Local Economic Development Programs Research Articles

Management and functional approaches to local economic development of communities

Local economies are key factors for ensuring the sustainable development of regional economies and countries in general, so there is a need to use effective approaches to managing local economies. The purpose of the article was to analyse the use of managerial and functional approaches to manage local economies in Ukraine, Germany, the USA, Poland and China, and to make recommendations for improving the local economy in Ukraine based on this information. The research was carried out using the methods of analysis, synthesis, specification, comparison and generalisation. It was found that the use of a joint management and functional approach to determine the key functions of the local economy and create strategies for their development is the most effective approach. The importance of understanding the peculiarities of the local economy and accounting for local resources, infrastructure and potential for the development of effective development strategies was highlighted. The need to involve local communities and stakeholders in the process of developing and implementing such strategies was emphasised. It was determined that the following things will help improve the economic climate of communities: ensuring sustainable and long-term financing of local economic development programs and projects, active participation and support of local communities and business representatives, development of public-private partnership mechanisms, increasing the level of competence and qualifications local personnel, application of innovative technologies and approaches, development of the system of monitoring and evaluation of results, strengthening of international cooperation. The results of this study can be useful for participants of the local economy, and can also be the basis for future research in the field of local economic development

The impact of local government economic development programs on city-level entrepreneurial activity: evidence from Southern California

PurposeThis paper examines the relationship between government economic development programming and entrepreneurial activity, by examining evidence in Southern California cities. While numerous studies explore this relationship between government institutions and entrepreneurship at the level of countries and states, significant questions remain at the level of city government, and the influence of local government economic development programs on city-level entrepreneurial activity.Design/methodology/approachThis paper uses regression analysis of data from all 215 Southern California cities to decompose the complex relationships between economic development programming and different types of entrepreneurial activity.FindingsResults suggest startups are attracted to cities with higher crime rates, more diversity, and older populations, yet not those with higher levels of economic development programming. There is evidence that some types of economic development programming may influence entrepreneurship, especially for the level of minority-owned businesses.Originality/valueThe paper makes three important contributions to the literature. First, it is among the first to use local (city-level) entrepreneurship as an outcome variable to measure the effect of government economic development programming. Many scholars have instead chosen to look at outcomes relating to general economic growth (e.g. new jobs) rather than outcomes specific to local entrepreneurship. Second, it explores city-wide entrepreneurial activity with respect to numerous measures, such as start-ups, minority and female ownership, and self-employment. Third, it examines the potential influence of economic development programming, both on aggregate and decomposed into economic development program clusters.

Mainstreaming climate change adaptation into pro-poor development initiatives: evidence from local economic development programmes in Ghana

ABSTRACT Climate change remains a serious threat to climate sensitive pro-poor development interventions in the Pru District of Ghana. This study examined how climate change impacts on Local Economic Development (LED) interventions, the extent to which climate change adaptation (CCA) initiatives are integrated into LED and the challenges associated with the mainstreaming process. Qualitative research design and purposive sampling was used to collect data from 28 respondents at the Pru District Assembly with an interview guide. The results show that climate change adversely affects the following LED programmes; beekeeping, micro-credit for agricultural development programme, and fishing net and outboard motor programmes. The findings further indicate that climate-smart Agriculture, aquaculture (Fish Cage Culture) and Sustainable natural resource utilization and management the CCA initiatives mainstreamed into pro-poor LED in the Pru District to reduce the inevitable impacts of climate change. The study identified multifaceted challenges militating against CCA mainstreaming in the District to include inadequate resources for CCA, inactive stakeholder and institutional collaboration, and lack of continuity of CCA programmes. This paper recommends strong government support for CCA programmes, commitment of adequate resources and effective stakeholder and institutional collaboration. The paper concludes that effective integration of CCA into pro-poor LED is a panacea to achieving sustainable local development.

Self-Report Accuracy in Local Economic Development Programs

Local economic development programs are primarily aimed at increasing employment and tax revenues. Data on these programs are collected through self-report surveys conducted by the International City Managers Association and others. This study evaluates predictors of accurate self-reporting. Using agency theory as a theoretical framework, the study measures the quantity of internal reporting components and the quality of financial reporting and evaluates how these are associated with accurate self-reporting. As a control, the condition of the local economy is also evaluated. The findings indicate a statistically significant relationship between the quality of financial reporting and the strength of a local economy with accurate self-reporting. Recommendations to improve research in this area are for the Government Finance Officers Association and the International City Managers Association to work together, with the former creating standards for reporting on local economic development programs and the latter aligning its survey with these standards.

ОПТИМІЗАЦІЯ ФУНКЦІОНАЛЬНИХ МЕХАНІЗМІВ УПРАВЛІННЯ МІСЦЕВИМ РОЗВИТКОМ ЧЕРЕЗ РОЗПОДІЛ ЇХ РИЗИКІВ

Any practical activity of public administration and local government (hereinafter - PA) is necessarily associated with a variety of risks. Particularly relevant is the issue of managing the risks that arise in the process of implementation of local economic development programs (hereinafter - LED). The rationale for the theoretical principles of risk management at the level of government bodies has not yet become a component of the theory of PA. It is primarily proposed to identify and investigate the risks that are specific to LED, for creating an effective risk management mechanism at the PA level. The purpose of the paper – is the development and justification of risk management principles with the use of functional PA mechanisms. In accordance with the concept of balanced development, the effectiveness of LED is determined by the process of interaction of «domains of influence»: politics, culture, economics, and ecology, represented in the «balance of equilibrium». In this approach, the source of potential LED risks is external influences and the process of interacting «domains of influence». This approach allowed us to establish a link between the distribution of the risk of interactions between «domains of influence» and the functional mechanisms of the PA LED. In order to manage the LED and its risks from the «domain of influence» policy (public authorities), it is proposed to apply such functional PA mechanisms as regulatory, economic, social and organizational. Consideration of all the factors influencing the LED process in their interconnection allows identifying the main risks. The next step is to carry out a quantitative assessment of the identified risks, which can be expressed as a relative or absolute level of costs, provided they are likely to occur. Accordingly, the risk management system should include risk identification procedures, their identification, and optimal distribution among the participants. Monitoring current risks, including the likelihood of risk updating and risk assessment, is also an integral part of the LED control system. At the same time, the key to ensuring the effectiveness of LEDs is to identify and share risks between partners. For the optimal allocation of risks, it is necessary to determine their attribution to the partner (representative of the «domain of influence»), which can more effectively manage and control each specific risk. In general, the maximum effectiveness of LED programs can be achieved by applying an optimal risk sharing option between the parties of interaction and choosing the optimal balance between budget funding and the resources involved.

Urban tourism, aerotropolis and local economic development planning: Ekurhuleni and O.R. Tambo International Airport, South Africa

Abstract One vibrant topic within the emerging scholarship around geographies of tourism development and planning concerns that of tourism and local economic development planning. Across many countries tourism is a core base for planning of place-based local economic development programmes. In post-apartheid South Africa the country’s leading cities have promoted tourism as part of economic development programming. This article examines planning for South Africa’s aerotropolis around the O.R. Tambo International Airport in Ekurhuleni, which is adjacent to Johannesburg. Under circumstances of economic distress and the need for new sources of local job creation Ekurhuleni is undertaking planning for tourism development through leveraging and alignment to aerotropolis planning. The nexus of aerotropolis and urban tourism planning is analysed. Arguably, the strengthening of tourism in Ekurhuleni offers the potential for contributing towards inclusive development goals.

Bela Beli Kulon Progo as A Policy for Strengthening The Capacity of Local Economy

One of the reasons for the State’s presence in society is due to market’s failure in providing its citizens with better welfare. The local economy2 that serves as a source of welfare for most Indonesian communities is placed under very strenuous conditions when having to confront capitalist economy. Remarkably differing backgrounds and resources create a highly imbalanced bargaining position. There have been numerous policies in the form of local economic development programs that have been carried out by Indonesia. However, the reality indicates that as of current the contribution of local economies in the GDP remains at approximately 50%. The interventions employed using a global approach, did not consider the specification of issues confronted by local economies, the State intervention performance metrics were very simple (activities) and there was a lack of serious evaluation regarding the intervention, which led to it not bearing much fruitful results. It was the Kulon Progo Regency which developed the concept of empowering local economy by using a specific approach confronted by the local economy. The policy is known as “Bela Beli Kulon Progo”. This article discusses the process undertaken by the Kulon Progo Regency in implementing the “Bela Beli Kulon Progo” movement which succeeded in boosting local economic development performance.

An Insightful Assessment on Impact of Local Economic Development Programmes in South Africa and Nigeria: Linking Socio-Cooperative Connections and Youths’ Participation

The study assembled insights comparison between two different Local municipalities in South Africa and Nigeria pertaining to youths’ participation linked to some socio-economic status within the context of the Local Economic Development Programmes. The study made use of (n-160) youthful participants who participated in various LED programs out of a total number of (n-205) youths whom were multi-staged sampled. Data were analysed using multivariate inferential statistics and Pearson chi-square Test for independence correlations between variables (Lowry, 2002) and employed descriptive procedures recommended by Creswell (2007). This study revealed acute institutional challenges, indifference and supportive legal framework system and a significant effect with maturity level due to pedagogic attainment viable among certain age group range. It recommends the need for cooperative linkages of youths to substantive opportunities and increased informational knowledge of programmes using career survey assessment to ascertain matching skills capabilities within the youth’s interest and their self-regulatory and self-efficacy. DOI: 10.5901/mjss.2014.v5n23p1621

Community social capital and entrepreneurship: analyzing the links

This study examines the effects of community social capital on entrepreneurial intentions (EIs) in rural communities in a developing country. Entrepreneurship, in the form of business start-ups, is widely recognized as an integral component of local economic development programs designed to address poverty and limited livelihood opportunities, especially among poor and marginalized communities in rural areas in developing countries. Using a survey of 496 individuals residing in five rural communities in the Philippines, and drawing from the theory of planned behavior and social capital theory, we examine the direct and indirect effects of community social capital (CSC) on an individual’s EIs. The findings show that CSC largely influences EI by shaping an individual’s perceived self-efficacy (PSE) to engage in entrepreneurship, perceived desirability of entrepreneurship (PDE), and perceived social norms toward entrepreneurship (PSNE). High levels of PSE, PDE, and PSNE have a positive influence on an individual’s EI. These findings offer more nuanced explanations of how social capital within a community can facilitate entrepreneurship as a means of community economic development. Implications of the findings and areas for future research are discussed.

Social Capital and Metropolitan Economic Development

Proponents of social capital theory have long argued that it is not only in the best interest of civic life to build social capital but that social capital is vital for the economic health of communities. Yet past studies have failed to distinguish among different types of social capital and relied on inaccurate measures of economic health. This study reexamines what has become conventional wisdom by analyzing the social capital of American metropolitan areas and its impact on economic wellbeing. It improves upon past studies by examining different types of social capital (i.e. trust, group membership, social networks) and substituting the change in competitive advantage jobs from shift-share analysis for total job growth in addition to traditional economic development measures of wealth creation. To the best of our knowledge, this is the first study to empirically test, and find significant, the long hypothesized importance of social capital in job creation at the level of the metropolitan economy. The study finds that bridging social capital positively impacts the economic welfare of communities with respect to job creation. The effect on job creation is substantial and equal to or exceeds that of many traditional factors related to urban economic growth. However, neither bridging nor bonding social capital is found to have an effect on per capita income change. Practitioners who attempt to create jobs through strategic planning, local public policy and economic development programs should incorporate bridging social capital to maximize the potential for success.

People, Places, and Public Policy: Some Simple Welfare Economics of Local Economic Development Programs

Most countries exhibit large and persistent geographical differences in wages, income, and unemployment rates. A growing class of place-based policies attempts to address these differences through public investments and subsidies that target disadvantaged neighborhoods, cities, or regions. Place-based policies have the potential to profoundly affect the location of economic activity, along with the wages, employment, and industry mix of communities. These programs are widespread in the United States and throughout the world but have only recently been studied closely by economists. We consider the following questions: Who benefits from place-based interventions? Do the national benefits outweigh the costs? What sorts of interventions are most likely to be effective? To study these questions, we develop a simple spatial equilibrium model designed to characterize the welfare effects of place-based policies on the local and the national economy. Using this model, we critically evaluate the economic rationales for place-based policies and assess the latest evidence on their effects. We conclude with some lessons for policy and directions for future research.

People, Places and Public Policy: Some Simple Welfare Economics of Local Economic Development Programs

People, Places and Public Policy: Some Simple Welfare Economics of Local Economic Development Programs

Modern industrial policy and zoning: Chicago, 1910–1930

ABSTRACT:Industrial policy has long been considered a federal responsibility. Indeed, most scholars date modern local economic development programmes as starting in the 1960s. Before that, in this view, industrial policy wasad hoc, unco-ordinated and fragmented. In this article, I argue that the origins of modern industrial policy initiated by the local state slowly emerged at the beginning of the twentieth century in Chicago. Using an assortment of sources, I show that a new type of industrial policy was forged in the conflict over the 1923 zoning ordinance. The city's real-estate, financial and political elites were able to mobilize information, science, funding, individuals and arguments to convince industrialists that zoning was to their advantage. In the process, the city's industrial interests were able to frame the new zoning ordinance to their ends.

Enclave development and ‘offshore corporate social responsibility’: Implications for oil-rich sub-Saharan Africa

This paper critically reflects on the challenges of engaging, proactively, in Corporate Social Responsibility (CSR) in oil-rich sub-Saharan Africa. Most of the region's oil production takes place in enclave-type environments offshore and in countries ruled by autocratic governments which generally exert minimal pressure on companies to embrace CSR. With companies having little sense of who to target in their local economic development policies and programs, there is always a possibility of ‘offshore CSR’ – recognized here as potentially-effective ideas for improving social welfare that linger within the enclave and never fully materialize – surfacing. The aim is to conceptualize and broaden understanding of the challenge of developing CSR programs in these settings, where there are no clear linkages to communities or local economies more generally.

Emotional confidence levels and success of tourism development for poverty reduction: The South African Kwam eMakana home-stay project

Poverty reduction is a central component of South African government local economic development (LED) programmes. The Grahamstown Kwame Makana pilot project for promotion of tourism home-stays aims to assist disadvantaged women to become self-reliant entrepreneurs. However the project has only met with partial success. This paper uses an emotional intelligence (EI) methodology to assess the empowerment and confidence levels of the women. The major findings are: a) the home-stays are lacking entrepreneurial steering, reflected by absence of marketing strategies and a heavy reliance on one distribution channel; b) a majority (74.3%) scored low on self and social awareness, self-management and social skills. The paper argues that disadvantaged groups with low emotional confidence levels will struggle to capitalize on opportunities for economic advancement. It concludes that in order to achieve LED, and hence poverty reduction, through tourism home-stays there is a need to focus on building confidence and empowerment of the women.

A multilevel growth assessment of the diffusion of management innovation nested in state levels: The case of US local economic development programs

The practice of local public programs is an interesting topic for the study of the diffusion of management innovation. Based on previous research on the diffusion of innovative policy in state governments, this research employs a panel design to analyse the passage of management innovation related to local economic development programs. Panel data drawn from 1994, 1999, and 2004 USA International City/County Management Association (ICMA) surveys on economic developments of municipal and county governments were used. Using a multilevel growth curve model, the findings indicated that the diffusion of management innovation (e.g., adoption of economic development plans and performance measures) did not spread as expected between and within the localities sampled, even if management innovation has become a widespread practice in federal and state governments. However, our estimates found that the diffusion factors (e.g., internal determinants, learning, and competitiveness) contributed to the adoption of a performance measure and to an economic development plan to retain and attract local businesses and to drive economic growth. Using a panel design (rather than a cross-sectional study) to look at the changes of adoption of management innovation, this research examined the diffusion of policy innovations in local management. State factors are found to have an impact on local practices in the USA.

The contribution of trout fly fishing to the economy of Rhodes, North Eastern Cape, South Africa

Recent government legislation, which calls for the eradication of trout from ecosystems where they may cause harm, could damage the tourism appeal of many South African catchments. However, no South African studies have tried to quantify the economic impact of removing trout from rivers and streams. This study aimed first to value the Rhodes trout fishery, North Eastern Cape, South Africa, and second to assess whether the trout fly fishing industry in Rhodes could form the foundation for the implementation of a local economic development initiative. Overall, the study found that the trout fishing industry directly generates approximately R5 658 240 per annum, and sustains a minimum of 39 direct job opportunities for the community of Rhodes, and can therefore provide the impetus for the creation of a tourism-based local economic development programme.

Economic Development Specialty Tracks: A Survey of MPA Programs

Over the past two decades, in a constantly changing global economy, local economic development programs and activities have grown in prominence as cities and metropolitan areas across the country have struggled to strengthen their economic base and increase job opportunities for their populations. Although local governments are expected to play a more proactive role in building their economies, the reality of global competition is that government cannot go it alone. Governments are important in helping to shape the local business environment, but so are companies, colleges and universities, and many other local institutions. A potentially significant component of collaborative networks are universitybased, graduate-level policy and management programs that can equip economic development officials with the knowledge and skills needed to effectively respond to the heightened level of competition brought on by the new global economy. This article analyzes how current graduate-level public administration (MPA) programs are responding to these challenges based on a survey of economic development specializations in MPA programs in the United States. The article describes the general direction and focus of economic development specializations offered in MPA programs in the United States and the extent to which MPA economic development specializations are addressing specific “core competencies” in the knowledge and skills of economic development professionals.

EThekwini Municipality's economic developmentrelated capital programmes: Improving the prospects of the urban poor?

Considerable attention has been focused on post-apartheid urban development challenges facing local government in South Africa. Much of this attention has reflected the national priority areas of basic needs and housing-related delivery priorities. However, there is a growing body of research and writing which examines the local economic development agendas and activities of local government in South Africa's cities. This paper examines one such city, namely Durban. The intention of the paper is to understand the policy intent underlying the design of local government-funded, economic-oriented capital investments that have been managed within the context of municipal local economic development programmes. The paper also provides some preliminary reflections on impacts.

Local Economic Development Policies

This chapter seeks to provide useful advice for local government policy towards economic development programs. The chapter: Reviews the size and scope of local economic development programs in the United States; critically analyzes the various rationales offered for these programs; makes recommendations for what local policy should do about business attraction and incentives, business retention, new business development, high technology development, brownfield development, distressed neighborhoods, and downtowns; and discusses how local economic development programs should be organized, managed, and evaluated.