169 IACONO LED China

Local Economic Development in China: 

Local Economic Development in China ILO-Ministry of Labour and Social Security Programme, 2001-2004 by Max Iacono Senior Enterprise Development Specialist ILO Sub- Regional Office – Bangkok iacono@ilo.org

The LED Programme Framework: 

The LED Programme Framework Research phase Action planning phase Pilot case in one city Pilot cases in several cities/towns National LED policy workshop A LED national project A LED national policy

LED Research: 

LED Research Specify appropriate selection criteria and select representative target provinces and locations: Liaoning, Guizhou, Ningxia, Jiangsu, Shianzi Prepare in depth, detailed terms of reference for the field research case studies and for the overall five-cases synthesis report Train the MOLSS team of consultants-researchers to properly implement the research Conduct the research, write up the case studies Prepare the synthesis report Debrief the prepared case studies and the synthesis report with the consultants-researchers team

Action Planning Phase: 

Action Planning Phase Design the model for a locally-held and conducted LED strategic planning workshop Train the team of consultants-resource persons to implement/ facilitate the first workshop Implement the workshop: present the research findings and recommendations for the locality and those of the overall synthesis report discuss research findings and recommendations with stakeholders local stakeholders develop more detailed action plans preliminary discussion of the optimal approach for implementing the prepared action plans Local stakeholders write-up a full local economic development strategy and a set of sector-by-sector implementation plans

Pilot Implementation: 

Pilot Implementation The preliminary LED strategy and the action plans developed by the local stakeholders are further refined and elaborated strategy and plans for the overall economic development content strategy and plans for the institutional development content Target sectors and sub-sectors are identified and studied in more depth (e.g. tourism, herbal medicines, jade jewelry sub-sector, the SME “sector”, training and skills development sectors, urban development sector, infrastructure sectors, etc;) Pilot implementation of some initial practical measures (feasibility studies, organizational development, training, technical assistance, capacity-building, private and public investments, creation of new businesses, development of existing businesses, development of the directly supporting policies) Monitoring and evaluation of the pilot practical measures implemented

Further programme development: 

Further programme development Implement a larger number of pilot cases in more localities Monitor and evaluate LED progress in these several cases Draw policy conclusions about LED content and process Present these conclusions to national level policy-making stakeholders Develop and agree a preliminary national LED policy Prepare a national LED project with several local components based on the policy Implement the LED project at several locations Develop, implement and mainstream LED as a policy tool for national economic and social development to integrate with other complementary national/provincial policies

The Research Framework: 

The Research Framework The Economic Research and Analysis Framework i.e. what are the: The local economic context The local business context The local enterprise development context (micro, small, medium, large; domestic, foreign, joint, collective, cooperative, etc.) Institutional Arrangements Frameworks i.e. what are the: The existing institutional arrangements as found in the: Public sector Private sector Civil society sector The more desirable institutional arrangements The local institutional development strategy

Research framework (continued): 

Research framework (continued) LED process organization and management better coordinating and concerting all local economic development planning actions better coordinating and concerting the local economic development implementation actions better coordinating and concerting the planning of local institutional development for LED better coordinating and concerting the implementation of local institutional development for LED

Research framework (continued): 

Research framework (continued) LED Action Plans overall local economic development plans (local economic and social development strategy and the sequencing of its components) sector by sector (or by sub-sector/industry) development strategies and plans economic infrastructure sectors social infrastructure sectors productive sectors / business sectors

Research Findings (issues and problems): 

Research Findings (issues and problems) Local “ways of thinking” and attitudes are not necessarily up to date with the now more “modern times” Insufficient levels of entrepreneurship Insufficient professional, technical, vocational or managerial skills and competencies in the local labour force Inadequate business financing and access to capital Unbalanced or irrational mix of economic, industrial and production structures and their related development policies Lack of adequate or timely business information and its delivery through modern means (e.g. the internet)

Research findings (issues and problems, continued): 

Research findings (issues and problems, continued) significant problems in physically getting products to markets local public administrations are not yet oriented to facilitation and service provision and are still partially in a command and control mode agricultural infrastructure is weak, there are low levels of urbanization and an over-abundant rural labour force more coordinated efforts and well-sequenced inputs of qualified human resources, capital, information, production and industrial restructuring are needed if local economic development is to take place labour administration is weak collaboration and coordination between new and existing private and public agencies and civil society organizations is weak local government interference in productive sectors continues; shift in the fundamental role of public administration is not yet fully accomplished functions expected of intermediary services agencies are not yet being delivered

Research recommendations for:: 

Research recommendations for: -Local economic development -Local institutional development -Ways forward and next steps

General recommendations for LED: 

General recommendations for LED Better link or coordinate the development efforts and contributions of different economic and social sectors and sub-sectors Better promote or develop single economic or social sectors Better link government and public administration overall to business and the needs of the business community Better identify, formulate and implement more useful kinds of local economic development projects Better help businesses to better develop their functional areas of business management e.g. access to markets, financing, technology, information, HRD/HRM, R&D, supply chains, etc. More effectively remove constraints and impediments presently existing to the development of businesses large, medium, small and micro. (e.g. credit guarantee funds, training, development of small business associations, improved policy environment, etc.)

General Recommendations for Institutional Development and for New Institutional Mechanisms for LED: 

General Recommendations for Institutional Development and for New Institutional Mechanisms for LED Create a public administration service center (Xiuyan, Liaoning) Set up a local economic development consultation committee (Xuzhou, Jiangsu) Develop an enterprise development joint conference and establish some sectoral business associations (Qingtonxia, Ningxia) Set up a local economic development and employment promotion association (Duyun, Guizhou) Establish a market promotion and coordination committee (Houma, Shanxi)

Ways forward /next possible steps for the LED Programme to consider:: 

Ways forward /next possible steps for the LED Programme to consider: Focus on developing improved kinds of institutional mechanisms for LED Focus on thinking more clearly about LED itself: should it be integrated local economic and social development or should it be done sector by sector? Focus more effort and energy on the private sector, business and the development of enterprises Focus on better linking economic development with business or enterprise development Focus on economic and business development strategies specifically for job creation and employment: what strategies are most employment friendly? Better link government and public administration to business development and economic development Focus on developing those economic or social infrastructure structure sectors that appear most weak or deficient and thus pose bottlenecks to the development of productive sectors and businesses What kinds of new institutional mechanisms or institutions should be implemented to promote and best meet the above objectives?

Possibilities to consider in the upcoming programme phases:: 

Possibilities to consider in the upcoming programme phases: At the local level: Conduct more local level LED studies? Conduct more local-level LED strategic action planning workshops? Launch, support and monitor the implementation of the already developed action plans? A combination of the above?

Possibilities to consider (continued): 

Possibilities to consider (continued) At the national level: Implement a baseline survey of the current approaches to LED policy development and implementation in a wide range of localities? Implement a national level workshop on LED involving stakeholders from both national government agencies and the local levels? Link the LED policy approach for China with other national and provincial government policies in the economic, employment and social protection spheres?

Programme workplan:: 

Programme workplan: On the basis of the above possibilities and the previously defined overall programme framework, research findings and the strategic workshops already conducted, the MOLSS and ILO will develop an operational workplan for the upcoming programme This workplan will be implemented over the next six to twelve months and will be closely monitored and adjusted as needed.

THIS COMPLETES THE PRESENTATION OF THE LED PROGRAMME IN CHINA: 

THIS COMPLETES THE PRESENTATION OF THE LED PROGRAMME IN CHINA Thank you for your attention