Accounting for Municipal Economic Development

PART I: INTRODUCTION Decentralisation Paradigms in South East Europe: an Introduction W.Bartlett, S.Malekovic & V.Monastiriotis PART II: DECENTRALISATION AND LOCAL DEVELOPMENT Explaining Puzzles in Local Development and Transformation B.Dallago Less is More: Decentralisation in Croatia and its Impact on Regional Development D.Alibegovic Local Economic Development in Montenegro W.Bartlett & B.Sisevic PART III: DECENTRALISATION IN ETHNICALLY DIVIDED SOCIETIES Decentralisation and Regionalisation in Bosnia and Herzegovina V.Bojicic-Dzelilovic Decentralsation in Kosovo: Furthering National Unity of Ethnic Isolation? L.Burema Decentralisation as an Effective Tool of State-Building? The Cases of Bosnia and Herzegovina and Kosovo L.Srzic PART IV: IMPLEMENTATION DEFICITS - CASE STUDIES Decentralisation and Regional Policy in Eastern Europe: Considerations on Romania and Bulgaria C.Matiuta The Integration of Administrative and Fiscal Decentralisation: The Case of Albania: E.Gjini The Role of the Third Sector in Providing Social Services at the Local Level in Transitional Serbia M.Kolin Does Strategic Planning of Local Economic Development in Vojvodina Municipalities Improve Cooperation between Public and Private Sectors? D.Mijacic Towards Policy Entrepreneurship at Community Level: The Impact of Decentralisation on Local Public Services in Macedonia M.Risteska PART V: SPATIAL INEQUALITIES The Nature of Spatial Inequalities in SEE and the Scope for Decentralised Regional Policy: an Analysis of Bulgaria and Serbia V.Monastiriotis The Long-run Evolution of Regional Inequalities: Evidence from Croatia I.Bicanic & V.Pribicevic

Constitutional and legislative requirements require traditional leaders to be involved in local economic development initiatives. However, there is a growing belief that traditional leadership institutions are not included in government attempts for Local economic development (LED). In most cases, a gap still exists and availing progress reports to the public. The study sought to examine the role and potential influence of traditional leaders in the economic development planning of their local areas to boost rural areas' economies. The study used an exploratory research design to ascertain the level of involvement by the national, provincial, and local governments of traditional leadership in economic development planning for their areas. The design was informed by qualitative methodology, where the researcher interviewed Chiefs and 20 elected community members in the Maphumulo area. This area was chosen because it was easily accessible to the researcher. Data were analyzed by applying qualitative thematic content analysis. The study is envisaged to promote local development by involving traditional institutions in local government planning and budgeting within the Maphumulo area. The findings show that traditional leaders play an advisory role in the municipality and that local LED engagement is made possible by these leaders' participation in these policies. The results highlight the variety of parties participating in LED, including councillors, ward committees, NGOs, government agencies, municipalities, residents, and traditional and religious leaders. The outcomes show that LED participative tactics have a limited amount of effectiveness. Participants lamented corruption and the municipality's delayed reaction. The study also demonstrated the need for institutionalized LED responses that include all relevant parties. Most participants believed the municipality had the key to collaborating with the necessary regional forces to promote LED.

There have been almost no studies on the changes in population and industries or functional changes in economies within the metropolitan areas throughout Japan because of the absence of statistical data based on metropolitan areas. The purpose of this paper, reviewing the above point, is to find the changes in population and industries in the 1960s, and to try to clarify metropolitan dynamics, factors for the dynamics and its mechanism. Criteria for a central city in a metropolitan area and the integration of peripheral areas to a central city are as follows : Central city: a legal city (shi) having 300, 000 inhabitants or more; daytime popu-lation surpassing residential population (1965 census year). Inner zone: shi, town (machi) and village (mura) in which 10 percent or more of the workers living there work in the central city throughout the 1960, 1965 and 1970 census years. Outer zone: shi, machi and mura in which 10 percent or more of the workers living there work in the central city only in the 1970 census year, in other words, peripheral areas integrated recently to the central city. The term a metropolitan peripheral area or a metropolitan suburb mean a total area of both inner zone and outer zone. According to the above criteria, the author delimited 18 metropolitan areas. Among the 18 metropolitan areas, anazawa M. A. and Wakayama M. A. had no outer zone. Objects of analysis are residential population, total employed persons, agriculture, manufacturing, wholesale and retail trade, finance, insurance and real estate, and services. Methods of analysis are (1) location quotient and (2) chaning patterns based on propor-tional changes (chiefly 1960_??_1970) of central cities, inner zones and outer zones to the total population of metropolitan areas and the number of employed persons (at place of work) of each industry. As a preliminary step to the analysis, a hypothetical trend in spatial patterns of population change within a metropolitan area is summurized in Fig. 1. The formula of location quotient (L. Q.) is: _??_ Where Oi is the number of employed persons in industry i in a given area, Op is the number of inhabitants in a given area, Ni is the total number of employed persons in industry i in Japan, and Np is the number of population in Japan. The following general trends became clear after analyzing L. Q. of central cities, inner zones and outer zones for metropolitan areas. 1) Central cities have strengthened the character of place of work, whereas peripheral areas has the character of residence (Table 2) . 2) L. Q. of agriculture in central cities and peripheral areas shows a consistent decrease as the sizes of the central cities become larger (Table 3) . 3) L. Q, of manufacturing in metropolitan areas becomes lower in the order of central city, inner zone and outer zone; and the intrametropolitan equa-lization of manufacturing specialization proceeds with lowering L. Q. for central cities and increasing L. Q. for peripheral areas (Table 4) . 4) In the case of wholesale and retail trades, differences in L. Q. between central cities and peripheral areas are charac-terized by gain in the former's L. Q. and loss in the latter's L. Q. (Table 5). 5) Differ-ences in L. Q. of finance, insurance and real estate between central cities and peripheral areas show the maximum amount among all indices. Despite the fact that the central cities have generally decreased in L. Q. numerically, the substantial function of each central city seems to have declined if a rapid increase in the employed persons within the periph-eral areas of the three super metropolitan areas (Tokyo M. A., Osaka M. A, and Nagoya M. A.) is taken into account (Table 6). 6) Differences in L. Q. for services between central cities and peripheral areas are generally of minimum among all indices (Table 7).

Partnerships between the public sector and private sector are considered to be important foundations for successful local economic development (LED) planning. This article analyses the multiple challenges that need to be addressed in forging viable LED partnerships between the public sector and private sector in South Africa. The findings are examined from a national survey conducted in 2009 with 30 business chamber associations across South Africa. The results point to markedly differing perceptions of the private sector and local government towards LED, questions of trust and mistrust between private sector and the public sector, and highlight the imperative for greater dialogue in order to provide the foundations for local partnerships for promoting LED.

Local economic development (LED) planning is of major policy importance in post-apartheid South Africa. Although issues surrounding LED have attracted considerable policy attention, one neglected theme has been the role of tourism as a lead sector for LED. The aim of this article is to examine the planning and workings of one tourism-led LED initiative in South Africa. The case study is that of the Highlands Meander in Mpumalanga province, where five towns are collaborating in their LED initiatives in order to promote the area's tourism products. A key finding is that this growing tourism initiative is currently not benefiting local black communities. Recommendations are offered for developing a pro-poor tourism initiative.

The paper dials with the results of studying the main components of a process of planning local economic development of the amalgamated territorial communities. Author focuses on current issues facing local governments in implementing an effective policy of local economic development. It substantiates the necessity of forming a Local Economic Development Working Group and points the requirements for its members. Author argues the necessity to diversify a Local Economic Development Working Group by criterion of belonging its members to various categories of local economic development stakeholders. The arguments for involving business and community to the planning process of amalgamated territorial communities’ local economic development identified. The importance to develop an Economic Profile of amalgamated territorial communities as an analytical document defined as well as double meaning of the document for an amalgamated territorial community. The paper defines potential users of economics profile of amalgamated territorial community. Author proposes the structure of an analytical document and determines the requirements for the content of its five sections. Priority tools for activating local economic development of amalgamated territorial communities identified. The general tendencies of choosing the priority instruments of local economic development of amalgamated territorial communities by the members of the working group noted. There are arguments concerning expediency of introducing the priority instruments of local economic development of amalgamated territorial communities from the point of view of the data of the economic profile, in particular there are arguments concerning cooperative movement in agriculture. The priority instrument of local economic development for amalgamated territorial communities with significant recreational potential and poorly equipped tourist infrastructure is determined. Thus, in the process of planning local economic development of the amalgamated territorial communities it is necessary to focus on the following important components: creation Local Economic Development Working Group, drawing up an Economic Profile, choosing the priority instruments of local economic development and justification expediency for their implementation.

Local economic development is the process through which local authorities, together with public organizations, non-governmental sector and enterprises, develop a better business environment. Modern policies of local economic development are taking on an increasingly equal role with the private sector, facilitating its development and management of business. Such policies are often developed in the form of partnerships between the public and private sectors, which aim to support private investment for the benefit of the entire social community.
 Local economic development has been a part of the development policy of Bosnia and Herzegovina for the last ten years. The strategic approach has enabled local communities to enter the reform processes and to adapt their capacities to the demands of the global market from the beginning.
 With the advent of new theoretical approaches, the foundations of the theoretical basis of local economic development were laid. The active role of the local community and the planning of economic development from the local level has enabled a different perspective and approach to the basic strategic directions of development of national economies in developed countries.

Local Economic Development (LED) is a contested concept in southern Africa, and has become synonymous with delivery of generic job-creation projects, often grant-dependent and unsustainable. Municipal LED has followed this pattern in South Africa since 1994, with little lasting success. Each local economy is unique, and has its own problems and opportunities. The ’Plugging the Leaks’ method recognizes that communities themselves know best how money enters and exits their area. By asking people to analyse their local economy as a 'leaky bucket', the method puts control back in the hands of local people, rather than external experts, and allows them to analyse their own local economy to identify gaps and opportunities for enterprise. By better networking and working collectively to improve their local economy, local communities are able to re-circulate cash internally. This circulation of cash is explained as the local multiplier effect in the workshops. A pilot process of running ‘Plugging the Leaks’ workshops in low income communities in South Africa and Namibia revealed that spending choices in these communities are severely limited in a context where there is no effective welfare state. Therefore, empowerment with this method came from the discovery of collective action and networking, rather than from individual spending choices. Local start-up business tends to be limited to survivalist and copy-cat one-person ventures, and are a last resort when formal employment is absent. In this context collective enterprise offers the necessary empowerment for people to attempt financially sustainable ventures that respond to a gap in the local economy. The pilot project is attempting to show that municipal LED staff can play the role of facilitator for initiating the enterprise-identification process and further mobilise state enterprise support agencies around the locus of LED, without crossing the line between facilitation and implementation of ’projects’.

The aim of the present study is to investigate the linkages between local economic development, innovation, and environmental sustainability inside urban areas. Can innovation affect the improvement of the quality of life inside urban areas? This research question comes from the consideration that usually innovation and growth in general are considered sources of conflict in affecting the livability of large cities. The objective of the paper is to design a model — the “SustaIn-Led” - to connect levels of environmental sustainability, quality of life, and economic development inside metropolitan areas, taking into account also innovation processes, activated by the innovation policies and by the knowledge economy. The study takes in consideration the 53 largest United States metropolitan areas with a population over 1 million, with a time series from the years 2000 through 2015. This has been done because of a two-fold reason: (1) the US among high-income countries is the one with the highest number of universities, patents, and citations; (2) several studies have shown that innovation occurs in large cities. The first part of the present study has carried out the identification of the variables to represent and significantly explain the phenomena – local economic development, innovation, and environmental sustainability – linked to the design of the SustaIn-LED model. Environmental sustainability in urban areas in this paper is represented by means of the Air Quality Index (AQI), while the number of workers synthetically quantifies local economic development. Correlation and multiple regression analyses are conducted in order to examine the relationship between the three main indicators. The multiple regressions for the year 2015 produced a low p-value, indicating that the predictors are significant in the regression analysis. Similar results of p-value are shown in all the years from 2000 to 2013. For 2015, the results showed that part of the variance in the measure of total workers of the metropolitan areas could be predicted by measures of innovation and air quality. Higher R² values have been registered for the years from 2000 through 2013. The development of the SustaIn-LED model could be utilized in urban regeneration processes to help in the design of new urban planning policies inside large cities by means of a better comprehension of environmental and economic implications caused by the implementation of innovation policies.

Many small towns in South Africa are experiencing decline and in search of bases for economic revival. Local economic development (LED) planning is providing an impetus for reversing economic decline in some small towns. This article provides a case study of planning for pro-poor LED in Senqu municipality, Eastern Cape Province, one of South Africa’s poorest regions.

No plan for local economic development within the larger metropolitan region of Kolkata can realistically succeed unless based on an understanding of the informal sector and taking account of it in subsequent local development strategy. The objective of this chapter is to provide a detailed look at the state of the informal sector in the larger metropolitan region of Kolkata since 1991. This information would provide a means to understand the impact of economic liberalization on the local economies of the various smaller towns/municipalities that constitute the Kolkata Metropolitan Area (KMA) and to suggest ways to incorporate the informal sector in the growth process. The study is based on aggregate-level secondary data that present trends in growth and structure of the informal sector in the KMA. The study also considers informal manufacturing activities and informal service activities, and highlights ways to include the informal sector in the local economic development process.

This chapter is about the concept of local economic development with focus on some Hungarian examples. We know that local economic development should be realized bottom-up, but sometimes the local population and local businesses face various difficulties while they intend to encourage local developments even if they know the strengths and weaknesses of the settlement/region the best. However, this paper attempts to introduce some concrete examples for local economic development from the Hungarian rural micro-regions, especially from the field of local currencies/complementary money. Such cases may serve as samples for other Central-Eastern-European regions where the bottom-up approach also represents a new direction in economic development strategies and the local population is committed to the development of local economy and society.

Sustainable Local Economic Development in Croatia and the Role of Social Capital

Local economies are key factors for ensuring the sustainable development of regional economies and countries in general, so there is a need to use effective approaches to managing local economies. The purpose of the article was to analyse the use of managerial and functional approaches to manage local economies in Ukraine, Germany, the USA, Poland and China, and to make recommendations for improving the local economy in Ukraine based on this information. The research was carried out using the methods of analysis, synthesis, specification, comparison and generalisation. It was found that the use of a joint management and functional approach to determine the key functions of the local economy and create strategies for their development is the most effective approach. The importance of understanding the peculiarities of the local economy and accounting for local resources, infrastructure and potential for the development of effective development strategies was highlighted. The need to involve local communities and stakeholders in the process of developing and implementing such strategies was emphasised. It was determined that the following things will help improve the economic climate of communities: ensuring sustainable and long-term financing of local economic development programs and projects, active participation and support of local communities and business representatives, development of public-private partnership mechanisms, increasing the level of competence and qualifications local personnel, application of innovative technologies and approaches, development of the system of monitoring and evaluation of results, strengthening of international cooperation. The results of this study can be useful for participants of the local economy, and can also be the basis for future research in the field of local economic development

This article explores the potential and implications of religious tourism in promoting local economic development in Uganda, with particular emphasis on Northern Uganda. The study pursued three main objectives: (i) to investigate the potential of religious tourism sites and shrines in Northern Uganda; (ii) to explore the interconnections between pilgrimage, celebrations, and ceremonies in enhancing local economic development; and (iii) to assess the broader implications of religious tourism for local economic development. The study highlights the limited knowledge on the potential and the contribution of religious tourism to local economic development. To address this gap, it employed a theoretical framework informed by the push-pull factor theory and Community-driven development theory. A multi-sited case study design was adopted to provide a comprehensive understanding of the potential, interconnection, and contributions of religious tourism to local economic development. Data were collected through narratives, observations, and documentary reviews, and were analysed using narrative and thematic approaches. Preliminary findings revealed that religious tourism holds considerable potential for stimulating local economic development in the region, provided that its opportunities are strategically harnessed. Furthermore, the findings indicate that there are interconnections between pilgrimage, celebrations and ceremonies as well as debatable implications of religious tourism to local economic development. The findings carry important implications for development planning and community engagement. It is anticipated that this study will contribute to bridging the existing knowledge gap by recommending a systematic mapping and development of both existing and potential religious tourism sites and shrines across the country. Remedies lie in looking at the religion tourism as a resource for local economic not only for spirituality anchored on a proactive policy, Community-focused development planning, based on bottom-up intervention strategies.