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Typical Shortcuts proposed for LED
• Attract:– Outside investment– Outside transplants– Outside talent– Outside residents
… if only LED was so easy…
Summary of Current Thinking on LED
LED in the Context of Cities from the easiest to the most difficult
A Great City generates much more wealth than it consumes for mere existence. A Great City generates enough wealth to support growth in the city as well in its surrounding region.
LED in a Great City
LED in a Great City• What is the role of Urban Planning and Transportation in creating a
great place to live and to develop economically?
ToD can be used to create such a great place in a city
The cycle of city development
People
LED in the Region of a Great City
• Create a great place to live and to develop economically
• The City will do the rest– The Five Economic Forces Exerted by Cities on Their
Own Regions• City markets • City jobs• City developed technology • Transplanted city work• City generated capital
Perfect situation for ToD
ToD in the Center of Regional Towns of a Great City
A great way to leverage the five forces and accelerate LED
StockholmThe Gr Stockholm Transit Oriented Metropolis The Gr Copenhagen Transit
Oriented Metropolis
The 1961 National Capital Plan for Gr Washington BC
Is Beer-Sheva a Great City?
What about rail stations in the center of the towns?
LED in a Town Outside a Great City Region
• Need to become a Great City (or wait for a Great City to develop nearby)
ToD can support each of these steps
ToD can support each of these steps
What about rail stations in the center
of town?
LED in a City that is not Great
• Need to become a Great City (or wait for a Great City to develop nearby)
ToD can support each of these steps
ToD can support each of these steps
What about stations in Beer-Sheva?
What about connecting Beer-Sheva to Jerusalem and Haifa?
The cycle of city development
People
The “handle”
The process of Urban Regeneration or
How to increase Density, Variety and Access
ToD can be used to increase Density, Variety and Access
Is the ToD based Ash-Besh better for LED than “park and ride”?
• Yes• But in order to be effective, ToD stations MUST
be located in the existing town centers• This can be achieved by:
– Changing the planned route of the rail lineor
– Adding a platform in the train station for a bus extension to the true ToD station in the existing town center
Bus Extension to the ToD Station in the Existing Town Center
station
Ash-Besh ToD as a LED Agent of Change
• The issues raised:– Job Creation
• Public or NGO– Projects
» Does not generate wealth» Not sustainable
• Private– Business creation
» develop the city / town for it’s residents» make business creation and operation easier for its own residents
– Stop Emigration• Make the city a great place to live – place making• develop the city / town for it’s residents
– Brain Drain of BGU and Sapir Graduates• Make them residents before they graduate • develop the city / town for it’s residents
– ToD vs. Park & Ride
Can LED be achieved by attracting transplants?
• Transplants within a city region vs. transplants from afar
• What do transplants need? What makes transplants possible?
• What is their influence on the local economy?
• How many are available?• What are the costs to attract one?
Can LED be achieved in peripheral cities and towns by
their residents? • Yes! If it can be achieved (and it can not
always be achieved) then it can be achieved by the local residents– the problem is not the residents!– What are the conditions that enable LED?
What is LED?
• The purpose of local economic development (LED) is to build up the economic capacity of a local area to improve its economic future and the quality of life for all. It is a process by which public, business and non-governmental sector partners work collectively to create better conditions for economic growth and employment generation.
A Brief History of LED
• Since the 1960s, LED has passed through three broad stages or 'waves' of development. – In each of these waves LED practitioners have
developed a better understanding of successful and unsuccessful programs.
– Today LED is in its 'third wave'.– Although LED has moved through each of these
waves, elements of each wave are still practiced today.
• The following table summarizes the three waves of LED:
Wave
Focus Tools
First:
1960s to early 1980s
During the first wave the focus was on the attraction of:
•mobile manufacturing investment, attracting outside investment, especially the attraction of foreign direct investment•hard infrastructure investments
To achieve this cities used:
•massive grants•subsidized loans usually aimed at inward investing manufacturers•tax breaks•subsidized hard infrastructure investment•expensive "low road" industrial recruitment techniques
The three waves of LED - #1:
Wave
Focus Tools
Second:
1980s to mid 1990s
During the second wave the focus moved towards:
•the retention and growing of existing local businesses•still with an emphasis on inward investment attraction, but usually this was becoming more targeted to specific sectors or from certain geographic areas
To achieve this cities provided:
•direct payments to individual businesses•business incubators/workspace•advice and training for small- and medium-sized firms•technical support•business start-up support•some hard and soft infrastructure investment
The three waves of LED - #2:
Wave
Focus Tools
Third :
Late 1990s onwards
The focus then shifted from individual direct firm financial transfers to making the entire business environment more conducive to business.
During this third (and current) wave of LED, more focus is placed on:•soft infrastructure investments
•public/private partnerships
•networking and the leveraging of private sector investments for the public good•highly targeted inward investment attraction to add to the competitive advantages of local areas
To achieve this cities are:
•developing a holistic strategy aimed at growing local firms•providing a competitive local investment climate
•supporting and encouraging networking and collaboration
•encouraging the development of business clusters•encouraging workforce development and education•closely targeting inward investment to support cluster growth•supporting quality of life improvements
The three waves of LED - #3:
LED focus on Cities and Towns• At the threshold of the 21st century, cities
and towns headline the World Bank's development campaign.
• Within a generation, the majority of the developing world's population will live in urban areas, while the number of urban residents will double, increasing by over 2 billion inhabitants.
• Cities and towns are not only growing in size and number, they are also gaining new influence.
• The urban transition offers significant opportunities to improve the quality of life for all individuals, but whether this potential is realized depends critically on how cities are managed and on the national and local policies affecting their development.
We must have strong cities to have a strong America.
• CEOs for Cities is a national network of urban leaders dedicated to creating next generation cities that hold the answers to many of the challenges our nation faces.
• If you care about keeping America globally competitive, fostering innovation, providing citizens access to opportunity and education, combating climate change, improving healthcare outcomes and learning how diverse people can co-exist peacefully, then you must be concerned about cities because that is where the solutions to these challenges will be met.
• You can’t have a strong America without strong cities.
Which Programs Do Not Work (But We Still Keep Using Them!)
• Unfortunately there are countless examples of failed LED strategies and projects. These include:– Expensive untargeted foreign direct investment marketing
campaigns– Supply-led training programs– Excessive reliance on grant-led investments– Over-generous financial inducements for inward investors (not
only can this be an inefficient use of taxpayers money, it can breed considerable resentment amongst local businesses that may not be entitled to the same benefit).
– Business retention subsidies (where firms are paid to stay in the area despite the fact that financial viability of the plant is at risk)
– Reliance on "low-road" techniques, e.g., cheap labor and subsidized capital
– Government-conceived, -controlled, and -directed strategies
Local Economic Growth• Cities are engines of economic growth. As a nation's primary source of
job creation and wealth generation, cites produce goods and provide services which strengthen economic opportunities for the entire country. Local Economic Development (LED) is a process of planning and implementation that seeks to increase the economic potential of a city, town, or region. LED aims to improve the economic future and the quality of life for all local residents and businesses. Although the process can be time-intensive, it is important to bring the public, business and civil society sector together to work collectively in creating better conditions for growth and employment generation. This ensures that all available local resources are accessed and that there is sufficient buy-in across all sectors to increase the chances of sustainability.
• Much of a city's potential competitive advantage lies in its various forms of capital (human, natural resources, land, location, and infrastructure).
• Decentralization has forced local governments to take more responsibility for designing their own economic development strategies, usually in partnership with the private sector.
http://www.makingcitieswork.org/urbanThemes/Localecongrowth
Entrepreneurship: A Catalyst for Urban Regeneration
• Entrepreneurship and urban regeneration policy have traditionally been treated as separate fields. This volume is one of the first to focus explicitly on the links between the two, examining how policy can help regenerate inner cities and other areas of urban distress by stimulating entrepreneurship. It sets out recent policy developments in North American and European cities in: - Financing entrepreneurship. - Providing advice, training and mentoring to entrepreneurs. - Using special zones and area-based policies to grow new and small firms. - Supporting social enterprises.
• This book presents a 'toolbox' of instruments for entrepreneurship development in what often appear to be the most hostile environments for economic development in our cities, showing how entrepreneurship can indeed prosper given the right stimulus.
The Congress for the New Urbanism views disinvestment in central cities, the spread of placeless sprawl, increasing
separation by race and income, environmental deterioration, loss of
agricultural lands and wilderness, and the erosion of society's built heritage as one
interrelated community-building challenge.
Local Economic Development,Human Development,
and Decent Work
Best practices and trends• Based on the review of hundreds of LED programs from 24 organizations
Worldwide• Current Trends:
– The most significant item that characterizes them is the participatory approach.
– … participation is now considered the base, the condition sine-qua-non for fostering local economic development strategies and actions.
– A new trend is, however, coming along: participation is not seen as an instrument for building consensus, but as a way of good governance. The accent on good governance, in fact, is more and more evident in the most recent initiatives, such as the Ilo, Undp and Unops Ledas, the World Bank, South Africa and it, in fact, also responds to the human development aims of United Nations.
– Objectives, strategies and tools, of course, vary from case to case.– Also in this case g traditional� objectives could be recognized in the
improvement of employment, when job creation, promotion of micro and small local enterprise, attraction of external investment, territorial revitalization are mentioned. However a new typology of advanced objectives is recognizable: the improvement of the quality of life of the citizens in a more integrated approach, which includes human development, decent work, inclusion of the socially excluded people and the protection of the environment.
Summary of Current Thinking on LED
• Participatory approach including all stakeholders and sectors, led by local government
• Focus on quality of life– Employment– Environment– Livibility– Social inclusion
• Growth of local businesses– Promotion and support of innovation and
entrepreneurship (both business and social)– Business friendly policies
• Focus on cities and urban regeneration
Eight Principles of Success
The critical role of the MIU in LED in Israel
• Current thinking on LED– Participatory approach including
all stakeholders and sectors, led by local government
– Focus on quality of life• Employment• Environment• Livibility• Social inclusion
– Growth of local businesses• Promotion and support of
innovation and entrepreneurship (both business and social)
• Business friendly policies
– Focus on cities and urban regeneration
• The MIU approach– Charrette, Quality in Density Toolbox, Mayors
Institute– Creating sustainable and humane cities and
communities in Israel • In order to improve the quality of living in Israel,
while contributing to the global sustainability effort, the MIU promotes quality urban living based on compact, quality and sustainable urban environments.
• Diversity and walk-ability
– Focus on making the local environment great for the locals
• compact, quality and sustainable urban environments provide opportunities and breed innovation
– We view the city as the key mechanism that provides people the opportunities to fulfill their inherent potential
City Development = Local Economic Development
“If the last century was the century of urbanization, the twenty-first will be the century of cities.
It is in the cities that decisive battles for the quality of life will be fought, and their outcomes will
have a defining effect on the planet’s environment and on human relations.”
• Jaime Lerner, Former Governor of Paraná, Brazil, and former Mayor of Curitiba
