Commonwealth Local Government Forum

Local economic development

Local economic development is a central part of developmental local government. It is a process which brings together different partners in the local area to work together to harness resources for sustainable economic growth and poverty reduction. Local economic development is increasingly being seen as a key function of local government and a means of ensuring that local and regional authorities can address the priority needs of local citizens in a sustainable way. There is no single model for LED; approaches reflect local needs and circumstances. Themes include local economic development guides, tourism, support to small, medium and micro enterprises, microfinance and credit and public-private partnership.

Sub-topics:

  • Local economic development guides
  • Support to small, medium and micro enterprises
  • Microfinance and credit
  • Tourism
  • Extractive Industries
  • Workforce skills
  • Trade

Featured

Economic Development Pathways for Local Area Development: A Guide to Understanding Local Economic Development and its Implementational Challenges in Ghana

Since 1988, Ghana has embarked on a more vigorous agenda of decentralisation where power and resources have been made available to the local governments to realise their own development agenda. This policy decision has engendered more praise and admiration as a boost in the process of consolidating the county's democratic gains. Rather than waiting on the central government for very minimal level of development support, communities in Ghana now had governments (local political administrations) closer to them usually cited in the district capitals. Complains and agitations for enhanced service delivery no longer had to wait for months and in some cases years to be heard as one could now drive to a nearby government administrative body to lodge such complains. Over three decades of implementing Ghana's decentralisation agenda, local level development has not been exactly what the local residents expected. In recent times, there is even more calls for investment and development in communities that what used to exist some 30 years back. There are increased calls for job opportunities in the local areas in the various districts or municipalities; the lack of which compels the teeming youth to move to cities in search of better livelihoods. Whereas successive governments since Ghana's independence have tried to spread developments across the country with the latest attempts at empowering MMDAs to take charge, the gap in local level investments continuous to widen. The MMDAs themselves have failed to create the platforms for local businesses to spring up and thrive.

Author: Kwadwo Ohene Sarfoh, David Anaafo, Edward Teye Sarpong, Dennis Asare Asante Publisher: Journal of Good Governance, Africa Publication year: March 2020


Critical Considerations for Local Economic Development Strategy Design in South African Municipalities

Contemporary socio-economic discourse reveals that development agencies and actors increasingly emphasise place-based planning and peoplecentred approaches to deal with local economic development (LED) challenges. In addition, the role that local government plays in facilitating sustainable and resilient local communities is almost universally recognised. On this basis, a number of strategic approaches to LED were designed by local government to realise developmental objectives. LED strategies form a critical component of the broader national and regional strategic development planning effort in a country like South Africa and incorporate various dimensions such as social and economic realities, and environmental concerns. However, a multitude of strategic considerations should be encapsulated in a more systemic and integrated approach to LED strategy design. The purpose of this article is to uncover critical considerations in the design of place-based LED strategies in South African municipalities by means of an extensive literature review.

Author: C Auriacombe, G van der Waldt Publisher: academia.edu Publication year: March 2020


Making Local Economic Development (LED) work in Ghana : An extract from the GGA-WA Publication titled “Economic Development Pathways for Local Area Development

Local Economic Development (LED) aims to boost local economies, promote job creation and income generation and improve governance and municipal performance. Making LED work in Ghana is based on a different approach (bottom up approach) to traditional development strategies. LED must focus on improving MMDAs territorial competitiveness and economic performance. Again, MMDA's must work to develop strategies and projects which will enable them to share the benefits of economic growth. Consequently, MMDAs should work to create the enabling environment for the private sector /MSME to operate, create job which will lead to poverty reduction through increase employment. As a result, MMDAs can increase IGF. All stakeholders must work together to develop an understanding of their local economy and most importantly use available local resources to advance local economic development. These stakeholders at the local level including local governments, businesses, community organisations and/or NGOs need to work together to achieve sustainable outcomes in LED. Furthermore, all regionals and national level stakeholders must all play their respective roles (especially in facilitation among others) to make LED work in Ghana.

Author: Kwadwo Ohene Sarfoh Publisher: Good Governance Africa – West Africa Center Publication year: August 2020


Public policy for addressing the low-skills low-wage trap: insights from business case studies in the Birmingham city-region, UK

The idea that some local areas are characterized by a low-skills equilibrium trap is prominent in academic and policy debates in the Global North. Factors shaping this position and associated implications for local economic development are only partially understood. This paper provides new evidence examining employers’ decision-making around investment and workforce management in the hospitality and retail sectors in the Birmingham city-region of the UK, and their experience of the low-skills low-wage trap. The findings highlight intersecting sectoral and place-based factors in the emergence of, and barriers to escape from, this position. Responses require policy actions at firm, local and national levels.

Author: Anne E. Green,Paul Sissons, Kevin Broughton, Amir Qamar Publisher: Regional Studies Journal Publication year: August 2020


Investigating the Impact of the Integrated Approach on Local Economic Development in South Africa in the Context of Policy Planning and Implementation: The Case of the West Rand District Municipality and its Development Agency

The West Rand Development Agency was investigated by assessing how fragmented policies impact on integrated approach to local economic development activities under the auspices of the WRDA, whether there is feasibility for an integrated approach to implementation of local economic development activities under the WRDA coordination, and establish as well as recommend intervention strategies to resolve challenges. The research methodology was based on a qualitative method approach, which includes literature review and interviewing different purposefully sampled role players in the discharging of mandate by the WRDA, namely municipal local economic development managers, West Rand Development Agency Board and Business sector representatives within the West Rand District Interpretation of results revealed lessons learnt, possibilities for an integrated approach to local economic development activities and intervention strategies recommended for the implementation of an integrated approach to the implementation of local economic development activities under the auspices of the West Rand Development Agency. West Rand District Municipality and its Development Agency could make a positive impact through an integrated approach in implementing LED in the district.

Author: Boyce Makhosonke Maneli, Dr. Austin Musundire Publisher: International Journal of Science and Research Publication year: 2020


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