1. ArR720S: applied regional and RURAL economic development
Practical Examples and Case Studies of LED Activities and Initiatives in Namibia
ArR720S: applied regional and RURAL economic development

2. outline
Objectives
Regional and local economic development: legal context, focus and characteristics
Local dynamics, economic gains, environment and implementation mechanisms
Discussions, debate and review

3. Objectives
To assess the state and characteristics associated with regional and local economic development in Namibia (theme I)
To discuss local economic development initiatives and implementation in Namibia (theme II)
To engage students and assess their understanding through interactive discussions

4. Theme I
State and characteristics associated with regional and local economic development in Namibia

5. 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

6. 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

7. 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.

8. 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

9. 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

10. 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”

11. 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

12. 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

13. 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.”

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

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

23. 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

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

25. 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

26. 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.

27. 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

28. 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 donors involved in Namibia’s LED?
Assess the urban bias, strategic issues, principles and characteristics entailed in LED for Namibia.

29. Theme II
Local economic development initiatives and implementation in Namibia

30. 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

31. 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

32. 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”

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

34. 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

35. 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

36. 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

37. 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

38. 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

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

40. 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

41. 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

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

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

44. 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

45. 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

46. 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

47. 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

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

49. 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

50. 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

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

52. Theme ii: 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?

53. 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 donors in LED
Early donors: Friedrich Ebert Stiftung and Ford Foundation
Current donors: GTZ, HIVOS, Finish
Strategic issues , principles and characteristics for LED
Strategic issues: 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
Principles: maximisation of human welfare; provision of sustainable development base; local level development strategies
Main characteristics: emphasis on notion of development; economic diversification; territorial focus; diversity of local actors; emphasis on long-term development

54. Review: theme iI 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

55. Plan for next week
Lecture: The Direct and Indirect Roles of Local Government, the Private Sector and the Public in Local Economic Development; The Role of Public-Private Partnerships

56. 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.