Local economic development LED

What is local economic development?

The purpose of local economic development (LED) is to build up the economic capacity of a local area in order to improve its economic future and the quality of life for all. It is a process by which public, business, and non-governmental sector partners work collectively to create better conditions for economic growth and employment generation. (World Bank)

In short, local economic development is a strategically planned, locally driven partnership approach to enabling employment growth, poverty reduction and quality of life gains through improved local economic governance.

Why do local economic development?

Local Economic Development (LED) seeks to strengthen local systems so the actors in a region or country can take their development into their own hands. In this sense, it is like Local Governance approaches. At the same time, its central aim is to improve the competitiveness of the private sector, foster economic development in a territory, and generate sustainable economic wellbeing. LED is a way to strengthen economic, social, and political institutions from the bottom up.

Economic development requires a networked approach to governance, in which multiple actors come together in a dynamic and continuous collaborative process of exploration, priority setting, implementation and adjustment.

LED is also about various local stakeholders learning about each other’s existence and goals, learning about the structure and dynamic patterns of the local economy, learning about opportunities to stimulate upgrading in the local economy, and the tools necessary to do that. And very importantly, LED is about various public, private, and civil society actors learning to collaborate.

Key documents