1. LED TG Seminar 10 th January 2005 Enabling the Economic Performance of Cities How City Strategic Planning Enables the Economic Performance of Cities (and so much more) (and so much more) Session 3 Gwen Swinburn Senior Urban Specialist World Bank, Urban Unit www.worldbank.org/urban/led Gswinburn@worldbank.org

2. World Bank Urban and Local Government Strategy...cities & towns must be sustainable in four respects...cities & towns must be sustainable in four respects  Livable  Competitive  Well Governed and Managed  Bankable … the Bank must improve its ability to strategize holistically and intervene selectively..* * World Bank Urban and Local Government Strategy 2000

3. Enabling City Competitiveness OECD Good Practice  Most OECD cities/towns have City Strategic Plans* addressing competitiveness issues (stand alone LED strategies or components in CSPs)  Most CSPs/LED strategies involve public sector driven partnerships  They are comprehensive, include hard and soft infrastructure projects, across all sectors  Usually a key focus is to improve the local business enabling environment (policy and operating environment) * City strategic plan is the generic name for City Development Strategies. Increasingly in OECD countries city regions are designing strategic economic plans, which address economic space not political space.

4. Definition of Urban Competitiveness* The ability of cities to continually upgrade their business environment, skill base, and physical, social and cultural infrastructures, …so as to attract and retain high-growth, innovative and profitable firms, & an educated, creative & entrepreneurial workforce, to thereby achieve a high rate of productivity, high employment rate, high wages, high GDP per capita, and low levels of income inequality and social exclusion ” * UK State of the Cities Report 2005

5. Three Waves of Local Economic Development WaveAimsTools First Wave 1960s to early 1980s Focus on the attraction of mobile manufacturing investment from outside the area Subsidised loans, direct firm payments, tax breaks, expensive and competitive low road industrial recruitment programs Second Wave 1980s to mid- 1990s Focus moved towards retaining and expanding existing business with direct firm payments Using both direct firm payments, providing managed workspace, advice and training for SMEs, technical support and business start up support Third Wave Late 1990s onwards Focus shifting from direct firm support to improving the entire business environment for better business growth & retention Note adoption of third wave techniques has not eliminated either good or bad practice continuing to be used from 1 st and 2 nd waves

6. Third Wave Features  Strategic planning, integrated & holistic  Business friendly red tape reduction  Horizontal and vertical partnerships to achieve economic competitiveness (Government layers)  Public/private partnerships  City networks that leverage effort  Grow your own jobs rather than import jobs  Whole business environment counts, not individual firms per se

7. 7 Our Definition of Local Economic Development for WB Pilots  The purpose of LED is to build up the economic capacity of a local area to improve its economic future and the quality of life for all  It is a process by which public, business and non-governmental sector partners work collectively to create better conditions for economic growth and employment generation at the local level

8. Strategically planned LED and the World Bank: Why?  To enable local government partnerships to improve the local investment climate to encourage job growth and sustainable development  To enable cities to act as drivers of local and regional growth and hence contribute to national growth  To encourage local governments to adopt good practice in terms of strategic planning, governance, financial management and stakeholder inclusion  To enable Local Governments and stakeholders to identify and prioritize investment needs

9. LED: where in the World Bank?  Within Urban to enable cities to be drivers of growth “ the competitiveness pillar of the urban strategy ”  Within PREM, Investment Climate and Private Sector Development work to ensure a conducive investment climate and balanced growth including at the local level  Within our Mining Global Product Group (WB/IFC) to ensure regeneration of declining mining areas and job replacement and to sustain new investments  Within our HD, ESSD, and Social Funds Groups to encourage strategic allocation of resources and sustainability of such investments at the local level.  To enable our Rural market towns to be drivers of rural growth.

10. 40 World Bank LED Pilots  Kosovo- a network of 12 towns and cities (SME)  Bulgaria, Latvia, Slovakia, Hungary & Poland- a network of 8 cities, 2 dropped out (Urban)  Bosnia and Herzegovina – two cities (IFC)  Albania- a network of 5 cities (SME)  Latvia- a network of 8 cities, incl. Riga (Urban)  Yemen- Aden plus two more port cities (Urban) All these projects are structured differently, funded by different parts of the Bank and all with different partners, but all are city networks, based within local governments, with stakeholders using a strategic planning approach. Municipal teams are responsible for strategy design development and implementation, not consultants.

11. How we approach LED within the World Bank pilots Using a strategic planning approach where city teams learn the methodology and design their own strategies  Stage 1: Organizing the Effort  Stage 2: Local Economy Assessment  Stage 3: Strategy Making  Stage 4: Strategy Implementation  Stage 5: Strategy Review

12. An Example: Poprad, Slovakia City Strategic Plan - Goals  Expand Tourism Industry e.g. promotion, build congress center, bike path  Expand [diversify] Economic Base e.g. industrial sites, European markets project  Expand Technical infrastructure (transport, economic, quality of life) e.g roads, industrial sites, Roma housing, sports hall  Improve Governance & local administration e.g. CIP, LED department, one stop shop  Social Inclusion and Skills Development e.g. ICT in schools, equal chance program

13. LED Knowledge Bank  Methodology, 5 stages  Case Studies, project and program ideas  Training Materials  Knowledge Products  Links to many more LED related web sites All available at: www.worldbank.org/urban/led If you would like to know more…