1. Rationale for Local and Regional Economic Development

Описание: 1. Rationale for Local and Regional Economic Development
Part of the Foundation Course on Local and Regional Economic Development
Introducing Local and Regional Economic Development (LRED). It is a collaborative, bottom-up process involving local councils, community organisations, and the private sector to create jobs, generate wealth, and improve quality of life within specific geographical areas. It recognises and leverages each locality's unique assets, challenges, and opportunities, distinguishing it from top-down national or regional strategies.
Key Characteristics:
● Geographically Specific: Strategies are tailored to particular towns, cities, districts, or neighbourhoods.
● Collaborative and Participatory: Involves diverse stakeholders including local authorities, businesses, education, and community groups.
● Goal-Oriented: Aims to create jobs, increase local income, diversify economies, improve productivity, enhance quality of life, and address specific challenges.
● Asset-Based: Identifies and leverages human capital, infrastructure, financial resources, natural assets, cultural heritage, and institutional strengths.
● Strategic and Action-Oriented: Involves data analysis, planning, implementation, and continuous monitoring.
Why Local and Regional Economic Development Matters
Place-based policies are gaining renewed interest due to persistent underperformance in some areas and the risks associated with asymmetric transitions and shocks. The OECD's 2025 guidance emphasises that while macrostructural policies are important, complementary place-based policies are essential to enhance development quality, mobilise assets efficiently, and prevent regions from being left behind. These policies address spatially differentiated market failures and improve local public good provision, with objectives tied to productivity, sustainability, and inclusion.