German – South African BDS / LED programme German - South African BDS / LED programme Some Innovations in the field of Local Economic Development

German – South African BDS / LED programme

German - South African German - South African BDS / LED programmeBDS / LED programme

Some Innovations in the field of

Local Economic Development


Challenges Challenges

Lack of conceptual clarityActors and their rolesCapacity and competence Institutional support arrangements Implementation


Our strategyOur strategy

Introduce efficient, effective and low-cost system/approach to empower local municipalities to start LED processes


Strategy elementsStrategy elements

Intensive policy dialogue (contribution to the development of an LED Policy)

Capacity training (in co-operation with InWENT)Development of a private sector led support

structure to municipalities via commercial LED facilitators

Introduction of tools and instruments, such as PACA (Participatory Appraisal of Competitive Advantages), Genesis, the Hexagon as an action planning tool, to mobilise stakeholders, to assess the competitive advantages of their locality and develop and implement action plans.


Innovation 1: market development Innovation 1: market development of LED facilitation services as low of LED facilitation services as low cost support to municipalities cost support to municipalities

Qualification of South African LED experts and facilitators (including a PPP initiative)

Developing a network of LED experts, jointly refining concepts, instruments

Marketing the LED facilitators to municipalities (municipalities requesting support have to finance South African facilitation input 100%)


Role of LED facilitatorsRole of LED facilitators

Initiate and accompany the process, carry out economic quick scans, identify opportunities, develop and sequence actions, access finance, develop appropriate organizational structures

and clarify roles and responsibilities. link local initiatives to regional or national

initiatives, agencies (such as the Development Bank of South Africa) and funds where appropriate.


Principles…Principles…

Reduction of complexityUse what is there – no parallel structuresBottom upSubsidiarity principleLow cost


PrinciplesPrinciples

Demand driven (LED is intrinsically opportunistic)

Rapid intervention with sustainable impact Focus on opportunities rather than barriers

Market drivenOrganic growth Empowering


LED Implementation InstrumentsLED Implementation Instruments

PACAGENESISHEXAGON as an action learning tool


Participatory Appraisal of Participatory Appraisal of Competitive Advantage (PACA)Competitive Advantage (PACA)

Refferred to as a Bottom-up LED approach Participatory and opportunity focused End objective is a series of activities by local actors

towards the growth of the local economy. Can support existing LED strategy of local stakeholders, or

can mobilise towards new approaches

Strenghts: Very fast, very visible, high involvement & impact

Weakness: Does not include formal research– Could be isolated if not linked to regional priorities– Limited geographic area, – Does not create a broader vision or strategy behind

which all stakeholders can align themselves


Genesis Strategic LED approachGenesis Strategic LED approach

Involves Local / District government, business and the community

Combines research studies and participatory planning Identifies key LED projects (catalysts for growth) Addresses institutional arrangements with regard to key

projects Overarching LED strategy as a result

Strengths: Address planning, economic environment and vision. Creates a good framework for development

Weakness: Takes too long– No visible or fast results– Focused on planning, not on implementation


Combining PACA, GenesisCombining PACA, Genesis

Combining PACA and GENESIS will allow for an integrated development approach at local level– Builds a common vision, mobilises towards

opportunities Addresses top-down (strategic, planning, institutional

arrangements) Addresses bottom-up (local action, fast, highly visible) Local stakeholder mobilisation Addressing key bottlenecks Identifying big and small opportunities Project / Activity management and co-ordination


Some ResultsSome Results

The instruments and the private sector led LED facilitation approach received a lot of attention as a possibility to go beyond policy and strategy discussion and actually start implementation processes.

Demand from Local and District Municipalities is increasing.

Demand for cooperation with and technical input into DFID and EU Programmes. (Examples:EU inserted PACA into its tender documents for three large provincial LED programmes, GTZ IS in final round of tender. BDS-LED Programme, DFID and EU partner for the third Province).


GTZ BDS / LED programmeGTZ BDS / LED programme

Gabriele Trah - [email protected] Cunningham - [email protected]

Documents

German – South African BDS / LED programme German - South African BDS / LED programme Some Innovations in the field of Local Economic Development