UKZN / Gijima LED Masters Programme

1. UKZN / Gijima LED Masters Programme International Perspective of LED 7 April 2010

2. Agenda Contextual Premise A Learning Perspective of Local Economic Development Personal Insights into LED Development Hypothesis Questions

3. Development Premise “Because governments care so much about domestic disparities, they jeopardise competitiveness and risk collapse. Policies to reduce interstate or provincial disparities in production and living standards are commonplace … but largely ineffective.” World Development Report: Reshaping Economic Geography (2009)

4. Confused Understanding of LED Economic Development: Social Development: Urban Planning:

5. Profit vs. solidarity Time horizon Visual vs. substance Hypothesis - LED Is An Outcome Not An Activity Economic Development: Quick results Competitiveness Sustainability Consumers LED? Social Development: Support for disadvantaged and marginalised Beneficiaries Solidarity Urban Planning: Long time horizon Planning Aesthetic criteria

6. #1 – Seldom any Regional Identity • Comparative advantage • Distinctive competencies • Regional Competition but very little collaboration • Parallel universe’s Asia is the exception because they put national interest before individual rights

7. #2 – Inappropriate LED Strategies • Consultant driven and often generic (if not cut & paste) • Strategic Planning is an oxymoron • Seldom, if ever, any local conversations that matter! • Seldom, if ever, any uncertainty & trend evaluation • No “radar” or early warning systems • Strategies stay in the cupboard – often because they are not trusted or embedded! • Significant influences by: • World Bank – that works in silo’s and has its own “experts.” • Donor who need to make everything a time framed project

10. # 3 – Parallel Universe • Shotgun approach rather than economy of scale • People do what works not what is planned • Replicate rather than innovate • Compete rather than collaborate. Asia seems to manage and encourage collaboration and build critical mass before engaging internationally Latin America focuses very much on comparative advantage and vertical Integration

11. #4 – Reluctant Internal Capability "Education is an admirable thing, but it is well to remember from time to time that nothing that is worth learning can be taught.“ Oscar Wilde • Collective decisions default to lowest denominator! • Either lack of confidence or fear of failure. • Minimal if any knowledge capital • Management by consensus • Responsibility delegated but no authority. • Asia, Middle East & Latin America have better defined barriers of responsibility between political leadership, management and operational staff. • Educational entry levels are very high • Politics in Asia is just as robust as SA

13. # 5 – Little if any Incentive to perform • Little if any incentive for operational staff to innovate. • Public service buildings are depressing. • Institutional memory is usually absent. • Command and control performance system. • Fear of failure trumps potential for success

15. #6 – Good Intentions … Wrong Projects • External rather than build on what is available • Race to the bottom! • Projects not adequately scoped • Zero sum games! • Projects often divisive rather than catalytic • Most other developing countries put national interest first, facilitate collaboration but protect their assets • Far East often has state owned business’s - but people seem more tolerant • Education and learning is very high on the agenda!

16. Hypothesis “Prosperity will not come to every place at once, but no place should remain mired in poverty. With good policies, the concentration of economic activity and the convergence of living standards can happen together. The challenge for governments is to allow – even encourage – unbalanced economic growth, and yet ensure inclusive development.” More apparent in China & Asia less so in Latin America and Middle East

17. My Expectation Participants, equipped and confident to take ownership of institutional developmental objectives. This will require: A clear perspective (maybe a new definition) of LED Make strategy development endogenic Equipped with understanding and application of tools & methods to better conceptualise projects & programmes Confidence and knowledge to bring all stakeholders into the development process Launch of a knowledge management and support system (CoP) to build and continually improve institutional confidence and capability