Transcript No Slide Title

Rural Economic & Enterprise
Development: A framework for
analysis & joint action
Dhaka, Bangladesh 23rd November, 2004.
Junior Davis and Felicity Proctor
Natural Resources Institute (UK)
[email protected]
Workshop Objectives
 Present the Rural Economic and Enterprise
Development (REED) Framework
 Exchange relevant current and planned project and
programme experience between practitioners and review
in the light of the REED framework
 Review the potential utility of the REED framework in the
Bangladesh context
 Consider options for follow up action research and
learning in partnership with the NRI led programme
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Hoped for Outputs
 Better understanding of REED as a framework to support
multi-stakeholder processes for rural economic
development and poverty reduction
 Shared learning between Bangladeshi programme
practitioners set within rural and local economic
development
 Emergence of a learning platform/network on REED/LED
to support ongoing and future programme interventions
 Agreement on whether and how to take forward work on
the validation of REED in the Bangladeshi context and
possible future uptake
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What is Local Economic Development
 Local economic development is about local people
working together to achieve sustainable economic
growth that brings economic benefits and quality
of life improvements for all in the community.
“Community” is here defined as a city, town,
metropolitan area, or sub national region (World
Bank, 2004).
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Three Waves of local Economic Development
Focus
Tools
1960s to early 1980s:
 mobile manufacturing investment, attracting
outside investment, especially the attraction
of foreign direct investment
 hard infrastructure investments
To achieve this regions/government/NGOs used:
 massive grants
 subsidized loans usually aimed at inward investing
manufacturers & tax breaks
 subsidized hard infrastructure investment
1980s to mid 1990s:
 the retention and growing of existing local
businesses
 still with an emphasis on inward investment
attraction, but usually this was becoming
more targeted to specific sectors or from
certain geographic areas
To achieve this regions/government/NGOs provided:
 direct payments to individual businesses
 business incubators/workspace
 advice and training for small- and medium-sized
firms & technical support
 business start-up support
 some hard and soft infrastructure investment
During this third (and current) wave of LED,
more focus is placed on:
 soft infrastructure investments
 public/private partnerships
 networking and the leveraging of private
sector investments for the public good
 highly targeted inward investment attraction
to add to the competitive advantages of
local areas
To achieve this regions/government/NGOs are:
 developing a holistic strategy aimed at growing local
firms & providing a competitive local investment
climate
 supporting and encouraging networking and
collaboration
 encouraging the development of business clusters
 encouraging workforce development and education
 closely targeting inward investment to support
cluster growth; supporting quality of life
improvements
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Research on local economic development
highlights:
 Significant role played by extensive and established local
economy clusters
 Municipal/ local government plays a key role in impacting
these economies
 Constraints are often inadequate political
decentralization and regressive urban planning
regulatory frameworks
 A purely "industrial" or “agricultural” focus excludes:
• extensive livelihood linkages in the rural and urban
economy,
• governance aspects.
• importance of extensive trade networks inter-connecting
distinctive local economies both rural and urban
What is REED?
 The Rural Economic and Enterprise Development is a
framework based on the analysis of successes and
experiences of programmes and projects by an
international group of practitioners from different
professional backgrounds and countries.
 REED framework offers a flexible tool for joint analysis,
planning, evaluation and learning among stakeholders
concerned with rural economic and enterprise
development.
 It is an example of an holistic and spatial approach to
local, rural and urban development.
The Evolution of REED
Joint donor initiative (GTZ, DFID, SDC, IFAD, CTA, FAO,
WB) to overcome fragmentation
Framework developed based on success factors of
operational experience from a diverse range of
programmes (Berlin workshop November 2002)
This was developed using the Learning Wheel
methodology.
10. Ongoing
learning from
success and
failures by all
stakeholders
9.Active
participation
and ownership
of development
processes by
well linked
stakeholders
8. Local
organisation,
groups and
associations
(representing the
poor) as building
blocks
7. Adaptive
management
capacity and
entrepreneurial
competence
within business
and enterprises
1. An enabling
environment that
provides for an
attractive investment
climate and dynamic
entrepreneurship
Fostering
Rural Economic
and Enterprise
Development
2. Effective
mechanisms and
structures that
address local
needs
3. Active
private sector
institutions
and links
4. Functioning
and effective
infrastructure
(hard and
soft)
5. Access to
integrated and
open markets
6. Access to
effective and
efficient
support
services and
resources
Using REED: in the planning process
Use of the framework in the planning process for poverty
oriented LED in rural and urban areas
As a checklist in the planning process
As a tool to define priorities with stakeholders and
decision makers
As a guideline in participatory planning with stakeholders
As a tool for joint planning with different projects and
donors
As resource material for the REED/LED planning
process
Using REED: in prioritising
interventions
Using the framework as a tool for selecting amongst
intervention priorities (gateway function)
For example:
 local and regional economic development
 promotion of value chains
 training and human resource development
 rural and urban business development services
 microfinance
 ....
Using REED: in monitoring & evaluation
Use the framework for monitoring and evaluation:
 As a guideline to establish a M & E System
As a tool for discussions with decision makers on
changes observed
As a tool for joint evaluation of different projects in the
same region
To help define indicators for results and impacts on
different levels
As a tool to establish benchmarks for regions and
countries
The Cornerstones of Rural Economic and
Enterprise Development framework
Each cornerstone contains
The aim of a cornerstone in the overall context of
REED/LED
Core elements of the cornerstone
Key strategies to achieve best results
Instruments and means of implementation
Links to websites with information, experiences and
best practices
The key elements of the ten REED
Cornerstones
Cornerstone 1. An enabling environment for an
attractive investment climate and entrepreneurship.
Good governance, improved reformed regulation, taxation,
licensing, remove tariff and non-tariff barriers
Cornerstone 2. Effective mechanisms and structures
that address local needs.
Effective decentralisation, empowerment of communities
Cornerstone 3. Effective private sector institutions & links
Build capacity of private BDS, enhance organisational capacity,
create local business networks
The key elements of the ten REED
Cornerstones
 Cornerstone 4. Functioning and effective infrastructure
(hard and soft).
 Identify infrastructure needs of rural SMEs, Providing & maintaining
required infrastructure, integrating into wider systems, quality dimensions
 Cornerstone 5. Access to integrated and effectively
functioning markets.
 Access to markets, transparency & stability of markets, market
chain integration & management, market development
 Cornerstone 6. Access to effective and efficient support
services and resources.
 Provide information & specialised services, Develop market for service
provision, provide contracted business services, supply inputs, access to
finance & R&D facilities
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The key elements of the ten REED
Cornerstones
Cornerstone 7. Adaptive management capacity and
entrepreneurial competence within business and enterprises.
Management & organisation, production & service generation,
financing, marketing, networking
Cornerstone 8. Local organisations, groups and
associations (representing the poor) as building blocks.
Understand organisational arrangements, motivate selfmobilisation, facilitate organisational development, ensure
organisational graduation to higher and appropriate levels of
formalisation
The key elements of the ten REED
Cornerstones
 Cornerstone 9. Active participation in and ownership of
joint learning processes by well-linked stakeholders.
 Identifying stakeholders, building stakeholder convergence,
creating structured platforms & for a for negotiations, creating
networks for learning
 Cornerstone 10. Ongoing learning from success and
failure by all stakeholders
 Create platforms to share and review information, agree vision and M&E
framework, creating an effective knowledge management system
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Cornerstone 4. Functioning and effective
infrastructure (hard and soft).
CONTENT
1.
1.Identifying
the
infrastructure
required by
rural
enterprises
KEY STRATEGIES &
PROCESSES
1.
1.Assess the existing
infrastructure and identify gaps
and the necessary
improvements;
2.Improve access to the
infrastructure
3.Identify ways and means to
reduce the costs of accessing
the infrastructure.
1.
1.
1.Encourage public and private
investment in infrastructure;
1.
Development of sound proposals for new or
improved facilities with benefits to rural
enterprise and the public.
1.
2.Privatise state utility service
providers;
1.
2.
An independent regulatory body;
Invitations to tender for management of
service delivery contracts.
1.
3.Promote local, self-funded
facilities, eg, collective or
cooperative services;
1.
Development of innovative schemes for selffunding.
1.
4.Establish facilities on a
correct and legal basis, eg,
access.
1.
Investigation into the local regulatory or legal
position.
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2.
3.
1.
2.Providing
the required
infrastructure
POSSIBLE WAYS TO IMPLEMENT
2.
3.
4.
Survey of existing infrastructure and business
needs;
Identification of priorities and contributions in
multi-stakeholder forums;
Increase in the volume of goods or services
using the infrastructure;
Provision of low-cost solutions to enterprise
needs.
Scenario for using the REED framework
in an LED setting (l)
The following steps are proposed:
l. Define geographical area (e.g., district, province),
II. The framework could be applied to analyse the existing
situation in that area and identify potential areas of
improvement.
III. Cornerstones, their interdependencies, strengths and
gaps could be identified by detailed analysis and selfassessment.
Scenario for using the REED framework
in an LED setting (ll)
IV. The gaps or shortcomings blocking the exploitation of
the economic potential of the region should be
analysed in detail and prioritised by their negative
effects on the system.
V.
Factors with the greatest negative impact should be
addressed through intervention.
VI. Once the possible interventions are identified,
implementation strategies can be planned and the
roles of the different actors and their mutual
expectations can be clarified.
How REED can add value
1. Thinking about economic and livelihood strategies to
compliment other spatial planning and management
efforts is new. Critical linkages which combine to direct
resources and interventions strategically and spatially
need to be considered.
2. Public administrations should conceptualize
REED/LED strategies in a trans-locational (village, sm.
towns, cities) perspective, including its institutional
setting and prioritise according to cost effectiveness
and socio-economic impact.
3. REED provides a common platform and mechanism to
link policy, procedures and interventions from a
multidisciplinary perspective.
NRI Action research and shared learning
on REED

The research aims to develop further the conceptual
framework and project tool for the fostering of rural
economic and enterprise development in Bangladesh
and South Africa

In pursuit of this, the project aims to:
 Apply the REED framework and share emerging
practice on pro-poor public policy and institutional
support at local and national government levels
specifically in South Africa and Bangladesh.
 Refine and develop the conceptual framework so that it
can address gaps in the framework
Approach
Collaboration with In-country partners
Collaboration with UK and EU partners
Consultation with key stakeholders
Policy and Institutional focus
Policy dialogue
Methodological issues
Study site selection criteria
Unit of analysis
Quantitative and Qualitative Research
Methodologies and tools
Issue(s)/Purpose
Potential Methodological Tool(s)
Assessment of community physical/natural
assets
Participatory Resource Mapping
Secondary data on economy, employment
and demography
Transect walks
Focus group discussions
Exploration of local resources and
development conditions
Understanding of different SME and MSME
activities
Focus group discussions
Gaining in-depth knowledge of specific issues,
structures and organizations
Key informant discussions
In-depth interviews and Institutional audits
Following up and illustrating specific issues
Case studies – semi structured interviews
Stakeholder perceptions, attitudes, meanings
and values (social assets)
Focus group workshops semi-structured
interviews
Impact of sectoral policy frameworks on LED
Empirical analysis of secondary data
Case studies – SAM/PAM
Information on the factors that constrain
poor’s access to employment and SME
development.
Identification of needs for the development of
the LED
HH survey/ secondary data/ questionnaire/
Enterprise questionnaire
Focus group discussions, Key informant
discussion, enterprise QNR
Policy uptake and dissemination
Stakeholder involvement and shared learning
platform at country-level
Input into DFID, World Bank and EU
programme and investment processes
Published Outputs and Website
Networking
Seminars and Workshops
Inception Phase
 Literature Review
 Identification of in-country research partners
 Interactive consultation with policy-makers and incountry stakeholders
 Joint planning with in-country partners, GTZ, UN-FAO
etc.
 Selection of case-study sites/ regions
 Develop Papers for WB local economic development
conference in Washington and forthcoming GTZ
conference in Sri Lanka
 Initial workshops and seminars
Proposed in-country activities l
Research activities in each study area:
 A study which assesses the institutional and policy
context for REED/LED in each country
 A review of relevant literature and secondary data, and
dialogue with key stakeholders.
 A full inventory of the existing data on REED/LED
 Reach agreement with partners on study/project location
 Baseline (community level) survey (case studies) to
identify the range of REED/LED activity in which
populations are engaged; develop a typology of
REED/LED activities and pro-poor LED orientation crosssectorally
 Extend this initial survey to other areas in the same
country
Proposed in-country activities Il
The design, testing and implementation of
a pilot of the Rural Economic and
Enterprise Development framework in
Bangladesh and South Africa.
Knowledge to be gained
 Better understanding of current state of knowledge
relating to REED/LED in South Africa and Bangladesh
 Improved understanding of primary and secondary
stakeholder perceptions of REED/LED and its growth
potential,
 Qualitative and quantitative information on types of
REED/LED, and their importance to the poor
 Information on the impact of sectoral policy frameworks
on pro-poor LED (housing etc)
 Qualitative and quantitative information on the factors
that constrain people’s access to employment and SME
development.
Thanks for your attention!
The reports this presentation is based on are
available at:
The Natural Resources Institute website
http://www.nri.org/projects/reed
Taking the REED research forward
 Time frame: project due to complete research in January 2006
 Identify partners (NGO, government, academia, donor etc)
 Identify opportunities for joint collaboration with existing
programmes/ project at macro, micro or meso levels.
 Efforts should build on practical fieldwork & existing data/ case
study material
 Launch in-country REED/LED research in Bangladesh through
an inception workshop February 2005
 Participate in co-financed NRI-GTZ REED international
conference, Sri Lanka June 2005
 Invite current workshop participants to lessons learned
workshop/event at the end of the in-country research November
2005
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