Introduction
 Local Economic Development is being
implemented within the broad framework of
decentralisation
 One of the objectives of Uganda`s
decentralisation
is
to enhance
local
economic development in order to increase
local incomes and expand local revenue
bases.
 This policy shift in implementation of
decentralisation was meant to address the
apparent gap in the original design of the
decentralisation policy which did not take
full account of local economic development.
Structure of Government
System in Uganda
 Central Government responsible for
Policy setting, monitoring, support
supervision
 Local Governments responsible for
Sub-national development and
delivery of services
 All done is in a decentralized
framework
Objectives of the Decentralisation
 The objectives of the Decentralisation policy in Uganda are to:
 Transfer real power to districts and thus reduce the load of
work on remote and under resourced central officials.
 Bring political and administrative control over services to
point where they are actually delivered, thereby improving
accountability and effectiveness, promoting peoples feeling of
ownership of programmes and projects executed in their
districts.
 Free local managers from central constraints and, as a longterm goal, allow them develop organisational structures
tailored to local circumstances.
 Improve financial accountability and responsibility by
establishing a clear link between the payment of taxes and
the provision of services they finance.
 Improve the capacities of the councils to plan, finance and
manage the delivery of services of their finance and manage
the delivery of services of their constituencies.
 Support local economic Development in communities
Powers Devolved to LGs
 The powers devolved include:
 Political powers – Councils are headed by politically
elected leaders by universal adult suffrage
 Financial powers – Councils collect and appropriate
resources in their budgets
 Administrative powers – Councils manage staff in
their districts
 Planning powers – Councils make development
plans for their areas
 Legislative powers – Councils make ordinances or
bye-laws
 Judicial powers – Executive committees at the
village and parish also double as local council
courts. At sub-county/town council there is also a
local council court.
Strategic Role of LGs: Range of LG System Outputs
Local Government System
Policy, Legal & Regulatory Framework
Institutions, Systems & Procedures
Capacities & Financing
Local Development
Other
MDG
Social Protection
Food Security
Basic Social
Services
Local Economic
Development
Natural Resource
Management
Specialized
LG System
Outputs
Local Economic Development - Objectives
Local Economic Development Focuses on:
Enhancing Competitiveness of a Local Economy;
 A Diversified Local Economy;
 Which is Agile & Responsive
 Efficient at Utilizing Resources (human, natural & financial)
 and has a Highly Productive/Efficient Labour and Enterprises
Achieving Sustained Growth of a Local Economy;
 Sustained Growth of Outputs of an Economy’s Sectors, Clusters
and Value Chains
 Sustained Growth in Quality Employment
 Sustained and Growth in Household Income
Ensuring Equity/Inclusiveness of Economic Growth;
 Equitable Distribution of Growth in an Economy’s Formal and
Informal Sectors
 Equitable Access to Employment and Growth Opportunities by all
Local Economic Development Framework
National Government:
 Policy and Legal Framework
 Political Support and Advocacy
 Resources
Planning (National Development Plan)
Regulatory Framework
Local Governments
•Planning
•Resources
•Implementation
•Review
Regulation
PPP
Private Sector
•Business knowledge
•Value chain
•Financial Institutions
Model by Mutabwire
2010
LED
Market
Services
Community
•Indigenous knowledge
•Social Capital
•Livelihood and Safety net
systems
•Resources
Local Economic Development: Four Main Pillars
 Locality development,
 strengthening competitiveness and
enterprise development,
 promoting local economic
governance
 building community conscience and
improvement of their well-being.
Local Economic Development (LED) and
Decentralisation Framework
Decentralisation Framework
Decentralisatio
n Framework
Local Local Economic
Governance
Economic
Governanc
e
LOCAL
ECONOMIC
DEVELOPMENT
LOCAL
ECONOMIC
DEVELOPMENTEnterprise
Developm
ent
Locality
Development
Community
Locality
Economic
Developmen
Development
t
•A conducive
regulatory and
physical business
•Aenvironment
conduciverealised
regulatory
•PS involved in
and
physical
business
Planning and
environment
realised
decision making
•LG business
•Private
Sector involved
in •Capacity
Planning and decision
development
making
•LG business
•Capacity development
Source: P. Mutabwire 2010
Enterprise
Development
Small and Medium
Small and Medium
Enterprise
Enterprises
•Increase
Household
incomes
and quality
of life
•Strengthenin
g of Private
Sector
•Increase
Business
•Increased tax
base for LGs
•Employment
Creation
•Increase Household
incomes and quality
of life
•Strengthening of
Private Sector
•Increase Business
•Increased tax
base for LGs
•Employment
Creation
Local Economic Development: The new
agenda for local governments
 LED is also being introduced into the local
governments’ portfolio of investments in a bid
to enhance people’s incomes and expand the
tax base for local governments.
 The declining LG local revenues coupled with
the weak linkage between local revenues &
service delivery has created a fiscal crisis in
LGs.
 This crisis provides an opportunity for
stimulation of a changed relationship
between LGs & tax payers as well as a
fertile ground for mobilization of local
resources through LED.
National and local enabling
environment
 State of the Legal provisions and policy
framework:
 Constitution of Republic of Uganda,
 Local Governments Act,
 National Development Plan-Subnational
development,
 Decentralisation Policy Strategic Framework,
 Local Government Sector Plan,
 LED Policy and Strategy
 Supporting Regulations-e.g Procurement and
Finance regulations
LED policy and strategy
 A LED policy and strategy for local governments is
being finalised.
 The overall goal of the LED strategy is to
contribute to poverty eradication focusing on:
 Improving local governance for sustainable local
economic growth;
 Employment creation;
 Increased production and productivity of
enterprises;
 Increasing incomes; and
 Broadening the tax base for local governments
to deliver the mandated services.
Implementing LED
Local Economic Governance
Locality Development
Enterprise Development
Institutionalisation
Strengthening LG planning systems
Gender in LED
Previous Planning Framework
National
Development Plan
MTEF
NATIONAL
PLAN /
BUDGET
DDP
LLG PLANS
New Dispensation in Planning
NATIONAL DEVELOPMENT
PLAN
NATIONAL PLAN/
BUDGET
DDP / MUNICIPAL
DEVELOPMENT
PLANS
LLG
PLANS
LOCAL ECONOMIC ASSESSMENT
•Resource endowment
•Investment gaps
•Investment opportunities
•Capacity gaps
•Impact of policy framework
Progress to Date
 National LED Resource Team (NRT)
 Programme in 5 Pilot districts
 Local Economic and Business
Assessments done in 5 Districts
 Implementing Quick wins
 Integration in District Development
Plans
Local Economic and Business Assessments








Areas of Assessment
Local Economy Assessment
Regulatory Environment Assessment
Economic Infrastructures and Social Services
survey
Business Assessment
Financial services sector assessment
Public private Partnership (PPPs) Assessment
Civil Society Organisation(CSOs) Assessment
Key strategies for Strengthening
Roles of LGs in Local Development
 The key strategies adopted by the Government of
Uganda for deepening the implementation process of the
decentralisation policy and strengthening the role of LGs
in Local Development include;
 creating an enabling framework for citizens, NGOs,
Community Based Organisations (CBOs) and the private
sector to perform an oversight role in the way public
funds are being spent by Local Governments.
 promoting public-private partnerships (PPPs) in service
delivery;
 enhancing the capacity of central and local leaders to
internalize their roles and functions;
 enhancing
political,
administrative
and
fiscal
accountability, both vertically and downwards; and
 extensive civic education on rights and obligations of all
stakeholders in local development
CONCLUSION: Are Local Governments ready
for Local Economic Development?
 Yes- Preliquisites include:
 National enabling laws and framework for LED
 Change of mind set- LGs being focused on
development of their local economies
 Reviewing development planning to factor in
business and economic assessment
 LGs should utilize the proximity in a given
locality to enhance cooperation and networking
among stakeholders
 local government should make conducive
regulations to facilitate business and locality
development activities
Conclusion-Looking into the future
 Strong and vibrant local economies will provide
a broad revenue base from which local
governments can mobilize resources to finance
their mandates under a decentralized system of
governance.
 A
strategic
way
forward
for
financing
decentralisation is through initiating policies
aimed at wealth creation and increasing
people’s incomes