From LED to Regional
Competitiveness
West Coast District
Piketberg
13 November 2013
Shannon Hiemstra & Colin Mitchell
Stone Soup Development (Pty) Ltd
083 7771004
www.stonesoupdevelopment.com
LED necessary but not sufficient?
Question:
What assumptions should we test or
challenge in thinking about our
municipality / region in the light of our
accumulated experience and
understanding of local economic
development?
What is Development?
“Development ultimately is not a matter of
GNP or money or physical capital or foreign
exchange,
but of the capacity of a society to tap the
root of popular creativity,
to free up and empower people to exercise
their intelligence and their individual and
collective efforts to achieve a better life.”
Kari Levitt
LED & PACA
It’s about balance!
Growth
Gilded
Cage
In
Limbo
Future
Assured
Flattering
Social
to Deceive
Development
Development
Systemic Competitiveness
Meta Level
“Basic orientations and societal framework
conditions in a given society”
Competitive
Capacity to formulate
Economic system
visions & strategies
Development-orientated patterns of
Collective memory
Value systems that encourage
political organisation
learning & change
Social status of
Social cohesion /
Macro Level
Entrepreneurs
social capital
“Generic institutions, economic
policies and framework conditions”
Exchange rate policy
Monetary policy
Budgetary policy,
fiscal policy
Anti-trust policy
Stable, competition-orientated macro-economic,
political and legal framework conditions
Trade policy
Meso Level
Consumer protection
Protection of
property rights
“Selective interventions to support companies'
effort to shape a competitive advantage”
Export promotion
Industrial Policy
Targeted policies & institutions to Environmental Policy
Regional policy
strengthen the competitiveness of industries
Infrastructure
Education Policy
Locational policy
Economic promotion
Micro Level
Targeted activities to improve market functionality
Formal and informal coIntra-firm effort to improve efficiency,
operation,
trust, networks,
quality, flexibility, responsiveness;
alliances, collective learning
business strategy
“Companies, competitive markets, including networks and alliances
needed to sustain competitive efforts”
Technology Policy
Availability & access
to information
Systemic Competitiveness
Meta: Development-orientated patterns of
socio-political organisation
Growth
Macro: Generic institutions, economic
policies and framework conditions
Meso: Selective interventions
to support efforts to shape a
competitive advantage
Micro: Targeted
activities to improve
market functionality
Development
Micro Level
Companies and entrepreneurs needed to create and
sustain competitive efforts
Growth
• Intra-firm effort to improve
efficiency, quality, responsiveness;
• Formal and informal co-operation,
• Trust and social capital
• Networks, alliances,
• Collective learning
Micro: Targeted
activities to improve
market functionality
Development
Meso Level
Growth
Targeted approaches &
institutions to
strengthen the
competitiveness of
localities
• Economic promotion
approach & organisations.
• Environmental protection
agencies.
• Relevance & effectiveness
of education providers.
• Availability of & access to
Information.
Meso: Selective interventions
• Effectiveness of
to support efforts to shape a
municipality to deliver
competitive advantage
services.
Development
Macro Level
Growth
Stable, competition-orientated macro-economic,
political and legal framework conditions
• Budget & Finance Policy.
• Regional Development
Policy, Approach and
Principles
Macro: Generic institutions,
• Environmental Policy
economic policies and
• Regional policy cohesion
framework conditions
• Technology Policy
• Availability & Access of
Information
Development
Meta Level
Basic orientations and societal framework conditions in a
given society
Growth
Meta: Development-orientated patterns
of socio-political organisation
• Social status of entrepreneurs
• Value systems that encourage
learning & growth
• Socio-economic positioning of
locality
• Capacity to formulate vision &
strategy
• Social cohesion and inclusion
Development
Municipal Re-positioning
Clan
Values cohesion,
participation and
communication;
Like a family
Hierarchy
Favours structure &
control; Coordination
and control; Stability
and efficiency
Adhocracy
Dynamic, adaptable,
innovative and
action learning
orientation
Market
Results & Performance
orientated;
Competitive and
“customer” focussed
Stability & Control
External Focus
Internal Focus
Flexibility, Innovation & Leadership
Municipal Development Orientation
Flexibility, Innovation & Leadership
Adhocracy
Target
Orientation
Current
orientation
Hierarchy
Market
Stability & Control
External Focus
Internal Focus
Clan