UKZN / Gijima LED Masters Programme

International Perspective of LED7 April 2010

Agenda

1. Contextual Premise2. A Learning Perspective of Local

Economic Development3. Personal Insights into LED4. Development Hypothesis 5. Questions

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)

Confused Understanding of LED

Economic Development:

Urban Planning:Social Development:

Hypothesis - LED Is An Outcome Not An Activity

Economic Development:Quick results

CompetitivenessSustainabilityConsumers

Urban Planning:Long time horizon

PlanningAesthetic criteria

Social Development: Support for disadvantaged

and marginalisedBeneficiaries

Solidarity

Time horizon

Visualvs.

substance

Profit vs.solidarity

LED?

#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

#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

Low

High

HighLow

Strategy Framework

Business As UsualBees

Ready for AnythingFox’s

Adapt or DieMonkey’s

Charismatic LeadersHedgehogs

Understanding / Learning

Unc

erta

inty

/ Tu

rbul

ance

Scen

ario

’s+

Rad

ar

Legi

slat

e

Planning+ Power

Scenario’s& Options

# 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 internationallyLatin America focuses very much on comparative advantage and vertical Integration

#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

# 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

#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!

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

My ExpectationParticipants, equipped and confident to take ownership of institutional developmental objectives. This will require:1.A clear perspective (maybe a new definition) of LED 2.Make strategy development endogenic3.Equipped with understanding and application of tools & methods to better conceptualise projects & programmes4.Confidence and knowledge to bring all stakeholders into the development process5.Launch of a knowledge management and support system (CoP) to build and continually improve institutional confidence and capability