Transcript Local Economic Development (LED)

Local Economic Development
(LED)
Assessment of the Jomoro
District of the Western Region
Oil Watch Ghana (OWG)
(Social Support Foundation)
January 2011
Presentation Outline
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What is Local Economic Development (LED)?
Why LED?
Host & Targets for LED
Benefits of LED Interventions to the Local Economy
Rationale for LED Assessment
Objectives of the Jomoro LED Exercise
Methodology for the LED exercise
Findings from the Exercise
Action points/ Proposals
Policy and Gender Advocacy Issues to Promote Local Economic
Development
What is Local Economic Development (LED)?
A working definition;
LED: the process by which Community Groups,
Local Economic Actors, Local Government
Authorities, Private Sector and Civil Society
come together in an effort to create sustainable
growth in a locality by continually improving the
investment and business climate to enhance
their competitiveness, create and retain jobs
and improve incomes
Why LED?
Local communities undertake LED assessments for a
number of reasons including:
• To understand the nature and structure of the
local economy
• Identify the strengths, weaknesses, opportunities
and threats of the local economy and its actors
• To attract businesses and capital that are
constantly moving between locations for
competitive advantage
• To highlight the key issues and opportunities
facing the local economy for redress
Why LED Cont.
• To guide the formulation and implementation
of economic development strategies to create
sustainable growth and development a locality
• To use LED as an economic inclusion strategy
to enhance the participation of women, youth
and the disadvantaged in economic and social
issues
Host & Targets for LED
LED is strategically planned and implemented by
local government authorities (eg. MMDA, RCC,
MDA) in conjunction with public and private
sector partners including;
• Non-governmental sector
• Private Sector (businessmen and women/
Organization)
• Local Chambers of commerce or Association
of small businesses
• Other Public support institutions (eg. Utilities)
Benefits of LED Interventions to the Local
Economy
If pursued overtime, LED interventions could
generate the following outcomes and benefits
• Increased jobs and income for all in the local
economy
• Attract and retain within the Local economy,
the usually mobile factors of production that
moves among areas of competitive advantage
• Increased revenue to the local authority for
infrastructure development
Benefits for LED cont.
• Help in diversifying the local economy through
the identification and exploitation of existing
and entirely new business opportunities
• Encourage participatory approaches to
planning by directly involving a cross section
of the population in decision making
• Mobilize support of local institutions and
associations around a shared vision of local
economic development
Rationale for LED Assessment
LED assessments and respective interventions are vital for
the front line oil find Districts in Ghana due to;
• The tendency for local economic actors to abandon their
current jobs for none existing oil jobs leading to increase
in unemployment and poverty among the people
• Possible neglect of other viable business sectors /
opportunities by both local and central government in
favour of the oil and gas sector
• Possible pressure on land and natural resources leading
to degradation, pollution and loss of livelihoods
• Potential opportunities arising from the oil operations
will require careful preparation to exploit
Objectives of the Jomoro LED Exercise
One District (Jomoro) was selected due to limited funds
• To identify viable economic sectors and local
economic development actors operating within these
sectors
• Determine the strengths, weaknesses and identify
untapped potentials of the local economy and
economic actors.
• Identify and recommend options of practical
activities to strengthen the competitiveness of the
local economy and its actors for wealth and job
creation.
Methodology for the LED exercise
• The build up stage of the LED Assessment included a contractual
agreement with the Jomoro District Assembly for their full
participation, commitment to process, contribution of resources
and use of outcome
• Selection and appointment of LED Host and Local Economic Experts
to form the Local Team was done by the Assembly
• Mutual agreement on dates and period for the LED Assessment
• Over 90% funds from SSF OWG G-RAP SPF 3
• The LED assessment was undertaken by a joint team from SSF /
OWG and a five (5) member team – Economic Actors from the
locality
• The (5) member local team was drawn from the District Assembly,
the private sector, Civil Society and other public departments with
the Business Advisory Centre (BAC) as the host for the LED exercise
Methodology:
Field Work - Data Collection
Both secondary and primary data was used in the LED exercise with
high level qualitative analysis using a variety of tried and tested Local
Economic assessment tools including PACA- mesopartners, Germany
• Secondary data about economic actors and their location was
collected from the Business Advisory Centre (BAC) and
Cooperation for the Development of Emerging Economies (Cospé)
• Primary data for the assessment was collected by three working
teams through days of fieldwork
• In addition to personal observations and informal interactions with
economic actors, Semi-structured questionnaire was used for
primarily data collection guided the economic principles from the
Michael Porter’s Five Forces and Diamond Models and the
Interaction Matrix
• Individual interviews and mini-workshops were held with relevant
actors in the district for purposes of collecting data
Methodology:
Results Workshop & Presentation Event
• One and a half day Results workshop was conducted
for the thorough analysis of data collected using
among others the scoping and the LED Gap Analysis
tools
• Findings and Results from the assessment were put
into Action points and implementable proposals
• A Presentation event was held with all key economic
stakeholders in the District to validate findings, buyin proposed actions and plan way-forward with
possible small groups and committees to ensure LED
Action Implementation
Findings from the Exercise
The study identified the under listed sectors as the major
components of the local economy with the
• Fishing
• Agro-production,
• Tourism / culture / hospitality, and
• Agro-processing
sectors emerging as the most viable in the economy; in addition
to
• Industrial site – Garages
• Food Processing
• Services
• Manufacturing – Free Zone Factory
Findings Cont.
The following also emerged as some of the strengths and weaknesses
of the local economy:
• Strengths
• Availability of water for aquaculture
• Availability of agro-raw materials for enhanced agro-processing for
export and the promotion of local staples at national level
• Upcoming association in some sectors of the local economy
• Opportunity to promote numerous untapped tourism potentials of
the area.
• Proximity of the economy to Ivory Coast and major water an land
based transportation infrastructure can enhance export trade
Findings Cont.
Weaknesses
• Low commitment of local authorities in finding interventions for
local economic actors
• Weak or non existing associations in some sectors and at individual
community level
• Inadequately resourced Business Advisory Centre to vigorously
support economic actors to pursue rapid growth
• Lack of capacity /political will to exploit the full potential of the
local economy
Action points
PROPOSALS
For Implementation by the
District Assembly
and other Economic Actors
Action points / proposals
• Formation & revitalising associations in the key economic areas BAC and the respective sector actors
o Association of Fishermen
o Fish Farmers Association
o Association of Traditional Caterers
o Association of Coconut oil Producers
o Association of Fish Mongers
o Association of Bakers
• Mobilization and strengthening of Jomoro Association of Garages
and creation of an industrial site to enhanced their artisanal
businesses (JAG) - BAC, JAG.
• Complete Rural Technology Facility - REP/BAC/TDA/JAG
• Establishment of Bulk Fish Storage facility – JDA, Fisherfolk.
• Provision of improved fish smoking facility – REP, BAC, JDA.
Action points / proposals Cont.
• Subcontract collection of coconut husk to Free Zones Board
Company in the District Assembly – Private Investor.
• Expansion of copra and coconut oil production for the local and
West African market – NYEP, Youth Group.
• Enhance / improve quality of pork production to meet national and
international standards and market- FDB.
• Promotion of PPP – All Economic Actors.
• Increase access to credit for business operations (SMEs) – Financial
Institutions
• Increase mobilization of MSMEs to widen portfolio – Financial
Institutions.
• Financial Institutions to support the capacity building, sensitization
and public education & training in financial management for SMEs
to make them credible for loan facilities – BAC, Business
Associations, Credit Unions.
Action points / proposals Cont.
• PPP to establish FDB testing at the local community and district
level – FDB, Private Investors.
• Public education and sensitization of SMEs production quality
standards to meet international markets – GSB, Business
Associations, BAC, FDB.
• Commercialize transit Lorry Park at Elubo - PPP, JDA, Transport
Unions, Private Investors.
• Encourage Image enhancement of the GSB, FDB, & other statutory
GRA for economic improvement – Business Support Institutions.
• Expand government subsidy on outboard motors for Canoe and
Boat Operators Association – JDA, Association, Ministry of
Transport.
• Encourage the production of exotic vegetables for the emerging
market – MOFA, Farmers Association.
Action points / proposals Cont.
• Entrepreneurs to take advantage to provide fishing gear and
inputs as demanded by fisher folk.
• Documentation and planning of economic and cultural
viability of the monuments & natural resources towards
tourism development- Center for National Culture.
• Promote PPP for the development of the salt industry in the
district – JDA, Private Investors.
• Increase public education and awareness creation on
potential benefits and costs of the oil production to the local
economy / community – NCCE, NFED, CSOs.
• Designing, Production and Dissemination of Primers for Public
Education with focus on Oil & Gas production at district level
– NCCE, NFED, CSOs
Policy and Gender Advocacy Issues to Promote
Local Economic Development
Policy Advocacy Issues
To accelerate economic development and enhance the ability of Local
economic actors to take advantage of the local content policy of the oil
and gas sector, the following advocacy issues must be pursued by the
Jomoro District:
• Institutional purchase of local produce.
o Changes in local institution’s purchasing guidelines can facilitate
this.
• Coalition building among community economic actors and
advocacy organizations
o Local Authorities facilitating collaboration and co-orporation
among economic stakeholders to further their cause and deliver
mutual economic benefits.
Policy Advocacy Issues Cont.
• Investment in soft infrastructure to improve the commercial
environment for businesses
o Intense central and local government and Private sector
investments and support in the following areas;
 Providing skills training for Youth, Women & Local
Economic Actors – Downstream business opportunities
 Providing business development & advisory services
 Supporting research and development
 Facilitating MSME access to capital and finance
 Supporting the development of business and trade
associations
 Improving delivery of local government services to
businesses.
Gender Issues in Local Economic Development
A number of barriers preventing women and the disadvantaged
from participating fully in local economic development
strategies were identified, including:
• Lack of representation in decision-making structures
• Limited opportunities for education resulting in, among
others, limited access to information
• Multi-tasking non-paying jobs for women reduces time and
energy for participation in public & economic affairs
• Restrictions on access to finance due to lack of collateral and
record of previous business success, or high interest rates
• Inadequate gender-focused business development services
• Cultural constraints on mobility of women
Gender Advocacy for Enhanced LED
The Jomoro District can bring the experience, knowledge, and
interests of women, the youth and the disadvantaged to bear on
the developmental agenda of the local economy by pursuing the
following:
1. Increase their voice and capacity to advocate for their
interests
o Organization of common interest groups
2. Build their capacity to increase their participation in local
governance and ability to negotiate conflicting interests
o Selection and training of women candidates
o Reservation of elective or nominated positions for
women, and the disadvantaged
o Gender awareness for local government representatives
Gender Advocacy for Enhanced LED cont.
3. Increase access to and Control over resources (especially
finance and business development opportunities)
o Encourage membership of business associations
o Gender awareness and sensitisation for stakeholders
o Support programmes for Women, PWD and Youth
entrepreneurs
4. Increase employment and employability of women, the
youth and the PWD in all sectors of the local economy
o Develop marketable skills for women, youth and
vulnerable groups
o Positive discrimination for qualified women, youth and
vulnerable groups in areas they are under-represented
o Providing care facilities, flexible working hours for both
men and women with special needs
Thank You!!