The GTZ Product Local/Regional Economic Development LED Experience Exchange Phu Quoc 24th-26th of September 2008

Characteristics of LRED There is no "blueprint" for LRED-Projects. Objectives, concepts, interventions and approaches are often different depending on the professional background (f. example social vs. economic orientation) of the people involved. Planning of LRED projects depends on the situation in the respective region and should include different change projects rather than a fixed plan/strategy. M+E Verbreitung/ Anpassung Knowledge Mangement Cap.Building Upscaling/ Adaptation Joint vision Strategic objectives (2-3) Change Projects In all cases one rule applies: LRED is always a change process which is achieved by networking between different stake-holders. Therefore LRED is not a concept or instrument but rather a process.

Conditions for a successful LRED process Sufficient number of private companies and a minimum of organizations. A minimum of supporting agencies (service providers). Economic potential, not only subsistence economy . A minimum of social and material infrastructure (energy, roads, education etc.) Commun understanding of the stakeholders regarding the problems/challenges and a general willingness to change (certain pressure is felt by all stakeholders) Willingness and capacity of the private and public sector to enter into a constructive dialogue. Capacity to lead and govern of the main stakeholders (local champions).

Principles of the LRED approach capacity building spatial orientation transpa-rency partnership orientation learning cul-ture and sys-temic thinking participation process orientation market driven impact orientation opportunity driven strategic orientation

Instruments for LRED interventions at different levels Meso CEFE-creation of business competences Capacity building of institutions (Business Associations) Investment- promotion Employment promotion Access to market information (e-commerce) PACA e-Government Introduction of new technologies New financial services Preparation of businesses BDS centers incubators Value chains Mikro Businessplan-contests Promotion activities Technical training Fairs Subcontracting-Programs Investment promotion Strengthening of existing companies (Mentoring) Business networks (Cluster) Purchase and sales organizations Business linkages

Instruments for LRED interventions at different levels Interventions at micro and meso level are not sufficient Meta Strengthening of interinstitutional/ business cooperation Public private dialogue Knowledge management instruments Leadership training Stakeholder-fora Regional trade Macro legal framework for enterprises Administrative reform Tax incentives Property rights Locational policy Industrial parks Territorial planning Reforms in the public sector One stop shops Economic infrastructure

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