Local Economic Development

Part 1: Introduction of VNG International

by Chris van HemertCountry Programme DirectorCountry Programme Director

Background

International Cooperation Agency of the Association of Netherlands Municipalities

Association of Netherlands Municipalities (VNG):• 1912: Established by 28 municipalities• 1950: All Dutch municipalities are voluntary members• Lobby & advocacy

(e g government Parliament trade unions civil(e.g. government, Parliament, trade unions, civil society)

• Service provision• Platform for exchange

Worldwide network of local government organisationsg g

• VNG International established in 1993 inVNG International established in 1993 in response to worldwide requests for VNG’s expertise and experience

• United Cities and Local Governments (UCLG) d C il f E M i i liti dand Council of European Municipalities and

Regions (CEMR) Chair of Committee on Decentralised Cooperation and Chair of Committee on Decentralised Cooperation and

City Diplomacy; Chair of Capacity and Institution Building

Working GroupWorking Group

Mission

‘Committed to strengthening democratic local governmentdemocratic local government worldwide’

Organisation

• Headquarters in The Hague• Project offices in target countries• Local project staff• Daughter organisations in:

o Czech Republic (MEPCO)o Czech Republic (MEPCO)

o South Africa (CMRA)

o Mexico (PROLOCAL)o Mexico (PROLOCAL)

o Tunisia (CILG)

The Hague Academy for Local Governance• The Hague Academy for Local Governance

Areas of Expertise

Decentralisation & Intergovernmental Relations• Decentralisation & Intergovernmental Relations

• Management & Finance

• International Cooperation

• Infrastructure & Services

• Association Capacity Buildingssoc at o Capac ty u d g

• Conflict Prevention, Peace Building & Post

Conflict Reconstruction

Target Group

With a ‘governance’ approach, focus on:• Local governments (staff and politicians)

• Local government associations (leadership and staff)

• Local government training institutions

• Ministries of Local Government, line ministries

• Decentralisation task forces in central government institutions

St ff f bil t l d ltil t l d• Staff of bilateral and multilateral donors, development organisations

Our Approach

• Tailored to the specific needs, context and counterpartscounterparts

• Practical local government experience• Three interrelated levels: individualThree interrelated levels: individual,

organisational, institutional• Colleague-to-colleague cooperation method

Products & Services

• Project management

• Grants administration / Funds management

Ad isor ser ices / Cons ltanc• Advisory services / Consultancy

• Trainings and short coursesg

• Study tours / internships

• Project formulation, monitoring and evaluation

• Policy research / Benchmarking

Where is VNG active

Active in over 45 countriesActive in over 45 countries

Past activities of VNG in Palestine

• 1996 – 2004 Establishment of and support to the Association ofEstablishment of and support to the Association of Palestinian Local Authorities (APLA)

• 2003 – 2012Municipal Alliance for Peace in the Middle East (MAP) at the request of APLA and Union of Israeli Local Authorities (ULAI) to support cooperation betweenAuthorities (ULAI) to support cooperation between Palestinian and Israeli municipalities

• 2007 – 2011LOGO South Programme, predecessor of LGCP

• 2012 – 2012 P f l ti f B l i D l tProgramme formulation for Belgian Development Agency (BTC) on regeneration of historical centres

Local Government Capacity Programme (LGCP)g ( )

• Objective: “Capacity of local governments and local government associations is developed”government associations is developed

• Funded by the Dutch Governmenty

• Individual country programmes: Benin, Burundi, Ghana, Nicaragua, Rwanda, South Africa, South Sudan, Uganda, and Palestinian Territory.

• LGCP objective in Palestinian Territory: “Increased capacity of Palestinian municipalities to enhance, organise and institutionalise Local Economic Development”

How is LGCP implemented?

Programme formulationg• Each country programme developed by mixed

team of national and international experts

Capacity building • Experts

(e.g. local government officials, private sector professionals, VNG staff, external experts)

• Study visits• Coaching & mentoring• Workshops & trainings

Part 2Part 2Local Government Capacity

Programme (LGCP) and Local Economic Developmentp

by Paul Muntersby au u te sConsultant for VNG

LGCP theme

Core theme is: “Local Economic Development”

- The National Development Plan 2011-13 focuses on the private sector to induce the creation of jobson the private sector to induce the creation of jobs and the education system for a vibrant knowledge-based economy.

- Strengthened municipal capacity will contribute to ti bli i t f icreating an enabling environment for economic

development and food security

Aim of Local Economic Development

L l E i D l t• Local Economic Development

Local = “Round here”- Local = Round here- Economic = “Food on the table”- Development = “More and better”Development More and better

“How we provide more and better food round here, especially for those who need it most”

Approach LED

It is a process by which public business and nonIt is a process by which public, business and non-government sector partners work collectively to create better conditions for economic growth andcreate better conditions for economic growth and employment generation.

Swinburg, Goga and Murphy, Local Economic Development: A Primer Developing and Implementing Local Economic Development Strategies and Action Plans (2006)

Properties of LED

• Mobilizing different partners in a local area • Working together using local resources

N i l d l• No single model• Based on local needs and circumstances. • Create an enabling environment• Create an enabling environment • Equitable and balanced economic growth • Pro-poor and inclusivePro poor and inclusive

(2011 Cardiff Consensus on LED)( )

Roles of Local Governments

• Service provider: traditional role including capital investment

• Regulator: regulate the actions of others to ensure a common good g

• Catalyst: create conducive environment • Entrepreneur: engage in investment attraction• Entrepreneur: engage in investment attraction,

place marketing and joint ventures

Example of Tasks

Task Local Government

Conditions for LED Stimulation of LED

Land d i i t ti

Recording property provides security of hi

Recording properties needed for d l t l d t i t dadministration ownership development plans and to issue tenders

Legislation Efficient authorization of licenses and permits influences business climate

Compliance to and transparency of tender procedures

Public register Needed for adequate planning and for Necessary for development plans andPublic register Needed for adequate planning and for valid prognosis

Necessary for development plans and award tenders to businesses

Absence of corruption

Increase safety for investments and optimal allocation of resources

Secures safety to private business and /or costs

Development Plan

Provides security for investors and brings interconnected functions together

Needed before a development plan can be implemented, investments will be done and tenders will be issued

Physical Allow for transportation of people and Public private partnerships and tenders infrastructure goods, drinking water, water disposal,

electricity, electronic networks, etc.for private businesses

Land Policy Allows for obtaining land properties and expropriation

Buying and selling land supports implementation of development plans

Service Delivery Collection and disposal of waste in relation to development of tourism, etc.

Public private partnerships

LGCP Objectivej

Increased capacity of selected Palestinian i i liti t h i dmunicipalities to enhance, organise and

institutionalise Local Economic Development

Implementing partner:M i i l D l d L di F d (MDLF)• Municipal Development and Lending Fund (MDLF)

Result 1

Demonstrated commitment to improve Local Economic Development services in selectedEconomic Development services in selected municipalities

Selected municipalities have identified key LED priorities and related services in a participatory manner in alignment with their Strategic Development andalignment with their Strategic Development and Investment Plans (SDIPs)

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Result 2

Increased capability of selected municipalities to institutionalise LED servicesinstitutionalise LED services Selected municipalities have increased capacity to

develop and operationalize LED strategies in line withdevelop and operationalize LED strategies in line with municipal Strategic Development Investment Plans (SDIPs) and on the basis of self-defined LED priorities;

Selected municipalities have increased capacity to develop municipal profiles in line with SDIPs and on the b i f lf d fi d LED i itibasis of self-defined LED priorities.

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Result 3

Increased capability of selected municipalities to promote LED through forming strategic businesspromote LED through forming strategic business alliances Identified and surveyed service needs MSMEsIdentified and surveyed service needs MSMEs

Established multi-stakeholder LED councils

I d i l k h ld l i d Increased capacity to apply stakeholder consultation and community participation methods

I d it t id tif t ti l f t t i Increased capacity to identify potentials for strategic business alliances with stakeholders, e.g. public-private partnerships, inter-municipal cooperation and cross-

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p p p pborder cooperation on LED

Implementation

Municipal Development and Lending Fund (MDLF)(MDLF)• Procurement of the LED Financial Contracts

under the MDLF Grant Allocation Mechanismunder the MDLF Grant Allocation Mechanism

VNG International• Programme design, overall programme

management, programme monitoring and l tiprogramme evaluation

• Technical assistance on Local Economic Development to municipalities

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Development to municipalities

Part 3:Local Economic Development in

PalestinePalestine

Dr Estephan SalamehDr. Estephan Salameh

Part 4: Explanation

LGCP Grant SchemeLGCP Grant Scheme

by Paul Muntersby Paul MuntersConsultant for VNG

Overview of Grant Scheme

• Grant Application Process comprises 4 phases• There are 2 MDP cycles of 18 months• There are 2 MDP cycles of 18 months• In each MDP cycle 6 grants will be awarded (12 in total)• Assessments and evaluation by independent assessorsAssessments and evaluation by independent assessors

and cross-checked by MDLF/LGCP-PT

Phase 1: Call for Concept Notes

• Call for Concept Notes will be issued by MDLF (beginning September)(beginning September)

• Invitation by email and post of all 37 eligible municipalities including:p g

- Concept Note Template (Arabic) next slide- Request for Clarification procedure

D dli f b i i f C t N t- Deadline for submission of Concept Note

• Training of staff of Municipalities involved in writing Concept Note at Regional Seminars (end of August)p g ( g )

• Instructions in a Grant Manual

Concept Note Template

1. Contact Details2 General Information2. General Information3. Problem Analysis4 Stakeholder Consultation4. Stakeholder Consultation5. Intervention Logic:

specific objective, results and key activitiesp j y6. Link with SDIP7. Anticipated employment effect8. Preferential Factors9. Capacity to implement

Phase 2: Long-listing

Administrative check by LGCP PT on• Administrative check by LGCP-PT on completeness of submitted concept notes

• Result:L li t ith i 37 C t N t‒ Long list with maximum 37 Concept Notes

Phase 3: Shortlisting (step 1)

Assessment of the quality of Concept Notes independent assessors- independent assessors

- on predefined assessment criteria

Result step 1: all long-listed Concept Notes are scored along predefined assessment criteria

Phase 3: shortlisting (step 2)

Stratification of Concept Notes into 3 groups based on Municipal sizeMunicipal size

− less than 10.000 inhabitants (max 11)− between 10.000 and 23.000 inhabitants (max 13)− above 23.000 inhabitants (max 13)

R lt t 2 f hResults step 2: for each group − Concept Notes are ranked along their scores− Per group a shortlisted of Concept Notes is made.g p p

Phase 3: Shortlisting (step 3)

Field visits of highest scoring (per group) municipalities by MDLF/ LGCP to perform Organisational Capacity Check:MDLF/ LGCP to perform Organisational Capacity Check:

Key Question 1: To what extent is the Concept Note in balance with the existing organisational capacity:existing organisational capacity:

Key Question 2: To what extent does the Concept Note reflects reality on the ground in the municipality:on the ground in the municipality:

Result: - shortlist of in total between 9 - 11 municipalities (depending on the

number of Concept Notes submitted) - Invitation of shortlisted municipalities to prepare full proposals andInvitation of shortlisted municipalities to prepare full proposals and

provision of training

Phase 4: Final Selection

• Assessment of the quality of Full Proposals− independent assessorsindependent assessors − on predefined assessment criteria

• For each group the two highest ranking Full ProposalsFor each group the two highest ranking Full Proposals will be selected (6 in total)

Result: Six Full Proposals will enter into contract negotiations with MDLF.

Full Proposal Template

1. Contact Details2 G l I f ti2. General Information3. Problem analysis4. Stakeholder Consultation5. Logical Framework6. Project Description7. Activity Planning and Indicative Budget8. Annexes

Next stepse t steps

End of August: Regional Orientation Workshops (NablusEnd of August: Regional Orientation Workshops (Nablus, Ramallah and Hebron) to explain how toprepare a Concept Note, the Concept notetemplate and the Grant Manualtemplate and the Grant Manual.

Important: assign and inform technically competent staffmember(s) to the development of the Concept Note.member(s) to the development of the Concept Note.

Beginning September: Call for Proposals will be issued byMDLF with a timeframe.

Important: free sufficient time for the staff involved to develop the Concept Note. Commitment and support of leadership where neededleadership where needed.