View
17
Download
0
Category
Tags:
Preview:
DESCRIPTION
Rural Economic & Enterprise Development: A framework for analysis & joint action Dhaka, Bangladesh 23 rd November, 2004. Junior Davis and Felicity Proctor Natural Resources Institute (UK) j.davis@gre.ac.uk. Workshop Objectives. - PowerPoint PPT Presentation
Citation preview
Rural Economic & Enterprise Development: A framework for
analysis & joint action
Dhaka, Bangladesh 23rd November, 2004.
Junior Davis and Felicity Proctor
Natural Resources Institute (UK)
j.davis@gre.ac.uk
2
Workshop Objectives
Present the Rural Economic and Enterprise Development (REED) Framework
Exchange relevant current and planned project and programme experience between practitioners and review in the light of the REED framework
Review the potential utility of the REED framework in the Bangladesh context
Consider options for follow up action research and learning in partnership with the NRI led programme
3
Hoped for Outputs
Better understanding of REED as a framework to support multi-stakeholder processes for rural economic development and poverty reduction
Shared learning between Bangladeshi programme practitioners set within rural and local economic development
Emergence of a learning platform/network on REED/LED to support ongoing and future programme interventions
Agreement on whether and how to take forward work on the validation of REED in the Bangladeshi context and possible future uptake
4
What is Local Economic Development
Local economic development is about local people working together to achieve sustainable economic growth that brings economic benefits and quality of life improvements for all in the community. “Community” is here defined as a city, town, metropolitan area, or sub national region (World Bank, 2004).
5
Focus Tools
1960s to early 1980s: mobile manufacturing investment,
attracting outside investment, especially the attraction of foreign direct investment
hard infrastructure investments
To achieve this regions/government/NGOs used: massive grants subsidized loans usually aimed at inward investing
manufacturers & tax breaks subsidized hard infrastructure investment
1980s to mid 1990s: the retention and growing of existing local
businesses still with an emphasis on inward investment
attraction, but usually this was becoming more targeted to specific sectors or from certain geographic areas
To achieve this regions/government/NGOs provided: direct payments to individual businesses business incubators/workspace advice and training for small- and medium-sized
firms & technical support business start-up support some hard and soft infrastructure investment
During this third (and current) wave of LED, more focus is placed on:
soft infrastructure investments public/private partnerships networking and the leveraging of private
sector investments for the public good highly targeted inward investment
attraction to add to the competitive advantages of local areas
To achieve this regions/government/NGOs are: developing a holistic strategy aimed at growing local
firms & providing a competitive local investment climate
supporting and encouraging networking and collaboration
encouraging the development of business clusters encouraging workforce development and education closely targeting inward investment to support
cluster growth; supporting quality of life improvements
Three Waves of local Economic Development
Research on local economic development highlights:
Significant role played by extensive and established local economy clusters
Municipal/ local government plays a key role in impacting these economies
Constraints are often inadequate political decentralization and regressive urban planning regulatory frameworks
A purely "industrial" or “agricultural” focus excludes: • extensive livelihood linkages in the rural and urban
economy, • governance aspects. • importance of extensive trade networks inter-connecting
distinctive local economies both rural and urban
The Rural Economic and Enterprise Development is a framework based on the analysis of successes and experiences of programmes and projects by an international group of practitioners from different professional backgrounds and countries.
REED framework offers a flexible tool for joint analysis, planning, evaluation and learning among stakeholders concerned with rural economic and enterprise development.
It is an example of an holistic and spatial approach to local, rural and urban development.
What is REED?
Joint donor initiative (GTZ, DFID, SDC, IFAD, CTA, FAO, WB) to overcome fragmentation
Framework developed based on success factors of operational experience from a diverse range of programmes (Berlin workshop November 2002)
This was developed using the Learning Wheel methodology.
The Evolution of REED
4. Functioning and effective infrastructure
(hard and soft)
3. Active private sector
institutions and links
8. Local organisation, groups and associations
(representing the poor) as building
blocks
9.Active participation
and ownership of development
processes by well linked
stakeholdersFostering
Rural Economic and Enterprise Development
1. An enabling environment that provides for an
attractive investment climate and dynamic
entrepreneurship 2. Effective mechanisms and structures that address local
needs
5. Access to integrated and open markets
6. Access to effective and
efficient support
services and resources
7. Adaptive management capacity and
entrepreneurial competence
within business and enterprises
10. Ongoing learning from success and
failures by all stakeholders
Use of the framework in the planning process for poverty oriented LED in rural and urban areas
As a checklist in the planning process
As a tool to define priorities with stakeholders and decision makers
As a guideline in participatory planning with stakeholders
As a tool for joint planning with different projects and donors
As resource material for the REED/LED planning process
Using REED: in the planning process
Using the framework as a tool for selecting amongst intervention priorities (gateway function)
For example:
local and regional economic development
promotion of value chains
training and human resource development
rural and urban business development services
microfinance
....
Using REED: in prioritising interventions
Use the framework for monitoring and evaluation:
As a guideline to establish a M & E System
As a tool for discussions with decision makers on changes observed
As a tool for joint evaluation of different projects in the same region
To help define indicators for results and impacts on different levels
As a tool to establish benchmarks for regions and countries
Using REED: in monitoring & evaluation
Each cornerstone contains
The aim of a cornerstone in the overall context of REED/LED
Core elements of the cornerstone
Key strategies to achieve best results
Instruments and means of implementation
Links to websites with information, experiences and best practices
The Cornerstones of Rural Economic and Enterprise Development framework
Cornerstone 1. An enabling environment for an attractive investment climate and entrepreneurship.
Good governance, improved reformed regulation, taxation,
licensing, remove tariff and non-tariff barriers
Cornerstone 2. Effective mechanisms and structures that address local needs.
Effective decentralisation, empowerment of communities
Cornerstone 3. Effective private sector institutions & links
Build capacity of private BDS, enhance organisational capacity, create local business networks
The key elements of the ten REED Cornerstones
15
The key elements of the ten REED Cornerstones
Cornerstone 4. Functioning and effective infrastructure (hard and soft). Identify infrastructure needs of rural SMEs, Providing & maintaining
required infrastructure, integrating into wider systems, quality dimensions
Cornerstone 5. Access to integrated and effectively functioning markets. Access to markets, transparency & stability of markets, market
chain integration & management, market development
Cornerstone 6. Access to effective and efficient support services and resources. Provide information & specialised services, Develop market for service
provision, provide contracted business services, supply inputs, access to finance & R&D facilities
Cornerstone 7. Adaptive management capacity and entrepreneurial competence within business and enterprises.
Management & organisation, production & service generation,
financing, marketing, networking
Cornerstone 8. Local organisations, groups and associations (representing the poor) as building blocks.
Understand organisational arrangements, motivate self-mobilisation, facilitate organisational development, ensure organisational graduation to higher and appropriate levels of formalisation
The key elements of the ten REED Cornerstones
17
The key elements of the ten REED Cornerstones
Cornerstone 9. Active participation in and ownership of joint learning processes by well-linked stakeholders. Identifying stakeholders, building stakeholder convergence,
creating structured platforms & for a for negotiations, creating networks for learning
Cornerstone 10. Ongoing learning from success and failure by all stakeholders Create platforms to share and review information, agree vision and M&E
framework, creating an effective knowledge management system
18
CONTENT KEY STRATEGIES & PROCESSES
POSSIBLE WAYS TO IMPLEMENT
1. 1.Identifying the infrastructure required by rural enterprises
1. 1.Assess the existing infrastructure and identify gaps and the necessary improvements;
2. 2.Improve access to the infrastructure
3. 3.Identify ways and means to reduce the costs of accessing the infrastructure.
1. Survey of existing infrastructure and business needs;
2. Identification of priorities and contributions in multi-stakeholder forums;
3. Increase in the volume of goods or services using the infrastructure;
4. Provision of low-cost solutions to enterprise needs.
1. 2.Providing the required infrastructure
1. 1.Encourage public and private investment in infrastructure;
1. Development of sound proposals for new or improved facilities with benefits to rural enterprise and the public.
1. 2.Privatise state utility service providers;
1. An independent regulatory body;2. Invitations to tender for management of
service delivery contracts.
1. 3.Promote local, self-funded facilities, eg, collective or cooperative services;
1. Development of innovative schemes for self-funding.
1. 4.Establish facilities on a correct and legal basis, eg, access.
1. Investigation into the local regulatory or legal position.
Cornerstone 4. Functioning and effective infrastructure (hard and soft).
The following steps are proposed:
l. Define geographical area (e.g., district, province),
II. The framework could be applied to analyse the existing situation in that area and identify potential areas of improvement.
III. Cornerstones, their interdependencies, strengths and gaps could be identified by detailed analysis and self-assessment.
Scenario for using the REED framework in an LED setting (l)
IV. The gaps or shortcomings blocking the exploitation of the economic potential of the region should be analysed in detail and prioritised by their negative effects on the system.
V. Factors with the greatest negative impact should be addressed through intervention.
VI. Once the possible interventions are identified, implementation strategies can be planned and the roles of the different actors and their mutual expectations can be clarified.
Scenario for using the REED framework in an LED setting (ll)
How REED can add value
1. Thinking about economic and livelihood strategies to compliment other spatial planning and management efforts is new. Critical linkages which combine to direct resources and interventions strategically and spatially need to be considered.
2. Public administrations should conceptualize REED/LED strategies in a trans-locational (village, sm. towns, cities) perspective, including its institutional setting and prioritise according to cost effectiveness and socio-economic impact.
3. REED provides a common platform and mechanism to link policy, procedures and interventions from a multidisciplinary perspective.
NRI Action research and shared learning on REED
The research aims to develop further the conceptual framework and project tool for the fostering of rural economic and enterprise development in Bangladesh and South Africa
In pursuit of this, the project aims to: Apply the REED framework and share emerging
practice on pro-poor public policy and institutional support at local and national government levels specifically in South Africa and Bangladesh.
Refine and develop the conceptual framework so that it can address gaps in the framework
Approach
Collaboration with In-country partnersCollaboration with UK and EU partnersConsultation with key stakeholdersPolicy and Institutional focusPolicy dialogue
Methodological issues
Study site selection criteriaUnit of analysisQuantitative and Qualitative Research
Methodologies and tools Issue(s)/Purpose Potential Methodological Tool(s)
Assessment of community physical/natural assets
Participatory Resource MappingSecondary data on economy, employment and demography
Exploration of local resources and development conditions
Transect walksFocus group discussions
Understanding of different SME and MSME activities
Focus group discussions
Gaining in-depth knowledge of specific issues, structures and organizations
Key informant discussionsIn-depth interviews and Institutional audits
Following up and illustrating specific issues Case studies – semi structured interviews
Stakeholder perceptions, attitudes, meanings and values (social assets)
Focus group workshops semi-structured interviews
Impact of sectoral policy frameworks on LED Empirical analysis of secondary dataCase studies – SAM/PAM
Information on the factors that constrain poor’s access to employment and SME development.
HH survey/ secondary data/ questionnaire/ Enterprise questionnaire
Identification of needs for the development of the LED
Focus group discussions, Key informant discussion, enterprise QNR
Policy uptake and dissemination
Stakeholder involvement and shared learning platform at country-level
Input into DFID, World Bank and EU programme and investment processes
Published Outputs and WebsiteNetworkingSeminars and Workshops
Inception Phase
Literature Review Identification of in-country research partners Interactive consultation with policy-makers and in-
country stakeholdersJoint planning with in-country partners, GTZ, UN-FAO
etc.Selection of case-study sites/ regionsDevelop Papers for WB local economic development
conference in Washington and forthcoming GTZ conference in Sri Lanka
Initial workshops and seminars
Proposed in-country activities l
Research activities in each study area:A study which assesses the institutional and policy
context for REED/LED in each countryA review of relevant literature and secondary data, and
dialogue with key stakeholders.A full inventory of the existing data on REED/LEDReach agreement with partners on study/project locationBaseline (community level) survey (case studies) to
identify the range of REED/LED activity in which populations are engaged; develop a typology of REED/LED activities and pro-poor LED orientation cross-sectorally
Extend this initial survey to other areas in the same country
Proposed in-country activities Il
The design, testing and implementation of a pilot of the Rural Economic and Enterprise Development framework in Bangladesh and South Africa.
Knowledge to be gained
Better understanding of current state of knowledge relating to REED/LED in South Africa and Bangladesh
Improved understanding of primary and secondary stakeholder perceptions of REED/LED and its growth potential,
Qualitative and quantitative information on types of REED/LED, and their importance to the poor
Information on the impact of sectoral policy frameworks on pro-poor LED (housing etc)
Qualitative and quantitative information on the factors that constrain people’s access to employment and SME development.
Thanks for your attention!Thanks for your attention!
The reports this presentation is based on are available at:
The Natural Resources Institute website
http://www.nri.org/projects/reed
32
Taking the REED research forward
Time frame: project due to complete research in January 2006 Identify partners (NGO, government, academia, donor etc) Identify opportunities for joint collaboration with existing
programmes/ project at macro, micro or meso levels. Efforts should build on practical fieldwork & existing data/ case
study material Launch in-country REED/LED research in Bangladesh through
an inception workshop February 2005 Participate in co-financed NRI-GTZ REED international
conference, Sri Lanka June 2005 Invite current workshop participants to lessons learned
workshop/event at the end of the in-country research November 2005
Recommended