Framework for regional and local economic development in Namibia Arl820s/arl821s: advanced regional and local economic development

outline Objectives Regional and local economic development: legal context, focus and actors Regional and local economic development: principles, characteristics and environment Local dynamics, economic gains, environment and implementation mechanisms Discussions, in-class exercise, debate and review

Objectives To assess the state of regional and local economic development in Namibia (theme I) To examine the characteristics, stakeholders and environment for regional and local economic development in Namibia (theme II) To discuss local economic development initiatives and implementation in Namibia (theme III) To engage students and assess their understanding through interactive discussions

Theme I State of regional and local economic development in Namibia

introduction Local economic development (LED) is a relatively new concept in Namibia Earlier attempts by localities restricted to provision of service land Formal adoption: LED policy framework in March 2000 by Association of Local Authorities in Namibia (ALAN) Consultations: City of Windhoek and Southern African Ideas Recent priority status by local authorities focusing on strategic planning

Legal context for led in Namibia National policies and acts of parliament Vision 2030, National Development Plans Local Authority and Regional Councils Acts Decentralisation Policy and Enabling Act Regional Development and Equity Trust Fund Act Other policy guidelines, position papers, white papers etc.

Decentralisation policy and enabling act Policy adopted in 1997; act ratified in 2000 Policy defines regulatory framework for decentralisation Stipulates types of decentralisation and powers to be transferred Defines guidelines for consultation and stakeholders Act stipulates legal context for decentralisation Defines framework for local authorities to take charge of central government-driven economic development

National policy guidelines on public-private partnerships Define principles, stakeholders, contracting frameworks and roadmap Make room for partnerships which unearth economic potential Partnerships encompass all local services Pro-poor partnerships enhance access and economic opportunity

Position paper on local government reform Recognises local government incapacity in LED Asserts important role of local governments Advocates central government financing Proposes “integrated development planning”

White paper on local economic development Spearheaded by Ministry of Regional and Local Government, Housing and Rural Development Comprises two main instruments LED agency LED funding

Civic organisations partnership policy Asserts contributions of civil society organisations to socio-economic development Underscores roles of these organisations in planning, decision-making and service delivery Provides framework for civic engagement

Enterprise development programme Launched by Ministry of Trade and Industry in 2006 Supports private sector development Comprises: Business Support Services Programme and Offshore Development Company

Types of local economic development programmes Orthodox LED approach Economic assessment, LED planning workshop, drafting of plan Strategic planning process PACA LED approach Appraisal of economic development challenges Drafting of proposals

focus of local economic development programmes Awareness creation Capacity building Expertise development Assistance to local authorities Local empowerment and regulatory framework Guidance on SME and informal sector development

formal local economic development approaches: focus Business and industrial land infrastructure Tourism strategies Specific economic sector based interventions Empowerment and SME development Capacity building for economic development Investment promotion Partnership with business

Swot analysis for local economic development: strengths Diverse actors involved in capacity building and awareness creation Provision of funds by local authorities Designation of LED as a primary area for technical assistance Development of national policy framework Existence of various donor-funded programmes

Swot analysis for local economic development: weaknesses Capacity challenge in ministries, departments and agencies Poor institutional capacity in support organisations Limited human resource at local level Lack of proper policies or strategies Poor private sector representation at local level

Swot analysis for local economic development: opportunities Possible adoption of national LED policy Potential institutional arrangements at Ministry of Regional and Local Government, Housing and Rural Development Opportunities for capacity building

Swot analysis for local economic development: threats Poor coordination between ministries at local level Limited resource and institutional capacity

Main actors in local economic development Central government Local authorities Non-governmental organisations Stakeholders at the local level authority

The urban bias of local economic development Municipalities and Town Councils are the main bodies expending resources for LED Long distances between local authorities create cost benefits for urban areas Five local authorities have undertaken consultations Orthodox LED approach: Windhoek, Omaruru, Luderitz and Gobabis

Main donors involved in local economic development Early donors: Friedrich Ebert Stiftung and Ford Foundation Current donors: GTZ, HIVOS, Finish

Strategic issues for local economic development Capacity building at local level Stakeholder involvement LED development approaches Local level LED networks Development of tools, guidelines and regulatory instruments Development of consulting skills pool Funding

Theme I: discussion questions Discuss the historical emergence of local economic development (LED) in Namibia. Examine the legal context for LED in Namibia. Assess the various policy documents which define LED in Namibia. What are the two main types of LED programmes in Namibia? Examine the focus of Namibia’s LED programmes. What are the strengths, weaknesses, opportunities and threats associated with LED in Namibia? Who are the main actors and donors involved in Namibia’s LED? Assess the urban bias and strategic issues entailed in LED for Namibia.

Theme II Characteristics, stakeholders and environment for regional and local economic development in Namibia

background Long history of regional and local economic development in Global North and South Global North: market-led approach Global South: market-led approach, community empowerment, human capital development, redistribution of resources, promotion of local creativity and innovation, mobilisation of local resources, adding value to local resources

regional and local economic development in Namibia Emergence of sustainability and local economic development (LED) after independence Use of local human, physical and natural resources Emphasis on bottom-up local development strategies

Principles of regional and local economic development Maximisation of human welfare Provision of sustainable development base: economic, social, environmental etc. Local level development strategies: village, town, city, region, community, neighbourhood etc.

White paper on regional and local economic development for Namibia: rationale Improving governance Promoting economic development and restructuring Enhancing social progress and quality of life

White paper on regional and local economic development for Namibia: definition of concept “Local economic development is a process by which actors within urban and rural areas work collectively with public, business and nongovernmental sectors to create better conditions for economic growth, employment generation and community wealth in order to enhance the quality of life for all in the community.”

Local development approaches: main characteristics Emphasis on notion of development: broad, structural and qualitative Economic diversification Territorial focus Diversity of local actors Emphasis on long-term development: economic and social

Stakeholders in local economic development Ministry of Regional and Local Government, Housing and Rural Development Local authorities, regional councils and traditional authorities Local people and networks Broad categorisation of actors: Public actors: local and regional authorities, central government, traditional authorities, state-owned enterprises Social actors: employers, business representative organisations, non-governmental/community/ voluntary organisations, faith-based organisations, trade unions, cooperatives, development agencies, educational institutions

Role of central government in local economic development Allocating budgets Drafting proposals Spearheading employment and income-generating ventures Building local capacity Facilitating stakeholder communication Utilising competitive and comparative advantages Providing and spearheading funding for sub-national governments

Policy and regulatory context of local economic development Vision 2030: competition, self-reliance, enabling environment for prosperity National Development Plan Private Sector Development Policy Decentralisation Partnerships: government, civil society organisations etc.

Policy and regulatory context of local economic development (cont’d) Local regulatory framework: town planning, road networks, building regulations, municipal by-laws etc. Other policies and frameworks: rural development, rural-urban migration, economic empowerment Local Government Reform Position Paper: community integration, equitable service access, land development, balanced local/regional investments, leadership capacity improvement, functional relationship between local authorities and regional council Medium-Term Plan (MTP III)

Theme iI: discussion questions Compare and contrast the histories of regional and local economic development (RLED) in the Global North and South. Discuss the emergence of RLED in Namibia. What are the main principles and rationale defining LED in Namibia? Define LED and discuss the main attributes associated with its approaches. Who are the main stakeholders involved in LED in Namibia? Discuss the role of the central government in Namibia’s LED. Assess the policy and regulatory framework associated with LED in Namibia.

Theme III Local economic development initiatives and implementation in Namibia

Local economic development initiatives Local: citizen-government relationship, civil society involvement, citizen commitment, social welfare Economic: local comparative advantage, competitiveness of towns and regions, SME development, tourism Development: land use, provision of urban and rural amenities, liveability

Local dynamics: communication, cooperation and collaboration Information, consultation and collaboration Possible initiatives Regular community meetings Sensitisation of residents Dialogue with organised groups Updated lists of local organisations Opportunities for participation

Local dynamics: social welfare Addressing social exclusion; integrating marginalised people Possible initiatives Support of community initiatives Emphasis on unmet social needs Opportunities: “Labour Intensive Work” and “Food for Work”

Local dynamics: creation of ownership and pride Local involvement in planning and execution Possible interventions Recognising and rewarding role models Volunteer recognition strategy

Local dynamics: welcoming attitudes Creation of welcoming attitudes among major actors Possible initiatives: Welcoming features at entry and exit points of localities Efforts to keep strategic areas clean Provision of proper signage Information and training workshops

Economic gains Promotion of entrepreneurship Savings, investment and wealth accumulation Job creation Broad-based approaches: Retaining and expanding local businesses Promoting new business Attracting outside business and resources Minimising leaks in the local economy Facilitating community job linking capacity Marketing the community

Economic gains: identification and marketing of comparative and competitive advantages Defining a locality’s comparative advantage Review of legal and regulatory framework Reduction of red tape Incentives for domestic and foreign investors Strategic positioning of a locality Building local resilience

Economic gains: identification and marketing of comparative and competitive advantages (cont’d) Possible initiatives: Identifying comparative advantages and creating competitiveness Computerised information and monitoring systems Effective promotion and marketing strategies Comprehensive profiles of locality Planning for promotion and marketing

Economic gains: investment attraction and business expansion/promotion Creation of business friendly environment Possible initiatives: Establishment of linkages with national investment promotion agencies Formalisation of investment sourcing strategies Establishment of one-stop centres Organisation of regional/local investment attraction events

Economic gains: supporting the sme and informal sectors Diversified small business sector Developing economies based on free market principles

Economic gains: supporting the sme and informal sectors (cont’d) Possible initiatives: Rural and urban open markets Formalisation of land tenure Review of trading regulations Business partnerships between small and large enterprises Small Business Information Units in conjunction with stakeholders Partnerships with industrial parks, business service providers and institutions Cooperation with commercial banks Review of informal business regulatory environment

Economic gains: attracting visitors and tourists Increasing tourist inflows, duration of visits and expenditures Possible initiatives: Development of tourism organisation and structures Data for tourism profiles Visitors’ surveys in conjunction with the hospitality industry Linkages with regional tourism development forums Tourism information desks Accommodation and Conference Facilities publications Creation of tourism friendly environment Development of new tourism products Multi-faceted marketing campaign

development of the environment Vibrant, broad-based approach to employment, income and investment generation Balanced and equitable development Improved liveability and poverty reduction

development of the environment: spatial considerations and urban/rural amenities Land use planning Effects of segregation and spatial divide Equal access to amenities

development of the environment: spatial considerations and urban/rural amenities (cont’d) Possible initiatives: Resident/community involvement in identifying and developing amenities Public infrastructure Pedestrian/consumer friendly shopping centres and malls Facilitation of land markets Minimum quality of life standards for residential dwellings Improved recreational and sports facilities

development of the environment: utilisation of town lands Utilisation of town lands for expansion of proclaimed areas Possible initiatives: Cooperation and exchange of best practices Sensitisation on urban expansion Favouring the poor

development of the environment: environmental protection Avoiding waste and pollution Improving quality of buildings and protecting landscapes Protecting environment and improving local quality Possible initiatives: Creation of outsourcing opportunities Energy management Environmental impact assessments Environmental awareness campaigns

Implementation of local economic development strategies: organisational arrangements and structures National LED Agency Guiding local authorities and regional councils Improving functional relationships Sharing best practices Centre for piloting of LED initiatives Preparing and disseminating LED models/tools Creating awareness and assisting with capacity building Assisting with monitoring and evaluation Regional/local delivery mechanism and capacity LED as a mainstreaming prerogative

Implementation of local economic development strategies: policy and strategy development at local/regional levels Integrated development planning Collecting data and analysing trends

Implementation of local economic development strategies: financing local economic development initiatives Mobilisation of funds by local authorities and regional councils LEDA: creation of linkages with Development and Equity Trust Fund

Implementation of local economic development strategies: monitoring, evaluation and benchmarking Monitoring and evaluation: clear information on expenditure, activities and outputs Evaluation provides framework assessing programme’s effectiveness Benchmarking: tool for assessing a locality’s level of competitiveness LEDA benchmarks: competitiveness indicators, liveability indicators, governance indicators

conclusions LED is a long-term process Different stages or cycles in LED programmes Foundation stage: acquiring know-how Next stage: using know-how

Theme iiI: discussion questions What are the main forms of local economic development (LED) initiatives in Namibia? Discuss the various local dynamics of LED and the possible initiatives associated with them. Examine the different economic gains of LED and the potential initiatives entailed therein. Assess the development of the environment associated with LED and the possible initiatives to actualise them. Discuss the implementation of LED with respect to: organisation; policy and strategy development; financing; monitoring, evaluation and benchmarking. In what ways can LED be regarded as a time-specific and process-based endeavour?

In-class exercise Questions handed out by lecturer

Open debate/discussion Local economic development in Namibia is primarily shaped by central government policies, rather than the initiatives of regional and local governments.

Review: theme i Sub-theme Details Local economic development (LED) A relatively new concept in Namibia Formal adoption: LED policy framework in March 2000 by Association of Local Authorities in Namibia (ALAN) Legal context for LED in Namibia Vision 2030; National Development Plans; Local Authority and Regional Councils Acts; Decentralisation Policy and Enabling Act; Regional Development and Equity Trust Fund Act; National policy guidelines on public-private partnerships; Position paper on local government reform; White paper on local economic development; Enterprise development programme Types of LED programmes Orthodox LED approach: economic assessment; LED planning workshop; drafting of plan; strategic planning process PACA LED approach: appraisal of economic development challenges; drafting of proposals Focus of LED programmes Awareness creation; capacity building; expertise development; assistance to local authorities; local empowerment and regulatory framework; guidance on SME and informal sector development Formal LED approached: focus Business and industrial land infrastructure; tourism strategies; specific economic sector based interventions; empowerment and SME development; capacity building for economic development; investment promotion; partnership with business LED strengths Diverse actors; provision of funds by local authorities; primary area for technical assistance; development of national policy framework; existence of donor-funded programmes LED weaknesses Poor institutional capacity ; limited human resource at local level; lack of proper policies or strategies; poor private sector representation at local level LED opportunities Possible adoption of national LED policy; potential institutional arrangements; opportunities for capacity building LED threats Poor coordination between ministries at local level; limited resource and institutional capacity Main actors in LED Central government; local authorities; non-governmental organisations; stakeholders at the local level authority Main donors in LED Early donors: Friedrich Ebert Stiftung and Ford Foundation Current donors: GTZ, HIVOS, Finish Strategic issues for LED Capacity building at local level; stakeholder involvement; LED development approaches; local level LED networks; development of tools, guidelines and regulatory instruments; development of consulting skills pool; funding

Review: theme iI Sub-theme Details History of regional and local economic development (RLED) in Global North and South Global North: market-led approach Global South: market-led approach, community empowerment, human capital development, redistribution of resources, promotion of local creativity and innovation, mobilisation of local resources, adding value to local resources RLED in Namibia Emergence of sustainability and local economic development (LED) after independence Use of local human, physical and natural resources Principles of RLED Maximisation of human welfare; provision of sustainable development base; local level development strategies White paper on RLED Improving governance; promoting economic development and restructuring; enhancing social progress and quality of life LED: main characteristics Emphasis on notion of development; economic diversification; territorial focus; diversity of local actors; emphasis on long-term development Stakeholders in LED Public and social actors Role of central government in LED Allocating budgets; drafting proposals; spearheading employment and income-generating ventures; building local capacity; facilitating stakeholder communication; utilising competitive and comparative advantages; providing and spearheading funding for sub-national governments Policy and regulatory context of LED Vision 2030; National Development Plan; Private Sector Development Policy; decentralisation; partnerships (government, civil society organisations etc.); local regulatory framework; other policies and frameworks; Local Government Reform Position Paper; Medium-Term Plan

Review: theme iII Sub-theme Details LED initiatives Local Economic Development Local dynamics Communication, cooperation and collaboration Social welfare Creation of ownership and pride Welcoming attitudes Economic gains Identification and marketing of comparative and competitive advantages Investment attraction and business promotion Supporting SMEs and informal sector Attracting visitors and tourists Development of the environment Spatial considerations and urban/rural amenities Utilisation of townlands Environmental protection; Implementation of LED strategies Organisational arrangements and structures: National LED Agency, regional/local delivery mechanism Policy/strategy development at local/regional levels Financing LED initiatives Monitoring, evaluation and benchmarking

Plan for next two weeks Lecture: Tools in RLED (e.g. PACA, LOCATI, value chains, etc.) Group Presentations Review for Test 2

references GTZ/PEG in Namibia. (2008). LEDNA LED stocktaking survey: report on the state of LED for Namibia. Integrated Social Development Services. Sam Geiseb. Ministry of Regional and Local Government, Housing and Rural Development. (2008). LED white paper. Regional and local economic development. Windhoek: Republic of Namibia.