local development policies and projects of european union, ibd, prof. guglielmo wolleb, academic...
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LOCAL DEVELOPMENT
Policies and projects of European Union, IBD, Prof. Guglielmo Wolleb, academic year 2014/2015
The cycle of local economic development project
Sources
Slides of these lectures have been drawn, with cuts and changes, from the following Manual, available on the web:
Making Local Economic Development Strategies: A Trainer’s Manual is a knowledge product of the World Bank and Cities of Change Initiative, and was produced in conjunction with the Bertelsmann Foundation.
Sources The Manual was written and produced by the Local
Economic Development team based in the Urban Development Unit of the World Bank. The methodology was developed by Gwen Swinburn, Senior Urban Specialist, with assistance from Fergus Murphy, Consultant. Contributions and advice were gratefully received from Nikolas Beckmann, Bertelsmann Foundation, Bonnie Walter, Consultant, and André Herzog, Consultant. Information used in this guide was obtained with permission from the publication ‘Local Economic Development: Good Practice from the European Union and Beyond’, 2000, an unpublished paper prepared by Gwen Swinburn for the Urban Development Unit of the World Bank.
A process with different stages
Creating a local coalition Analysing local economy and society Elaborating a local development
strategy Implementing the development
strategy Monitoring and evaluating the
strategy
Stage 1: creating a local coalition
To take note of the institutional context (powers’ system)
To take note of the top level system of rules- laid down by the Centre-within which the coalition must act
To identify possible promoters of the coalition
To build the driving nucleus of the coalition
Stage 1: creating a local coalition
To identify and involve all local stakeholders in development programmes
Why involve them: Because they are bearers of knowledge To build a wide political consensus on
the local development strategy
Stage 1: creating a local coalition
Potential stakeholders: Local public institutions Higher than local public institutions Intermediate institutions Private firms Non profit organizations Universities and research centres Single persons with specific skills
Stage 1: creating a local coalition
To favour the emergence of a leaderships with characteristics of: Legitimacy (institutional and on the
ground) Credibility (political power) (skills) (super
partes) (engagement)
Stage 1: creating a local coalition
To start a process of consultation and discussion in a way shared and agreed
To give visibility to the whole process To ensure inclusiveness and openness
to the process To give concrete outcomes to the
process
Stage 1: creating a local coalition
To ensure temporal stability to the process
To formalize the process: steering group
Give effective power to the coalition To maintain relationships with other
tiers of government
Stage 2: Local economy assessment To gather the necessary information to
undertake an economic and social territorial analysis
Information are needed to identify the endogenous resources of the territory, its capabilities, its weaknesses and external opportunities
Information, properly processed, are the basis for elaborating scientifically founded development strategies and programmes
Stage 2: Local economy assessment
This work of gathering and analysing information is also instrumental for local actors to deep the knowledge of the territory
This work also represents an opportunity to strengthen the coalition and create consensus on the programme
Stage 2: Local economy assessment
Information can be drawn from a variety of sources: Statistical sources Questionnaires to specific stakeholders Interviews Focus groups
Stage 2: Local economy assessment
Needed information cover different dimensions: Demography Economy Infrastructure Institutions Civil society Policies
Stage 2: Local economy assessment
Demography Dimension and size of population Age structure Immigration Natural increase Net migration
Stage 2: Local economy assessment
Economy National, regional and local GDP Past growth performance Labour productivity Investment Value added and employment by sector Weight and localization in external
markets Number and size of firms
Stage 2: Local economy assessment
Economy (follows) Linkages among firms (clusters?) Corporate governance Average earnings Research and development Human capital Weight of informal economy
Stage 2: Local economy assessment
Economy Employment rate by age and gender Unemployment rate by age and gender Long run unemployment
Stage 2: Local economy assessment
Society Income inequalities Share of poor people Share of immigrants Segments of people at disadvantage
Health Education Housing
Security
Stage 2: Local economy assessment
Institutions Role and power of different institutions Institutional thickness Cooperation among institutions Relationships between public institutions,
firms and civil society Efficiency in public administration Laws, regulations, enforcement, taxation,
licenses, business enabling environment
Stage 2: Local economy assessment
Infrastructure Transportation links Telecommunications Public utilities Internet Environment Future planned infrastructure
investments
Stage 2: Local economy assessment
Civil society Norms and agreed values Identity values Historical traditions of collective action Social capital Trust Security
Stage 2: Local economy assessment
Policies Survey of ongoing economic policies
impacting on the territory Evaluation of past policies Consistency and integration of local
policies with national and European policies
Lessons learned
Stage 2: Local economy assessment
Swot analysis: useful conceptual tool to systematize and elaborate information gathered on a territory, sector o topic.
It is not a good substitute for more scientifically rigorous analysis
It is undertaken building a four entries matrix: strengths, weaknesses, opportunities, threats
Stage 2: Local economy assessment
Strengths and weaknesses refer to the endogenous resources of the local economy and society
Their identification is instrumental for elaborating programmes aimed at the enhancing of the territorial potentialities and at overcoming the elements of weakness
Stage 2: Local economy assessment
Threats and opportunities refer to external events, which are not under the control of local actors, but which can have an impact on the territory
Their consideration is instrumental for elaborating programmes which exploit the external opportunities and reduce the risks of external events
Stage 3: elaborating a strategy
Various steps in the process: To develop a strategic vision of the
future of the territory To select the final goals of the
programme consistent with the strategic vision
To select intermediate objectives to achieving the final goals
To elaborate and select programmes and projects to achieving the objectives
Stage 3: elaborating a strategy To verify consistency and
complementarity between local strategy and higher level of government strategies: European, national and regional
To take into-account learned lessons of past policies: correct errors and enhance successes and best practice.
Stage 3: elaborating a strategy
Strategic vision
Final goals
Specific objectives
Programmes
Projects
Stage 3: elaborating a strategy
Agreed strategic vision of the future of the territory
The vision represents the desired future by the community. It reflects the community’s preferences
It contains elements of realism but also of imagination
Stage 3: elaborating a strategy
It is important to involve all relevant stakeholders in the making of strategic vision: To reduce conflicts in the implementation
stage To mobilise local actors and widen the
human basis of development To increase knowledge and socialise skills
Stage 3: elaborating a strategy
Creating a vision (an example) “By 2010, this city will have a dynamic
business-oriented government and be characterized by an attractive business enabling environment that provides the basis for a wide range of entrepreneurial and employment opportunities. This city will be home to a diverse and growing range of business that provide a broad range of employment opportunities in the service, agricultural and manufacturing sectors”
Stage 3: elaborating a strategy
Final goals of the programme/project Final goals are more descriptive and
concrete than a vision statement but still quite general
They should be based on the local economy assessment undertaken to date
Stage 3: elaborating a strategy
Typical goals of a regional programme To improve living standard and reduce
social exclusion To foster economic growth and
increase the rate of employment To increase competitiveness of the
economic system
Stage 3: elaborating a strategy
Typical goals of sub-regional or local programmes Integrated enhancement of historical, cultural, artistic
and human resources of the territory to promote tourism development
Reviving the local manufacturing system in order to compete with more advanced local systems
Leveraging on religious tourism and exploiting its power as the driving force to enhance the local immobile resources
Stage 3: elaborating a strategy
Specific objectives Intermediate objectives must be
Consistent with the final goals More specific than final goals Suitable for a quantitative assessment Realistically achievable Financially sustainable With precise deadlines
Stage 3: elaborating a strategy
Typical specific objectives To give incentives to biological agriculture To launch marketing campaign to promote
tourism To favour the start up of new firms and to
promote new skills Implementation of measures of recovery of
farm properties to support agri-tourism To promote the use of renewable energies
Stage 3: elaborating a strategy
The programs are made by a set of projects that contribute to achieving the same specific objectives
Stage 3: elaborating a strategy
The following criteria should be followed in selecting the projects: Projects should be clearly linked to the achievement
of specific objectives Bundles of integrated and complementary projects
should be chosen to enhance the final impact To avoid fragmentation choosing too many and too
small projects To ensure technical and procedural feasibility To ensure financial sustainability even beyond the
end of public financing
Stage 3: elaborating a strategy
It is also important To evaluate the temporal dimension of
the various projects and the diverse degree of risk
To compare effectiveness and efficiency of alternative projects
Stage 3: elaborating a strategy
Transparency of the whole process of strategy elaboration should be ensured
All local actors must be enabled to know the strategy
Comments and criticisms should be solicited and carefully evaluated.
Stage 4: implementing a strategy
The different steps To prepare an Implementation Plan To prepare an Action Plan for each
project Build institutional frameworks Ensure relevant inputs are available Carry out project tasks
Stage 4: implementing a strategy
Prepare an Implementation Plan An Implementation Plan lays out
budgetary, human resource, institutional and procedural implications in implementing the LED strategy
It is based on the Single Action Plans related to the single projects
It ensures the coherence and complementarities of single projects and the overall feasibility of the programme
Stage 4: implementing a strategy
The Implementation Plan must contain for each project information about: Distribution of tasks and responsibilities Targets Financial resources Human resources Legal and procedural requirements The time table of each project The monitoring and evaluation systems
Stage 4: implementing a strategy
Prepare the Action Plan of each project
The Action Plan describes in more detail all tasks which must be carried out for the implementation of the project
Stage 4: implementing a strategy
The Action Plan must include: The specific objectives and their consistency with the
final goals The list of all resources required for the
implementation of the project The list of all tasks to be accomplished The expected output and the indicator The expected result and the indicator The expected impact and the indicator The distribution of competences in the management
of the project The procedures to be followed
Stage 4: implementing a strategy For each project it is useful to fill synthetic cards with the
following information Name of the programme and of the project with a
brief description Tasks to be accomplished Human and financial resources Time schedule and pluri-annual financial plan with
indication of the sources Expected output, results and impact Performance indicators and monitoring and
evaluation systems
Stage 4: implementing a strategy
To build the institutional framework To establish the competencies of different bodies To establish the forms of cooperation among different
bodies To establish the rules of the decision making process To formalize the relationships among different
institutional levels To formalize the arrangement and the role of
partnership and stakeholders
Stage 4: implementing a strategy To ensure the availability of necessary inputs
for the implementation of the project for its entire duration
Inputs can be: Financial (financial resources to pay for the cost of the
project) Human (people ready to work in the project with the
necessary skills) Political (political forces and lobbies available to support
and give priority to the project)
Stage 4: implementing a strategy
To implement the projects…..
Stage 5: revising the strategy
Local development programmes and projects have the character of processes: it is physiological that they be monitored, revised and modified continuously during implementation
This requires that the strategic design of projects includes monitoring and evaluation systems and specifies the operating mode
Stage 5: revising the strategy Monitoring and valuation perform different tasks:
They ensure transparency in the use of public resources
They allow adaptation to changes in external environment
They provide a continuous flows of information to help make changes and correction of errors in a short time
They promote the strengthening of the strategy through a learning process “trial and error”: you learn from successes and failures
Stage 5: revising the strategy They favour a process of empowerment
of the local actors and of institutional building
They make possible the benchmarking of interventions
They increase external actors’ trust They justify the call for further financing
Stage 5: revising the strategy Monitoring
It consists in the systematic and continuous collection of information on all aspects of the programme and its use in the implementation of the projects
It aims to analyse the current situation, identify problems and find solutions, to monitor compliance with the provisions in the project, to measure progress in achieving these objectives and make corrections
Stage 5: revising the strategy
Monitoring It is carried out on a continuous basis in
order to allow intervention in a short time
It does not challenge the strategic design but it focuses on its correct and efficient implementation
It is undertaken by the same actors which implement the strategy (or by actors which work side by side with the implementers of the project)
Stage 5: revising the strategy Evaluation
It consists in the periodical verification of the validity of a strategy and of its programmes and projects in relation to the objectives set
Evaluation can challenge the overall design strategy, verifies the validity of the final goals, makes judgements, focuses on the effectiveness of programmes and projects
It can be realized either by external evaluators or by the same subjects who implement the programmes.
Stage 5: revising the strategy
External evaluation has the following positive features: It is more transparent (because it is
made by non-interested people) It is more objective (the appraiser is
different from who those evaluated) It is technically more valid (because it is
undertaken by specialized bodies)
Stage 5: revising the strategy
Internal evaluation has the following positive features: It favours the empowerment of local
actors engaged in the implementation of the strategy (self reflective processes)
It is more easily translated in changes in strategy, programmes and projects
Stage 5: revising the strategy Evaluation focuses on changes produced by the policy. It
is based on four parameters Output produced compared to the expected output Efficacy in achieving the objectives (extent to which
the objectives have been achieved) Efficiency in achieving the objectives (what has been
done, has it been done at minimum cost?) Overall impact of programmes and projects (how and
what the implementation of the programme has changed the initial situation of the territory)
Stage 5: revising the strategy A system of indicators suitable for valuation
must be embodied from the beginning in the design of the strategy
An indicator is a unit of measurement The value of an indicator before the launching
of the programme is the baseline value The value of the indicator which the
programme aims at achieving is the target. Indicators refer to objectives, general or
specific
Stage 5: revising the strategy
Indicators must be Easily and clearly understandable Good proxies for the objectives to which
they relate Based on statistics easily and regularly
available
Stage 5: revising the strategy
Examples of indicators: Percentage increase of agriculture
employment Percentage increase of textiles exports Reduction of CO2 emissions
Stage 5: revising the strategy
Examples of targets 5% increase in agricultural employment
to be implemented in three years 8% increase in textiles exports to be
implemented in 5 years Reducing by 30% CO2 emissions by 2020
Stage 5: revising the strategy
Three main types of indicators Output indicators Result indicators Impact indicators
Stage 5: revising the strategy
Example 1: policies aimed at providing incentives to business investments Output indicator: number of firms
benefiting incentives Result indicator: volume of investment
by supported firms Impact indicator: new jobs created
Stage 5: revising the strategy
Example 2: building a road junction between an industrial area and a motorway Output indicator: km of road built Result indicator: reduction in travel time Impact indicator: reducing transport cost
for firms located in the area
Stage 5: revising the strategy
Evaluation must be able to separate changes in circumstances that are attributable to the action of the programme from changes that are attributable to other causes
This is possible only with counterfactual analysis (that are extremely difficult to be carried out)
Stage 5: revising the strategy The design of systems for monitoring and
evaluation is done early in the drafting of the strategy. It is part of the overall strategy
The design of these systems-who does what-is discussed and decided together with stakeholders in the first construction phase of the strategy
The data needed for monitoring and evaluation are identified in the analysis phase of the local system
Stage 5: revising the strategy
The system of indicators and targets will be formulated during the development of programs and projects
The evaluation results are presented and discussed in public
The evaluation results are used for the preparation of future strategies