Local Economic Development (LED) is a strategy for promoting local economies as a way to fight poverty. LED programs often include elements of service market development and/or value chain development and vice versa. Urbanisation has important implications for Private Sector Development. Cluster development refers to specific kind of LED strategies which focus on encouraging and supporting sectoral and geographic agglomerations of inter-connected companies, services and institutions.
- Towards an urban world: What does it mean for Private Sector Development? DCED Synthesis Note, 2019. Defines key terms, considers urbanisation as a trend, and explores the implications for LED, Business Environment Reform, Market Systems Development and Private Sector Engagement.
- Supporting Local and Regional Business Environment Reforms, DCED, 2016:
This Annex to the DCED’s Practical Guidance on Supporting Business Environment Reform (BER), focuses how donor and development agencies can support Business Environment Reforms at local and regional levels.
- A Review of Donor Agency Support for Regional and Local Business Environment Reform, DCED, 2016. This Paper reviews donor and development agency experiences in supporting BER at regional (i.e., supra-national territories) and local (i.e., sub-national territories) levels. It identifies the advantages and disadvantages of such approaches, as well as identifying good practices and lessons learnt.
Overview documents: LED and Cluster promotion
- An Overview: Local Economic Development, SDC 2018
- Linkages to the Resource Sector. The Role of Companies, Government and International Development Cooperation, GIZ, 2016.
- LED Investment Actions: A Guidance Note for Local Government, Emma Wadi Hobson, 2011.
- Competitive cities in the 21st century: Cluster-Based Local Economic Development, ADB, 2011.
- Industrial Clusters for Micro, Small and Medium Enterprise Development in Africa: From survival to growth, The World Bank, 2011.
Reviews of experience and evidence
- Synthesis of e-discussion on Local Economic Development, SDC May 2018
- When Agglomeration Theory meets Development Reality. Preliminary Lessons from Twenty World Bank Projects, Center for Global Development, 2015.
- Learning to compete: Evidence paper series on understanding industrial clusters, Brookings, 2014.
- What are the features of urbanisation and cities that promote productivity, employment and salaries? EPS PEAKS, 2014.
- Productivity-enhancing manufacturing clusters: Evidence from Vietnam, UNU-WIDER Working Paper, 2014.
- Clustering, Competition and Spillover Effects; Evidence from Cambodia, UNU-WIDER Working Paper, 2014.
- Agglomeration economies and their effects on technical efficiency of manufacturing firms: Evidence from Pakistan, International Growth Centre Working Paper, 2013.
LED/ Cluster Programmes and case studies
- Cluster and Network Development Case Studies, UNIDO, 2008-2012.
- Case studies of Local Economic Development, The World Bank.
- Managing Informality: Local government practices and approaches towards the informal economy – Learning examples from five African countries, SA LED Network and LEDNA, 2012.
- Radio programmes for Small Businesses. Using Media for Local Economic Development in Ghana, GIZ, 2012.
- Mesopartner LED and cluster promotion case studies (podcasts)
Methodologies, tools and training on LED and Cluster Promotion
- The impact evaluation of cluster development programmes. Methods and practices, IADB, 2016.
- Local and Regional Economic Development Toolkit, Mesopartner, 2014.
- Effective Monitoring for Pro-poor Cluster Development: Guidelines for Practitioners, UNIDO, 2012.
- Clusters for Competitiveness. A practical guide and policy implications for developing cluster initiatives, The World Bank, 2009.