Local/Regional Economic Development in South ... - Value Chains

16 Local/regional economic development – short description of the approaches
Goals Application focus Application in project cycle
Local (Municipal)/Regional Economic Development Promotion (LRED)
Concept for local and regional economic development that focuses on implementing a multisectoral multistakeholder approach
Increasing income and employment with the
broadest possible distribution (pro poor growth).tt
Region („Europe of the Regions“) as main pillar/
level of economic development in the EU.
Projects, programs, program components in
countries with the priority areas WIRAM (Economic
development and employment promotion – EDEP)
and/or Governance as well as in projects on Regional
development or Decentralization.
Regional focus, can concentrate on sectoral
components during implementation.
• Program/project appraisal
• Program/project planning
• Program/project implementation
Regional management (RM):
Conceptual and organizational framework for identifying and implementing visions/particular development opportunities of a (geographically
and/or politically defined) region.
Development of regions on the basis of visions that
have been drawn up jointly.
Projects, project components in countries with the
priority areas WIRAM (EDEP) and/or Governance or
in Regional development programs.
• Project planning
• Project implementation
• Monitoring & evaluation (M & E)
• Proposals for individual projects
Municipal economic development (MED)
Development approach for improving local governments’ planning and management capacity in business promotion including local economic
units.
Strengthening of planning and steering capacity of
local authorities in order to guarantee sustainable
local economic development.
EEP; decentralization and regional development
programs.
Rural Economic and Enterprise Development (REED):
Analytical and planning framework for measures for rural economic development.
Analytical basis for mid and long-term planning
for economic development of rural areas taking
into account the aspects of poverty reduction and
ecologically sustainable development.
Project identification/creation of programs in the
framework of regionally-oriented projects and
programs as well as donor coordination in the
framework of sector programs/SWAp (Sector-Wide
Approaches).
Implementation concept based on
analytical preliminary work in the
framework of project appraisal.
• Project/program identification
• Project/program planning
• M & E and benchmarking
Participatory Appraisal of Competitive Advantages (PACA):
Instrument for participatory analysis of the potentials and problems of local economic development, focused on the entrepreneurial point of view.
Planning activities that promise short-term
success on the basis of short participatory analyses
of competitive potentials of a region or local
government.
In the framework of regionally oriented projects and
programs for identifying quick win opportunities.
Business Development Services (BDS):
Instrument for developing sustainable transsectoral and/or sector-specific service structures.
Strengthening competitiveness of small and
medium-sized enterprises (SMEs) via access to
demand-oriented, competent and sustainably
financially viable company-related services.
Instrument in the framework of EDEP, LRED, RM,
MED as well as clusters and value chains.
Primarily at the onset of
implementation phases in regions for
which no in-depth planning exists.
• Project planning, Analysis of the offer
and need for BDS as well as planning
adequate interventions
• Project implementation, BDS as an
implementation instrument
Cluster approach and value chain approach:
Approaches for developing business networks for enhancing competitiveness of small and medium-sized enterprises by using existing synergy
potentials.
Creation of value-added, jobs, and income by
strengthening the competitiveness of selected
business networks in the functions of their market
potential.
Both approaches can be used independently but are
typical components of projects and programs of EEP,
LRED, and related project/program types such as RM
or MED.
Approaches and instruments of cluster
and value-chain promotion are used
throughout the overall project cycle.
• Program/project appraisal
• Program/project planning
• Program/project implementation
• M & E