Advanced EC seminar on decentralisation and local governance European Commission EuropeAid 2-5 July 2012, Brussels The seminar reviewed the country context and the evolving international development framework and considered how to manage the political dimensions of decentralisation. It also looked at using decentralisation as a trigger to foster better development outcomes and governance and what all this means for future EU engagement in decentralisation and local governance. Jean Bossuyt, ECDPM, was the lead facilitator of this meeting. Alisa Herrero, ECDPM, was also one of the experts facilitating this seminar.

1. Session 3.3. Decentralisation and
inclusive/growth local economic
development
Jean-Pierre Elong Mbassi

2. Why local economic development
matters?
• National economy is the result of hundreds and hundreds
of local economic decisions by local entrepreneurs - “All
business is local”
• Arab Spring – where did it start?
• Link with sustainable development
• One of the ways to reconcile decentralisation and
inclusive growth (Agenda for Change)

3. What is local economic
development?
• Local economic development strives to unleash
the economic potential of a given territory
therefore:
• It focuses on a specific geographical area
• It promotes economic activities that aim at developing
the value chain of existing endowment of the territory
resulting in job and wealth creation
• Help define comprehensive investments which tackle
obstacles facing priority productive sectors and/or value
chain

4. So what can be done to support it?
• Four main actions are usually identified:
1. Build infrastructure to support economic activities
locally (roads, water, power)
2. Support local businesses: ease market failures,
facilitate access to credit, promote capital investment,
provide information on markets, develop network of
businesses to create synergies
3. Scale the workforce through vocational training,
openness to new products and technologies and
support services to businesses
4. Attract investment in the locality through territorial
marketing
 Local public investment is an asset to private
sector development

5. Warning!
 Local public investment is an asset to private
sector development
 Local economic development is sustained by
local demand and development of local, national
and regional markets which have growth
prospects at least 10x higher than the
international market
 Intervening in support to local economic
development requires to shift the focus towards
promoting the partnership approach to
development (including all stakeholders public
and private)

6. Warning!
 Local public investment is an asset to private
sector development
 Local economic development is sustained by local
demand and development of local, national and
regional markets which have growth prospects at
least 10x higher than the international market
 Intervening in support to local economic
development requires to shift the focus towards
promoting the partnership approach to
development (including all stakeholders public
and private)
 To know more: www.ledna.org and
www.ledknowledge.org