The nonpartisan Urban Institute publishes studies, reports, and books on timely topics worthy of public consideration. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders.

Note: This report is available in its entirety in the Portable Document Format (PDF).

This primer on Local Economic Development (referred to as "LED") is designed to provide Mission staff with a better understanding about LED. The document is broken down into four subsequent sections. The first section provides a framework for how one might want to think about and analyze the utility of a LED Initiative and what some of the elements of a LED program might be. The second section addresses successful LED strategies and illustrative components of a LED strategy. The third section is directed to key questions to be considered in judging whether or not the timing is right for LED and if so how to move forward. The fourth section provides case studies that demonstrate different approaches to LED programs (sectoral, regional, etc) and also provides samples of some LED scopes of work, related websites and other resource material. We hope that this Primer on LED is useful.

INTRODUCTION

In our global environment today, successful and economically vibrant communities depend upon being able to adapt to fast-changing national and international market forces. Yet many local governments still have a complex web of business regulations, permitting procedures, land management practices and outdated infrastructure which inhibit the ability of businesses in their communities to respond to new market opportunities. In addition to stifling local government regulations, many small businesses have limited business planning and management skills, poor access to markets and market knowledge, and almost no capital for investment. Individuals often lack experience in taking personal initiative and they neither see, nor know how to seize, opportunities. LED is a process that brings together resources from within and outside the community to address these challenges and to promote economic growth in a systematic and organized manner at the local level.

LED does not just happen; a local community needs to research its own economic strengths, agree upon a common strategy and organize itself to implement the strategy. USAID, with its robust history of national and local government capacity building, is well positioned to become a catalyst for promoting LED as a key ingredient to achieving broad-based and equitable economic growth.

Note: This report is available in its entirety in the Portable Document Format (PDF).

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