The Establishment of a Local Economic Development Agency
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chapter 3 The establishment of a local economic development agency 65 Promoting the idea A LEDA isn’t set up overnight; as much as a year or he impulse for creating a LEDA can come from two may be needed to turn a practicable idea for Tmany different actors. In the actual experiences establishing one in a given territory into a reality. described in this book the role of promoter was The initiative can come from local actors, from a played by international co-operation organisations, government or from international co-operation and so, for simplicity, our discussion will adopt organisations. However, the process of creating a that perspective. The first step in its creation is LEDA invariably comprises four methodological always to promote the idea with potentially inter- phases: promoting the idea, establishing it, ested parties, identify possible founding mem- starting-up and consolidating its impact bers, seek their consensus and encourage their in the territory and beyond. dialogue and participation in designing and implementing the project. For systematic initial consultation it is always useful to survey and list the territory’s interlocutors. Such a list will include: • public authorities and local administrations • local offices of State or public-interest institutions • universities and vocational training institutes • trade associations (organisations of farmers, industrialists, merchants) • workers’ associations and trade unions • financial institutions based or with a branch in the territory (banks, credit and savings co-operatives, development finance corporations) • associations (NGOs, professional associations, Honduras women’s organisations, etc.) The Executive • co-operatives and businesses. Committee of the LEDA in Ocotepeque All of these potential members are contacted and (Adevas) at work 66 67 the idea is presented, usually in separate meetings in fact, the latter may have only a vague idea of committee will be distributed to potential mem- facilitate the entry of new members. so that each can express its own view. The what the others are doing even though they bers for discussion and amendment until a final Both during start-up and once the LEDA is in promoters describe the positive experiences of operate in the same territory. In wide-ranging version has been hammered out. full operation, its members are involved and par- existing LEDAs, possible local applications are discussions touching on many issues beside the This process is usually time-consuming and it ticipate in at least two distinct ways, both strate- discussed and, if the idea catches on, a pro- LEDA, the interested public institutions, associ- cannot be sped up artificially. After all, the gic and operational. gramme for planning is drawn up. It is easier to ations of civil society and economic organisations potential partners are not individuals but organ- Within the framework of negotiation promoted win the different parties over to the idea when review the territory’s economic development isations, possibly with hundreds of members, by it to further local economic development, the there are successful LEDAs up and running in needs, resources and prospects, presenting their and with rules and procedures of their own. members can compare strategies, agree on objec- other parts of the country. Where there are no respective points of view and priorities: lack of The public institutions must also consult others tives, seek new forms of collaboration for national precedents, presenting the idea can production infrastructure, such as irrigation sys- before they can make decisions. Signing up as a enhanced economic impact, and explore new require much more time and effort. tems, silos, communication networks, electricity; member of the LEDA therefore entails lengthy, approaches to problems whose solution is Distributing informational material should foster deficient technical, vocational and entrepreneur- wide-ranging discussions involving a host of beyond the reach of any one individually. Ideally, understanding of the purposes and functions of ial skills; lack of resources for financing enter- actors. this policy-making and strategic integration will the LEDAs and the impact they can have on prises; lack of pre-investment finance; absence of produce plans for economic development that local economies. initiatives to deliver economic support to the In some cases it may be necessary to slow down reflect specific local development needs and con- It is always useful in this phase to collect infor- most disadvantaged groups. The participants the timetable of a LEDA’s creation in order to straints, enjoy the broadest consensus and indi- mation on the international development organi- then zoom in, defining its prospects and priority ensure that it will have a broad-based manage- cate the role it can play in the territory. Such sations that operate in the territory and their activities. Forums are an opportunity to test the ment structure. plans can constitute a key reference point not activities. If other international co-operation method of work that must characterise the In countries where there is little tradition of peo- only for the LEDA and its members, but also for organisations agree to promote the LEDA, a LEDA, namely that of social negotiation. ple joining together to form associations, the other local actors, for the national authorities group of sponsors can be formed. scant presence of producers’ and grass-roots and for the international co-operation organisa- The main practical outcome of these meetings is organisations would bias its management struc- tions active in the area. Once an initial agreement is reached in bilateral an organising committee formed by the entities ture toward the public sector. And where there By contrast, operational integration is achieved consultations, the promoters can organise local most interested in the endeavour. The commit- are glaring disparities between an entrepreneur- via the technical functions. economic development forums, to bring together tee’s task is to draft an initial design, the essen- ial elite and a largely unorganised population liv- The resources and energies that the individual all the potential members of the LEDA to dis- tials of which are: ing in poverty, a rush to create the LEDA could members bring to it are transformed through the cuss the proposal and offer a first collective • a profile of the structure, setting out likewise negate its function by excluding, in technical structure into common projects and expression of interest and consent. objectives, organisation, functions, legal practice, most of the population. activities. Suggestions of other parties that might be inter- form, budget, projects and activities Such situations require diligent, extensive dis- These integrated efforts generally constitute an ested are likely to emerge, thus enriching the • a plan indicating the main operational semination of information and active efforts to important innovation for technical personnel, map of potential members. Forums always gen- stages foster the birth of local organisations and associ- creating a new culture of local economic devel- erate exchanges of information and experience, • draft by-laws ations. To guarantee broad social participation in opment analysis and planning. not only among national and international par- its management structures, the utmost attention Information is crucial during the promotional ticipants but among the local actors themselves; The documentation produced by the organising must also be paid to ensuring that the by-laws phase. The potential members need to receive a Promoting the idea Promoting the idea 68 69 constant flow of information regarding the progress of LEDA planning and the procedures being readied to access its services. This will enable them to participate actively in formulating the strategic plan, identifying the first impact ini- tiatives and seeking solutions to all the problems involved in its creation. While initial consultation and planning proceed at local level, it will be necessary to contact the competent national authorities and institutions in order to present the idea to them and define the Costa Rica relationship between the LEDA and national A young broadcaster policies. Although its sphere of action is local, co- in the territory of the Canton ordination with national services, legislation and of Perez Zeledon programmes is indispensable for its sustainability. regularly broadcasts information on the work Organising national seminars on local economic of the LEDA development strategies and tools has often proved very useful. Preparing such seminars pro- vides an opportunity to draw up a national map of significant interlocutors: the interested author- ities and the more receptive, academic institu- tions that can be mobilised, specialised opinion- making centres, significant voices in the private sector and civil society, trade unions. Having representatives of well-established LEDAs or their networks from the industrial countries participate in these meetings is very fruitful; the knowledge and experience they contribute to sem- inars is unmatched in its promotional value. Proposals to international networks are also a powerful incentive for participants who normally Promoting the idea Promoting the idea 70 71 labour under all the disadvantages of isolation. build in systematic links and exchanges with others. unemployment. Box 1 actors may well need to turn to legal consultants Arranging visits by the