Local development . It is based on the identification and use of the endogenous resources and potential of a community , neighborhood or city . Endogenous potentialities of each territory are considered economic and non-economic factors, among the latter: social , cultural , historical, institutional, landscape resources , etc. All also decisive factors in the local economic development process.
Summary
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- 1 Definition
- 2 Elements that characterize local development
- 3 Main dimensions in the local development process
- 1 Development processes
- 4 Action plan for local development
- 5 Future perspectives: Social Economy and Local Development
- 6 Sources
Definition
In this perspective, local economic development can be defined as the process of transformation of the local economy and society , aimed at overcoming existing difficulties and challenges, which seeks to improve the living conditions of its population through determined and concerted action. between the different local, public and private socio-economic agents, for the most efficient and sustainable use of existing endogenous resources, through the promotion of local entrepreneurial capacities and the creation of an innovative environment in the territory. This approach also considers the importance of social capital and cooperation links with external agents to capture human, technical and monetary resources, among others, that contribute to the local development strategy.
Elements that characterize local development
- Its local character, since it is limited to a perfectly defined territory, especially municipal and, above all, subregional.
- Its social dimension, given that its actions are preferably aimed at creating jobs, prioritizing personal development.
- Its institutional dimension, being controlled by the Public Administration (central government) to ensure the coordination of the agents involved.
- Its economic dimension, since the initiatives carried out are carried out in a profitable and efficient manner.
- Its cooperative dimension, because given the magnitude of the process it includes, requires the collaboration and involvement of multiple organizations and groups.
- Its instrumental dimension, which facilitates the resolution of design and management problems that may arise (creation of development aid).
Main dimensions in the local development process
In the local development process, three main dimensions can be distinguished:
- An economic dimension.
- Another socio-cultural.
- And a third political-administrative or territorial policy dimension.
It is worth highlighting the importance, within local development, of its social character, which makes it possible to speak of “local and social development”, emphasizing the importance of human resources as a primary element in its development.
Development processes
- Diffuse development or industrialization model followed by countries such as Spainor Italy
- Voluntary or rural development.
- Social development, aimed at supporting disadvantaged groups and groups.
Local development action plan
There are many actions that can be taken to stimulate development, although they can be located in three main areas:
- The area itself.
- Local businesses.
- Local people.
The first are related to infrastructure in its broadest sense, the second to aid for innovation, the provision of advisory services or the provision of investment funds, and the third to aid for the unemployed or training programs specific.
The development of an action plan that establishes the concrete actions that must be taken to achieve the objectives of the strategy can be very useful. In general, the main actions undertaken vary very little: support for companies, restructuring, diversification and industrial growth, infrastructure development, contribution and improvement of land and buildings, improvement of the environment , promotion of the area and encouragement to external investments, assistance to the unemployed or analysis of qualifications and training.
It must be taken into account that the actions must be designed to solve four different types of problems: problems related to the financing of local companies, as a consequence of the increase in production costs (labor and tax), of the difficulties of access to financial markets and the inadequacy of aid policies; deficiencies in the provision of support services for production and marketing; restrictions on market accessibility as a result of insufficient communications and service infrastructures; and impediments to the emergence and expansion of local companies, given the existence of an economic and social environment that does not encourage local entrepreneurial capacity.
Future prospects: Social Economy and Local Development
Local development strategies will continue to be implemented in the future, with increasing assiduity, in addition to consolidating an important market share in the field of social insertion through work. Therefore, there are really positive expectations for the future, both from an applied point of view and from the field of business and academic research.
The companies of the Social Economy can, within their scope of action, favor local development. Development processes in the form of cooperative enterprises, associations, etc. they play an increasingly important role for many rural and urban municipalities, creating a new spirit of hope for the future and personal esteem.
