STRATEGIES AND TOOLS FOR LED

Learning from ILS LEDA and U.N. experience

Giancarlo Canzanelli

London, Colombia 10 March2012

LSE FORUM ON LED - 2012

COMMON CHARACTERISTICS OF LOCAL ECONOMIES IN WEAK AREAS

In Dominican Republic, there is a long tradition and know how in coffee crop, with a strong competitive advantage due to its good quality. They sell them to national and international intermediaries, who use them for various industries and enrich themselves by paying a pittance.

In Lebanon, the producers of lebaneh of the Bekaa Valley are suffering from competition from producers in Israel and Cyprus who can sell the same yogurt not original in Europe and the U.S.

In the Velez valley of Colombia a special guayaba exists with a unique flavor due to the presence of seven different microclimates, but farmers are in perpetual conflict with the processors and prefer to sell the fruit on the street earning very little.

In the region of Valona (Albania), there is a long and internationally recognized tradition of polyphony, but the lack of strategy and policy for attracting and retaining young people to this art is going to determine the end of it.

Coffee Dominican

Relational Capital

Competitive Advantage

Obstacles

High between the farmers Low in the value chain

Know How

Quality

Low productivity (profesionalism, technology), and food security Lack of industrial production Entrepreneurship Marketing

Labneh Lebanon

Low in the dairy farms

Low in the value chain

Artisan Tradition

Know How

Scarce food security and quality Absence of a brand and marketing Scarce Productivity No access to services (finance)

Guayaba Velez

Colombia

Medium between the

farmers Low in the value chain

Biodiversity

Know How

Poor ability to consultation Lack of brand and marketing Poor access to credit for the capitalization and mechanization Plant Diseases

Polyphony

Albania

High between the people Low in the value chain

Tradition

Culture

Know How

Poor internal market Young people do not learn the art Lack of a strategy for internationalization

THE UNDP ART LEARNED LESSONS

1. The local actors shall define and share strategies for long term sustainable and inclusive development, able to provide the platform for harmonising investment, initiatives, and projects.

2. The economic added value could better results from valorising the endogenous potential and the typical production and culture, in competitive and sustainable way.

5. It is fundamental to establish a structure able to translate the strategies and plans in concrete actions, and to provide comprehensive services to the population and the administration. The structures ART Initiative has been promoting Local/Territorial Economic Development Agencies (LEDA), as public-private and self-sustainable structures.

4. Smme are the backbone of the economic development, mainly if they are clustered in value chains.

6. Strategies for territorial marketing and territorial innovation systems are more effective than individual efforts.

7 . Territorial development strategies shall always be linked to national strategies, that are build on the inputs from the local strategies

3. Sustainable competitiveness is achieved through determining social equity, environmental protection, and continouos innovation.

SETTING UP A STRATEGY FOR VALORIZING ENDOGENOUS POTENTIAL

ECONOMIC

POTENTIALITIES

TERRITORIAL

DISTINCTIVE

AND

STRATEGIC

FACTORS

SUSTAINABILITY OF ACTORS

TOWARDS

HUMAN DEVELOPMENT

CAUSES OF THE OBSTACLES

OBSTACLES

Economic Sustainability

Social Sustainability

Environmental Sustainability

Institutional Sustain.

STRATEG

IC PLA

N

HOW TO MAKE IN PRACTICE THE TERRITORIAL SUSTAINABLE COMPETITIVENESS IN 9 STEPS

Assess the endogenous competitive potential

Build up the local partnership and the relational capital

Share the priorities and strategic plans through the local partnership

Build up value chains for valorising the strategic resources and improve their performance

Include the most disadvantaged people in the value chains for production and services

Establish a sustainable and comprehensive system (LEDAs) for supporting TED

Realise sound territorial marketing strategies and brands, and innovation territorial systems

Coordinate strategies and actions with the national government, and establish links and networks with national governmenta and actors

Realise international partnerships with other territories

3

1

2

4

5

6

7

8

9

Sustainabilty  strategy  

Presence of enterprises Presence of services Value of the needed investment Potentialities of the value chain Entrepreneurial skills

Economic sustainability

Environmental policies Environmental behaviour Environmental protection Infrastructure

Environmental sustainability

Education policies Generated employment Social inclusion and equity pursued Diffusion of the resource in the area Gender equity potential

Social sustainability

Resource identified as strategic by the public authorities Cooperation between the enterprises and the other sectors Presence of favourable laws and regulations Participatory governance

Institutional sustainability

THE ILS LEDA NETWORK OF LEDAS PROMOTED BY THE UNITED NATIONS (www.ilsleda.org)

PROCESS AND INSTRUMENTS

National Regulations for supporting LED strategies

Intergovernmental Coordination

Capacity building polices

National networking

Evaluation and Monitoring

Valorization endogenous potential

Value Chains Building

Territorial Planning

Territorial systems for innovation

LEDAs

Local Finance

Social Inclusion

Internal Marketing

Image identification

External marketing and communication

International territorial partnerships

Project financing

International Marketing

NATIONAL POLICIES

TERRITORIAL DEVELOP.

STRATEGIES

COMPREHENSIVE SERVICES

TERRITORIAL MARKETING

INTERNATIONALI-ZATION

A partnership activity between public, private, and institutional sectors, with substantial vertical and horizontal collaboration on the public sector side, and where stakeholder engagement is both effective and efficient;

A long-term effort and shared strategy (that will also produce important progress within short time pans)

An activity supported by appropriate organizational vehicles such as a territorial development agency, that is customer and investor - oriented

OECD recommends local development to be orchestrated as:

A local development agency is a legal, non-profit structure,

generally owned by the public and private entities of the

territory, through which local actors plan and activate, in a

shared way, initiatives for territorial sustainable and

inclusive development; identify the most convenient

instruments for their realization; and enhance a coherent

system for their technical and financial support, with

special reference to the weakest part of the population.

OECD recommends the definition of the LEDAs as the one proposed by ILS LEDA, that is:

THE ILSLEDA NETWORK OF THE LEDAs

Guatemala

•  Ixcan (1993) •  Huehetenengo (1996) •  Chiquimula (1999)

El Salvador

Dominican Republic

Honduras •  Chalatenango (1992) •  Morazan (1992) •  Ademmis (1994) •  Apopa (1994) •  Sonsonate (2004)

Nicaragua

•  Granada (1991) •  Leon (1993) •  Jinotega (1994)

•  Valverde (2000) •  Dajabon (2000) •  Monte Plata (2000) •  Seibo (2009)

Ecuador Colombia

•  Ocotepeque (1992) •  Intibuca (1993) •  Valle (2002)

*  Associated  LEDAs  

•  Rafaela •  Santa Fe Network

Uruguay

•  Ribera (2008)

Argentina *

•  Velez (2005) •  Metropolitana (2005) •  Urabá (2005) •  Oriente Antioquia (2005) •  Nariño (2004) •  Cauca (2005) •  Dinosaurius (2005) •  Antioquia •  Casa del Agua •  Valle Tensa • 

•  Azuay (2004) •  Quito •  Crecer •  Manabi •  Corpoambato

Albania

Bosnia Herzegovina

•  Travnik (1997)

•  Skhodre (2001) •  Vlore (2003)

Serbia

•  Novi Sad (2002) •  Kragujevac (2004)

Lebanon

•  North (2010) •  Bekaa (2010) •  Dahyeh (2010) •  South (2010)

Angola

•  Nkomazi (2002) •  Limpopo (2010)

•  Bengo (2001) •  Bengele (2002) •  Kuanza Sul (2001)

South Africa

Mozambique

•  Sofala (1999) •  Manica (1999) •  Matutine (2002) •  Nampula (2004) •  Zambezia (2004)

Sri Lanka

•  Rueda (South Province -2008)

Bolivia

•  La Paz (2010) •  Oruro (2010)

www.ilsleda.org  

PRODERE

ART

History  of  

 LEDAs    

They are focused to faclitate local Smme development for favoring the economic inclusion of the poorest

1991-1998

Strategic focus on value chains and prioritization of what provides territorial development with sustainability

1999-2003

Territorial development is linked to national policies, and the LEDA role is recognized as strategic propeller. Human development features are included as strategic performace

2004-2009

More Human Development

Strategic Territorial Marketing

Territorial Syetems for innovation Social and solidarity Economies Green Economies

2010-?

ILS LEDA

1  genera3on   2  genera3on   3  genera3on   4  genera3on  

2   2   2  

PDHL APPI

I QUAL

ý  Territorial marketing ý  Territorial brands ý  Internationalization promotion ý  Support to international

partnerships

Territorial Animation

ý Territorial diagnosis for identifying economic potentialities;

ý Promotion of a favorable climate for entrepreneurship

ý Promotion of value chains ý Support to the disadvantaged population ý  Desk for women entrepreneurship

Support to planning

ý  Support to territorial planning of local administrations

ý  Information systems ý  Elaboration and implementation

of strategic projects ý  Coordination Project Task Team

Business Services

ý  Support of feasibility studies ý  Technical, managerial and skill

training ý  Information system ý  Promotion of innovation and

technological exchange ý  Support to credit access,

financial tools (Guarantee Funds)

Territorial Promotion

TYPICAL SERVICES FOR LOCAL ECONOMIC DEVELOPMENT

PARTICIPATION

AVAILABLE RESOURCES

AREA : Preferably relative to administrative boarders) UNITY

RECIPROCITY

MICRO MESO MACRO

INTENSITY

Needs  for  Fruit  na  Vegetables  value  chain  (V.C.)  development  

Crops  moderniza7on  

Storage  centers  

Urban  Market  Centers  

Quality  control  

Produc7ve  Transforma7on  New    businesses  compel7ng  the  V.C.  

Technical  and  technological  assistance  

Training  for  employment  

Training  for  entrepreneurship  

Scien7fic  and  technologic  Research  

Marke7ng  

Territorial  Brands  

Commercial  Assistance  

Assistance  to  exort  

Promo7on  of  entrepreneurial  culture  

Social  Inclusion    

Cer7fica7on  

Min.  Agricoltura  

Min.  Economy  

Promo7on  of  Asociacia7ons  

Min.  Employment  

Min.  Educa7on  

Min.  Social  Affairs  

m1  

m2  

m3  

m4  

m5  

ɛ  1  

ɛ  2  

ɛ  3  

ɛ  4  

ɛ  5  

V2    

LEDA  

ADEL=  Instrument  FOR  PUBLIC  POLICY  

ɛ  =  mv2  

Financial managem

ent

shares

Projects

sale services

services contracts

Financial managem

ent

shares

Projects

sale services

services contracts

Financial managem

ent

shares

Projects

sale services

services contracts

Financial managem

ent

shares

Projects

sale services

services contracts

Financial managem

ent

shares

projects

sale services

services contracts To

tal  B

udget  

MORAZAN   AULEDA   REDASP   ACUDIR   VELEZ  

LEDA  sustainability:  Examples  

It  is  comprised  by  public  and  private  actors,  including  economic,  social,  cultural,  and  communitarian  sectors    

It  relies  on  an  ac7ve  and  proac7ve  balanced  execuUve  board,  with  strong  internal  cohesion  

It  works  for  enhancing    an    equitable,  human,  sustainable,  and  inclusive  development    and  the  Millennium  Goals  

It  is  able  to  implement    local  and  naUonal  government  strategies    

It  provides  comprehensive  services    to  the  local  popula7on  and  ins7tu7ons,    mainly  aimed  at  valorizing  the  socio-­‐economic  and  cultural  endogenous  resources,  and  par7cularly  to  disadvantaged  people  and  micro,  small,  and  medium  enterprises,  but  also  to  local  government,  and  local  NGOs  

It  has  a  medium-­‐term  financial  plan  that  ensures  self-­‐sustainability,  through  diversified  sources  of  income  

It  has  skilled  human  resources  to  implement  its  ac7vi7es  

It  is  networked  at  na7onal  and  interna7onal  level  with  similar  structures.  

The ILSLEDA main 8 principles for the success of a LEDA for human development and Millennium Goals

1  

2  

3  

4  

5  

6  

7  

8  

Quality Brand for LEDAs working for human development

Eurada - ILS LEDA are implementing the I-QUAL program certifying LEDAs’ performance are coherent with the human development objectives, with the support of the UNDP ART

Initiative

I-QUAL concerns 24

variables and 75

indicators and assigns

the

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0  

10  

20  

30  

40  

50  

60  

70  

80  

90  

100  

Area de excellence

Area of suficience

Area de risk

Social Capital Relational Capital

Technical Capital

Operational Capital

Portfolio Strategic Capital

Financal Capital

The  Leda  Profile  

LEDA CRITICAL

q  Territorial Approach

q  Strategic Approach

q  Managerial Approach

q  Operational Approach

q  Sostenibility Approach

Enfoque territorial

q  Vision Departamental: El departamento es la institucionalidad critica para la planificacion, donde hay masa critica de recursos para la competitividad sostenible y la economia de escala de los servicios

q  Articulacion departamental En funcion de la optimizacion de la cobertura d los servicios en todo el departamento, evitando fragmentacion, fracturas, falta de cobertura

Opciones. Una adel departamental, Una adel departamental con oficinas regionales Una red departamental de ADEL regionales Una ADEL bi-departamental, con los actores locales de ambas areas como socios (caso de exepcion)

Reference: http://www.ilsleda.org/usr_files/papers/7_how_to_define_040926.pdf

Enfoque estratégico q  Coherencia con estrategias departamentales

Adel como instrumento de elabopracion e implementacion de los planes departamentales

q  Articulacion de la politica publica Adel como instrumento de territorializacion, optimizacion y coordinacion de laìos programas publicos sectoriales

q  Desarrollo Humano Vision del desarrollo como compatibilizacion de competitividad (ventajas competitivas, equidad social, y proteccion del medioambiente)

Referencias: http://www.ilsleda.org/usr_files/papers/4_diagnostico.._296399.pdf http://www.ilsleda.org/usr_files/papers/16_resco_guidel_745358.pdf

q  Actualizacion del plan estratégico de la misma ADEL

q  Internacionalizacion Relaciones con otras ADEL (red nacional) Relaciones continuas con ILS LEDA

Enfoque gestional q  Clara definicion de los roles

Fuerte Junta Directiva (rol de direccion, orientacion y control) Excelente gerente (rol de ejecucion y artioculacion)

q  Adocion de un manual de gestion Para definir la normas de funcionamiento Referencia: http://www.ilsleda.org/usr_files/papers/14_leda_managem_066938.pdf

q  Auto-Evaluacion de las prestaciones Continuo monitores sobre resultados e impacto, a tarvés de analisis de la satisafccion de los usuarios y la certificacion (Programa IQUAL)

Referencias http://www.ilsleda.org/usr_files/papers/14_leda_managem_066938.pdf http://www.ilsleda.org/usr_files/documents/iqual_presentation-nov_2011_859291.pdf

q  Visibilizacion de la ADEL Continua atencion a la comunicacion y marketing de la ADEL (Relacion con consejos, gobierno, fiesta anual, radio, media etc.)

Enfoque operativo q  Definicion de los servicios

Analisis de de la demanda y oferta de los servicios de parte de los usuarios Opciones: Oferta baja o no calificada: ADEL cubre la demanda directamente Oferta calificada: ADEL como articulador/harmonizador de la oferta Oferta insuficiente: Una combinacion de las dos antacedentes

Referencia: Herramienta Ilsleda

q  Matriz operativa Clara definicion de la matriz servicios-usuarios-herramientas

Referencia: http://www.ilsleda.org/usr_files/papers/6_manual_operat_976867.pdf

q  Gestion de las competencias Internalizacion, a través del roaster de las comopetencias territoriales Externalizacion, a travès de la formacion de unidades especializadas

Sostenibilidad

q  Adopcion del plan financiero a 5 anos

q  Diversificacion de las fuentes de ingreso

q  Capacidad proactiva de gestion de fondos y negociacion Capacidad de formulacion e implementacion de proyectos Monitoreo continuo de las oportunidades Enredamiento internacional

Servicios de animación territorial e inclusion social

ý Diagnóstico  territorial para identificar las potencialidades de desarrollo económico;

ý Promoción de un clima favorable para a cultura empresarial

ý Promoción del asociacionismo y de agrupaciones de empresas en cadenas del valor

ý Apoyo a la población en desventaja ý Ventanilla para la promoción empresarial

de las mujeres

Servicios de apoyo a la planificacion

ý  Apoyo a la administracion publica ý  Priorizacion de proyectos

estrategicos, y gestion, incluso busqueda de financiamiento

ý  Cracion de banco de proyectos ý  Sistemas de información

Servicios a la producción

ý  Elaboración de estudios de factibilidad técnica y económica;

ý  Formación técnica, gestional y profesional

ý  Realización de acuerdos con los bancos para facilitar el acceso al crédito de la populación en desventaja; Fondo de garantias

ý  Promoción de la innovación e intercambio tecnológico

Servicios de promoción territorial

ý  Marketing del territorio ý  Marcas territoriales ý  Gestión de los proyectos estratégicos ý  Promoción de la internacionalización y

de las alianzas internacionales

SERVICIOS DE UNA ADEL PARA EL DESARROLLO ECONOMICO TERRITORIAL

Condiciones  mínimas  para    la  creación  de  una  ADEL    

1.  Interés  y  compromiso  de  los  actores  más  relevantes  en  un  trabajo  colec7vo:  Governación,  Alcaldías,    actores  produc7vos  (gremios  o  redes  de  campesinos,  artesanos,  Pymes,  servicios  turís7cos),  actors  sociales  (asociaciones  o  redes  o  ONGs,  de  grupos  comprome7dos  en  el  desarrollo  social  y  mediombiental),  a  través  de  la  conformación  del  Grupo  Promotor.  

2.  Definición  clara  de  los  obje7vos,  y  de  la  misión,  incluyendo  el  enfoque  combinado  de  la  compe77vidad,  sostenibilidad  social  y  medioambiental  del  desarrollo.  

3.  Definición  clara  de  las  ac7vidades/servicios  prioritarios.  

4.  Elaboración  de  un  plan  financiero  (costos  e  ingresos  anuales)  de  la  ADEL,  para  por  los  menos  tres  años,  con  indicación  de  los  recursos  comprome7dos  por  los  actores  locales,  y  ar7culación  entre  inversión  necesaria  y  plan  de  arranque.  

5.   Atender  un  territorio  con  sufiociente  masa  cri7ca  de  recursos  para  su  compe77vidad  sostenible.  (no  menos  de  200,000  Habitantes)  

Condiciones Instrumentos Interés y compromiso de los actores

•  Análisis de las necesidades prioritarias de los actores para el desempeño de su compromiso hacia el desarrollo del territorio

•  Síntesis de las demandas

Definición de los objetivos, y de la misión

•  Talller de identificación compartida y firmada de los actores locales, a través de una síntesis de las evaluaciones individuales

•  Diagnóstico de las potencialidades económicas del territorio, y de los obstáculos para su desarrollo (Método RESCO de ILS LEDA)

•  Taller de identificación de la misión, de acuerdo a los objetivos y al resultado del diagnóstico

Definición clara de las actividades

•  Análisis participativa de la demanda y oferta de servicios de parte de las entidades locales, a travès de encuentros con los usuarios y los provedores de servicios (Método TESSY de ILS EDA)

•  Identificación de las pioridades Plan financiero •  Compromiso en recurso de los actores locales  

•  Análisis costos, de acuerdo al desempeño de las actividades priorizadas  

Instrumentos  para  crear  las  condiciones  minimas  

www.ilsleda.org

www.ideassonline.org

Thank  you  !!!!!      

GIANCARLO  CANZANELLI    

ILS  LEDA  CEO      

ilsleda@ilsleda.org      

www.ilsleda.org      

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