Regional Development and Governance Symposium Ankara September 2006 REGIONAL DEVELOPMENT AGENCIES: TOOLS TO STIMULATE ECONOMIC DEVELOPMENT David Walburn.

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Presentation transcript:

Regional Development and Governance Symposium Ankara September 2006 REGIONAL DEVELOPMENT AGENCIES: TOOLS TO STIMULATE ECONOMIC DEVELOPMENT David Walburn Eurada Past President

Issues in Regional Economic Development Concepts of Market Failure Strengths of Markets and Limitations of Public Policy Interventions Interventions with the Grain of the Market – Incentives Long Term Strategic Commitment Importance of Leadership and Multi-Sector Partnerships Economic Growth VS Regional Development Parallel Agendas of Growth and Social Cohesion

RDA’s – Problems of Definition Wholly Funded Government Organisations Public/Private Partnerships General Function or Specific Function Eg: UK: 9 Large Regional Agencies: National Programme - London Development Agency: 400 staff, annual budget: £400 Million - Plus: local authorities, small business service, enterprise agencies, skills agencies US: City Based Agencies: Tax Base Driver - federal, state, city programmes - private sector leverage

Regional Development Agency Functions Regional Development Agency Functions Regional Strategy –Political and Business Stakeholder Buy In –Identification of Market Failure and Action Priorities Devise and Implement Programmes to Fulfil Strategy Research and Intelligence on Regional Economy Centre of Expertise for Good Practice Leadership of Development Agenda Relationship with National Programmes and Strategies

Regional Development Agencies: Good Practice Features Partnership Working With All Sectors Vital to Local Economic Development both on Strategy and Delivery Achieving Leverage of Resources From Other Sectors Seeking Commercially-Based Solutions and Operating More Like a Business Than a Government Bureaucracy Market Failures to Market Solutions Maintaining a Regime of Work Evaluation

Regional Development Agencies: Tools or Wielders of Tools?

Areas of Market Failure Small Business Development Labour Market Issues – Skills and Training Inward Investment – Regional Promotion Real Estate and Physical Infrastructure Common to all Types of Economies and Regions.

Avoiding Pitfalls Priority of Demonstrably Adding Value to the Region High Proportion of Resources Into Programme Delivery Only embark on Programmes which are Researched and Fit For Purpose –Avoid “Something Must be Done” Programmes Flexibility of Action in the Light of Experience – But Consistency to Achieve Long Term Objectives