Secretary General of the Association of Local Government Authorities of Kenya
"In our cities we find both poverty and wealth in very close proximity. Local economic development process seems to be one of those strategies to address the challenges and hence my interest on this network."
Dr. I.H. Kawa
Traditional Irrigation and Environmental Development Organisation (TIP)
Tanzania
"It is great to have LEDNA, which serves as a perfect forum for linking and learning among LED academics and practitioners."
Dr. I.H. Kawa
Traditional Irrigation and Environmental Development Organisation (TIP)
Tanzania
"It is great to have LEDNA, which serves as a perfect forum for linking and learning among LED academics and practitioners."
Dr. Sidima Kabanyane
Municipal Manager
South Africa
"We are investing strongly in the Economic Infrastructurei in Drakenstein Municipality to promote economic development, we want to share with and learn from others in Africa. LEDNA looks a great opportunity for us all."
Gulelat Kebede
Traditional Irrigation and Environmental Development Organisation (TIP)
Kenya
"LEDNA is an excellent resource and a promising knowledge network to advance the LED agenda in Sub Sahara Africa. We should nurture and use it to catalyze partnerships that respond to the real needs of local authorities."
Dr. Sidima Kabanyane
Municipal Manager
South Africa
"We are investing strongly in the Economic Infrastructurei in Drakenstein Municipality to promote economic development, we want to share with and learn from others in Africa. LEDNA looks a great opportunity for us all."
Gulelat Kebede
Traditional Irrigation and Environmental Development Organisation (TIP)
Kenya
"LEDNA is an excellent resource and a promising knowledge network to advance the LED agenda in Sub Sahara Africa. We should nurture and use it to catalyze partnerships that respond to the real needs of local authorities."
I enjoyed reading of Nairobi's extremes as representing the poles of the formal - informal spectrum. Indeed this extremism is a fascinating component of Nairobi's personality, split thought it may be. Whilst certain elements of the informal sector do need nurturing, they also add a lot of color, life and interest. Policies geared simply at formalising these elements might in fact reduce the potential of the city, not to mention doing some major damage to the party scene.
As you say, the time is ripe for policies that accept this multiplicity and work to enhance the less savoury elements, rather than banish them. Policymakers need to be as creative as the city they live in. And if Nairobians do manage to somehow better mesh those less formal components into the fabric of their city, everyone stands to benefit. A more livable city does not have to be a boring one and a split personality is preferable to no personality.
The stage of growth from being a child, teenage, youth and udult has its own recognition. If a person jumb one of the stages as alluded will encounter a problem of behaving very well e.g by jumbing a youth stage to udult stage is a problem. Young people of today likes to compete with udult people not knowing the stages that they went through before they achieve what they accumulated. Education these nowadays has been compromised and our young generation are unable to match with their life standards. Financial institution are no longer targeting young people if they want to offer loans, i.e. car or home finances because majority of young people encounterd more debts or unable to repay. Managing finances is a crisis and it must be taught on early stages at school to prepare the smooth growth on the stages.
It is indeed high time to reflect seriously on the role of local governments in Africa’s renaissance. Decentralisationi is considered an important strategy in most African countries today, but ensuring that populations are truly empowered to fully participate in planning, implementing and managing their own development processes is not so easy. Each country, and locality, must look to their own specific situation and strengths to help them get there.
Rwanda adopted their Decentralisation Policy in 2000, and it is now in its 3rd phase of implementation. In 13 years, Rwanda has come a long way and their decentralisation implementation plan is considered one of the most successful in Africa. Interestingly, many of the most fruitful initiatives adopted along the way are based upon pre-colonial cultural practices.
One of the most successful of these strategies is Imihigo, or performance-based contracts. Imihigo is a centuries old cultural practice, which involves an individual or group setting targets to be achieved within a definite timeframe. Today, Imihigo is still very much based on results and involves local Mayors signing contracts - previously agreed with local constituents - with the Central Government. Districts are ranked annually in terms of meeting their own priorities, which sets up healthy competition between districts. It has been known for those mayors whose constituencies are falling short of their targets to step down.
Recently, President Paul Kagame, was asked to speak at the 7th Commonwealth local Government Conference held in Kampala. He was careful to note that local democracy practices are, by nature, local and context-specific and are not necessarily transferrable. He went on, however, to outline some of the successful home-grown initiatives employed in Rwanda. These included Imihigo, but also Girinka (giving a cow to the next needy person), use of the Abunzi, (volunteer mediators who help arbitrate local disputes) and Umuganda (mandatory community service one Saturday morning per month).
Implementing strategies with historic and cultural relevance in the country, or locality, makes implementation that much easier. People already understand, for example, that the goal of Imihigo, is to achieve set targets within a given timeframe. And will better acknowledge the repercussions of not meeting them. Each country and/or locality can look to its own cultural practices to find potential foundations for new local initiatives geared towards improving the lives of its citizens.
As Kagame summarised "our citizens aspire to better lives and are prepared to work hard to achieve that. It is the duty of local government authorities to harness their aspirations, energy and resolve so as to create the right conditions for the realisation of their collective ambitions."
From experience most interventions that donot succeed lack local content i.e. have top to bottom approach. Successful interventions must be participatory, developed by the local people or beneficiaries, implemented and monitored by them, all these will lead to their owning the project and processes leading to the project actualisation.
From experience most interventions that donot succeed lack local content i.e. have top to bottom approach. Successful interventions must be participatory, developed by the local people or beneficiaries, implemented and monitored by them, all these will lead to their owning the project and processes leading to the project actualisation.
From experience most interventions that donot succeed lack local content i.e. have top to bottom approach. Successful interventions must be participatory, developed by the local people or beneficiaries, implemented and monitored by them, all these will lead to their owning the project and processes leading to the project actualisation.
It all comes down to whether the local authorities have value to add - in reality and not only in their own minds.
Recent research we executed showed that a very large municipality in South Africa had contracted enormous amoounts of research over the years. owever, they had contracted the wrong people, albeith no one in particular. Our research did a desktop review of all existing research. The fact is that none of the research had been done on a proper research basis. Most of the "numbers" generated were pure guesswork. In some cases they were estimating numbers at 300% of what we actually counted on our largest count (we did more than one).
Municipalities need to have accurate information they will share. It is pointless having bad information. It is pointless paying"consultants" who are clueless, unprofessional and unqualified. It is important that data is correct and accurate, because it is useless if it is not.
If municipalities are seen to be a source of useful and accurate information, all these external parties wil migrate towards the source - you!
Finally, officials must be friendly, helpful, willing to share and prepared to receive positive and constructive criticism at times. None of us are perfect, and if listening and changing will make a positive difference, should we not be embracing it?
It all comes down to whether the local authorities have value to add - in reality and not only in their own minds.
Recent research we executed showed that a very large municipality in South Africa had contracted enormous amoounts of research over the years. owever, they had contracted the wrong people, albeith no one in particular. Our research did a desktop review of all existing research. The fact is that none of the research had been done on a proper research basis. Most of the "numbers" generated were pure guesswork. In some cases they were estimating numbers at 300% of what we actually counted on our largest count (we did more than one).
Municipalities need to have accurate information they will share. It is pointless having bad information. It is pointless paying"consultants" who are clueless, unprofessional and unqualified. It is important that data is correct and accurate, because it is useless if it is not.
If municipalities are seen to be a source of useful and accurate information, all these external parties wil migrate towards the source - you!
Finally, officials must be friendly, helpful, willing to share and prepared to receive positive and constructive criticism at times. None of us are perfect, and if listening and changing will make a positive difference, should we not be embracing it?
It all comes down to whether the local authorities have value to add - in reality and not only in their own minds.
Recent research we executed showed that a very large municipality in South Africa had contracted enormous amoounts of research over the years. owever, they had contracted the wrong people, albeith no one in particular. Our research did a desktop review of all existing research. The fact is that none of the research had been done on a proper research basis. Most of the "numbers" generated were pure guesswork. In some cases they were estimating numbers at 300% of what we actually counted on our largest count (we did more than one).
Municipalities need to have accurate information they will share. It is pointless having bad information. It is pointless paying"consultants" who are clueless, unprofessional and unqualified. It is important that data is correct and accurate, because it is useless if it is not.
If municipalities are seen to be a source of useful and accurate information, all these external parties wil migrate towards the source - you!
Finally, officials must be friendly, helpful, willing to share and prepared to receive positive and constructive criticism at times. None of us are perfect, and if listening and changing will make a positive difference, should we not be embracing it?
Thanks very much Adrienne for engaging my blog. You are raising very valid points and I think that the phrase "LED and non-LED approaches to local economic development" captures very well the main idea being discussed here.
I wish to add two points to this discussion that points to the imperative of being serious about capturing non-LED approaches to local economic development. The first point is that, paradoxically, there seem to exist in Africa as well as globally very little success stories of LED approaches to local economic development. There was a time when I resolved to identify such cases and share on LEDNA. The yield was very thin!
When one reads articles from the developed world as well as hear the pronouncements of some LED experts on the question, it appears that this dearth of success stories is a global phenomenon. Could it be that the nicely crafted theories are not relevant enough once in the field? Or how should we understand this lack of success stories, if at all it is real?
Secondly, one knows almost instinctively that there are cases of cities, regions or villages where tremendous progress and success have been achieved over the years. Indeed the very existence of economically prosperous cities, some of which have emerged only recently, is testimony that some local economic development took place or is taking place. In the case of Africa identifying these “naturally occurring” economic development cases could, as you said, help us a lot in learning about what actually works. Anyone with a case in point?
Thanks very much Adrienne for engaging my blog. You are raising very valid points and I think that the phrase "LED and non-LED approaches to local economic development" captures very well the main idea being discussed here.
I wish to add two points to this discussion that points to the imperative of being serious about capturing non-LED approaches to local economic development. The first point is that, paradoxically, there seem to exist in Africa as well as globally very little success stories of LED approaches to local economic development. There was a time when I resolved to identify such cases and share on LEDNA. The yield was very thin!
When one reads articles from the developed world as well as hear the pronouncements of some LED experts on the question, it appears that this dearth of success stories is a global phenomenon. Could it be that the nicely crafted theories are not relevant enough once in the field? Or how should we understand this lack of success stories, if at all it is real?
Secondly, one knows almost instinctively that there are cases of cities, regions or villages where tremendous progress and success have been achieved over the years. Indeed the very existence of economically prosperous cities, some of which have emerged only recently, is testimony that some local economic development took place or is taking place. In the case of Africa identifying these “naturally occurring” economic development cases could, as you said, help us a lot in learning about what actually works. Anyone with a case in point?
Local Economic Developmenti (LED) is obviously related to, but not synonymous with local economic development per se. This concept can be rather confusing.
Two useful distinctions are made in this blog, which I believe help clarify the apparent conundrum. The first distinguishes LED policy enactment from local economic development progress on the ground. The second distinguishes local economic development practice that is related to LED policies and that which is not.
I find the second distinction particularly intriguing. Presumably, there are scores of local economic development projects underway all over Africa, completely independent of ‘LED’ as we know it. These projects are possibly/probably run by people totally unfamiliar with LED (and this website!). Learning how closely such projects – theoretically not related to LED – actually align with LED principles in practice could be enlightening and beneficial to both camps.
Comparing LED and non-LED approaches to local economic development within individual countries and Africa-wide, would surely make for an interesting component of any study focussed on LED advancement in Africa.
Local Economic Developmenti (LED) is obviously related to, but not synonymous with local economic development per se. This concept can be rather confusing.
Two useful distinctions are made in this blog, which I believe help clarify the apparent conundrum. The first distinguishes LED policy enactment from local economic development progress on the ground. The second distinguishes local economic development practice that is related to LED policies and that which is not.
I find the second distinction particularly intriguing. Presumably, there are scores of local economic development projects underway all over Africa, completely independent of ‘LED’ as we know it. These projects are possibly/probably run by people totally unfamiliar with LED (and this website!). Learning how closely such projects – theoretically not related to LED – actually align with LED principles in practice could be enlightening and beneficial to both camps.
Comparing LED and non-LED approaches to local economic development within individual countries and Africa-wide, would surely make for an interesting component of any study focussed on LED advancement in Africa.
With that much being said about street traders and certain policies that were passed that included them... I have been conducting some interviews for a project and I must say that the "street traders" need to be acknowledged by the government in order for the different unions to be formed. By doing this the country will surely be including them in most decisions made and the by-laws that indicate where each person os allowed to sell in would be something everyone is aware of. "Street traders" don't do this because they want but because they see the need to do so. If the government is able to build people houses why not include the street traders in voicing their opinions? Removing these people means increasing the poverty and unempolymment ration. Everyone whether the JMPD or Metro Police and government should have known by now that the everyone has a target market that they know off and situating themselves where they were means that they will have enough customers.
I find Professor Ncube’s opening statement that ‘the informal economy is often associated with increasing poverty and weak employment conditions’ most interesting. I would differ only on one point, that in fact, the informal economy is always associated with poverty and failure of the formal economy to provide adequate employment. In my view then, the informal economy plays an important role in helping governments of poor nations (which paradoxically are often rich in resources); solve half of the problem – by providing employment and the means of income to many. The other half is of course its informality, non-payment of taxes etc. Most, if not all governments (and the scholars who advise them) tend to focus effort on the wrong half of the problem – the informality - without addressing in earnest, the crucial half of poverty and unemployment which is tantamount to killing the goose that lays the golden half of the egg. The informal sector exists largely because its operators find it uneconomic to comply with formal standards of operation. Recognition of the informal sector alone will not solve the problem, so long as it is associated with formalization. Governments should rather let the informal sector be, by exercising the leas control possible and work instead, to reduce poverty and create employment. Most governments in Africa can do this, if they stopped wasting resources of their countries through corruption and other forms of abuse.
I find Professor Ncube’s opening statement that ‘the informal economy is often associated with increasing poverty and weak employment conditions’ most interesting. I would differ only on one point, that in fact, the informal economy is always associated with poverty and failure of the formal economy to provide adequate employment. In my view then, the informal economy plays an important role in helping governments of poor nations (which paradoxically are often rich in resources); solve half of the problem – by providing employment and the means of income to many. The other half is of course its informality, non-payment of taxes etc. Most, if not all governments (and the scholars who advise them) tend to focus effort on the wrong half of the problem – the informality - without addressing in earnest, the crucial half of poverty and unemployment which is tantamount to killing the goose that lays the golden half of the egg. The informal sector exists largely because its operators find it uneconomic to comply with formal standards of operation. Recognition of the informal sector alone will not solve the problem, so long as it is associated with formalization. Governments should rather let the informal sector be, by exercising the leas control possible and work instead, to reduce poverty and create employment. Most governments in Africa can do this, if they stopped wasting resources of their countries through corruption and other forms of abuse.
Thanks for the post ledna team! Great to hear the opinion of the Vice President of the African Development Bank and his attitude towards the informal sector in Africa.
There is no doubt that here in Rwanda, the informal sector is associated with "criminal endeavours and tax evasion". The few street hawkers brave enough to walk the downtown streets in Kigali are on constant alert; ready to run from pursuing police as necessary.
If the Rwandan Government truly wants to achieve their goal of reducing poverty from 45% to 20% and to create at least 1.8 million new off-farm jobs by 2020, they would do well to heed Professor Ncube's advice and develop a new approach to tackle their vast informal sector.
As suggested, recognising the heterogenity of this sector and distinguishing between large, small and micro informal enterprises would be a very good place to start. Whilst many of the larger enterprises could well be herded into the 'formal' sector with better access to financing, some of the micro enterprises are just not ready to be formalised. Encouraging some of these (usually household) enterprises could lead to their expansion and possibly formalisation, later down the track.
To relevant policy makers in Rwanda - please heed Professor Ncube's advice!
Thanks for the post ledna team! Great to hear the opinion of the Vice President of the African Development Bank and his attitude towards the informal sector in Africa.
There is no doubt that here in Rwanda, the informal sector is associated with "criminal endeavours and tax evasion". The few street hawkers brave enough to walk the downtown streets in Kigali are on constant alert; ready to run from pursuing police as necessary.
If the Rwandan Government truly wants to achieve their goal of reducing poverty from 45% to 20% and to create at least 1.8 million new off-farm jobs by 2020, they would do well to heed Professor Ncube's advice and develop a new approach to tackle their vast informal sector.
As suggested, recognising the heterogenity of this sector and distinguishing between large, small and micro informal enterprises would be a very good place to start. Whilst many of the larger enterprises could well be herded into the 'formal' sector with better access to financing, some of the micro enterprises are just not ready to be formalised. Encouraging some of these (usually household) enterprises could lead to their expansion and possibly formalisation, later down the track.
To relevant policy makers in Rwanda - please heed Professor Ncube's advice!
Thanks for the good overview. Just to complement this, I actually did an assessment of indicator use in LED design and measurement. It is available at https://www.dropbox.com/s/yg54k40j1ggie0r/Research%20on%20LED%20indicators%20for%20local%20governments.docx
Thanks for the good overview. Just to complement this, I actually did an assessment of indicator use in LED design and measurement. It is available at https://www.dropbox.com/s/yg54k40j1ggie0r/Research%20on%20LED%20indicators%20for%20local%20governments.docx
A quick word from Kenya. We can only hope that the devolved governments (becoming more akin to Rwanda’s decentralized governance) in our new dispensation will pay more cognizance to LED too.
A quick word from Kenya. We can only hope that the devolved governments (becoming more akin to Rwanda’s decentralized governance) in our new dispensation will pay more cognizance to LED too.
I enjoyed reading of Nairobi's extremes as representing the poles of the formal - informal spectrum. Indeed this extremism is a fascinating component of Nairobi's personality, split thought it may be. Whilst certain elements of the informal sector do need nurturing, they also add a lot of color, life and interest. Policies geared simply at formalising these elements might in fact reduce the potential of the city, not to mention doing some major damage to the party scene.
As you say, the time is ripe for policies that accept this multiplicity and work to enhance the less savoury elements, rather than banish them. Policymakers need to be as creative as the city they live in. And if Nairobians do manage to somehow better mesh those less formal components into the fabric of their city, everyone stands to benefit. A more livable city does not have to be a boring one and a split personality is preferable to no personality.
The stage of growth from being a child, teenage, youth and udult has its own recognition. If a person jumb one of the stages as alluded will encounter a problem of behaving very well e.g by jumbing a youth stage to udult stage is a problem. Young people of today likes to compete with udult people not knowing the stages that they went through before they achieve what they accumulated. Education these nowadays has been compromised and our young generation are unable to match with their life standards. Financial institution are no longer targeting young people if they want to offer loans, i.e. car or home finances because majority of young people encounterd more debts or unable to repay. Managing finances is a crisis and it must be taught on early stages at school to prepare the smooth growth on the stages.
It is indeed high time to reflect seriously on the role of local governments in Africa’s renaissance. Decentralisationi is considered an important strategy in most African countries today, but ensuring that populations are truly empowered to fully participate in planning, implementing and managing their own development processes is not so easy. Each country, and locality, must look to their own specific situation and strengths to help them get there.
Rwanda adopted their Decentralisation Policy in 2000, and it is now in its 3rd phase of implementation. In 13 years, Rwanda has come a long way and their decentralisation implementation plan is considered one of the most successful in Africa. Interestingly, many of the most fruitful initiatives adopted along the way are based upon pre-colonial cultural practices.
One of the most successful of these strategies is Imihigo, or performance-based contracts. Imihigo is a centuries old cultural practice, which involves an individual or group setting targets to be achieved within a definite timeframe. Today, Imihigo is still very much based on results and involves local Mayors signing contracts - previously agreed with local constituents - with the Central Government. Districts are ranked annually in terms of meeting their own priorities, which sets up healthy competition between districts. It has been known for those mayors whose constituencies are falling short of their targets to step down.
Recently, President Paul Kagame, was asked to speak at the 7th Commonwealth local Government Conference held in Kampala. He was careful to note that local democracy practices are, by nature, local and context-specific and are not necessarily transferrable. He went on, however, to outline some of the successful home-grown initiatives employed in Rwanda. These included Imihigo, but also Girinka (giving a cow to the next needy person), use of the Abunzi, (volunteer mediators who help arbitrate local disputes) and Umuganda (mandatory community service one Saturday morning per month).
Implementing strategies with historic and cultural relevance in the country, or locality, makes implementation that much easier. People already understand, for example, that the goal of Imihigo, is to achieve set targets within a given timeframe. And will better acknowledge the repercussions of not meeting them. Each country and/or locality can look to its own cultural practices to find potential foundations for new local initiatives geared towards improving the lives of its citizens.
As Kagame summarised "our citizens aspire to better lives and are prepared to work hard to achieve that. It is the duty of local government authorities to harness their aspirations, energy and resolve so as to create the right conditions for the realisation of their collective ambitions."
From experience most interventions that donot succeed lack local content i.e. have top to bottom approach. Successful interventions must be participatory, developed by the local people or beneficiaries, implemented and monitored by them, all these will lead to their owning the project and processes leading to the project actualisation.
From experience most interventions that donot succeed lack local content i.e. have top to bottom approach. Successful interventions must be participatory, developed by the local people or beneficiaries, implemented and monitored by them, all these will lead to their owning the project and processes leading to the project actualisation.
From experience most interventions that donot succeed lack local content i.e. have top to bottom approach. Successful interventions must be participatory, developed by the local people or beneficiaries, implemented and monitored by them, all these will lead to their owning the project and processes leading to the project actualisation.
I have also written about the impact of Konza here http://www.yipekenya.org/Konza.html
It all comes down to whether the local authorities have value to add - in reality and not only in their own minds.
Recent research we executed showed that a very large municipality in South Africa had contracted enormous amoounts of research over the years. owever, they had contracted the wrong people, albeith no one in particular. Our research did a desktop review of all existing research. The fact is that none of the research had been done on a proper research basis. Most of the "numbers" generated were pure guesswork. In some cases they were estimating numbers at 300% of what we actually counted on our largest count (we did more than one).
Municipalities need to have accurate information they will share. It is pointless having bad information. It is pointless paying"consultants" who are clueless, unprofessional and unqualified. It is important that data is correct and accurate, because it is useless if it is not.
If municipalities are seen to be a source of useful and accurate information, all these external parties wil migrate towards the source - you!
Finally, officials must be friendly, helpful, willing to share and prepared to receive positive and constructive criticism at times. None of us are perfect, and if listening and changing will make a positive difference, should we not be embracing it?
It all comes down to whether the local authorities have value to add - in reality and not only in their own minds.
Recent research we executed showed that a very large municipality in South Africa had contracted enormous amoounts of research over the years. owever, they had contracted the wrong people, albeith no one in particular. Our research did a desktop review of all existing research. The fact is that none of the research had been done on a proper research basis. Most of the "numbers" generated were pure guesswork. In some cases they were estimating numbers at 300% of what we actually counted on our largest count (we did more than one).
Municipalities need to have accurate information they will share. It is pointless having bad information. It is pointless paying"consultants" who are clueless, unprofessional and unqualified. It is important that data is correct and accurate, because it is useless if it is not.
If municipalities are seen to be a source of useful and accurate information, all these external parties wil migrate towards the source - you!
Finally, officials must be friendly, helpful, willing to share and prepared to receive positive and constructive criticism at times. None of us are perfect, and if listening and changing will make a positive difference, should we not be embracing it?
It all comes down to whether the local authorities have value to add - in reality and not only in their own minds.
Recent research we executed showed that a very large municipality in South Africa had contracted enormous amoounts of research over the years. owever, they had contracted the wrong people, albeith no one in particular. Our research did a desktop review of all existing research. The fact is that none of the research had been done on a proper research basis. Most of the "numbers" generated were pure guesswork. In some cases they were estimating numbers at 300% of what we actually counted on our largest count (we did more than one).
Municipalities need to have accurate information they will share. It is pointless having bad information. It is pointless paying"consultants" who are clueless, unprofessional and unqualified. It is important that data is correct and accurate, because it is useless if it is not.
If municipalities are seen to be a source of useful and accurate information, all these external parties wil migrate towards the source - you!
Finally, officials must be friendly, helpful, willing to share and prepared to receive positive and constructive criticism at times. None of us are perfect, and if listening and changing will make a positive difference, should we not be embracing it?
Thanks very much Adrienne for engaging my blog. You are raising very valid points and I think that the phrase "LED and non-LED approaches to local economic development" captures very well the main idea being discussed here.
I wish to add two points to this discussion that points to the imperative of being serious about capturing non-LED approaches to local economic development. The first point is that, paradoxically, there seem to exist in Africa as well as globally very little success stories of LED approaches to local economic development. There was a time when I resolved to identify such cases and share on LEDNA. The yield was very thin!
When one reads articles from the developed world as well as hear the pronouncements of some LED experts on the question, it appears that this dearth of success stories is a global phenomenon. Could it be that the nicely crafted theories are not relevant enough once in the field? Or how should we understand this lack of success stories, if at all it is real?
Secondly, one knows almost instinctively that there are cases of cities, regions or villages where tremendous progress and success have been achieved over the years. Indeed the very existence of economically prosperous cities, some of which have emerged only recently, is testimony that some local economic development took place or is taking place. In the case of Africa identifying these “naturally occurring” economic development cases could, as you said, help us a lot in learning about what actually works. Anyone with a case in point?
Thanks very much Adrienne for engaging my blog. You are raising very valid points and I think that the phrase "LED and non-LED approaches to local economic development" captures very well the main idea being discussed here.
I wish to add two points to this discussion that points to the imperative of being serious about capturing non-LED approaches to local economic development. The first point is that, paradoxically, there seem to exist in Africa as well as globally very little success stories of LED approaches to local economic development. There was a time when I resolved to identify such cases and share on LEDNA. The yield was very thin!
When one reads articles from the developed world as well as hear the pronouncements of some LED experts on the question, it appears that this dearth of success stories is a global phenomenon. Could it be that the nicely crafted theories are not relevant enough once in the field? Or how should we understand this lack of success stories, if at all it is real?
Secondly, one knows almost instinctively that there are cases of cities, regions or villages where tremendous progress and success have been achieved over the years. Indeed the very existence of economically prosperous cities, some of which have emerged only recently, is testimony that some local economic development took place or is taking place. In the case of Africa identifying these “naturally occurring” economic development cases could, as you said, help us a lot in learning about what actually works. Anyone with a case in point?
Local Economic Developmenti (LED) is obviously related to, but not synonymous with local economic development per se. This concept can be rather confusing.
Two useful distinctions are made in this blog, which I believe help clarify the apparent conundrum. The first distinguishes LED policy enactment from local economic development progress on the ground. The second distinguishes local economic development practice that is related to LED policies and that which is not.
I find the second distinction particularly intriguing. Presumably, there are scores of local economic development projects underway all over Africa, completely independent of ‘LED’ as we know it. These projects are possibly/probably run by people totally unfamiliar with LED (and this website!). Learning how closely such projects – theoretically not related to LED – actually align with LED principles in practice could be enlightening and beneficial to both camps.
Comparing LED and non-LED approaches to local economic development within individual countries and Africa-wide, would surely make for an interesting component of any study focussed on LED advancement in Africa.
Local Economic Developmenti (LED) is obviously related to, but not synonymous with local economic development per se. This concept can be rather confusing.
Two useful distinctions are made in this blog, which I believe help clarify the apparent conundrum. The first distinguishes LED policy enactment from local economic development progress on the ground. The second distinguishes local economic development practice that is related to LED policies and that which is not.
I find the second distinction particularly intriguing. Presumably, there are scores of local economic development projects underway all over Africa, completely independent of ‘LED’ as we know it. These projects are possibly/probably run by people totally unfamiliar with LED (and this website!). Learning how closely such projects – theoretically not related to LED – actually align with LED principles in practice could be enlightening and beneficial to both camps.
Comparing LED and non-LED approaches to local economic development within individual countries and Africa-wide, would surely make for an interesting component of any study focussed on LED advancement in Africa.
With that much being said about street traders and certain policies that were passed that included them... I have been conducting some interviews for a project and I must say that the "street traders" need to be acknowledged by the government in order for the different unions to be formed. By doing this the country will surely be including them in most decisions made and the by-laws that indicate where each person os allowed to sell in would be something everyone is aware of. "Street traders" don't do this because they want but because they see the need to do so. If the government is able to build people houses why not include the street traders in voicing their opinions? Removing these people means increasing the poverty and unempolymment ration. Everyone whether the JMPD or Metro Police and government should have known by now that the everyone has a target market that they know off and situating themselves where they were means that they will have enough customers.
I find Professor Ncube’s opening statement that ‘the informal economy is often associated with increasing poverty and weak employment conditions’ most interesting. I would differ only on one point, that in fact, the informal economy is always associated with poverty and failure of the formal economy to provide adequate employment.
In my view then, the informal economy plays an important role in helping governments of poor nations (which paradoxically are often rich in resources); solve half of the problem – by providing employment and the means of income to many. The other half is of course its informality, non-payment of taxes etc. Most, if not all governments (and the scholars who advise them) tend to focus effort on the wrong half of the problem – the informality - without addressing in earnest, the crucial half of poverty and unemployment which is tantamount to killing the goose that lays the golden half of the egg. The informal sector exists largely because its operators find it uneconomic to comply with formal standards of operation.
Recognition of the informal sector alone will not solve the problem, so long as it is associated with formalization. Governments should rather let the informal sector be, by exercising the leas control possible and work instead, to reduce poverty and create employment. Most governments in Africa can do this, if they stopped wasting resources of their countries through corruption and other forms of abuse.
I find Professor Ncube’s opening statement that ‘the informal economy is often associated with increasing poverty and weak employment conditions’ most interesting. I would differ only on one point, that in fact, the informal economy is always associated with poverty and failure of the formal economy to provide adequate employment.
In my view then, the informal economy plays an important role in helping governments of poor nations (which paradoxically are often rich in resources); solve half of the problem – by providing employment and the means of income to many. The other half is of course its informality, non-payment of taxes etc. Most, if not all governments (and the scholars who advise them) tend to focus effort on the wrong half of the problem – the informality - without addressing in earnest, the crucial half of poverty and unemployment which is tantamount to killing the goose that lays the golden half of the egg. The informal sector exists largely because its operators find it uneconomic to comply with formal standards of operation.
Recognition of the informal sector alone will not solve the problem, so long as it is associated with formalization. Governments should rather let the informal sector be, by exercising the leas control possible and work instead, to reduce poverty and create employment. Most governments in Africa can do this, if they stopped wasting resources of their countries through corruption and other forms of abuse.
Thanks for the post ledna team! Great to hear the opinion of the Vice President of the African Development Bank and his attitude towards the informal sector in Africa.
There is no doubt that here in Rwanda, the informal sector is associated with "criminal endeavours and tax evasion". The few street hawkers brave enough to walk the downtown streets in Kigali are on constant alert; ready to run from pursuing police as necessary.
If the Rwandan Government truly wants to achieve their goal of reducing poverty from 45% to 20% and to create at least 1.8 million new off-farm jobs by 2020, they would do well to heed Professor Ncube's advice and develop a new approach to tackle their vast informal sector.
As suggested, recognising the heterogenity of this sector and distinguishing between large, small and micro informal enterprises would be a very good place to start. Whilst many of the larger enterprises could well be herded into the 'formal' sector with better access to financing, some of the micro enterprises are just not ready to be formalised. Encouraging some of these (usually household) enterprises could lead to their expansion and possibly formalisation, later down the track.
To relevant policy makers in Rwanda - please heed Professor Ncube's advice!
Thanks for the post ledna team! Great to hear the opinion of the Vice President of the African Development Bank and his attitude towards the informal sector in Africa.
There is no doubt that here in Rwanda, the informal sector is associated with "criminal endeavours and tax evasion". The few street hawkers brave enough to walk the downtown streets in Kigali are on constant alert; ready to run from pursuing police as necessary.
If the Rwandan Government truly wants to achieve their goal of reducing poverty from 45% to 20% and to create at least 1.8 million new off-farm jobs by 2020, they would do well to heed Professor Ncube's advice and develop a new approach to tackle their vast informal sector.
As suggested, recognising the heterogenity of this sector and distinguishing between large, small and micro informal enterprises would be a very good place to start. Whilst many of the larger enterprises could well be herded into the 'formal' sector with better access to financing, some of the micro enterprises are just not ready to be formalised. Encouraging some of these (usually household) enterprises could lead to their expansion and possibly formalisation, later down the track.
To relevant policy makers in Rwanda - please heed Professor Ncube's advice!
Thanks very much Peter for this extra suggestion about LED assessment. This comes to further complete LED assessment tools available to practitioners.
Thanks very much Peter for this extra suggestion about LED assessment. This comes to further complete LED assessment tools available to practitioners.
Thanks for the good overview. Just to complement this, I actually did an assessment of indicator use in LED design and measurement. It is available at https://www.dropbox.com/s/yg54k40j1ggie0r/Research%20on%20LED%20indicators%20for%20local%20governments.docx
Best,
Peter
Thanks for the good overview. Just to complement this, I actually did an assessment of indicator use in LED design and measurement. It is available at https://www.dropbox.com/s/yg54k40j1ggie0r/Research%20on%20LED%20indicators%20for%20local%20governments.docx
Best,
Peter
A quick word from Kenya. We can only hope that the devolved governments (becoming more akin to Rwanda’s decentralized governance) in our new dispensation will pay more cognizance to LED too.
A quick word from Kenya. We can only hope that the devolved governments (becoming more akin to Rwanda’s decentralized governance) in our new dispensation will pay more cognizance to LED too.