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LOCAL ECONOMIC DEVELOPMENT STRATEGIC PLANNING AND PRACTICE CASEBOOK WITH CASES FROM SMOLYAN MUNICIPALITY, BULGARIA CITY OF REZEKNE, LATVIA CITY OF POPRAD, SLOVAK REPUBLIC Gwen Swinburn and Fergus Murphy, Editors A Knowledge Product of 1818 H Street, NW Carl-Bertelsmann Str. 256 Washington, DC 20433 D-33311 Gütersloh, Germany Tel: +1.202.473.1000 Tel: +49 5241 81-81190 Fax: +1.202.522.3232 www.bertelsmann -stiftung.de/ www.worldbank.org/urban/led/ ACKNOWLEDGEMENTS This Local Economic Development (LED) Strategic Planning and Practice Casebook was compiled and edited by Gwen Swinburn, Senior Urban Specialist in the Urban Development Unit of the World Bank, and Fergus Murphy, Consultant. The Casebook forms part of an ongoing program of Local Economic Development Knowledge Sharing and Capacity Building, and is supported by the Urban Development Unit of the World Bank and the United Kingdom Department for International Development. In compiling this Casebook, special thanks are given to the agencies and organizations that have made this publication possible through their demonstrated good practice in LED strategic planning. These include: the City of Smolyan, Bulgaria; the City of Rezekne, Latvia; and the City of Poprad, Slovak Republic. Grateful acknowledgement is made to these agencies for granting permission to reprint these strategies for the purpose of this LED Casebook. The editors are grateful to the Bertelsmann Foundation for their support and comment in making this LED Casebook a reality. The editors would also like to express their gratitude to Dora Harris, Program Assistant, World Bank, and Robb Simms, Consultant, for the formatting of this Casebook. This LED Strategic Planning and Practice Casebook is a Knowledge Management Product of the World Bank and Cities of Change Initiative, and has been produced in conjunction with the Bertelsmann Foundation. DISCLAIMER The World Bank Group does not accept any liability for the accuracy or content of these strategies. The findings, interpretations and conclusions expressed in these documents should not be attributed in any manner to the World Bank or its affiliated organizations, members of its Board of Executive Directors, the governments they represent, or the Bertelsmann Foundation. The World Bank does not guarantee the accuracy of the data contained ni these documents nor does it accept responsibility for any consequences of its use. i TABLE OF CONTENTS DISCLAIMER .............................................................................................................................i INTRODUCTION TO CASEBOOK..........................................................................................3 OVERVIEW OF LED STRATEGIES ........................................................................................4 CITY OF SMOLYAN.................................................................................................................6 INTRODUCTION.................................................................................................................8 LOCAL ECONOMY ASSESSMENT ................................................................................. 13 DEVELOPING THE LED STRATEGY ............................................................................. 23 SWOT ANALYSIS.............................................................................................................. 24 CITY OF SMOLYAN ‘VISION TO PROJECTS’ MATRIX .............................................. 25 CITY OF SMOLYAN PROJECTS MATRIX..................................................................... 29 CITY OF SMOLYAN LED PROJECT IMPLEMENTATION PLAN................................ 35 STRATEGY IMPLEMENTATION.................................................................................... 37 MONITORING AND EVALUATION OF THE STRATEGY IMPLEMENTATION ........ 45 CITY OF SMOLYAN – EXAMPLES OF LED PROJECT ACTION PLANS.................... 47 CITY OF REZEKNE................................................................................................................ 60 INTRODUCTION............................................................................................................... 62 LOCAL ECONOMY ASSESSMENT ................................................................................. 67 DEVELOPING THE LED STRATEGY ............................................................................. 75 SWOT ANALYSIS.............................................................................................................. 75 VISION TO PROJECTS MATRIX..................................................................................... 78 CITY OF REZEKNE PROJECTS MATRIX ...................................................................... 80 LED PROJECT IMPLEMENTATION PLAN.................................................................... 81 CITY OF REZEKNE LED PROJECTS .............................................................................. 81 STRATEGY IMPLEMENTATION.................................................................................... 84 LED PROJECT ACTION PLANS ...................................................................................... 88 CITY OF POPRAD .................................................................................................................. 98 INTRODUCTION..............................................................................................................100 LOCAL ECONOMY ASSESSMENT ................................................................................108 DEVELOPING THE LED STRATEGY ............................................................................115 POPRAD LED ‘VISION TO PROJECTS’ MATRIX ........................................................118 POPRAD PROJECT IMPLEMENTATION PLAN...........................................................124 CITY OF POPRAD LED ACTION PLANS.......................................................................126 2 INTRODUCTION TO CASEBOOK When asked what is the most serious problem facing their community, most Mayors will include unemployment at or very near the top of the list. This was clearly the case when, as the World Bank and Bertelsmann Foundation were starting the Cities of Change program in 1999, participating Mayors were asked what policy issue they would most want see addressed in the pilot Cities of Change program. Mayors wanted to know how they could reduce unemploym ent and poverty in their municipalities. As a result of this interest, the local economic development cluster emerged. In 1999, at the beginning of the program, the concept of LED strategic planning was relatively new in Central and Eastern Europe, the Baltics and Balkans, but also comparatively new in Europe. Where good practice had been developed, it had only infrequently been published and there were relatively few capacity building and knowledge products available in the public domain to enable lo cal governments and their partners to learn how to develop their own LED strategies. The Cities of Change program aimed to help the LED cluster cities to design and implement their own LED strategies. A core task of the program was to develop practical knowledge products that could be used by municipal governments and communities to understand, design and implement integrated LED strategic planning. As a practical product of the program, this LED Strategic Planning and Practice Casebook seeks to help the reader understand municipal approaches to LED strategic planning by identifying good practice in strategic planning methodology. The Casebook serves as a collection of three local economic development strategies that provide examples of good practice from across Europe and from the Cities of Change network. The Casebook also contains good practice notes and comments. Most municipalities are tempted to develop long and highly detailed strategies, however, if the process is to be truly effective and output-oriented, the key is to develop short, well written strategies that are inclusive and encourage stakeholder involvement and input. As this Casebook demonstrates, the link between the evidence base, strengths, weaknesses, opportunities and threats, and the vision, goals, objectives, programs and projects needs to be fully understand if a community is to develop an LED strategic plan. The strategies contained in this Casebook each demonstrate strong linkages between the evidence base and LED strategic aims. Further information of LED Strategic Planning can be found at www.worldbank.org/urban/led where additional LED resources and case studies are available. The Cities of Change Web site (www.citiesofchange.net/) also lists the key resources and information about the pilot cities, strategic management more broadly, and environmental management. 3 OVERVIEW OF LED STRATEGIES This LED Strategic Planning and Practice Casebook has been compiled to provide examples of LED strategies and action plans that are comprehensive, well structured and integrated in their approach to improving the potential for local economic growth. The primary objective of the Casebook is to highlight good practice in LED strategic planning so that the lessons identified can be replicated and applied by other municipalities and cities in their efforts to develop their local economy. In compiling these strategies, a key aim is to showcase the benefit of devising an integrated LED strategy with appropriate programs and projects so as to create better conditions for lasting economic growth and employment