(3) Developing a Township LED Strategy.ppt Sep... · – but 200 000 new job seekers each yearbut 200 000 new job seekers each year – net gain is only 300 000 jobs a year! What

T T T T R R I I

Training for Township Renewal Initiative

Gerry Delanyy y4th September

20082008

Developing a Township LED Strategy Developing a Township LED Strategy Overview of concepts and approaches

TTTTRRII Training for Township Renewal Initiative

Overview• Some useful principles

Ch i l i• Choosing a planning process• Key ingredientsy g• A checklist


How important is LED, really?• What do South Africans worry about most?

– poverty, crime, unemploymentpoverty, crime, unemployment• 13,7 million have work

5 2 illi d k• 5,2 million need work – 4,1 m unemployed plus 1,1 m “discouraged”

• Creating nearly half million jobs p a – but 200 000 new job seekers each yearbut 200 000 new job seekers each year– net gain is only 300 000 jobs a year!

What does that look like?


LED part of overall jobs strategy• Macro-economic policies

R l t i t• Regulatory environment• Infrastructure developmentp• Targeted sector development • Labour market interventions• Labour market interventions

– e,g., EPWP, subsidised job creation, skills • Local economic development


And becoming more important• Macro-economic policies fundamental• National programmes still important, but

insufficient • Globalisation changing the rules, engines

of national growth are cities & regionsof national growth are cities & regions• Emphasis and resources shifting to local

and regional development strategies


What’s distinctive about LED• Focus on place

– territory not sectorterritory not sector– economic space, not administrative unit

B ild l l d t & t iti• Builds on local advantages & opportunities• Bottom up, locally drivenp, y

– not top down “development in a locality”done by local people not for them– done by local people not for them


10 G idi i i l f LED10 Guiding principles for LED(Swinburn & Yatta, Africities 2006)

• Strategically planned• Territorial approach • Locally owned, designed and delivered • Partnerships both for design and implementation

f• Reinforced by integrated government action• Focus on conducive local business environment

I d l i i i i i• Integrated multi-sector initiatives • Invest in hard, soft & institutional infrastructure

G th & t ti f l l b i & l• Growth & retention of local businesses & people • Projects by all - public, private, non-government


Promoting robust & inclusivePromoting robust & inclusive local economies

• Improve market and public confidence in i i li imunicipalities

• Identify and exploit competitive advantage y p p gof all 52 municipal regions

• Intensify enterprise support• Intensify enterprise support• Introduce sustainable developmental

community investmentNational Framework for LED in South Africa, DPLG, 2007


When developing a strategyTwo important considerations

• The content – obviously

• The process less obviously• The process – less obviously

MOBILISE

Recruit key role-players

ANALYSE

Economic assessment

REVIEW

Check progress & impact Economic assessmentCheck progress & impact

Strategic

ACT! STRATEGISE

gprocess

ACT!

Implement action plans

STRATEGISE

Vision, goals, objectives

ORGANISE

Projects, programmes


Different ApproachesTRADITIONAL

St d t t & l

MOBILISING

Q i k h t• Study, strategy & plan• Tackle main problems

• Quick scan, short term plan

& constraints• Target sectors with

• Tackle problems with quick & easy solutionsg

high growth potential • Target sectors with high motivation to act


Selection issues• Well established economy & institutions

– Traditional approach, pp– Clustering, value chain development, – BR&EBR&E

• Poor economy, weak institutions, LED new Mobilising approach to learn about LED e g– Mobilising approach to learn about LED, e.g., PACA, ABCD Participative planning to build local capital in– Participative planning to build local capital in longer term

“Communities have never been built Communities have never been built upon their deficiencies. Building

community has always depended upon mobilizing the capacities and assets mobilizing the capacities and assets

of a people and a place.”

J. McKnight & J. KretzmannJ. McKnight & J. Kretzmann


Not just “the usual suspects”“Grass root organizations such as Abahlali b Mj d l t l d t thi baseMjondolo are strongly opposed to this top-down approach to development that sees people as nothing else than the helpless individuals who can not think for helpless individuals who can not think for themselves.”

Sbu Zikode, 28 Aug 2008


Three ways to grow an economy

1. Create new enterprises1. Create new enterprises2. Attract investment from outside3. Grow existing businesses

Which gets the most tt ti ?attention?

Sources of new jobs

Attract

Sou ces o e jobs

Attract10-20%

Create15-25%

Retain and expandexpand60-80%

Which should get most attention?


What if there seems to be very little existing business ?existing business…?


In reality there is, but…• Local customers have no money• Suppliers give no discounts• High transport costs• No capital for equipmentp q p• Services unreliable (or don’t exist)• Suitable premises rarely availableSuitable premises rarely available• Can’t get credit meanwhile debtors can’t pay…• Costs and risks of crime and corruptionCosts and risks of crime and corruption• Little trust and co-operation between businesses


Poverty trapWith j st eno gh to s r i e ho do o• With just enough to survive how do you escape?

• Below certain threshold escape impossible without helpwithout help– help must be sufficient, must be sustained

• Must consider all forms of capital– human, natural, financial, physical, social, , , p y ,


Need capital to escape trap

Livelihoods (DFID) Jeffrey Sachs

• Human• Financial

• Human• Business

• Physical • Natural

• Infrastructure• Natural• Natural

• Social• Natural• Public institutional• Knowledge


Balanced LED StrategyThree legs:

Retain and grow existing businesses• Retain and grow existing businesses• Create new enterprisesp• Attract investment from outsideA fi f d ti b i ti iA firm foundation by investing in: • Hard (physical) and soft (economic)(p y ) ( )

infrastructure


Address exclusion(Jörg Meyer-Stamer)

• Social S ti l• Spatial

• Economic– remote from markets

cost of inputs– cost of inputs– education and skills– supporting institutions


A township strategy might…• Develop local capital

– human natural financial physical socialhuman, natural, financial, physical, social• Bring money in

K it i l ti• Keep it circulating• Foster existing businessesg

– should not be disadvantaged by development • Maximise local spin offs from development• Maximise local spin offs from development• Integrate into mainstream economy


F lFor example• Massive investment in education

– pre-school to ABET and FET• “Noordhoek style” skills & linkages centre

t llit i b t d i i hi– satellite incubators and mini-hives– buying clubs, marketing clubs, networks

• Range of sources of finance• Range of sources of finance– S&L clubs, micro-finance, banks, etc

• Infrastructure and affordable servicesInfrastructure and affordable services• Incremental housing development• Proper CBD with local stake• Proper CBD with local stake

– chain stores, local shops & offices, covered market, stalls• Transport and industrial corridor to “town”Transport and industrial corridor to town• Retain talent, address quality of life issues


10 Point Checklist1 Focus on results (employment) or inputs?1. Focus on results (employment) or inputs?2. Balanced strategy?3 Develop all forms of capital?3. Develop all forms of capital?4. Address exclusion? Link to “first” economy?5 Locally owned?5. Locally owned?6. Partnership for planning & implementation?7 E h i b i i t?7. Emphasis on business environment?8. Integrated multi-sector initiatives? 9 B i i k it i l ti ?9. Bring money in, keep it circulating?10.Do enough for long enough?

“D l t lti t l i t tt f“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 thebut of the capacity of a society to tap the root of popular creativity,

to free up and empower peopleto exercise their intelligenceto exercise their intelligence

and their individual and collective efforts to achieve a better life ”to achieve a better life.

Kari LevittKari Levitt Professor Emeritus, McGill University


Presenter details

Gerry DelanyGerry DelanyPhone: 031 903 2717

Cell: 082 772 8728 @d [email protected]


Strategy Formulation Approaches• 3 speakers with different experiences

– Monitor Group– ARP– CoCT

• Questions– Context?Context?– Approaches?– Your experiences?Your experiences?– Similarities & differences?

Documents

(3) Developing a Township LED Strategy.ppt Sep... · – but 200 000 new job seekers each yearbut 200 000 new job seekers each year – net gain is only 300 000 jobs a year! What