By: Antonio Vazquez Barquero
But it is in the area of \u200b\u200bthe instruments of development in which local initiatives contribute significantly to the search for a path that leads to ending the crisis.
Its strength is that many of the instruments used stimulate the production of increasing returns on investment, helping to increase productivity (Vázquez Barquero, 2007).
i) Encourage the creation and development of enterprises and clusters
But it is in the area of \u200b\u200bthe instruments of development in which local initiatives contribute significantly to the search for a path that leads to ending the crisis.
Its strength is that many of the instruments used stimulate the production of increasing returns on investment, helping to increase productivity (Vázquez Barquero, 2007).
i) Encourage the creation and development of enterprises and clusters
The creation and enterprise development is a prerequisite in the development process, as companies transform savings into investment through business ventures; well, when stimulated the development of networks and clusters of companies, promotes the emergence of external economies of scale and reducing transaction costs.
ii) Diffusion of innovations
Another of the main axes of the local development policy is the diffusion of innovation and knowledge in local production, allowing the introduction of new products and differentiation of existing changes in production processes, opening new markets.
All this contributes to increased productivity and competitiveness of enterprises.
iii) Qualification of human resources
If there is a specific objective of local development policy, that is the training of human resources, and through them that knowledge is incorporated in the production of goods and services and the manage their own development strategy. When the training activities are inserted into the development strategy, improving the quality of human resources conducive to increased productivity, enhance competitiveness, and even affects the cultural model that supports the development process.
iv) Construction of urban facilities and infrastructure
The construction and improvement of social overhead capital and infrastructure is one of the most widely used instruments in local development policies. Companies prefer locations in places accessible and well equipped with facilities to enable them to exploit economies of agglomeration and access to product and factor markets. But also the improvement of infrastructure attracts industrial activities and services to the towns and rural areas, generating economies of scope and promotes increased productivity.
v) Maintenance and improvement of environment and cultural heritage
Sustainable development is without doubt one of the strategic objectives of local development and the protection and development of ecological systems and natural resources and continuous improvement of historical and cultural heritage, not only have a positive impact on environmental systems but also make the territories and cities attractive places for producing and living, and contribute to improving the welfare of the population.
Finally, sustainable development is visible in initiatives that aim to promote conservation historical and cultural heritage, through the recovery of historic centers, as in the case of Old Havana and Cartagena de Indias, but also with initiatives aimed at transforming degraded areas by giving them a new functionality within the city as it happens Puerto Madero, Buenos Aires, where he transformed the old port in an urban area that contains educational activities, business services, and leisure.
territorial output
crisis advanced and emerging countries are going through a process of major productive and social changes, because the financial crisis has made the banking system ceases to be a dynamic factor production system. The scope of the situation is, at present, unknown, since the lack of liquidity and insolvency of banks prevent credit flows in the productive system and the companies generate the profits needed to sustain the activity, so that produces the continued closure of establishments and job losses.
article argues that to overcome the crisis it is necessary that the government undertake policies that combine measures to restore confidence in financial institutions as banks once again become the instruments that facilitate productive activity, on the one hand, with initiatives to increase productivity and competitiveness, another.
In this sense, the article argues that local development policy is a land out of economic crisis. Its strengths are that it is a strategy that focuses on productive restructuring and adjustment as an issue to be resolved in the territory, allowing you to give specific solutions to specific problems of each locality and region, using precisely the development potential existing in each territory and is not used because of the crisis.
Its merit lies in having used a strategy that encourages increasing returns on investment, and therefore promotes increased productivity and competitiveness of economies.
But local development is a strategy that also seeks social progress and sustainable development. Understand that development is a process in which economic growth and income distribution are two sides of the same phenomenon, since the public and private actors, when deciding and implementing their investment, do so with the aim of increasing productivity and improve the welfare of society. Local development is also a strategy based on continuous improvement of available resources, particularly natural resources and historical and cultural heritage, as this contributes to increase the competitive advantage of the territory and the welfare of population.
Finally, should not forget that local development is a strategy whose results are not guaranteed. This is a development policy that seeks to create wealth and employment by encouraging the emergence and development of enterprises, so that excess foreign aid reduces the creative capacity of local actors and the population, and therefore, limits the results of initiatives. Furthermore, it is a policy whose effect is conditioned by the coordination in the territory of the shares, so it loses effectiveness when the actions are implemented in isolation, and limiting the effects of the interaction between the forces of development. Finally, a policy participatory civil society, in which local actors are those who design and monitor their implementation, so their results are affected when, unilaterally imposed, locally or from abroad, actions or goals condition strategy.
ii) Diffusion of innovations
Another of the main axes of the local development policy is the diffusion of innovation and knowledge in local production, allowing the introduction of new products and differentiation of existing changes in production processes, opening new markets.
All this contributes to increased productivity and competitiveness of enterprises.
iii) Qualification of human resources
If there is a specific objective of local development policy, that is the training of human resources, and through them that knowledge is incorporated in the production of goods and services and the manage their own development strategy. When the training activities are inserted into the development strategy, improving the quality of human resources conducive to increased productivity, enhance competitiveness, and even affects the cultural model that supports the development process.
iv) Construction of urban facilities and infrastructure
The construction and improvement of social overhead capital and infrastructure is one of the most widely used instruments in local development policies. Companies prefer locations in places accessible and well equipped with facilities to enable them to exploit economies of agglomeration and access to product and factor markets. But also the improvement of infrastructure attracts industrial activities and services to the towns and rural areas, generating economies of scope and promotes increased productivity.
v) Maintenance and improvement of environment and cultural heritage
Sustainable development is without doubt one of the strategic objectives of local development and the protection and development of ecological systems and natural resources and continuous improvement of historical and cultural heritage, not only have a positive impact on environmental systems but also make the territories and cities attractive places for producing and living, and contribute to improving the welfare of the population.
Finally, sustainable development is visible in initiatives that aim to promote conservation historical and cultural heritage, through the recovery of historic centers, as in the case of Old Havana and Cartagena de Indias, but also with initiatives aimed at transforming degraded areas by giving them a new functionality within the city as it happens Puerto Madero, Buenos Aires, where he transformed the old port in an urban area that contains educational activities, business services, and leisure.
territorial output
crisis advanced and emerging countries are going through a process of major productive and social changes, because the financial crisis has made the banking system ceases to be a dynamic factor production system. The scope of the situation is, at present, unknown, since the lack of liquidity and insolvency of banks prevent credit flows in the productive system and the companies generate the profits needed to sustain the activity, so that produces the continued closure of establishments and job losses.
article argues that to overcome the crisis it is necessary that the government undertake policies that combine measures to restore confidence in financial institutions as banks once again become the instruments that facilitate productive activity, on the one hand, with initiatives to increase productivity and competitiveness, another.
In this sense, the article argues that local development policy is a land out of economic crisis. Its strengths are that it is a strategy that focuses on productive restructuring and adjustment as an issue to be resolved in the territory, allowing you to give specific solutions to specific problems of each locality and region, using precisely the development potential existing in each territory and is not used because of the crisis.
Its merit lies in having used a strategy that encourages increasing returns on investment, and therefore promotes increased productivity and competitiveness of economies.
But local development is a strategy that also seeks social progress and sustainable development. Understand that development is a process in which economic growth and income distribution are two sides of the same phenomenon, since the public and private actors, when deciding and implementing their investment, do so with the aim of increasing productivity and improve the welfare of society. Local development is also a strategy based on continuous improvement of available resources, particularly natural resources and historical and cultural heritage, as this contributes to increase the competitive advantage of the territory and the welfare of population.
Finally, should not forget that local development is a strategy whose results are not guaranteed. This is a development policy that seeks to create wealth and employment by encouraging the emergence and development of enterprises, so that excess foreign aid reduces the creative capacity of local actors and the population, and therefore, limits the results of initiatives. Furthermore, it is a policy whose effect is conditioned by the coordination in the territory of the shares, so it loses effectiveness when the actions are implemented in isolation, and limiting the effects of the interaction between the forces of development. Finally, a policy participatory civil society, in which local actors are those who design and monitor their implementation, so their results are affected when, unilaterally imposed, locally or from abroad, actions or goals condition strategy.
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