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
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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
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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
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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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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
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Thank you !!!!!
GIANCARLO CANZANELLI
ILS LEDA CEO
www.ilsleda.org
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