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LOCAL ECONOMIC DEVELOPMENT (LED) WORK in GHANA an Extract from the GGA-WA Publication Titled “Economic Development Pathways for Local Area Development

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LOCAL ECONOMIC DEVELOPMENT (LED) WORK in GHANA an Extract from the GGA-WA Publication Titled “Economic Development Pathways for Local Area Development MINI REPORT MAKING LOCAL ECONOMIC DEVELOPMENT (LED) WORK IN GHANA An extract from the GGA-WA Publication titled “Economic Development Pathways for Local Area Development Published by Good Governance Africa – West Africa Center Yekeimah Square, Opposite Fiesta Royal Hotel Dzorwulu Accra Written by: Kwadwo Ohene Sarfoh (PhD), PSS Urbania Edited by: Edward Teye Sarpong, GGA-WA Designed by: Prince Antwi, Emerebi Grafix Table of Content 3 Forward 5 Acknowledgement 6 Introduction 8 Contextual Issues: Local Economic Development (LED) Challenges in Ghana 12 Tools to address LED Challenges 21 Policy Recommendations 23 Conclusion 24 Bibliography FORWARD The Good Governance Africa (GGA) is a not-for-profit research and advocacy based instuon dedicated to using good governance principles to support the growth and effecve governance of development iniaves on the African connent. The aim is to alleviate poverty and improve lives of the good people of Africa through advocacy and fact-based dialogues that could shape policy reforms. The West Africa Centre based in Accra – Ghana, is one of many Centres strategically opened to facilitate the coordinaon of meous intervenons to achieve growth and fair governance across Africa. The GGA-West Africa Centre commits to enhancing good governance principles in crical areas such as educaon, land and property rights, local governance and decentralisaon, transparent governance and an-corrupon fight amongst others. Since its establishment in 2015, the Centre has partnered relevant instuons in the public and private sectors to conduct research and debate crical issues as well as advocate for improvements in the lives of the marginalised and vulnerable in society parcularly in Ghana with planned future intervenons in Liberia, Sierra Leone and the Gambia. Under its work in the local governance and decentralisaon sector, the GGA-WA Centre commits to assisng metropolitan, municipal and district assemblies (MMDAs) to find praccal soluons to local problems. As the highest development authories in our local areas under the 1992 Constuon of Ghana, the MMDAs have been handed the responsibility to coordinate development iniaves at the district level and ensure growth and prosperity of their people. With the transfer of power and personnel from the central government instuons under the local government and decentralisaon policy of the country, the MMDAs have received a boost in the performance of their mandate within the last three decades. In spite of the gains made since the adopon of the decentralisaon system of governance in Ghana about 3 decades ago, local level development sll lags behind. 3 MINI REPORT Local economic development (LED) iniaves promoted by successive governments since independents some 63 years ago connue to yield minimal results. Some have blamed this situaon on the centrally designed nature of LED iniaves and others on the failure of MMDAs to create the enabling environment for local enterprises to grow and be sustained. The GGA-WA Centre strongly believes a good understanding of the concepts and principles on LED is needed by all stakeholders. There is the need to review what has been done so far by the country to enable MMDAs chart a new course of acon for the districts in terms of expanding their economies. This publicaon is a follow-up from pilot LED trainings for district level officials and other stakeholders in the Greater Accra and Western Regions of Ghana. This is a 'Mini Report' carved out of another GGA publicaon tled “Economic Development Pathways for Local Area Development”. The Mini Report is targeted at LED stakeholders that require summarised informaon on the processes and alternave courses of policy acons. Tina Serwaa Asante-Apeatu Execuve Director, GGA-WA Centre 4 MINI REPORT ACKNOWLEDGEMENT GGA-West Africa Centre is parcularly grateful it's Board Chairman Nana Osei Bonsu, the C.E.O of the Ghana Private Enterprises Federaon (PEF) for his connuous exemplary leadership and direcon. We say Nana “ayekoo…!!!” To the lead trainer Dr. Kwadwo Ohene Sarfoh, director of PPS Urbania Consulng Firm who led the Greater Accra trainings and also put together the original content of this report, the Centre is grateful for your dedicaon and commitment to delivering excellent services. We look forward to more opportunies to support instuons that have been entrusted to deliver local services and alleviate poverty. GGA-WA is also parcularly grateful to all selected district officials from the greater Accra Region of Ghana for availing themselves for the LED trainings and acvely sharing the LED experiences from their districts. Your inputs contributed to the write up of this report and the report tled “Economic Development Pathways for Local Area Development”. The districts being acknowledged are as follows; Ledzokuku Municipal Assembly (LEKMA) Adentan Municipal Assembly (AdMA) Tema Metropolitan Assembly (TMA) Ashaiman Municipal Assembly (ASHMA) Ningo-Prampram District Assembly (NiPDA) Ayawaso East Municipal Assembly (AEMA) Ablekuma Central Municipal Assembly (AbCMA) Ga East Municipal Assembly (GEMA) Ga West Municipal Assembly (GWMA) Shai Osudoku District Assembly (SODA) To the staff and representaves of the Ministry of Local Government and Rural Development (MLGRD and the Greater Accra Regional Coordinang Council (GARCC) who came to support the trainings, the GGA-WA Centre remains appreciave of your connuous support in our joint resolve to enhance capacies of our local authories. It is the hope of the Centre that the sustained momentum in the development of the capacies of these actors will trickle down to ensure that the communies in the various districts are given the best services that they deserve. 5 MINI REPORT 1. Introducon ocal Economic Development (LED) currently, has no unified definion and development praconers, internaonal instuons and researchers have Ldiverse perspecves on LED. The different operaonal definions on LED are influenced by the enes unique approach to LED. Globally, some organisaons such as the United Naons describe LED as a locally-owned, boom up process by which local stakeholders from the public and private sector and civil society work together to support sustainable economic development (UN-Habitat, 2016). Whiles the Internaonal Labour Organisaon (ILO) also views LED as a parcipatory development process that ulmately leads to decent work (ILO, 2006). Researcher and development praconer, Bark (2003), explained that LED is about local capacity building that strengthens small and medium-sized enterprises through skills building and networking for wealth creaon. Similarly, according to Trah (2004), LED is a territorial concept and part of local development or regional management, specifically aiming to smulate the local economy to grow, compete and create more jobs, by making beer use of locally available resources. Among the research community, the different perspecves on LED emerge from their disncve disciplines. Despite the different views on LED, they all converge on some common characteriscs. These common characteriscs suggest that LED is a parcipatory and inclusive process drawing on mulplicity of actors and stakeholders within a territorially defined area and adopts a boom-up approach to create room for local input into governance and decision-making, and whose purpose is to build entrepreneurial capacity, improve opportunies for economic growth and the quality of life of the local cizens. LED works towards achieving mulple Sustainable Development Goals (SDGs). It is parcularly instrumental in advancing SDG goal 11 (on making cies and human selements inclusive, safe, resilient and sustainable) and SDG goal 8 (which aims at inclusive growth and decent work for all) (UNDP, 2015). The objecves of the LED process can be economic growth, business creaon, employment generaon, engendering innovaon, or combinaons 6 MINI REPORT thereof. LED is important and key to sustainable growth, poverty reducon and the elevaon of indices of the wellbeing of people and the society. Ms. Edith Wheatland, Rockland Farms, Photo: by Rockland Farm 7 MINI REPORT 2. Contextual Issues: Local Economic Development (LED) Challenges in Ghana n Ghana, the Ministry of Local Government and Rural Development (MLGRD) focuses on implemenng LED at the local level under the authority of local Igovernments (Metropolitan, Municipal, and District Assemblies - MMDAs) because local economies are the only “true” economies. In contrast, the naonal economy is an aggregaon, defined as the sum of the naon's producon of goods and services, for which public policies and measurement tools are very broad and high-level. However, changes in the naonal economy can only happen as the economies of the smaller geographic units such as cies, rural areas, and regions, change. In making LED work in Ghana, the naonal LED policy and operaonal manual was developed in 2013 to guide MMDAs in implemenng LED (MLGRD, 2013). Nonetheless LED implementaon in Ghana is currently faced with numerous challenges summarised under eleven categories (see figure 1). Figure 1: Local Economic Development (LED) Challenges in Ghana Source: Consultant Construct, 2019 As depicted in figure 1, awareness of the naonal local economic development policy and operaonal manual by key MMDAs actors and the private sector is low. There is a misunderstanding regarding even what the concept of LED is among MMDAs and who owns it (Akudugu, 2018, MLGRD, 2019). However, under the 8 MINI REPORT Contextual Issues: Local Economic Development (LED) Challenges in Ghana communicaon strategy
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