignment Challenge PRS Export/Trade

Other Sectors Communication Transportation Labor Vocational Education Agriculture Trade Industry Assignment of LED Sector Functions at the Local Level De-Concentrated LED Related Functions Institutional Delegated LED Related Function LG System Devolved LED Related Functions Centrally Performed LED Related Functions Devolved Function Delegated FunctionCentrally Performed Function De-Concentrated Function

Developing the National LED Promotion Vision, Policy & Strategy

LED Strategy Create National Institutional Arrangements For Guiding a Process of LED Policy & Strategy Formulation, Implementation & Monitoring Analysis of the National and Regional Economy Review of LED Related Macroeconomic Policies Review of LED related Thematic & Sector Strategies Map-out LED relevant Public & Private Agencies at Central and Local Levels Map and Analyze the Distribution of LED Related Mandates and Functions and Resource Among all relevant central and Local Agencies Articulation of the LED Vision & Policy Develop LED Promotion Strategy Implement the National Programme for LED Promotion The Legal/Regulatory and Institutional Context for LED Promotion Definition of the Comparative/Competitive Advantages of the National/Regional Economies The Macroeconomic Policy Context For LED Promotion Mapping of LED Promotion Interventions/Programmes Undertaken by National & Donor Actors The LED Policy & Strategy Articulation & Application Process The National LED Promotion Framework LED Strategy LED Strategy LED Strategy LED Strategy LED Strategy Localities Reform & Alignment Of the LED Institutional Context Reform & Alignment Of the LED Policy Context

Map the Central Level Institutional Landscape for LED Promotion The LED Policy & Strategy Articulation & Application Process Institutional Arrangements for LED Policy Development & Implementation Create a Multi-Sector Body for Guiding the Articulation of the LED Promotion Vision and Policy Identify the Lead LED Promotion Agency/Ministry and Accurately Define & Activate its LED mandate/Functions Apply the LED Promotion Policy & Manage the Implementation of The Strategy Guide the Process of Articulation of the LED Promotion Vision Policy and the Development of the Strategy

The Structure and Characteristics of the National and Regional Economy The LED Vision & Policy The LED Promotion Strategy The Comparative/Competitive Advantages of the National/Regional Economies The National Programme For LED Promotion The LED Policy & Strategy Articulation & Application Process The Analysis of the National Economy The LED Policy Context The LED Institutional Context LED Related National Strategies & Interventions Local Economic Development Strategies Scope of NP for LED Promotion

Document & Review the Scope and Main Features of LED Related Macroeconomic Policies The LED Policy & Strategy Articulation & Application Process The National Macroeconomic Policy Context Assess Impact of LED Related Macroeconomic Policies on Economic Activities and on LED Outcomes LED-Aligned/Responsive Macroeconomic Policies LED-Responsive Macroeconomic Policy Reforms Preliminary Policy Review Phase Feedback From Field Policy Impact Assessment Phase Policy Reform & Alignment Phase

Mapping of on-going or Planned LED Promotion Interventions Map and Document National LED Related Thematic & Sector Strategies Map LED Promotion Interventions/Programmes Implemented by National Actors & Donor Partners The LED Policy & Strategy Articulation & Application Process Mapping and Aligning the LED Promotion Intervention Landscape Align LED Promotion Strategies & other Interventions with the LED Promotion Vision and Policy Local Economic Development Strategies Feedback From Field LED Promotion Vision & Policy Integrate & Align LED Promotion Strategies & other Interventions with Sub-National/Locality LED Strategies

Map the Distribution of LED Promotion Mandates & Functions Among Central and Local Institutions/Actors The LED Policy & Strategy Articulation & Application Process The National Institutional Context for LED Promotion Assess the Coherence of the Institutional Context & Distribution of Mandates and Functions for LED Promotion A Realigned Institutional Context for LED Promotion Recommended Institutional Realignment & Redistribution of Mandates and Functions For LED Promotion Mapping the Institutional Context & the Distribution of Mandates & Functions for LED Promotion Feedback From Field Assessment of the Coherence of the Context Realignment of mandates and functions

 Articulation of the macroeconomic policy reform requirements  Articulation of the regulatory reform requirements  Articulation of the institutional reform requirements  Redefining/Modifying the Mandate, Functional and Resource Assignment of Local Government for LED Promotion  Alignment of LED Relevant National sector and Thematic Strategies & Programmes  Alignment of LED Relevant Donor Sponsored Interventions The Scope of LED Promotion Policy and Strategy