8 COMPETITIVE CITIES FOR JOBS AND GROWTH 101720 COMPANION PAPER 8 WHAT MAKES A GOOD CITY STRATEGY? Dmitry Sivaev December 2015 2 TABLE OF CONTENTS Background and Acknowledgements 5 Executive Summary 7 Introduction 8 What is a good Local Economic Development strategy, and how can we measure it? 9 Key success factors for city strategies 10 Methodology of analysis 10 Identifying success factors 10 Preconditions 10 Content 12 Implementation 13 Focus on three critical areas 15 Who should take the lead in the strategic planning and implementation process, and how should it be organized? 15 What analytical tools should be used? 17 How should a strategy be funded? 18 A checklist for a good city strategy 19 Concluding Remarks: Improving Strategic Planning for Cities 20 3 4 BACKGROUND AND ACKNOWLEDGEMENTS I nterest in studying city competitiveness has findings with econometric “deep dives” and case studies in skyrocketed in the last few years, although the topic selected countries and cities. We are now able to inform the itself is far from new. Mayors and city leaders have long continuing debates on what really matters for economic out- worried about the obstacles to job creation, competitiveness comes in cities with an analysis of over-arching trends and and economic growth that plague their cities. associations, supplemented with rigorous analyses to identify causal relationships. We also try to “stand on the shoulders of This paper is part of a broader research initiative, giants” where possible: We use and refer to existing resources the “Competitive Cities Knowledge Base” (CCKB) (research, analysis, toolkits and experts). project, managed jointly by the Trade and Competitiveness Global Practice and the Social, Urban, Rural and Resilience The summary findings of the overall research are presented Global Practice of the World Bank Group. Its objective is to in the framework paper, “Competitive Cities for Jobs and create a knowledge base on competitive cities, to improve the Growth.”1 The objective of this paper is to review and understanding of job creation at the city level, and to serve analyze the best practices in developing and imple­ as a foundation for a Community of Practice on this topic menting city strategies, particularly in lower-in­ for World Bank Group staff, academia, donor partners and come environments. It reviews available evidence to practitioners. formulate the list of basic criteria that good strate­ gies should meet, discusses three key questions that Our attempt in this initiative has been to focus our city strategies should address, and suggests how the energies on bringing a robust body of knowledge to widely applied LED and CDS approaches can be im­ our clients — to address their questions on benchmarking proved in the future. their performance, on understanding what has worked else- where and what has not, and on how to organize for delivery This note was prepared by Dmitry Sivaev, with critical guidance in different contexts. from Austin Kilroy and Sameh Wahba and valuable advice from Soraya Goga, Valerie Joy-Santos and Ming Zhang. The co-TTLs Our approach has focused on using different meth­ of the CCKB project are Austin Kilroy and Megha Mukim. Overall odologies to tackle these questions, based on best guidance on the project has been provided by Stefano Negri, Sameh practices, data availability, replicability and sim­ Wahba, Ceci Sager and Somik Lall as senior advisors. plicity. In many cases, we have leveraged new and existing data sources to shed light on some unanswered questions; in The team would like to gratefully acknowledge the European others, we’ve conducted primary research, since the available Commission, the ACP Secretariat and the governments of Austria, data were inadequate. We have looked at global and regional Switzerland and Norway for financing this study through the trends, comparing different typologies of cities – by income, Competitive Industries and Innovation Program (CIIP). sector, region and so on. And we have buttressed these 5 6 EXECUTIVE SUMMARY T he increasing recognition of the importance of cities, Three key problems of city strategies are discussed in more and the global trend toward devolution, has led detail: to a proliferation of various city-development strategies. City strategies can be powerful tools for making What is the right balance of private- and public-sector engage- cities more competitive, but the story of city-level strategic ment? Institutional structures for implementation of city planning knows as many failures as successes. Thus there is a strategies may vary dramatically. It is most important that need to understand what makes a good city strategy. the selected structure reflect the capacity of local actors and that it suits local conditions. There are a number of methodological issues associated with evaluation of the quality of strategies. Because of What analytics to use? It is more important to make sure this factor, most literature sources use process-based, rather that the analytical process follows the full cycle from data than outcome-based approach to evaluating strategies. collection, to data cleaning and analysis, to data interpre- tation, concluding with the application of results in policy This paper uses a review of conceptual and case-study evi- prioritization. The choice of specific analytical techniques is dence and adopts the process-based evaluation approach to less important. identify a list of 12 key components of good city strat­ egies. The analysis is broken down into three broad groups of How to fund strategy implementation? Funding sources may factors: preconditions, content and implementation. include a combination of national, local and donor funding. However, it is important that strategic priorities be reflect- Main preconditions for a successful strategy include strong ed in local budgets, and that funding for key initiatives be leadership and a well-designed participatory process that secured early on. engages the private sector early on and that links to the national policy context. Local Economic Development (LED) and City Development Strategy (CDS) approaches that were widely popular over re- In terms of its content, a good strategy should offer deep cent decades have not achieved notable success in improving analytics, strong grounding in the local context, and a vision the competitiveness of cities. The revision of the way multi- of the city’s future. Clear priority actions and measurable lateral and donor agencies approach city strategies should focus targets are required to make sure that this vision can be on offering more analytical, prioritization and funding tools along achieved. with less rigid and more adaptable implementation structures. The implementation of a strategy should be planed early on, with close attention given to the institutionalization of strategies and to securing sources of funding. These measures protect strategies from unexpected political and economic shocks. 7 Introduction through these exercises over the last two decades and, cur- rently, a number of African countries (including Kenya and City strategy is a structured attempt at planning Ethiopia) are in the process of localizing government powers and organizing interventions at a city- or metropol­ and responsibilities. As a part of the devolution process, itan-area level with the purpose of improving eco­ local governments have been charged with various strate- nomic development and competitiveness outcomes. In gy-development exercises. As a result, a host of strategies are recent decades, city strategies have become a popular concept. being delivered by cities of all sizes in countries spanning all As cities are gaining recognition as places that have the continents and all income levels. A number of development greatest growth potential, but that simultaneously face the and donor institutions have been active in this field, offering toughest development challenges, a number of donors and cities in the developing world their methodologies for design- development agencies have become very active in the field of ing and implementing strategies for local development. strategic planning for cities. A number of methodologies have been developed and a vast number of strategy-development Are these strategies of good quality? A good strategy projects have been implemented across the world. The most can play a crucial role in directing and organizing economic popular approaches to strategic planning include Local Eco- development efforts as part of a city’s journey toward com- nomic Development (LED) and City Development Strategy petitiveness. But poorly organized strategic exercises may (CDS) (See Box 1). In this paper, we investigate the state of lead to a major waste of resources and may cause more harm strategic planning for cities through a review of theoretical than good to city economies. and empirical literature, a review of development strategies of world-leading cities, and lessons from case studies of suc- So, what is a good city strategy? To answer this ques- cessful cities from around the world. tion, this paper looks at the theoretical and empirical LED and CDS literature, strategies of cities that are recognized as The global trend toward empowering local govern­ world leaders, and recent case studies from successful cities. ments has helped lead to the proliferation of various What should cities keep in mind when designing a strategy? LED strategy methodologies. The global trend toward And how should development partners improve their efforts the decentralization of governance functions is in full swing to support cities in organizing city strategies that work? today.2 A number of countries in Latin America have gone Box 1: Defining Local Economic Development and City Development Strategies ‘Local Economic Development’ is one of the method­ adopted by a range of development institutions, in- ological approaches to organizing policy measures cluding the Cities Alliance and the Asia Development and interventions to promote economic growth and Bank. In essence, the CDS approach is very similar poverty alleviation at the subnational level. This to LED, and they share the principles of participa- approach has been promoted by major development institu- tory planning as one of the core values. Unlike LED, tions, including the World Bank Group, and has been widely however, CDS looks at a broader array of development used for strategic planning at the city level. It focuses on outcomes, often prioritizing service provision and enhancing competitiveness, increasing sustainable growth, poverty alleviation over economic growth indicators. generating employment, and ensuring that growth is inclu- sive. It is based on a participatory approach to planning and We note that there is an extensive literature on each of offers local government, the private sector, the not-for-profit the components associated with LED and CDS, includ- sector and local communities the opportunity to work togeth- ing real-estate development and finance, infrastruc- er to improve the local economy. While strategic planning is ture provision, SME support and cluster development. an important aspect of LED, the concept is broader, because it In this paper, we focus on LED and CDS literature covers the way of managing and supporting a local economy. with capital letters — i.e. development literature that focuses on a city (or other subnational administrative ‘City Development Strategy’ is a strategic planning unit) as the unit of analysis, and that aims to develop tool for cities that focuses on developing a coordinat­ a whole city rather than a single industry or group ed institutional framework to help a city make the of industries, or to target a different specific issue of most of its opportunities. Just like LED, CDS has been urban growth. 8 What is a good city strategy and how 3) Focus on Process rather than Economic Outcomes. Projects can we measure it? are sometimes assessed as successful if they com­ ply with methodological recommendations for A strategy can be defined as “a method or plan chosen project design and implementation without fully to bring about a desired future, such as the achievement of assessing economic outcomes. 5 a goal or the solution to a problem.”3 This understanding of a strategy implies that we can evaluate a strategy only by -- For example, in Karu, Nigeria, the LED process has linking the actions that it inspired to the outcomes that it been evaluated as successful because it created a delivered. “Business and Economic Development Committee” to ensure a participatory process, but the overall Various institutions promoting strategic planning longer-term economic outcomes resulting from this for cities recommend a set of methodologies for de­ strategy are not clear. 6 signing strategies. The World Bank Group, OECD, Cities Alliance, the Asian Development Bank and others have been -- In Rosario, Argentina, the city was praised because playing an active role in helping cities shape strategies. Each it successfully managed to frame the LED process in has developed and branded a separate methodology. Each a strategic document signed by major stakeholders, organization frames its own set of priorities and even its own which was used to negotiate loans from develop- understanding of what LED and strategic-planning exercises ment institutions – but, once again, it is difficult to should entail. Over the past 20 years, a number of cities have find information on the economic outcomes that designed strategies following these methodologies. Has it resulted. paid off? 4) Focus on the Public Sector’s Role. Most prior studies Assessing the quality of these methodologies – and focus on the role of local government, while miss­ the resulting strategies – has been difficult. There are ing the dynamics of interaction with the private several reasons for this difficulty, as suggested by the avail- sector. Although a participatory planning process is one able literature: of the key focuses of most LED and CDS methodologies, the cases in which the private sector facilitates city-wide 1) Selection Bias. Organizations promoting LED or CDS strategic exercises appear to be underrepresented in this have an incentive to report the success of the literature, as are bottom-up initiatives in general. strategic projects that they have been involved with. Most reviews of the strategies are conducted by There is thus a need for a more rigorous evaluation of organizations that provide LED or CDS services as a part the impact of city strategies. Ideally, the strategy-eval- of their operations. This means that their reviews focus uation exercise should have started with the collection of on the strategies that those organizations, themselves, strategies from 10 to 15 years ago, the recording of their have helped develop and implement On the one hand, characteristics, and the collection of data on the performance this means there are plenty of studies that purport to of cities in the 10-to-15-year period since the initiation of the evaluate city strategic plans. On the other hand, these strategy. It would then require a counterfactual to “test” the evaluations do not use counterfactuals to rigorously impact of the strategy, rather than simply following a “before assess impact. This evaluations may not be particularly and after” approach. Such a rigorous evaluation process has reliable, because the institutions have an incentive to not been possible, mainly because of the difficulty of isolating exaggerate their successes and to downplay difficulties to the impact of the strategy from various other countervail- promote the quality of their work. Often such evalua- ing and intermediating factors. Strategies by definition are tion papers are predominantly descriptive. They pro- aimed at the medium to long term, and, during this period vide stories of “good practice” – and thus there is a bias of implementation, governments can change (often resulting toward presenting successful cases, rather than examples in changes to the city strategy) and exogenous effects can of failure. It is hard to find examples of failed strategic have a large impact (which makes it difficult to understand exercises. the impact of the strategy itself). Furthermore, if a strategy is not implemented in full, or if it is dropped halfway, there 2) Comparability. Comparability of results between and is no way to evaluate whether it has delivered on the original among organizations is limited, because each or­ promise. For these reasons, this exercise was ended, even ganization’s understanding of a successful strat­ after experimenting with tracking performance of cities in egy differs. City Alliance City Development Strategies the years after they adopted such strategies. (CDS) has a very strong poverty-alleviation focus; the International Labor Organization version of LED strat- This paper, instead, uses a review of evidence from egies targets job creation as the key indicator of success; various process-based (as opposed to outcome-based) and the World Bank Group’s LED approach targets a wide assessments of LED strategies and from case stud­ range of economic outcomes. Sometimes the objectives ies of economically successful cities. The limitations can even differ between different evaluation documents to this exercise are duly noted, but it is used to gain insight from the same organization.4 and guidance for cities attempting to undertake a strategic economic planning exercise. 9 Key success factors for city strategies cities can only dream of. The lessons from these world leaders will not apply across the board, yet they help ver- Methodology of analysis ify the findings from other literature and check whether the strategic-planning thinking in the developing world This section develops a list of key success factors for is evolving in the right general direction. successful city strategies. This analysis is structured around three key aspects of strategy development: 4) Evidence on the importance of strategic planning from the case studies of six successful cities in • Preconditions: What are the institutional characteris- different regions of the world including Bucaraman- tics that should be in place before the strategy is devel- ga (Colombia), Changsha (China), Coimbatore (India), oped in order for it to be a success? Gaziantep (Turkey), Kigali (Rwanda), and Tangier (Mo- rocco). The case studies were developed as a part of the • Content: What should go into a strategy? Which Competitive Cities initiative of the World Bank Group. themes should be covered, how should priorities be iden- They had the ambition of identifying the factors behind tified, and how should targets and policies be formulat- the success of top-performing cities. The role of strategic ed? planning was one of the factors investigated in the case • Implementation: What are the most important things studies. The conclusions of the case studies help identify to consider and include within the strategy to make sure which specific aspects of the strategic-planning pro- that it is implemented and that its targets are achieved? 7 cess are the most important in the developing-country context. They also offer the only piece of evidence on the We use the following four sources of evidence: role of strategic planning where cities are not selected because they have used a structured planning process, 1) Methodological documents. In recent years, a num- which adds an important perspective to the evidence ber of development organizations – including the World base. Bank Group, UN-Habitat and Cities Alliance – have is- sued methodological guides for LED strategies and CDSs. Identifying success factors These documents offer step-by-step recommendations In the rest of this section, the key findings will be summa- for strategy development, often as detailed as instruc- rized for each of the groups of characteristics: Preconditions, tion on how to conduct roundtables and specific analyt- Content and Implementation. See Table 1 for a more detailed ical exercises. Comparative analysis of these documents summary of characteristics that are associated with good city helps identify difference in their understanding of key strategies across various sources of evidence. priorities in the city strategy development process. 2) Reviews of implemented LED and CDS projects. Preconditions Since a number of development and donor bodies have Across all different types of evidence, there is a unan­ been closely engaged with strategy development ini- imous agreement that certain institutional charac­ tiatives for the past two decades, a significantly large teristics are crucial for the success of strategic-plan­ number of projects have, by now, been implemented. ning exercises at the city level. These are: Development organizations as well as independent researchers have made attempts to look back and learn • the leadership and commitment of the local government from the experience of strategic planning initiatives at and the city leader(s) (mayor or otherwise); the city level. These documents are subject to a number • the inclusivity and participatory nature of the strate- of biases, as discussed in the previous section, and they gy-design process; and use a predominantly process-based approach to their evaluation of strategies. However, they provide the most • the close dialogue between public and private actors. comprehensive empirical body of knowledge about the factors that are associated with good city strategies. It is most striking that these issues come up as the most important across cities at different income levels. 3) Development strategies of world leading cities: New York, London and Sydney. There is no precise London, New York and Sydney clearly demonstrate way to prove that the approaches used by New York, the commitment of city leaders to strategies. The com- London or Sydney represent best practice. However, the mitment of a city’s leader to the strategy sends a strong signal prominence of these cities, their status as global econom- to the private sector, to public-sector employees and to the ic hubs, their reputation for good governance and their residents of the city. This helps organize the implementation well-established strategic planning process suggest that effort, gives the strategy additional momentum, and reduces they are representative of the global frontier in develop- the level of uncertainty about a city’s future, which is im- ment strategies for cities. Of course, these cities have the portant for the private sector. This factor proves to be equally resources and the technical capacity for the design and important in developing and developed countries. Reviews of implementation of strategies that most developing-world city strategies suggest that strong leadership may be one of 10 the make-or-break factors in the success of strategic plan- The capacity of local actors is one of the crucial fac­ ning. This was clearly the case in Colombo (Sri Lanka), where tors for the success of strategies, because it defines both the election of a new mayor in 1997 led to the reshaping of the ability to identify the correct strategic interventions and the governance structure, which allowed for a more inclusive to implement them. The low capacity of the local government and productive strategic-planning process. 8 is one of the key constraints for strategic planning in devel- oping countries.14 Although it is clear that public-sector ca- The participatory approach to designing a strategy pacity should continue to be addressed through training and grounds it in the local context and helps create a other capacity-building exercises, more attention should be coalition around it. Only a strategy that accounts for the given to the ability of private actors to form coalitions and to interests of businesses and community groups can make the play a greater role in developing and implementing strategies. best use of local knowledge that cannot be accessible to city Thus, what should matter most is the cumulative capacity of government, analysts and experts. And only through resolv- local growth coalitions, rather than of the city government ing the conflicting interests of different groups through de- on its own. bate and dialogue can a city build a coalition that will support the implementation of high-priority projects in the strategy. A number of sources point out that coordination with In Cali (Colombia), a series of workshops organized as a part national and regional governments is an important of the strategy-development process helped overcome the success factor for a strategy-development process. atmosphere of distrust between key local actors and helped Coordination protects strategies from potential conflicts define shared priority areas. 9 among different levels of government and helps attract national and regional resources for strategy implementation. When talking about job creation and economic Vertical coordination was identified as one of the crucial growth, the private sector is the key counterpart for enabling condition in Qazvin City15 in Iran and across a range the city. Businesses know best what is important for their of cities in Southeast Asia.16 growth. That is why establishing private-public dialogue is an important component of successful strategic actions in places What is often missing from the debate, however, like Bucaramanga and Gaziantep.10 It is also recognized as is the importance of national regulations as a po­ an element of critical importance in the London Economic tential major constraint for the design of and the Development Strategy. 11 efficient implementation of city strategies. Often, city governments do not have full control over the content Experience on the ground shows that leadership and of the strategy, its implementation process or its funding. In dialogue can take many different shapes. Most of the many cases, national governments require cities to develop LED and CDS literature insists on the central role of the a strategic document following certain guidelines. Require- city government in the strategic-planning process, but the ments for these documents are sometimes poorly designed, experience of successful cities in developing countries shows and not enough support and resources are provided to local that, when public officials struggle to get their act together, governments in order to produce high-quality strategies and private actors can lead the way, as they did in Bucaramanga.12 implementation plans. Box 6 offers an example of CIDPs in This points to the need for more flexibility in the way that the Kenya. The experience of Kenya clearly shows that strategies coalitions and institutions that take charge over developing developed without clear guidance, under capacity restrictions and implementing strategies are perceived and structured.13 and misconstrued incentives, will struggle to lead to im- proved competitiveness of cities. (See box 2) Box 2: Challenges in the Kenya CIDP process As a part of the devolution reform implemented in lacked the resources and skilled staff, and were offered little 2012, counties in Kenya were required to produce Com- technical assistance. Three national ministries issued CIDP munity Integrated Development Plans (CIDPs). Counties guidelines, but unfortunately these contradicted one another were informed that the distribution of national grants in parts. In addition, the process of submission and approval and fiscal transfers would be guided by projects included of the CIDPs, as well as their legal status, was not clear to all in the CIDPs and that projects that were not presented counties. in CIDPs would not be funded. As a result of this process, most of the CIDPs produced were The deadline for submitting CIDPs for national govern- of relatively low quality, and they contained “shopping lists” ment approval was set at six months from the date of projects rather than focused strategic priorities. Counties when the counties (which were new territorial units) saw national grants as the only way of attracting funding, were established. New governments were expected and thus they were motivated to include as many projects as to assemble teams and conduct thorough studies of possible into the CIDPs. local conditions in less than six months – yet counties Source: World Bank (Forthcoming) Kenya Urbanization Review 11 Content debate beyond the main issues and with acknowledging the One of the key conclusions of this review is that, while wide range of problems that the city should address.20 Those methodologies and approaches collected under various two approaches, however, are not necessarily contradictory. city-strategies banners share many common features, Cities should aim to combine broad comprehensive they are also very different. In order to tackle the question analytics and prioritized interventions. The recent case of the scope of city strategies, an attempt was made to identify studies of successful cities showed that successful cities often the thematic areas they traditionally cover. While strategies have a main “theme” – something that they systematically share common themes, their focus and priorities differ substan- pursued: For Gaziantep in Turkey, it was export-led growth tially across different approaches, and it is scarcely possible to driven by the carpet-making sector; for Changsha in China, it define a complete vocabulary of subject areas. In the documents was the development of a world-class construction-machinery reviewed, the following types of interventions and policy levers sector; for Kigali in Rwanda, it was maintaining an image of a appear to be included in strategy documents most frequently: clean and orderly city.21 However, that didn’t necessarily mean • Infrastructure and service-provision upgrades; that those cities were limited to those subjects in their strategic • Industrial policy, including the development of industrial thinking: They considered and analyzed a wide range of issues zones, investment promotion and other forms of support; and market opportunities, and they combined interventions • Support for SMEs and entrepreneurs; that targeted general improvements to the business and social • Skills development and job-creation programs; environments with targeted support for businesses and sectors • Regulatory and business-environment reforms; with high growth potential. While there is no clear, universal • Institutional reforms, change in governance practices and answer, it appears that a good strategic exercise would adopt capacity-building; and a rather broad and open-minded approach in the analytical • Regeneration, quality-of-life and environment-related stage; however, it would limit the number of priority projects interventions. that it would aim to achieve in the implementation stage. The precise choice of levers included in a given strategy While each city strategy should be unique, it is import­ will reflect local conditions, and thus they will be differ­ ant that every strategic-planning exercise maintain a ent in each strategy. The content of effective strategies is largely strong focus on economic growth and job creation. City defined by the power available to local governments. For example, in strategies, by their very nature, are multidimensional exercis- South Africa, local administrations chose to act in areas where es, and they should include a range of subjects including spatial they had leverage, rather than in areas where the challenges patterns of development, service provision and infrastructure appeared more significant or urgent but where the city had little planning. However, the experience of most competitive cities, control over them. By contrast, other strategies included inter- as well as the examples of strategies of world leaders, shows ventions that were outside cities’ authority, and for these reasons that economic-development considerations should play a were “wish lists” for national governments. This observation prominent role and should act as an organizing framework for implies the need for the inclusion of many stakeholders and the identifying top-priority interventions. Sometimes it is difficult national government in the strategic-planning process, which for cities to adopt such an approach, because the most urgent should expand the leverage available to strategy-makers.17 issues may be related to service provision and housing (that was the case, for example, in Colombo22 in Sri Lanka) and While the content of each city strategy should be because the economic-development mandate of a city govern- unique, certain rules about the content of city ment may be limited. However, in the long run, only economic strategies are universally accepted. The importance of growth can guarantee job creation and the expansion of budget strong analytical exercises as the foundation of any strategy revenues that will be needed to improve infrastructure and is recognized across all sources of evidence.18 Similarly, most service delivery. sources recommend focusing on formulating a vision for the city that is ambitious yet realistic, capturing a set of clearly The debate about balancing the growth and the pov­ measurable targets. That vision should also ensure that some erty-alleviation agendas in urban strategy is particu­ of the targets can be achieved quickly, to prove the potential larly relevant in the context of developing countries. of the strategy and strengthen public support for it. One viewpoint suggests that, under the particularly difficult conditions of urbanization in Africa, when cities become However, a number of questions about the content welfare centers for the displaced rural poor, social services of city strategies remain a subject of debate. The and the poverty-alleviation agenda should take center stage literature on city strategies appears to offer disparate views in city strategies.23 As a result, a distinction emerges between on whether a strategy should be focused on a limited set of “pro-growth” approaches to urban strategies (which are more issues or should be comprehensive, covering a wide range of typical in cities in the developed world) and “welfarist” or “pro- local socioeconomic issues. Cities Alliance’s CDS approach poor” strategies (which are prominent in cities in developing recommends identifying a limited number of key avenues countries). In fact, this has manifested itself in a new brand along which the strategy should evolve.19 On the other hand, of strategies focused on “self-reliance, survival and poverty a review of CDS projects conducted in the 1990s shows that alleviation, rather than participation in the global economy, one of the key difficulties was associated with moving the competitiveness, and finding market niches.”24 In this case, 12 again, the problem should not be envisioned as a choice be- In addition to measuring the progress of strategy im­ tween two absolutes. Overall, a well-designed strategy should plementation, successful cities should be able to learn pay attention to the social distribution of economic benefits from their mistakes and adjust policies and projects while maintaining a focus on growth and job creation. Finding and their implementation strategies. If certain initia- a balance between the two is the most difficult part. tives have failed, a city should be able to accept failure and go back to the drawing board, as Changsha did when it refused Successful cities combine cross-cutting improvements to extend incentives for an electronics manufacturer that to the city’s business environment with targeted departed after the initial incentives package expired.29 interventions to support businesses with the highest growth potential. There often are debates about the tools The empirical literature highlights the risks of a lack that should be used to support the city economy. Targeted of continuity in strategy implementation. Political industrial-policy interventions, such as industrial zones, can change often leads to a change in direction. Strategies designed show quick results, but they are often blamed for “picking by outgoing governments are often abandoned for purely polit- winners and losers.” Cross-cutting interventions – such as ical reasons, which was the case in Santiago, Chile30 and more streamlined regulatory processes and road improvements – recently in Tbilisi, Georgia. While it is counterproductive to re- are necessary, but they often take time to promote economic strict changes to strategic priorities for new governments, it is outcomes. The answer is simple: There is no need to choose. important to limit the possibility of drastic and rapid changes Successful cities in the developing world25 and cities that are of direction. This can be done through the institutionalization world leaders26 combine both types of interventions. of strategy, building it into the day-to-day practices of gover- nance, and possibly through the introduction of formal rules Observations of various strategies show that the for­ that need to be followed to change the strategy, including con- mat of the strategy is not one of the things that mat­ ducting analysis and consultations and gaining the approval of ters very much. Guidelines for strategy development, and key partners.31 A drastic change of direction is far less likely if particularly recommendations that national governments give strategy is owned by a diverse public-private growth coalition, to cities, often focus on such factors as the way that strategies rather than if it is contained within government. should be structured and the choice of documents they should be associated with. But strategies in many different formats Another important aspect of the continuity of imple­ have sometimes proven successful and have sometimes proven mentation is the security of funding sources. High-pri- disastrous. In fact, some of the cities studied didn’t even have a ority projects can only materialize if they are tied to a pre- formal strategy, but rather had a widely shared understanding, dictable source of funding. In the developed-country context, among key actors, of the guiding vision and key priorities. In this is done through tying priorities to the budgeting process the end, it is not a thick strategy volume that helps a city de- and through developing separate funding mechanisms for velop, but a well-grounded understanding of the local economy long-term investments. In the developing-country context, and its growth potential that is shared by key stakeholders. this is more difficult to accomplish, and implementation is often shaped by the availability of resources.32 Whether a Implementation project gets implemented or not is often a matter of the par- A good strategy is a strategy that can be implemented. ticipation of donors and development partners, which is the It is crucial that the development of implementation plans and case, for example, with most of the CIDPs of the counties in the setup of institutional structures for implementation be Kenya.19 While this is not necessarily bad, cities should make a crucial part of the city strategy-development process. This an effort to tie strategic priorities to sources of funding. can be done in many different ways. Sydney’s and London’s27 development strategies are accompanied by separate imple- In ideal conditions, continuity should be a charac­ mentation plans that are revised on a regular basis; New York’s teristic of the overall strategic-planning process. The strategic plan includes a detailed implementation framework presence of a continuous strategic-planning process is some- with clear targets and timelines for high-priority projects.28 thing that usually distinguishes cities in the developed world. The plans of world-leading cities that this analysis reviewed are A major part of planning for implementation is setting not “one-off” documents: They are instead part of a continuing up a monitoring and evaluation framework. While long-term planning and economic-development process. Stra- importance of M&E is widely accepted, the debates about tegic documents build on previous strategies and the results relevant indicators are extensive. Approaches differ in com- of their implementation. Strategic planning is recognized as plexity and level of detail. However, it remains most important one of the crucial functions of urban governance, and it is that the framework be well-linked to high-priority actions and performed on a continuing basis by a unit within the govern- that it be implementable within the available capacities for ment that is specifically set up for that mission. While such an monitoring. (For example: Are there enough staff members approach may appear ambitious, particularly for low-income to track key outcomes?) The capacity of local actors should be countries, it should be seen as a key ambition of any city’s accounted for within the implementation framework, and the strategic-planning projects. The priority should shift from capacity-building of M&E units should be part of the strategy developing strategic documents to creating infrastructure and implementation process – especially in low-income countries, building local capacity for continuous strategic planning. where capacity is one of the main restrictions. 13 Table 1. Key success factors in city strategies Preconditions Content Implementation Strong leadership/Commitment of the head of the city government Implementation structures/clear distribution of responsibilities Strategy should build on existing institutional structures and Clarity about sources of funding, links to budgeting process Institutionalization to ensure continuity / establishing a Holistic, approach combining “horizontal” and “vertical Participation and ownership of key local actors Support from national/regional government Flexibility, adaptability & revisions Strong focus on economic growth Inclusion of informal economy permanent planning process Focus on capacity building, Monitoring and evaluation Clear measures of success and institutions structure Future foresight analysis Private sector inclusion ongoing interventions Strong analytical base Clear strategic vision Quick visible results Clear priorities interventions Conceptual LED (WB) 34 P P P P P P P P P P P P P P P P P methodologies CDS (Cities Alliance) 35 P P P P P P P P P P P P P LED (UN-Habitat) 36 P P P P P P P P P P P P P P Reviews of LED OECD LED review 37 P P P P P P P P P P P P cases GHK CDS review 38 P P P P P P P P P P P SUDP in LAC 39 P P P P P P P P P LED review (ILO) 40 P P P P P P P P P LED (UN-Habitat) 41 P P P P P P P P CDS (ADB) 42 P P P P P P P P P P P P P P CDS in south Mediterranean 43 P P P P P P P Rasoolimanesh et al. city strategies 44 P P P P P P P P P Strategies of New York City Strategic planning 45 P P P P P P P P P P P P P P P advanced cities The London Plan 46 P P P P P P P P P P P P P Sydney Economic Development Strategy 47 P P P P P P P P P P P P P P 14 Case studies of six successful developing world cities 48 P P P P P P P P P This table is a product of a literature review, and reflects author’s interpretations of different approaches to LED strategy. Different authors use different language, when describing seemingly similar success factors, interpretation and matching of such instances is a product of author’s best judgment. Only factors that are mentioned in more than two sources were listed in the table Focus on three critical areas sis tend to be less successful.50 The examples of organizations that can take charge of the LED process include community In the previous section, we offered an overview of organizations, business associations or chambers of com- the parameters that, according to several sources of merce and local government departments.51 Another option evidence, are associated with good strategies. This is to use purpose-built collaborative entities, which allow section focuses on three specific elements of strat­ for a high level of flexibility in terms of the roles of different egies that, judging by the literature and the empir­ stakeholders. These institutions can be geared toward resolv- ical evidence, are identified as the most significant ing particular collaboration challenges specific to the local concerns for LED and CDS practitioners. Each of them context. Real-world examples of such entities include52: relates to a separate broad aspect of strategic planning (pre- conditions, content and implementation). They are: • Social Impact Project (a government-community-busi- ness-NGO partnership for sustainable development in 1. the role of public and private stakeholders in the Poland); development and the implementation of the city strategy (Preconditions); • The government-business partnership in Lontras, Brazil that has decision-making powers over the Local Sustain- 2. the role of analytics in strategy development (Content); able Development Plan; and • The government-private sector participatory planning 3. the sources of funding for strategy development and committee for sustainable growth in Ol Kalou, Kenya. implementation (Implementation). The citizens were informed of the challenges of the planning process and budgetary shortfalls, which led to a Who should take the lead in the strategic substantial increase in tax collection. planning and implementation process, and how should it be organized? Most of the LED and CDS literature starts with the premise of the importance of public-sector leader­ Most LED literature suggests that the public sector ship, but it also devotes significant attention to tech­ should lead the strategic planning process, but that niques of building partnerships with private-sector private-sector involvement both in planning and and other local actors. OECD research suggests that the implementation is crucial. However, the literature also development of new forms of partnerships should be consid- claims that there are no pre-set roles and that arrangements ered one of the key innovations in the LED field in recent de- should be flexible, reflecting the capacity of local actors and cades. (See Box 3 for the characteristics of good partnerships the nature of local networks. in LED.) However, the report is more nuanced, and does not suggest that all partnerships are good. It clarifies this point: In many cases, the LED approach is defined by its col­ “The best partnership is not necessarily the most inclusive. laborative nature. The World Bank Group’s Local Economic By contrast, successful partnerships tend to be based around Development Primer asserts: “By its nature, local economic a limited set of core partners whose strategic involvement development is a partnership between the business sector, is essential and who offer major or strategically significant community interests and municipal government. LED is usu- resources.”53 ally strategically planned by local government in conjunction with public- and private-sector partners. Implementation is Building a partnership with the private sector carried out by the public, the private and the non-govern- doesn’t guarantee success. There are plenty of exam- mental sectors according to their abilities and strengths.” 49 ples of failed partnerships. In South Africa, the model of This definition sums up several key ideas about the roles that a dedicated LED Unit/Department was commonly used, different actors play in the LED process, as will be discussed and was premised on the idea that local governments with in further detail below. wide networks of stakeholders would advance development within the municipality. Most LED initiatives had formalized The conventional LED wisdom suggests that, for a partnerships, most commonly with business, chambers of collaborative process to run smoothly, it must be commerce and/or educational authorities, but also with City underpinned by a well-designed, sustainable institu­ Improvement Districts, community groups and foreign agen- tional structure. Most of the LED literature recommends cies. However, in practice, this model suffered from a lack of that such collaboration and coordination bodies be designed clear objectives and a lack of leadership, because municipal- and established early on. A UN-Habitat study suggests that ities preferred to take the role of participants rather than of LED processes that are carried out on a project-by-project ba- facilitators.54 15 The notion of public-sector leadership and a key role The strategy-implementation structure should allow in partnership-building becomes problematic in low­ for some flexibility to suit the local context. There is no er-capacity environments. Here, local governments may one-size-fits-all organizational model for strategic economic struggle to structure the involvement of the private sector planning, given the variation in local conditions, the capaci- in a strategic-planning process. A study of CDS initiatives ties of key actors, and the relationships among those actors. in East Asia revealed that, while local authorities were eager A review of five strategic initiatives in South East Asia con- to engage the private sector, they were uncertain of how to cluded that “although there are standard methods and [although] proceed beyond involving the private sector in the provision supporting guidelines were provided, each of the five participating of infrastructure or in the quest for general advice. 55 cities prepared its CDS in its own way. . . . [The] actual implemen- tation has varied between cities. A successful CDS is one that is Case studies of six successful cities performed by the owned by the stakeholders, and, as no two cities are the same, World Bank Group suggest that a successful local­ different approaches are to be expected.” 57 The City Alliance ap- ly-initiated LED process is often led by private-sector proach similarly incorporates some flexibility, thus improving coalitions and can rely or informal networks and the process – and the institutional structure should always be connections. Coimbatore in India, Gaziantep in Turkey and seen as part of a continuing process. 58 (See Box 4 for exam- Bucaramanga in Colombia are examples of places where local ples of implementation from the Southern Mediterranean.) governments were not the leading force behind those cities’ very successful economic development efforts, which were Overall, the evidence on the public- and private-sector roles driven by continuing dialogue that largely relied on informal in the strategic planning suggests: links among stakeholders.56 Private-sector-led strategic eco- nomic-development initiatives at the city level are underrep- • LED methodologies usually imply that local govern- resented in the literature, and LED/CDS methodologies only ments should take the lead, because (in most cases) they allow for limited engagement of private-sector actors. ensure broader inclusion, participation and continuity. Cases in which the private sector has superior capacity and is well-positioned to lead LED are, with rare ex- ceptions, overlooked in the literature, while evidence Box 3: What makes a good partnership in LED collected from the cases that didn’t use the methodological guidance of development agencies shows that private-sec- • Strong community support. Resolution of prob- tor-triggered PPD can be a success. lems. • Private-sector participation is encouraged in the • Recognized and legitimated roles for each actor. form of consultations during the development stage Each actor must have a clear idea of the benefits and through coordination committees, but there is for them of this form of cooperation, and no one little clarity on ways to engage business in the implementation partner must be overly dominant. process. • Results-oriented partnerships. The partners should • It is recommended that the approach to strategy aim at defined goals. They should put their resourc- design and implementation be flexible. Even if rigid es in “a pool,” accept a certain leadership and create guidelines are offered, they are rarely followed in practice, a functional structure. especially because the capacity and attitudes of private- and public-sector actors vary greatly. • A degree of autonomy for the partnership, despite their public funding element. Often, partnerships • Institutional structures represent the most constant com- will choose to adopt the form of a “separate legal ponent of any strategic-development effort. Policies, inter- entity,” a non-profit-making body managed like a ventions and actors may change in response to changing private company. conditions, but strong and visible institutions, under- pinned by partnerships, is what makes strategies • A permanent communication system among the endure. It also is important to mention that some strategies partners. can often rely on informal structures and institutions. • Networks of committed individuals, not merely networks of organizations. • Professional management and transparent struc- ture. Source: Goldman, I., Rogerson, C., & Frey, A. (2005). Investigation of Pro Poor Local Economic Development in South Africa Research Partners :, 27(October). 16 What analytical tools should be used? A strong analytical foundation is important for city Box 4: Strategy implementation structures strategies, but it needs to go beyond data collection and it needs to be well-linked to the strategy-devel­ A review of CDS in the Southern Mediterranean region offers opment process. The evidence from the LED case studies a breadth of examples of different implementation arrange- suggests that the analytical components of city strategies ments, illustrating that there are few fixed rules for the are often the weak links. Box 5 offers some examples of this design of an LED structure. factor. • In Tetouan, Morocco, the Morocco Urban Forum (a Most approaches to LED and CDS include an analyt­ public-private sector association) acted as the executive ical component. Overall, a combination of qualitative and leader. quantitative assessments is common, and a SWOT analysis • In Sfax, Tunisia, two different attempts at CDS were is the most widely used tool for data aggregation. However, led by the local mayor and the National Federation of analytical techniques vary significantly in accordance with Tunisian Cities. the focus of a given methodology (e.g., poverty alleviation or economic growth). • In Settat and EL Jadida, CDS efforts were led by city gov- ernors and were implemented by teams of local officials. From the review of LED methodologies mentioned above, it appears that there is more attention given • In Alexandria, tree committees were set up for each of to data collection than to the process for structuring the pillars of the CDS, useing external consultants to data in a way that best informs and supports deci­ provide expertise and training to improve capacity. sions. All the methodologies of the studies in our review include analytical components that combine the use of pri- • In Aleppo and Ramalah, CDS benefited from the support mary and secondary data, both qualitative and quantitative. of GIZ, an association of German development agencies. However, their primary focus is often on methods of data collection rather than on analytical tools. There is less detail Source: Urban Development Strategies in the Mediterranean. (2011). For on the process of converting data points into decisions and a full classification of implementation structures see The User’s Guide to Implementing City Competitiveness Interventions, developed by the CCKB priorities. A SWOT analysis is the most widely suggested ag- team. gregation tool, and more sophisticated analytical techniques are rarely mentioned. The depth of analytical exercises often reflects the • A good analytical process is not defined by the use of specific capacity of local governments. Secondary cities in techniques, but rather by an adherence to the key stages of the lower-income countries tend to struggle the most. analytical exercise: data collection, aggregation, analysis that This can clearly be seen in the case of Kenya, where the goes beyond purely descriptive processing, and the interpreta- County Integrated Development Plans (CIDPs) of Nairobi tion of results that can inform selection of strategic priorities. and Mombasa – the country’s two largest cities and economic All of these factors can only be possible if strong technical hubs – include much more sophisticated and detailed analyti- experts are available. cal exercises than do the strategies of smaller counties.59 • However, in developing-country environments, analytical Examples of the city strategies of advanced cities tasks are often implemented poorly due to two main factors: show that the analytical process should be a perma­ lack of data and lack of technical capacity. This leads to the nent function. In New York, London and Sydney, economic following trends in the existing city-strategy cases from performance is monitored and strategies and priorities are low-income countries: re-evaluated on an annual basis, even though the overarching strategic development priorities remain unchanged. -- Focus on collecting data and lack of focus on analysis; -- Weak links between analysis and strategies, and analysis In addition, world-leading cities use future-foresight for the sake of analysis. exercises, as well as analysis of current situation and -- Analysis is often outsourced, which means that the lessons from the past. London’s plan uses multi-scenario analytics can’t be performed continuously throughout forecasts to prioritize interventions. Sydney’s strategy dis- the lifecycle of a strategy. This highlights the need for cusses likely global trends that will affect the city. New York’s building local technical capacity for data analysis in plan looks into the growth potential of individual sectors. In order to make data analysis a permanent function of city summary, the following conclusions can be made about the administrations. analytical components of LEDs: • Examples of world-leading cities show that the analytical • There is a consensus about the crucial importance of thorough process should not be seen as a one-off exercise but should be a analytics. continuing process that combines tracking the current state of the economy with forecasting potential events. 17 How should a strategy be funded? The review of evidence has found a broad range of Box 5: Analytical shortcomings of CDS and examples of funding mechanisms that can be used for LED strategies – some examples LED strategies. For example: • ADB study of CDS in small cities in Asia: “Most • In EU countries, European grants play a major role in funding city stakeholders participating in the RETA strategy development and implementation. However, in most agreed that a CDS should address the issues of cases, national and municipal budgets contribute as well.50 economic development and poverty reduction. However, many of the . . . cities had neither • In South Africa, the funding for strategies predominant- analyzed the economic base nor made ap­ ly comes from public budgets, and there is a large gap propriate projections of economic activity. between large and small cities. Resources available to gov- Development prospects were merely based ernment LED units ranged from R100 000 in Umhlatuze on what was thought to be likely and not (R0.3 per capita) to R51.8 million in Cape Town (R15 per on hard data.” In general, the analysis part capita) in 2004-5 – which is 45 times more per capita.61 of the CDS was inadequate. Very little data on There is clear gap in financing of the operations of LED the socioeconomic and physical aspects of the units between the smaller cities and the larger ones.62 city, and the likely changes, were collected and analyzed. Except for overall population projec- • In the Southern Mediterranean, city strategies offered tions, no estimates of future economic activity good examples of combining various funding sourc- or demand for services and utilities were made. es. Alongside local budget funding, certain strategies SWOT analyses were based on incomplete data proposed projects that would be implemented if funding on current conditions within the city and on from international donors was secured (e.g., Alexandria), likely external (national or regional) influences while others included sectoral projects that were to be on growth. In some cities, this led to a number implemented as part of national programs funded by na- of problems in identifying and focusing on real tional ministries (e.g., Settat, El Jadida, Tetouan, Sfax).63 concerns and then prioritizing problems and • In Southeast Asian countries, secondary cities tend to action areas.” struggle with identifying funding sources for LED, and • The UN-Habitat review of CDS in Bamako, Mali thus strategies sometimes lack detailed funding plans. suggests that, even though the process included Local authorities appear to be overly reliant on external a long analytical phase, the final outcome was sources of funding, while the opportunities to raise insufficient to inform the long-term program funds locally were underused.64 because it offered just a compilation of data Overall, LED and CDS reviews have tended not to focus rather than a strong analysis. on the issue of funding, yet funding is often mentioned • A GHK group review of CDS in a number of cities as being crucial to successful implementation. A review in South America, Africa and East Asia highlight- of a large number of cases where problems with the implementa- ed the need for better analytics to inform choic- tion of (or even the termination of) the strategy were a result of es: “However, there is a need to bring more the disappearance of funding. Most reviews mentioning funding rigor into the decision-making processes; thus recommend securing funding upfront and linking strate- good technical information is important in order gy-implementation plans to cities’ future budgets. However, the to make informed choices and understanding techniques for doing so are often not clearly addressed. tradeoffs. In a number of the case-study areas, A lack of clear funding sources and strategies for key problems related to identifying and focusing fundraising often means that the strategy becomes on what matters, and then prioritizing problems predominantly a “wish list” of ideas that are likely to and action areas.” remain merely aspirational. This can be extremely dam- Sources: Asian Development Bank. (2004). City development strat- aging for any city strategy: Stakeholders become disillusioned egies to reduce poverty. UN-Habitat. (2002). City development and drop their support for the strategic-development process strategies: Lessons from UMP/UN-HABITAT Experiences. Nai- when they realize that words are not followed by action. robi: UN-HABITAT. Cities Alliance. (2005). The Impacts of City Development Strategies. GHK Group of companies. (2000). City Given the emphasis on a strong sense of ownership among Development Strategies (CDSs) Taking Stock and Signposting the Way Forward. United Cities and Local Governments, & Centre for local actors, it is advisable that local funding sources (public Medeteranean Integration. (2011). Urban Development Strategies or private) be seen as a priority for a city strategy. The local in the Mediterranean. funding is likely to increase both stakeholder engagement in implementa- tion and accountability for spending. However, secondary cities, particu- larly in low-income countries often cannot sustain a strategy implemen- tation process without external support – so this recommendation will 18 need to be balanced by the realities of what is financially feasible. A checklist for a good city strategy The findings of this chapter can be summarized as a checklist of 12 key elements that city strategies in devel­ oping-world cities should aim to include. While these principles are mostly intuitive, they offer a good first-level filter for evaluating the quality of strategic documents. We group them as follows: Preconditions Implementation üü Commitment and guarantees from the leader of the city üü A detailed yet flexible implementation plan and a struc- administration. tured monitoring and evaluation process. üü Engaging the private sector (on development and üü An institutionalization mechanism, to protect the implementation stages) and civil society in the strategy-devel- strategy from political and economic changes. opment process early on üü A stable stream of funding and clear links to the budget- üü Focus on local institutional structures and their development, ary process that will ensure the implementation of strategic and particularly on local-government capacity-build- initiatives for years to come. ing, which is most relevant for low-income countries. üü The ambition to establish a recurring economic-development üü Clear links between city strategic-planning process and the planning cycle. national policy context, along with the support or ap- proval of regional and national governments. Content üü High-quality analytics that follow the full cycle from data collection to processing, analysis and interpretation, include some form of future foresight that can inform the priorities of the strategy. üü Strong grounding in the continuing local development process (leveraging successful initiatives and using existing networks and institutions), thorough an understanding of the local conditions and stage of development rather than aspirations. üü A vision for the city’s future and a road map for achieving it through strategically prioritized interventions and clear measurable targets. üü Balance between long-term goals and short-term interven- tions that can lead to quick results, thus helping reinforce public support for the strategy. 19 Concluding remarks: Improving Strategic Planning for Cities LED, CDS and other methodologies have become widely used in developed and developing countries for strategic-planning exer- cises. Evidence collected in this paper shows that, while the use of these approaches has been beneficial for cities, there are gaps that need to be addressed by donors and development partners to make them more efficient. Strengths Gaps • LED and CDS methodologies help cities focus on condi- • LED and CDS methodologies paid a lot of attention to tions that are unique to each city, and help them design participatory approaches, ways of developing partner- interventions that reflect each city’s capabilities and that ships and developing ownership across various groups fit with their networks of stakeholders and institutional of local actors. However, they often provided scant structures. guidance on analytics, on prioritization and on costing, budgeting and funding initiatives. • LED and CDS initiatives have been useful in facilitat- ing the greater inclusion of businesses and community • Within the recommendations of LED and CDS method- groups into the strategic-planning and process and into ologies on pro­cess and institutional structures, the role city governance overall. of the public sector tends to be emphasized strongly, while the role of the private sector is rarely expanded beyond consultations. Greater attention can be paid to mechanisms of engaging private sector in decision mak- ing and implementation, and even allowing it to lead the strategic planning exercise. • The role of national government in designing the frame- work for city strategies is often overlooked. That role deserves greater attention. Poor national frameworks for city strategies can often distort city-level initiatives. • The mainstream understanding of city strategies remains rather rigid and restricted. In most cases, it implies government leadership and the presence of a written strategy document. city strategies should evolve to incorporate the possibility of a more informal pri- vate-sector-driven process (which is illustrated by the processes in Bucaramanga and Coimbatore). Through such processes, formal strategic documents can be replaced by a shared vision of a city’s future and action plans. Implementation structures can be advanced through informal networks that draw on the strengths of personal connections. • An improved version of LED and CDS could be based on offering menus of options for every stage of the strategy development and implementation process, while paying much more attention to analytical and prioritization techniques, to funding options, and to more flexible institutional frameworks that are open to more informal planning and implementation mechanisms. 20 Notes Mayor of New York. (2009). The Five Borough Economic Opportunity 26 Plan; Mayor of London. (2010). The Mayor’s Economic Development Strate- 1 World Bank Group (forthcoming): “Competitive Cities for Jobs and gy for London Growth: What, Who and How?” 27 Mayor of London. (2010). The Mayor’s Economic Development Strategy 2 Rodríguez-Pose, A., & Gill, N. (2003). The global trend towards devolution for London. Mayor of London. (n.d.). The London Plan.; City of Sydney. and its implications. Environment and Planning C: Government and Policy, (2013). Economic Development Strategy. Sydney’s Economy: Global City, 21(3), 333–351. Local Action. 3 http://www.businessdictionary.com/definition/strategy.html#ixzz3Wq- 28 Mayor of New York. (2009). The Five Borough Economic Opportunity s5UMvh Plan.; Mayor of New York. (n.d.). DIVERSE CITY : NYC Economic Diversifi- cation Program; New York Regional Economic Council Members and Staff. 4 For instance: Cities Alliance (2005, The Impacts of City Development (2011). New York City Regional Economic Development Council Strategic Strategies) identifies the following sets of indicators of success of City Plan. Development Strategies (CDS): Shelter • Social development and pov- erty reduction • Environmental management • Economic development • 29 Kulenovich Z.K., Cech, A (2015) Six Case Studies of Economically Suc- Governance. A different study commissioned by the Cities Alliance (Kim, cessful Cities. K. (2002). China CDS Performance Indicators Manual, (December)) has 30 Steinberg, B. F. (2002). Strategic urban planning in Latin America Strate- developed a way to evaluate the success of CDS efforts in China. Their gic Urban Planning in Latin America. methodology, developed for three Chinese cities suggests tracking at least 31 Rasoolimanesh, S. M., Jaafar, M., & Badarulzaman, N. (2014). Exam- 20 indicators in four broad categories, only one of which relates to economic ining the contributing factors for the successful implementation of city performance. development strategy in Qazvin City, Iran. Cities, 41, 10–19. doi:10.1016/j. 5 Cities Alliance. (2005). The Impacts of City Development Strategies. cities.2014.05.002 6 Cities Alliance. (2006). City development strategy guidelines : driving 32 Kulenovich Z.K., Cech, A (2015) Six Case Studies of Economically Suc- urban performance (September 2005). cessful Cities 7 See Table 1 for references to all of the literature sources reviewed. 33 World Bank (Forthcoming) Kenya Urbanization Review 8 GHK Group of companies. (2000). City Development Strategies (CDSs) 34 Swinburn, G. (2006). Local Economic Development: a Primer. Taking Stock and Signposting the Way Forward, 44(July). 35 Cities Alliance. (2006). City development strategy guidelines : driving 9 GHK Group of companies. (2000). City Development Strategies (CDSs) urban performance, (September 2005). Taking Stock and Signposting the Way Forward, 44(July). 36 UN-Habitat. (2005). Development through Strategic Planning Volume 1 : 10 Kulenovich Z.K., Cech, A (2015) Six Case Studies of Economically Suc- Quick Guide (Vol. 1). cessful Cities. 37 OECD. (n.d.). Best practices in local development, 1–128. 11 Mayor of London (2010)The Mayor’s Economic Development Strategy for 38 GHK Group of companies. (2000). City Development Strategies (CDSs) London Taking Stock and Signposting the Way Forward, 44(July). 12 Kulenovich Z.K., Cech, A (2015) Six Case Studies of Economically Suc- 39 Steinberg, B. F. (2002). Strategic urban planning in Latin America  :, (22). cessful Cities. 40 International Labour Organization. (2007). Local Economic Develop- 13 Roles of private and public actors in the strategic planning process are ment for Employment Generation Peace and Security (approaches, tools and discussed in the next chapter. good practice used in the Philippines). 14 Tijmstra, S., & Rodriguez-Pose, A. (n.d.). Local Economic Development as UN-Habitat. (2002). City development strategies :Lessons From UMP/ 41 an alternative approach to economic development in Sub-Saharan Africa. UN-HABITAT Experiences. Nairobi: UN-HABITAT. 15 Rasoolimanesh, S. M., Jaafar, M., & Badarulzaman, N. (2014). Exam- 42 Asian Development Bank. (2004). City development strategies to reduce ining the contributing factors for the successful implementation of city poverty development strategy in Qazvin City, Iran. Cities, 41, 10–19. doi:10.1016/j. cities.2014.05.002 43 United Cities and Local Governments, & Centre for Mediterranean Inte- gration. (2011). Urban Development Strategies in the Mediterranean. 16 Asian Development Bank. (2004). City development strategies to reduce poverty. 44 Rasoolimanesh, S. M., Jaafar, M., & Badarulzaman, N. (2014). Exam- ining the contributing factors for the successful implementation of city 17 Urban Development Strategies in the Mediterranean. (2011). development strategy in Qazvin City, Iran. Cities, 41, 10–19. doi:10.1016/j. 18 More detail on role of analytics in strategy making is offered in the next cities.2014.05.002 chapter 45 Mayor of New York. (2009). The Five Borough Economic Opportunity 19 Cities Alliance. (2006). City development strategy guidelines : driving Plan.; Mayor of New York. (n.d.). DIVERSE CITY : NYC Economic Diversifi- urban performance, (September 2005). cation Program; New York Regional Economic Council Members and Staff. 20 GHK Group of companies. (2000). City Development Strategies (CDSs) (2011). New York City Regional Economic Development Council Strategic Taking Stock and Signposting the Way Forward, 44(July). Plan. 21 Kulenovich Z.K., Cech, A (2015) Six Case Studies of Economically Suc- 46 Mayor of London. (2010). The Mayor’s Economic Development Strategy cessful Cities. for London. Mayor of London. (n.d.). The London Plan. 22 GHK Group of companies. (2000). City Development Strategies (CDSs) City of Sydney. (2013). Economic Development Strategy. Sydney’s Econo- 47 Taking Stock and Signposting the Way Forward, 44(July). my: Global City, Local Action. 23 Harris, N. (1990). Urbanization, economic development and policy in 48 Kulenovich Z.K., Cech, A (2015) Six Case Studies of Economically Suc- developing countries, (19). cessful Cities. 24 Tijmstra, S., & Rodriguez-Pose, A. (n.d.). Local Economic Development as 49 The World Bank, & Swinburn, G. (2006). Local Economic Development: an alternative approach to economic development in Sub-Saharan Africa. a Primer. 25 Kulenovich Z.K., Cech, A (2015) Six Case Studies of Economically Suc- 50 Rasoolimanesh, M., & Badarulzaman, N. (n.d.). A review of city develop- cessful Cities. ment strategies success factors, 62–78 21 51 The User’s Guide to Implementing City Competitiveness Interventions, 59 Mukim, M., Sivaev, D (forthcoming) County Competitiveness in Kenya, developed by the CCKB team offers a full classification of various imple- In World Bank(forthcoming)Kenya Urbanization Review mentation structures that are usually used at a city level. 60 Tern, K. W., & Kingdom, U. (2011). Good policies and practices to tackle 52 UN-Habitat. (2005). Promotin Local Economic Development through urban challenges, 33(July). Strategic Planning: Vlolume 4: Action Guide (Vol. 4). 61 R denotes the South African Rand currency. US$ 1 was equal to approxi- 53 OECD. (n.d.). Best practices in local development, 1–128. mately R7 in 2003-04. 54 Hindson, D., & Vicente, V. (2005). WHITHER LED IN SOUTH AFRI- 62 Goldman, I., Rogerson, C., & Frey, A. (2005). Investigation of Pro Poor CA? Local Economic Development in South Africa Research Partners :, 27(Oc- 55 Asian Development Bank. (2004). CITY DEVELOPMENT STRATEGIES tober). TO REDUCE POVERTY. 63 Urban Development Strategies in the Mediterranean. (2011). 56 Kulenovich Z.K., Cech, A (2015) Six Case Studies of Economically Suc- 64 Asian Development Bank. (2004). City development strategies to reduce cessful Cities poverty 57 Asian Development Bank. (2004). City development strategies to reduce 58 Cities Alliance. (2005). The Impacts of City Development Strategies. 22 23 Funding for the companion papers and main report was provided by CIIP Competitive Industries and Innovation Program Financed by in partnership with www.theciip.org Find the companion papers and main report at www.worldbank.org/competitivecities