By: Antonio Vazquez Barquero
For over thirty years, at the same time intensified the process of global economic integration, have emerged and have had multiple experiences in local development poor and late development (Aghon et al. 2001; Scott and Garofoli, 2007; Vázquez Barquero, 2007 and 2005).
In order to reduce poverty, create jobs and promote economic and social progress, local actors promoted initiatives in response to the towns and territories to the challenges posed by the production adjustment and increased competition in domestic and international markets.
But the economic, political and institutional, in which local initiatives have emerged, has changed since mid-2007 as the advanced economies and emerging economies have been affected by the crisis in the financial system, which is blocking the operation of the real economy. Have significantly reduced growth rates, has reduced the productive activity reduces the domestic and external demand, growing unemployment rates, and increases poverty in the poorest areas. In this scenario, the public and private decision-makers consider how to approach the solution of economic and social problems that have raised the country.
What kind of actions and policies are most effective in times of crisis like the present? Is it enough to launch rescue operations or financial institutions is also necessary to intervene with actions that foster productivity and competitiveness of firms? What is the contribution to local development policy can provide the development of areas affected by the crisis? Are the tools developed for local development policy useful in times of crisis like the present?
local development and the start of the crisis
local development initiatives in poor countries emerged and developed later, in order to neutralize the negative effects of globalization and the production adjustment occurred in the living standards of the population through job creation and economic and social progress.
a. The search for the solution to the crisis in the territory
Although local development strategy and structural policies share the same objectives, approach treatment differently the problems of the crisis.
While structural policies take a functional approach, local development policies define their actions in a territorial approach. To act on the productive system, it should be done taking into account that development initiatives are carried out in areas characterized by a social system, cultural institutions and with which they interact. Therefore, measures are most effective when they use local resources and are linked to investment decisions by local actors.
Two issues determine the outcome of the shares, the existing development potential in each territory and organizational capacities of local actors.
From this perspective, all localities and territories have a set of resources, which constitute its development potential, both for rural areas, as Cuchumatanes, in Guatemala, as in the case of dynamic cities like Rosario, Argentina. At each town, country or territory is detected, for example, the provision of a particular production structure, labor market, skills, entrepreneurship, natural resources, social and political structure, or tradition and culture, on which necessarily articulate local initiatives.
On the other hand, the development of a locality or territory requires public and private actors implement their investment programs in a coordinated manner. In Latin America the endogenous development policy is based on initiatives in the economic and social projects are coordinated and managed through new forms of governance involving public and private actors, international organizations and nongovernmental organizations ( Costamagna, 1999). In Villa El Salvador established the Autonomous Authority Industrial Park Southern Cone, which brings together public and private actors in order to create and develop the Industrial Park. In Jalisco, Mexico, local businessmen, including executives of multinational corporations, together with public, involved in the creation of local supplier networks.
Finally, the local development strategy should be raised specifically in each case, as the needs and demands of different localities and territories, the capacity of residents, businesses and local community change, and in addition, each community visualized different priorities should incorporate development policies. Territorial strategic planning has become therefore a valuable tool to streamline decision making and management in cities and regions, with many examples such as Rosario and Cordoba in Argentina, or in cities and regions of Morocco Tunisia and Libya, where he created the Local Economic Development Agencies, animated by the UNDP and ILO on the basis of strategic plans (Canzanelli, 2003).
b. Innovation, strategic factor in the production adjustment
The approach of the crisis as an opportunity to transform the productive system, so that is stronger and more competitive at international level is a central issue at the start of the crisis. The key element is the introduction and dissemination of innovations in the productive, social and institutional, as it is the most effective way to ensure the long term, increased productivity and competitiveness, and therefore, economic and social progress.
local development policies facing the question of adjustment and restructuring of production systems based on the competitiveness of firms in product markets and factor. The income growth and strong demand changes have led to the diversification of production in both cities and in rural areas. The development of tourism in the cities of Cartagena de Indias and Havana Vieja, but also the strength of cultural tourism in Chiapas and the Yucatan peninsula, show how changes in international demand stimulate the diversification of production and raise the need continually introducing innovations that strengthen competitiveness.
With increasing economic integration, the companies develop their competitive advantages in local and international markets. Thus, production systems are always evolving and often, the revitalization of the changes made from the renewal of traditional know-how with the introduction of new knowledge during the process of structural change. In the case of Cuchumatanes, for example, continued to perform activities of sheep production, production of coffee and horticultural produce goods, but technological improvements could differentiate production and strengthen their business systems.
In other localities and territories, the issue does not lie in the differentiation of production or reduced costs and in finding new products for markets in which local firms can maintain their competitive advantage. This is the case of Tapachula, in Mexico, for example, where coffee producers had to react to the strong competition from producers in Vietnam in the international markets, which could not compete on price. The answer was to change the productive activity and engage in the production of tropical flowers to markets like the U.S., so they had to adopt new technologies production from outside, penetrate new markets and adapt their knowledge to the new realities of production and trade. Companies and territories
point also to the production of new goods and services whose demand is increasing in the markets, as well as products that incorporate high technology and for which there is strong domestic and external demand, as with the cluster electronics in Jalisco, Mexico. For this transformation to take shape in production systems, it is necessary to improve the quality of human resources and introduce new product innovations and in the productive process.
In order to reduce poverty, create jobs and promote economic and social progress, local actors promoted initiatives in response to the towns and territories to the challenges posed by the production adjustment and increased competition in domestic and international markets.
But the economic, political and institutional, in which local initiatives have emerged, has changed since mid-2007 as the advanced economies and emerging economies have been affected by the crisis in the financial system, which is blocking the operation of the real economy. Have significantly reduced growth rates, has reduced the productive activity reduces the domestic and external demand, growing unemployment rates, and increases poverty in the poorest areas. In this scenario, the public and private decision-makers consider how to approach the solution of economic and social problems that have raised the country.
What kind of actions and policies are most effective in times of crisis like the present? Is it enough to launch rescue operations or financial institutions is also necessary to intervene with actions that foster productivity and competitiveness of firms? What is the contribution to local development policy can provide the development of areas affected by the crisis? Are the tools developed for local development policy useful in times of crisis like the present?
local development and the start of the crisis
local development initiatives in poor countries emerged and developed later, in order to neutralize the negative effects of globalization and the production adjustment occurred in the living standards of the population through job creation and economic and social progress.
a. The search for the solution to the crisis in the territory
Although local development strategy and structural policies share the same objectives, approach treatment differently the problems of the crisis.
While structural policies take a functional approach, local development policies define their actions in a territorial approach. To act on the productive system, it should be done taking into account that development initiatives are carried out in areas characterized by a social system, cultural institutions and with which they interact. Therefore, measures are most effective when they use local resources and are linked to investment decisions by local actors.
Two issues determine the outcome of the shares, the existing development potential in each territory and organizational capacities of local actors.
From this perspective, all localities and territories have a set of resources, which constitute its development potential, both for rural areas, as Cuchumatanes, in Guatemala, as in the case of dynamic cities like Rosario, Argentina. At each town, country or territory is detected, for example, the provision of a particular production structure, labor market, skills, entrepreneurship, natural resources, social and political structure, or tradition and culture, on which necessarily articulate local initiatives.
On the other hand, the development of a locality or territory requires public and private actors implement their investment programs in a coordinated manner. In Latin America the endogenous development policy is based on initiatives in the economic and social projects are coordinated and managed through new forms of governance involving public and private actors, international organizations and nongovernmental organizations ( Costamagna, 1999). In Villa El Salvador established the Autonomous Authority Industrial Park Southern Cone, which brings together public and private actors in order to create and develop the Industrial Park. In Jalisco, Mexico, local businessmen, including executives of multinational corporations, together with public, involved in the creation of local supplier networks.
Finally, the local development strategy should be raised specifically in each case, as the needs and demands of different localities and territories, the capacity of residents, businesses and local community change, and in addition, each community visualized different priorities should incorporate development policies. Territorial strategic planning has become therefore a valuable tool to streamline decision making and management in cities and regions, with many examples such as Rosario and Cordoba in Argentina, or in cities and regions of Morocco Tunisia and Libya, where he created the Local Economic Development Agencies, animated by the UNDP and ILO on the basis of strategic plans (Canzanelli, 2003).
b. Innovation, strategic factor in the production adjustment
The approach of the crisis as an opportunity to transform the productive system, so that is stronger and more competitive at international level is a central issue at the start of the crisis. The key element is the introduction and dissemination of innovations in the productive, social and institutional, as it is the most effective way to ensure the long term, increased productivity and competitiveness, and therefore, economic and social progress.
local development policies facing the question of adjustment and restructuring of production systems based on the competitiveness of firms in product markets and factor. The income growth and strong demand changes have led to the diversification of production in both cities and in rural areas. The development of tourism in the cities of Cartagena de Indias and Havana Vieja, but also the strength of cultural tourism in Chiapas and the Yucatan peninsula, show how changes in international demand stimulate the diversification of production and raise the need continually introducing innovations that strengthen competitiveness.
With increasing economic integration, the companies develop their competitive advantages in local and international markets. Thus, production systems are always evolving and often, the revitalization of the changes made from the renewal of traditional know-how with the introduction of new knowledge during the process of structural change. In the case of Cuchumatanes, for example, continued to perform activities of sheep production, production of coffee and horticultural produce goods, but technological improvements could differentiate production and strengthen their business systems.
In other localities and territories, the issue does not lie in the differentiation of production or reduced costs and in finding new products for markets in which local firms can maintain their competitive advantage. This is the case of Tapachula, in Mexico, for example, where coffee producers had to react to the strong competition from producers in Vietnam in the international markets, which could not compete on price. The answer was to change the productive activity and engage in the production of tropical flowers to markets like the U.S., so they had to adopt new technologies production from outside, penetrate new markets and adapt their knowledge to the new realities of production and trade. Companies and territories
point also to the production of new goods and services whose demand is increasing in the markets, as well as products that incorporate high technology and for which there is strong domestic and external demand, as with the cluster electronics in Jalisco, Mexico. For this transformation to take shape in production systems, it is necessary to improve the quality of human resources and introduce new product innovations and in the productive process.
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