The ILO has for some ten years now worked to promote the creation of local economic development agencies (LEDAs), particularly in crisis situations. Bringing together a wide range of public and private partners, including employers and workers (ILO's traditional constituents), LEDAs are uniquely placed not only to ensure that the jobs created as a result of their efforts improve the working and living conditions of the poor but also to promote a process of social dialogue. LEDAs can thus play a key role in promoting decent work at the local level. The decent work concept encompasses the promotion of fundamental principles and rights at work, job creation, the promotion of social protection and the promotion of social dialogue. Introduced by the ILO's Director-General, Juan Somavia, the decent work concept is the concrete expression of ILO's commitment to the sustainable human development paradigm adopted at the World Summit on Social Development (Copenhagen, 1995).

LEDAs aim at an optimal use of human and other resources in a certain geographical area, usually a so-called "economic catchment area", so that groups traditionally excluded from the economic development process have a chance to become active members and beneficiaries of the local economy. A key principle is that the planning of resource utilisation is done by the population itself. This requires not only a strengthening of existing capacities through institution building but also a process of facilitating consensus and coordination. LEDAs vary in their geographical coverage from one or more municipalities to the level of a department or province. They also vary in terms of their composition. In addition to geographical criteria other factors tto be taken into account when establishing a LEDA are: cultural homogeneity, socio-economic coherence, income generation capacity (to ensure financial sustainability) and possibilities for effective community participation (to obtain social sustainability).

LEDAs are membership organisations, made up of representatives of the public sector (local, regional and national government agencies) and organized civil society (private sector employers, workers' organizations, farmers' associations, cooperatives and other non-governmental organizations). Usually LEDAs are independent bodies constituted after an intensive, participatory process of promotion and preparation. The membership of a LEDA elects from its midst a representative board of directors of up to ten persons; the board, in turn, appoints a small staff of three to five professionals. The LEDA board and staff work to build consensus among members on the local economic development strategy most appropriate to the economic opportunities and constraints of the region. They then attempt to make the most rational use of available resources to implement the strategy agreed upon by providing technical and financial assistance to (potential) local entrepreneurs and others to help start, reactivate and strengthen enterprises, particularly those that are employment-intensive and environmentally friendly.

Since LEDAs facilitate a decision-making process based on the problems identified by the area's population itself they become a key instrument for the economic development of the area and help reduce the need for external technical cooperation. LEDAs can further play a significant role in enhancing the decentralization process going on in many developing and transition countries.

The first task of a LEDA after its constitution is to take stock of available institutional, human, financial and natural resources. This will serve as the basis for strategic planning and coordination of LEDA activities. All member organisations are involved in this process for which normally the SWOT (Strengths, Weaknesses, Opportunities, Threats) method is used. This method is also used for organisational strengthening and capacity building of LEDA member organisations. The next step is an investment opportunity study for promotion of micro- and small enterprises during which all sectors of the community intervene in the identification of economic needs and in the possibilities to satisfy them through entrepreneurial activities. This usually leads to the design of an economic development plan. Activities proposed in these plans are not designed in isolation from already existing plans, projects and institutions since LEDAs aim as much as possible at inter-institutional coordination in order to use available resources efficiently, matching them with others and with new ones. For instance, LEDAs will only provide those services which didn't exist before in the area and refer clients to other institutions for services already available in the area. This requires that LEDA staff network with staff of other public and private service providers. Thus, although a LEDA has only a small staff it is able to mobilize the resources of other institutions for its activities.

LEDAs provide direct support services, strengthen the services provided by others and play an advocacy role at the policy level. Direct support may include entrepreneurship promotion, identification of opportunities, providing information on markets, technology, training and finance, entrepreneurship training, assistance in the formulation of business plans and facilitating access to credit. Strengthening the services of others may include the promotion of associations of local entrepreneurs and linking up with NGOs and private service providers to ensure that services are demand-driven. The advocacy role, in addition to trying to attract public and private investment to the LEDA's catchment area, involves promoting a favourable climate for small enterprise creation and development more in general.

Although LEDA-type organizations (usually called Regional or Local Development Agencies) have existed in industrialized countries for quite some time, their appearance in developing countries is more recent. Since 1991 ILO and UNOPS have been cooperating to promote the creation of LEDAs in conflict-affected countries. This cooperation started in Central America through PRODERE, a UN inter-agency multi-disciplinary programme for the reintegration of displaced persons and refugees which supported the creation of some 15 LEDAs. One of the best indications that LEDAs can become sustainable institutions is the fact that in Central America the LEDAs created with support from PRODERE continue to function without external support and in fact new LEDAs are being created in the region.

Currently, ILO, in cooperation with the UNOPS Division in Geneva responsible for UN programmes aiming at reconstruction and social sustainability (RESS) in conflict-affected countries, is promoting and supporting LEDAs in some 20 conflict-affected countries worldwide.

It is important to note that LEDAs not only help jump-start the local economy and facilitate the reconstruction and rehabilitation of local infrastructure following a period of conflict, but can also contribute to peace-building and reconciliation following civil strife by reintegrating returnees and helping to restoring essential services in such areas as health and education.

The ILO's Employment Sector is currently developing a multi-disciplinary approach to local economic development which harnesses the accumulated knowledge and experience of different programmes in the ILO to provide an integrated and complete range of services for the creation and strengthening of LEDAs, covering the following aspects:

- area-based analysis of the economic strengths, weaknesses, opportunities and threats, including the consequences of ongoing and planned privatization and restructuring efforts as well as the constraints and incentives of the national legal and regulatory framework;

-the promotion of public-private partnerships around economic objectives aiming at poverty alleviation through the creation of decent jobs;

-financial intermediation, including, if necessary, the creation and/or strengthening of micro-finance institutions, setting up of guarantee funds, attracting investment etc.;

-promotion of micro-enterprises, cooperatives and local business associations;

-basic business management training and the provision of other business development services in such areas as marketing, technology, subcontracting, supply-chain management, productivity etc.;

-vocational training and small subcontractor training;

-the development of participatory planning mechanisms which balance economic, social and environmental concerns and favour employment-intensive execution of local infrastructure works;

-gender mainstreaming and gender-specific needs.

It is through this integrated approach that the ILO, in cooperation with other partners, will continue to promote the LEDA concept in developing and transition countries as an effective tool to create greater opportunities for women and men to secure decent employment and income.