public policy for local economic development

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Public Policy for Local Economic Development - An International Comparison of Approaches, Programs and Tools -

Prepared by Christopher Bryant, Professor

and Sylvain Cofsky, Doctoral Candidate

Université de Montréal

For Economic Development Canada

March 31st 2004

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Table of Contents List of Acronyms ......................................................................................................................... 3

EXECUTIVE SUMARY.................................................................................................................. 5

1. Introduction .......................................................................................................................... 18

1.1 CONTEXT OF THE STUDY.................................................................................................18

1.2 THE MANDATE OF THE STUDY .........................................................................................18

1.3 DEFINITIONS...................................................................................................................19

1.4 CONCEPTUALISATION OF LOCAL ECONOMIC DEVELOPMENT .............................................20

1.5 METHODOLOGY ..............................................................................................................22

2. Analysis by Jurisdiction .............................................................................................. 27

2.1QUEBEC (BENCHMARK)....................................................................................................27

2.2 ONTARIO ........................................................................................................................29

2.3 BRITISH COLOMBIA .........................................................................................................31

2.4 NEW BRUNSWICK ...........................................................................................................33

2.5 FRANCE .........................................................................................................................35

2.6 THE EUROPEAN UNION ...................................................................................................37

2.7 AUSTRALIA (NEW SOUTH WALES REGION) .......................................................................39

2.8 OREGON ........................................................................................................................42

2.9 NEW HAMPSHIRE............................................................................................................44

2.10 VERMONT.....................................................................................................................46

2.11 MAINE ..........................................................................................................................48

3. Synthesis of the Analyses by Jurisdiction ......................................................................... 50

3.1 THE JURISDICTIONS CATEGORIZED ON FIVE DIMENSIONS DEALING WITH THEIR POLICIES

AND PROGRAMS REGARDING LED.........................................................................................50

3.2 THREE TYPES OF PUBLIC POLICIES RELATED TO LED......................................................56

4. Emerging Issues and Propositions for Innovative Programs and Tools........................ 59

4.1 EMERGING ISSUES ILLUSTRATED BY INNOVATIVE PROGRAMS AND TOOLS.........................60

4.2 CHALLENGES AND OPPORTUNITIES IN QUEBEC FOR POLICIES AND PROGRAMS IN LOCAL

ECONOMIC DEVELOPMENT....................................................................................................71

5. Bibliography .......................................................................................................................... 76

5.1 DOCUMENTS...................................................................................................................76

5.2 WEB SITES.....................................................................................................................81

APPENDIX AN OVERVIEW OF POLICIES AND PROGRAMS BY JURISDICTION ................ 84

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List of Acronyms AFFF Agri-Food Features Fund (British Columbia) BNB Business New Brunswick (ENB - Entreprises Nouveau-Brunswick) (New

Brunswick) CAP Common Agricultural Policy (PAC – Politique agricole commune) (European

Union) CEDA Community Economic Development Agency (ADÉC - Agence de

développement économique communautaire) (New Brunswick) CEDC Community Economic Development Corporation (CDÉC – Corporation de

développement économique communautaire) (Quebec) CFDC Community Futures Development Corporation (New Brunswick) (Société

d’aide au développement des collectivités – SADC – Québec) CIP Community Initiatives Program (PIC - Programme d’initiative communautaire)

(European Union) CSBIF Community Small Business Investment Funds (FCIPE - Fonds

communautaires d’investissement dans les petites enterprises) (Ontario) DATAR Délégation à l’aménagement du territoire et aux régions (Delegation for

Regional Development and Regions) (France) LED Local Economic Development CED Community Economic Development DECD Department of Economic and Community Development (Maine) DED Department of Economic Development (Vermont) EFRD European Fund for Regional Development (FEDER - Fonds européen de

développement régional) EOGAF European Orientation Guarantee Fund for Agriculture (FEOGA - Fonds

d’orientation garantie en agriculture) (European Union) ESF European Social Fund (FSE - Fonds social européen) ETD Entreprise territoire et développement (Enterprise, Territory and

Development) (France) FIV Fonds interministériel à la ville (Interministerial Fund for the City) (France) FNADT Fonds national à l’aménagement et au développement du territoire (National

Fund for Regional Planning and Development) (France) JEDI Joint Economic Development Initiative (ICDE - Initiative conjointe de

développement économique) (New Brunswick) HUD Housing and Urban Development (United States) LAG Local Action Group (GAL - Groupe d’action locale) (European Union) LEADER Initiative communautaire européenne de développement rural (European

Union) LEC Local Employment Centre (CLE - Centre local d’emploi) (Quebec) LOADT Loi d’orientation pour l’aménagement et le développement du territoire

(Territorial Planning and Development Orientation Law) (France) LPS Local Production System (SPL – Système productif local) (France) MEDT Ministry of Economic Development and Trade (MEDC – ministère du

Développement écnomique et du Commerce) (Ontario) MRED Ministry of Regional and Economic Development (MDER – Ministère du

développement économique et regional) (Quebec) NAS Native Affairs Secretariat (SAAO - Secrétariat des affaires autochtones)

(Ontario) NIT New Information Technology OMAF Ministry of Agriculture and Food (MAA – ministère de l’Agriculture et de

l’alimentation) (Ontario)

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OSTAR Ontario Small Town and Rural Economic Development Program (DCRPLO - Développement des collectivités rurales et des petites localités) (Ontario)

RCER Regional Conferences of Elected Representatives (CRE – Conférence régionale des élus) (Quebec)

RDC Regional Development Council (CRD – Conseil régional de développement) (Quebec)

RDF Regional Development Fund (FDR - Fonds de développement régional (Quebec)

RDS Regional Development Subsidy (PAT - Prime d’aménagement du territoire) (France)

RNP Regional Natural Park (PNR – Parc naturel regional) (France) SADC Société d’aide au développement des collectivités (Quebec) (see CFC –

Community Futures Corporations) SRPC State-Region Plan Contracts (CPER - Contrat de plan État-Région) (France) UED Urban Economic Development Branch (Ministry of Economic Development

and Trade) (DDEU - Direction de Développement économique urbain, ministère de Développement économique et du commerce) (Ontario)

VEDA Vermont Development Authority (Vermont) WIF Workers Investment Fund (FIT - Fonds d’investissement des travailleurs)

(Ontario)

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EXECUTIVE SUMARY Public Policy for Local Economic Development

- An International Comparison of Approaches, Programs and Tools - 1. Introduction Context of the Study This study is positioned in the dynamic and changing context in which the role of central states and their internal jurisdictions has been increasingly recognized in processes of Local Economic Development (LED). The roles of central states in relation to LED have been numerous and have evolved significantly. But the rhythm of that evolution has varied depending upon the jurisdiction, and the roles played in the context of local development have certainly not been uniform. Mandate The mandate of this study is to highlight the different types of policies and programs pursued in a certain number of jurisdictions of industrialized countries regarding Local Economic Development and to identify their approaches and the emerging issues. This task has been undertaken for a relatively recent period of time (the last five years), while acknowledging that certain policies and programs have a longer and therefore a richer past (in particular the LEADER program of the European Union). Definitions Three concepts are defined from the outset:

A policy is a statement that describes an ambition, an orientation and objectives. A program is generally the object of an annual budgetary program planning that permits the financing of actions that are often related to criteria identifying target clienteles or specific localities for intervention; depending on the program, these criteria may be more or less precise. The general definition of Local Economic Development (LED) retained emphasizes the importance of actor-based processes in a locality that are aimed at achieving a sustainable socio-economic development of their community, even if the main objective is oriented to the development and reinforcement of economic activities.

Conceptualisation The study is particularly interested in policies and programs that imply concerted interaction with local actors or a targeted intervention on local actors in the context of LED. The emerging “model” of Local Economic Development is characterized by two major components:

1. The environment in which LED is undertaken; and 2. The components of economic activity, i.e. the different components of the business

or, more generally, of the project.

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This model serves as a point of reference with which different programs may be compared. Methodology The main stages of the approach are summarized as follows: 1. A certain number of jurisdictions, either industrialized countries or lower level jurisdictions

in federal jurisdictions were selected. Eleven (11) jurisdictions were retained: Quebec (as a reference point), British Columbia, Ontario, New Brunswick, Oregon, Maine, Vermont, Hew Hampshire, the State of New South Wales in Australia, France and the European Union;

2. The development of a conceptual framework for LED to serve as a model against which the different experiences could be compared and contrasted;

3. The development of an analytic grid to help in collating the information concerning the different policies and programs; this grid was based on the conceptualization of LED and on several broad questions to which an answer was desirable in the context of the mandate of the study;

4. An initial research on the Internet sites of the chosen jurisdictions, followed by contacts with resource people (by phone, mail or face-to-face, depending upon the jurisdiction) in order to obtain more detailed information regarding processes and issues.

5. The broad questions (Table I) that guided our analysis of the information collected have been classified into two categories: i) questions that imply above all actions at the level of ministries and state agencies (e.g. various forms of inter-ministerial cooperation and consultation); and ii) questions specifically concerning relationships between the state and local actors.

Table 1 The Broad Structuring Questions of the Study

A. Questions that imply mainly actions at the level of state ministries and agencies

• The emphasis given to engines of economic growth in the area (not only in LED) • Existence of a precise statement of public policy (holistic, sector-based, or thematic) • Allocation of responsibilities between ministries and agencies • Priority given to assessment of LED

B. Questions related more specifically to the links between the state and local actors • Locality or area-based development: holistic or sector-based • The nature of innovative tools and approaches and their implications for the roles and

actions of states (their ministries and agencies) 2. Analysis by Jurisdiction A description of the 11 jurisdictions retained for the study is presented under three headings:

1. A short presentation of the jurisdiction; 2. A statement of highlights, with an emphasis on innovative programs and tools; 3. The analytic framework or grid, reflecting our conceptual reading of the strengths and

weaknesses, opportunities and threats confronted by the policies and programs relating to LED in each jurisdiction.

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3. Synthesis of the Analyses by Jurisdiction The synthesis of policies and programs in the different jurisdictions is undertaken in two stages: 1. A categorization of the jurisdictions on each of five dimensions 2. The creation of a typology of the jurisdictions to produce three categories. Quebec is

incorporated into this analysis and synthesis, which allows Quebec to be positioned in relation to the broad structuring questions and the emerging issues.

Five dimensions to characterize policies and programs regarding LED The five dimensions are related to the broad structuring questions. They are: 1. The global policy approach in relation to LED. Two types of policy approach to LED are identified:

A. A first one aimed at reducing disparities between areas and more generally regional development (France; European Union; Quebec; New Brunswick). Reduction in regional disparities has for long underpinned regional development policies in France and continues to do so in the context of the more recent policies focused on LED. For the European Union, the LEADER program is also focused on the same objective. Quebec and New Brunswick are also placed in this category because of the importance attached to the issue of regional disparities.

B. A second category is above all else oriented to economic growth of the whole

jurisdiction particularly through supporting the economic engines of growth (New South Wales; Ontario; Oregon; Vermont; Maine; New Hampshire; British Columbia).

These jurisdictions have centred their policy of area-based development on an approach that focuses on the global growth of their economy. In part, the actors count on positive fallout from the economic growth of the main metropolitan regions or growth engines to help those regions that are in difficulty.

2. The nature of the role of the state in relation to LED processes. Four types can be clearly defined:

A. The state in a permanent accompanying role operating through local structures of consultation (Quebec; New Brunswick).

The emphasis is placed on approaches involving a more or less permanent accompaniment of the local actors in their processes, particularly via local or regional structures for dialogue and development. There is a commitment through the state’s representatives and agents to maintain a presence in a more or less permanent way.

B. The state intervening on an ad hoc basis or in reaction to a demand or need

(reactive) (Ontario; British Columbia; New South Wales).

A whole range of services of assistance is made available at the request of local actors. It is a relatively reactive approach.

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C. The state as financial support for programs and projects developed by

intermediary structures (New Hampshire; Maine; Vermont).

These jurisdictions offer services to local actors principally on demand, but in this case, the services are more of a financial nature (even if the financial assistance is not very important in terms of amounts), usually through competitions. It is also a very reactive approach.

D. The state as supplier of resources (methodological, pedagogical, information) (France; Europe; Oregon). These jurisdictions offer a large range of services in terms of information and tools. The state as a supplier of resources does not base its assistance on a local structure of dialogue and development to support the development of the area. Instead, it offers fundamental services that act as an additional decision support to local actors responsible for LED.

3. The emphasis given to the territorial or area-based dimension. Two categories can be identified:

A. The locality and its local actors as the basis of the intervention (European Union; France; Quebec; New Brunswick).

In this category of jurisdictions, the territory or locality more or less occupies the centre stage on which the development project is based.

B. Local actors as the basis of intervention (Ontario; British Columbia; New South

Wales; Vermont; New Hampshire; Maine; Oregon).

The focus is on actors who obviously work and live in the locality, but the locality is not precisely delimited and does not serve as the central element in the development strategy.

4. The holistic dimension (the integration of the economic dimension with the other dimensions of development of the territory). Three categories can be defined:

A. A relatively holistic approach (European Union (LEADER program); France; New Brunswick; Quebec).

Some programs deal with territories or localities in a relatively transversal and global way, i.e. they do not target a particular sector, a type of population or a particular theme. This approach is closely related to the one based first and foremost upon the notion of territory or locality.

B. An approach based more on economic development (Ontario; British Columbia;

New South Wales).

In this approach, the economic dimension (i.e. the development of economic activities through the development and reinforcement of business) clearly dominates. These jurisdictions place much emphasis on the engines of economic growth in their territory.

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C. An approach based on economic development, but with an important social dimension (Vermont; Maine; Oregon; New Hampshire).

Social aspects (everything that deals with the social and cultural vitality of a community) play a more prominent role. But the approach is not holistic, and the different tools and programs are either economic or social, but rarely transversal.

5. The importance given to processes involving local actors. Two categories can be defined; a third includes one jurisdiction that is more difficult to categorize:

A. An emphasis placed on strategic planning processes and actor mobilization (European Union; France; Oregon; Ontario; New Brunswick; Quebec).

The jurisdictions in this category concentrate their efforts, which are principally financial in nature, on strategic planning processes in the localities concerned.

B. An emphasis placed on action (projects, their financing) (Maine; Vermont; New

Hampshire; New South Wales)

These jurisdictions do not intervene in the stages of territorial construction and development, opting rather for a less “ideological” approach in relation to LED by financing individual actions and projects.

C. Cannot be classified (British Columbia)

It is difficult to categorize British Colombia on this dimension. This jurisdiction has placed its emphasis more on efforts, which are not necessarily financial, encouraging either business development through tax advantages for private capital, or the “harmonious” development of natural resources or aboriginal communities.

Three types of public policies related to LED Using these five dimensions, three groups of jurisdictions are produced, each characterized by similar approaches and interventions in relation to LED.

A. The state as proactive leader in Local Economic Development (Quebec; New Brunswick; European Union; France)

In this category, the state is identified as a proactive leader in local development. The intervention of the state is more related to LED based on accompaniment of the actors of a locality through a planned, sustainable and global intervention that incorporates all socio-economic dimensions. There are slight differences in approach, but all of these jurisdictions have a proactive role regarding LED.

B. The state as support to economic development that is sector-based or thematic

(Ontario; New South Wales; British Columbia)

The states in this category have an approach regarding economic development that can be proactive, but their approach is significantly more traditional, i.e. it is not based on a territory, is sector or thematic in nature, and is focused on actors wherever they are located. The role and importance given to the strategic planning process, even though varying from one jurisdiction to another, are generally not a determining factor.

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C. The state as source of financing for actions related to economic or social

development (Maine; Vermont; New Hampshire; Oregon) In this category, the role of the state is not based on the same ideology. The state rarely intervenes in the principal structuring steps for LED, and does not play a significant role in planning. However, it remains responsive to requests for support for financing actions related to economic development, or a more socially related development, with the exception of Oregon where a range of more systematic services is offered.

4. Emerging Issues and Propositions for Innovative Programs and Tools Emerging issues have been identified that are naturally related to the broad structuring questions that were used in the study. These issues are presented in Table II and are illustrated where appropriate by reference to innovative tools and approaches. In conclusion, the constraints and opportunities for the integration of these tools and approaches are discussed in the particular context of Quebec, where the roles of the state have been evolving in the direction of the emerging roles discussed earlier. The issues are classed into two broad categories: A. Issues that concern state ministries and agencies more directly; et B. Issues that involve local actors and their territories more directly.

Table II Emerging Issues for Intervention in

Local Economic Development

A. Issues for state ministries and agencies • The new emerging roles of the state in LED • Continuity and coherence in the support for and capacity building for local

actors • The assessment of efforts (programs) in a context where responsibilities are

increasingly shared • The global effort devoted to economic development across the whole

jurisdiction B. Issues for localities and local actors

• Organization of the integration of the different dimensions of local development, as well as the representation of the different segments of actors and interests

• The relevance and the establishment of holistic area-based processes in environments other than resource regions, outlying regions and rural areas with their networks of small and medium-sized towns

• The relevance, the appropriate formulation and the integration of innovative tools and approaches in relation to the emerging issues for policies and programs of states, their ministries and agencies, particularly in relation to Quebec.

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Emerging Issues Illustrated by Innovative Programs and Tools A. Issues for State Ministries and Agencies A.1 The New Emerging Roles of the State in Relation to LED The roles that emerge from the analysis of different innovative programs and approaches are those of: educator, guide, counsellor, facilitator and source of strategic information. The emergence of these roles brings with it an important challenge because while they necessitate a strengthening of local actors’ capacities, at the same time they require greater awareness, an approach that is more sensitive and a more constant presence on the part of the agents of the state. It is noteworthy that Quebec is in category A of the typology of jurisdictions, a category characterized among other things by a permanent accompanying role, which a priori puts it in a privileged position to continue along the path of this type of transformation. In assuming these roles, some jurisdictions stand out because they offer a set of effective tools to local actors (e.g. the LEADER program of the European Union, Oregon, and Ontario). These tools can be made available to all actors over the Internet, and can also be accompanied by advice when requested or in a more systematic fashion (e.g. how to initiate and maintain a strategic planning process for local development). The approach involving making available a set of tools for local actors appears as an essential component of any policy of support for LED. At the least, these tools can be made available to all actors, via the web site of an agency, a ministry, or an observatory. All these approaches appear to be reasonable for Quebec. Moreover, these tools can be sponsored by a range of actors, from the same level of government, or by the federal and provincial levels. There is also the possibility of making these tools available through ‘gateways’ or entry points associated with different regions or localities, and with different partners coming from the different levels of government and the private and community sectors.

A.2 The Continuity and Coherence of Support, and Capacity Building for Local Actors It is impossible not to recognize that state interventions have often changed – in terms of their orientations, responsibilities and the importance of the allocated budgets. Many such changes were noted among the jurisdictions retained for this study. It is obvious that such changes can create uncertainty and a level of complexity that is difficult for local actors to handle, especially if they have not yet reached a level of autonomy that allows them to put such changes into their proper context. Furthermore, several ministries usually share an interest in local development. This situation raises the whole issue of cooperation and consultation between ministries and agencies. In the jurisdictions analysed, some innovative approaches were identified. In particular, the Community Solution Teams of Oregon and the JUMP Teams of Ontario are noteworthy, implying formalized consultation between ministries and agencies in order to respond to the development problems and opportunities raised by local actors. A.3 The Assessment of Efforts (programs) The importance of being publicly accountable for the way in which they spend taxpayers’ money is now a leitmotiv for most governments. Furthermore, the assessment of efforts is

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also useful in program management, and also for appreciating the overall results of efforts devoted to public programs. Paradoxically, aside from the internal assessments by ministries and agencies responsible for programs, there are very few overall assessments of different programs that are actually made public. For some jurisdictions, overall assessment is not in itself a priority, while for others, some programs are subjected to systematic assessment that is obligatory and planned on a periodic basis (e.g. LEADER and even the RNPs in France). The assessment of interventions in LED present some major challenges. One of the reasons stems from the fact that responsibilities are increasingly shared in the context of the emerging roles, particularly within federal structures. In terms of assessment of programs at the local and regional scale, the European approach appears to be the most innovative. In all the programs of the European Union, right from the beginning financing is set aside for undertaking assessment on a systematic basis, generally by third parties, at different moments in a program’s ‘life’. Tools are also provided by the LEADER Observatory based on a continuous assessment approach. This approach implies monitoring and strategic scanning, capable of supplying the strategic information that will permit local actors (and also states) to refine and improve their programs and actions. The whole issue of assessment is relevant for Quebec, where the division of responsibilities between different agencies and ministries and governmental levels has become progressively more complex throughout the 1990s. Such an environment suggests the potential, despite the difficulties, for setting up partnerships between the different levels of government. A.4 The Overall Effort for Economic Development across the Whole Area of a Jurisdiction The overall effort for economic development deals potentially with the whole area of a jurisdiction (metropolitan centres, rural regions, peripheral regions, sectors), which makes it difficult to assess the overall results of a program to encourage economic development of a territory. In particular, non area-based policies, such as supporting certain ‘clusters’ such as the aerospace and pharmaceutical industries or life sciences more generally in certain jurisdictions, camouflage policies that in effect have a direct impact on a limited number of areas, notably metropolitan regions. However, there is a growing interest in certain jurisdictions for developing different types of clusters or sets of economic activities that can be developed in rural areas and within the context of systems of small and medium-sized towns (e.g. the State of Maine). Furthermore, several jurisdictions have been studying other regional systems, such as regional innovation systems (the European Union) and local production systems (France), which may also benefit networks of small and medium-sized urban centres. It is important to note that an emphasis on economic engines of growth does not exclude LED in non-metropolitan regions. LED furthermore is not simply a set of efforts that should be appreciated just from the perspective of the whole area of a jurisdiction, but also as a set of efforts and results that must be appreciated from the perspective of each local community and area concerned.

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B. Issues for the Localities and Local Actors B.1 Integration of the Different Dimensions of Local Development, as well as the Representation of the Different Segments of Actors and Interests Local economic development arises from broader processes, relating to all the dimensions of development of an area. Several jurisdictions emphasize that they undertake LED while also pursuing social development and a higher quality of life for residents (e.g. the American states). Clearly, LED is based on other aspects of the community, such as the educational system, the highway infrastructure and local culture. The actors directly involved in LED thus need to enter into communication on a regular basis with actors who represent the other dimensions of an area’s community. There is no unique solution for this, because the specific make-up of each area requires a specific analyse and diagnostic. The representation of the different segments of actors and interests is an important component of this issue that concerns the integration of the different dimensions, particularly in jurisdictions where there is a certain shift towards a greater implication of elected officials in local development organizations (e.g. the imminent Regional Conferences of Elected Representatives (RCERs) and the Local Development Centres (LDCs) in Quebec, and the pays in France). How can productive relationships between local and regional elected representatives and other local actors be achieved in the processes of Local Economic Development, especially with those actors who have their roots in civil society? Necessarily, this implies the need to take participative processes into account, which paradoxically is not the case with some of the approaches enumerated earlier, i.e. the RCER and the pays. The tools presented to assist municipalities and other local actors by the State of Oregon and the LEADER Observatory of the European Union to assess community and institutional capacity are an interesting set of tools for understanding the obstacles and the potential for setting up such processes. B.2 The Relevance and the Establishment of Holistic Area-Based Processes in Other Types of Area The typology of jurisdictions revealed one group of jurisdictions, including Quebec, for which there is a holistic approach, associated with a clear territorial basis for LED, the emerging roles for the state and a relatively standardized approach, in terms of the organization of LED. In terms of a global approach, Quebec has already experienced the development of innovative tools, in terms of organization of LED, notably in the SADCs (Sociétés d’aide au développement des collectivités) and later on, the CLDs. If it is accepted that this approach to LED is the one to encourage, one of the questions that arises is: how can this global approach to LED that is pursued especially in programs for rural areas be encouraged and transferred to cities and metropolitan regions? The territorial approach described above stands out as an approach that allows an easier integration of LED into an area and a more effective mobilization of local and regional actors. The desire to transfer this approach to urban areas is not new (e.g. the CEDCs or Community Economic Development Corporations in Montreal in the domain of the social economy and socio-economic development). However, while their process is area-based, with the responsibilities for managing the Local Development Centres that they have been given, not all CEDCs have been able to integrate the world of business into their processes or their boards of directors.

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The global approach is particularly present: 1. In those programs centred on an area (e.g. LEADER, the RNP and pays in France,

and the programs in which the CEDAs (Community Economic Development Agencies) in New Brunswick are involved); and

2. Where there is a true consultation between the different agencies and ministries aimed at coordinating their actions in collaboration with local organizations, including local communities (e.g. Oregon and Ontario, even if in these two cases there is no real systematic program of intervention across the jurisdictional area).

Challenges and Opportunities in Quebec for Policies and Programs in Local Economic Development Our starting point or conceptual choice in terms of a proposition is that any public sector or political actor, in order to optimize both its own contribution and the overall LED process, must position itself, and clearly identify where it stands, in the context of the emerging roles of a central state. This implies that public sector actors (not all of them, but certainly some of them):

1. Will increasingly assume the role of accompanying guide, educator and facilitator in relation to the local actors involved in the different steps of LED;

2. Will assume a role that is more proactive than reactive, in all aspects including service delivery;

3. Must also involve themselves more strongly in collaborative arrangements, including partnerships, with other private and public actors, in order to help local actors achieve their objectives;

4. The approach that should be encouraged must be clearly territorial or area-based and holistic and be based on an adequate representation of the different segments of interests in the context of holistic local economic development processes in which

5. The development of a territorial or area-based diagnosis and a real participation of relevant local actors are encouraged.

Two main components of LED are identified :

A. The environment of LED.

The key components of this are: the local and regional actors and all that pertains to capacity building for local and regional actors to act with effectiveness in the construction of processes that lead to actions to respond to the needs of local communities in terms of economic development, always in a realistic manner. The following approaches and tools are among the most promising in the context of the emerging roles for public sector actors in relation to support for LED:

a. Offering methodological and/or technical tools that are accessible and easily usable by local actors (e.g. tools in the form of accessible documents on well identified web sites). The tools may be of many types but among those that appear the most important to include are educational and methodological tools dealing with the processes of local economic development, tools for carrying out a sound local diagnosis, and finally, tools to help lay out a schedule for the evaluation or assessment of the processes and practices of local development;

b. Counsellors available for an area or a set of areas capable of undertaking a follow-up and acting as a guide throughout the local processes. Despite the great diversity of territories in Quebec, public sector actors could provide appropriate instruments

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of the type that could be found in an observatory to help in the collection, collating and analysis of the results of the different processes in order to give value-added to local actors;

c. Information available to local actors on their own local territory, with the potential use of distance training sessions in which actors from other jurisdictions are also involved.

In the above, several of the roles and tools identified as promising centre on the idea of a territorial observatory, which represents an opportunity for public sector actors particularly in collaboration to contribute to the implementation and operation of such a tool to assist territories or areas. In terms of the processes of strategic thinking and action themselves, the approaches and tools that seem most promising are:

a. Placing an emphasis on the duo territory–actors. The definition of a territorial project should be become a priority and an essential step for every new programming of local policy by local actors.

b. Providing support to organizations to ensure that they position themselves effectively in the processes of overall development of their territory, taking account of the local and regional specificities in the construction of the organizations, and the identification of their roles and functions.

c. An encouragement to the organizations to initiate and maintain effective communications with all the other actors in their area, including those dealing more particularly with the other dimensions of local development (e.g. social development). To achieve this, it is sometimes desirable to “force” somehow the situation by proposing, within the framework of certain programs, measures to encourage taking into account all the actors and relevant sectors;

d. Encouraging the organizations (and their municipalities) to reflect on their relationships with neighbouring areas in order to create cooperative and partnership approaches, e.g. as with the French movement towards inter-communality. Public sector actors can therefore play a role as promoter of good practices between neighbouring municipalities. Once again, this brings up the two elements noted earlier: the territorial project and programs that encourage a broader partnership.

B. The components of business. While this component has generally been treated by upper levels of government, i.e. supra regional or supranational levels, many local and regional organizations are also involved in these business-related domains. On the other hand, certain activities of local organizations can be supported by ministries and their agencies (e.g. assistance in the creation of working capital to support business start-ups or business projects). It is also possible that resource centres or offices that are the responsibility of upper level authorities (e.g. the Small Business Centres in Ontario, and the regional service offices of the State of New South Wales in Australia) become an important component of a local economic development strategy without there being a formal role for local actors within those offices. The approaches and the tools that seem most promising in these domains are:

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a. Consultation processes at the local or regional level by ministries or agencies that deal with one or several domains of business development (e.g. labour training, access to capital, etc.);

To be effective, this consultation must integrate two components:

i. A willingness for real consultation between the different ministries and

agencies at the macro scale (e.g. similar to that of the State of Oregon); and ii. Creating a framework for consultation groups between ministries and

agencies at local and regional scales. For Quebec, it would be desirable that these consultation “teams” could also directly involve local and regional actors rather than creating “teams” composed only of professionals from the ministries and agencies.

Public sector actors in Quebec could contribute to this in two ways : first, through the contribution in terms of service delivery (tools for observing, constructing and assessment of territories) and second, through a direct and proactive involvement of their different regional offices.

One of the greatest challenges is found in jurisdictions where there are two levels of government, each possessing responsibilities that can overlap, i.e. in federal jurisdictions. Ideally, the consultation teams should integrate representatives from both levels of government.

b. By recognizing the necessity of an intervention both of local and regional actors and

actors from the upper level (the central state), it would be important to ensure systematic cooperation between local and regional actors and the state. The example of the contract of the City of Montreal provides a good illustration of the form that cooperative approaches and partnerships between the state, local municipalities (cities) and local actors might take.

c. The tools and efforts to help undertake a territorial diagnosis in terms of the state of

“health” of each of the components of the business and its environment. The roles of counsellor and that of acting as a source of strategic information require a concerted effort by central states. It is recommended that a jurisdiction create, as noted on several occasions in this report, an observatory aimed at development of its territories. This observatory could play a pertinent role in the preparation of territorial diagnoses, as well as a resource and advising centre for the different ministries and agencies and for local and regional actors. It can also provide an opportunity for a joint initiative between two levels of government within the framework of a federal structure.

In such a structure, the following functions might be located:

• Tools to assist local and regional actors concerning different dimensions of LED process;

• Relevant documentation on LED, potentially available on a web site (see Oregon and Ontario);

• A research function, notably how to undertake a territorial diagnosis; • A scanning function (economic trends and events, policies, …); • A training function; • An advisory function.

The combination of functions actually included would require dialogue with all local and regional actors.

17

*

* * Through the analysis of the emerging roles of a central state in relation to LED, it has been possible to better understand the evolving functions that public sector and political actors might assume for Quebec’s regions. The key words of this intervention are: diagnostic, territory, holistic, proactive, accompanying guide, methodology, counsellor, and assessment. Given the history of previous interventions in Quebec, the context for refining and developing innovative programs is very favourable. One of the key conditions for success will be the construction of partnerships between levels of government, a condition that is necessary for Quebec’s economy and society to be able to benefit fully from the innovative approaches and tools in LED.

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1. INTRODUCTION

1.1 Context of the Study Over the last 25 years, different forms of local development have emerged, including Local Economic Development (LED). These various approaches to the socio-economic development of localities took root in North of America since the 1960s. The interest accorded to the different processes involved has been increasing, and this is undoubtedly related to the observation of the redefinition of the role of the state in the management of national economies and societies. The role of local and regional actors in the development of their localities has been increasingly recognized, and the political discourse and that of local and regional actors converge in recognizing that the processes involved in Local Economic Development have had, and are still having, a significant impact on the development of localities. In the course of the last 25 years, the roles of central states in relation to LED have been various and they have evolved in a significant way. But the rhythm of that evolution varies depending upon the jurisdiction, and the roles played in the context of local development have certainly not been uniform. Overall, the types of central state interventions concerning LED in industrialized countries have been very numerous, ranging from supporting the training of Local Economic Development officers to financing, wholly or in part, LED organizations, to assistance targeted to certain components of LED, to accompanying Local Economic Development officers in these targeted actions, and to accompanying local actors in the more global processes aimed at the economic development of their locality. It is within this very dynamic and relatively complex context that this present study has been undertaken.

1.2 The Mandate of the Study The mandate of this study is to highlight the different types of policies and programs pursued by a certain number of jurisdictions of industrialized countries regarding Local Economic Development and to identify their approaches and the emerging issues. This task has been undertaken over a relatively recent period of time (the last five years), while acknowledging that certain policies and programs have a longer and therefore a richer past (in particular the LEADER program of the European Union).

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1.3 Definitions Policy: A policy is a statement that describes an ambition, an orientation and objectives. At various points in this study, it will be noticed that not all programs are based on a clearly defined policy statement. Program: A program is generally the object of an annual budgetary program planning that permits the financing of actions that are often related to criteria identifying target clienteles or specific localities for intervention; depending on the program, these criteria may be more or less precise. Certain development tools, for example financing tools, may even be considered fully-fledged programs in themselves. Within this study, we are particularly interested in policies and programs that involve a concerted interaction with local actors or an intervention that is directed to local actors. Therefore, we only consider regional development programs to the extent that they involve an important component of activities or assistance directed towards local actors. Local Economic Development: The general definition of Local Economic Development (LED) that we have used emphasizes the importance of actor-based processes in a locality that are aimed at achieving a sustainable socio-economic development of their community, even if the main objective is oriented to the development and to the reinforcement of economic activities. Despite the relative simplicity of this definition, it is important to underline the confusion that exists between the different terms used to describe the different approaches. In effect, the expression Community Economic Development (CED) is also often used to describe the same type of process, i.e. a more global process with a territorial basis and that is inclusive. Others use the term CED to describe local processes with an orientation more directed to social development. Some observers always make a distinction between LED and CED. Others, notably in France, totally refute the term “community” in CED, preferring the expression “participation of civil society” in area development processes, even if it is not always analogous. The situation has evolved, and continues to do so, bringing about an increasing complexity. For example, in the 1960s, the notions of LED and CED were quite distinct, especially in North America. But over the last 15 to 20 years, several elements of the CED approach have been borrowed by LED (e.g. the mobilization of actors, citizen participation). It is obvious that a whole range of approaches to local development exist, including LED as defined above. Also, in some places LED can be used to describe an approach to the economic development of a locality that is more “traditional”; this could involve a relatively restricted set of actors (e.g. directed towards Industrial Commissioners) and a specific set of target activities (e.g. the search for non-local investment, a task entirely devoted to economic development and business). This “traditional” form of LED is particularly noticeable in the economic development orientations followed by large cities and medium-sized towns.

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In the following report, a number of examples are noted where the jurisdictions under study illustrate this confusion. This situation underscores the interest and importance of conceptualizing LED for comparison purposes. Finally, it can be noted that LED is pursued both in urban and rural areas, even if many government programs tend to be oriented towards rural and outlying areas.

1.4 Conceptualisation of Local Economic Development The emerging “model” of Local Economic Development is characterized by two major components (Figure 1):

1. The environment in which LED is undertaken; and 2. The components of economic activity, i.e. the different components of the

business or, more generally, of the project. This model serves as a point of reference with which programs may be compared. This allows for the recognition of the need for flexibility in LED approaches as well as those of states in order to take into account local and regional specificities and the fact that different approaches have evolved at different speeds in different jurisdictions. The LED environment implies everything that has to do with local actors, their capacities and the processes in which they are engaged at local and regional levels. Thus, this component is composed of the following elements and actions, all of which can be subject to intervention by the state:

• Mobilization and accompaniment of local actors • Building of networks, partnerships and cooperative approaches • Building of processes (of planning, of action) • Consultation organisms or intermediate organizational structures • Area and area-based information • Approaches that can be holistic and global or sector-based or thematic.

Given that one of the principal objectives of LED deals with the creation and the development of business or a project in an area, the second major component – the development of businesses and projects through LED – incorporates everything that can be undertaken to help the start-up of a business and its development. Therefore, LED can potentially be concerned with one or several components of the business (based on a diagnosis of the area and the system of existing or potential actors):

• Manpower • Capital and access to capital • Technology and innovation • Markets (opportunities for development) • Information.

The simple conceptualization allows linkages to be made with the other components of the development of an area, e.g. cultural, social and environmental components. This then links to an approach that is increasingly favoured – at least in the discourse – for one that is more global and holistic, even if the starting point seems to be the local economy. For certain programs where this more global approach is favoured, the differentiation between LED and CED has become very difficult to identify (e.g. LEADER).

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Figure 1: A Conceptualization of Local Economic Development The components of the business Management Markets Capital Entrepreneurship Technology Labour Information The LED environment Actors and processes Actors (private, Processes public, community) The dimensions of the local environment Economic Social Political Bio-physical environment

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1.5 Methodology 1.5.1 The Methodological Approach The main stages of the approach are summarized as follows: 1. A certain number of jurisdictions, either industrialized countries or the lower level

jurisdictions in federal jurisdictions (e.g. a few provinces in Canada, an Australian state and several states from the United States) were selected, in order to represent a range of national contexts. The eleven (11) jurisdictions retained are Quebec (as a reference point), British Columbia, Ontario, New Brunswick, Oregon, Maine, Vermont, New Hampshire, the State of New South Wales in Australia, France and the European Union. New York State was also part of the initial selection, but had to be removed from the study because of lack of information;

2. The development of a conceptual framework for LED to serve as a model against which the different experiences could be compared and contrasted (section 1.4);

3. The development of an analytic grid to help in collating the information concerning the different policies and programs (section 1.5.2); the construction of this grid was based on the conceptualization of LED (section 1.4) and on several broad questions on which an answer was desirable in the context of the mandate of the study (see below); the synthesis (comments made on the strengths, weaknesses, opportunities and threats) facing the different jurisdictions represent our own evaluation of the situation in each jurisdiction;

It was decided to use the grid to synthesize the information for each of the retained jurisdictions (section 2) rather than use it for each of the programs or set of activities (which would have resulted in an excessively long document that would have been complex to read). 4. An initial research on the Internet sites of the chosen jurisdictions, followed by contacts

with resource people (by phone, mail or face-to-face, depending upon the jurisdiction) in order to obtain more detailed information regarding processes and issues; the contacts included those responsible for certain programs, a number of experts in regional and local development in certain of the jurisdictions, and a few representatives of regional and local development organizations. A rich documentation on the policies and programs of the targeted jurisdictions resulted from the initial contact with resource people.

The broad questions that guided our analysis of the information collected have been classified into two categories: i) questions that imply above all actions at the level of ministries and state agencies (e.g. various forms of inter-ministerial cooperation and consultation); and ii) questions specifically concerning relationships between the state and local actors (Table 1). In order to facilitate reading the descriptions of policies and programs presented in section 2 and in the Appendix, Table 2 provides a list of the most significant emerging issues that arose from our own analysis of these programs and the comments received from our respondents. These issues are twofold:

a) Issues for agencies and state ministries, b) Issues for local areas and actors.

In section 4, we discuss these emerging issues in more detail in terms of potential responses to them, particularly in terms of potential policy and program changes regarding LED in Quebec.

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The report is structured as follows. In the second section, the 11 jurisdictions selected for the study are presented. This description is divided into three subsections: 1) a short presentation of each jurisdiction; 2) an outline of the main highlights for each jurisdiction, emphasizing the innovative aspects of the jurisdiction; and 3) the analytic grid, reflecting our analysis of the strength and weaknesses, opportunities and threats in relation to the policies and programs dealing with LED in each jurisdiction. In the third section, two phases in the synthesis of the policies and programs of the different jurisdiction are presented: 1) a categorization of the jurisdictions based on several dimensions taken individually, based mainly on the broad questions (Table 1); and 2) a synthesis and a categorization of jurisdictions based on all of these dimensions. Comments are offered on these syntheses. Finally, in section 4, emerging issues are discussed (Table 2), including their relationships with the broad structuring questions and the different types of innovative tools identified. To conclude, the constraints and opportunities for the integration of these tools and approaches are discussed in the particular context of Quebec, where the roles of the state have been evolving in the direction of the emerging roles that arise from our analysis of the different jurisdictions included in the study.

Table 1 The Broad Structuring Questions of the Study

A. Questions that imply mainly actions at the level of state ministries and agencies

• The emphasis given to engines of economic growth in the area (not only in LED) • Existence of a precise statement of public policy (holistic, sector-based, or thematic) • Allocation of responsibilities between ministries and agencies • Priority given to assessment of LED

B. Questions related more specifically to the links between the state and local actors • Locality or area-based development: holistic or sector-based • The nature of innovative tools and approaches and their implications for the roles

and actions of states (their ministries and agencies)

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Table 2 Emerging Issues for Intervention in








• The relevance, the appropriate formulation and the integration of innovative tools and approaches in relation to the emerging issues for policies and programs of states, their ministries and agencies, particularly in relation to Quebec

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1.5.2 The Analytic Grid for Analysis of the Jurisdictions Strengths Weaknesses Opportunities Threats Priority Objectives for Intervention for Programs Dealing with LED

Economic development Social development Locality-based development: Holistic or sector-based Employment creation Business creation and development Programs focused on one or several components of business

development (see below) As detailed for the components identified below

Explicit Consultation or Cooperation between Agencies and Ministries Mechanisms/Means/Tools Related to the Local Business Environment:

Financing of actor-based processes, and experts to support the processes, etc.

Socio-economic observatory Cooperation between the state and the local/regional area Documentation, manuals Real and virtual offices Accompaniment of local processes

Mechanisms/Means/Tools related to the Life of the Business: Financing of actions (business investments, labour force training,

creation of economic structures based on solidarity)

Pertinent human resources Intervention area for human resources Identification, mobilization and training of actors (private, public, social,

civil society)

Risk capital funds Innovative programs Socio-economic observatory Methodological and/or educational manuals

Expected results:

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Qualitative (responsibilities, capacity, strategic planning, etc.) Quantitative (Employment, Businesses, Salaried employees, etc.)

Emphasis Accorded to the Engines of Economic Growth of the Locality (not only in LED) (approaches based on clusters, local productive systems and regional innovation systems)

l

Priority given to Assessment in LED

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2. Analysis by Jurisdiction In this second section, we present the 11 jurisdictions retained for the study. Three elements are presented for each jurisdiction:

1. A short presentation of the jurisdiction; 2. A statement of highlights, with an emphasis on innovative programs and

tools; 3. The analytic framework or grid, allowing a quick conceptual reading of the

jurisdiction; this reflects our reading of the strengths and weaknesses, opportunities and threats in relation to the policies and programs pertaining to LED in each jurisdiction.

2.1Quebec (benchmark) 2.1.1 Presentation of the Jurisdiction The province of Quebec had a population of 7,237,480 inhabitants in 2001, representing an increase of 5.0 % between 1996 and 2001 (9.33 % for Canada over the same period). It possesses a relatively rich urban hierarchy; the three most important urban centres in terms of population are: Montreal (3,426,350 inhabitants for the Montreal Census Metropolitan Area (CMA) in 2001- including 1,039,534 inhabitants within the limits of the former city of Montreal (before municipal amalgamation on the Island of Montreal); Quebec with a population of 682,757 inhabitants (the CMA) including 169,076 inhabitants in Quebec City; and Laval, with a population of 343,005 inhabitants (the city) in 2001. An important number of resource regions and peripheral regions also characterizes the Province. 2.1.2 Highlights for Quebec

Specific identification of the ministry responsible for regional development; A relatively holistic approach to local economic development; A context of ministerial and organizational restructuring that might well alter the

Government of Quebec’s approach to local and regional development; An approach in relation to the role of the Quebec government that is more

centred on the functions of providing a broad framework and financing for the actors in LED;

A local (e.g. the CLDs) and regional organizational structure that is superimposed, in certain areas, on a pre-existing federal structure (the SADCs);

An intervention in urban areas as well as in rural areas; An intervention in favour of the innovative notion of the social economy

(particularly in the current Canadian context, where the new prime minister, Mr. Martin, has made statements in favour of the construction of a dynamic social economy; this interest in the social economy in Quebec is a distinguishing feature compared to many other jurisdictions;

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A certain number of urban centres have endowed themselves with structures of local and community development that focus their approaches more on the community aspect of development. Not all communities possess these structures;

The provincial government has relatively few tools at its disposal to reinforce risk capital in relation to participation of the private sector.

2.1.3 Analytic Framework for Quebec

Strengths

Weaknesses

Opportunit ies

Threats

Priority intervention objectives for LED programs

Intervention in rural and urban areas in a relatively holistic way. Intervention on the social economy.

Relatively uniform intervention in territories that does not take into account the need for a preliminary local diagnosis.

Redefinition of the LED approach of the new liberal government.

Redefinition of the LED approach of the new liberal government.

Consultation or explicit cooperation between agencies and ministries

Current revision (law 34) of the Ministry of Regional and Economic Development that should permit greater horizontal integration of the different aspects of intervention, because of the incorporation within this ministry of the former ministries of Regions, Industry and Research.

Mechanisms /means/ tools linked to the local environment for business

Financing of local intermediary structures of consultation at local and regional levels.

Inadequacy of tools for scanning, information and observations (economic intelligence function) available to actors and local and regional decision makers.

Mechanisms /means/ tools linked to the business trajectory

Financial assistance programs for business start-ups.

Relative absence of risk capital of private origin compared to other jurisdictions.

Public consultation after a report on the role of the state in risk capital.

The emphasis given to economic driving forces of the territory (not only in LED) (clusters, LPS, regional innovation systems)

The territorial approach based on industrial clusters (or poles) still seems to be favoured: life sciences pole, multimedia pole, micro electronics pole, etc.

Priority given to evaluation and assessment in LED

Few assessments made public regarding LED.

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2.2 Ontario 2.2.1 Presentation of the Jurisdiction The province of Ontario is the Canadian province with the largest population: 11,410,045 inhabitants in 2001, representing an increase of 13.1 % between 1996 and 2001. It has the richest urban hierarchy among Canada’s provinces. Toronto is by far the largest metropolitan centre (a population of 4,682,897 inhabitants for the Toronto CMA in 2001, with the City of Toronto alone accounting for 2,481,494 inhabitants); the Ottawa CMA occupies second place in terms of demographic importance, with a population of 1,063,664 inhabitants (just for the Ontario part of the CMA), with the City of Ottawa having 774,072 inhabitants. Next comes the CMA of Hamilton with a population of 662,401 inhabitants, including 490,268 inhabitants for the City of Hamilton. The province of Ontario is also characterized by an important division between the very urbanized South Western part of the province and the East and especially the Northern part of the province with its weakly urbanized resource regions. 2.2.2 Highlights for Ontario

There are no real provincial government policies and programs that have a strong territorial basis, but there are programs that target on the one hand rural communities and medium-sized towns, and on the other hand, large cities;

There is a great variety of local and regional structures that deal with local economic development in rural areas as well as in urban areas;

The province has been assuming increasingly a role of guide, facilitator and counsellor, particularly in rural areas (including small and medium-sized towns and cities);

Services exist to assist local municipalities, organizations and economic development officers for strategic planning, the mobilization of actors, and the identification of business opportunities;

For rural areas, the distinction between CED and LED is not highlighted as it is in large urban areas;

There is a (virtual) resource centre, and provincial resource teams composed of experts from different ministries; the mission of the latter is to help municipalities in their planning to benefit from development opportunities, and to strengthen their economy, particularly in rural areas;

The province also supports programs aimed at strengthening human capacities for all local and community economic development practitioners, but it is not focussed on territories particularly;

There are funds for financing community economic development projects; Few programs exist to strengthen the financial backing of areas and area-based

processes; Inter-ministerial consultation exists to provide information and advice to local

actors, but this consultation seems to be most successful outside the Toronto region;

The biggest challenge is in the field of community capacity strengthening (leadership, organizational capacity, etc.), in inter-ministerial consultation, and also for local municipalities that have recently been subjected to municipal amalgamation.

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2.2.3 Analytic Framework for Ontario

Strengths

Weaknesses

Opportunit ies

Threats


Function of support to requests stemming from existing efforts.

Few area-based and holistic approaches.


Existence of inter-ministerial consultation.

Mechanisms /means/ tools related to the local environment for business

The state plays the role of a guide, facilitator, and counsellor for local actors through its Jump Teams and resource centres. Training for local development actors. Tools available on-line.

Fragility of the existence of local and regional consultation structures.

Mechanisms /means/ tools related to the business trajectory

Several forms of assistance aimed at new small businesses.

The Centres for Small Business represent a systematic consultation opportunity between local actors in economic development and provincial agencies and their regional offices.


A strong emphasis placed on the Greater Toronto Region, and other large agglomerations as the most important engines of economic growth.

In spite of diverse efforts to support LED beyond the metropolitan regions, these efforts remain marginalized because of the continuing growth of some metropolitan regions.


There is no formal assessment of local economic development programs in rural areas (including small and medium-sized towns). Diagnoses are undertaken rather with local actors in order to help them understand their needs, potentialities and constraints.

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2.3 British Colombia 2.3.1 Presentation of the Jurisdiction The province of British Colombia had a population of 3,901,135 inhabitants in 2001, exhibiting a remarkable demographic growth of 19.1 % between 1996 and 2001, essentially due to the region of Vancouver. The Vancouver CMA alone had a population of 1,986,965 inhabitants in 2001, testifying to the very polarized urban structure of this province. The province also has a large number of resource regions outside of this metropolitan concentration. 2.3.2 Highlights for British Columbia

Overall, few local and community economic development programs and policies that are area-based and truly holistic;

Many economic and fiscal measures for setting up and using economic development funds;

Existence of a rural development policy based on the development of activities other than strictly agricultural activities;

Existence of a development policy for First Nations communities that attempts, for instance, to increase the participation of these groups in the management of forest resources;

Few local economic development policies in urban areas except for the Vancouver Agreement;

In concrete terms, the traditional local economic development approach is merely an extension of provincial economic restructuring, and cannot be considered as innovative;

A relative absence of continuity in implementation of provincial programs for local economic development;

A preoccupation with economic engines of growth.

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2.3.3 Analytic Framework for British Colombia

Strengths

Weaknesses

Opportunit ies

Threats


Theme-based development regarding particularly First Nations communities, rural development, and the capitalization of fiduciary and risk capital funds.

Lack of public policy statements related to local development. Few holistic approaches to LED. Policies not especially oriented to urban areas, except for Vancouver. Lack of continuity of provincial programs for LED.

The field is completely open in terms of articulation of coherent policies and objectives for LED.

The greatest threat would be to miss the opportunity to use LED to mobilize the driving forces of the different areas beyond the Vancouver metropolitan region.


Given the important lack of policies related to LED, it is premature to speak of coordination or cooperation between agencies and ministries in this field.


Support to rural communities with fragile economies.

Otherwise few supporting programs for local communities.

The federal CF program (Community Futures) could provide an initial “model” for developing a coherent policy and program regarding LED.


A range of financial tools related to capitalization and development.

Insufficient attention pad to a coherent diagnosis to orientate interventions.

The federal CF program could provide an initial “model” for developing a coherent policy and program in relation to business support.


The province ascribes much importance to the metropolitan region of Vancouver as an economic engine of growth for the province.


A noted inadequacy in assessments of public polices and programs regarding LED.

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2.4 New Brunswick 2.4.1 Presentation of the Jurisdiction The province of New Brunswick is relatively small, with a population of 729,500 inhabitants in 2001; its population increased by only 0.8 % between 1996 and 2001. The population is not very polarized. The province’s main cities are: Moncton with 117,727 inhabitants for the Census Agglomeration (CA), including 61,046 inhabitants for the City of Moncton; the CMA of St. John with 122,678 inhabitants, with 69,661 inhabitants in the City of St. John; and the CA of Fredericton with 81,346 inhabitants, 47,560 of which live in the City of Fredericton. This province also has many resource regions. 2.4.2 Highlights for New Brunswick

The policy statement of the provincial government, and its technical and organizational details are relatively explicit;

The choice of making actors at the local level bear the responsibility for economic development strategies and programs is very clear;

A strategic planning process is in progress in each region; Existence of intermediary structures of community economic development

consultation (CEDAs); Existence of funds that are regionally managed in a relatively autonomous way

for the development of regionally-oriented projects; In general, the province has not placed an emphasis on the development of

initiatives aimed at strengthening financial capital, except for loan guarantee programs and micro financing (which is not in any case an initiative of the provincial government);

The operation of a network of regional agencies for community development that allows for the setting up of training programs for volunteers, and more generally, for all the actors in the regional agencies;

Existence of relatively holistic local strategies, even though the recent reorganization has placed economic development as the top priority, and has reduced the role and the position of social actors;

No clear cut differentiation between local economic development in urban areas and in rural areas;

A will to coordinate, through setting up regional commissions, the policies and particularly the programs of the provincial and federal governments. However, there are different geographical limits of intervention depending on whether the tools or programs are federal or provincial.

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2.4.3 Analytic Framework for New Brunswick

Strengths

Weaknesses

Opportunit ies

Threats


An area-based approach, but one that is particularly structured at the regional level. Development of local and regional consultation organizations in LED. Intervention of CEDA in rural areas as well as urban areas.

Approach is less and less holistic and more and more oriented to economic development.

The new Plan has reoriented the approach of the New Brunswick government onto economic engines of growth and this may compromise the participation of all local actors.


Good consultation between provincial and federal interventions.

Mechanism /means/ tools related to the local environment for business

Training provided for volunteer local actors (private or public) through the CEDA network, and in partnership with Mount Allison University.

Refocusing on one of the facets of strategic planning, i.e. economic development (not holistic).

Mechanism /means/ tools related to the business trajectory

Assistance for the creation of small businesses.

The new Plan places the emphasis on business.


The tendency of the most recent plan presented.


An assessment of regional organizations was initiated at the beginning of 2004.

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2.5 France 2.5.1 Presentation of the Jurisdiction France is one of the most important countries of the European Union with a population of 58,518,395 inhabitants in 1999 (59,625,900 inhabitants in 2003). Its demographic growth was 3.4 % between 1990 and 1999. Its urban hierarchy is very rich and well developed, even though, for a very long time, there was a remarkable demographic and economic polarization in favour of the Paris region (Ile-de-France region). The Ile-de-France region had a population of 10,952,011 inhabitants in 1999, in comparison with the next two largest regions: Rhône-Alpes (Lyon and Grenoble) with 5,645,407 inhabitants, and Provence-Alpes-Côte d’Azur (Marseilles) with 5,505,151 inhabitants. For more than a century (up to the 1960s), the Paris region had increased in importance at the expense of other French regions, and this observation has had a very important bearing on the focus of regional development programs since the middle of the 1950s. 2.5.1 Highlights for France

A holistic regional development policy oriented towards development of the whole French territory;

A regional development policy more and more centred on an approach of developing driving forces such as local productive systems promoted by the DATAR;

Support from the state and from all public actors, for undertaking area-based diagnostics intended for intermediary structures of regional development (pays - territories with a certain historical identity that is still expressed today in social and economic terms - Agglomerations, Regional Natural Parks…), and particularly in terms of strategic thinking and the preparation of a strategic development plan that is broad-based and holistic;

A recent movement for the decentralization of economic responsibilities to the level of regional political structures. This tendency that can be expected to be maintained for the coming years;

A multitude of administrative layers, of mechanisms and actors at different levels making the understanding of programs and policy statements extremely confused, even for the actors working within it;

Recent programs have been greatly inspired by European programs and much more coordinated with them than before.

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2.5.3 Analytic Framework for France

Strengths

Weaknesses

Opportunit ies

Threats


The area-based development approach (in terms of social and political construction of territories by local and regional actors) is relatively recent in France, bringing with it the risk of it being more fragile or vulnerable. Dominant participation of government in processes of local development.

The bringing into play of LOADDT through the policy of pays, Agglomerations, and PNRs, is a real opportunity that territorial actors seem willing to take. Decentralization of responsibilities to regions for economic development.

Withdrawal of the current government from making Development Councils a requirement, that would have allowed greater participation of local actors in construction of pays and Agglomerations.


Existence of CPER favouring, even requiring, cooperation, between different administrations.

Multitude of administrative and legislative layers (central, regional, and department state versus regional, departmental, and local municipalities).


State support for territorial diagnostics, follow-up, and assessment of process by consultants. Observatory for pays and Agglomerations. A more and more contractual form of cooperation (CPER). Setting up web site to assist local development professionals. Financing of a national support mechanism for all French regions.


Existence of socio-economic observatories (employment, training, etc.) in many local communities.


Promotion and support for setting up local production systems

Priority given to evaluation / assessment in LED

Since relatively recently, following the example of the European Union, programs are subject to mid-point and terminal assessments.

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2.6 The European Union 2.6.1 Presentation of the Jurisdiction The European Union was comprised of 15 countries in 2000 and accounted for nearly half of the population of Europe, or nearly 375,000,000 inhabitants. It will increase in size in 2004 with 10 new countries from East Europe, increasing its population to close to 450,000,000 inhabitants. It is not easy to describe the European Union because of the tremendous diversity of countries, contexts, cultures, and economic situations. The Gross Domestic Product (GDP) per inhabitant, already exhibiting very marked contrasts in the ‘Europe of the 15’, will have even larger disparities in the new ‘Europe of 25 countries’. The Cohesion Policy of the European Union aims to take this into account, and to work towards eliminating this disparity as much as possible in order to make Europe, first, a real common market, and second, a relatively homogenous territory in terms of the level of living conditions of its inhabitants. 2.6.2 Highlights for the European Union

A regional development policy and funds that have up to now been oriented towards reducing regional disparities;

The only European programs for local economic development in rural areas that are really holistic are programs that are in fact relatively modest, such as the LEADER community initiative;

A clear distinction between urban and rural development. The latter is in fact under the supervision of the Agricultural Directorate that ensures the implementation of the Common Agricultural Policy (CAP);

Programs intended generally for areas in difficulty, except for more social measures that are applicable to all territories in the European Union;

The programs of the European Union have benefited from a certain stability up to now;

Direct relationships exist between the intra-national regions and program managers in Brussels (the European Union). But these relationships risk disappearing with the arrival of new countries that wish to retain control over their own regional development;

A vision of development that is in the process of being redefined. A possible reorientation towards focusing on economic driving forces in order to satisfy the stated objective of making Europe the most productive economy in the world by 2010;

Roles involving technical assistance, guiding and providing incentives for proper systematic assessment, allowing member States to remain sovereign in their territories, while being accompanied in a logic of regional socio-economic development. This role is however being questioned in the context of the arrival of 10 new countries from East Europe in May 2004.

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2.6.3 Analytic Framework for the European Union

Strengths

Weaknesses

Opportunit ies

Threats


The approach of the European Union in relation to LED has so far been proactive. Stated objectives of reducing regional disparities within the European Union. Certain programs such as LEADER are holistic.

The differences in PIB between the countries of the Union have been reduced but they have become accentuated between the regions (intra-country) of the member countries. The LEADER program may be “drowned” in the whole range of issues of the CAP.

The arrival of 10 new countries is an opportunity to place the Eastern Countries of Europe into a cycle of learning about LED.

The arrival of 10 new countries may compromise the proactive approach of the European Union because of a lack of means and a reorientation of the policy of reducing regional disparities. The LEADER program has been classed among the experimental actions for years. If it does not move into the “mainstream” soon, it may disappear.


The relations between the Union and the member states have not always been good. Moreover, the Union has developed increasingly direct relationships with the regions.

The arrival of new countries might limit direct relationships with regions because of sovereignty issues for the new member States.


The LEADER Observatory integrated the pedagogical functions of scanning, training and analysis of practice.

The activities of the Observatory are for the moment interrupted because of lobbying by farmers (CAP).


The General Office of Competition of the European Union puts a brake on many processes intended to help businesses.


The European Union contemplating supporting regional innovative systems related to cluster concept.

Priority given to evaluation / assessment in LED

Assessment is required (sometimes annual, mid-way through a program and at the end of a program).

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2.7 Australia (New South Wales region) 2.7.1 Presentation of the Jurisdiction The State of New South Wales is one of the most important in Australia in terms of population and economic activities. A good proportion of the State’s population of 6.6 million inhabitants live in the Sydney metropolitan region (nearly 63 % of the State’s population), which also represents a very important proportion of the state’s economic activities. Nevertheless, the population is less geographically polarized than in other Australian states. 2.7.2 Highlights for New South Wales

In New South Wales, responsibility for economic development is located within the same ministry that is responsible for business development;

Many local and regional organizations play an important role in the articulation of the programs of the State and local territories;

An emphasis is placed on the development of industries, infrastructure, trade, businesses (small businesses and particularly existing businesses), and community self-development;

There is no sector-based orientation given to economic development, and the main initiatives come from the communities;

The programs seldom target different categories of territories; The different budgets allocated to regional and local development are relatively

limited (very limited in the case of New south Wales); The development of partnerships with communities is relatively important in the

State’s policy; An emphasis is placed on the role of the state as a guide, facilitator, counsellor

and source of strategic information and even as trainer; Overall, evaluation is not a priority even if periodically there are internal

evaluations or assessments.

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2.7.3 Analytic Framework for New South Wales

Strengths

Weaknesses

Opportunit ies

Threats


Development of businesses and principally of employment are the main goals of the ministry responsible for LED.

Does not deal with the economic region of Sydney in relation to LED.

An opportunity to set up a policy and programs covering the whole territory of the state in a more systematic way.

With polarization of economic activity, efforts aimed at non-metropolitan regions may well be marginalized.


Links should exist between economic development and social development but they are not very obvious in reality.

The fact that every decision of the State cabinet must be accompanied with a declaration of the impact on rural communities of decisions concerning projects is an opportunity to seize in better coordinating the different interventions of the State and managing consultation between different ministries and agencies.

Not to seize the opportunity to set up a policy and coherent programs could be a missed opportunity to balance the potential of development between the Sydney metropolitan region and “regional” New South Wales.


Services, access to services, the infrastructure supplied by the State itself. Support and advice to regional organizations in terms of strategic planning and the development of leadership. Support for the training of development officers.

Even if the state shows it has appropriated the roles of guide, facilitator, etc., it is not at all obvious that this policy is effectively followed through on the ground.


Financial aid (grants), business advice and strategic information: interventions (services) are therefore relatively traditional.

Expected results Quantitative (Empowerment, strategic planning, etc.)

Support to processes of strategic planning. Without systematic diagnosis, there is a risk of not being able to intervene except sporadically. Although these services are important, an approach involving just offering services does not necessarily contribute to a better balancing of economic development across the State’s territory.

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Quantitative (Employment, businesses, salaried workers trained, etc.)

Retain rural population, creation of employment and development of small business are the expected results. But these results are not articulated in terms of balancing the potential between the different territories of the state.


Globally, the State places much emphasis on the economic activities of the Sydney region which possesses a diversified and dynamic economic base. International scale activities are pursued, e.g. attracting head offices of large corporations and foreign investment. In reality, an important emphasis is placed on this “geographic” engine of growth.

Priority given to the evaluation and assessment in LED

Internal evaluation is undertaken periodically. But no global evaluation has been undertaken; this does not seem to be a priority. An opportunity to use a global evaluation process to better coordinate programs and also for use as a development tool for local and regional actors.

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2.8 Oregon 2.8.1 Presentation of the Jurisdiction The State of Oregon has a population of about 3.5 million inhabitants. Its main city is Portland, a true metropolitan centre. The rest of the population is spread out between small and medium-sized towns. This state experienced a rate of demographic growth substantially above the average American rate during the 1990s. 2.8.2 Highlights for Oregon

One of the first states where an import replacement program was developed; it has been used as a model by many other states;

An approach integrated with the problems and planning of communities, involving working in conjunction with local development organizations;

A statement of a general objective of creating “quality” employment and another more specific one of helping communities improve their infrastructures so as to strengthen their local economy;

The state provides assistance in terms of the preparation of community profiles, makes available manuals for preparing an inventory of needs and issues and assessing community capacities;

Community Solutions Teams (recently renamed Economic Revitalization Teams) that cover all aspects of community development, including economic development, aimed at working out made-to-measure solutions to problems and opportunities confronted by each community;

An emphasis placed on local economic development (even if a great number of initiatives also deal with social development);

The state plays important roles as guide and facilitator of planning and organizational processes for local economic development;

Very innovative in relation to inter-ministerial collaboration and the participation of local municipalities.

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2.8.3 Analytic Framework for Oregon

Strengths

Weaknesses

Opportunit ies

Threats


Economic development (employment, investment, businesses) clearly put in the context of a will to improve “quality of life” in local areas.

Large potential for developing concerted and explicit programs for territorial or area-based development.


Clearly displayed consultation to help the State as well as local municipalities and communities. Note that a special commission oversees the principal ministry to ensure that its approach remains coherent and integrated.

There is a risk of not taking into account all needs because of a lack of a broader territorial diagnosis.

A potential for organizing a network in each of the regions to facilitate the construction of intervention teams for different issues.


Innovative tools available on-line: Accompanying guide on the ground; planning process; construction of inventories in the different domains of the development and strengthening of community capacity; traditional financing.

The danger that initiatives coming from communities do not represent the whole range of situations where an intervention would be desirable. A substantial responsibility rests on the agents of the State who deal with the different territories.

See weaknesses.


Traditional financing and production of strategic information on request.

Qualitative (Empowerment, capacity, strategic planning, etc.)

Quality of life. Capacity of local actors and participation in planning processes.


Employment


An emphasis placed on development in general, in the context of an open market.

Priority given to the evaluation and assessment in LED

The assessments of the different programs are displayed on the ministry’s web site, as are its annual reports. It is interesting to note that a special commission watches over the principal ministry to ensure that its approach remains coherent and integrated.

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2.9 New Hampshire 2.9.1 Presentation of the Jurisdiction This American state is relatively small with a population slightly greater than 1.2 million inhabitants and a demographic growth in the 1960s slightly below the American average population growth rate. Apart from the southern part situated near Boston, the population is spread out between an important number of small towns. 2.9.2 Highlights for New Hampshire

Existence of a ministry that groups together a large number of activities oriented to LED;

A semi-autonomous state agency, the New Hampshire Community Development Finance Authority, manages grants that can be used to reinforce the capacity of local actors and other economic development projects. This is the orientation that is favoured, even if support can be provided to a variety of community projects through local organizations;

The same agency also supervises a Main Street program and administers the Federal Community Development Block Grant program;

Overall, a state that has an important presence in terms of economic development that is mainly traditional in nature, with an agency that possesses the potential of becoming a innovative tool for local actors if a territorial diagnosis were undertaken and a more proactive approach to intervention (advice and financial support) became systematic.

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2.9.3 Analytic Framework for New Hampshire

Strengths

Weaknesses

Opportunit ies

Threats


Concentration of several responsibilities within a single ministry; economic development is a priority activity. Another agency has a mission that is clearly oriented to community development, but the economic approach remains privileged.

A substantial proportion of the activities remain “traditional”.

A great opportunity exists to promote a more global territorial development, given the administrative links between the agencies.


The agencies concerned with LED are either within the same department, or in a semi-autonomous agency that maintains links with the ministry, thereby facilitating consultation.

Potential really exists, especially through the leadership of the financing agency for community development


Support in terms of advice and financing (by project) to Regional Development Corporations. Although processes of strategic planning by local actors are discussed, the emphasis is put on project financing, including process projects, on a case by case basis.


This is rather indirect, through support for the capacity and working capital of local and regional organizations that offer services to current and potential businesses.

Expected results

Qualitative (Empowerment, capacity, strategic planning, etc.)

Better integration of underprivileged segments of the population.


Important emphasis placed on employment and business development.

The emphasis given to economic driving forces of the territory (not only in LED) (clusters, LPS, regional innovation systems

Overall, the emphasis is on traditional development and the development of external markets.


The agency was the object of an assessment of the economic impacts of its community financing approximately 5 years ago.

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2.10 Vermont 2.10.1 Presentation of the Jurisdiction The State of Vermont, very close to Montreal, has a small population of approximately 610,000 inhabitants. Its population is strictly rural, and is spread out between many small towns and villages. Its rate of demographic growth during the 1990s was only 8 % - more than for Maine but still below that of the United States. 2.10.2 Highlights for Vermont

The Department of Economic Development (DED) draws together most of the programs and relevant interventions for LED while aiming for a better quality of life for the population;

It has integrated the following principles in its process: build regional capacity for development; facilitate partnerships between public and private sectors; place the emphasis on a systematic approach (especially in economic terms); and assess results;

The Vermont Economic Development Authority (VEDA) incorporates programs and actions aimed at small and medium-sized business development. It works closely with this ministry and the local development corporations;

A preoccupation for heightened public awareness regarding economic development, a rather innovative element in so far as this is publicly stated;

VEDA also works in collaboration with the regional economic development organizations (Regional Development Corporations), that are for the most part relatively traditional in their approaches;

At the regional scale, these Regional Development Corporations are where the numerous programs of the state are integrated (e.g. strategic planning, small business, tourism, etc.);

For example, DED financially supports the strategic planning of Regional Development Corporations, as well as activities in terms of new business development;

It is at the regional scale that an integration is achieved, including certain activities that are also part of social development (e.g. professional training and education in the schools at the community level);

A role of the State in the financing of certain activities of local economic development, in encouraging strategic planning and in the mobilization of actors in different domains to help them attain their goals.

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2.10.3 Analytic Framework for Vermont

Strengths

Weaknesses

Opportunit ies

Threats


A ministry focussed on economic development that has privileged links with local actors in the domain. Close links with local actors recognized as essential for the State’s economic development . An agency supports small / medium-sized business.

Lack of an overall territorial diagnosis.

Undertake a more systematic diagnosis, that could be used to orient choices.


Relationship relatively close between the agencies concerned with economic development.

In a small state, it is easier to ensure consultation between different agencies.


A whole range of tools and means especially traditional ones (e.g. financing).


Financing and strategic information (markets, access to financing, training). A large range of services available to business, to project proponents and to local and regional development corporations.

Expected results Qualitative (Empowerment, capacity, strategic planning, etc.)

Quality of life of the population. Capacity of local actors. Process of strategic planning.


Quality employment (measured in terms of remuneration), business development and investment.


A state with a scattered population, and a preoccupation with encouraging economic development through the development of markets.

Priority given to the evaluation / assessment in LED

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2.11 Maine 2.11.1 Presentation of the Jurisdiction This state is relatively small, with a population of about 1.3 million inhabitants, with two medium-sized towns and a great number of small towns and villages. Its rate of demographic growth of 3.8 % was much below that of the American average in the 1990s. 2.11.2 Highlights for Maine

A ministry that incorporates all the initiatives and programs dealing with both local and community economic development, which a priori facilitates coordination;

Several programs exist to help business development with a decentralized structure, e.g. marketing and the administration of the Community Development Block Grant program through the Office of Community Development;

The Office of Community Development distributes several million dollars per year to communities for housing projects and for community and economic development;

A concern for sharing resources, especially in terms of strategic information, between the state level and local and regional actors.

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2.11.3 Analytic Framework for Maine

Strengths

Weaknesses

Opportunit ies

Threats


Main ministry’s mission statement is clearly oriented to economic development, but also integrates social aspects. Important emphasis on interaction between local actors, even if this remains relatively traditional.

An important emphasis placed on traditional interventions (sharing of strategic information, financial aid), and relatively little on capacity building for local actors.

The question of area-based development in a global way remains an opportunity yet to be seized.


The effort is essentially concentrated in one ministry.

Potential via consultation to explore innovative approaches and tools more easily.


Financial assistance for various projects, for strategic information, etc.

The possibility for better integration of business development and economic development in general through supporting a more global local approach.

The potentially very reactive nature of the approach by “competition” may limit intervention based on a territorial diagnosis (potentials and needs).


Working capital managed by local and regional organizations, strategic information...

Expected Results

Quantitative (Empowerment, capacity, strategic planning, etc.)

Improvement in planning processes and capacity of economic development organizations.


Quality employment. Creation and maintaining business investment.


Importance attached to the attraction of foreign investment or in general from outside the State. Tourism has an important role, as well have other existing sectors for a long time (e.g. forestry industries). In a recent public speech (January 2004), emphasis was placed on emerging modern industries (for instance, research in the biotechnology and biomedical domains, and an approach by “clusters”).


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3. Synthesis of the Analyses by Jurisdiction The analysis and synthesis of information on policies and programs dealing with LED are undertaken in two stages:

1. A categorization of the jurisdictions on each of five dimensions is presented (Section 3.1). The categorization is discussed in relation to the homogeneity of each category and to its interpretation in comparison to LED (Figure 1).

2. Then, this categorization by dimension is synthesized by creating a typology of the jurisdictions with 3 categories (section 3.2). Quebec is incorporated into this analysis and synthesis, thus allowing Quebec to be positioned in relation to the broad structuring questions (Table 1) and, eventually in section 4, to the emerging issues (Table 2).

3.1 The Jurisdictions Categorized on Five Dimensions Dealing with Their Policies and Programs regarding LED Five dimensions are retained that are used in section 3.2 to construct a typology of the jurisdictions relating to policies and programs in LED. The five dimensions are related to the broad questions that have informed the analysis of the jurisdictions (Table 1). They are:

1. The global policy approach in relation to LED; 2. The nature of the role of the state to relation to LED processes; 3. The emphasis given to the territorial or area-based dimension; 4. The holistic dimension (the integration between the economic dimension and the

other dimensions of development of a locality); 5. The importance given to processes involving local actors (local environment for

economic development) by the jurisdiction in their processes of support to business development.

For each of these dimensions, several categories have been developed on the basis of our understanding and analysis of the information available. They are non-exclusive categories in the sense that each jurisdiction has been placed in the category for which there appears to be the greatest convergence. This does not mean that the same jurisdiction does not present certain characteristics proper to another category. Moreover, in any case these dimensions are not independent of each other. With many more jurisdictions, it would have been possible to develop a more detailed and systematic categorization. However, what is presented here nonetheless provides a basis for reflection, allowing us to place one jurisdiction (notably Quebec) into perspective compared to the others.

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3.1.1 The Global Policy Approach in Relation to LED Two types of policy approach regarding LED are identified: A. a first one aimed at reducing disparities between areas and more generally regional development; and B. a second one aimed first and foremost at economic growth of the whole territory by supporting the engines of economic growth.

A. Reducing area disparities and regional development France European Union Quebec New Brunswick

Reduction in regional disparities in terms of socio-economic development and regional planning for the whole French state have been the foundations of French policies and programs since the middle of the 1950s (e.g. the policy aimed at developing regional metropolises to produce a better balance between regions and the policies aimed at the reinforcement of medium-sized towns). France was the first country to incorporate policies and programs with the goal of slowing down the economic driving force of its principal metropolitan region, the Ile-de-France region. Even if that region still displays a certain amount of economic growth, since the middle of the 1970s the migratory balance between that region and the other French regions became negative for the first time in more than 100 years, to such a point that in the course of the 1990s, certain representatives of the Ile-de-France region (and of the central state) began to become preoccupied over the role of the French metropolis in both France and Europe. For the European Union, for many years and until quite recently the overall policy has aimed at reducing socio-economic disparities between regions, e.g. through the LEADER program (even if that program is only aimed at certain regions of Europe’s rural areas). Quebec and New Brunswick are also placed in this category. In both cases, the reduction of regional disparities has for long been of considerable importance in these jurisdictions. In the implementation of this approach, certain differences appear between jurisdictions in this category. For Quebec and New Brunswick, their policy is currently implemented through structures that cover nearly all of the jurisdiction’s territory via intermediate regional structures (e.g. the CLD and the Regional Development Councils (and soon, the Regional Conferences of Elected Representatives) in Quebec, and the CEDAs in New Brunswick). These structures do not completely eliminate regional specificities from their processes, of course, but they do bring an approach, a type of assistance and a set of tools that are relatively standardized and uniform from one locality to another. For LEADER and France, there is also an element of standardization involved, but their structures only cover a part of the jurisdiction’s total area.

B. Policy of growth and support to the engines of economic growth Australia Ontario Oregon Vermont

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Maine New Hampshire British Colombia

Certain jurisdictions have centred their policy of area-based development on an approach that favours the global growth of their economy. In these jurisdictions, the actors count on positive fallout from the economic growth of the main metropolitan regions to help those regions that are in difficulty (outlying regions, resource regions). This does not signify the total absence of programs and services for regions in difficulty; but these programs and services are not offered in a proactive and systematic way in those regions. It is noteworthy that, even among the jurisdictions that in the past have had objectives of reducing regional disparities (Category A), there has been a recent tendency to espouse this kind of reasoning – for instance, the European Union has given itself a new objective in its next generation of programs to become the most productive economy in the world by 2010, and France wishes to reposition the Ile-de-France region again, already the leader in all categories among French regions, as the mainspring of the French economy in France’s positioning within Europe and indeed the world. In the implementation of policies in this category, the jurisdictions offer a range of services in support of local actors in their LED processes, as in category A. The services offered by the jurisdictions in category B are often financial in nature, even if the amounts are not generally very important. Although it is included in this category, the State of Oregon however can be distinguished from the other jurisdictions by the coherence of the services if offers to local and regional actors, and Ontario follows closely in terms of the services offered to rural areas and small and medium-sized towns. 3.1.2 The Nature of the Role of the State in Relation to LED Processes In terms of the nature of the intervention of the state in the jurisdictions studied, four types emerge relatively clearly: A. the state in an accompanying role; B. the state intervening on an ad hoc basis or in reaction to a demand or expressed need; C. the state financing programs and projects proposed by intermediate structures; and D. the state as supplier of methodological, information and other resources early on in the process. Once again, it is not always easy to place a jurisdiction in one or other of these four categories, given that a jurisdiction may have other roles than the one ascribed it.

A. The state in a permanent accompanying role operating through local structures of consultation

Quebec New Brunswick

In this category, the stress is laid on approaches involving a more or less permanent accompaniment of the local actors in their processes. The support is generally given not to the local actors individually, but rather to a local or regional structure for dialogue and development. The term ‘accompanying’ implies that the state not only has the will to support LED through the intermediary of local structures, but also that through its representatives and agents there is a will to maintain a presence in a more or less permanent way (e.g. by sitting on the management boards of the intermediate

53

structures). It stands to reason that the accompanying state generally offers advice and support in a systematic way. Furthermore, there is a concern to cover most of the jurisdiction (cf. category A on the first dimension, section 3.1.1) .

B. The state intervening on an ad hoc basis or in reaction to a demand or expressed need (reactive)

Ontario British-Colombia New South Wales

In this category are jurisdictions within which there exists a whole range of services of assistance to local actors, available at the request of local actors. It is a relatively reactive approach.

C. The state as financial support New Hampshire Maine Vermont

This category also includes jurisdictions that offer services to local actors principally on demand, but in this care, the services are rather of a financial nature, mostly via “competitions”. This does not mean that the financial aid is very important in terms of amounts, but rather that an emphasis is placed on this type of aid. It is also a very reactive approach.

D. The state as supplier of resources (methodological, pedagogical, information)

France Europe Oregon

In this category are found jurisdictions with a large range of services offered, in terms of information and tools. Unlike category A, the state as a supplier of resources does not base its assistance on a local structure of dialogue and development to support the development of the area. Instead, it offers “superior” services, i.e. specialized advice, strategic information, methodologies for accompanying processes, etc. that act as an additional decision support to local actors responsible for LED. 3.1.3. The Emphasis Given to the Territorial or Area-Based Dimension The interventions of the governments of the different jurisdictions do not all integrate fully the territorial or locality dimension. Certain jurisdictions target local actors as the basis of their intervention, rather than the territory or area on which they collaborate.

A. The locality and its local actors as the basis of the intervention European Union France Quebec New Brunswick

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In this category of jurisdictions, the territory or locality more or less occupies the centre stage on which the development project is based. In effect, a feeling of territorial identity and a will to contribute to the development of the area lie at the base of this type of approach. The locality must however be conceived of in its broadest sense, and not just as a simple geographic backdrop.

B. The local actors as the basis of intervention Ontario British-Colombia New South Wales Vermont New Hampshire Maine Oregon

In this category, the focus is on actors who obviously work and live in the locality, but the locality is not precisely delimited and does not serve as the central element in the development strategy. 3.1.4 The Holistic Dimension The approaches and interventions of governments in relation to LED can be relatively global and integrated, or only take into account one or a few dimensions of LED, either sector-based or thematic dimensions.

A. A relatively holistic approach European (Union LEADER program) France (pays and agglomeration contracts) New Brunswick Quebec

Some programs deal with territories or localities in a relatively transversal and global way, i.e. they do not target a particular sector, type of population or particular theme. This approach is closely related to the one based first and foremost upon the notion of territory or locality. This category includes the European program LEADER, the steps being taken towards creating pays, agglomerations, and Regional Natural Parks (PNR or Parcs Naturels Régionaux) in France, the Community Economic Development Corporations (CEDC) (CDEC or Corporations de Développement Économique Communautaire), the Local Development Centres (CLD or Centres Locaux de Développement) and the Regional Development Councils (CRD or Conseils Régionaux de Développement) for Quebec, and more globally, the approach of New Brunswick. In the last two examples (Quebec and New Brunswick), a recent tendency can be observed however to place a greater emphasis on the economic dimension.

B. An approach based more on economic development Ontario British Colombia New South Wales

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The economic dimension (i.e. the development of economic activities through the development and reinforcement of business) clearly dominates in this type of approach. The social dimension, which in general continues to coexist within this approach, is reduced to its simplest expression. One of the characteristics that contributed to placing jurisdictions in this category is the support given to engines of economic growth, i.e. the intent to focus and concentrate efforts in priority on strong regions.

C. An approach based on economic development, but with an important social dimension

Vermont Maine Oregon

Within this approach, social aspects play a more prominent role. But the approach is not holistic because the social dimension is dealt with in a relatively parallel manner, and not as part of a whole: the tools and programs are either economic, or social, but rarely transversal. Moreover, the objectives of the approach are generally more economic in nature. 3.1.5 The Importance Given to Processes Involving Local Actors In terms of the importance given to processes involving local actors, some jurisdictions chose to emphasize processes aimed at a more or less transversal strategic planning process, that is long term and based on mobilization of the actors of a locality; other jurisdictions tend to leave it up to local communities to organize themselves, and intervene more in relation to actions and projects after the actors themselves request their intervention.

A. An emphasis placed on strategic planning processes and actor mobilization European Union France Oregon Ontario New Brunswick Quebec

The jurisdictions in this category concentrate their efforts that are principally financial in nature on strategic planning processes in the localities concerned. This type of approach is becoming more and more common in Western countries.

B. An emphasis placed on action (projects, their financing) Maine Vermont New Hampshire New South Wales

Some jurisdictions, including those listed here, do not intervene in the stages of territorial construction and development, opting rather for a less “ideological” approach in relation to LED by financing individual actions and projects.

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C. Cannot be classified British Columbia

It is difficult to place British Columbia in one of these two categories. This jurisdiction has placed its emphasis more on efforts, which are not necessarily financial, encouraging either business development through tax advantages for private capital, or the “harmonious” development of natural resources or aboriginal communities.

3.2 Three Types of Public Policies Related to LED This classification, illustrated in tabular form, yields a “typical portrait” of three jurisdiction types, characterized by similar approaches and interventions in relation to LED (Table 3).

A. The state as proactive leader in Local Economic Development The first category arising from our analysis identified the state as a proactive leader in local development, in the sense that the intervention of the state is more related to LED based on accompaniment of the actors of a locality through a planned, long term and global intervention that incorporates all socio-economic dimensions:

Quebec New Brunswick European Union France

While there are slight differences in approach (a standardized approach versus offering resources and services) among the jurisdictions found in this category, all of them have a proactive role regarding LED. Quebec is placed in this category. Finally, it is noteworthy that in a certain number of jurisdictions there is a tendency to focus more of their efforts on supporting the engines of economic growth rather than dealing with the whole area of a jurisdiction or with lagging regions.

B. The state as support to economic development that is sector-based or thematic

The states in this second category also show a relatively proactive approach regarding economic development, but their approach is significantly more traditional, i.e. it is not based on a territory, is sector or thematic in nature, and is focused on actors wherever they are located:

Ontario New South Wales British Colombia

The role and importance given to the strategic planning process, even though varying from one jurisdiction to another, are generally not determining factors in establishing membership in this category.

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C. The state as source of financing for actions related to economic or social development

This third and last category is not based on the same ideology, in the sense that the state rarely intervenes in the principal structuring steps for LED, and does not play a significant role in planning. However, it remains responsive to requests for support to finance actions related to economic development, or to a more socially related development:

Maine Vermont New Hampshire Oregon

The case of the State of Oregon is somewhat different, but this State in itself is not truly a proactive actor, even though it intervenes in a much more intense way in the process. Its interventions come more through the services it offers. This typology serves as a reference point in the analysis of emerging issues and innovative tools and programs dealt with in section 4.

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Table 3

The Different Categories Regarding Local Economic Development

Canada United States

The Dimensions Quebec

(Reference point)

B.C. Ontario N. B.

France Europe New

Hampshire Vermont Maine OregonAustralia

Approach of LED policy A B B A A A B B B B B Nature of intervention in the LED process A B B A D D C C C D B

Territorial dimension A B B A A A B B B B B Holistic dimension (links with other aspects of the locality) A B B A A A C C C C B

Importance given to processes of local actors (local environment for economic development)

A C A A A A B B B A B

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4. Emerging Issues and Propositions for Innovative Programs and Tools In this last section, the broad issues for policies and programs regarding LED are presented. These issues have been identified from our analysis of LED policies and programs for the jurisdictions selected for the study, statements from respondents and our broader knowledge of LED. The issues identified (Table 4) naturally relate to the broad structuring questions that were used in the analysis of the information (Figure 1). In section 4.1, innovative tools and approaches for each of these issues, when appropriate, are discussed. The last issue, i.e. the relevance, appropriate formulation and integration of innovative tools and approaches for LED policies and programs is obviously integrated into the discussion for each of the other issues. For each issue, the discussion is presented under two sub-headings:

1. Understanding the issue in relation to the corresponding broad question; 2. Examples of innovative tools and approaches that have been adopted by different

jurisdictions in relation to the issue. A few comments are also given on the relevance of the issue for Quebec and the public sector and political actors who operate in this province. Finally, in the last section, 4.2, some conclusions are presented in relation to the challenges and opportunities of adopting such innovative approaches and tools in Quebec. These conclusions are based upon our own professional opinion.

Table 4 Emerging Issues for Intervention in








• The relevance, the appropriate formulation and the integration of innovative tools and approaches in relation to the emerging issues for policies and programs of states, their ministries and agencies, particularly in relation to Quebec.

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4.1 Emerging Issues Illustrated by Innovative Programs and Tools A. Issues for State Ministries and Agencies A.1 The New Emerging Roles of the State in Relation to LED A.1.1 Understanding the Issue A certain number of tendencies in relation to emerging roles of the state have been drawn out from the policy statements of agencies and ministries and from comments received. These roles can be summarized thus:

Educator; Guide; Counsellor Facilitator; Source of strategic information.

At the level of each jurisdiction, few clear statements exist in relation to these new roles, but approaches are more clearly expressed at the level of ministries and agencies (e.g. for the American states selected and for Quebec). It is evident that local economic development (often called community economic development, particularly in English speaking areas (e.g. Ontario and the American States), but also New Brunswick), has become an accepted component of the management of area-based economies. The roles that emerge from the analysis different innovative programs and approaches are those of: educator, guide, counsellor, facilitator and source of strategic information (Table 5). Specifying the exact nature of each of these roles is of course not an easy task, for there is a certain amount of overlap. Nonetheless, the following definitions are offered of each role:

The role of educator relates to the methodological contributions in relation to LED, in terms of the characteristics of approaches, understanding existing tools, methodological training for local actors, and so on, that the state can assure, either directly or through intermediary structures;

The role of guide (or ‘accompanying guide’) involves a relatively permanent and constant presence by states in the implementation of policies and programs related to LED. Within this role, states are positioned as being at the service of actors in the context of implementation of LED;

The role of counsellor refers to a more sporadic and limited intervention by states in relation to how local actors implement local LED policies, and apply the most pertinent programs;

The role of facilitator is close to that of the ‘accompanying guide’ but can be differentiated from it in terms of the leadership role played in the process. The facilitator is in at the beginning of the initiative to establish an LED policy while the guide ‘accompanies’ a group of actors in the context of a process that they themselves have defined;

The role as a source of strategic information is aimed at informing a system of actors involved in a LED process with strategic information that will permit an optimization of their respective efforts. The strategic information may be provided based on tools available locally or at a broader scale on the basis of national territories. This strategic information refers to the assessment of ‘good practice’ for a whole set of localities as well as diagnostic tools (locality-based, sectoral and thematic tools) adapted to the issues and needs of local actors.

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All these roles target different aspects of capacity building for local actors, and are very much interrelated. For example, when local actors are accompanied in their efforts to establish and implement strategic planning processes, it may be necessary and pertinent to provide them with strategic information. At another point, it might be more appropriate to advise or train them. Finally, it may be important to facilitate certain stages of their processes or to engage the services of other interveners to facilitate these stages. This may include, for example, facilitating public consultations. Overall, they are all roles that ultimately imply a more or less permanent contact and presence on the part of the state’s representatives or agents with local actors. Some jurisdictions have adopted the whole range of these roles (e.g. in relation to the LEADER program), while others have only adopted some of these roles (e.g. Ontario in relation to the rural milieu). Furthermore, these roles may be pursued in a proactive or a reactive fashion (e.g. services offered on request). The emergence of these roles brings with it an important challenge because while they necessitate a strengthening of local actors’ capacities, at the same time they require greater awareness, an approach that is more sensitive and a more constant presence on the part of the agents of the state. It is noteworthy that Quebec, the reference point, is in category A of the typology of jurisdictions; this category is characterized among other things by a permanent accompanying role, which a priori puts it in a privileged position to continue along with this type of transformation.

Table 5 The Emerging Roles of the State Regarding LED

Emerging Roles of the State Strengths Weaknesses or Issues To educate High capacity to produce

manuals and guides Necessity to follow up on the use of advice

To accompany or guide Access to highly qualified professionals

Necessity for continuity throughout a process Necessity for a continued presence for relatively long periods

To counsel Access to highly qualified professionals

Necessity to be seen as possessing required skills

To facilitate Access to highly qualified professionals

Need to be able to inspire confidence

To act as a source of strategic information

Easier access to information dealing directly with business and localities in their strategic planning efforts

Capacity to provide relevant up-to-date information in a timely manner

In Table 5, we have identified in a generic manner the strengths of the state and the weaknesses and challenges it faces when it fully assumes these roles. The strengths are particularly related to the state’s access to highly qualified personnel, and to a lesser extent, to easier access to strategic information for business development. The biggest challenges stem from the capacity of the state to provide appropriate and continuous support (see the second issue, A.2). A.1.2 Examples of Innovative Tools and Approaches Related to the Issue Some jurisdictions stand out because they offer a set of effective tools to local actors. This is the case for the LEADER program (Vignette 1 and 2), Oregon (Vignette 3), and Ontario

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(Vignette 4). These tools can be made available to all actors (for instance, Oregon, Ontario) over the Internet, and can also be accompanied by advice when requested (e.g. Oregon, Ontario) or in a more systematic fashion (e.g. LEADER, how to initiate and maintain a strategic planning process for local development – Vignette 2). The approach involving making available a set of tools for local actors appears as an essential component of any policy of support for LED. At the least, these tools can be made available for all actors, via the web site of an agency, a ministry, or an observatory. All these approaches appear to be reasonable for Quebec. Moreover, these tools can be sponsored by a range of actors, from the same level of government, or by the federal and provincial levels. There is also the possibility of making these tools available through ‘gateways’ or entry points associated with different regions or localities. The very nature of the information and tools that can be made available represents, in our opinion, an important opportunity to construct effective partnerships in Quebec.

Vignette 1. LEADER European Observatory (European Union)

The missions of the observatory are based on: - Identification and analysis of information and good practice in rural development; - Information about the evolution of rural areas; - Structuring exchanges of experiences; - Meeting with beneficiaries of the program; - Exchanges between agencies; - Stimulation of cooperation and support for its implementation; - Analysis of lessons learned from LEADER. Pursuing this mission has resulted in a tangible way in the production of various tools and services provided to local action groups, administrations, and other rural actors: - A monthly (LEADER - News) and a three-monthly publication (LEADER Magazine) intended for the beneficiaries of the program; - Technical files (for example ‘educational kits’) and catalogues; - An Internet Site ‘Rural Europe’ (www.rural-europe.aeidl.be); - Thematic or methodological conferences and seminars; - Direct responses to information requests by a multilingual team; - Technical assistance for trans-national cooperation.

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Vignette 2. Phases for Implementing a LEADER Program (European Union) In the framework of the LEADER program, monitoring and assessment are part and parcel of the area-based strategy for local development: 1. To undertake a territorial diagnosis that engages all local actors in working towards

creating a medium and long term vision of the area; 2. To formalize the objectives, define strategic axes, and to rank actions to be undertaken; 3. In relation to implementation of actions on the ground, Local Action Groups also plan the

setting-up of a support and accompaniment mechanism to help project initiators and managers;

4. To produce direct results; 5. The quantitative and qualitative assessment of the impact of the local project; 6. Analysis of the added value of LEADER at the local level, which is then re-integrated into

a new territorial diagnosis, the reference tool for the area’s strategy

Vignette 3. Tools for Local Economic Development (Oregon) On the web site of its Department of Economic and Community Development, Oregon presents a set of tools that are particularly interesting and useful for local and regional actors. Among the tools presented, there are guides to help local actors: To undertake an assessment of resources; To undertake an assessment of their community capacity; To assess their institutional capacity in relation to the management of change. These tools were developed from a partnership project involving the Department of Economic and Community Development, the Governor’s Office of Community Development, and the Community Solutions Team, composed of directors from six agencies; it relates to all aspects of development, including economic development. These tools are located on the Department’s web site: www.com.state.on.us/developments.htm.

Vignette 4. Resource Centre (Ontario) The Community and Economic Development Resource, under the responsibility of the Ministry of Municipal Affairs and Housing, is aimed at helping communities define a range of LED planning strategies. This is one of the most interesting and relevant tools for local actors involved in LED processes. The resource centre consists of a body of analytic tools and economic statistics. It permits monitoring of economic sectors via this web site: www.cedr.gov.on.ca/cedr/ecds.nsf/home.

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A.2 The Continuity and Coherence of Support, and Capacity Building for Local Actors A.2.1 Understanding the Issue. If we accept the new emerging roles for states regarding LED, it is also important to note that the interventions have often changed – in their orientations, their responsibilities, and the importance of budgets allocated to them. Among the jurisdictions in this study, it is noted that the responsibility for the community economic development program (i.e. LED) in rural areas (including medium-sized towns), was recently transferred from the Ontario Ministry of Agriculture and Food to the Ministry of Municipal Affairs. Moreover, LEADER, one of the oldest programs in local development with a reputation for having been a success, is now facing some uncertainties. In France, the “landscape” of the territories or areas of intervention and the organization of the management of development has become a complex system with many overlapping intervention levels, which are superimposed on one another time and time again. Other changes of responsibility have been noted in this study, including the State of New Hampshire. Obviously, there is always some logical explanation for such changes, but they are not necessarily logical explanations that are related to local economic development processes. It is obvious that such changes can create uncertainty and a level of complexity that is difficult for local actors to handle, especially if they have not yet reached a level of autonomy that allows them to put such changes into their proper context. This uncertainty was confirmed by respondents contacted during the study. Furthermore, while in some jurisdictions a particular ministry deals with the whole domain of local economic development, in both rural and urban areas (e.g. New South Wales, the American states retained), several ministries usually share an interest in local development (e.g. a Ministry of Municipal Affairs, a Ministry of Education, and so on). This is quite normal if we consider local development to be a transversal perspective, cutting across different sectors and themes. In other cases, there is a distinction in terms of the types of area and several ministries share responsibility for LED (e.g. Ontario). In both cases, the issue of cooperation and consultation between ministries and agencies is raised, even in areas where the different programs are well defined. A.2.2 Examples of Innovative Tools and Approaches Related to the Issue The issue is substantial. How can a common front be presented in order to help local actors in their efforts when there are many agencies and ministries involved in local development? Setting up an inter-ministerial committee is one approach, but this type of coordination often remains aloof from local actors who really should be the object of such negotiations and joint actions. In the jurisdictions analysed, some innovative approaches were identified. In particular, the Community Solution Teams of Oregon (Vignette 5), and the JUMP Teams of Ontario (Vignette 6) are noteworthy. What is innovative about these two approaches is not so much the consultation between ministries and agencies, but rather that the consultation targets problems raised by local actors and proposes explicit development solutions. The support given at the highest political level in the State of Oregon to this initiative underscores the importance given to this initiative in this jurisdiction.

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Vignette 5. Community Solution Teams (Oregon)

In Oregon in 1998, the state created the Community Solutions Office, which represents an innovative approach to consultation between ministries, and local municipalities and communities. The Office works in close collaboration with the Governor’s Office and the five Community Solution Teams (there are five regional coordinators who ensure the connection between, on the one hand, the Community Solutions Office, and the multi-agency teams in each region). The main objective is to focus the attention of the State’s agencies on working in collaboration with local municipalities and communities. The approach is composed of multi-agency teams that are set up in a network in order to maintain dialogue between them. The initiative encourages an integrated approach, and aims, on the one hand, to improve the efficiency of service delivery to local municipalities, and, on the other hand, to improve services and resolve problems identified by local actors (including how to profit from certain development opportunities). In theory, it is up to local municipalities and other local actors to apprise regional coordinators (or other members of these teams) of the nature of the problem or the opportunity. This reactive approach has had many specific successes.

Vignette 6. JUMP Teams (Ontario) JUMP Teams have recently been deployed by the Government of Ontario to help rural municipalities (including medium-sized towns) profit from development opportunities, and strengthen their local economy. They are teams composed of ministry representatives and experts set up in order to tackle a development problem or opportunity identified by one or more local municipalities. Among the available resources is the OSTAR Program that can invest in projects that lead to: - the diversification of the commercial environment in rural regions; - the creation of long-term employment; - conditions encouraging economic development; - the creation of new markets and information sources, development tools and resources, and the strengthening of the rural economy. A.3 The Assessment of Efforts (programs) A.3.1 Understanding the Issue The importance of being publicly accountable for the way in which they spend taxpayers’ money is now a leitmotiv for most governments. Furthermore, the assessment of efforts is also useful in program management, and also for appreciating the overall results of efforts devoted to public programs. Paradoxically, aside from the internal assessments by ministries and agencies responsible for programs, there are very few overall assessments of different programs that are actually made public. Some respondents in this study even went so far as to say that overall assessments were not necessarily a priority in themselves (e.g. New South Wales, British Colombia, and Ontario for rural areas). Yet, on the other hand, some

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programs are subjected to systematic assessment that is obligatory and planned on a periodic basis (e.g. LEADER and even the RNP in France). Assessment of interventions in LED represents an important challenge. One of the reasons for this is because responsibilities have become increasingly shared in the context of emerging roles. It has already been noted that the more innovative programs are characterized by state roles that are emerging rapidly, namely the roles of guide, educator, facilitator, counsellor, strategic information source, and, more generally, the work of consultation between agencies and ministries (e.g. Ontario’s JUMP Teams in Ontario, and the Community Solution Teams of Oregon), making the task of local organizations for economic development – and local municipalities – easier. This brings up again the redefinition of the role of the state. The tendencies that have been emerging for some time provide evidence of the redefinition of the role of the state in the management of society and the economy. These new roles represent the recognition of certain realities such as the existence of multiple actors and interests in development processes. This underscores the fact that responsibility for success in LED is a shared one. Thus, assessing processes at the local and regional scale with different types of intervention being pursued in different ways – often ‘made to measure’ interventions – in different localities becomes an extremely difficult exercise in comparison. Perhaps because of that, it was noted in several jurisdictions that no particular priority is given to program assessment (other than budgetary control, the enumeration of activities and tangible ‘results’ – events, actions, businesses assisted, . . .) (e.g. New South Wales). The last elements concerning the question of assessment in relation to multiple actors, and which renders even more complex any attempt at assessment, are the relationships that exist between the interventions of a federal state (Australia, U.S., Canada), and the immediately lower government level (e.g. Australian states, member countries of the European Union, Canadian provinces), particularly from the perspective of the principle of subsidiarity of interventions. Moreover, when there are some attempts to undertake assessment in relation to LED or economic development in a general way (e.g. the different contracts given by U.S. states to the National Association of State Development Agencies (NASDA), the relatively limited range of approaches that are used is very evident, often dealing only with economic aspects rather than with territorial or area-based aspects. A.3.2 Examples of Innovative Tools and Approaches Related to the Issue In terms of assessment of programs at the local and regional levels, the European approach appears to be the most innovative. In all the programs of the European Union, right from the beginning financing is set aside for undertaking assessment on a systematic basis, generally by third parties, at different points in a program’s ‘life’ (beforehand, in mid-course and at the end of a program, etc.). The tools provided by the LEADER Observatory can be noted particularly (vignette 5). In point of fact, it is the continuous assessment approach, seen as a tool for orientation and management by local actors in their own processes of planning and action that seems the most promising. Moreover, this approach, which implies monitoring and strategic scanning, is capable of supplying the strategic information that will permit local actors (and also states) to refine and improve their programs and actions. The whole issue of assessment as presented here is relevant for Quebec. The division of responsibilities between different agencies and ministries and governmental levels (e.g.

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SADCs (Community Futures Corporations) and the CLD) has become progressively more complex throughout the 1990s. Such an environment suggests the potential, despite the difficulties, for setting up partnerships between the different levels of government. Moreover, the importance given to Quebec metropolitan centres by the federal and provincial governments, notably Montreal, complicates any attempt to assess the results of LED in different regions on an absolute basis. Assessment, as a vector of change, must however have a role in setting up real public policy and programs that stem from public policy. A.4 The Overall Effort for Economic Development across the Whole Area of a Jurisdiction A.4.1 Understanding the Issue The overall effort for economic development deals potentially with the whole area of a jurisdiction (metropolitan centres, rural regions, peripheral regions, sectors). The results of efforts in terms of LED for regions that are in crisis, for example, are affected by the interventions that are aimed at the metropolitan centres and leading sectors. Even in the context of LED alone, it is difficult to compare the effectiveness of the efforts linked directly to LED processes (both the efforts of states and those of local actors) in the urban fringes of a dynamic metropolis, such as Toronto, with the efforts made in the Gaspé in LED. This raises an important question in terms of overall results, even accepting the practically impossible task of attributing results to a particular type of intervention. If states devote proportionately more efforts to economic engines of growth (both regions and sectors), will this endanger, in the long term, the efforts directed towards less developed sectors and areas? This remains an open question. Even though important efforts have been devoted to local economic development and that this type of approach is recognized in the political and public discourse, it is clear that in most jurisdictions other processes or approaches are working against local economic development in those regions that are the most removed from metropolitan centres. In particular, it is noteworthy in this respect that, in many jurisdictions, an emphasis has been given to preoccupations concerning economic engines of growth, i.e. the principal metropolitan regions and leading sectors (industrial "clusters”). For instance, the ministry in New South Wales involved in LED only effectively deals with areas outside the metropolitan region of Sydney. In British Colombia, the same emphasis is placed on the Vancouver region. In France, preoccupations are expressed that the Paris region should not fall further behind other European metropolitan centres, and other world metropolitan centres; the lagging nature of the Paris region economy is partly related according to certain observers to the successful economic development of other French regions (especially the other large metropolitan centres of Marseilles, Lyon and Grenoble). In Ontario, the focus has been placed particularly on the urban centres, which possess a healthy economy. The general interest given to the economic engines of growth is very much based on the hypothesis that other regions will benefit from the economic spin-offs from the growth of these engines of growth. Yet again, the question of the reality of these spin-offs remains an open one. Other forms of non-area specific policies, such as the support given to certain clusters (e.g. the aeronautic industry and the pharmaceutical industry in several jurisdictions) or some other form of an economic engine of growth in fact translate into policies that have direct impacts on a limited number of areas, notably metropolitan regions.

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A.4.2 Examples of Innovative Tools and Approaches Related to the Issue It is not the intention in this report to develop an analysis of policies that favour metropolitan regions as the economic engines of growth. However, there is growing interest in certain jurisdictions for developing different types of clusters or sets of economic activities that can be developed in rural areas and within the context of systems of small and medium-sized towns (e.g. the recent political discourse of the governor of the State of Maine). Furthermore, several jurisdictions have been studying other regional systems, such as regional innovation systems (the European Union) and local production systems (France) (vignette 7). These systems may also benefit networks of small and medium-sized urban centres beyond metropolitan regions, and have recently been the object of study recently by the DATAR as an integral component of a development scenario for France targeted on non-metropolitan regions. It is important to note then that an emphasis on economic engines of growth does not exclude LED in non-metropolitan regions. LED furthermore is not simply a set of efforts that should be appreciated just from the perspective of the whole area of a jurisdiction (even though this is a legitimate perspective), but also as a set of efforts and results that must be appreciated from the perspective of each local community and area concerned. B. Issues for the Localities and Local Actors B.1 Integration of the Different Dimensions of Local Development, as well as the Representation of the Different Segments of Actors and Interests B.1.1Understanding the Issue Local economic development arises from broader processes, relating to all the dimensions of development of an area. The holistic dimension of LED is dealt with in greater detail under the next issue. Several jurisdictions emphasize that they undertake LED while also pursuing social development and a higher quality of life for residents (e.g. the American states). Clearly, LED is based on other aspects of the community, such as the educational system, the highway

Vignette 7. Local Production Systems (LPS) (France)

This is a particular organization of production located in a local or regional territory. This organizational structure functions as a network of interdependencies composed of productive units with similar or complementary activities that divide the work between each other (companies producing products or services, research centre, training organizations, centres for technological transfer and scanning, etc.). The functions of an LPS are to define a collective strategy, to combine productive investments and supplies, to share skills and training, to develop commercial and common promotional actions, to innovate and undertake technological scanning, to manage human resources and finally to create joint ventures production companies. Because they can respond to issues relating to regional planning and local economic development, they have at their disposal certain financial resources, from the central state (notably the DATAR), municipalities, economic expansion committees and chambers of commerce, particularly at the point of planning and start-up of the SPL.

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infrastructure and local culture. Furthermore, these other dimensions are also supported by LED and economic development in general.

The actors directly involved in LED thus need to enter into communication on a regular basis with actors who represent the other dimensions of an area’s community. There are several ways of organizing this integration of the different dimensions and their actors. There is not necessarily any one solution that, a priori, is best for a given area. Each situation requires its own analysis and diagnosis. The representation of the different segments of actors and interests is an important component of this issue that concerns the integration of the different dimensions, particularly in jurisdictions where there is a certain shift towards a greater implication of elected officials in local development organizations (e.g. the imminent Regional Conferences of Elected Representatives and the CLD in Quebec, and the pays in France). How can productive relationships between local and regional elected representatives and other local actors be achieved in Local Economic Development processes, especially with those actors who have their roots in civil society? LED cannot be conceived only as a set of technical activities that rely exclusively on the creativity and will of entrepreneurs and investors to pursue business projects. For certain programs, such as those related to the Community Development Block Grant Program in the United States, one of the priority objectives is formulated in terms of the integration of certain marginalized segments of the population into the economy. Necessarily, this implies the need to take participative processes into account. Moreover, the identification of the choices in a context of a diagnosis of an area requires participation of the different segments of actors and the population at several levels, including the identification of needs and the assessment of local capacities (see the tools presented to assist municipalities and other local actors by the State of Oregon – Vignette 3), and the choice of target objectives for the socio-economic development of the area (including economic development objectives). B.1.2 Examples of Innovative Tools and Approaches Linked to the Issue This issue, linked to the next one, can be confronted by local actors supported by state agencies, through the appropriate supply of tools and advice (e.g. the assessment tools of community and institutional capacity offered by Oregon – Vignette 3). The setting up of an observatory can also partly respond to this type of issue. The case of the LEADER Observatory illustrates this well (Vignette 1). It has not only helped in the collection and pulling together of a certain amount of data that are useful in undertaking local diagnoses, it has also helped formalize methodological tool kits, for the benefit of elected representatives, professionals and the actors of an area, thus presenting the different facets and dimensions that have to be taken into account and integrated in a local economic development process. In this way, it also becomes a methodological reference tool that reveals the minimal conditions that are necessary for responding to the issue of the integration of the different dimensions of local development and the representation of the different segments of actors and interests.

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B.2 The Relevance and the Establishment of Holistic Area-Based Processes in Other Types of Area B.2.1 Understanding the Issue The typology of jurisdictions (section 3.2) revealed one group of jurisdictions, including Quebec, for which there is a holistic approach, associated with a clear territorial basis for LED, the emerging roles for the state and a relatively standardized approach, in terms of the organization of LED. As regards a global approach, Quebec has already experienced the development of innovative tools in terms of organization of LED, notably in the SADCs and later on the LDCs. Initially, the SADCs had a very holistic approach that was broadly oriented to local development and the integration of the area’s actors in planning and action for the development of the area. Even today, the SADCs have the potential to play an important role in encouraging holistic development even if they are oriented to economic development, as are the LDCs. If it is accepted that this approach to LED is the one to encourage, one of the questions that arises is: how can this global approach to LED that is pursued especially in programs for rural areas be encouraged and transferred to cities and metropolitan regions? The territorial approach described above stands out as an approach that allows an easier integration of LED into an area and a more effective mobilization of local and regional actors. This does not exclude the pursuit of thematic and sector-based processes within the areas. It is relatively easy to understand the implementation of this process in rural areas with their network of small or medium-sized towns. A smaller population has the advantage of making it easier to identify and mobilize actors, and to coordinate the different organizations. The interest in transferring this approach to urban areas is not new; we just have to look at what has been accomplished by the Community Economic Development Corporations (CEDCs) (CDÉC – Corporations de Développement Économique Communautaire) in Montreal in the social economy domain and socio-economic development. However, while their process is area-based, including the responsibilities for managing the Local Development Centres that they have been given, not all CEDCs have been able to integrate the world of business into their processes or their boards of directors. Nonetheless, the potential exists for better coordination in urban areas of the activities that are involved with economic development based on the more traditional approach, with the activities of the other organizations that operate in the domain of social development or the social economy. B.2.2 Examples of Innovative Tools and Approaches Linked to the Issue We have seen that the global approach is particularly present:

1. In programs centred on an area (community, region) (e.g. LEADER – Vignette 2 on lying out the steps for a LEADER program, RNP and pays in France, and the programs in which the CEDAs in New Brunswick are involved); and

2. Where there is a true consultation between the different agencies and ministries aimed at coordinating their actions in collaboration with local organizations, including local communities (Vignettes 5 (Oregon) and 6 (Ontario), even if in these two cases there is no real systematic program of intervention across the jurisdictional area).

Other models, which may foster a holistic and integrative approach, are found in the Contracts between State and local municipalities (towns / cities) and regions (e.g. France – Vignette 8).

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Vignette 8. Intervention of the French State and the Regions within the Framework of CPER (France)

Within the framework of a relatively recent contractual relationship (the State-Region Plan Contract – CPER), the French State and the regions offer LED processes: - To support projects aimed at favouring territorial coherence and solidarity between local actors; - To put the financial means at their disposal for engineering and investment programs; - To set up a mission to coordinate area-based contracts to assure the mechanism is accompanied with the objective of achieving coherence, associating the financial partners, and providing a mechanism for follow-up and assessment or evaluation. This process is currently being tried out, suggesting that it is not yet up to full steam; it still demonstrates a certain number of inadequacies compared to its stated objectives. Nevertheless, this type of contractual relationship between a central state and a local municipality is relatively innovative, all the more so given that these CPER must take regional specificities into account.

4.2 Challenges and Opportunities in Quebec for Policies and Programs in Local Economic Development

In this last part that concludes the report, the main elements of importance are recalled and proposals are presented for the elaboration of a policy and intervention approach in LED. In fact, our purpose is to see how political and public sector actors can confront the challenges and seize the opportunities stemming from the emerging issues in relation to the roles of a central state in the LED process. First, we recall the broad features of LED, whose different components were described in Figure 1. Next, the tools and approaches that appeared to us to be the most innovative are identified. Then, we look at how public sector and political actors may appropriate these tools and approaches. In this section, contrary to the presentation made in section 4.1, the tools and the approaches are presented generically. Our starting point or conceptual choice in terms of a proposition is that any public sector or political actor, in order to optimize both its own contribution and the overall LED process, must position itself and clearly identify where it stands in the context of the emerging roles of a central state. In other words, it is based on this context that public sector actors will increasingly assume the role of accompanying guide, educator and facilitator in relation to local actors involved in the different steps of the LED process (mobilization, strategic planning, construction of networks and partnerships, appropriation of methodology and assessment). Public sector actors will assume a role that is more proactive than reactive, in all aspects including service delivery. Public sector actors must also involve themselves more strongly in collaborative arrangements, including partnerships, with other private and public actors, in order to help local actors achieve their objectives.

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Moreover, the approach that should be encouraged must be clearly territorial or area-based and holistic and be based on an adequate representation of the different segments of interests in the context of holistic local economic development processes (not necessarily in the context of just one organization). This means that they will have to encourage the development of a territorial or area-based diagnosis and a real participation of relevant local actors. 4.2.1 Local Economic Development: Recall Two main components of LED are identified:

The environment of LED The key components of this environment are: the local and regional actors and all that pertains to capacity building for local and regional actors to act with effectiveness (capacity, networking, leadership) in the construction of processes that lead to actions to respond to the needs of local communities in terms of economic development, always in a realistic manner. From our understanding and analysis of the different programs and tools observed in the retained jurisdictions, the following approaches and tools are among the most promising in the context of the emerging roles for the state:

1. Offering methodological and/or technical tools that are accessible and easily usable by local actors (e.g. tools in the form of accessible documents on well identified web sites). These tools can be either grouped together on a web site of an observatory for territories or simply on the site of the central state. The tools may be of many types but among those that appear the most important to include are educational and methodological tools dealing with the processes of local economic development (e.g. a guide of good practice), tools for carrying out a sound local diagnosis (the elements that must be included in any territorial diagnosis and the role of the diagnosis in the process of local economic development), and finally, tools to help lay out a schedule for the evaluation or assessment of the processes and practices of local development;

2. Counsellors available for an area or a set of areas capable of undertaking a follow-up and acting as a guide throughout the local processes. The number and the extent of the different areas in Quebec makes it difficult for the central state to be as close as possible to the territorial or area-based processes. However, it can appropriate instruments of the type that could be found in an observatory to help in the collection, drawing together and analysis of the results of the different processes, thus bringing added value to local actors. In effect, local actors are interested in being able to fill in the gaps identified through an analysis of their results, and this may be achieved through comparisons with other territories and information supplied through government programs;

3. Information available to local actors about their own local territory, with the potential use of distance training sessions in which actors from other jurisdictions are also involved.

In the above, several of the roles and the tools identified as promising centre on the idea of a territorial observatory. We believe that there is good reason for public sector and political

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actors to contribute to the implementation and operation of such a tool to assist territories or areas. In terms of the processes of strategic thinking and action themselves (the role of local actors within the framework of their organizations and more generally, the role of every collective actor in the more global process or processes of local development), the approaches and tools that seem most promising are:

1. Placing an emphasis on the duo territory–actors. This duo, which has often been neglected, is a driving force of all local economic development processes. The definition of a territorial project should be become a priority and an essential step for every new programming of local policy by local actors. Given that territories can evolve quickly from one period of five years to another, it is desirable that this type of process of development of a territorial project be the object of an on-going updating process. Furthermore, tools and territorial processes are frequently based on territories that overlap or are superposed on each other. It is necessary to think carefully about the choice of the pertinent territory and its use as the unique basis for exchanges. A public sector or political actor can initiate thinking about the territory-actors duo and ensure that it is taken account of;

2. Providing support to organizations to ensure that they position themselves effectively in the processes of overall development of their territory. Within the framework of this same type of support, the specificities of each of the territories each potentially with their own system of actors imply that the organizations do not necessarily and systematically adopt the same roles nor the same functions. It is therefore important to recognize local and regional specificities in the construction of the organizations, and the identification of their roles and functions. Once again, the definition of a territorial project can serve as a constant reference point in the definition of the functions and roles that the local consultation organization will be able to play;

3. An encouragement to the organizations to initiate and maintain effective communications with all the other actors in their area, including those dealing more particularly with the other dimensions of local development (e.g. social development). In effect, on several occasions in this report we have emphasized the importance of taking into account all dimensions in a process of local economic development. However, what is expressed and well laid out in documents is not necessarily easy to implement. To achieve this, it is sometimes desirable to “force” somehow the situation by proposing, within the framework of certain programs, measures to encourage taking into account all the actors and relevant sectors;

4. Encouraging the organizations (and their municipalities) to reflect on their relationships with neighbouring areas in order to create cooperative and partnership approaches. Following the example of the French movement towards inter-communality (inter-municipal cooperation and structures), the development of relationships between local actors and their neighbouring areas rarely comes from the local actors, for various reasons. Public sector actors can therefore play a role as promoter of good practice between neighbouring municipalities. Once again, this brings up the two elements noted earlier: the

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territorial project and programs that encourage a broader partnership.

The components of business This component has generally been treated by upper levels of government, i.e. supra regional or supranational levels. This component integrates programs and assistance for business start-up and development (particularly small business), interventions potentially revolving around each of the components of the business (e.g. labour force training) and on help in creating funds to assist business development. Nevertheless, many local and regional organizations, including municipal economic development offices of cities and towns that follow a more traditional approach, are also involved in these domains linked to business development. On the one hand, certain activities of local organizations can be supported by ministries and their agencies (e.g. assistance in the creation of working capital to support business start-ups or business projects). On the other hand, it is possible that resource centres or offices that are the responsibility of upper level authorities (e.g. the Small Business Centres in Ontario, and the regional service offices of the State of New South Wales in Australia) become an important component of a local economic development strategy without there being a formal role for local actors within those offices. The approaches and the tools that seem most promising in these domains are:

a) Consultation processes at the local or regional level by ministries or agencies that deal with one or several domains of business development (e.g. labour training, access to capital, etc.);

To be effective, this consultation must integrate two components:

i. A willingness for real consultation between the different ministries and

agencies at the macro scale (e.g. similar to that of the State of Oregon); and ii. Creating a framework for consultation groups between ministries and

agencies at local and regional levels. For Quebec, it would be desirable that these consultation “teams” could also directly involve local and regional actors rather than creating “teams” composed only of professionals from the ministries and agencies. It would also be desirable that these teams be created within each administrative region and that the opportunities that they present to local and regional actors are effectively communicated to them.

Although several jurisdictions possess programs aimed at encouraging consultation between ministries and agencies in LED, the role that these teams take on is not necessarily proactive. In other words, they tend to wait for requests to come from local actors rather than going out and dealing with them directly. In practice, these teams can be activated on the ground by government agents who suggest their use to local actors. But it remains desirable, for reasons of equity and capacity building for autonomous development, that the action of such teams should be more proactive and based on analyses of needs at local and regional levels. A public sector or political actor may contribute to this in two ways: first, through its contribution in terms of supply of services (tools for observing, constructing and assessment of territories) and second, by the direct and proactive implication of its offices in the different regions, where they exist. In other words, such an actor can take the initiative in starting and accompanying this process involving the construction of area-based teams.

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This approach can also include aspects other than economic development. One of the greatest challenges is found in jurisdictions where there are two levels of government, each possessing responsibilities that can overlap, i.e. in federal jurisdictions. Ideally, the consultation teams should integrate representatives from both levels of government (e.g. the province in the case of Canada). Although this is necessarily easier said than done, it does seem essential to us to encourage this practice locally.:

a) By recognizing the necessity of an intervention both of local and regional actors and actors from the upper level (the State), it would be important to ensure systematic cooperation between local and regional actors and the State. The example of the contract of the City of Montreal provides a good illustration of the form that cooperative approaches and partnerships between the state, local municipalities (cities) and local actors might assume. b) The tools and efforts to help undertake a territorial diagnosis in terms of the state of “health” of each of the components of the business and its environment. The roles of counsellor and that of acting as a source of strategic information require a concerted effort by central states. It is recommended that a jurisdiction create, as noted on several occasions in this report, an observatory aimed at development of its territories. This observatory could become a priority innovative element to help local actors undertake their own diagnosis and identify the opportunities that are presented. Moreover, this observatory can also become an appropriate place for the preparation of territorial diagnoses, as well as a resource and advising centre for the different ministries and agencies and for local and regional actors. It can also provide an opportunity for a joint initiative between two levels of government within the framework of a federal structure.

In such a structure, the following functions may be located:

• Tools to assist local and regional actors concerning different dimensions of LED process;

• Relevant documentation on LED, potentially available on a web site (see Oregon and Ontario);

• A research function, notably how to undertake a territorial diagnosis; • A scanning function (economic trends and events, policies, …); • A training function; • An advisory function.

The combination of functions actually included would require dialogue with all local and regional actors.

Through the analysis of the emerging roles of a central state in relation to LED, it has been possible to better understand the evolving functions that public sector and political actors could assume for Quebec’s regions. The key words of this intervention are: diagnostic, territory, holistic, proactive, accompanying guide, methodology, counsellor, and assessment. Given the history of previous interventions in Quebec, the context for refining and developing innovative programs is very favourable. One of the key conditions for success will be the construction of partnerships between levels of government, a condition that is necessary for Quebec’s economy and society to be able to benefit fully from the innovative approaches and tools in LED.

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5. Bibliography

5.1 Documents Australia COLLITS, Paul (1999) Regional Development Issues, Policies and Programs: The New South Wales Approach. COLLITS, Paul and HILL, Stephen (2000) What drives regional development success? The Cases of Wales and New South Wales. Manuscript. COLLITTS, Paul (2000) Policies for the Future of Regional Australia. Manuscript. COLLITTS, Paul (2001) What’s Wrong with Enterprise Zones. Communication presented to the 25th Annual Conference of the Australian and New Zealand Section of the Regional Science Association International, Bendigo, October 2001. NEW SOUTH WALES DEPARTEMENT OF STATE AND REGIONAL DEVELOPMENT (1999) Regional development issues, policies and programs: the New South Wales approach. Canada AGENCE DE PROMOTION ÉCONOMIQUE DU CANADA ATLANTIQUE (1998) Perspectives comparatives du développement régional. BROUARD, François (2003) La veille stratégique, un outil pour favoriser l’innovation au Canada, Eric Sprott School of Business, Carleton University. DÉC (2003) Rapport d’évaluation « formative » du programme de développement des collectivités (PDC). DÉC (2002) Rapport final d’évaluation du programme IRS de Développement économique Canada. DÉC, Stratégie de développement durable, plan d’action 2000-2003. DÉC (2000) Enquête sur le rôle de l’État dans le développement économique. DÉC (2000) Evaluation du programme « Entreprises rurales » de la stratégie régionale Bas-Saint-Laurent et Gaspésie / Iles de la Madéleine. DÉC (1997) Profil socio-économique des Fonds de développement local et régional au Québec. INFANTI, Jennifer (2003) Répertoire du soutien gouvernement provincial et territorial en matière de développement économique communautaire au Canada.

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OCDE (2002) Examens territoriaux de l’OCDE – Canada. RÉSEAU CANADIEN DE DÉVELOPPEMENT ÉCONOMIQUE COMMUNAUTAIRE (2003) Répertoire du soutien gouvernemental provincial et territorial en matière de développement économique communautaire au Canada.

British Columbia MARKEY, Sean, PIERCE, John, VODDEN, Kelley and ROSELAND, Mark (forthcoming, 2004) Second Growth: Community Economic Development in Rural and Small Town British Columbia. Vancouver: University of British Columbia Press, 456pp manuscript.

Quebec MINISTÈRE DE LA RECHERCHE, DE LA SCIENCE ET DE LA TECHNOLOGIE (2002) Un premier bilan de la politique québécoise de la science et de l’innovation. QUÉBEC (2002) Le rendez-vous national des régions – Le cahier des propositions régionales.

Ontario GERTLER, Meric (2003) Smart growth and the regional economy.

New Brunswick BRUCE, David (forthcoming, 2004) Community Economic Development in New Brunswick. Manuscript for a chapter. In: Susan Hodgett (Queen's University Belfast), David Johnson (University College of Cape Breton), and Stephen Royle (Queen's University Belfast) (ed.), Doing Development Differently: Development Perspectives from Atlantic Canada and Ireland. Leeds, UK. Fernwood Books. MINISTÈRE ENTREPRISES NOUVEAU-BRUNSWICK, Rapport annuel 2001-2002. Europe DAUL, Joseph (2003) Discours. Député européen. Président de la Commission de l’Agriculture et du Développement Rural. ASSOCIATION EUROPÉENNE DES AGENCES DE DÉVELOPPEMENT (2002) Eurada Magazine. N°1. ASSOCIATION EUROPÉENNE DES AGENCES DE DÉVELOPPEMENT (2003) Eurada Magazine. N°2. ASSOCIATION EUROPÉNNE DES AGENCES DE DÉVELOPPEMENT (2003) Eurada-News. N°227.

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ASSOCIATION EUROPÉNNE DES AGENCES DE DÉVELOPPEMENT (2003) Eurada-News. N°229. ASSOCIATION EUROPÉNNE DES AGENCES DE DÉVELOPPEMENT (2003) Different types of development agencies in Europe. COMMISSION EUROPÉENNE – DG AGRICULTURE (2003) La réforme de la PAC. Newsletter – Édition spéciale. COMMISSION EUROPÉENNE (2003) Les politiques structurelles et les territoires de l’Europe : compétitivité, développement durable et cohésion en Europe de Lisbonne à Göteborg. COMMISSION EUROPÉENNE – DG POLITIQUE RÉGIONALE (2003) Partenariat avec les villes : l’initiative communautaire URBAN. COMMISSION EUROPÉENNE – DG POLITIQUE RÉGIONALE (2002) Les politiques structurelles et les territoires de l’Europe. COMMISSION EUROPÉENNE – DG POLITIQUE RÉGIONALE, DG AGRICULTURE (2002) Les politiques communautaires et la montagne. Actes de la Conférence. COMMISSION EUROPÉENNE – DG POLITIQUE RÉGIONALE (2001) Au service des régions. COMMISSION EUROPÉENNE (2001) Unité de l’Europe : solidarité des peuples, diversité des territoires. Deuxième rapport sur la cohésion économique et sociale. Volume 1. COMMISSION EUROPÉENNE (2001) Unité de l’Europe : solidarité des peuples, diversité des territoires. Deuxième rapport sur la cohésion économique et sociale. Volume 2. COMMISSION EUROPÉENNE (1999) Les actions structurelles 2000-2006: commentaires et règlements. COMMISSION EUROPÉENNE – RECHERCHE ET POLITIQUE RÉGIONALE, Voies régionales vers le développement durable. Etudes. EUROPEAN COMMISSION – AGRICULTURE AND RURAL DEVELOPMENT (2003) Rural Development country profiles. EUROPEAN COMMISSION – DG AGRICULTURE (2003) CAP reform: a long-term perspective for sustainable agriculture. EUROPEAN COMMISSION (2002) Creating smart systems: a guide to cluster strategies in less favoured regions. EUROPEAN COMMISSION (2002) Regional innovation strategies under the European Regional Development Fund Innovative actions 2000-2002. EUROPEAN COMMISSION – DG RESEARCH (2002) Benchmarking national research policies. LANDABASO, Mike and MOUTON, Bénédicte. Towards a different regional innovation policy: eight years of European experience through the European Regional Development Fund innovative actions. European Commission – DG Regional Policy.

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LANDABASO (2000) Reflections on US economic development policies: meeting the “new economy” challenge. European Commission – DG Regional Policy. LEADER II (December, 2003) Une évaluation est attendue de ce programme d’ici 6 semaines à 2 mois). LEADER II, Assessing the equilibrium between autonomy and accountability: the evaluation of LEADER II. LEADER I, Evaluation Ex Post de l’initiative communautaire LEADER I. Résumé exécutif. LEADER +, Cahier des charges de l’Observatoire européen des territoires ruraux. OBSERVATOIRE EUROPEEN LEADER (2001) LEADER : d’une initiative à une méthode. CD-ROM. France CAISSE DES DÉPÔTS ET DES CONSIGNATIONS (2003) Prospective et développement territorial. Documentation française. CAISSE DES DÉPÔTS ET DES CONSIGNATIONS (2003) Un essai de typologie des formes du développement territorial en France. COMMISSARIAT GÉNÉRAL DU PLAN (2003) Les aides publiques aux entreprises: une gouvernance, une stratégie. COMMISSION EUROPÉENNE (1999) Tour de France des régions : 27 projets soutenus par les Fonds structurels européens. DATAR (2000) LEADER + : programme national français. DATAR (2001) Les fonds structurels européens. Documentation française. DATAR (2002) Les contrats de plan État-Région. Documentation française. DATAR (2001) Les pays. Documentation française. DATAR (2001) Les agglomérations. Documentation française. DATAR (2002) Les systèmes productifs locaux (SPL). Documentation française. DATAR (2002) Les pôles d’économie du patrimoine. Documentation française. DATAR (2003) Quelle France rurale pour 2020 : contribution à une nouvelle politique de développement rural durable. Documentation française. ENTREPRISES, TERRITOIRES ET DÉVELOPPEMENT (2002) La lettre du développement local. N°21. ENTREPRISES, TERRITOIRES ET DÉVELOPPEMENT (2002) La lettre du développement local. N°23.

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ENTREPRISES, TERRITOIRES ET DÉVELOPPEMENT (2003) La lettre du développement local. N°24. ENTREPRISES, TERRITOIRES ET DÉVELOPPEMENT (2003) La lettre du développement local. N°25. ENTREPRISES, TERRITOIRES ET DÉVELOPPEMENT (2003) La lettre du développement local. N°27. ENTREPRISES, TERRITOIRES ET DÉVELOPPEMENT (2002) Les politiques régionales de soutien aux territoires. Le dossier de l’Observatoire. N° 2. ENTREPRISES, TERRITOIRES ET DÉVELOPPEMENT (2003) Vers une approche durable du développement territorial. Le dossier de l’Observatoire. N° 7. LACHMANN, Jean (1997) L’action économique régionale. United States

Oregon

National Association of Development Organizations (2003) Federal state regional commissions: Regional approach for local economic development. Various BRYANT, Christopher (1999) Community Change in Context. In: John Pierce and Ann Dale (dir.), Communities, Development and Sustainability Across Canada. Vancouver: UBC Press, pp. 69-89. GLOBAL ENTREPRENEURSHIP MONITOR (2001) Canadian National Executive Report 2001. MOUSSALLY, Sergieh F. (2000) Un levier principal au développement régional: l’autonomie décisionnelle et fiscale. NINACS, William (1997) Conditions de réussite de la mise en œuvre de politiques et de dispositifs innovateurs en faveur de l’emploi et du développement local. NINACS, William (2003) Financement des initiatives communautaires de développement en milieu rural. Ottawa : Rapport préparé pour le Réseau canadien de DÉC. OCDE (2000) Questionnaire on territorial policy trends and innovations. TARDIF, Carole, KLEIN, Juan-Luis, and LEVESQUE, Benoît (2001) Le développement régional aux États-Unis et en Europe : neuf études de cas.

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5.2 Web Sites Australia ABARE (Australian Bureau of Agriculture and Resource Economics). http://www.abare.gov.au/ Agriculture, Fisheries and Forests. Policy in relation to rural regions: http://www.affa.gov.au/index.cfm COAG (The Council of Australian Governments) Intergovernmental issues and regional development: http://www.dpmc.gov.au/docs/Coag_framework.cfm Murray-Darling Basin Commission. A federal commission concerned with the development of watersheds in development: http://www.mdbc.gov.au/ Productivity Commission: http://www.pc.gov.au/ Transport and Regional Services. The main federal agency concerning regional policy: http://www.dotrs.gov.au/

New South Wales New South Wales. Department of State and Regional Development (The ministry in charge of business development and regional and local development): http://www.business.nsw.gov.au/ .

Queensland An example of a regional council (south-east Queensland): http://www.seq2021.qld.gov.au/whosinvolved/wi_rocs.asp Canada

British Columbia

BC Progress Board – an agency with the responsibility for monitoring the B.C. economy: http://www.bcprogressboard.com/

Ontario Ontario: this site provides an explanation of the different services related to economic development, including site selection, developing community profiles, and so on. The site was created by the Ministry of Economic Development and Trade, the Ontario Investment Service and the Real Estate Association of Ontario.

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http://www.2ontario.com Ministry of Economic Development and Trade (MEDT) http://www.ontario-canada.com/ontcan/en/home.jsp Resource Centre for Economic and Community Development: a site to assist actors involved in community (local) economic development to advance the economic development strategies of their communities: http://www.cedr.gov.on.ca/cedr/ecds.nsf/home www.cedr.gov.on.ca French version: http://www.cedr.gov.on.ca/cedr/ecds.nsf/home_fr

Urban Economic Development Branch (UED) (MEDT): a unit whose mandate is to construct stronger regional economies in the urban centres of Southern Ontario. The notion of competition plays an extremely strong role in the discourse: http://www.ontario-canada.com/ontcan/en/expanding/ued/ued_about.jsp Ontario Ministry of Agriculture and Food: http://www.gov.on.ca/omaf/french Data and information on rural economic development (particularly, tools and advice concerning local economic development in rural milieus, how to undertake strategic planning, develop strategies, etc.). The REDDI project will soon offer seminars and workshops on economic analysis for local actors in rural milieus: http://www.reddi.gov.on.ca United States American Chamber of Commerce in Canada: http://www.amchamcanada.ca

Maine Department of Economic and Community Development (DECD): http://www.econdevmaine.com

New Hampshire New Hampshire Community Development Finance Authority – This agency manages grants, investment and loans for a variety of community projects (housing, small business, infrastructure) through local organizations. The agency also manages a Main Street program and manages the Federal Community Development Block Grant program: www.nhcdfa.org The mission of the Office of Business and Industrial Development is to increase opportunities in the State through the attraction of new businesses and the expansion of existing ones. The Office of International Commerce works at promoting the state’s products and businesses abroad: http://www.nheconomy.com

Oregon www.Oregon.gov/ www.econ.state.or.us/developments.htm

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www.gert.oregon.gov

Vermont Department of Economic Development: http://www.thinkvermont.com Vermont Economic Development Authority (support for small and medium-sized business): http://veda.org/html/program_grid.html OECD http://www.oecd.org/document/50/0,2340,fr_2649_34417_5324658_1_1_1_37429,00.html

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APPENDIX

AN OVERVIEW OF POLICIES AND PROGRAMS BY JURISDICTION

A descriptive summary is presented in this section for each jurisdiction retained; the emphasis is placed on policy approaches as well as related programs and tools. A conscious choice has been made to select from the information available those elements that were felt to be of greatest pertinence to Economic Development Canada. Thus, this section contains the primary information base for this study, including certain perspectives provided by various respondents.

A.1. Quebec (benchmark)

A. 1. 1. The Policy Approach

The Quebec government approach in relation to LED1 is to train and accompany local development actors mainly through local and regional intermediary structures that are focussed on actors working together. Moreover, its policy statement says that Quebec subscribes to a policy of support to regional and local development, as well to the social economy (Politique de soutien au développement local et régional et l’économie sociale). This establishes the composition and responsibilities of Local Development Centres (LDCs) (Centres locaux de développement – CLD) and regional and local development councils; it also defines its role in terms of financial and technical support within the framework of local and regional development activities, the drafting of agreements on regional development and communicating problems encountered to the government. Thus, its approach is relatively holistic and not exclusively centred on one sector or only one specific theme in terms of LED, although support to the economic engines of growth through industrial clusters is still very current in the debate. Quebec’s approach is nevertheless in the process of being redefined after the arrival to power of the Liberal government. Law 34, adopted at the end of December 2003, could well alter the situation significantly; several decrees of application are expected that will define the scope of this legislation.

The Ministry of Economic and Regional Development (DRED) (ministère du Développement Économique et Régional - MDER) has a mandate to implement regional and economic development policy. Moreover, it is interesting to note that this ministry incorporates the former ministries of Regions, Trade and Industry, and Research, Science and Technology.

One of the innovative aspects of the Quebec approach to local development until recently was its involvement in the development of the social economy. At this time, the future of this approach is not known.

1 Our observations do not take into account the recent policy evolution, particularly through law 34.

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A. 1. 2. Programs and Tools

The Quebec government’s approach to LED is implemented in both urban and rural areas. Nevertheless, some outlying territories are not as well covered by this approach, particularly in First Nations areas.

At the local level, Local Development Centres (LDCs) were instituted by decree in 1997, and they became the cornerstones of Quebec’s approach. They have similar functions to Community Futures Corporations (Société d’aide au développement des collectivités – SADC), although the former are now more numerous and have generally higher budgets available to them. The main niche of the LDC is in support to business, especially in terms of business start-ups (business plans, mobilization of financial resources, etc.)2

In terms of the social economy, one of the most innovative dimensions of LED is the financial support program called Development Funds for the Social Economy Enterprises (Programme de financement appelé Fonds de développement des entreprises d’économie sociale – FDEES), which supports projects that encourage the development of social economy enterprises.

The Young Entrepreneurs Program (Programme Jeunes Promoteurs) offers grants to young entrepreneurs for business start-ups and strengthening their entrepreneurial capacity.

The Ministry of Municipal Affairs, Sports and Leisure is also involved in local economic development via contracts with cities and its program of economic development, in addition to its program for urban and village renewal. It is however difficult to ascertain the effectiveness of implementation of these contracts with cities.

Local Employment Centres (LECs) (Centres Locaux d’Emploi - CLE) fall under the responsibility of the Ministry of Employment and Social Solidarity; they offer programs of technical and practical training, employment skills and professional training for people in search of new avenues of economic development for their areas.

The Community Economic Development Corporations (CEDCs) (Corporations de développement économique communautaire - CDÉC) in urban areas constitute an approach to LED even though their actions are generally more oriented towards social development (employment, the fight against poverty, etc…); they are supported both by the provincial and federal governments. The CEDC intervene for example in Montreal at the intra municipal level.

On a regional level, the Regional Development Councils (RDC) (Conseils Régionaux de Développement - CRD), currently being transformed into Regional Conferences of Elected Representatives (RCER) (Conférence Régionale des Élus - CRE), coordinate regional partnerships, define the problems of overall development which affect their regions, prepare regional strategic plans based on their priorities in terms of regional economic development, institute measures to kick-start development processes and ensure continuous evaluation of economic activities at the regional scale. The Regional Development Fund (RDF) (Fonds de développement régional - FDR) supports projects and economic development agreements that are regional in scope.

The former Ministry of Trade and Industry financed economic development activities and business creation activities engaged in by regional development cooperatives.

2 Évaluation du PDC, 2003

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The former Ministry of Research, Science and Technology3 also intervened through its Quebec policy on science and innovation in relation to the following objectives and programs:

Reinforcement of technological innovation capacity and competitiveness of firms;

Reinforcement of linkages and transfer: Support program for financing infrastructure linked to technology transfer.

Support for incubators for new technology firms Innovation in regional development (financing of regional accompanying

agents) Supporting program to develop inventions Preparation of regional profiles and strategic positioning plans for regions Emergence of new avenues of excellence and reinforcement of the required social capital for innovation.

Development of strategic information and prospectives Social innovation

Profile of social innovation in Quebec Mechanisms for transfer of research results in humanities and social

sciences to the community domain.

It should also be noted that the federal agency for the regions in Quebec, Economic Development Canada, intervenes in a significant way in local and community economic development particularly through the SADCs. This is not necessarily the case with other Canadian agencies and thus, this leads to a particular relationship with the territory and its actors.

A. 2. Ontario A. 2. 1. The Policy Approach There is no ministry whose responsibility is first and foremost centred on LED. Several ministries or authorities have a mandate to support economic development in Ontario, including community development in some cases.

The Ministry of Economic Development and Trade; The Ministry of Northern Development and Mines; The Ministry of Agriculture and Food; The Ministry of Municipal Affairs; Native Affairs Secretariat.

The approach of the Ontario government in relation to local economic development is more of a reactive role (specific responses to specific issues) than a proactive approach (which would involve a global diagnostic of the territories involved, providing for a more targeted intervention). The province assumes more and more the roles of ‘guide’, facilitator and counsellor particularly in rural areas (including small towns and medium-sized cities).

3 Now integrated into the Ministry of Economic and Regional Development.

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The policy approach is also very much oriented to dealing with peripheral areas and aboriginal populations. A. 2. 2. Programs and Tools In terms of support for local actors, JUMP TEAMS have recently been deployed by the Ontario government to help municipalities take advantage of development opportunities and strengthen their local economy. The Community and Economic Development Resource Centre (CEDR), initially under the supervision of the Ministry of Business, Trade and Technology (renamed as the Ministry of Economic Development and Trade) and now with the Ministry of Municipal Affairs and Housing, is aimed at helping municipalities define a range of planning strategies of LED/CED from among those made available to them. This represents an interesting and relevant tool for local actors involved in the LED process. It consists of a collection of economic analysis tools and economic statistics. The Rural Economic Data and Intelligence (REDDI) (Ministry of Municipal Affairs and Housing) also provides an impressive range of relevant et innovative tools for rural economic development. The Ontario Small Town and Rural Economic Development program (OSTAR) invests in projects aimed at:

Diversifying the business climate in rural regions Creating long term employment Encouraging economic development Creating new markets and information sources, tools and resources for the

development and reinforcement of the rural economy. In relation to LED in urban areas, the Urban Economic Development Branch (UED) of the Ministry of Economic Development and Trade has as its objective building stronger regional economies based on the large urban centres in the southern part of the Province. It helps community leaders and corporate leaders establish strategies for regional development and innovative economic development projects. The Working Group on Economic Revival of Rural Municipalities has the responsibility for:

Identifying the difficulties and problems pertaining to rural economic revival. Suggesting innovative solutions in order to encourage the creation of employment and

the maintenance of existing employment in rural municipalities. Encouraging the establishment of partnerships and varied relationships between rural

local municipalities, government organizations and firms that are actively involved in promoting rural economic prosperity.

A new type of education and training program - the Community Economic Analysis program – is offered to LED practitioners, individually or in groups. It deals with how to use economic analysis tools in order to better understand and develop their local economies. The initiative “The Investment Readiness Test: A Self-Assessment Tool for Northern Communities”, under the responsibility of the Ministry of Northern Development and Mines, is aimed at helping municipalities and regions in the North determine whether they are ready to receive investments and assess the effectiveness of their economic development and planning processes. In terms of support to business, the Small Business Centres help people acquire the necessary abilities to start-up small business.

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The Small Entrepreneurs Training Centres provide the necessary support for the acquisition of community skills by offering complementary services to existing firms during the critical phase of their first years of activity, including providing pertinent information about imports and exports, patents, royalties and trademarks as well as mentoring programs. The Business Retention and Expansion Program is also available and is comprised of a set of resources in the form of a tool kit. In relation to financial tools, there are few public programs aimed at strengthening the financial basis of firms, except for the Community Small Business Investment Funds, created by the Ministry of Finance, which allows firms that have a Workers’ Investment Fund to offer tax credits of 15 % to Ontario residents who buy WIF shares. The latter must then invest this capital in Ontario growth firms. It must however be recognized that private funds invest more strongly in risk capital than in other jurisdictions. The Native Affairs Secretariat promotes self-sufficiency and economic development of aboriginal communities. It also plays a role of coordination and defence of aboriginal interests, and ensures that all ministries take into account the problems and needs of the aboriginals and provide them with access to governmental programs. The Provincial Strategy for “Building Aboriginal Economies” ensures the coordination of more than 35 governmental programs and services and is focused on four key activities.

Creating more partnerships Removing obstacles Creating job and development opportunities Improving access to programs

The Aboriginal Economic Renewal Initiative, a partnership between the federal and provincial governments, encourages growth of aboriginal businesses in Ontario through strategic partnerships and joint projects. In relation to the development of peripheral regions, the Program to Support Economic Diversification finances projects that lead to new economic growth and that encourages stabilization of local economies in Northern Ontario. To support the economy of Northern Ontario, the provincial government has put in place a program to finance infrastructure improvement and construction projects that support economic growth, strengthen the region’s ability to attract new investment and improve the living quality of the residents. At the regional level, there are teams which are responsible for economic and regional development, initially under the responsibility of the Ministry of Agriculture and Food (OMAF) (and now under the responsibility of the Ministry of Municipal Affairs). These teams work closely with businesses, entrepreneurs, municipalities and other territorial based structures and the population, in order to help them establish priorities for business and in relation to economic and regional planning. They are also involved in strategic planning and processes such as strengthening the capacity of local actors.

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A. 3. British Columbia A. 3. 1. The Policy Approach In British Colombia, no provincial ministry has the official mandate to support local or community economic development4. There is no precise public policy statement at the basis of the different programs that would orient the role of ministries in this area. However, a certain number of ministries manage activities based on a thematic or sector basis that are linked to at least one of the components of LED/CED. The main themes can be summarized around 5 points:

Economic development of aboriginal communities Rural development Youth Capitalization of local trusts and foundations and risk capital funds and tax credits Community development of forests and fishing

A. 3. 2. Programs and Tools In terms of financial tools, the Program for Worker Shareholders and Risk Capital Support under the responsibility of the Ministry of Competition, Science and Enterprise aims through tax credits at encouraging employees to invest their own capital in the province’s companies in order to encourage the creation and reinforcement of employment as well as the participation of the citizens in business ownership. Tax credits of 30 % are also possible for those who invest in the province’s firms via risk capital companies. Several funds are targeted globally at the province’s economic development through strengthening financial capital:

Funds run by the regional Crown Corporation, the Columbia Basin Trust. BC-Alcan Northern Development Fund (a public-private fund) AFFF Equity Capital Community Venture Capital Green Venture Capital

In terms of aboriginal community development, the Department of Community, Aboriginal and Women’s Services has set up an economic intervention fund to support First Nation economic development projects, in order to increase their involvement in the economy. They also support the economic development of remote rural communities that are strongly dependent on an industry centred on a single resource and that faces significant economic decline because of downsizing, relocation or closure of businesses. The program on Agreements relating to Community Forestry has not been implemented yet, but an experimental project managed by the Ministry of Forests was set up in 1997 in order

4 Réseau canadien de DÉC, 2003

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to increase direct participation of communities and First Nations in the management of local forests and the creation of permanent employment. Rural development is also one of the themes of provincial government intervention. The Agri-Food Features Fund (AFFF), a joint Federal-provincial initiative, supports LED/CED in rural areas through:

Favouring the creation of direct income for local companies and services; Enhancing the value of rural landscapes; Contributing to preserving local traditions, arts and crafts; Supporting diversification and stabilization of the rural economy through

employment creation and increasing the incomes of families and communities; Helping rural regions and communities orient themselves towards the tourism

market5. The Youth Development Program is aimed at helping youth and other volunteers:

Improve their skills and knowledge (particularly in NIT); Become active citizens and leaders; Become aware of agricultural issues; Participate in the development of their communities.

In relation to a more holistic LED, one fund - Partners for Economic and Community Help – that is managed by the signatories, is aimed at giving the residents of target communities the necessary tools to improve their situation by stressing:

Local capacity reinforcement, Entrepreneurship and business creation, Employment creation and professional training possibilities.

Regarding LED in urban areas, the tripartite agreement between the federal, provincial and municipal governments – The Vancouver Agreement – provides financing to projects whose aim is to improve social and economic conditions in all of Vancouver’s communities, in particular those located in the East Side of downtown. However, it is important to emphasize that the Vancouver Agreement only deals with communities in the Vancouver region and that it is mainly oriented to social development. A large number of urban centres are thus excluded. Federal programs have also been more constant than provincial programs in British Columbia. In particular, among these the Community Futures Development Corporations can be mentioned.

A. 4. New Brunswick A. 4. 1. The Policy Approach The provincial plan New Vision, New Brunswick (2000) defines an extensive governmental support for local and regional development. The Economic Growth Program (2001), in which the New Brunswick Prosperity Plan appears, is laid out over a ten year period. This sets out a plan for the creation of intermediary consultation structures in the LED domain, called Community Economic Development Agencies (CEDAs).

5 Réseau canadien de DÉC, 2003.

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While it is increasingly oriented towards the economic engines of growth, the process is relatively holistic and is aimed at strategic planning for the majority of New Brunswick’s communities. A. 4. 2. Programs and Tools In relation to LED, the Business New Brunswick (BNW) ministry aims to coordinate the provincial government role in economic development generally and the new Community Economic Development Agencies (CEDAs)6. The CEDA, set within the “New Vision, New Brunswick” plan framework, lays out the devolution of authority to the regional authorities and aims to encourage active participation by municipal and community development representatives. Each one prepares a regional strategic development plan for a 3 year period. The CEDAs finance projects that are particularly focused on local and community capacity building, innovation, entrepreneurship and skills improvement. They are grouped together within a network called the Enterprise Network. This network has entered into a contract with Mount Alison University to set up an orientation and training program for volunteers who participate on the boards of directors and in the forums, for staff and governmental partners (municipal, provincial and federal) of the CEDA. The Regional Development Corporation, a Crown Corporation directly under the responsibility of the Prime Minister, also plays a major role in the coordination and support of regional and community economic development activities. By law (Act concerning the Regional Development Corporation), it must coordinate and manage regional development in New Brunswick. It plays a key role in the support and financing of LED activities. It helps the CEDAs financially by supporting their operating costs. It also manages the Community Economic Development Fund. In collaboration with the municipal and federal partners, this fund finances the 15 CEDAs in order to allow them to implement regional economic development projects. The regional offices of the Ministry of Training and Employment Development and more generally, all the sector-based ministries that are concerned with key sectors, also support the CEDAs. Also in relation to regional development, the Economic Development Fund for the Arcadian Peninsula was set up to support economic diversification, infrastructure, and development and planning in this region of the province. In terms of business support, the Small Business Program contributes to the financing and the management of initiatives aimed at new small business creation. Employment creation projects by business can be supported financially through a development support program.

In terms of sustainable development, the fiduciary Fund for the Environment supports a certain number of LED projects centred on sustainability aimed at:

• Deepening understanding of the question of environmental sustainability; 6 Réseau canadien de DÉC, 2003.

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• Improving community capacity to manage sustainable environmental development projects;

• Informing the population in general about matters pertaining to sustainable development within the province’s communities.

In relation to aboriginal community development, the Joint Economic Development Initiative (JEDI) helps First Nation citizens, bands, organizations and communities in terms of business creation and economic development training and planning. Finally, there are few programs aimed at strengthening financial capital except through:

Loan guarantees to help unemployed people create their own employment by starting a business;

Micro financing (Restigouche micro-financing program). Among the interventions of the federal agency for development in the Atlantic Provinces, the Community Futures Development Corporations (CFDCs) can be noted. These have been in existence since the end of the 1980s. Some of the activities initially given to the CFDCs have voluntarily been removed from them by the government. The CFDCs function in partnership with the CEDAs, but their geographic limits are far from being always the same, which makes the joint intervention of both organizations more complex.

A. 5. France

A. 5. 1. The Policy Approach A law dating to 1995, the Territorial Planning and Development Orientation Law (Loi d’Orientation pour l’Aménagement et le Développement du territoire – LOADT), has oriented the French approach in terms of local development. This law envisaged:

Strategies for regional development, valorization of the environment and sustainable development;

The development of important infrastructure; The delivery of public services.

This law also defines the relationship between the central government, ministerial administrative structures and local, département and regional government bodies. A territorial reconstruction through various legislative mechanisms followed on from this policy development. Among the different mechanisms involved, the following appear to be the most pertinent for purposes of this present study:

Pays (areas characterized by a common heritage of some sort and which cover several local municipalities)

Agglomerations Regional Natural Parks

A. 5. 2. Programs and Tools Through its policy on creating pays, France has initiated an original approach to organizing its territories and for helping local development initiatives to be more dynamic, especially in rural areas. Economic development, in its broadest sense, has an important role in this, but

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not an exclusive one. However, based on the charters of the pays, there are great differences in the way in which economic development is dealt with and in the nature of the proposed operational projects7. In the projects for pays (and also those for agglomerations), two different logics are followed in dealing with economic development. The first is sector-based, and focuses on different economic sectors. The other is more transversal, and integrates an economic dimension into each of the themes dealt with. Whatever the role of economic development in the project, the measures envisaged can be grouped into seven main categories:

Measures favouring business development; Mechanisms encouraging business creation; Support for business transfer and takeover; Measures to help an area position itself economically; Labour employability and adaptation measures; Networking for economic development actors; General business environment.

The LEADER program (see section A.6) in France has close links with the policies related to the pays. Furthermore, LEADER has been at the origin of the process for setting up a pays in some cases. Urban Agglomerations and Regional Natural Parks (RNPs) projects share the same ambition, though there are some differences in terms of responsibilities and in terms of the nature of the intervention area — urbanized areas for the former, and mountain and rural areas (with a few examples in periurban areas) for the second – i.e. areas with some form of solidarity in common, within which partnership projects for local development can be envisaged, constructed, and implemented. In urban areas, the Policy for the City cannot be overlooked; this is implemented locally by City Contracts signed by the State, Regional Councils (the Administrative Regions), General Councils (the départements) and cities. Although the end result of this policy has often been a very marked orientation towards social development or by great difficulty in mobilizing economic actors within that process, it has been a precursor in the way it has tackled the intra local scale in a relatively holistic manner. Various mechanisms and tools exist to support these approaches to territorial or area development. Among these mechanisms is the territorial component, which is one of the major innovations of the 2000-2006 State-Region Plan Contracts (SRPC) (Contrats de Plan État-Région - CPER). What this means is that for the first time, a decision has been made to base national and regional development policy on territorial organizations that have real geographic, economic, and social relevance. It includes the Policy for the City and provides the contractual framework for Agglomerations, pays, and the RNP. Moreover, the SRPC and European regional programs are tending towards a common strategy in each region, which constitutes in itself a sort of revolution in France. If true in theory, in actual practice not all the territorialized decisions made by Regional Councils are, however, incorporated into the territorial component of SRPC, which makes it even more complex to understand the different possibilities for territorial or area-based support and strategies. The French government, through the DATAR and the Caisse des Dépôts et Consignations (CDC) (Office for Deposits and Consignments), has tried to support the actors and processes

7 ETD, Dossier sur les Pays.

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stemming from the LAODDT by setting up a nation-wide observatory system. This mandate to manage this function has been given to a national association, the Territory and Development Corporation (TDE) (Entreprise Territoire et Développement - ETD). This observatory system is organized around two main axes: Axis 1: General observation and support for territorial reconstruction.

Monitoring and follow-up of all steps in creating pays and agglomerations right from the creation of the new territories to the signing of pays and agglomeration contracts. This information is available to the public on an Internet site, Pays and Agglomeration Observatory (Observatoire des pays et des agglomérations).

Axis 2: Thematic observation of local development practices

Analysis of experiences in France and internationally by any kind of proponent (city, businesses, actor networks...), in order to provide and illustrate the production of methodologies or approaches. This has led to the production and diffusion of Observatory C-D ROMs.

In addition, in most regions, the government and the regional councils, within the context of their territorial policies, have tried to provide areas with more effectively articulated technical and methodological support through territorial support structures. The objectives of territorial support can be categorized under four main headings: Information:

o Information about local development policies o Specialized assistance and documentary scanning o Making available reference material

Network Creation:

o Exchange between actors o Building on and communicating experiences

Technical Assistance:

o Methodological accompaniment o Technical assistance for project development o Mobilization of external resources and skills o Accompanying experimental projects o Professionalization of local networks

Accompaniment or Guiding:

o Monitoring o Assessment

Exemption from the professional tax and the Regional Development Subsidy (RDS) can be listed as part of the support for business. The nature of the support mechanisms is not neutral: it reflects the design of industrial policy for the area under consideration. The content of support has become broader and broader: State support appears in increasingly non-material forms, and is delivered through networks involving similar projects that mobilize many private and institutional actors, instead of more direct intervention in business. In France, actors have 15 billion euros (1% of GDP) available to them, just from government support that comes under European regulation. However, no complete census of support

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provided by the different levels exists: national, regional and local. Local decision-makers do not have any insight on the impact of this support on the development of a given region. There is a total absence of any national global monitoring, such as effective tools for management and assessment. To respond to this, a number of orientations have been proposed:

An exhaustive annual census of support and communicating this . . .; Resources allocated to the State to assume its new functions, and to each region

to be able to assess the effectiveness of the support; The communication of good practice observed in France and internationally.

Thus, among the ultimate goals of the system, several axes can be envisaged: An prospective approach with respect to the productive system and business

needs; Support mechanisms that are responsive to the diversity of business strategies; Clearly defined objectives at national and European levels; The development of attractive and competitive territories; A definition of priorities relating to future major markets.

The approach involving Local Productive Systems (LPS) promoted by the French government shows clearly this intent. The Regional Development Subsidy (RDC) is an allowance for machinery, granted by government to businesses that undertake programs with an impact on the employment situation in those regions with priority in regional development. To conclude, economic development and regional development in France is a responsibility that has been devolved increasingly to territorial or area-based communities, particularly regional ones. Unfortunately, an examination of the service organization charts of territorial communities still reveals, to a significant degree, a relatively weak and certainly not dominant implementation of territorial or area-based policies compared to sector-based policies.

A.6. The European Union A. 6. 1. The Policy Approach

The approach of the European Union regarding local economic development is mainly found in its regional policy, financed by structural funds available to all members of the Union. The general objective of regional policy can be summarized as a commitment to reduce regional disparities, thus strengthening and encouraging the economic and social cohesion necessary to achieve a common market. The regional policy accounts for approximately one third of the expenditures of the European Union. The Common Agricultural Policy (CAP), which accounts for the largest share of European Union expenditures (nearly 50 %), contributes also to local economic development, but to a lesser extent. However, the CAP has recently received a second cornerstone for rural development that is not wholly intended for farmers, but for all actors contributing to rural development. In some ways, this represents a real paradigm change, one which has been

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more or less well accepted by the powerful farmer lobby. The CAP is mainly used to support the agricultural market and the farmers of the European Union. A. 6. 2. Programs and Tools

Regional policy has three priority objectives in its current program:

Objective 1: Support to regions lagging behind in development, Objective 2:Support for economic and social reconversion in areas facing structural

problems; Ojective3: Adaptation and modernization of education, training, and employment

policies. Four Community initiatives, which involve only a small proportion of the finances, complement these objectives:

LEADER: Local development in rural areas INTERREC: Cross-border, transnational and interregional cooperation; EQUAL: The fight against discrimination and inequalities related to the labour

market; URBAN: Economic and social rehabilitation of cities and districts in crisis in order to

promote sustainable economic development

The programs under the different objectives (in particular 1 and 2) are aimed at correcting regional disparities, whereas the first aim of Community initiatives is experimentation with new approaches and methods on crucial themes that are of interest to all countries in the European Union, ultimately in order to reorient and enrich general policies8.

The implementation of these objectives and programs is made possible by the existence of the following three funds, which intervene depending upon the nature of the expenditure:

EFRD, for economic development, ESF, for professional integration and training; EOGAF, for farming and rural development.

The LEADER program is a very original Community initiative that contributes to rural development and regional policy as a whole; it was initiated in 1991. Compared to the priority objectives, the financial resources of LEADER are relatively limited. The program, which is in its third generation, was created in order to revitalize rural areas and complement existing European structural funds as well as the regional and national programs of the member countries of the Union. The objectives of the LEADER initiative are as follows:

• To improve the development potential of rural areas by drawing upon local initiative. • To promote the acquisition of know-how in the field of local development. • To diffuse this know-how to other rural areas.

To achieve its objectives, LEADER is organized around three components:

• 1: Territorial strategies for integrated rural development on an experimental basis. • 2: Support for cooperation between rural territories. • 3: Setting up networks.

LEADER has promoted an integrated territorial approach that has often been in contrast to the pre-existing sector-based approaches, even within identical policies of the European 8 LEADER+, programme national français.

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Commission9. Nevertheless, only a certain number of territories that were most in difficulty were eligible under the two first generations of the program. This is no longer the case for the third generation of the program, which applies to all territories in the European Union. The LEADER Observatory has focused on eight principles for specific operational intervention that could be characterized as the LEADER approach (or the LEADER method):

Local approach: Self-determination of relevant territories based on cultural, social, economic, and identity criteria.

Bottom-up approach: Based on local needs identified by local leaders. The latter should be involved in collaborating in implementation, decision making, and assessment phases.

Partnership approach: The cornerstone of the initiative; Innovative approach: Innovation is the leitmotif of members of the Union. However,

innovation is seen more from the perspective of getting value from diversity and the uniqueness of areas, rather than as a pretext for adapting the region to global technological standards.

Multi-sector integration. Working in networks. Transnational cooperation. Decentralized financing and management.

Local Action Groups (LAGs) are among the pertinent innovations introduced under the LEADER initiative, and their number practically quadrupled between the first and second generations of the program. Partnership development is without any doubt one of the strong points of the mechanism. It has not been given a strict definition and consequently, has taken on many forms. This margin of flexibility has been widely used. The innovative role of the LAG has contributed to decentralization and making the local level more responsible, particularly in relation to public partners10. The LEADER initiative, however, can be criticized for its lack articulation and links with the more tradition policies of the European Union and its members. For instance, French authorities do not want LEADER to be seen as a policy to which all areas have a right, being applied indifferently to all rural areas. LEADER has an experimental function that must give value-added to national and Community policies for territorial support; it therefore should be coordinated with these same policies so that the synergy and complementarily effects can be brought fully into play11. The policy approach aimed at reducing regional disparities does not appear to be the one that will dominate in the near future. Indeed, Europe has declared its intent to become the most productive economy in the world by 2010, and therefore runs the risk of reorienting part of its financial effort onto the economic engines of growth. The interest in Regional Innovation Systems clearly reveals this new orientation. The main European economic support tools that can be considered possibly compatible with the principles of an open economy and free competition are as follows12:

Encourage economic development of regions where living conditions are abnormally low;

Promote the implementation of important projects that are of common interest for the European Union, or solve a serious economic crisis in a country;

9 Évaluation Ex-post LEADER I. 10 Évaluation Ex-post LEADER I. 11 LEADER+, programme national français. 12 Inventoried in articles 48, 87, 90, 130, 157 and 267 of the Treaty.

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Encourage the development of certain economic activities or regions, providing that it does not affect exchange conditions to a degree that is contrary to the common interest;

Promote culture and heritage conservation. The Council can authorize providing support funds;

Within the framework of economic development programs, In the case of businesses in charge of a mission of general economic interest, if

it is known that they have no effect on competition.

Therefore, the mission of the European Investment Bank is to finance (at a special rate compared to the market) exclusively investments that support a Community objective (regional development, the modernization or conversion of businesses, the creation of new activities presenting a common interest).

A.7. Australia (New South Wales Region) A. 7. 1. The Policy Approach Australia is a state with a federal structure and a dominantly neo-liberal approach in terms of local and regional development (at both federal and state levels). In theory, the states are responsible for the development of their own territories; however, the federal government is also present and very influential in development, even though this occurs in an indirect manner (for instance, through the regulation of international trade). The lower tier governments (the states) is relatively weak politically compared to the Canadian situation.

A. 7. 2. Programs and Tools The Department of State and Regional Development is responsible for business development and economic development for the whole State. Its goal is chiefly expressed in terms of employment. Nevertheless, in actual practice the Department really only deals with the area beyond the Sydney Metropolitan Region (i.e. non-metropolitan regions). This area is called “Regional NSW”. The Department has 20 regional offices in which its officers work on State programs in partnership with local actors. Several local and regional organizations play an important role in the articulation of State programs and local territories. For instance, Area Consultative Committees play a role in identifying infrastructure programs. Here, LED and CED are used interchangeably to describe the same reality, in which the emphasis has been placed on business and business development (mainly small business and already existing businesses), endogenous community development, and establishing close relationships between economic and social development (even if it is not always apparent in the programs). The emphasis is on industry, infrastructure (for example, the maintenance of services through the Access Program across the State), and support for regional development organizations, Regional Development Boards, and other local development organizations.

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The budgets allocated for regional and local development are relatively small (very small in the case of New South Wales). There is no sector-based orientation provided to economic development; the main initiatives come from the communities. Similarly, except for a few regions in difficulty or in decline, the programs rarely target different categories of territories. Partnership development with communities is relatively important in State policy. Strategic counselling is considered important, at least in relation to the Regional Development Boards, which have important functions in strategic planning and regional leadership development. The State also supports the training of local development officers. Many programs target downtowns (of small medium-sized towns), and there is a program for Towns and Villages. Overall, the approach is mainly a reactive one – waiting for requests for support from local and regional actors. Moreover, there is no significant territorial diagnostic because there is an absence of any sector-based orientation. The role of the State is mainly to accompany (or to guide), facilitate, counsel, provide strategic information and train. Tools and specific case studies are available on the web site of the main department involved in LED, in order to demonstrate what local communities can accomplish. In public statements, there is also an emphasis on local leadership (capacity building). But in actual practice, this is rarely reflected in concrete programs on the ground. Periodically, an internal assessment is conducted, but a global assessment has not been undertaken for these programs. Some even state that this is not an important priority. Nevertheless, all cabinet decisions have to be accompanied by a declaration about the effects of the project on rural communities.

A. 8. Oregon A. 8. 1. The Policy Approach The State of Oregon has a department in charge of economic development (the Economic and Community Development Department) in which most programs and interventions related to LED and Community Development are drawn together. This State has a relatively innovative approach in its integration of social aspects into economic development at the local level. A. 8. 2. Programs and Tools Oregon is a State where one of the first programs of import replacement, created in the 1980s, has been used as a model by many other states. Since then, it has developed an integrated approach to the problems of communities and their planning, that requires close collaboration with local development organizations.

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The most innovative aspect is the way in which this State ensures coordination and consultation between different programs and interventions aimed at local groups and communities. The starting point for this is the Governor’s Community Development Office and involves the Economic and Community Development Department and the Community Solutions Team (recently renamed the Governor’s Economic Revitalization Team). The latter can be activated as need arises at any time in a region. At the same time, it promotes dialogue between state agencies in an area and also contributes to solving a particular problem identified by a local group or community.

This State is also very innovative in terms of the tools offered to local actors. It offers support in the preparation of community profiles and makes available to them a manual on how to undertake a survey of needs and issues, and assess their capacities (basic capacity, civil capacity, economic development capacity and community development capacity). This is a partnership project that involves the same department, the Governor’s Community Development Office, and the Community Solutions Team. Six directors of six different agencies comprise the Team. It encompasses all aspects of community development, including economic development. The teams work together with local groups, through their regional staff (and five regional coordinators), in order to develop appropriate solutions to problems and opportunities faced by each community.

At the state level, the Community Solutions Office works to further collaboration between agencies and to integrate this in a local approach to the solution of the problems related both to interaction between agencies as well as the interaction between local groups and the state. This coordination effort also deals with coordinating different sources of resources, including the Community Development Block Grant (Federal). This approach favours partnership building between communities and other organizations at the local level. Therefore, this is a jurisdiction in which the emphasis is placed on local economic development (even if a large number of initiatives are also related to social development), and in which the state plays an important role in the accompaniment and the facilitation of planning and organization processes for local economic development.

Nevertheless, even though innovative in terms of interdepartmental collaboration and the involvement of local groups, there is an on-going risk that intervention is too reactive and not based on a territorial diagnostic.

A. 9. New Hampshire A. 9. 1. The Policy Approach In terms of organization, this State has an important department which draws together a large number of agencies dealing with LED, except for the semi-autonomous agency that deals mainly with financing community development projects. This Department of Resource and Economic Development incorporates the Division of Economic Development. The latter includes the New Hampshire Office of Community Services, the Office of Business and Industrial Development, and the Office of International Commerce.

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A. 9. 2. Programs and Tools This department thus has agencies that are in charge of the rather more traditional aspects of economic development (the attraction of new businesses and the growth of existing ones, the marketing of the State’s products and services internationally). These activities demand close relationships with regional development organizations, but they remain mainly traditional in nature. Other departments are more involved with forestry activities and resources, tourism and recreation. A semi-autonomous state agency, the New Hampshire Community Development Finance Authority, deals directly with communities regarding the financing of community projects. Among other things, this agency is in charge of the Community Development Block Grant Program, for which the responsibility was recently (2003) transferred from another department. It is important not to forget that this is a federal program (sponsored by the US Department of Housing and Urban Development - HUD). Even though it focuses on housing and the most underprivileged segments of the population, the program supports local communities through grants in their plans to build community capacity and to achieve economic development.

Although this agency seems to be relatively traditional in its procedures, it does have an important number of counsellors who provide support to local communities and to other local actors in their preparation of requests for grants. In addition, even the grants intended to build capacity of municipalities and counties are directed to regional development corporations in order to increase their own working capital to support economic activities. These funds can be used, for example, in marketing, the assessment of projects and the research for additional financial resources. However, these requests are dealt with on a first come, first served basis rather than on the basis of a competition with known deadlines. These interventions are thus more reactive than proactive and are not based on a systematic diagnostic in terms of potentials and constraints.

A. 10. Vermont A. 10. 1. The Policy Approach The State of Vermont has a department that deals with a large proportion of the different programs that pertain to economic development (Department of Economic Development).

A. 10. 2. Programs and Tools The Department of Economic Development has privileged contacts with regional organizations (especially the Regional Development Corporations). This Department supports the strategic planning processes of the Regional Corporations, but does not have contacts nor regular intervention with all area-based organizations. These interventions are not based on a systematic diagnosis of the State’s territory.

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The Department makes an explicit link between the quality of employment that can be maintained or created with the population’s quality life. The indicators used to assess the processes are essentially economic ones (average income compared with the national average, business creation, the mortality rate of business, etc.). The Department is also concerned with the services offered, and the effectiveness of delivery of these services to the population.

Another agency, the Vermont Economic Development Authority, which exists since 1974, is specialized in financial support for small and medium-sized business. It also maintains relationships with the Regional Development Corporations. This agency also works in cooperation with the Economic Development Department. It also has the possibility to support, via loans, local non-profit development corporations (for example, for the purchase or construction of a building in industrial parks). Like all the American states retained in this study, it is primarily at the level of the local and regional organizations that integration of the different programs is achieved. And it is equally at this level that a certain integration of social and economic development is carried out (except for the State of Oregon where there is an initiative to coordinate the programs and the agencies at the regional level).

A. 11. Maine

A. 11. 1. The Policy Approach The State of Maine has a unified approach in relation to LED and CED in the sense that these programs are integrated within the same department (Department of Economic and Community Development – DECD). It is thus possible to appreciate the general policy of the State by analyzing the mission statement of this department. The small size of this State has undoubtedly facilitated this approach (integration). A. 11. 2. Programs and Tools

The mission of the DECD is: 1) To help and coordinate the development of policies and programs for economic and community development; 2) To work with municipalities as well as the planning and regional economic development organizations to implement their programs; and 3) To encourage the creation and the retention of quality employment through increased private sector involvement. These programs deal with business development, tourism, and community development, three components that are frequently encountered in the American States. In addition to direct support to municipalities and other local and regional organizations who request it, the State of Maine has other more traditional interventions, such as the competitive allocation of funds for local and community development projects, including infrastructure projects that support LED, and the financial assistance to organizations and local municipalities for development planning (notably through the Community Development Block Grant program). Moreover, still within the traditional mode of economic development. the State through the intervention of this Department is in the process of developing a policy

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to pool information from local and regional actors and the State’s officers concerning potential businesses that might locate in the State. The Office of Innovation which is also under the responsibility of this Department is charged with increasing investment in certain targeted “clusters” (for example, biotechnological research in the biomedical sector). The State, through the Office of Community Development, manages funds coming from the federal Community Block Grant Program, which once again has both economic and social development dimensions. It allocates through competition several million dollars per year to communities in order to undertake housing, and community and economic development projects. In the domain of economic development, this fund can contribute to Development Funds, the Regional Assistance Fund, micro loans, the development of infrastructure for economic development and assistance to businesses, and to community planning programs and the assessment of housing needs.

public policy for local economic development

Documents

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new brunswick

new hampshire

public policy

types of public po

doctoral candidate universit

sylvain cofsky

christopher bryant