Stimulating Local and Regional Stimulating Local and Regional Economic Development: Economic Development: Issues in Issues in managing the local development managing the local development processprocess

Jörg Meyer-Stamer

Typical life-lines of local Typical life-lines of local development processesdevelopment processes

time

Start-upStrategy +planning

Imple-mentation

Consolidation

Main messages regarding process Main messages regarding process managementmanagement Don’t spend too much time planning without implementation Start early with projects

– which are easy to implement and face little risk of failure– with a visible impact = motivate everybody to continue

Don’t think that the process is a sequence! – It’s iterative: planning, action, evaluation / feedback, more

planning, more action, etc. – It’s never finished!

Don’t be surprised if people drop out of the process - it’s normal Include those people who run the projects Expect to deal with a number of dilemmas

The main dilemmas in network The main dilemmas in network managementmanagement

The ownership dilemmaThe self-organisation dilemmaThe collective conservatism dilemmaThe communication dilemmaThe power dilemmaThe legitimacy dilemma

The ownership dilemmaThe ownership dilemma

Tasks have to be taken care of Some people have to take

responsibility They become promoters Project promoters “own” their

project Barriers emerge between

promoters and other people involved

Isolated core group, frustrated periphery

> Observe the emergence of the dilemma

> Reflect about opportunities for action

> Keep areas of responsibility flexible

> Redistribute responsibilities, especially if individuals become overburdened

The self-organisation dilemmaThe self-organisation dilemma

As a network of actors emerges, uncoordinated work processes evolve

Increasing necessity of communication and coordination

Crisis of complexity Centralisation of steering Trade-off between centralisation

and flexibility / responsiveness

> Define responsibilities (temporary order)

> Create a platform for management (permanent order)

> Balance order and disorder

The collective conservatism The collective conservatism dilemmadilemma

Shared problem-definition within sub-group

Lack of understanding between in-group and out-group

Diverging perceptions between sub-group and environment

Trade-off between effective organisation of work and loss of opportunities for external cooperation

> Make implicit routines explicit

> Reflect on and question routines

> Seek communication with environment

The communication dilemmaThe communication dilemma

Petty conflicts make cooperation difficult

Underlying personal conflicts escalate

Ignore conflicts: – Tension calms down -

or process calms down Deal with conflicts:

– Conflict is solved - or escalates

> Analyse conflicts> Ignore conflicts> Mediate conflicts> “Generate” conflict

The power dilemmaThe power dilemma

Initially, differences in power are ignored

As work proceeds, imbalances in the distribution of resources (power, money, information, knowledge) become relevant

Chicken-pig-problem Overall development goals

cannot be achieved if weak actors are marginalised

> Be aware of power differences

> Make particular interests explicit

> Empower the less powerful

> Define rules and procedures

The legitimacy dilemmaThe legitimacy dilemma

Persons from different organisations meet at the stakeholders’ forum

Organisations do not necessarily have clear internal decision-making procedures, mandate of representative may be unclear

Forum’s decisions are relevant to the respective organisations

Problems arise if organisation’s members disagree with forum’s decision

Decision-making impasse, or members quit participating

> Clarify role of members: as “representatives” or as “person”

> Clarify organisations’ interests and goals

ConclusionConclusion

Local and regional development isLocal and regional development is

an iterative process of diagnostic, learning, implementing, learning, and evaluating

a process which should be based on partnerships between key stakeholders

a process which should be based on feasible projects, specific objectives, and milestones

based on a combination of knowledge of concepts and methodologies, international experiences, and the local realities, potentials and obstacles

a process which never ends! Except if there are no quick results, in which

case it tends to fizzle out!!!

Thank you for your attention!Thank you for your attention!

Homepage: www.paca-online.deHomepage: www.paca-online.deE-Mail: jorg@meyer-stamer.deE-Mail: jorg@meyer-stamer.de