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T'..      @  @  @ X2XXtX    #XX2X2X#4  #XX24T  3 @ ! t8"X!##   @ 36  (C2$ r'S!..       V)..      @  @ X2XXtX    #XX2Wa# @  @ #WaX2X#]^WGCz hd p @X@E xx  (#(#   (#(##XX2Wa#(C2$ r'S!..     <6X9`(Courier New Level 1 Level 2 Level 3 Level 4 Level 5(C2$ r'S!..     (C2$ r'S!..     ($'dxdXYZ[\C<< c [ Y"..          @   t#XtX#t#  I  Wa#   @ #WaX2X#)Hairline d($     c r'S!..     X2XXtX    B.` hp x %#XB @  @ B+ ` hp x X%#B#XX2X2X#6  &hX2  1  6hr  #&&#W4(&  Wa(W4#Wa&#)&Differentinternationaldonorsandsponsorswereinvolvedintheseinitiatives,forinstance:theItalian X Cooperation,theNetherlandsCooperation,USAIDandPeaceCorps,GTZ,theCanadianCooperation,UNTrust  Funds,UNandEUprogramsandprojectsofdifferentinternationalNGOs.Financialagreementswereestablishedor Z areforeseenthroughjointventuresorloanswithIDBInterAmericanDevelopmentBank,CABEICentralAmerican _ BankforEconomicIntegration,WorldBank,GTZ,etc.^p)#^pX2X#ԳkIA`2WP TypographicSymbols  r'S!..     X2XXtX    B.` hp x %#XB @  @  @  P ?(` ` hp x X%#?#XX2X2X#6  &hX2  2  6r  #&&#W4(&.  Wa(W4#Wa&#)&Localactorscanbe:localauthorities,workersandemployersorganizations,cooperatives,NGOs, X producersassociations,ChambersofCommerce,banks,etc.^p)#^pX2X#      f  V)..      @ X2XXtX    B.` hp x %#XB#XX2Wa# @  @ #WaX2X#]gWGCz hd p @X@E xx  (#(#   (#(##XX2Wa#  Y"..         B.` hp x %#XB @   t#XtX#t#  2  Wa#   @ #WaX2X#@ABCDEFG 3579;=?AC1hHi      l  V)..      @  @  @  @ X2XXtX     9%` ` hp x X9 ?+ ` hp x ` ` X?#XX2Wa#WX G1XWaX2X1XWX G]mWGCz hd p @X@EXxxX (#(#   (#(#WX G1XXX2 = Y"..         ?+ ` hp x X? @     2  WX G1XXtX   @ X2X1XWX G / Y"..         ?+ ` hp x X? @ ! xx(X!t#XtX#t# @ X2X#QuickMark(X2{w$ r'S!..       0  3|P(('S$..    HP OfficeJet Pro 1170C Series0(0(0(9 Z6Times New Roman RegulartXa( 3#37=CIQYag1.a.i.(1)(a)(i)1)a)zi)x(ßdLEP U r'S!..     _      XX8#dd8SUt#XtXWat#    W߅ Wa  W߅ LOCALECONOMICDEVELOPMENT      `LocalEconomicDevelopmentAgencies(LEDAs) w  f ԀAninstrumenttopromoteEntrepreneurshipandDecentJobsat   DecentralizedLevel` f  ,  `  &,k% byAlfredoLazarteHoyle A    SeniorExpertinLED/ILO` d      ^p%&,k    X?+ ` hp x X?  ^pI.  f BACKGROUND f     XB.` hp x %#XB^p  TheInternationalLaborOffice,accordingtoitsconstitutionalmandatesandrespondingtotheparticular q  appealoftheinternationalcommunityduringtheSocialSummit(Copenhagen,1995),isworkingtogether 0 withtheUNDP,UNOPSandotherdevelopmentagenciesona LocalEconomicalDevelopment  ? approach( LED ).Generallyspeaking,the LED Ԁapproachpromotesandsupportsactivitiesrelatedto  employmentcreationandincomegeneration. m     _ l` Thepast6yearsthisapproachhasbeensuccessfullyimplementedincountriesinaspecialsituationlike ; waraffectedcountries,countriesintransition,countriesaffectedbynaturaldisastersaswellascountries  affectedbysocialconflicts.ILOisforexampleinchargeof LED activitiesinCroatia,BosniaHerzegovina, i SouthAfrica,MozambiqueandUkraine.The ԀLED ԀapproachwasdevelopedbyILOanditspartnersin (x CentralAmerica.6  6 r  #^pa `  1      ^p# 7     II.  LED:STRENGTHENINGLOCALCAPACITIESTOGUARANTEEASUSTAINABLEPROCESS $t     Itistodaycommonlyacceptedthattheb*^p>^p*blocaldimensionplaysafundamentalroleinthesustainabilityof  differentdevelopmentprograms.Theinvolvementofb*^p>^p*blocalactorsinthedifferentstagesoftheseprograms d hasdemonstratedtobecrucialastheyknowthemaincharacteristics,potentialandproblemsintheir &v territory.Theseactorscomingfromthepublicandprivate(profitandnonprofit)sector,formthesocial, 5 economicandinstitutionalbackboneofsociety.6  6]r  #^pc `  2      ^p#ԀTheycanthereforedefineprioritiesandthemostsuitable    answerstolocallyfeltneeds.Participationinthedecisionmakingprocessbystakeholdersinthelocal  economyisanessentialelementoftheLEDԀapproach.TheLEDԀapproachpromotesalsodialogue o betweenthedifferentpartnersinordertominimizefrictionsandguaranteethesustainabilityofits .~ activities. =     ThemainobjectivesoftheLEDԀmethodologyare: k dX#X^pe  (   X  ?( ` hp x X%#?X#X#XX    XB.` hp x %#XB(L  ^p#XX#^p(Lc݌̌   $ X%#X%#$  X2X#    (   X  ?( ` hp x X%#?X2XXX2    XB.` hp x %#XB(n  #XX2ConsensusBuilding(n݌  9 Ќ   $ X%#X%#$  X2X#    B+ ` hp x X%#B(   X  <( ` hp x X<X2XXX2    B.` hp x %#XB(  #XX2StrengtheningLocalHumanResources(݌   Ќ X  ! XX%#!  X2X#    (   X  <( ` hp x X<X2XXX2  B.` hp x %#XB(  #XX2SearchforSynergyEffects(݌ g   Ќ X  ! XX%#!  X2X#    (   X  <( ` hp x X<X2XXX2  B.` hp x %#XB(  #XX2PublicAwarenessRaising(݌ & v  Ќ X  ! XX%#!  X2X#  ?+ ` hp x X?(   X  <( ` hp x X<X2XXX2    XB.` hp x %#XB(5  #XX2Incorporationoflocalactionsinanationalframework(5I݌  5  Ќ   ! XX%#!  X2X#   h@ABCDEFGH(03z#XX2Wa#?+ ` hp x X?"@" P 9%` ` hp x X9  P  @k!23     jWX G1XWaX2X1XWX Gk@k!"݌̌  X` ` X   B.` hp x %#XB#XX2     X2X#  ]nTD@xx p @XE 54?  #XX2^p#  Toreachtheseobjectives,particularattentionshouldbegivento:     XB+ ` hp x X%#Ba)Rationaluseoflocalpotential(includingnaturalresources,accesstomarketsandother E  facilities). T  XB.` hp x %#XB XB+ ` hp x X%#Bb)Extensionoffinancialfacilities,promotingaccessformicroandsmallentrepreneursand  producers. A  XB.` hp x %#XB XB+ ` hp x X%#Bc)Improvementofthequalityofhumanresourcesinthearea(promotingandsupporting  entrepreneurship,matchingtheofferofvocationaltrainingwiththerequirementsofthelabor ~ market,offeringincentivestokeepandmaintainahighqualifiedpoolofmotivatedhuman = resources,etc.). L  XB.` hp x %#XB XB+ ` hp x X%#Bd)Developmentofinfrastructuresandservicestoimprovetheefficiencyoftheeconomicactivities z (roads,energy,stockingfacilities,technicalandmanagerialconsultingservices,diffusionof 9 relevantinformationforenterprises,etc.) H  XB.` hp x %#XBAllthisrequiresanorganizedandcoordinatedeffortthroughwhichknowledgeoflocalrealityand v! necessitieswillbetransformedinaneconomicvalue. 5"   XB+ ` hp x X%#BIII.  RELEVANCEOFLEDINCOUNTRIES INTRANSITION  r %   XB.` hp x %#XBMostofCentralandEastEuropeancountriesarecurrentlyundergoingatransitionfromacentralplanned !@' economytoamarketeconomy.Asaresultofthisprocessandoftenunderexternalpressure(b*^pA^p*bstructural "( adjustment)manycentralgovernmentsturntowardsdecentralizationasananswertotheneedtoreduce q#) theirsizeandscopeofactivities. 0$*   Thetransferofresponsibilitiestothelocallevelishoweverseldomaccompaniedbythenecessarytransfer % , ofresourcesandtechnicalcapacity,enablinganeffectivemanagementofthenewresponsibilities. m&!-  ,'|". #dejk# d edfU je kjlf k  Moreover,decentralizationseemstobethemagicword,whichwould"automatically"guaranteeahigher  degreeofrepresentation,participationandefficiency.Butifthesedecentralizationprocessesarenotwell o guided,theycouldhaveoppositeeffects.Socialandculturaldifferencesbetweengroupsandregionsmay .~ bereinforcedandmayresultinafragmentationofsociety.Inthelightoftheserisks,ahighlyparticipatory, = transparentandcomprehensiveapproachhastobepromoted. ^p        X#X X2X#XX&    B+ ` hp x X%#B   X  ?+ ` hp x X? #XX2^p#    R4  IV.  LEDANDRECONCILIATIONPROCESSESINWARAFFECTEDCOUNTRIESR4>5 &5Ԍ V  Ќ X   XX X#X^pX2X#XX      B.` hp x %#XBzXX2 z'V 3  e  ^p Thereconciliationprocessbetweendifferentgroupswhichwerefightingeachotherduringcivilwar,is  $  essentialtosustainablepeace.Thissupposesaprogressiveefforttorebuildthegenerallydamagedsocial    society.TheLEDԀapproachoffersanexcellentopportunitytogenerateanenablingandpositive R  environmentwherepeopledefinecommoninterestsandprioritiestoconfrontcommonproblems. a  Experiencehasshownthatinarelativelyshortperiod,peoplebecomeconvincedoftheadvantagesthe   jointmechanismsbringabouttopromoteeconomicdevelopment.       f^p  XB+ ` hp x X%#B ^pfV.  `"LEDA "`Ԁ ASANINSTRUMENTTOIMPLEMENTALOCALECONOMICDEVELOPMENT i POLICY.  (   XB.` hp x %#XB V.1.Mission  e  `LEDAs`Ԁ mainobjectivesare:    1)torespondtotheneedforlocalcapacitytodesignviable,entrepreneurialprojectsandservices a promotingenterprisesonthebasisofdemocraticallydecidedpriorities.   2)tocatalyzelocaleconomicinitiativesaccordingtothepotentialsandunfulfilledeconomicneedsofthe N area.  ]    `     h   V.2.Geographicalcoverage  J! Oneofthemostimportantdecisionsinthepromotionandsettingupprocessofthe `LEDA `Ԁisthe # determinationofaappropriategeographicalcoverage.Homogeneityinphysicalgeographicalterms,in  $ politicaladministrativeterms,ineconomicproductiveorinsocialculturaltermsshouldbetakeninto F!% accountandareessentialfor`LEDAs`Ԁsuccessfulfunctioningandsustainability. "U&  V.3Functions  #( Oncetheterritoryinwhichthe `LEDA `Ԁwilloperateisdefined,itspersonalwillhavetocarryoutadiagnosis %Q * ofthearea,todetermineitspotentialsinnaturalandhumanresources,aswellasitsunsatisfiedeconomic %!+ needs.Onthebasisofthisdiagnosis,the `LEDA `Ԁwillcarryoutsuchtasksas: &!,     XE.` hp x %#X%#Ei)orientationandstimulationoflocaleconomicinitiatives, 'M#.   ii)assistanceinthepreparationoffeasibilitystudiesfornewenterprises  iii)intermediationand/orprovisionofcredit o iv)trainingandtechnicalassistance .~ v)maintenanceofrelationswithnationalandinternationalinstitutionsfortechnicaland/orfinancial = support.    XE.` hp x %#X%#E    `     h `LEDAs`Ԁactivitieswillbeessentiallyorientedtowardstheidentificationandimplementationofprofitable, * z efficientandorganizedentrepreneurialactivitieswhichwillcontributetothelocalproductivedevelopment.  9 Itwillsupportthoseactivitiesorprojectswhichcorrespondbesttotheeconomicpotentialofthearea.   Theseprojectsshouldfulfilcriterialike:useofendogenousresources,promotionofmultipliereffects g   towardsthelocaleconomyandprovisionofgoodsorservicescontributingtothelocal productive & v  development.  5      Furthermore,gathering,processingandmakingavailableofinformationisanessentialfunctionofthe c  `LEDA`. "r      Insummary,the`ԀLEDA`Ԁwillactasafocalpoint(orliaisonunit)fortheeconomicdevelopmentofaspecific   territory.Inthiswaythe`LEDA`Ԁwillhelptocoordinatenationalandexternaltechnicalcooperationeffortsin _  thearea,accordingtotheproblemsandprioritiesidentifiedbytheorganizedpopulationitself.  n  V.4Structure [  The`LEDA`shouldbeunderstoodasanetworkingserviceinvolvingkeyactorsinthelocaleconomy ) comingfrompublicandprivate(profitandnonprofit)sector.Alightstructurefacilitatesitsconsensus  buildingcapacityandthecoordinationofactivities,includingtheprovisionofcomplementaryservices. W `LEDAs`Ԁstructureshouldthereforeconsistofanassembly,atechnicalteamandeventuallyofspecialized f units.  %  Itisessentialthatthe assembly reflectsabalancedrepresentationofthepublicandprivateactorsinthe S area.Thisdemocraticallyfunctioningbodywilldefinethestrategy,thepolicyandtheprioritiesofthe b  `LEDA `. !     The technicalteam isinchargeofthetechnicalassistanceandservicesprovidedbythe `LEDA `Ԁaccording O! toitsfunctionsasdescribedabove.Thetechnicalteamshouldalsocontributetotheimprovementof ^" entrepreneurialprojectsalreadyinthestageofexecution. #     Forspecificfunctionssuchasthecreationandmaintenanceofadatabase,administrationissues,fund K % raisingandpublicrelations, specializedunits maybesetupwhenthe `LEDA `Ԁdevelopsitself.  !Z&   XB+ ` hp x X%#BVI.  LEGALSTATUSANDSUSTAINABILITY G#)   XB.` hp x %#XB TheAgencieshavetobeconsideredasindependentbodies,havingalegalstatus.Itscontinuitydepends % , onthecommitmentofthedifferentlocalactorsinvolved.Inordertopromoteitssustainablitly,itis C&!- importantthatthelocalactorsassumeresponsibilitiesrightfromthestart. 'R".     '#/   Thepromotionandsettingupphaseofthe`LEDA`Ԁisanintensiveandhighlyparticipatoryprocess   involvinganadhocforumofrepresentativesofpublicinstitutions,NGOs,localauthorities,smallproducers o organizationsandcommunityorganizations.  .~  Inthisway,thelocalrepresentativeswillnotperceivethe`LEDA`Ԁassomethingimposedonthemfromthe  outside,butwilllookatitastheirAgency.TheywilldefendtheAgencyandstriveforitscontinuityover k time,givingitsocialsustainability. * z     Furthermore,the`LEDA`Ԁhastofitintheexistinglegalframeworkinthecountry,andbeacceptedby g   nationalauthoritiesasacomplementarymechanismtotheinstrumentswhichtraditionallyavailableto & v  government.Inotherwords,the`LEDA`,beinganewfigureinthenationalcontext,shouldgainitsplace  5  andlegitimacyintheeyesofgovernment.Thisshouldbeunderstoodaspoliticalandadministrative    sustainability.  c   Talkingaboutsustainability,thefirstthingthatusuallycomestomindisthefinancial/economic 1  sustainability,meaningthatthe`LEDA`Ԁcannotexpecttobefinancedcontinuouslyfromexternalsources.   Moreover,stressingtheneedforfinancial/economicsustainabilityalsomeansstressingtheneedfor _  efficientfunctioningandadoptionofaninternalbusinessculture.  n       XB+ ` hp x X%#BVII.  POTENTIALIMPACT [   XB.` hp x %#XB Ashasbeensaidearlier,thesettingupprocessofthe`LEDA`Ԁisajointeffortinvolvingrepresentativesof ) publicandprivateinstitutionsandorganizations.Especiallyincountriesaffectedbywar,countriesin  transitionorsufferingofsocialconflict,theactionofbringingthesepeopletogethertodiscussthe`LEDA` W proposalcanbeconsideredasanachievementinitself. f     Furthermore,theperspectiveofcreatingamechanismforcooperationandcoordinationofproductive  effortsatthelocallevelisfeltasanopportunitybytheorganizedbeneficiaries.Inmanycases,theywill S gainaccesstoservicesforproductiveactivities,whichwerepreviouslydeniedtothem.Atthesametime, b thesocialactorswithinthe`LEDA`Ԁcanexpecttobenefitfrom% o %o`thesecoordinationefforts,throughsynergetic ! effectsoftheircooperation.     Moreover,the`LEDA`shouldstartitsfunctioningwithhighlyvisibleprojects,whichhavedirectimpacton O! thequalityoflifeofthelocalpopulation.Resultingdemonstrativeeffectswillprovethatthecollaboration ^" betweenthecitizens,communityorganizations,businesscommunitiesandtheStatewillcontributetothe # developmentofthearea.Itwillprovethat"localenergies"work. $   X#X^pX2X#XX