The ME&A LED Center

ME&A specializes in developing and implementing programs in Regional and Local Economic Development (LED). Why? Because finding the answers for sustainable development skopje_macedoniaof underdeveloped or developing nations and peoples requires a thorough understanding of the impediments to and potentials for economic development, so that creative solutions can be designed and delivered. LED is an `important, perhaps the most important, key to sustainable growth, the reduction of poverty, the elevation of indices of well being of a people and society. But first some definitions:

What is Economic Development? Jane Jacobs, the venerable urbanist and economist says that development is “significant qualitative change.” Economic development then is qualitative change in the economy.

LED is the process by which public, business and non-governmental sector partners work collectively to create better economic conditions for a locality and its region. The objectives of the LED process can be economic growth, business creation, employment generation, or combinations thereof. The key to the process is the public-private partnership between local governments, private businesses, business associations, NGOs, and other stakeholders.

ME&A has a long involvement in local economic development, and the related-fields of community development, strategic planning, firm-level business development, local government, competitiveness, community outreach and public awareness. Here are some examples:

  • Northern Chautauqua Regional LED Project. A current regional economic development initiative for a 40-mile region of Lake Erie waterfront and watershed in Western New York. The project provides assistance to the Northern Chautauqua Community Foundation, consisting of economic regional definition, association institutional development (HICD), regional economic development strategic plan development, regional profile and competitive analysis, business cluster identification and prioritization, stakeholder identification and outreach, monitoring and evaluation.

  • Albanian Local Government Development. As part of the USAID-funded Public Administration Program for Albania (PAPA) project, pilot cities were assisted in the creation of LED commissions, LED strategic plans were designed and implemented, and capital improvement plans where completed in support of LED strategies

  • Poland: the “Fabrykat 2000” project assisted in the creation of technology transfer programs and the development of technology transfer institutions in Warsaw, Krakow, Lodz and other cities. Emphasis was placed on manufacturing extension with the purpose of helping Polish firms develop their international competitiveness as they approach EU accession.

  • Macedonia and Albania: ME&A trained local government officials and members of the private sector in entrepreneurship, business management and LED on behalf of the Albanian American Trade & Development Association.

  • Ukraine: ME&A worked with municipalities in the Kharkiv Region to develop LED strategic plans and implement business extension services. An industrial sector study was also completed and a report issued for use by public and private interests in making investment decisions (these sector studies are available elsewhere on this website).

  • Moldova: ME&A implemented a nationwide public awareness campaign on behalf of the Ministry of Privatization so that citizens understood the privatization process, fundamentals of a market economy, and the rights and responsibilities of private company ownership.

  • “Local Economic Development Along Transportation Corridor VIII” project, a Trans-Balkan initiative involving Albania, Macedonia, Bulgaria and Kosovo in preparing their local economies for taking advantage of anticipated new business opportunity associated with highway, rail and pipeline links. Project elements included network development, advocacy, LED, and cross-border project development among network partners.

  • Macedonia Competitiveness Activity. ME&A  identified key industrial clusters for further development of an internationally competitive economy for the country.

Focusing on local economies in development work is crucial because local economies are the only “true” economies. In contrast, a national economy is a macroeconomic generalization, defined as the sum of a nation’s production of goods and services, that is a useful one for purposes of public policy development, measurement, and to design economic interventions. But changes in national economies only happen as the economies of cities and their regions change. “A national economy is the sum of a nation’s city economies and the past and current secondary effects of city economies upon the economies of towns, villages and wildernesses,” again, according to Jacobs.

Who Makes Local Economic Development Happen? In a market economy, the engines of economic development are primarily private businesses that create wealth and jobs. But the private sector cannot succeed without favorable business conditions in which to thrive and grow. Local governments and other public sector actors have a major role to play in helping to establish and maintain those favorable business conditions so that firms in the city’s region can compete successfully with firms from other regions.

What are some other advantages of a focus on LED?

  • LED fosters efforts towards decentralization, and is antithetical to government centralization.

  • LED supports civil society development. LED is a tangible process through which local government, private businesses and their interests, NGOs, labor interests and private citizens can work together collectively to develop their economic environment

  • LED supports democracy building because it places mayors and other locally elected officials at the center of economic development policy-making for the community, where they belong.

  • LED relates to community development programming and essentially all development programs related to infrastructure, public facility and social program delivery. All either contribute to or are affected by the local economy.

Our Approach to LED

For a locality or region that is new to LED, the first steps concern organization (who is involved and how is it staffed), followed by completion of a community or regional profile and competitiveness (SWOT) assessment; development of an LED strategy; implementing that strategy; and finally, a monitoring and evaluation system for continual feedback on the effectiveness of the strategy so that corrections to it can be made as it unfolds. Emphasis is always on making the process a participatory one, with inclusion of all significant stakeholders in the community or region.

Training is an important ingredient in the initial phase of assistance, so that key persons and institutions fully understand the concept and process, as well as their particular role and the roles of other stakeholders. Organizational development includes a review of alternative models for LED organization and selection of the one that best meets community needs. Hands-on assistance follows to facilitate the assessment phase, and based on the results, implementation of the strategy.

LED Tools and Methodologies

ME&A employs a number of tools and methodologies in performing its work in assessing, designing, developing, implementing, monitoring and evaluating LED programs. These include:

  • Stakeholder analysis
  • SWOT analysis
  • Regional profiling
  • Competitive analysis
  • Cluster development guidelines
  • Cluster committee work sheets
  • Cluster assessment guidelines
  • Organizational analysis and development utilizing HICD Human Performance Technology methodologies
  • LED Evaluation Survey Questionnaire

LED Reference List

Books, manuals, papers and other resources related to LED:

  • Belton, Hugh, "Becoming an Entrepreneur: A Handbook for Assessing Business Opportunity" (1996) An ME&A manual for business development
  • Blair, John P., "Local Economic Development—Analysis & Practice", Sage Publications, 1995
  • England, Thomas C., "Strategies for Creating Public Private Partnerships for Local Government—The Role of the Mayor (1990). Presentation at the 4th Great Cities of Americas Conference, Buenos Aires
  • Fairbanks, Michael, and Lindsay, Stace, "Plowing the Sea: Nurturing the Hidden Resources of Growth in the Developing World," Harvard University Press (1997)
  • ICMA, "Building Citizen Involvement—Strategies for Local Government" (1995) A training handbook.
  • Jacobs, Jane, "Cities and the Wealth of Nations," Random House, 1984
  • Jacobs, Jane, "The Economy of Cities," Random House, 1969
  • Jacobs, Jane "The Nature of Economies," Random House, 2000
  • Kemp, Roger L., (editor), "Strategic Planning in Local Government—A Case Book," American Planning Association (1992)
  • Nichols, J. Hugh, "A Strategic Economic Development Planning Process for Local Government in Albania, " USAID Project (1996)
  • Peirce, Neal R., "CITISTATES—How Urban America Can Prosper In A Competitive World," Seven Locks Press (1993)
  • National Council for Urban Economic Development, "An Introduction to the Economic Development Process," (1980)
  • Porter, Michael E., "Competitive Strategy: Techniques for Analyzing Industries and Competitors," Free Press (1998)
  • Porter, Michael E., "The Competitive Advantage of Nations," Free Press (1998)
  • Rusk, David, "Cities Without Suburbs," Woodrow Wilson Center Press (1993)
  • Timmons, Jeffrey, with Smollen and Dingee, "New Venture Creation: Entrepreneurship In The 1990's," Irwin (1985)
  • The Urban Institute, "The Community Builder's Handbook, " Urban Land Institute (2000)
  • Urban Development Unit, The World Bank, "Local Economic Development: LED-- Quick Reference," The World Bank, 2002