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Participants’ Report Inter-Agency Conference on Local Economic Development 22 to 24 October 2008 International Labour Organization – International Training Centre Turin, Italy Tim Hadingham Faith Lawrence Volker Steigerwald Lisa Wegner Afia Darkwa – Amanor Truphena Mahindu

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Participants’ Report

Inter-Agency Conference on Local Economic Development 22 to 24 October 2008

International Labour Organization – International Training Centre

Turin, Italy

Tim Hadingham Faith Lawrence

Volker Steigerwald Lisa Wegner

Afia Darkwa – Amanor Truphena Mahindu

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Contents

Acronyms......................................................................................................................................................................iv

1 INTRODUCTION ......................................................................................................... 1

1.1 Participants .......................................................................................................................................................... 1

1.2 Objective .............................................................................................................................................................. 1

1.3 Program ............................................................................................................................................................... 2

2 DAY 1, WEDNESDAY 22 OCTOBER 2008 ........................................................................ 2

2.1 Opening ............................................................................................................................................................... 2 2.1.1 Introduction and Welcome ......................................................................................................................... 2 2.1.2 Keynote Address – Andres Rodriguez – Pose, London School of Economics ............................................. 3

2.2 Working Groups ................................................................................................................................................... 3 2.2.1 Working Group 1 - Decentralisation and the LED Challenge for Local Governments ................................ 4 2.2.2 Working Group 2 – Value Chain Upgrading as Part of an LED Approach ................................................... 5 2.2.3 Working Group 3 – Organising and Mobilising for Effective Public – Private Sector Dialogue .................. 6

2.3 Sofa Session ......................................................................................................................................................... 6

3 DAY TWO, THURSDAY 23 OCTOBER 2008 ..................................................................... 8

3.1 Territorial Competitiveness and Local Economic Development ........................................................................ 8

3.2 Build Up Your Knowledge ................................................................................................................................... 8 3.2.1 Climate change, green jobs and local economic development (ILO) ......................................................... 8 3.2.2 Information and Communication Technologies for effective LED strategies (mesopartner) ................... 10

3.3 LED Radio: Globalisation and the Importance of Place: All you ever wanted to know about LED and never got the chance to ask .................................................................................................................................................. 11

3.4 Building the Global LED Bazaar ......................................................................................................................... 13

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4 DAY THREE, FRIDAY 24 OCTOBER 2008 ...................................................................... 14

4.1 Open Space ........................................................................................................................................................ 14 4.1.1 Business environment in LED – attended by Tim Hadingham .................................................................. 15 4.1.2 Coordination between knowledge portals – attended by Tim Haddingham ........................................... 15 4.1.3 Partnerships for Learning for LED – attended by Faith Lawrence ............................................................ 15 4.1.4 Taking beyond LED localities – attended by Lisa Wegner and Volker Steigerwald .................................. 16 4.1.5 LED entry points – attended by Volker Steigerwald ................................................................................. 16 4.1.6 LED and sustainability – attended by Volker Steigerwald ........................................................................ 16 4.1.7 Capacity at the policy support and implementation level – attended by Faith Lawrence ....................... 17

4.2 Conference Closing ............................................................................................................................................ 17 4.2.1 What was your biggest surprise? ............................................................................................................. 18 4.2.2 What will change in your way of working? ............................................................................................... 18

4.3 Looking Ahead: Spirals of Learning ................................................................................................................... 18

4.4 Overall Assessment ........................................................................................................................................... 19

ANNEX............................................................................................................................ 20

Annex 1: Conference Flyer .......................................................................................................................................... 20

Annex 2: Conference Program .................................................................................................................................... 23

Annex 3: Presentation of Andres Rodriguez – Pose (London School of Economics) ................................................ 26

Annex 4: Paper from South Africa .............................................................................................................................. 31

Annex 5: Three Simultaneous LED Projects ............................................................................................................... 37

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Acronyms

BR&E Business Retention & Expansion Bank of I.D.E.A.S. Bank of Initiatives for the Development of Enterprising Actions and Strategies DETE - ALC Territorial Economic & Employment Development Network for Latin America

and the Caribbean GIS Geographical Information System GTZ German Development Cooperation ILO International Labour Organization IACLED Inter - Agency Conference on Local Economic Development ICT Information and Computer Technology ILGS Institute of Local Government Studies, Ghana LED Local Economic Development LEED Leadership in Energy and Environmental Design LSE London School of Economics LRED Local and Regional Economic Development OECD Organisation for Economic Co-operation and Development PACA Participatory Appraisal of Competitive Advantage PACOS Partners of Community Organisations PDF Philippine Development Forum REA Rapid Economic Appraisal RED Regional Economic Development UNCDF United Nations Capital Development Fund UNIDO United Nations Industrial Development Organization UNOSAT UN Institute for Training and Research (UNITAR) Operational Satellite

Applications Programme

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1 Introduction

1 Introduction

This conference was attended by Faith Lawrence and Tim Hadingham, LED Advisors to the GTZ South Africa’s Strengthening Local Governance Programme, Volker Steigerwald, GTZ Coordinator for the Visayas of the Philippine – German Private Sector Promotion Program, Lisa Wegner and Afia Darkwa - Amanor, LRED Team Leader and LRED Advisor of the GTZ supported Programme for Sustainable Economic Development Ghana, Truphena Mahindu, Program Officer, GTZ supported Promotion of Private Sector Development in Agriculture project Kenya. This participants’ report contains some of the key issues raised in the course of the conference. The conference organisers experimented with a more participatory approach to conference activities, therefore the report also includes a description of and comments on some of the techniques used in this regard. This report is an overview – the presentations made at the conference and supporting documentation can be found on the LED Knowledge (www.ledknowledge.org) website. 1.1 Participants

The event gathered more than 120 participants from Africa, Asia, Latin America, USA, Australia and Europe. A substantial number were from ILO, from outstations, Geneva and Turin as well as representatives of ILO partner institutions. Other development partners have sent participants too such as OECD, World Bank, UNIDO, GTZ, UN - Habitat, UNCDF. The rest was made up of consultants and experts working in the field of Local Economic Development like mesopartner and the London School of Economics (LSE). Participants came from different backgrounds, including those working with Indigenous people. Decentralization, cluster promotion, public - private partnerships, sustainable local development, green jobs, development finance, ICT for development were some of the issues brought forward and taken into consideration. 1.2 Objective

Local economic development is increasingly becoming part and parcel of international technical cooperation. Among agencies, the concern for economic and social development driven by local actors has grown considerably over the past decade. This is partly in response to the growing demand and opportunities for support from local governments, especially in countries with strong decentralisation. In addition, the localization of the MDGs and poverty reduction strategies is directing international assistance towards supporting integrated local development strategies. Participatory approaches are the keys in this area of development work as well as partnerships between the local public and private sector. In the past several agencies have actively sought to exchange and collaborate with each other. Networks and knowledge platforms have been created by agencies like GTZ, OECD, ILO, SDC and the World Bank, often with a regional focus. This has led to a growing community of LED practitioners. Their joint expertise and competency to initiate and support LED processes – of various kinds - is becoming an important asset for governments and the wider development community. The creation of a broader

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2 Day 1, Wednesday 22 October 2008

knowledge platform (or better connected fora) could facilitate a more structured sharing of the tools, guidelines and good practices, which would greatly improve the effectiveness of LED support around the world. As the Conference flyer puts it (Annex 1), the Conference objectives were

• to expand the knowledge base of strategies and tools among Agencies active in supporting Local Economic Development

• to initiate and strengthen existing partnerships among Agencies to improve coordination, undertake joint research, capacity building and technical cooperation.

1.3 Program

As mentioned above, the program was very interactive. Plenary and working group sessions were organised on specific themes, based on case studies and practice reviews. A marketplace was set up for presentations and side discussions by participating organisations. The programme also contained a session on presentations of knowledge sharing networks and facilities. For the program see Annex 2.

2 Day 1, Wednesday 22 October 2008

2.1 Opening

After a welcome cocktail on the evening of Tuesday, 21 October 2008, the Inter-Agency Conference on Local Economic Development (IACLED) officially opened on Wednesday, 22 October 2008 with a World Cafe type exercise. The focus of this exercise was to get participants to meet each other and share their expectations for the conference as well as some of their experiences. The methodology is similar to the LED Café tool. Participants gathered around tables where discussions on a question were facilitated by a table host chosen by the participants. After 20 minutes, the host remained at the table and participants moved to other tables where the process was repeated discussing another question. Various tables were selected at the end of each round to give an overview of what had been discussed to the plenary. What emerged was that most participants wanted to learn about approaches, tools and methodologies used in other parts of the world. The opportunity for networking between programs and agencies was also a common expectation.

2.1.1 Introduction and Welcome

Participants were welcomed by David La Motte from the ILO and Sergio Arzeni from the OECD. Both speakers expressed their support to holding such conference, noting that although LED had been around for over 20 years it was now increasingly gaining legitimacy as an important area of development intervention. This could be seen in the way in which the thinking around LED had deepened and the notion of LED as a process leading to meaningful outcomes was spreading among policy makers and development practitioners.

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3 Day 1, Wednesday 22 October 2008

2.1.2 Keynote Address – Andres Rodriguez – Pose, London School of Economics

The importance of LED processes, especially at the local level was pointed out by using Thomas Friedman’s thoughts on globalisation, as articulated in his book “The World is Flat.” Notwithstanding the implications of current international financial crisis which still remain to be seen, globalisation has made the world more prosperous and has witnessed a convergence between national and regional economies. However, as globalisation has advanced, there has also been an increase in income disparities and inequality. This has created the space for the development of LED. LED differs from traditional approaches to economic development in a number of critical ways

Local Economic Development Traditional Economic Development

territorial sectoral bottom - up top - down (with related issues of

empowerment) decentralised / cooperative managed by central administration maximise local potential focus on large industries, projects and

incentives These differences give LED relevance and legitimacy in terms of responding to the negative impacts of globalisation. Please see the presentation of Andres Rodriguez – Pose in Annex 3 and an interesting paper from him on this subject and its relevance for ILO on the website. 2.2 Working Groups

The participants then broke up into working groups that were focused on the following issues • Decentralisation and the LED challenge for local governments (UNCDF / GTZ South Africa)

• Value chain upgrading as part of an LED approach (GTZ Kenya / ILO)

• Organising and mobilising for effective public private sector dialogue (GTZ Ghana / Institute of Local Government Studies, Ghana)

• LED as a framework for strategic planning and implementation (UN - Habitat Egypt)

• Improving competitiveness and living standards through integrated employment and skills strategies (OECD - LEED)

• Indigenous peoples and LED (ILO / PACOS Trust / Bank of I.D.E.A.S.)1 The working groups were run using the fishbowl methodology. This methodology uses two circles of chairs. The facilitator and the experts sit in the inner circle which also contains three empty chairs. The participants sit in the outer circle. The experts provided short input on the particular themes, after which participants were invited to comment or ask further questions but only if they are occupying one of the empty chairs in the inner circle.

1 A number of participants from an Indigenous People’s conference held on the 20 and 21 October 2008 joined the IACLED.

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2.2.1 Working Group 1 - Decentralisation and the LED Challenge for Local Governments

Faith Lawrence representing the GTZ SLGP LED Component took the role of one of the experts in Working Group 1 while Tim Hadingham and Volker Steigerwald attended the group as participants. Aladeen Shawa from the United Nations Capital Investment Fund (UNCDF) set the scene on decentralisation and LED by introducing an evolving approach to supporting local government with their LED mandate. The approach speaks of an integrated framework for LED promotion which finds its anchor in local and national dialogue. The input provided by Faith Lawrence was based on the contents of the paper submitted by the GTZ SLGP LED component and contained in the conference reader (see also Annex 4). She reflected on the links between LED at a local level and the national policy discourse and highlighted some of the key implementation and institutional challenges. The group responded to three questions on the work group topic

• To what extent do macro policies influence local activities and vice versa? How are these links created and activated?

• What is the role of local government in LED?

• What opportunities and challenges do local governments face in acting as agents for LED? Among the points raised in this working group included

• Local national dialogue is either limited or nonexistent

• Where it exists the local level tends to be dominated by policy developed at the national level

• Having a macro framework is seen to be necessary in terms of long term impact and developing a critical mass in terms of delivery of expected outcomes

• Some form of agency that sits outside the system of governance at the meso level may be necessary to develop and facilitate equal and effective exchanges between the national and local levels

• Donors also have a potential role to play in this linkage – this has been demonstrated in the Philippines by the use of the Philippine Development Forum (PDF)

• The role of the macro level is not necessarily benign and can result in negative impacts at the local level

• In Colombia the national government sets up competitiveness agreements with local government. The activities arising from these agreements are funded using a levy on business

• South Africa has formal systems to ensure cooperation between spheres of government

• Formal systems have the drawback that they risk becoming compliance focused where capacity is low. They might even become a distortion that draws resources and energies away from more critical interventions

• Local government should do whatever it is best placed to do and whatever its capacity allows for

• Often the competence to develop policy or contribute to policy debates does not exist at the local level (at least in subSaharan Africa – South Africa being the exception)

• Another factor that is problematic for coordination is the lack of trust between the private sector, the public sector and civil society

• The regional level which could take a role in bringing national and local governments together is missing in most of subSaharan Africa

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5 Day 1, Wednesday 22 October 2008

• One of the reasons for the poorly developed policy link between national and local government in much of subSaharan Africa can be attributed to the sequence of decentralisation. Decentralisation seems to be most effective when it starts with political decentralisation which is then followed by fiscal and then administrative decentralisation. This sequence is in contrast to the way in which it occurs in most of subSaharan Africa where decentralisation starts with administrative decentralisation followed by fiscal decentralisation and then political decentralisation.

• Coordination and cooperation is critical if we are to avoid a race to the bottom resulting from local government exploiting local economic space in a negative manner. If we get the factory, you don’t – we win, you lose.

• There are three challenges for local coordination o What needs to be / can be done at regional level? o Complexity is a unavoidable condition and needs to be dealt with – perhaps by focusing

on a few key high impact strategic areas o Lack of trust between actors also needs to be dealt with and trust needs to be created –

how is this done?

• Another question to ask is coordination for whom? Is it advantageous for all or does it benefit one set of actors more than another?

• Local government is a natural partner for coordination if it does its normal activities well such as planning and the provision of engineering services. Local government needs to get the basics right

• Local government often does not have the capacity to fully understand the local economy. This capacity needs to be strengthened and supplemented by other levels of government

2.2.2 Working Group 2 – Value Chain Upgrading as Part of an LED Approach

Truphena Mahindu representing the GTZ / Government of Kenya Project: Promotion of Private Sector Development in Agriculture was one of the experts on Value Chains in Working Group 2 facilitated by Merten Sievers of ILO. The group had a wealth of expertise from the tourism sector (South America), wood art and trade (Indonesia) and agriculture specifically on beef (Kenya). In each of these sectors the experts based their discussions on the following main questions

1 What are the market opportunities driving the chain? And what are the constraints? 2 How are you addressing these constraints in a practical way? 3 How is this built into an LED process? And what impacts are expected on the local economy?

The discussions were rich and diverse, given the unique nature of the value chains covered. Truphena Mahindu also presented a poster on the main highlights of the beef value chain in Kenya and how the promotion of Private Sector Development in Agriculture Project has contributed to making the sector more organised and functional by forging sustainable linkages among the participants along the value chain. Contributions from the other participants in the group underscored the importance of value chain upgrading as an LED tool. The main lessons learned were that there is more room for application and improvement of the value chain approach in all three sectors discussed more so because of the way the

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6 Day 1, Wednesday 22 October 2008

value chain approach embraces all the characteristics of LED as opposed to the traditional approach to development.

2.2.3 Working Group 3 – Organising and Mobilising for Effective Public – Private Sector Dialogue

Esther Ofei - Aboagye representing the Institute of Local Government Studies (ILGS), Ghana took the role of one of the experts in Working Group 3 – Organising and mobilising for effective public - private sector dialogue, while Lisa Wegner and Afia Darkwa – Amanor attended the group as participants. Martin Gasser from ILO Geneva facilitated the session. The main learning objective of the work group was that the setup of an efficient public - private dialogue is not a blueprint. Participants learned some essential and practical principles to establish sustainable public - private dialogues in a given environment. The very vibrant discussion in the session dealt with the following questions

1 What is a promising form of an effective public - private dialogue: structured, ad hoc, formal, informal, wide ranging or focused on specific issues?

2 Public - private dialogue has to take place at the micro, meso and macro level to ensure

the right linkage among the stakeholders at these levels (bottom - up and top - down approach)!

3 Shall public - private dialogues be initiated by the

a public sector (such as a forward thinking government) or b private sector (for example either frustrated or very dynamic entrepreneurs) or c third parties (donor organisations)?

4 Each country has its own mode of communication. How can the media (radio stations,

TV, cellphone, newspaper) been involved in a public - private dialogue to ensure that voices of all stakeholders can be heard?

5 How to institutionalize an efficient and sustainable public - private dialogue which is

independent from frequent changes of public sector representatives? The outcomes of the other working groups on

- LED as a Framework for Strategic Planning and Implementation - Improving Competitiveness and Living Standards through Integrated Employment and Skills

Strategies - Indigenous People and LED

can be found on the LED Knowledge (www.ledknowledge.org) website. 2.3 Sofa Session

The concept of Slow Foods and the role of Slow Food Presidia with relation to LED were introduced during a sofa session. Piero Sardo, the president of the Slow Food Foundation, was interviewed by a

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7 Day 1, Wednesday 22 October 2008

Martin Gasser after which participants were given an opportunity to direct questions to Piero Sardo regarding the slow food philosophy. The Slow Food movement was started in the small northern Italian town of Bra with the aim of defending good food and a slow pace of life. The movement later broadened its aims to include quality of life and the ultimate survival of the planet. The Slow Food movement is committed to protecting traditional and sustainable quality foods, primary ingredients, conserving methods of cultivation and processing and defending the biodiversity of cultivated and wild varieties. The movement believes that the only type of agriculture that can offer development prospects, especially for the poorest regions of the world, is one based on the wisdom of local communities in harmony with the ecosystems that surround them.

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8 Day Two, Thursday 23 October 2008

3 Day Two, Thursday 23 October 2008

3.1 Territorial Competitiveness and Local Economic Development

This session was conducted by the parallel presentation of three case studies • a local competitiveness project in the central region of Santa Fe province in Argentina • the Chile Emprende experience of territorial development and employment • the textile cluster case and Confecciones de Atuntaqui in Ecuador.

Each case presented a background in turn and then responded to three questions

• What factors influence territorial competitiveness in this initiative? • What are the innovative features of this initiative? • What factors should exist in the environment for a successful initiative?

The use of innovation was common to all three cases, not just restricted to technological innovation. Process and management innovation also had a high profile. This session was conducted in Spanish and was hard to follow for nonSpanish speakers due to the translators struggling to translate technical terms. However, the method of presenting the case studies in parallel worked well and enabled the participants to compare and contrast the three cases in terms of the three different dimensions. Please see the English versions of the presentations in Annex 5. Reactions to the presentations were given by representatives from ILO and RED DETE - ALC only. It was a pity that the discussion was not opened to the plenary to give the participants a chance to ask questions and clarify open points. 3.2 Build Up Your Knowledge

Participants were divided into two groups for this session with each group focusing on a different issue. The two topics were

• Climate change, green jobs and local economic development (ILO)

• Information and Communication Technologies for effective LED strategies (mesopartner). Each group broke up into three subgroups and rotated through three workshops looking at different issues.

3.2.1 Climate change, green jobs and local economic development (ILO)

The session was divided into three distinct areas. It was Faith Lawrence who attended the three sessions.

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9 Day Two, Thursday 23 October 2008

3.2.1.1 Systemic Approach to LED – Andrea Marchio and Silvia Barbero, Politecnico Torino

The first looked at a systemic approach to LED and how green jobs could be promoted in the interest of environmental preservation. During this session the research projects of the Politecnico di Torino were presented. Key issues raised included

• mapping the green value chain allowed one to see the impact of inputs on outputs

• changing one input can have a positive impact on the end product

• greening the value chain allows for more sustainable outcomes

• creative approaches to industrial and product design ensures that greener and more environmentally friendly processes are adhered to

• need to look at quality project management and available resources

• it is possible to look at economic opportunities from industrial byproducts- for example recycled materials could introduce other viable economic spinoffs.

3.2.1.2 Climate change and Indigenous People – Jenny Lasimbang, PACOS Trust

This session looked at the impact of climate change on the livelihood, traditions and rights of indigenous people. Among others, the following issues were raised

• seasonal changes wrecked havoc with crop production

• livelihoods were negatively affected by seasonal weather patterns

• climate change had a direct negative impact on indigenous cultural practices (such as traditional ceremonies which are guided by season changes)

• limited research was available on alternatives for communities and considerable effort was needed to make this information available when it did exist

• in some areas, floods or irregular rain or even severe drought meant whole communities needed to be relocated. This implied loss of traditions and severe disregard for social networks and practices established over centuries. It also meant moving communities from indigenous rich areas to restrictive urban sprawls

• gaining access to markets and information on alternatives was crucial

• it was also stressed that spaces needed to be created for indigenous people to have voice and for clear government responses to the plight of indigenous people.

3.2.1.3 Green jobs - Anna Belen Sanchez and Francesca Battistin, ILO Geneva

This session dealt with the definition of green jobs and introduced the theory around a systemic approach to sustainable development. Three case studies were referenced. Some issues raised included

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10 Day Two, Thursday 23 October 2008

• We needed to consider the value of green jobs since often it implied more labour intensive and environmentally friendly options

• Environment protection need to be built into LED strategies

• Alternative production methods need to be shared especially those which relates to byproducts

• It was important to address climatic change and green jobs in LED strategies

• Capacity and more awareness raising is needed around green job creation

• There was a fine line between the promotion of green jobs in an area with high unemployment. The dilemma of inviting investors into localities who do not promote green jobs but who create substantial employment opportunities for local people was a real challenge.

• Decision making needed to be guided by clear principles.

3.2.2 Information and Communication Technologies for effective LED strategies (mesopartner)

This session was likewise divided into three topics. Tim Hadingham, Volker Steigerwald, Lisa Wegner and Truphena Mahindu decided to participate in the three rounds of short presentations and discussions.

3.2.2.1 Use of Geographic Information for LED – Luca Delloro, UNOSAT

• Geographic information can be used as a basis for territorial planning and contribute to the development of LED effort.

• Issues to consider include o high data, information demand o data quality, standards, sharability o training, expert knowledge o tailored geographic information systems – commercial vs open source.

The session seemed not well prepared and the discussion was very superficial. The very different level of earlier knowledge regarding GIS by the participants might have contributed to the latter problem.

3.2.2.2 ICT and LED - Joerg Meyer – Stamer, mesopartner

• cellphones – useful for one to one communication, reach out to many, sms – used to provide reminders for process events

• FM Radio – can be used to run features on LED, radio clubs can be used to communicate around specific issues, phone ins, BDS using soap operas (these features can also be applied to TV)

• Web 2.0 – ILO has a channel on www.youtube.com

• BBC Digital Planet has downloadable audio programmes that provide an overview on the latest developments in ICT

• Winntrack and Google Desktop XL – allows entire websites to be downloaded

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11 Day Two, Thursday 23 October 2008

• Mesopartner introduced their LED casts as a way to spread the news about LED and disseminate important lessons learned. This certainly is an innovative idea. Please see LEDcast [[email protected]].

Especially the still untapped potential of a well designed use of cellphones has not been considered enough yet for LED. It might be beneficial to study this and come up with a how to best apply cellphone communication for the promotion of LED.

3.2.2.3 ICT and Training for LED – Alice Vozza, ILO

• DELNET launched in 1998 • training and network platform • initially focused on local authorities • promotes the use of ICT in the development of LED strategies • critical issues include

o the digital divide o rural vs urban connectivity o participation and empowerment o ICTs and local government – public sector often slower in taking advantage of

new technologies

• DELNET provides distance learning courses for the training of local actors (individuals and institutions)

• at the moment four courses are offered o management of local processes o sustainable tourism o gender and development o disaster risk reduction

• despite flexibility of the courses offered, high dropout rates are still a problem – thinking of introducing a face to face component to try reduce this further

• The courses also allow applicants to take advantage of related technical advice services. The issue is the language (still mostly only in Spanish) and the required adaptation to other regions (resource persons, case studies). There also seems to be a need for more interactions on content within ILO units. 3.3 LED Radio: Globalisation and the Importance of Place: All you ever wanted to know

about LED and never got the chance to ask

This session was run as a panel discussion with a moderator initiating the discussion using the question What are the critical success factors for LED? Participants were then invited to submit questions to the panel by sending an sms to a number provided. These questions came through on the www.ledknowledge.org website and were projected onto the screen. The moderator selected from the questions as they came up, sometimes consolidating similar questions.

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12 Day Two, Thursday 23 October 2008

The panel of experts consisted of Francisco Albuquerque, RED DETE - ALC, Peter Kenyon, Bank of I.D.E.A.S., Esther Ofei – Aboagye, Institute of Local Government Studies, ILGS Ghana Andres Rodrigues – Pose, LSE. Issues that arose included

• As LED has become institutionalised, it has become a tool of local government and the community driven aspect of LED is becoming increasingly overlooked. LED is about involving communities in their future

• Capacity building is not enough – it has to lead to economic development • Interventions have to be designed, developed and owned by local communities • Local government needs to be responsive and have an integrated vision of development • LED elements include the development of institutions, social capital and public - private

sector alliances • The empowerment of people is one of the most important outcomes in LED – there is a

risk however that government takes over too much and uses LED as a method of control • Localities are still important in LED despite the rise of global economies because people

live locally and need to make best use of their assets • It is critical that LED interventions respond to local demand and are not purely supply

driven • Globalisation is the context in which LED operates and LED interventions need to adapt

and integrate the conditions imposed by the global economy • LED does not imply only the use of local capital – have to unlock local capital of all types

including human, social and institutional but also have to engage with external capital as well

• When involving young people in LED you need to acknowledge the particular assets that they have including energy, enthusiasm, ability to think outside the box, the ability to cooperate and collaborate

• Need to introduce elements of LED into school curricula • In theory international cooperation should help the LED effort but in practice it tends to

make things more complicated and crowds out local participation • Have to balance top - down interventions with bottom - up participation • LED is a risky policy decision for government because if it is done properly it empowers

people at the local level and reduces reliance on the state • LED is based on sound economic theory but it differs from other mainstream bodies of

economic theory in that it is inductive rather than deductive • It is hard to say whether LED is a zero sum game or can lead to win - win outcomes –

both outcomes can occur • LED is a zero sum game where it results in territories competing against each other • Maybe LED should allow competitive localities to get on with what they do well and

concentrate on the areas that lag • LED should challenge traditional thinking – it is an anarchistic approach that brings a

different set of values • The scale (local, district, regional, provincial) at which LED takes place is not as

important as ensuring that the approach allows stakeholders’ voices to be heard. The approach was an interesting way to conduct a discussion with a plenary. It also showed that there were still so many open questions about the basics of LED. Not all could be dealt with Due to the length

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13 Day Two, Thursday 23 October 2008

of the session and the detour via SMS which resulted in the questions being held up considerably before they were arriving on the screen. 3.4 Building the Global LED Bazaar

An LED marketplace was set up then for presentations, display of materials and interactions by all participants and organisations. It was very lively, included drinks, snacks and live music. It provided an informal setting for exchange and dialogue. ILO organised an ad hoc session at the same time with interested participants presenting case studies on ILO’s work in Indonesia, Ghana and the Philippines. As Volker Steigerwald is working for GTZ in the Philippines he was invited for this session and was able to contribute experiences from the Private Sector Development Program.

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14 Day Three, Friday 24 October 2008

4 Day Three, Friday 24 October 2008

4.1 Open Space

The most part of the final day was run using the open space methodology. This was to facilitate the discussion of topics of interest to the different participants as well as to allow participants to present their experience. Participants were given the opportunity to write a proposal on an issue that they have experience of or an issue that they believe needs further discussion. They become hosts for a working group. All the proposals were read out and then allocated a time slot and a venue. Participants were then invited to attach their names to a discussion group and then attend the groups that they think would be of most interest to them during the duration of the open space session. Later, the host was supposed to prepare a summary of the issues discussed at the end of each discussion. An hour was allocated to each group. The group finishes when the discussion ends. As there were so many topics, three sets of working groups with one hour each were organised. Participants were free to join and change groups as they felt like. The open space method is based on four principles and one law. The principles are

• whoever comes are the right people • whatever happens is the only thing that did • whenever the group starts is the right time • when it is over, it is over.

The law (of the two feet) is

• Participants’ feet should carry them to where they are most productive. Topics covered in the open space included

o LED and climate change – Manoj Mishra o LED journal – Jorg Meyer - Stamer o Indigenous people and LED – Jannie Lasimbang o Business environment – Hideki Kagohashi o LED and financial services – Henri Dommel o Innovation adding value – Francisco Obreque o LED and crisis prevention – Francesca Battistin o Move from cluster development projects to LED – Carlos Lopez o Partnerships for learning for LED – Bert Helmsing o What do I understand as LED – Dr Rumal Singh o Portals for LED – Annie van Klaveren o LED and the financial crisis – Alice Ouédraogo o Linking culture, change and LED – Marcus Powell o Taking LED beyond localities – Matthieu Cognac o How LED facilitators help projects – P K Kesavan o LED and sustainability – Stephan Ulrich o Indigenous Economic Development – Jannie Lasimbang o LED entry points – Ann Widepalm

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15 Day Three, Friday 24 October 2008

o Empowering people through skills – Carmela Torres o Member based organisations and LED – Carlien van Empel o Capacity at the policy support level- Jenifer Bukokhe.

4.1.1 Business environment in LED – attended by Tim Hadingham

• The BR&E concept as it has been developed in South Africa was presented and discussed • The approach to business environment interventions in Kolkata, India and in Sri Lanka

was also discussed • The Sri Lankan example is interesting in that it used a value chain assessment as the

basis for identifying bottlenecks in the local regulatory environment.

4.1.2 Coordination between knowledge portals – attended by Tim Haddingham

• People use portals as a library and very little interaction takes place • Getting people to participate and generate content is a real challenge • One way of doing this is to start groups with people you know • Discussion on how the different portals should cooperate needs to be ongoing and

should evolve as the portals themselves evolve

4.1.3 Partnerships for Learning for LED – attended by Faith Lawrence

Some issues raised included • Partnerships for learning was critical • There was a need to build bridges between academic institutions, research

organisations, donor agencies on LED related topics • Managing learning partnerships was important and there were different media to do

this. This included an LED academic journal, a knowledge portal, websites, podcasts etc • It was important to ensure that research conducted at universities was made available

to the international donor community working at the country level • There was a need to encourage more reflection on case studies and practical work

experience. Such practical insights can provide invaluable lessons for other countries facing similar or contrasting challenges

• Mediums need to be sought to strengthen these partnerships • Different experiences were shared. One was the example of the tertiary institution study

that was currently underway in South Africa. The objective of this study was to look at the content of LED teaching and where possible, include methodologies and tools that have been developed by the GTZ and its partners. Another example referred to linking research topics of masters and PhD students at leading universities with the content and technical depth needs of donor communities. Creating a topic matching space could provide a win - win solution for both students and development practitioners alike.

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16 Day Three, Friday 24 October 2008

4.1.4 Taking beyond LED localities – attended by Lisa Wegner and Volker Steigerwald

• GTZ supported Local and Regional Economic Development Programs (LRED) programs in the Philippines, Indonesia and Ghana are in the process of replicating the LRED approach to other areas and scaling up the approach to the national level.

• Experiences were shared with ILO Indonesia that is likewise looking for ways to move beyond one program area in Eastern Java

• It is important to have a strong national Government champion that drives the scaling up. In the Philippines, this is the Department of Trade and Industries DTI, in Indonesia the National Planning Ministry BAPPENAS, in Ghana the Institute of Local Government Studies ILGS.

• Private sector involvement is likewise crucial. Chambers of Commerce and Business Associations should play a strong role

• Good practices need to be documented in reference documents and success stories to convince the stakeholders that the approach is successful. Testimonies from local public or private sector actors about the process and the benefits are very powerful.

• The ILO colleagues from Indonesia had initial contact with the GTZ supported RED program. They will again approach the GTZ team members and discuss about a joint strategy for replication and upscaling

• It was pointed out that in one country different donor organisations should work jointly on LED issues at the local, regional and national level, using existing structures. The advice was given by Volker Steigerwald and Lisa Wegner to the ILO colleague from Indonesia

• One possible institutional option is to set up a national L(R)ED Centre of Excellence, as it is planned in Ghana. Another is to firmly ground the L(R)ED approach in a national training academy and / or academic institutions at national or regional level.

4.1.5 LED entry points – attended by Volker Steigerwald

• As the first working group discussed longer than one hour, Volker Steigerwald was a bit late for this second group

• Seasoned LED practitioners from Nepal shared their experiences, described the stages of an LED process, debated on the mesopartner tool Participatory Appraisal of Competitive Advantages (PACA) or Rapid Economic Appraisal (REA) as it is called in the Philippines. These are the tools to kickstart an LED process in a locality, identify the local champions, establish trust between the public and private sector through working together, creating economic dynamism, realize quick wins.

• After one year it is good to bring all stakeholders together for a joint assessment. Here, another mesopartner tool is the Compass of Local Competitiveness. This will lead to a way forward and more catalytic projects integrating the different activities.

• Newcomers should make use of the rich experiences of GTZ and ILO when starting L(R)ED processes.

4.1.6 LED and sustainability – attended by Volker Steigerwald

• The concept of sustainability and sustainable development was presented and discussed at the outset

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17 Day Three, Friday 24 October 2008

• Lengthy examples from India (Chamber in Calcutta) and from Nepal were presented. • It is always good to start with the end in mind, but often development interventions do

not follow this advice. • The discussion was not well focused and stayed very much on the surface.

4.1.7 Capacity at the policy support and implementation level – attended by Faith Lawrence

• This session addressed the institutional challenges and opportunities presented by a more integrated and holistic approach to LED at the national and subnational level. The Ugandan experience was presented.

• The Nepalese delegate also provided strategic input on Nepal’s experience with institutional design and LED. Some of the insights shared were that experiences were similar but the scale was different. Also it was important to ensure that a constructive space was created for industry to participate in LED policy and national economic discourses.

• The South African system provided an interesting case for institutional alignment. Substantial discussion took place regarding the disjuncture between policy and implementation. Also, it was not enough to have good systems but rather, it was more strategic to ensure that good systems and institutions were functional. Capacity challenges of officials managing LED at local and regional levels were also addressed.

• A more substantive information exchange was recommended on approaches and lessons

• Fora for Donor - Government dialogue and prioritisation were also discussed. It was found that the Ugandian model of negotiating and working with donors on common development priorities and the influence of budget allocation worked well.

A complete record of the discussions at all the groups can be found on www.ledknowledge.org. Again, looking at the proposed topics it became obvious that there were still many basic questions about LED by the participants. The topics were at very different levels of detail and concreteness. And there was no more time to report back to the plenary and further process possible agreements and way forwards that might have been reached within the groups (if ever). The open space was a bit left hanging, and this was also expressed by one of the lead moderators Marc Steinlin. 4.2 Conference Closing

Final comments were given by a panel of key stakeholders. They were asked to provide some concluding reflections on the conference activities. The panel consisted of

• Afia Darkwa-Amanor, GTZ/ICON LRED Ghana • Jorg Meyer-Stamer, mesopartner • Aurelio Parisotto, ILO Geneva • Jannie Lasimbang, PACOS Trust, Malaysia • Bert Helmsing, Institute of Social Studies, The Hague • Kees van der Ree, ILO Geneva.

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18 Day Three, Friday 24 October 2008

The panel was asked to respond to two questions.

4.2.1 What was your biggest surprise?

• The innovative approaches used as the basis for the programme resulted in some very interesting outcomes

• The opportunities for really useful networking • The body of knowledge that exists around LED that can be leant into for guidance and

support • The theme of diversities and similarities was striking – the approaches used are quite

diverse while in many cases there is a good deal of similarities between the issues • The issue of indigenous rights was a new issue that was raised but one that needs

further discussion and sensitisation as there is very little understanding of the indigenous economy

• The conference avoided issues of how to deal with the deep conflicts that are common in LED.

4.2.2 What will change in your way of working?

• Greater identification and inclusion of marginalised groups • Need to make sure that space exists for greater creativity • Increased peer to peer dialogue • Things won’t change but will be enriched • Need to look for partnerships in indigenous communities • In short term need to share methods and information, in the longer term need to

establish partnerships for learning. 4.3 Looking Ahead: Spirals of Learning

The conference ended by delegates participating in a Spirals of Learning exercise. Participants were roughly divided into four groups and asked to write their responses to three different questions on large, different coloured post it notes. These notes were then stuck on the floor in a spiral. Delegates circulated and looked at the responses in their own and other groups. The three questions that participants were asked to respond to were

• What was the wow of this conference? • What did you learn? • What will you do next?

An example of the outcome can be seen in the picture below

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19 Day Three, Friday 24 October 2008

More examples can be found on the www.ledknowledge.org website. 4.4 Overall Assessment

The Conference was a sort of follow up of the International Conference on Local and Regional Economic Development to Overcome Poverty in Asia held from 22 to 24 November 2006 in Laos organized jointly by BMZ / GTZ, SDC, IFAD and ILO. In Turin, the exchange of experiences included participants from Africa and Latin America. A big group came together to share and discuss. Many old contacts renewed, new contacts made, networks established, ideas exchanged. Forward action was agreed such as creating a network of agency staff promoting LED, developing a LED Executive Program, linking websites and resources on the global LED knowledge site, teaming up for LED related work and workshops, assessing and further developing the distance learning courses on LED and LED related subjects, joint work of different development partners in a number of countries. In retrospect, what was missing was a common thread that ran throughout the Conference, providing a more coherent direction to discussions, debates and conference outcomes. In the absence of this, some sessions seemed not to be properly linked to each other. Also, while discussions touched upon many key issues, often that was just how deep it could go. Insufficient time allocated for reflection and participation in plenary or group discussions meant that limited emphasis was placed on reflections on input, consolidation of findings or sorting out of contradictions. The open space created a lot of energy, but topics and sessions were of so very different scope as were the resultant debates. Implications and agreements were not brought back and further consolidated in the plenary. It will be interesting to observe how the generated energy will lead to constructive follow ups and how they will be monitored and documented. With the website in place, one precondition has been established. And as was mentioned throughout the Conference, we need more accounts of L(R)ED successes like the cases presented from Ecuador, Argentina and Chile. Overall, the Conference was highly interactive, experimented with a number of methodologies and offered an innovative mix of styles of presentation and discussion. We commend the organisers for this dynamic event!

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20 ANNEX

ANNEX

Annex 1: Conference Flyer

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INTER-AGENCY CONFERENCE ONLOCAL ECONOMICDEVELOPMENT

Maybe not your firstinternational conference, but certainlyyour most appetizing one...

Turin (Italy), 22-24 October 2008

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It is promoting participa-tion and local dialogue, connecting people and their resources achieving decent work and a higher quality of life for both women and men.

To get to know just how international agencies and national organizations put LED into practice, the conference will bring together a wide range of part-ners. They will discuss how LED can be made relevant within diff erent contexts. Decentralization, cluster promotion, public-private dialogue, sustainable local development and “green jobs” are some of the core topics.

The conference will be highly interac-tive and include working group sessions as well as plenary debates. A dedicated

LED Bazaar will be the show-ground for best practices and innovative

products. All together, par-ticipants will gain more insights

into LED and will discuss ways to keep in touch for building and better sharing knowledge.

A special event will be held jointly with Terra Madre, giving participants an insight into innovative ways of promot-ing local development by the Slow Food movement and its food communities all over the world.

Look up ITC ILO Turin (www.itcilo.org/led) or ILO Geneva (www.ilo.org/led) to learn about ILO’s work on Local Economic Development. Shortly a special LED

platform will be launched with exten-sive information about the Conference.

For conference programme and contents, contactMartin Gasser in Turin ([email protected]) orKees van der Ree in Geneva ([email protected])

For registration and logistics, contactCristiana Actis ([email protected])

FA

CT

SH

EE

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y 0

8)

Inter-Agency Conference on

Local Economic Development (LED)

Turin (Italy), 22-24 Oct. 2008

Better Knowledge Sharing and Partner-ship Building to boost local economies, create employment and reduce poverty

Background

Local economic development is increasingly becoming part and parcel of international technical cooperation. Among agencies, the concern for economic and social develop-ment driven by local actors has grown considerably over the past decade. In support of these eff orts, networks and knowledge platforms have been created by agencies like GTZ, OECD, ILO, SDC and the World Bank, often with a regional focus. This has led to growing communities of LED practitioners.

The linking of these platforms could facilitate a more structured sharing of the tools, guide-lines and good practices, which would greatly improve the eff ectiveness of LED support around the world. Against this context the ILO (with the active participation of OECD/LEED, UNHABITAT, UNIDO, UNCDF, IADB, SDC, GTZ and others) is organizing the fi rst inter-agen-cy LED conference, meant to take stock of LED practices around the world and develop a joint strategy for knowledge development and networking.

Conference objectives

To expand the knowledge base of • strategies and tools among Agencies and organisations active in supporting Local Economic Development To initiate and strengthen existing partner-• ships among Agencies to improve coordi-nation, undertake joint research, capacity building and technical cooperation.

Contents

Plenary discussions will be held to review diff erent approaches to LED. Topical issues will be introduced by expert panels, such as Investment-led local development, National frameworks and local institutional change, LED and social inclusion, Sustainable local development, etc.

Working group sessions will be organized on specifi c themes, based on case studies and practice reviews. A market place will be set up for presentations and side discussions by par-ticipating organizations. The programme will also contain sessions on existing Knowledge Sharing networks and training facilities.

Who will participate

Staff of International Organisations; donor organizations; national/regional/local govern-ments; Employers and Workers organizations; Cooperative Organizations, practitioners, non-governmental organizations and the private sector (expected total: 100-150).

Language: English, possibly with translation facilities for Spanish-speaking participants (tbc).

SPECIAL EVENT on Slow Food movement and LED. Introduction and discussion, fol-lowed by a slow food “tasting” (cocktail and dinner).

Conference documentation

The next issue of @local.glob published by DELNET will be devoted to the event.

Costs of participation

EUR. 1’100 (inclusive of conference fee, lodg-ing and half-board at the International Train-ing Centre of the ILO; exclusive of travel).

Registration deadline: 12 September 2008.

t

In conjunction with the Terra Madre festival 2008 in Turin, Italy(www.terramadre2008.org) the International Training Centre of the ILO (ITCILO) is hosting a major inter-agency gathering aboutLocal Economic Development, 22-24 Oct, 2008.

LED means more than just economic growth.

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23 ANNEX

Annex 2: Conference Program

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Knowledge Sharing and Partnership Building to boost local economies, create employment and reduce poverty  

AGENDA - Turin, Italy, 22 - 24 October 2008   

Pre-Registration and welcome cocktail: Tuesday 21 October, 18h00 – 20h30

Day 1 - Wednesday 22 Oct

8:00-9:00 Registration

9:00-10:30 Opening the conference with café style

10:30-11:00 Coffee & Tea break

Introduction and welcome by David Lamotte (ILO) and Sergio Arzeni (OECD/LEED)

Conference objectives and programme

‘Making the case for Local Economic Development’ by Andrés Rodríguez-Pose (LSE)

11:00-12:30

‘The practice of LED’: presentation of working group topics

12.30-14:00 Lunch break

THE PRACTICE OF LED

Working group 1

Working group 2

Working group 3

Working group 4

Working group 5

Working group 6

14:00-16:00

Decentralization and the LED challenge for local governments

(UNCDF/GTZ South Africa)

Value chain upgrading as part of an LED approach

(GTZ Kenya/ILO)

Organizing and mobilizing for effective Public-Private Dialogue

(GTZ/Institute of Local Government Studies, Ghana)

LED as a framework for Strategic Planning and Implementation

(UN-HABITAT Egypt)

Improving competitiveness and living standards through integrated employment and skills strategies

(OECD-LEED)

Indigenous peoples and LED

(ILO/PACOS Trust/Bank of I.D.E.A.S)

16:00-16:30 Coffee & Tea break

16:30-18:00

SLOW FOOD Sofa Session: the role of SLOW FOOD presidia in LED With Piero Sardo, President of SLOW FOOD Foundation

 

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Knowledge Sharing and Partnership Building to boost local economies, create employment and reduce poverty  

AGENDA - Turin, Italy, 22 - 24 October 2008   

Day 2 – Thursday 23 October 09:00-10:30

Territorial competitiveness & Local Economic Development The experience of the MIF-IDB, UNIDO and Chile Emprende - commented by RED DETE-ALC and ILO

10:30-11:00 Coffee & Tea break

BUILD UP YOUR KNOWLEDGE

Topic 1 Topic 2 11:00– 12:30 Climate change, green jobs and local economic

development (Coordinated by ILO)

Information and Communication Technologies for effective LED strategies (Coordinated by Mesopartner)

12:30-14:00 Lunch break

LED RADIO: GLOBALIZATION AND THE IMPORTANCE OF PLACE 14:00-16:00 All you wanted to know about LED and never got a chance to ask

With Andrés Rodríguez-Pose (LSE), Peter Kenyon (Bank of I.D.E.A.S), Esther Ofei-Aboagye (Institute of Local Government Studies, Ghana) and Francisco Alburquerque (RED DETE-ALC)

16:00-18:00

Building the global LED Bazaar : Show and share your LED products and ideas With drinks and snacks served

 

Day 3 – Friday 24 October Experiences and different approaches to knowledge sharing & LED (UNIDO, MIF-IDB, OECD-LEED, ILO, UN-HABITAT, UNCDF, GTZ, LEDNA, Red DETE-ALC, Mesopartner and others)

09:00

OPEN SPACE DAY:

Building and Using Knowledge for LED practices: How can we cooperate? How to improve and move forward?

Coffee & Tea break

Lunch break

Opening the Open Space – Market Place of Topics

� Working groups on selected topics Open Space is a rapidly spreading high-performance way of discussing, sharing and collaborating, that leaves conventional ways of conferencing far behind. Participants have full control over the agenda and have the opportunity to raise real-time all issues that are relevant to address the question at stake. Relying on self-organisation and emergence, OpenSpace ensures maximal efficiency & interaction, 0% boredom and pretty close to 100% fun! Join the most exciting experience of meeting, sharing and exploring!

14:45-15:30

CLOSING OF CONFERENCE: final comments by panel of key stakeholders (Government, International Organisations, Academic Institutions, Service Providers, LED Network, Indigenous Peoples)

15:30-16:30

LOOKING AHEAD: SPIRALS OF LED LEARNING

18:15 Departure to SLOW FOOD tasting at the ‘Terra Madre’ and ‘Salone del Gusto’ in the Lingotto Centre

 

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26 ANNEX

Annex 3: Presentation of Andres Rodriguez – Pose (London School of Economics)

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27 ANNEX

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28 ANNEX

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Annex 4: Paper from South Africa

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28 Issue No. 5, 2008 - @local.glob

Decentralisation and the Challenge of Institutionalising Local Economic Development

Some practical insights from the South African experience

While many of the arguments for instituting decen-

tralisation in South Africa were similar to those made

in support of decentralisation programmes elsewhere in

the world, the post apartheid government did not pursue

a formal decentralisation agenda but rather ensured that

the principles of such a process were implicit in a more

general process of governance reform. This was evident

in the policies, structures and systems that provided the

foundation for the new developmental role of local gov-

ernment, under the curatorship of the National Depart-

ment of Provincial and Local Government (DPLG).

Amongst the array of legislative reform that took place,

new impetus was given to the role of LED in the govern-

ance arena. Whereas before LED was confined to SMME

projects and survivalist type initiatives, policy makers in

government started to make the connections between

the enabling role of local government and the economic

and social spin-offs that could come from sound local

economic development strategies and practice.

South Africa’s relatively young democracy has

brought with it a range of opportunities but also

a host of challenges for the practice of local eco-

nomic development (LED). The local government reform

process that took place in the 1990s placed development

planning, and with it LED, firmly within the responsibil-

ity of local government. This was primarily motivated

by the proximity of local government to local commu-

nities but also by the need to ensure that participatory

governance was firmly entrenched in the way in which

the state evolved and was constituted. A host of poli-

cies, legislation, systems and frameworks were put in

place in support of this new developmental role for local

government.

This article provides a brief overview of the context of

LED in an evolving and learning system of local govern-

ance in South Africa. It draws on some of the strengths

of policy in practice but also highlights some of the chal-

lenges that are still being faced with institutionalizing

LED. It concludes with some observations and lessons

that may be applicable elsewhere.

Decentralization, LED and the South African

development landscape

In recent years decentralisation has been increasingly

mainstreamed into the programmes of international de-

velopment agencies. In essence decentralisation refers

to “the transfer of political power, decision making ca-

pacity and resources from central to sub-national levels

of government” (Walker, 2002).

Faith Lawrence and Tim HadinghamAdvisors on Local Economic Development to GTZ’s Strengthening Local Governance Programme, South Africa

Decentralisation and the Challenge of Institutionalising Local Economic Development

Em ex eugait laore essisci eugiat.Ut num inim vulpute tueriure

SOU

RC

E:

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[email protected] - Issue No. 5, 2008

1 Abbreviated. Taken from DPLG: Stimulating and Developing Sustainable Local Economies: National Framework for LED in South Africa (2006-2011).

The White Paper on Local Government (1996) crystal-

lised this new role when it stressed that local authorities

needed to make the link between local planning and the

promotion of sustainable local economies. To this end

important groundbreaking legislation was put in place

that further entrenched this new way of managing local-

ities. Central to the new approach was the introduction

of integrated development planning (IDP) which required

that planning and development prioritisation were un-

dertaken in a participatory manner. It is within this con-

text that the notion that local government should take

an enabling role in LED began to emerge and become

the explicit responsibility of local government.

The LED Framework

The DPLG’s response was to develop a framework for

LED that aimed to enhance the developmental role of

the state by “support(ing) the development of sustaina-

ble local economies through integrated government ac-

tion” (p2). It also sought to present a guiding framework

that speaks to a strategic implementation approach that

is inclusive of state and non-state actors.

The framework implicitly acknowledged that local

economies operate and are influenced by a multitude of

complex stakeholders and networks, and the interaction

amongst these players contributes towards the dyna-

mism and vibrancy of localities.

The framework has seven key objectives.1

1. To shift towards a more strategic approach to the

development of local economies to address chal-

lenges and previous failures;

2. To support the optimal realisation of locality potentials

and the linking of this with the national economy;

3. To elevate the importance and centrality of effec-

tively functioning local economies;

4. To wage the national fight against poverty more ef-

fectively through debate, strategies and actions;

5. To improve community access to economic initia-

tives, support programmes and information;

6. To improve the coordination of economic develop-

ment planning and implementation across govern-

ment and between government and non-govern-

mental actors; and

7. To build greater awareness about the importance

and role of localities and regions which globally are

playing an increasingly significant role as points of

investment.

In addition to these key objectives, the framework also

recognizes a need for a more targeted approach to locality

development if local economies are to be enhanced. Four

strategic interventions are recommended in this regard:

a. Improve good governance, service delivery, public

and market confidence in municipalities;

b. Spatial development analysis and planning through

exploiting the comparative advantage and competi-

tiveness of the 52 municipal regions;

c. Intensify enterprise support and business infra-

structure development in local areas; and

d. Introduce sustainable developmental community

investment programming.

The framework also calls for the establishment of an

LED intergovernmental forum, as well as an excellence

network focussed on research, knowledge and sharing

of information.

Reflections on progress

Since the emergence of developmental local government

some important observations and lessons regarding the

practice of LED have started to emerge.

Some positive gains include:

•ThenationalframeworkforLEDinSouthAfrica

•The government-wide Strategic Agenda for Local

Government which placed LED firmly on the Inter-

governmental agenda;

•Adrivetoensurethatallprovincial,districtandlo-

cal authorities have sound economic profiling that

Decentralisation and the Challenge of Institutionalising Local Economic Development

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30 Issue No. 5, 2008 - @local.glob

can inform strategic decisions on comparative and

competitive advantage;

•AnincreasedavailabilityoftrainingforLEDofficials

across the country on various LED topics;

•Anationalemphasisonthecreationofvibrantlocal

economies that would feed into regional develop-

ment and growth;

•Planningalignmenthasimprovedsignificantlyespe-

cially in urban areas;

•The development of a variety of instruments and

tools now covering a range of areas including stim-

ulating competitiveness, strategy formulation, iden-

tifying catalytic interventions and managing LED

processes; and

• The establishment of an LED Practitioners Net-

work.2

Emerging challenges

The challenges that LED faces as it seeks to take root

in the local government environment tend to coalesce

around five broad, inter-related themes: organisational

arrangements, inter-governmental linkages, economic

analysis; the engagement of non-state actors and the

development of LED capacity.

Organisational Arrangements

The status that the LED function is accorded varies widely

between different municipalities, and consequently the

power and access to resources that this function is able

to command is also highly variable. The LED function is

rarely located in its own department and most often op-

erates as a unit in a larger department such as planning

or community services. Furthermore, the delivery of ba-

sic services is given priority over LED activities, both in

terms of political support and access to resources.

The problem of where to locate the LED function within

the organisational structure of the municipality is further

intensified by the nature of LED and the necessity for fre-

quent interaction with local markets. The fluidity and vi-

brancy of opportunities in local markets often require dif-

ferent decision making and resource flexibility than what

is usually the case in the daily functioning of municipali-

ties. Such dilemmas, compounded by excessive red tape,

often result in missed investment opportunities. Consid-

erable work is therefore still needed on alternative LED

institutional arrangements if a more dynamic and vibrant

economic environment is to be achieved.

Intergovernmental Linkages

While the responsibility for LED falls within the sphere

of local government, executing strategies and plans de-

veloped at the local level are directly impacted on by de-

cisions and resource allocations made by other spheres

of government. While mechanisms such as inter-gov-

ernmental forums have been put in place to facilitate the

relationship between the different spheres, this does not

negate the compliance costs arising from inter-govern-

mental procedures, processes and budgeting deadlines.

Local government is not only reliant on other spheres

for funding and implementation support, there has also

been an attempt to establish coherence between the poli-

cy and planning instruments used in the different spheres.

An example of this is the way in which local integrated

development plans, provincial growth and development

strategies and the national spatial development perspec-

tive broadly reflect and are reflected by each other.

LED at the local level does not receive the same direct

funding support from other spheres of government, as

other local government services such as the provision of

water, sanitation and housing. Consequently, funding

for LED activities has to be drawn from other sources,

such as the municipality’s own revenue, or alternatively

these activities have to be “piggy-backed” on activities

funded by other spheres of government. This situation

is aggravated by the fact that the limited availability of

direct funding for LED does not reduce the political pres-

sure to deliver LED outcomes.

Economic Analysis

The decentralisation of LED functions is a response to a

number of perceived benefits that accrue from perform-

ing these functions at a local level. These benefits relate

to both the way markets operate in terms of allocation

efficiency and the availability of accurate information on

market performance and prices, as well as to more ge-

Decentralisation and the Challenge of Institutionalising Local Economic Development

2 See article by Tim Hadingham: The South African LED Network: From Spectator to Participant.

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[email protected] - Issue No. 5, 2008

neric governance concerns such as accountability and

responsiveness.

Markets operate in localised spaces where buyers and

sellers come together. This is true even of global markets

which have to have a physical presence (even if this is in

a virtual space). The proximity of local government to the

grassroots gives it a unique and profound understanding

of local conditions. Consequently, local government is

well placed to respond to market failure and ensure that

resources are allocated both efficiently and equitably.

The availability of accurate information is often seen

as key to the effective functioning of markets. The as-

sumption is made that the local government institution

has sufficient capacity and sensitivity to market condi-

tions to ensure that the effects of market failure are min-

imised or the operation of markets are enhanced.

In terms of governance, the local sphere of govern-

ment is seen to be the most responsive to local needs

and issues. In theory, the decentralisation of power and

resources to this sphere allows local government to re-

spond more rapidly and more appropriately to changes

in local conditions than more centralised institutions of

governance. However, this is frequently not the case in

South African municipalities that are characterised by

low levels of skills and capacity.

Engagement of Non-State Actors

The involvement of non-state actors, the private sector

and civil society, in local government driven LED initia-

tives has been limited. The private sector in particular

has a pivotal role to play in LED as not only are they

the main source of employment creation but also con-

tribute to the dynamism and quality of a specific local-

ity’s economy. It is therefore important that the varying

yet complimentary interests of private and state sectors

converge in a constructive and positive way.

Increasingly emphasis is being placed on constructive-

ly managing the dialogue between state and non-state

actors. Mutual suspicion exists between the public and

private sector that makes the dialogue between the two

groups difficult. This mistrust is essentially premised on

a divergent set of ideological beliefs (and consequently

differing priorities) with government believing business

is anti-poor and business believing that government is

welfarist and anti-profit in its outlook. The private sec-

tor’s apathy towards local government LED initiatives

has been further enhanced by its experience of local

government bureaucracy, red tape and unproductive

“talk shops” where much is promised but little of benefit

to the private sector is actually produced. These inher-

ent tensions between the public and private sectors are

compounded by the apartheid legacy of a predominantly

white-owned and controlled private sector and a pre-

dominantly black public sector.

The idea that the priorities of public and private sector

are not necessarily mutually exclusive has yet to take

hold universally, but where this understanding has taken

root the LED agenda has notably progressed. Notwith-

standing these differences and complementarities, local

government has battled to provide an enabling environ-

ment that enhances and capitalises on the natural assets

of a locality, while at the same time convincing private

sector stakeholders to become involved as a partner in

implementation activities.

LED Capacity

Institutionalising LED in South Africa has illuminated a

number of serious capacity challenges that continue to

affect the impact and pace of local economic develop-

ment. Despite significant resources ploughed into this

field, much more is still needed to create ‘the vibrant and

dynamic economies’ that the LED framework envisages.

The quality and qualifications of personnel in key LED

portfolios and the inability of incumbents to negotiate

and strategise with the often intimidating private sector

are a big stumbling block to the effective implementa-

tion of LED initiatives.

It could be argued that capacity gaps in municipalities

have left an unhealthy dependence on private consult-

ants who are contracted to design and advise munici-

palities on LED strategies and implementation plans. In

many instances these consultant-driven strategies are

based on desk research rather the outcomes of partici-

patory processes that provide a picture of the “real” lo-

cal economy. A comprehensive capacity building pro-

gramme targeted at both public officials and private

sector consultants is needed to improve the content,

quality and management of LED initiatives.

Decentralisation and the Challenge of Institutionalising Local Economic Development

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32 Issue No. 5, 2008 - @local.glob

Limited LED capacity has resulted in municipalities

focussing on compliance with statutory requirements

rather than attempting to proactively manage economic

opportunities that could have widespread local impact.

Conclusion and observations

The article provides a brief overview of the context of

LED in an evolving environment of local governance in

South Africa. It outlines some of the strengths such as

a comprehensive LED framework but also some of the

challenges. Some key lessons so far include:

• There are multiple public, private and community

actors involved in LED and it is important to ensure

shared responsibility in locality development;

• Understandingthesocialandpoliticalcontextofan

area and building trust relations is important if one

is to win the support of local leadership and work

towards sustainable economic solutions to local

conditions;

• Intergovernmental planning and management is

crucial especially around infrastructure investment,

service provision and locality development, as well

as in order to avoid duplication of services and was-

tage of resources;

• HavingtherightexpertisetomanageanddriveLED

initiatives is crucial and considerable resources need

to be ploughed into developing individual capability;

• Itisimportanttoensurethatcapacityprogrammes

extend beyond the individual to a more holistic pro-

cess where institutions are strengthened and envi-

ronments are changed;

• Theprivatesectorplaysacriticalroleinunlocking

economic potential in a locality. It is important that

local government is able to work in collaboration

with the private sector to unlock this potential and

transform the local economy into a vibrant and dy-

namic one. The challenge is to ensure that local go-

vernment officials are equipped enough to negotiate,

debate and strategise with the private sector around

common interests;

• It is important that capacity building programmes

are designed to include private consultants who are

often contracted to develop LED strategies, projects

and implementation plans. This will ensure that par-

ticipatory and appropriate methodologies and tools

are applied in the conceptual and execution phase of

strategy and programme development;

• Thereisnouniversalinstitutionalarrangementthat

can ensure the effective implementation of an LED

programme. Finding the right arrangements to make

things work given local constraints will go a long

way in ensuring sustainable LED initiatives;

• Managinginformationandensuringasteadyflowof

accurate information is an important stepping sto-

ne in addressing issues of mistrust and confusion

around LED decisions.

Finally, each country embarking on an LED programme

has to find its own distinctive approach given its unique

features and historical context. LED practice in South

Africa is still evolving and no doubt there are still many

more lessons to be learnt. What is clear is that LED is

complex, multi-dimensional and multifaceted and there

is no single solution to creating an enabling environ-

ment for LED to thrive. However, it is critical that LED

is given the prominence it deserves in local government

decision making and that issues of economic develop-

ment become central to the developmental agenda of a

locality.

Decentralisation and the Challenge of Institutionalising Local Economic Development

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37 ANNEX

Annex 5: Three Simultaneous LED Projects

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1.The Textile Cluster Case and“Confecciones de Atuntaqui” Ecuador

Carlos López Cerdàn RipollUnido Consultant

2.2. Project on local Project on local competitivenesscompetitiveness in in the central region of Santa Fe province,the central region of Santa Fe province,Argentina.Argentina.

Pablo CostamagnaProgram ManagerBID-FOMIN

3.3.TerritorialTerritorial Development and EmploymentDevelopment and Employment““Chile EmprendesChile Emprendes’’ ”” ExperienceExperience Cristina Orellana QuezadaCristina Orellana Quezada

General Manager of SERCOTECGeneral Manager of SERCOTECDirective PresidentDirective President of of ““Chile EmprendeChile Emprende””

Three Simultaneous LED Projects

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The Textile Cluster Case and “Confecciones de Atuntaqui” Ecuador

Carlos López Cerdàn RipollUnido Consultant

Turin, October 2008

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UBICACIÓ N GEOG RÁFICA DEL CANTÓ NGEOGRAFIC LOCATION OF THE CLUSTER

Location of the Textile Cluster-”Confección de Atuntaqui”

www.ledknowledge.org

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Chamber of Commerce ANTONIO ANTE

Created 17th April 2002/260 membersBasic services to enterprises in the Cluster

2500 SMEs+500 GE25000 jobs- 80% regional MO.U$S 10-15 millions.(20% national +exports to

Colombia, Venezuela and Central America)Went through cluster crisis: Monetary crisis, increasing

inflation (60.7%-90%)and macroeconomic instability, the prices increased and this affected the sales and exports.

Competitiveness based in: lower price; scarce technology; old machines, and unskilled workforce.

The Textile Cluster-”Confección de Atuntaqui” and the CCAA (before 00-03)

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UNIDO-MICIP Intervention in 2004-2007

PROMOTING INNOVATION AND TEC. AS + ENCOURAGING ALLIANCES BETWEEN

ENTERPRISES AND INSTITUTIONS

1. Creating Business Networks: 6 RH +1RV2. Designing Common Sectorial Services: UCI

Tec. As +CC Cad Cam3. Technical Training and Education: Pilot

Project with the Handcraft Centre “Teodoro Wolf”

4. Formulation of inclusive strategy for the Local Economic Development: ILPES – CEPAL 2005.

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The Textile Cluster-”Confección de Atuntaqui” and the CCAA (After) 2007

CHAMBER of COMMERCE ANTONIO ANTEFormulation of a new management modelEnlargement of the services portfolio

Design Centre, Scaling and Plots by the computer CAD/CAM (Accumark)

Enterprises Networks Articulation UnitBrings Together 70% of the textile sector in AtuntaquiReorganizing the Expo Fair Atuntaqui: Ecuador's Biggest

Commercial showcase for the textile sector.“Made in Atuntaqui” : Enterprises Reorientation to the local

market with higher quality. Before bigger volumes low price. Active Participation with the Local Municipality: Antonio

Antes’ Strategic Plan for Development.

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Project on local competitiveness in the central region of Santa Fe province,

Argentina. BID-FOMIN

Pablo CostamagnaProgram Manager

BID-FOMIN

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The story…

• A Microregion in Santa Fe province, Argentina, noted for a milk processing chain and a car industry.

• Suffering a 6-year crisis.• With imbalances in local development.

Starting point: joint planning with technical assistance from outside (BID/FOMIN)

8www.ledknowledge.org

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A story of more than a city being strengthened …

• Thanks to institutions changing their way of working together with the production sector, e.g. the Instituto Nacional de Tecnología (National Institute of Industrial Technology) located in Rafaela.

• With networks of local development agents, workshops, seminars, etc.

• With committee and round-table meetings within the clusters.

• Reaching out to new companies and new local assets.

9www.ledknowledge.org

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Territorial Territorial Development and EmploymentDevelopment and Employment““Chile EmprendesChile Emprendes’’ ”” ExperienceExperience

Cristina Orellana QuezadaCristina Orellana QuezadaGeneral Manager of SERCOTECGeneral Manager of SERCOTECDirective PresidentDirective President of of ““Chile EmprendeChile Emprende””

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Chile EmprendeChile Emprende

Chiles Govern Inter-Institutional program.

Focus on identifying, capture and develop Business and Employments Opportunities.

From micro and Small enterprises and their Networks.

43 sub regional territories, 198 municipalities defined by the actors themselves from the different regions of the country. Run by the Public-Private Board (1.000)

By Territorial Economic Development plans, concerted and realized among the public –private actors, more than 20.000 economic agents.

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How it WorksHow it Works??

Promotes the Cooperation - networks - opportunity development.

A public-private inclusive management in the field and in a shared development project.

Boostering the public intervention in the form of Nets Taking advantage of the detected opportunities, not the weaknesses.

With it, they participate in a process of Territorial Development Citizens Agreement.

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The experience of an Articulated Intervention with The experience of an Articulated Intervention with ILOILO--INPINP--DTDT––ChilemprendeChilemprende

Towards a quality employment in the SMEs Towards a quality employment in the SMEs Constructing a course of action for Decent WorkConstructing a course of action for Decent Work

Voluntary Process expressed in the Territorial Development Citizens Agreement: 5 territories compromise employments targets in their Annual Planning. Starting from this first steps, institutional alliances were established to assure the possible highest quality in the jobs to be created.

Labour LegislationHealth and Security

Rights Employment

Social Protection

Social Dialogue

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Dimension I

1) What factors Influence the Territorial Competitiveness

in this Initiative?

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Our Focus (Dimension I)

Keys to the Territorial Competitiveness:

Articulation between private and public actors at a local level with

the strategic aim of promoting the development of a competitive

industry.

EjeEconómicoProductivo

EjeSocial y deServicios

Eje deIdentidad,Culturas yDeporte

EjeAmbiental

Eje deOrganización, Participación yTransparencia

Textil yArtesanal

EducaciónTécnica

TurismoTransporte

Agropecuariay Mercados

Adolescencia

Educación

SaludComunicación

Servicios

Niñez

Mujer, Equidad y Derechos

DeporteIdentidadCulturas

Plan Estratégico

de Desarrollo

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1. Inter-enterprise Collaboration • 6 horizontal business networks and a vertical one.• Collaboration among the enterprises and the

supporting private- public institutions.• Creation of a Service Centre: The CAD/CAM Centre.

Technical Assistance services for the enterprises.• Adaptation of the training packages to the productive

sectors’ needs.2. Public-Private Collaboration:

• The output resulted in a strategic plan for the development of Antonio Ante Municipality, including five development areas: a) Economy and Production b) The environment c) The organization ,Development and Transparency d) Community Services, ande) Cultural Identity and Sports

Our Focus (Dimension I)

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Our Focus (Dimension I)ENTERPRISE COMPETETIVNESS IMPACT

60% Sales Increase.Development and Production timing improved 15%.Employment Increase of 60%.Wage increase until 15%.Promotion of the Atuntqui Textile Fair: 100 000 visitors.Stable equilibrium in the Markets.Quality based, Demand Driven-Cluster Restructuring.Link between schools and the cluster

enterprises to improve the skilled workforce supply.

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Our approach (1st dimension)

18www.ledknowledge.org

Facilitate public-private collaboration

Introduce new production technology and know-how

Diversify regional production and exports

Then, after a few months:

- go more deeply into institutional development and governance;

- build an identity as a micro-region and train managers in being competitive.

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What factors Influence the Territorial Competitiveness? Towards a Quality Employment in the SMEs Towards a Quality Employment in the SMEs

Constructing a Course of Action for Decent WorkConstructing a Course of Action for Decent Work

Developing Institutionalization

Public-Private Collaboration

Cooperation to Compete

Enterprises- workers- territory-

IdentityCompromise

Capture Opportunities

Identification of key actors

The Market demand Quality

products

Market Evaluation

Territorial Competitiveness

Results with Qualitative and Quantitative IMPACT Results with Qualitative and Quantitative IMPACT

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Dimension II

2) Which are the innovative aspects of this initiative?

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Our Focus (Dimension II)

Innovative Aspects:

The productive Cluster development initiative became a broader initiative of

Local Economic Development.

The Municipality was awarded with Ecuador's Municipality Associations’

Sectorial Best Practices Contest.

Key Elements: •The local public sector( municipality) with strategic sustainable territorial development vision.•Private-Public negotiating process.•Links between the development of the textile sector and the rest of theproductive activities in the territory.

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Our approach (2nd dimension)

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A) The concept of “territory”, with:

- the construction of a micro-region with an institutional network as its foundatio

- relationships among the chain, the cluster and the territory

- the identification of new assets (energy, water, etc.)

B) Its system and its approach.

C) The way it gathers information.

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Recipients (companies and institutions)

A) Moving from sector production to chain and territory production.

B) Work networks.

C) New factors in competitiveness, such as energy and the environment.

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Voluntary Compromise of the territories to participate in the Decent Work Agenda.

An Implementation and Territorial Follow Up process is generated, a number of indicators related to each Decent Work dimension ( employment , rights, social protection, social dialogue )and relevant to SMEs reality, has been constructed and assumed.

It is a pilot Project to Support, Supervise, Audit and Systemize a number of processes and improvements in the enterprise and its environment, achieving quality employment in the SMEs.

Towards a quality employment in the SMEs Towards a quality employment in the SMEs Constructing a course of action for Decent WorkConstructing a course of action for Decent Work

Which are the innovative features?

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Dimension III

3) What factors should exist in the environment for a successful initiative?

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Our Focus (Dimension III)

Success Factors

Select productive sectors with a market perspective (Business Opportunities)

Organized Business Sector with leadership skills.

Public-Private willingness agreement around a common development vision.

Creation of a technical Assistance Platform with local professionals and the aim of articulating projects between enterprises and the institutions.

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Our Focus (Dimension III)

Factors out of the scope of the project:

Institutional Capacities.Infrastructures and business

atmosphere.Changes in the social and political

stability.

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Our approach (3rd dimension)

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Strategic vision and institutional strengthening

Leadership

Technical skills to work on competitiveness

Confidence and dialogue.

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What factors should exist in the environment for a successful initiative?

Actors Trust and Compromise, Public-Private Agreement with the objectives defined in a inclusive way.

The territorial Institutionalization, The Territories’ Public-Private Board cooperating to compete.

Integrate the cultural identity, social and political institutional aspects.

Leadership

Initiatives that generates growth, development and wealth for the enterprises, its workforce and the environment.

Clear Rules for the enterprises. Rights and Obligations.

Towards a quality employment in the SMEs Towards a quality employment in the SMEs Constructing a course of action for Decent WorkConstructing a course of action for Decent Work

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Which are the innovative features?

Actors Compromise, Public-Private Agreement with the objectives defined in a inclusive way.

Towards a quality employment in the SMEs Towards a quality employment in the SMEs Constructing a course of action for Decent WorkConstructing a course of action for Decent Work

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Dimension IV

4)What relationship exist between territorial competitiveness and

social cohesion?

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Our Focus (Dimension IV)The Social Cohesion among Enterprises

and Institutions in the Atuntaqui case:

1. Allowed a smoother collaboration among actors:

• Coordination of the production.• Resource Complementation.• Risks Reduction.

2. Helped to foster the Innovation and Education processes.

3. Promoted a more equal distribution of the benefits.

4. Increased the initiatives’ sustainability.

EjeEconómicoProductivo

Textil yArtesanal

EducaciónTécnica

TurismoTransporte

AgropecuariaY Mercados

Líneas estratégicas•Promover asociatividad•Promover servicios de apoyo•Adecuación curricular a realidad productiva •Promoción territorial

Proyectos•Apoyo al asociativismo y a la formación de redes•Centro de Servicios al sector•Programas de Capacitación en creatividad, innovación y diseño•Creación de la Agencia de Desarrollo Económico-Productivo•Programa de Capacitación en espíritu emprendedor y habilidades gerenciales•Convenio para programas de apoyo crediticio •Fábrica Imbabura museo textil•Proyecto “Marca Ciudad”

Proyectos•Programas de capacitación a docentes en tecnologías textiles y en metodologías de enseñanza•Programa de pasantías, intercambios y facilitación de ambientes productivos•Investigación sobre producción textil y necesidades de los sectores productivos•Programa de actualización del pénsum de las entidades educativas.

Líneas estratégicasPromover adecuación curricular

a necesidades productivasArticular educación con sector

productivoComprometer a empresarios en

los procesos de educación productiva

Líneas estratégicas•Impulsar la calidad de los servicios turísticos•Articular los productos de Antonio Ante en la oferta turística regional, con una adecuada promoción territorial•Recuperar manifestaciones culturales del cantón con fines turísticos

ProyectosCapítulo Cantonal de la Cámara de

Turismo en AACreación del ComitéCantonal de

TurismoImplementación de Oficina de

Información Turística ITURProgramas de Capacitación en temas

de calidad a prestadores de servicios turísticos

Convenio para programas de apoyo crediticio

Campañas permanentes de promoción con identidad cantonal

Diseño y promoción de rutas turísticasSeñalización turística cantonalFábrica Imbabura -Museo Textil

Líneas estratégicasPromover el manejo sustentable del agroDesarrollar instrumentos para el manejo

adecuado del agua de riegoPromover el mejoramiento de la calidad de

productos y el fortalecimiento de la agricultura orgánica

Fortalecer mecanismos de apoyo a la producción y comercialización

Impulsar la cultura de la cooperación y la asociación.

ProyectosEjecución del Proyecto Pesillo-ImbaburaEstudio de vertientes, preservación de

acuíferas y declaración de áreas protegidas.

Descontaminación de aguas servidasRevestimientos de acequias existentesProyecto regional de apoyo integral para la

planificación y diversificación de actividades agropecuarias

Proyecto para estudio de suelosProgramas de capacitación del recurso

humano agropecuarioProyectos de Investigación y DesarrolloPrograma de concientización ambiental y

buena utilización de fertilizantes y agroquímicos

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Our approach (4th dimension)

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A systemic vision and the need to boost:

- Action on the weakest aspects of the entrepreneurship network and the familiar economy

- Action on employment, women, young entrepreneurs and production chains in small municipalities.

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What relationship exist between territorial competitiveness and social cohesion?

Local Enterprises’ Competitiveness and their Jobs’ sustainability are linked to the Competitive Environment where they found themselves.

Establishment of a Cooperative Relationship among Enterprises Nets, their Workers , the Local Government , specialized Public Institutions, training, cultural and research Bodies.

Public- Private agreements are , in this sense, essential to: Generate quality employment.Create Dialogue and a Compromise Culture that, as far as it generates sustainable growth, helps to consolidate long-term Private- Public Policies.

This social cohesion allows the generation of agreements and compromises that influences directly in the quality of the jobs.

Towards a quality employment in the SMEs Towards a quality employment in the SMEs Constructing a course of action for Decent WorkConstructing a course of action for Decent Work

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This initiative goes in the same direction that the one defined by the “Equity and Labour Council” regarding a new conception of the public policies:“ The new basic principle for social policies will not lie in the unfortunately situation of those out of the labour market so they stay in the edge. The main aim is to incentive and coach the people to train themselves, look for a job and work.” (*)

(*) “Towards a Fairer Chile : Work, Salary, Competitiveness and Social Equity “Presidents’ Labour and Equity Council, Santiago de Chile, May 2008.

What relationship exist between territorial competitiveness and social cohesion?

Towards a quality employment in the SMEs Towards a quality employment in the SMEs Constructing a course of action for Decent WorkConstructing a course of action for Decent Work

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Field Compromise Necessary Activities to fulfill the Compromise

Assessment Means.Indicators

Labour Hire , at least in a short term basis, one of the occasional workers.

Meeting with the worker to define the contracts’ conditions. Copy of the Signed Contract.

Rights

Elaborate a meetings agenda with the workers to discuss their relations, and the business performance among others.

Make a meetings agenda proposal.

Agenda Elaborated jointly with the workersMeet with the workers to present the

proposal, discuss it and approve it.

Social Protection Define a Rest Room in the workplace for the breaks.

Buy the basics components for the workplace Rest Room. Photos of the Rest Room.

Social DialogueOrganize a meeting between the woman entrepreneur and the workers with a view on the upcoming Christmas.

Meeting with the families to propose different activities for December.

Photos from the Activity.

Realize the activity with the woman entrepreneur and the families.