LED TG Seminar 10LED TG Seminar 10thth January 2005 January 2005 Enabling the Economic Performance of Cities Enabling the Economic Performance of Cities

How City Strategic Planning Enables How City Strategic Planning Enables the Economic Performance of the Economic Performance of

CitiesCities

(and so much more)(and so much more) Session 3Session 3

Gwen SwinburnGwen Swinburn

Senior Urban SpecialistSenior Urban Specialist

World Bank, Urban UnitWorld Bank, Urban Unitwww.worldbank.org/urban/led

Gswinburn@worldbank.org

World Bank Urban and Local World Bank Urban and Local Government StrategyGovernment Strategy

...cities & towns must be sustainable in four ...cities & towns must be sustainable in four respectsrespects

Livable Livable

CompetitiveCompetitive

Well Governed and ManagedWell Governed and Managed

Bankable Bankable

… … the Bank must improve its ability to strategize the Bank must improve its ability to strategize holistically and intervene selectively..*holistically and intervene selectively..*

* World Bank Urban and Local Government Strategy 2000* World Bank Urban and Local Government Strategy 2000

Enabling City Enabling City CompetitivenessCompetitiveness

OECD Good PracticeOECD Good Practice Most OECD cities/towns have City Strategic Most OECD cities/towns have City Strategic

PlansPlans* addressing competitiveness issues * addressing competitiveness issues (stand alone LED strategies or components in (stand alone LED strategies or components in CSPs)CSPs)

Most CSPs/LED strategies involve Most CSPs/LED strategies involve public sector public sector driven partnerships driven partnerships

They are comprehensive, include They are comprehensive, include hard and hard and soft infrastructure projects, across all sectorssoft infrastructure projects, across all sectors

Usually a key focus is to improve the Usually a key focus is to improve the local local business enabling environmentbusiness enabling environment (policy and (policy and operating environment)operating environment)

** City strategic plan is the generic name for City Development Strategies. Increasingly in OECD City strategic plan is the generic name for City Development Strategies. Increasingly in OECD countries city regions are designing strategic economic plans, which address economic countries city regions are designing strategic economic plans, which address economic space not political space.space not political space.

Definition of Urban Definition of Urban Competitiveness*Competitiveness*

The ability of cities to continually upgrade their

business environment, skill base, and physical, social and cultural infrastructures,

…so as to attract and retain high-growth, innovative and profitable firms, & an educated, creative & entrepreneurial workforce, to thereby achieve a high rate of productivity, high employment rate, high wages, high GDP per capita, and low levels of income inequality and social exclusion”

* UK State of the Cities Report 2005* UK State of the Cities Report 2005

Three Waves ofThree Waves ofLocal Economic DevelopmentLocal Economic Development

WaveWave Aims Aims ToolsTools

First WaveFirst Wave 1960s to 1960s to early 1980searly 1980s

Focus on the attraction Focus on the attraction of mobile of mobile manufacturing manufacturing investment from outside investment from outside the areathe area

Subsidised loans, direct firm Subsidised loans, direct firm payments, tax breaks, payments, tax breaks, expensive and competitive expensive and competitive low road industrial low road industrial recruitment programsrecruitment programs

Second Second WaveWave

1980s to 1980s to mid- 1990smid- 1990s

Focus moved towards Focus moved towards retaining and expanding retaining and expanding existing business with existing business with direct firm paymentsdirect firm payments

Using both direct firm Using both direct firm payments, providing payments, providing managed workspace, advice managed workspace, advice and training for SMEs, and training for SMEs, technical support and technical support and business start up supportbusiness start up support

Third Third WaveWave

Late 1990s Late 1990s onwardsonwards

Focus shifting from direct Focus shifting from direct firm support to firm support to improving improving the entire business the entire business environment environment for better for better business growth & business growth & retentionretention

Note adoption of third wave Note adoption of third wave techniques has not techniques has not eliminated either good or eliminated either good or bad practice continuing to bad practice continuing to be used from 1be used from 1stst and 2 and 2ndnd waveswaves

Third Wave FeaturesThird Wave Features

Strategic planningStrategic planning, integrated & holistic, integrated & holistic Business friendly Business friendly red tape reductionred tape reduction Horizontal and vertical partnershipsHorizontal and vertical partnerships to to

achieve economic competitiveness achieve economic competitiveness (Government layers)(Government layers)

Public/private partnershipsPublic/private partnerships City networksCity networks that leverage effort that leverage effort Grow your own jobsGrow your own jobs rather than import jobs rather than import jobs Whole business environment countsWhole business environment counts, not , not

individual firms per seindividual firms per se

7

Our Definition of Local Economic Our Definition of Local Economic Development for WB PilotsDevelopment for WB Pilots

The The purposepurpose of LED is to of LED is to build up the build up the economic capacityeconomic capacity of a local area to improve of a local area to improve its economic future and the quality of life for its economic future and the quality of life for allall

It is a It is a processprocess by which by which public, business and public, business and non-governmental sector partners work non-governmental sector partners work collectivelycollectively to create better conditions for to create better conditions for economic growth and employment generation economic growth and employment generation at the local levelat the local level

Strategically planned LED and Strategically planned LED and the World Bank: Why? the World Bank: Why?

To enable local government partnerships to To enable local government partnerships to improve improve the local investment climatethe local investment climate to encourage job growth to encourage job growth and sustainable developmentand sustainable development

To enable cities to act as drivers of local and regional To enable cities to act as drivers of local and regional growth and hence growth and hence contribute to national growthcontribute to national growth

To encourage To encourage local governments to adopt good local governments to adopt good practicepractice in terms of strategic planning, governance, in terms of strategic planning, governance, financial management and stakeholder inclusionfinancial management and stakeholder inclusion

To enable Local Governments and stakeholders to To enable Local Governments and stakeholders to identify and prioritize investment needs identify and prioritize investment needs

LED: where in the World Bank?LED: where in the World Bank?

Within Within UrbanUrban to enable cities to be drivers of growth “the to enable cities to be drivers of growth “the competitiveness pillar of the urban strategy”competitiveness pillar of the urban strategy”

Within Within PREM, Investment Climate and Private Sector PREM, Investment Climate and Private Sector DevelopmentDevelopment work to ensure a conducive investment work to ensure a conducive investment climate and balanced growth including at the local levelclimate and balanced growth including at the local level

Within our Within our Mining Global Product GroupMining Global Product Group (WB/IFC) to (WB/IFC) to ensure regeneration of declining mining areas and job ensure regeneration of declining mining areas and job replacement and to sustain new investmentsreplacement and to sustain new investments

Within our Within our HD, ESSD, and Social Funds GroupsHD, ESSD, and Social Funds Groups to to encourage strategic allocation of resources and encourage strategic allocation of resources and sustainability of such investments at the local level.sustainability of such investments at the local level.

To enable our To enable our RuralRural market towns to be drivers of rural market towns to be drivers of rural growth.growth.

40 World Bank LED Pilots40 World Bank LED Pilots

Kosovo- a network of 12 towns and cities (SME) Kosovo- a network of 12 towns and cities (SME) Bulgaria, Latvia, Slovakia, Hungary & Poland- a Bulgaria, Latvia, Slovakia, Hungary & Poland- a

network of 8 cities, 2 dropped out (Urban)network of 8 cities, 2 dropped out (Urban) Bosnia and Herzegovina – two cities (IFC)Bosnia and Herzegovina – two cities (IFC) Albania- a network of 5 cities (SME)Albania- a network of 5 cities (SME) Latvia- a network of 8 cities, incl. Riga (Urban)Latvia- a network of 8 cities, incl. Riga (Urban) Yemen- Aden plus two more port cities (Urban)Yemen- Aden plus two more port cities (Urban)

All these projects are structured differently, funded by different parts of the Bank and all All these projects are structured differently, funded by different parts of the Bank and all with different partners, but all are city networks, based within local governments, with different partners, but all are city networks, based within local governments, with stakeholders using a strategic planning approach . Municipal teams are with stakeholders using a strategic planning approach . Municipal teams are responsible for strategy design development and implementation, not consultants.responsible for strategy design development and implementation, not consultants.

How we approach LED within How we approach LED within the World Bank pilotsthe World Bank pilots

Using a strategic planning approach where city Using a strategic planning approach where city teams learn the methodology and design their teams learn the methodology and design their

own strategiesown strategies

Stage 1: Organizing the EffortStage 1: Organizing the Effort Stage 2: Local Economy Stage 2: Local Economy

AssessmentAssessment Stage 3: Strategy MakingStage 3: Strategy Making Stage 4: Strategy ImplementationStage 4: Strategy Implementation Stage 5: Strategy ReviewStage 5: Strategy Review

An Example: Poprad, An Example: Poprad, SlovakiaSlovakia

City Strategic Plan - GoalsCity Strategic Plan - Goals

Expand Expand TourismTourism Industry e.g. promotion, Industry e.g. promotion, build congress center, bike pathbuild congress center, bike path

Expand Expand [diversify][diversify] Economic Base Economic Base e.g. e.g. industrial sites, European markets projectindustrial sites, European markets project

Expand Expand Technical infrastructureTechnical infrastructure (transport, (transport, economic, quality of life) e.g roads, economic, quality of life) e.g roads, industrial sites, Roma housing, sports hallindustrial sites, Roma housing, sports hall

Improve Improve GovernanceGovernance & local administration & local administration e.g. CIP, LED department, one stop shope.g. CIP, LED department, one stop shop

Social InclusionSocial Inclusion and and Skills DevelopmentSkills Development e.g. e.g. ICT in schools, equal chance programICT in schools, equal chance program

LED Knowledge BankLED Knowledge Bank Methodology, 5 stagesMethodology, 5 stages Case Studies, project and program ideasCase Studies, project and program ideas Training Materials Training Materials Knowledge ProductsKnowledge Products Links to many more LED related web Links to many more LED related web

sites sites

All available at:All available at:www.worldbank.org/urban/

led

If you would like to know more…