Draft. December 8, 2011

Transcription

1 Generating Knowledge Products to Support the Implementation and Dissemination of LED Policies throughout Latin America and the Caribbean (LAC) Joint Research Initiative Berkeley- Orkestra- FOMIN Proposed Methodology for Case Studies on Local Governance 1 Draft December 8, This methodology builds on the following documents: proposal to the FOMIN Productivity Fund Generating knowledge products to support the implementation and dissemination of LED policies throughout LAC ; Diseño y trasferencia de metodología para el levantamiento de casos prácticos en desarrollo económico local by K. Fernandez- Stark and G. Gereffi (Duke University); Pautas para la elaboración de estudios de caso (IDB, April 2011); Coordinación institucional y la colaboración de los sectores publico y privado: términos de referencia para un estudio de caso sobre la cooperación de actores- múltiples by G. Casaburi; and Learning from the local: governance of networks for innovation in the Basque country by M. J. Aranguren, M. Larrea, ad J. Wilson (European Planning Studies Col. 18, No. 1, January 2010). In addition, the document was revised by researchers and experts during a meeting held at the IDB on December 1 and 2, 2011.

2 Table of contents I. BACKGROUND...3 II. PREPARATION OF CASE STUDIES CASE SELECTION CRITERIA CASE STUDY DESIGN...4 III. STRUCTURE OF CASE STUDIES ON LOCAL GOVERNANCE DESCRIPTION OF THE EVOLUTION OF THE REGION, THE CLUSTER (IF THERE IS), AND OF THE LED AGENCY (IF THERE IS ONE) DESCRIPTION OF THE DYNAMICS OF THE REGIONAL CONTEXT AND ROLE OF KEY ACTORS DESCRIPTION AND ANALYSIS OF BUSINESS SECTOR DESCRIPTION AND ANALYSIS OF THE PUBLIC SECTOR DESCRIPTION AND ANALYSIS OF THE LEVEL OF INFRASTRUCTURE AND THE LEVEL OF HUMAN AND SOCIAL DEVELOPMENT ANALYSIS OF THE LOCAL GOVERNANCE (ALSO CALLED PUBLIC- PRIVATE MANAGEMENT MODEL, PPMM) ASSESSMENT OF THE RELEVANCE OF THE ENVIRONMENT IN THE DEVELOPMENT STRATEGY OF THE REGION.ERROR! BOOKMARK NOT DEFINED. 4. DETAILED ANALYSIS OF SOME OF THE CONCRETE INITIATIVES/ACTIONS UNDERTAKEN DURING THE FOMIN PROJECT THAT PROVED TO BE CRITICAL FOR THE SUCCESS/FAILURE AND EVOLUTION OF THE REGION...ERROR! BOOKMARK NOT DEFINED. 5. CONCLUSIONS...8 IV. CROSS- ANALYSIS OF CASE STUDIES PUTTING IT ALL TOGETHER: IDENTIFICATION OF COMMON PATTERNS AND ELEMENTS FOR SUCCESS KNOWLEDGE PRODUCTS...9 2

3 I. Background The MIF Local Economic Development (LED) Agenda aims to expand the adoption of local economic development policies and strategies based on public- private interaction and geared to economic, social, and environmental sustainability. These policies foster micro, small and medium enterprise (MSME) development by strengthening the economic competitiveness factors in the territories in which they operate. Currently in the third stage of the concept maturity curve, this Agenda includes 30 projects (this includes 6 projects to be approved in 2011). One of the key components of the projects that FOMIN implements to foster LED is the creation of a local institutional arrangement that is responsible for the design and implementation of LED strategies and action plans. These institutional arrangements may take different shapes and functions, and ultimately lead to different types of outcomes. The main objective of these case studies is to generate knowledge products on how public- private management models (PPMM) 2 emerge around LED and what role these PPMM play in guiding change (change in policies, programs, trajectories, outcomes, etc.), filling a knowledge gap that is affecting the implementation and dissemination of LED policies throughout Latin America and the Caribbean (LAC). II. Preparation of Case Studies This section focuses on the preparation work that has to happen in order to develop the case studies. First, it provides criteria for the selection of the experiences that will be the object of the case studies. Second, it provides elements for the design of the case studies, including objective, research questions, unit of analysis, and tools for data collection and analysis. 1. Case Selection Criteria 1. Public- private interaction Number of actors participating in local committee/forum/agency Diversity and representativeness of actors Relevance of actors involved in the program 2. Construction of a LED strategy Number and typology of initiatives included in the strategy Funding of the initiatives, taking into account whether there is resource pooling Whether the PPMM was able to influence a policy change at the regional or national level 3. Formalization of the public- private interaction Type of public- private management model (PPMM) adopted (in order to select cases that offer a variation in the typology of PPMM) Stage in the process of PPMM creation: incipient vs. mature PPMM Whether the PPMM obtained legal recognition Typology of public and private actors represented in the PPMM 3

4 4. Collective goods Range of collective goods generated in the region Number and range of actors involved in the formation of collective goods Type of management arrangements adopted for the collective goods 5. Characteristics of the public sector involved What level of public sector is involved in the PPMM: municipal government, Group of municipalities (like a mancomunidad), provincial/regional government, national government 2. Case Study Design Objective: The main objective of these case studies is to generate knowledge products on how public- private management models (PPMM) emerge around LED and what role these PPMM play in guiding changes in LED (change in policies, programs, trajectories, outcomes, etc.). This objective will be reached using the experience of the projects included in FOMIN s LED Agenda as well as by drawing lessons from other experiences (for example, from Europe and Asia). The knowledge generated through the research will be disseminated to practitioners and policymakers, and will help build methodologies that will guide public and private stakeholders in Latin American countries in the design and implementation of LED strategies. Research questions: Broadly speaking, what we want to find out through the case study is: What worked well and why? What could have worked better and why? More specific research questions for these case studies are listed in the following table. Table 1. Research Questions Research questions for case studies on local governance 3 1. What are the ranges and types of PPM that are pertinent for LED strategies? The typology would emerge from a mixture of existing literature and FOMIN cases. 2. Which are the ex- ante factors that have influenced the particular PPM structure under consideration? In particular, the context and the specific objectives of the LED strategy should be addressed, as well as the relationships existing among the firms (and other stakeholders). 3. What other key factors have motivated that particular PPM structure? What are the mechanisms that lead to its formation? 4. What are the incentives for the actors to participate and the barriers/obstacles they have encountered in the different stages (with a particular emphasis on the initial ones)? What are the strategies that are pursued at the local level in order to reach a more formal governance structure? 5. What are the outcomes that have been achieved and what is the relationship between them and the PPM structure under analysis? 6. How can the sustainability of collective action be reached? What are the factors that 3 In this document, the expression governance (or local governance) is used as synonym of public- private management model for LED (PPMM). 4

5 threaten it and how can they be avoided? Research questions for case studies on local governance where environmental issues are central (in addition to previous questions) 1. How did the PPM structure incorporate the sustainable use of natural resources for productive ends in its strategy? 2. Who were the new players in the local governance? 3. How did the incorporation of the management of natural resources influence the local governance? Unit of Analysis (what or who will be investigated ): in this case, it is a particular public- private initiative that could be more or less formalized. Background and context: before getting into the analysis of the specific case, the case study will include a review of existing literature on the topic in order to contrast it against the case studies to be developed, and the conceptualization and definition of the expression territorial governance (commonly used in FOMIN projects) to effectively convey a wide range of public- private management models for LED (PPMM). Methods and tools of data collection: these are defined based on the type of research questions that the case study aims at addressing. In general, these will include document review, fieldwork to collect qualitative and quantitative data about the case under analysis, interviews with IDB/FOMIN staff and consultants involved in the projects (when applicable). Methods of analysis and interpretation of data: qualitative and quantitative analysis will be used for each case study, applying a mixed method analysis whenever possible. Cross- case analysis of case studies: identify common patterns and draw conclusions and recommendations. III. Structure of Case Studies on Local Governance What follows is a schematic description of what could be the areas of research that should be covered by each case study. These are guidelines that can orient the research as well as the outline of each case study. 1. Description of the evolution of the region, the cluster (if there is), and of the LED agency (if there is one) Place the particular case and/or the FOMIN project within their historical context and long- term perspective: look at processes and analyze the project as part of a longer process. Within this narrative description, it is important to highlight factors of the FOMIN project that had some influence/impact on the region/cluster/agency. What are the competitive and comparative advantages of the region? Are there obstacles that hamper gaining more benefits from competitive and comparative advantages? In order to give a complete picture of the evolution of the region/cluster, provide information based on the following sub- sections: 5

6 1.1. Description of the dynamics of the regional context and role of key actors General information about the region: size, urban area vs. rural area, population trend, etc. See table below for an example of data to collect. This is a minimum set of basic data that is necessary in order to put each specific case study in context and provide elements for comparisons across cases. Demographic Variables Total Population Population growth (%) Total area (Km 2 ) Urban area (% of total) Rural area (%of total) Table 2. Demographic variables Country Region Country Region Country Region Describe the key economic sectors in the region that are linked to the main sector under study. Who are the major economic players in the region? Carry out a SWOT analysis of the region (optional) Description and analysis of business sector What is the firm structure existing in the region (small and medium, large firms, headquarters or branches of multinational companies, cooperatives, informal sector)? What are the main/leader companies in the region and in what sectors? What are the power dynamics within the business sector? Are there any support programs for the productive sector, and in particular for SMEs? (if relevant) Is access to finance available for business (specifying whether there are differences for SMEs and for large firms)? (if relevant) Are there any relevant programs and actors in the field of workforce training (such as vocational schools) and R&D for innovation? 1.3. Description and analysis of the public sector Describe the type of government organization in the territory. Identify the main players in the public sector that operated in the territory. Provide a brief description of the level of decentralization (including the existence of particular laws for mancomunidades ) Identify the impact of the political cycle / political turnover (if relevant) 1.4. Description and analysis of the level of infrastructure and the level of human and social development (if data is available; the relevant region should be clearly defined in each case) Briefly describe the existence and quality level of the following: Transportation (airports, harbors, bus and train terminals) Telecommunication (landlines, cell phones, internet) Energy (gas, oil, hydroelectric, etc.) Schools, hospitals Provide a brief analysis of: Level of education in the region 6

7 Level of education of the workforce (in the main economic sectors) Main needs for human capital development Evolution of employment and unemployment Evolution of poverty level in the region Description of main health issues in the region Variables Employment Total population employed Table 3. Example of employment, poverty, and education variables Participation of women in the workforce (%) Unemployment (%) Poverty Population below country poverty line (thousands) Population below country poverty line (%total population) GNI index Education R&D as % of GDP Education as % of GDP Literacy rate (%) Population with primary school degree (%) Population with secondary school degree (%) Population with university level degree (%) Country Region Country Region Country Region 2. Analysis of the local governance (also called public- private management model, PPMM) Relevant historical analysis of the unit of analysis (the PPM and the region where it operates) Describe the context in which the local governance is operating: o Identify main entities/agencies for local economic development and their main activities in the last few years. Describe success and failure of these activities o Identify main firm associations and describe their role in the local context o Identify and describe the type of relationships existing among firms (horizontal vs. vertical, cooperation vs. competition) o Identify main NGOs and describe their role in the local context o o Describe citizen participation in decision- making processes Is there a shared vision for the future of the region and about its collective identity? Provide a profile of the PPM structure: is it formalized? Does it have its own budget? If so, what is it? Does it have any infrastructure (like offices)? Concisely describe the success (or failure) of the experience in terms of before and after. What are the key factors that have motivated the adoption of a specific public- private management model (PPMM)? What are the mechanisms that led to the formation of such PPMM? What are the motivations of the actors and the power dynamics? The process of building local governance is a very long and complex one, and in many FOMIN projects (and in general, in many regions throughout LAC) the process is still at the beginning and the governance arrangements that we can observe are still very incipient and not formalized in any particular institution yet. Bearing this mind, analyze the factors that may be a barrier or an incentive at these initial stages. 7

8 What are the strategies that are pursued at the local level in order to reach a more formal governance structure? Where there any leaders pushing for building the local PPM? Describe how actions are decided and implemented, what types of decision mechanisms are in place, and how they contribute to achieving the objective of the local development strategy. How relevant information is handled/managed? Were actions taken to improve information exchange among actors? Do actors perceive that there is information asymmetry? Was the local governance structure able to manage or solve conflicts of interest among local stakeholders? Describe the initiatives and positive outcomes, both objective and subjective, of the story (either if it is a success or a failure). Are these outcomes associated to the PPMM adopted in the region? Provide concrete examples, with the specific skills and capacities that were necessary to reach those outcomes. Identify negative side effects and costs of success. Turning points: o Identify key turning points between before and after o Detail the role of governance in changing the course of action at this stage. Identify the common elements that underlay the actions that led to success. Analyze social capital and trust among actors: did actors already collaborate before the project? Were there factors or key moments that contributed to building trust/social capital, or that hampered such process? What was the quality of the relationships (use Giuliani s work as a starting point Social Network Analysis)? Perception of actors participating in the governance structure: did the way of thinking of actors change after the construction of local governance? How have the functions and behaviors of actors participating in the governance structure changed? Did the local strategy meet the needs of firms and/or other actors? Are there examples in which the implementation of the strategy has improved/strengthened initiatives that were already somewhat successful? Specifically, on collective action: Analyze the formation of collective actions and the development of coordination skills among main actors (public sector, private sector, academia, civil society, etc.) Is local governance involved in the production of common/collective goods? Analyze the capacity of the collective action (public- private collaboration) to produce common/collective goods Analyze the sustainability of the collective action. What are the factors that threaten the sustainability of the collective action and how to prevent them? Are there spillovers into other sectors (positive externalities)? 3. Conclusions Identify drivers and limitations to the formation of public- private management models for local economic development Address some of the research questions by using the evidence from the case Identify unresolved issues for further learning IV. Cross- analysis of case studies 1. Putting it all together: Identification of common patterns and elements for success Look at the processes from before governance to after governance and analyze the evolution of governance patterns (for example, from a governance structure built around the leadership of one or few actors to a more encompassing governance, where a wide range of actors participate). 8

9 Identify factors that were common to success cases: What are the critical variables to build successful PPM? Are there common factors that were an obstacle to PPM? Looking across cases, analyze whether similar types of PPM led to similar LED outcomes (the research may not have enough observations to develop this analysis). 2. Knowledge products This cross- analysis should produce the following knowledge products: Main lessons from evidence and recommendations for practice Guidelines for practice Guidelines about desirable skills and abilities that a coordinator of local economic development processes should have 9