QuickGuide LED Pre-Field Testing Draft

8/10/2019 QuickGuide LED Pre-Field Testing Draft

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UN-HABITAT

PRELIMINARY FIELD TESTING DRAFT

VOLUME IV: SUMMARY

THE QUICK GUIDE

STRATEGIC PLANNING

FORLOCAL ECONOMICDEVELOPMENT

Training

Series

A Resource GuideFor local governments andcivil society organizations

by:

William Trousdale,

EcoPlan International, Inc.

November 2003


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The Quick Guide-- Strategic Planning for Local Economic DevelopmentUN-HABITAT AND ECOPLAN INTERNATIONAL, INC.

Field Testing Draft November 2003

Table Of Contents

INTRODUCTION 1

OVERVIEW 1

MODULE 1: WHERE ARE WE NOW? 5

STEP 1: GETTING STARTED 5

STEP 2: STAKEHOLDERS AND PARTICIPATION 6

STEP 3: SITUATION ANALYSIS 7

MODULE TWO: WHERE DO WE WANT TO GO? 8

STEP 4: VISIONING 8

STEP 5: SETTING OBJECTIVES 9

MODULE THREE: HOW DO WE GET THERE? 10

STEP 6: IDENTIFYING & EVALUATING ALTERNATIVES 10

STEP 7: ACTION PLANNING AND STRATEGY DOCUMENTATION 14

STEP 8: PLAN IMPLEMENTATION 15

MODULE FOUR: HAVE WE ARRIVED? 16

STEP 9: MONITOR AND EVALUATE 16

STEP 10: ADJUST AND MODIFY 17

WEB LINKS 17


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IntroductionThis document,Vol. IV:THEQUICK GUIDE,is the final document in the Strategic Planning for LocalEconomic Development Training Series. It is a companion piece toVol. I:THEMANUAL,andVol. II: THETOOLKIT, andVolumeIII:ACTIONS,which are described below.

Vol. I - THEMANUALprovides concepts and process for approaching LED in a step-by-step framework

Vol. II - THETOOLKIT, provides tools to facilitate and support each step in the framework;

Vol. III ACTIONS, supplies practical action ideas and case studies; and,

Vol. IV - THEQUICK GUIDE, (this document) provides a brief overview of strategic planning for localeconomic development.

To find more detail and references on anything in THE QUICK GUIDE, go to THE MANUAL. THE QUICK GUIDEmay be more appropriate for busy executives or those that are not intimately involved local economicdevelopment. This Training Series is part of a larger UN-HABITAT Training Manuals (seeTraining Resource Link 1: UN-HABITAT Training Manuals at http://www.unhabitat.org)..

OverviewWhat is Local Economic Development?

Local economic development (LED) is a participatory process where local people from all sectorswork together to stimulate local commercial activity resulting in a resilient and sustainableeconomy. It is a tool to help create decent jobs and improve the quality of life for everyone,including the poor and marginalized. Local economic development encourages the public, private andcivil society sectors to establish partnerships and collaboratively find local solutions to common economicchallenges. The LED process seeks to empower local participants in order to effectively utilize businessenterprise, labor, capital and other local resources to achieve local priorities (e.g., promote quality jobs,reduce poverty, stabilize the local economy, generate municipal taxes). LED practitioners have manyalternative projects, programs and policies available to them. However, for LED to be successful there

needs to be knowledge of the range of these alternatives and a process to create the best mix of actions.Creating a LED strategy is a holistic, process oriented, and non-prescriptive endeavor that incorporates:

Local values (poverty reduction, increased self-reliance, satisfying basic human needs, mutualcommitment, integrated social and environmental objectives),

Economic drivers (growth in jobs, income, business activity), and Development (the role of structural change, quality of development).

This suggests that LED is not about quick fixes or generating wish lists. It requires a practicalunderstanding what the local area is good at and what it has to offer; where its weakness and gaps are;what outside threats and opportunities exist; and, what the local area wants and needs. Undertaking LEDrequires an understanding of a local areas competition and competitive advantage, a well as opportunities

to cooperate and avoid some of the unnecessary and damaging side-effects of competition. Success inLED depends on encouraging a business environment where markets can operate efficiently, butappropriately, within the local context. Demonstration projects and other visible results can help maintainmomentum in the short-term, and simply initiating a single project focusing on one critical issue may pavethe way for long-term success in LED. Ultimately however, LED is about sustainable development in thelong-term, for it takes time to change local conditions, build capacity, organize participatory processes, andempower stakeholders, especially the marginalized and poor. Here is where strategic planning for localeconomic development can help.


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What is Strategic Planning?

Strategic planning is a systematic decision-making process that focuses attention on importantissues, and on how to resolve them.Strategic planning provides a general framework for action: a wayto determine priorities, make wise choices and allocate scarceresources (e.g., time, money, skills) toachieve agreed to objectives. This manual organizes strategic planning for local economic development

into a series of four basic questions:1. WHERE ARE WE NOW?

2. WHERE DO WE WANT TO GO?

3. HOW ARE WE GOING TO GET THERE?

4. HOW DO WE KNOW WHEN WE HAVE ARRIVED?

Answering each of these questions involves a number of steps that takes you through the strategicplanning process. This process is illustrated below as theTen Steps to Planning Excellence.

Ten Steps to Planning Excellence

Getting

Started

Stakeholders

and

ParticipationSituation

Assessment

Visioning

Objectives

& Measures

Alternatives &

PrioritiesAction

Planning

Organizations &

Implementation

Monitor &

Evaluate

Adjust& Modify

1

23

4

5

6

78

9

10

Source: EcoPlan International, Inc.


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Where is the Local in LED?

Defining the local area for local economic development planning is a pragmatic exercise that should bedone at the beginning of the process, and should be based on common linkages and constraints. The localarea can be defined by a combination of factors that typically include:

economic (production patterns, processing chains, business services - i.e. banks), market (market areas, commercial linkages, urban-rural links), political (voting, administrative and decision-making jurisdictions), socio-cultural (shared value/ belief systems, stakeholder relationships) communication and built environment (neighbourhoods, communication networks, building

patterns, transportation), and biogeographic (topography, watersheds).

Common sense based on these criteria is a good guide to define local. For many LED processes,political jurisdictions at the local government level are the most appropriate area to conduct planning(province, district, city, town or a neighbourhood), because the local government is often a core actor in

the process and they carry with them the accountability and legitimacy of a democratically elected body.

Business Enabling Environments

Good practice in local economic development suggests that use of public resources and governmentintervention (e.g., public spending, access to services) should focus on improving the basic businessenvironment and reach all levels of society (e.g., rather than supporting individual companies). This meansthat capable institutions at the local level are essential for effective LED. Beyond simple lack of capacity,expense (time and money) and over-regulation (complex regulations) are the devastating effects ofcronyism, nepotism and corruption.

Recent LED research suggests that strong and appropriate institutions are necessary, and governmentsshould pursue four concepts in LED.

First, support for institutions and strategies should combine governance with culture, in order togain respect, legitimacy and acceptance of the local citizens.

Second, there is a need for clear decision rules and procedures in government, such as effectivebusiness codes and land use zones that promote long-term plans and a clear and stable economic'playing field'.

Third, the political environment must be safe. Poor economic policies and weak governmentsystems can seriously impact efforts for local economic development by raising risks and increasingproduction costs. For many investors, consistency, predictability and clarity of government policiesand regulations are as important as a business environment with few restraints.

Fourth, enabling environments should have a high ease of business entry and efficient regulation-enforcement. Not surprisingly, researchers have found that countries with heavy regulation andweak enforcement have higher rates of corruption, a larger informal economy, are less democraticand are more likely to be poor.


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MODULE1: WHERE ARE WE NOW?

Step 1: Getting Started

Is a strategic approach going to be taken?

The very first task in planning for the future is to decide whether or not a strategic approach to economicdevelopment planning is going to be taken. A strategic planning approach moves beyond ad-hoc decision-making and allows a local area to both create and respond to economic challenges and opportunities. Itdoes, however, require a sustained level of commitment, the dedication of resources, and the opening upof the planning process to involve stakeholders in the local area. It also requires organizational andinstitutional capacity. The five tasks below outline how to prepare for the process.

Task 1:Get organized and get commitment.--Without commitment from other stakeholders, well-coordinated organization and

respected leadership, a strategic planning process can stall before it starts

Task 2:Form a core planning team.

-- Establish a core group before the actual planning work begins. Without commitmentfrom other stakeholders, well-coordinated organization and respected leadership, astrategic planning process can stall before it starts

Task 3:Determine organizational capacity and if outside help is needed.-- The lead organization needs to determine its own capacity and bring in outside help

if needed.

Task 4:Outline a planning process for your local area.

-- It is important to be clear about the planning scope, planning process, objectivesand expected results before getting started.

Task 5:Defining the LED planning question.-- Understand the triggering event and ask questions that address core problemsrather than symptomatic ones, giving economic development planning more leverage.

The importance of the process leader or facilitator

It is important to recognize that the process of planning for LED requires agreement and cooperationamong a wide range of stakeholders who might profoundly disagree on a number of key issues. If astructured group decision process is attempted under circumstances of hostility and disrespect the resultscan be alienation and confusion leading to a sub-optimal process at best, failure at worst.

The role of the facilitator is critical in these processes. Their purpose is to create an environment for

constructive and cooperative interaction and to maximize productivity of group work and participation.Because much of the success or failure of a LED process is dependent on the skills of the individual(s)managing or facilitating the process, sufficient resources should be put towards training someone on staffor finding the most skilled and appropriate person to undertake this responsibility.


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Step 2: Stakeholders and Participation

What is a Participatory Approach?

A participatory approach involves the inclusion of different stakeholders so that their views, concerns and

issues can be included in the planning process. It is also important because it is here that networks,partnerships and information sharing occur that make better, more practical strategies possible. Reviewingwho should be involved in the planning process is an essential first task in creating a successful strategy.Consider including stakeholders from the public sector (local, regional, national governments, educationinstitutions) business sector (corporations, small business, informal sector, banks, credit unions), labor(trade unions, labor unions), community and non-governmental organizations (community leaders,neighbourhood groups, religious organizations, womens groups, poor and disadvantaged groups,environmental groups) and the general public (informal leaders).

Stakeholders are defined by their stake in the issues (e.g., the client groups such as the urban poor, policyproponents such as environmental NGOs), their formal position (e.g., government authority); their controlover relevant resources (e.g., money, expertise) and their power to promote, hinder or blockimplementation (e.g., activist groups, lobby groups, implementing agencies).

The following are ten factors for successful participation.

Table 2: Ten Factors for Successful Participation

1 Good timing and clear need

2 Strong stakeholder groups

3 Broad based involvement

4 Credibility and openness of process

5 Commitment and/or involvement of high

level, visible leaders

6 Support or acquiescence of establishedauthorities or powers

7 Overcoming mistrust and scepticism

8 Strong leadership of the process

9 Interim success

10 A shift to a broader concern

How to Incorporate Participation in the Planning Process

There are four key tasks to incorporate participation in the planning process.

Task 1: Identify stakeholders and develop a plan for participation. This does not have to

be elaborate, but it should answer key questions and consider the breadth vs. depth ofparticipatory planning.

Task 2:Create a stakeholder structure and process. Some depth is probably

warranted, and this can be done through the creation of a LED Stakeholder Group. TheStakeholder Group can also provide legitimacy, profile, hard thinking and make sure a

full range of issues is considered. Often Working Groups are also formed to support thework of the Stakeholder Group.

Task 3.Establish stakeholder expectations, procedures and terms of reference.

Task 4.Determine when and how all stakeholders and the general public will be

involved.


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Step 3: Situation Analysis

What is a Situation Analysis for Economic Development?

The situation analysis explores business relationships and organizational networks within the local area and

between the local area, the region and the rest of the world. It looks at economic events and economictrends. It examines the economic base and how the local economy functions. This requires anunderstanding of local businesses, what they produce, and where they purchase their inputs. It looks at theeconomic past and present of a local area and provides base data used to identify and prioritize importantissues to be considered in development plans for the future.

How to Conduct a Situation Analysis

The economic situation analysis involves three key tasks:

Task 1: Collect and review research and analysis already completed

Task 2:Create a local area assessment and economic profile

Task 3: Conduct assessments and analysis:

-Business and community attitude survey-Competition and collaboration analysis;-Economic leakage, markets and supply chain analysis

-Gender analysis-SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)

This information can be collected at different degrees of detail and through several methods. Ideally, allthree tasks will be completed in full, but often it is necessary to conduct only a few of the most criticalanalysis to get started. Variables to be considered when conducting this inventory should reflect thecomponents of a functioning economy, namely human and social capital, financial capital, manufacturingand physical capital and natural capital. Within each of these categories there is important base-data forunderstanding a functioning local economy. One way to organize this information is in terms of capital.Capital is a useful concept because it can be acquired, exchanged, invested and converted into other forms.This dynamic way of thinking about LED keeps the focus on potential change, which is what strategydevelopment is all about.

Table 3: Data for understand a functioning local economy

Human and Social Capital Natural Capital

Resources: Primary resource, Resource process

Living systems: Quality of life, Aesthetics

Ecosystem Services: Economic support

Manufactured and Physical Capital

Organizational and Leadership Capacity: Partnerships,Networks (from Step 1)

Knowledge and Information: Business, Market andEconomic data,Quality of Life, Demographics, Householdand Family

Capacity, Competency and Innovation:Institutional,Experience; Labor force (statistics and data, gender)

Financial Capital

Financial: Services, Access (credit)

Technology, Machines, Tools, Factories: Plant, factoryand business technology assessment

Built Environment and Infrastructure: Geographic,Buildings and infrastructure


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MODULETWO: WHERE DO WE WANT TO GO?

Step 4: Visioning

What is in a Vision?

The economic vision begins to answer the question Where do we want to go? It is a snapshot of thedesired future. It makes clear the core values and principles that are central to what the local area wants tobecome. The vision is informed by the current situation and looks to the future to alter the current intothe desired. Objectives and actions are then based on this vision, thereby connecting the vision to practicaldecision-making.

Why develop a vision?

An economic vision is the point of reference to keep the local area focused on important issues andheading in the right direction. As a general expression of values, visioning provides an opportunity for the

local area to think in broad terms about the future. Developing the vision also provides the opportunityfor dialogue, learning and awareness-raising. The visioning process can also provide insight into structuringthe decision making framework: Objectives (discussed in Step 5).

How to Develop a Vision for Local Economic Development

There are many ways to generate a vision statement, and the five tasks below describe one method.

Task 1:Review the SWOT Analysis and other work done in previously.

Task 2: In a workshop setting, with focus groups or through surveys (a good chance forpublic participation):

- Ask what they would like the local areas future to look like.

- Ask what the economic aspects of this future are (e.g., jobs, income, povertyreduction, etc.).

- Ask: What do you see that is different than now?

Task 3: Collect and group similar ideas

Task 4: Get agreement on themes and have someone from the group wordsmith oneor two-vision statements for approval at later workshops/meetings.

Task 5: Use this process as a launching point into an issues analysis an objectives

formulation.

While it is good to have a vision and it is a nice way to begin a process (e.g., as an icebreaker), be careful

not to use too much of the participants energy and time, or your budget, on this step. It is easy to getsidetracked here, and then not have enough resources or participant enthusiasm for the more concretedecision-making steps that are discussed in Steps 5-8. In some situations it maybe helpful to examineobjectives and actions before or during the visioning process. Doing this helps to ground the local areasvision for the future from the beginning.


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Step 5: Setting Objectives

What are Objectives?

The four points below discuss objectives.

Objectives answer the question what matters? and ask what is important about local economicdevelopment?

Objectives are the basis for generating and designing strategy alternatives. They act as a checklist, ordesign criteria, to address local area values.

Objectives clarify directions of preference that can be compared and traded off (a littlemoreof this for alittleless of that).

Objectives provide decision criteria for evaluating strategy alternatives.

An objective is formed by converting issues and concerns into succinct statements that describes adirection of preference (more-less) and a noun: Promote Employment Opportunities or Reduce

Poverty.Identifying a full range of objectives helps to avoid making unbalanced or poor decisions.

Why do objectives matter?

Objectives are the framework of the LED Strategy. They define priorities for economic development andare the basis upon which actions are ultimately decided. Objectives guide the design of alternatives, theyallow for evaluation of those alternatives and they provide a basis for making tradeoffs and building realconsensus the core of decision-making. After all, actions are taken to achieve objectives, so it is wise tobe clear about what your objectives are.

Table 4: Examples of Strategic Objectives for Local Economic Development

Promote the Reduction of Poverty

Protect Natural Capital

Promote Decent Work

Support Existing Local Business Expansion

Promote Economic Stability (critical for small businesses)

Promote Business/Investment Attraction

How to Set Objectives

Setting objectives may take longer than expected. However, here is where the time should be spent toensure that they are specific and clear. Not only will the objectives provide direction for the future, if wellconstructed, they provide a framework for monitoring and evaluating how well those actions fulfill thelocal areas vision of the future (described in Step 9).

Task 1:Brainstorm Issues

Task 2: Converting issues and concerns into succinct statements; determine meansand ends objectives

Task 4: Develop SMART performance measures (Specific, Measurable, Appropriate,Realistic, Time dated)

Task 5:Prioritize objectives


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MODULETHREE: HOW DO WE GET THERE?

Step 6: Identifying & Evaluating Alternatives

How are Alternatives designed?Alternatives are the heart of strategic planning for LED. An alternative is an action or group of actionsthat, when implemented, can help realize the local areas LED vision and objectives. All the previous stepsin the process have been designed to allow the LED planning group to create good alternatives. This isperhaps the most tangible point in the planning process -- where thinkers and doers connect, wherespecific actions are envisioned and where those with the greatest promise are chosen. Table __ belowprovides a list of 28 typical LED projects, programs and policies that could be taken alone, phased or asalternative action packages.

How are Alternatives identified?

Task 1.Brainstorm action ideas for the alternatives use objectives developed in Step

5 to guide thinking and the Action document to inspire creativityTask 2.Organize actions into coherent alternative strategies

Task 3.Evaluate alternatives using objectives: Do the strategies promote the local areaobjectives? Requires tradeoffs and consensus building

Task 4.Re-evaluate and choose strategy

Table 5: Action Ideas for Local Economic Development

(Note: These actions are profiled in greater detail in Vol. IV:Actions.)Local Government

Action 1.Policy andRegulation

Local governments should be involved to some degree in local

economic development planning. Policy and regulation mechanismscan affect local business activity through infrastructure, taxes, andregulation of land, buildings and activities. Creating business andentrepreneur enabling environments depends on clear and stablepolicies and regulations.

Initial Actions

Action 2.StakeholderImplementationGroup

Once the plan has been agreed to, there needs to be an organizationalmechanism for implementing it. Either an existing agency with anidentified individual needs to take the lead, or an implementingorganization needs to be formed. One option for institutionalizing LEDis through the establishment of a Local Economic Development Agencycomposed of public and private institutions, representatives of politicaland economic spheres, and civil society.

Action 3. DemonstrationProjects

Pilot or demonstration projects are small-scale, short-cycle projects ortest projects that prepare the way for replication or expansion, and keepthe momentum in a LED process going.

Action 4.Research andAnalysis

Nearly every action identified will have additional informationrequirements (feasibility analysis). The LED process may have alsoidentified key data gaps where spending time and money on additionalresearch is warranted (e.g. markets and opportunities, the supply chain(business survey), value-added processing opportuni ties, specificconcept testing/feasibility (eco-industrial parks)).


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Physical revitalization, infrastructure and land planning

Action 15.Physicalinfrastructureinvestment

Investments in physical or hard infrastructure projects are done toimprove the built environment. Often these projects are done toimprove economic efficiency (transportation) and/or quality of life

(water, sewer, power), which makes the local area more livable andattractive for business retention, expansion and attraction of newbusinesses. Physical infrastructure can be implemented by governmentor partnerships.

Action 16. Clusters

Clustering refers to firms or entrepreneurs (including farmers)engaged in similar economic activities locating in one area and workingtogether to advance business opportunities and add value. Relatedconcepts are growth nodes and investment corridors.

Action 17.(Eco) Industrial /Business /Science Parks

The idea is to set aside or zone a significant area of land (a park) wherespecific activities will take place. Eco-industrial parks (or eco-clusters)have been promoted and are b asically the same concept, except theyintentionally try and attract businesses that can cooperate to improvetheir environmental and economic performance through more efficient

use of raw materials, reducing outputs of waste, conserving energy andwater resources, and reducing transportation requirements.

Action 18.Town center /business areaupgrading

Town Center Enhancement typically involves partnerships and caninclude physically upgrading the area (building renovation, banners andflags, greenery, daily street cleaning), targeting investment, etc.

Action 19.Linking ofpermits

Development linking is when the concept of spatial planning (bringingpeople and jobs closer together to reduce travelling times and costs) isexpanded by linking profitable growth with redistributive development concurrent with permitting real estate developers to build in profitableareas, local governments require complementary investment in moreimpoverished neighbourhoods.

Organizational Development for

LED

Action 20.Creating LEDOrganizations

Local economic development organizations are devoted to theimplementation and on-going planning of LED actions. They include:Business Improvement/ Development Associations (BIA, BDA); Localarea Development Corporations (CDC); Municipal Government LEDDepartment, Chambers of Commerce and many more.

Action 21. Co-operativesA co-operative is a democratically controlled enterprise that is ownedby its members to fulfil a financial, economic, social or cultural need.

Action 22. PartnershipsPartnerships between the public and private sector and the local arearepresent an effective and efficient approach to implementing LEDstrategies in local communities and are essential in many LED actions.

Action 23.InstitutionalCooperationMechanisms

For local areas, cooperating in a competitive world is a key to success.Both formal and informal mechanisms exist for promoting greatercooperation.


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Finance

(see Act io n 21) Financial Co-op Als o see co-operative for f inancial co-operat ives

Action 24. Micro-credit

Micro-credit is the extension of small loans to entrepreneurs that are

too poor to qualify for traditional bank loans.

Action 25.

Local Currencyor Local areaCurrencySystems

Local Currency or Local area Currency Systems are a type of parallelcurrency system where a local area organizes and administers asystem of exchanging locally produced goods and services using aninterest free currency whose circulation is limited to a particulargeographic area or social group. The local currency operates alongsidethe conventional national currency of the country.

Investment

Action 26.Foreign DirectInvestment

This involves attempting to attract foreign direct investment fromoutside the local area.

Action 27.Domestic InwardInvestment

Domestic inward investment is an attempt to keep local money in the

local economy. Often, money is put into banks that invest outside thelocal area or investors seek opportunity outside the local area. Localcredit unions and other investment strategies can be developed tolocally reinvest money earned in the local area.

Broad-based Actions

Action 28.Support for theInformalEconomy

The informal economy is comprised of economic activities not recordedand not subject to formal rules of contract, licensing, labor, andtaxation. Informal economies often contribute directly to povertyreduction by providing the livelihoods of large portions of thepopulation. By supporting the informal economy, other important socialdevelopment issues can also be addressed including gender equity,

cultural preservation, child labor and public health and safety.

Action 29.SustainableTourismDevelopment

Sustainable tourism is often pursued because it is not so dependant onfinancial capital or major infrastructure, and is therefore an entry sectorthat can achieve quick results for poorer areas. It is also seen as a win-win option, designed to mitigate the economic needs of a local area andto protect the cultural and natural environment. However, balance isnever an easy task to obtain.

Action 30.Urban-RuralLinkages

Creating improved urban-rural linkages is a key component for ensuringthe sustainability of both rural and urban areas. By connecting thehuman, financial, and manufactured resources in urban areas with thecommunity-managed natural resources in rural areas, the rural peoplesdesire for direct access to end users of rural products and the urbanneed for more affordable and better quality products can be facilitatedthrough more cooperative networks.


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Step 7: Action Planning and Strategy Documentation

What is Action Planning?

Once a group of actions, known as an alternative, has been designed and agreed to by the LED planning

group, it must be operationalized. It is one thing to get agreement on a broad strategy, quite another todetail it, maintain the commitment and secure the required resources. Action planning is simply a way toclearly establish what must be done, the date by which it will be done, and who will be responsible fordoing the work. Action plans need to be do-able within the existing limitations of time, budgets,administrative capacity and political resources. Good action planning offers a chance to double check thealternative to make sure the strategy is practical and can be implemented. Specifying tasks allows for clearbudgeting and a realistic appraisal of the work ahead.

How are Action Plans created?

An action plan contains a description of the specific tasks and activities necessary to implement the chosenalternative. The key tasks involved in action planning are as follows:

Task 1.Clearly understand the tasks and actions involved in the chosen alternative.

Task 2.Determine who needs to be involved and specific roles and responsibilities.

Task 3. Determine the time frames for each action, required resources, confirmfunding and make sure any pre-conditions are met.

Task 4. Identify risks, gaps and weak links in the action plan and how they will be

addressed (e.g., actions or tasks in which there is no clear leader, no funding or otherkey resources identified, capacity limitations)

Task 5. Reconfirm commitments of each partner (partnership implementation

agreements, memorandums of understanding, set action plan workshops and launchevents, sectoral work programmes and budgets).

Task 6.Agree on a coordination mechanism.

Task 7.Agree on a monitoring mechanism (see Step 9)

Strategy Documentation: Preparing the Strategic Plan

The best LED strategic planning document is brief and easy to use. The LED strategic planningdocument will be unique in content, but will likely contain the same summary information informationthat was derived from the Ten Steps of Planning Excellence process. A typical LED strategic documentwill contain the following chapters:

Chapter 1: Introduction Background information and document organization

Chapter 2: Where are

we now?

This provides the overview of the stakeholders and the situation. It is an analysis of the local

economy's strengths and weaknesses, and the opportunities and threats, as well as theavailability of partners and resources for economic development.

Chapter 3: Where do wewant to go?

This contains the final vision and objectives that set the strategic direction for the action plan,which is also included.

Chapter 4: How are wegoing to get there?

This is the strategy and the action plan. It represents priority programs and projects forimplementation. Here is where coordination of funding sources and partnerships/organizationsfor economic development are highlighted.

Chapter 5: How do weknow when we havearrived?

Finally, the LED strategic planning document should describe the process for evaluation andperiodic update.


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Step 8: Plan Implementation

Following Through

At this point of the process, a written and tangibleLocal EconomicDevelopment Strategy Documentshould have

been produced. This document should outline commitment of resources and establish a clear path ofaction. But,beware! It is here that LED strategies often become derailed. Developing the plan is not the endof the process; it requiresgood implementation management.

Institutionalization and Organizational Development

New ways of thinking about LED and utilizing a participatory approach will take time to be understood,accepted and routinely applied. Research indicates that the full impact of implementing a LED will alsotake time, especially if institutional adaptations and adjustments are required. Developing neworganizations or adapting existing ones are two possible ways to institutionalize and sustain the LEDeffort.

For example, LED could be institutionalized through the establishment of a Local EconomicDevelopment Agency (LEDA) composed of public and private institutions, representatives of political andeconomic spheres, and civil society (seeTraining Resource Link6). Especially, in institutionally poorenvironments, LEDAs have demonstrated their effectiveness. In institutionally rich environments somekind of officialized LED forum may be more appropriate, ensuring continuity in consultations, dialogue,strategic planning as well as monitoring and evaluation.

How is institutionalization done?

The following tasks are useful in considering institutionalization:

Task 1:Strengthen exisitng institutional structures in order to improve their effectiveness in

planning, management, and coordination among different sectors; only where necessary,create new institutions to accommodate special requirements both technical andmanagerial not covered by existing instutions.

Task 2:Change or adjust mandates of existing institutions in order to integrate new functions androles.

Task 3:Identify and task anchor institutions to take the lead and provide a home base fo LEDactivities or phases.

Task 4 : Link to established policy instruments such as annual budgeting, human resourceallocation, sectoral work programmes, etc.

Task 5:Develop skills necessary to support and routinely apply the LED process (informationcollection, negociation, facilitatotion, strategy formulation, action planning , monitoring andevaluation).

Task 6:Modify legal and administrative frameworks to enable a proceedural framework for smoothand effective functioning of institutions.

Task 7:Provide funds to support expenditure and equipment for capacity building and sustainingthe framework, primarily through public budgetary provisions or allocations.

Task 8:Maintain knowledge support and a learning process, for example though documenting andevaluating lessons of experience and building collaboration with local research or

consulting establishments.


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MODULEFOUR: HAVEWEARRIVED?Step 9: Monitor and Evaluate

What is Monitoring and Evaluation?Monitoring is Evaluation is

Monitoringmeans to observe or to checkperformance. Monitoring is a continuous process ofcollecting information using performance measures (orindicators) to gauge the process or project. Monitoringaccepts the design of the strategy measuring progressand performance, and identifying successes or failuresas early as possible.

Evaluationuses the information from monitoring toanalyze the process, programs and projects todetermine if there are opportunities for changes to thestrategy, programs and projects. Evaluation, likemonitoring, should promote learning. In theimplementation stage of a LED strategy, evaluation isused to determine if the actions are meeting thestrategic objectives, efficiently, effectively and/or at all.

Understanding Monitoring and Evaluation

Monitoring and evaluation (M&E) should be considered during each step of the process, and not as aspecific add-on to be conducted only at the end of the process. For each step of the LED process, thereare objectives and outputs, that means there are opportunities for M&E. These opportunities can beconducted as participatory actions as well with expert support. M&E is not conducted to find fault and becritical, possibly having adverse effects on the project. M&E is a vehicle for accountability, but it is also amanagement tool for improving the process, programs and projects. M&E should be used as way toenhance learning and capacity building throughout all steps of the LED, to empower the participants to doa better job, and help promote implementation partnerships as partners work through the processtogether. Done on a regular bases, M&E is a proactive management tool that provides timely, reliable, andvalid information for adjusting and modifying the LED (seeStep 10). The M&E process should be acollaborative one with all those involved to promote learning and a better outcome.

Why Monitor and Evaluate?

By tracking performance, monitoring ensures limited resources for economic development can be put tobest-use and that negative or unintended impacts can be identified and minimized. Furthermore,effective monitoring and evaluation will sound the alarm when internal and external circumstances in theeconomic environment have changed, when key opportunities are being missed, or when implementationof a project is no longer effective. Adjustments in action plans, changes in priorities, or a completerefocusing of strategic objectives can then be made to ensure the economic development plan remainsuseful over time. Ongoing monitoring and evaluation should result in the gradual evolution and upgradingof the strategic plan, taking the local area closer and closer to its envisioned future.

How to Monitor and Evaluate Project ImplementationTask 1: Prepare the monitoring or evaluation plan and framework: use projectobjectives and performance measures (Step 5), determine what will be monitored andwhat information is required and how it will be collected.

Task 2:Determine who will be involved

Task 3: Determine when to monitor or evaluate

Task 4:Determine documentation and reporting protocol


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Step 10: Adjust and ModifyThe monitoring and evaluation process is designed to track performance and identify where and whenadjustments in plan implementation at the project level need to be made or where more fundamentalchanges to plan vision or objectives may need to occur.

Adjustments and modifications should be occurring throughout the strategic planning process whenevernew information arises or new priorities for direction or action are identified. And, of course, on a regularbasis (every 5-10 years) the strategy needs to be completely revisited. At this time, go back to Step One...

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World Bankhttp://www.worldbank.org

International Labor Organization (ILO)http://www.ilo.org

Canadian Urban Institute:www.canurb.com

CIDA (Canadian International Development Agency) http://www.acdi-cida.gc.ca/index.htm

CFED (Corporation for Enterprise Development)http://www.cfed.org/

CUED (Council for Urban Economic Development)http://www.cued.org/

Department of Local Government, South Africahttp://www.local.gov.za/DCD/dcdindex.html

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EDAC (The Economic Developers Association ofCanada) http://www.dfid.gov.uk/

EPA (Environmental Protection Agency), economicstopic page http://www.epa.gov/ebtpages/economics.html

ESRC: Cities Programmehttp://cwis.livjm.ac.uk/cities/fs_overview.htm

EURADA (European Association of DevelopmentAgencies)http://www.eurada.org/

HUD (Housing and Urban Development), Office ofEconomic Development, Community Planning andDevelopment http://www.hud.gov/offices/cpd/

IADB (Inter American Development Bank), sustainabledevelopment departmenthttp://www.iadb.org/sds/index.htm

ICLEI (International Council for Local EnvironmentalInitiatives)http://www.iclei.org/

ICMA (International City/County ManagementAssociation)

IEDC (International Economic Development Council)http://www.iedconline.org/

INED (International Network for EconomicDevelopers)http://www.ined.org/

IULA (International Union of Local Authorities; LocalGovernment Associations & Association CapacityBuilding)http://www.iula-acb.org/iula-acb/

NCCED (National Congress for Community EconomicDevelopment)http://www.iula-acb.org/iula-acb/

OECD (Organization for Economic Cooperation andDevelopment, Local Economic and EmploymentDevelopment)

http://www.oecd.org/home/

KPEL (Partnership on Local Economic Development)http://www.parul-led.or.id/introduction

UNIDO (United Nations Industrial DevelopmentOrganization)http://www.unido.org/

USAID (United States Agency for InternationalDevelopment)http://www.usaid.gov


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www.ecoplanintl.comfaci li tat ion ~ strategy d evelopm ent

analysis ~ training

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