Local Economic Development Strategy
Phase 1: Organize the LED Team
STAKEHOLDER ANALYSIS - Identify the stakeholders. Ensure the Private Sector is there
A key step in this stage is to identify the stakeholders through a stakeholder analysis process. A stakeholder analysis is a helpful tool to determine; (i) who are the various parties that are impacted by local economic development; and (ii) how best to secure cooperation and support to lay the social foundation for success from the beginning.
The stakeholders need to be involved throughout the LED process to continue to ensure
ownership and buy-in.
Getting commitment and consensus and building trust Identifying the stakeholders (Stakeholder Analysis) Forming a core team and stakeholder advisory group Determining organizational capacity and if outside help is needed Planning the strategic planning process
Phase 2: UNDERSTANDING THE LOCAL ECONOMY – CONDUCTING A LOCAL ECONOMIC ASSESSMENT
This stage entails the gathering and analysis of information that provides useful
perspectives for local economic planning. Understanding the total economy is an
important step. Typically, the economy is solely viewed through the lenses of the formal
economy mainly because it is easily measured (e.g. Tax receipts, business permits).
The aim of the local economic assessment is to identify the community's strengths and
weaknesses. This can include human resource capacity / human capital, local
governance authority's 'friendliness' to all types of business activities from informal to
corporate, and the opportunities and threats facing the local economy.
Some key information that the project team will use in assessing the local economy:
1. Economic Structure - size and sectoral structure of the economy and its outlying communities;
2. Local Resources - territorial-specific factors which influence competitiveness, including resources and market access, property, transport, and other infrastructure;
3. Human Capital - characteristics of the local population and labor force, including employment status and education levels;
4. Institutions - ‘soft’ determinants of competitiveness, which relate to the quality and effectiveness of government and informal institutions (e.g. Investment climate information) and will show how the government treats its business community; and
5. Regional and National Information - information on what is happening in other areas that impact on the community.
ASSESS COMPETITIVE ADVANTAGE AND OPPORTUNITIES FOR COLLABORATION
Key in this stage is determining the community’s competitive advantages as well as opportunities for collaboration. This requires looking at neighbouring communities or others in the region similar in size or economic function in order to understand the differences between Karibib’s community and others and determine what are strengths as well as areas of weakness. Identifying opportunities to collaborate will help address local issues more effectively and increase national and global competitiveness. Identify opportunities for complementary or cooperative economic development between municipalities.
ANALYZE THE DATA
The project team will use a Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis tool. The SWOT analysis will be used by the project core team together with other key stakeholders identified during stakeholder analysis. It will integrate and summarize information, perceptions on the local economy from the standpoint of overall competitiveness.
A community’s competitiveness is a function of internal (strengths, weaknesses) and external (opportunities and threats) factors. The analysis will help determine the opinions and perceptions of the community, identify and project future trends and issues for LED strategy development, and define appropriate policy responses that build LED opportunities. The results of the SWOT analysis will be most helpful in defining the focus of the LED Strategic Plan. The issues identified will inform the crafting of the
vision, goals, objectives and design of programmes and projects that will maximize the strengths, address the weaknesses, take advantage of the opportunities and mitigate threats.
Phase 3: Preparing the LED Strategy
Identify LED vision,goals, objectives & actions Consider gender equality, environmental sustainability & poverty reduction
Phase 4: Implementing the LED Actions
Are LED actions market driven? What can we learn from other experiences, best practices?
Phase 5: Reviewing and Revising the LED Results
How will results be monitored and evaluated? How will the action plan be adjusted?
The final phase of the plan gives us an opportunity to re-evaluate the priorities and course-correct based on past successes or failures. To track the results we will implement a balanced score card
Stakeholders Engagement Plan