Local Economic Development (LED)

Flashcards on Local Economic Development (LED)

Local Economic Development (LED)

A multi-dimensional and multi-sectoral process using local resources and ideas to stimulate local economies, respond to economic changes, create jobs, and alleviate poverty.

LED Concept

A continuous process responding to low economic growth and high unemployment by promoting local approaches that addresses local needs and conditions through local ownership.

LED and Vulnerable Groups

LED empowers vulnerable, marginalised, and poor sections of local communities to raise sufficient incomes to meet their basic needs and aspirations.

LED and Local Government

A locally-owned, bottom-up process where local stakeholders collaborate to support sustainable economic development pursued by the local government.

LED and Community Improvement

Communities continually improving their investment climate and business environment to enhance their competitiveness, retain jobs, and improve incomes.

Essential Elements of LED

Preserving and increasing a community’s standard of living through human and physical development based on equity, equality, and sustainability.

Economic Development (Minimum Standard of Living)

Establishes a minimum standard of living for all and increases over time, translating to job creation that provides living wages.

Economic Development (Reduces Inequality)

Reduces inequality between demographic groups (age, gender, race, ethnicity) as well as spatially defined groups.

Economic Development (Sustainable Resource Use)

Promotes and encourages sustainable resource use and production, avoiding inequality between present and future generations.

LED Aims

To encourage participation and consensus building to determine economic and social welfare initiatives for local communities, it also aims at improving the quality of life.

LED Principles

Job creation and poverty alleviation must be prioritised by LED strategies which should target previously disadvantaged people, marginalised communities and geographical regions, black economic empowerment enterprises and SMMEs.

LED Goal

To build the economic capacity of a local area in order to improve its economic future and the quality of life for all, eradicating poverty and promoting equality at both rural and urban areas.

LED Strategies

Promote local dialogue, enable people to be more proactive, make local institutions better contribute to development, and make economic activity dependent on the comparative advantages of a specific territory.

Importance of LED

Boost economic competitiveness, drive long-term, eco-friendly growth, and make sure that development benefits all members of the community.