Local Economic Development

Go to Course: https://www.coursera.org/learn/local-economic-development

Introduction

# Course Review and Recommendation: Local Economic Development on Coursera In an era where local economies are increasingly pivotal to regional and national growth, understanding the intricacies of Local Economic Development (LED) is crucial for policy makers, entrepreneurs, and community advocates alike. Coursera offers a comprehensive course titled *Local Economic Development*, which delivers a thorough grounding in the principles, challenges, and strategies for fostering robust local economies. ## Course Overview This aptly designed MOOC explores the coalitions between local governments, businesses, and civil society in their efforts to raise income sustainably and improve the quality of life in specific areas. At its core, LED focuses on creating jobs, securing livelihoods, enhancing infrastructure, and effectively managing local resources. The course is laid out in a user-friendly format, making it accessible to both novices and professionals in the field of economic development. Each week tackles significant topics, fostering a holistic understanding of how local economies can be nurtured and strengthened. ### Key Learning Outcomes Throughout the course, participants will engage with a series of critical questions, including: - What makes economic development excel in certain areas over others? - How does globalization interact with local economic strategies? - What role does decentralization play in local governance and economic growth? - How can local firms foster competitiveness and innovation? - What strategies can support entrepreneurs in developing and sustaining local economies? ## Syllabus Breakdown The syllabus is divided into eight well-structured weeks, each focusing on different aspects of LED: 1. **Introduction to Local Economic Development**: Understanding the foundational concepts of LED and its relevance today. 2. **Globalization**: Analyzing the pressures and opportunities globalization presents to local economies, accentuated by videos from esteemed professors. 3. **Decentralization & Local Responses**: Investigating how responsibilities shift between different levels of governance within local contexts. 4. **Competitiveness**: Delving into what factors contribute to the competitiveness of local firms, exploring innovation and geography's impact. 5. **Entrepreneurship**: A focus on supporting the backbone of local economies — small and medium enterprises and informal economy participants. 6. **Value Chains and Clusters**: Discussing how businesses come together in networks and clusters, playing a role in enhancing local economic synergies. 7. **LED Strategies**: Reviewing different strategies for promoting LED, alongside governance challenges in achieving collaborative regional growth. 8. **Project Week**: A practical application of the learned concepts, enabling participants to develop their own LED strategies. ## Why Take This Course? This course is a treasure trove for anyone interested in economic development. It’s especially beneficial for local government officials, economic development practitioners, and community organizers. The insights from industry-leading professors and real-world examples ensure that learners gain not just theoretical understanding but also practical skills. Importantly, the course encourages critical thinking around the global and local dynamics at play in economic development. ### Overall Impression The *Local Economic Development* course is more than just an academic endeavor; it equips participants with the knowledge and tools necessary to effect change in their communities. The blend of theory, expert perspectives, and practical case studies provides a comprehensive learning experience. ### Recommendation I highly recommend this course to any individual looking to engage with local economies in a meaningful way. Whether you are just starting out in your career, an experienced practitioner, or someone involved in community service, the insights gained here will undoubtedly enhance your understanding and effectiveness in the field of local economic development. To sum up, if you are aiming to make a difference in your community or simply want to deepen your knowledge about local economic dynamics, *Local Economic Development* on Coursera is a worthwhile investment in your education and future.

Syllabus

Introduction to Local Economic Development

This week introduces the “local” in economic development and explains why LED is a particular way of pursuing development. Video 1 reflects on why LED takes place in some areas and not in others. Video 2 identifies the main drivers of local economic development. The videos have been prepared by ISS Emeritus Professor Bert Helmsing.

In this week, you will appreciate the pressures and opportunities posed by globalization on the local level. Globalization is conceived as a phenomenon in two tiers. At one level, infinite flows of information, culture, trade, financial flows, and migrants seem to move in all directions around the planet. At another level, globalization is a much more identifiable phenomenon that occurs within closed networks of cities and regions, in which specific actors exchange goods, services, investments and knowledge. As a result, some regions are included and others are excluded. Video 1 addresses the first tier of globalization and defines it as the combination of four flows: trade, financial flows, migration of workers, and their integration in global value chains. This video is prepared by ISS Professor Irene van Staveren, and is part of the MOOC on Pluralistic Economics. You will get a feel of that MOOC too, which we recommend for those that want to deepen their knowledge on economics. Video 2 explores the second level of globalization and maps global networks of cities and regions. It discusses how being included or excluded in these networks affects local economic development. We called this video The Ties that Bind Us. It is offered by South African IHS Professor Ronald Wall.

In week 1 we identified four drivers that constrain and push local economic development and in week 2 we looked into globalization as one of them. In this week, Bert Helmsing will look into another driver, namely decentralization. The first video defines decentralization as the transfer of responsibilities and resources from central government to local government and also to actors, like private firms and citizens. The second video delves into the ways in which decentralization has changed local governance and how local governments in some countries have assumed responsibilities over local economic development.

In this fourth week, the course elaborates on competitiveness, the third driver that affects local economic development. It discusses the factors that make firms competitive and the role of geography in promoting competitiveness. In the first video Bert Helmsing defines competitiveness and explains how the concept has changed over time, leading to a greater recognition of the importance of space in shaping the competitiveness of firms. The second video discusses innovation, which goes hand in hand with competitiveness. It defines innovation, why it is important, and how to promote innovation in a local economy. The video is prepared by IHS Professor Jan Fransen, specialist on innovation and clusters. The third video introduces the relatively new concept of frugal innovation within the innovation family. Frugal innovations are simple, smart and affordable products, services and systems with low user complexity, high functionality, and high user value for relatively low-income people. The video features ISS Professor Peter Knorringa, director of the Centre for Frugal Innovation in Africa.

In week 5 the course looks into entrepreneurship as a key resource in local economic development. It pays attention mainly at small and medium entrepreneurs, which are normally 90% of the businesses in any region and those in the informal economy, which are 60% to 90% of the local economy in developing countries. This week is prepared by Argentine ISS Professor Georgina Gómez. The first video discusses the meaning of entrepreneurship and why it takes different expressions in developed and developing economies. The second video distinguishes survival from growth oriented entrepreneurs not as two types of entrepreneurs but as different ways of thinking about business. The third video analyses policies to support entrepreneurs and reviews research that shows that it is almost impossible to shift from survival to growth oriented entrepreneurship. The main idea is that if we understand the different types of businesses, we can design policies that more effectively support each type and with more realistic expectations. The fourth video focuses on women entrepreneurship as a first approach to support women in business. About 80% of microentrepreneurs in developing countries are women that raise income to support their families.

Businesses sometimes come together in the local economy and configure agglomerations in which suppliers, workers, competitors, and clients play a role. In the same territory we often find supporting organisations like banks, consultancies, and governmental agencies. The first video, by IHS Professor Jan Fransen, introduces the concept of clusters and presents them as islands of creativity. It also lists some ideas to support the formation of clusters. The second video, by ISS Professor Peter Knorringa, expands the concept of clusters to stable networks where firms buy and sell products globally. We call these arrangements global value chains. The terms and conditions under which local entrepreneurs integrate global value chains are determined by how the value chain is organised and by whom. The third video, by IHS professor Jan Fransen introduces a third concept in the family learning regions, which expands on the other two and brings in elements from innovation (week 3). The video discusses the concept of a learning region as a precondition for local economic development.

The MOOC started by defining local economic development as local actors using local resources to enhance wellbeing in a territory. This week, with videos by ISS professor G. Gómez, poses the dilemma between development from below and development from above and covers some alternatives of LED strategies. The first video gives you an overview of strategies to support LED and of the governance challenges involved in the interrelationships between actors in markets (businesses), state (governmental agencies) and communities (households and various civil society organisations). The second video presents a case of negotiated inclusion in which a farmers’ association in Nicaragua reorganized an agricultural cluster to integrate in the coffee global value chain. The third video discusses the informal economy and how the concept has lately evolved into our understanding of collective action and the social and solidarity economy. The fourth video presents a special case of the social economy in which governance systems and natural resources form social ecological systems. These have been known lately as the organization of the commons.