Local Economic Development Planning

According to Levy, the term planning is quite general. Additionally, the term “Local Economic Development Planning” (LEDP) lacks a specific definition since its meaning differs depending on the goals and objectives. However, economists define economic development as policies and actions that help in prompting goals within a specific geographic area. Levy defines planning as a process that helps to improve the quality of decision-making (1). In this case, one can define local economic development as the development strategies and policies that enhance goal fulfillment at the local level (Levy 11). Inherently, planning works towards implementation of these strategies. Local economic development has been one of the main sources of development and growth in most local communities. The Declaration of Policy in 23 USC 101 argues that transportation plays a major role in promoting economic growth, improving conditions of the environment and sustaining quality of life in the region.

Importance of Local Economic Development Planning

In his book, Levy explores some of the benefits of urban planning by generalizing that it involves making new developments in urban transportation planning, policy, and technology (3). Surveys conducted by the government show that many cities have gotten into the game of local economic development planning in recent decades. This is after evaluating the role that this development planning has played in making local communities better places in regards to social and economic development (Levy 16). As a result, the concerned authorities in these cities have implemented economic development planning. The government believes that with experienced coordination, the development planning will work well in boosting growth in the cities. 

Additionally, local economic development planning has brought quite many benefits for the local communities, and this is the main reason why cities are interested in doing the same. One of the main benefits of local economic development is poverty alleviation. Poverty is one of the main problems affecting the local communities. In the United States, 75% percent of poor cities live in the outskirts and not close to the urban centers (Robinson 44). The main reason why Americans engage in rural-urban migration is in order to escape poverty. LEDP has played a significant role in reducing poverty in the area through creation of employment and social services to the poor residents. To eliminate poverty is one of the main objectives of economic planning in the United States’ local communities.

According to Levy’s book, another benefit of LEDP is that it promotes people’s participation in development. The economic plan that is set by the concerned agents helps to stimulate people in the local community to take part in the development process (23). The reason is that without the involvement of community members, it is impossible to implement the set strategies towards development. LEDP comes up with effective programmers to get benefits for those people directly or indirectly. People’s participation in their own development programs helps in bringing a sense of ownership to the participants.

Economic growth is the third important factor of local economic development planning. Actually, it is one of the main objectives of LEDP since the final intention is to enhance economic growth in the society. As was stated earlier, most of the local regions in the United States and other countries all over the world are poor; hence, the governments have come up with these LEDP strategies in order to promote economic development (Stimson et al. 33). In addition, the important aim of planning is in order to increase the economic growth of the communities, since with this, it is possible to attain and maintain economic prosperity. Therefore, the first plan has adopted the objectives of sustained rate of economic growth. 

Additionally, most local authorities implement LEDPs in their communities in order to reduce regional imbalance. The problem of regional imbalance has affected many societies, but there has not been enough efforts made in bid to eliminate the issue. However, local authorities are willing to reduce he vast economic imbalance between various regions of the countries and between urban and rural areas (Stimson et al. 39). This form of imbalance has caused migration of resident to urban regions. Thus, the main importance of planning is to curb this imbalance by implementing effective plans and programs to non-developed communities and those that are far from development. 

How to Promote Economic Growth and Development in the Cities

In order for planners to promote economic growth and development in the cities, they must implement effective strategies. Specifically, there are certain tools that planners can use to promote LEDP by examining the economic effects of projects and plans. The first strategy would be using the tool of Economic Impact Analysis (EIA) (Koven and Lyons 53). This tool explores the effects that a given a project or policy has on the economic relationships within that economy. These analyses are normally performed at different levels of analysis, including nationally, regionally, or even locally. For this tool, the planners will use economic models, which focus on economic transactions within the economy, and helps in the estimation of economic outcomes. According to Koven and Lyons, such economic models are based on input and output models, which focus on the relationship among industries in order to evaluate the effects of an investment. The planners are also aware that these effects can wither be direct, indirect and induced. It is recommended to use the tool of Economic Impact Analysis (EIA) since it will boost LEDP in the targeted cities.

Besides using tools, planners can also promote LEDP through developing the transportation sectors. Infrastructure in this case is that of rods and rails, since the two are the most common forms of transportation in the inner cities (Blakely and Leigh 24). The economic goals that are supported by transportation polices are determined by the city priorities or needs that require urgent attention. The video “Tiger by the Tail” explains how these economics specifically focus on the needs identified by decision makers who are in charge of the city. Therefore, a reliable form of transportation can promote EDP within specific areas such as an identified enterprise zone.

Conclusion

Local Economic Development Planning (LEDP) has played a significant role in promoting economic growth in the local communities. Levy’s book helps in exploring the issue of development planning at the local level and in the cities. Most local communities are poor than the urban areas due to unequal distribution of resources. Some of the common benefits of LEDP are reduction of poverty, economic growth, elimination of regional imbalance and community participation. This has encouraged many cities to do the same, since the planning has boosted growth in local regions. For LEDP to be effective, it is imperative for a community to identify and consider its own economic strengths, weaknesses, opportunities and threats. Using LED strategic planning will offer these societies the chance to work together to improve the local economy and promote competitiveness; hence, encouraging sustainable and inclusive growth. Therefore, it is recommended that communities implement these development plans in order to flow with the current rate of development.

References

Blakely, Edward J, and Nancey G. Leigh. Planning Local Economic Development: Theory and Practice. London: SAGE, 2009. Print.

Koven, Steven G, and Thomas S. Lyons. Economic Development: Strategies for State and Local Practice. Washington, D.C: ICMA Press, 2010. Print.

Levy, John M. Contemporary Urban Planning. Upper Saddle River, N.J: Pearson Education, 2013. Print.

Robinson, David J. Economic Development from the State & Local Perspective: Case Studies and Public Policy Debates. New York City: Palgrave Macmillan, 2014. Web.

Stimson, R J, Roger Stough, and Brian H. Roberts. Regional Economic Development: Analysis and Planning Strategy. Berlin: Springer, 2006. Web.