Policy for Local Economic Development Promotion

The formation of institutional structures like the National LED Advisory Council and the National LED Technical Committee paved the way for the formulation of a national policy to facilitate and/or guide local economic development promotion in the country. Like LED promotion itself, policy making is also a process characterised by a series of activities that stakeholders have to go through or undertake in order to get it formulated, accepted or endorsed and implemented. Kingdon (2003: 2) sees policy making to be consisting of a set of processes including at least, “(1) the setting of the agenda, (2) the specification of alternatives from which a choice is to be made, (3) an authoritative choice among those specified alternatives, and (4) the implementation of the decision.” This is the classical linear model, which depicts policy making as a set of activities structured to “flow in a logical sequence: from identification to formulation, to implementation, to evaluation” (Brock, et al, 2001: 2). Although the linear model of policy making has widely been employed, its relevance has been discarded (see Sutton, 1999; Cornwall and Gaventa, 2000). The linear model of policy making has been criticised for its failure to capture complex social processes such as contestations or negotiations among the range of actors involved that ultimately shape the outcome of the policy (see Sutton, 1999; Cornwall and Gaventa, 2000). The linear model of policy making is not only too simplistic (see Grindle and Thomas, 1991; Brock, et al 2001), its stages are not

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iterative, and thus lacking the flexibility to cater for emerging issues that might arise at a later stage of policy process. It also closes the door to broad-based stakeholder participation after minimal consultations, usually at the very early stages of the policy construction stage. However, despite these criticisms, the linear policy-making model still remains the preferred choice of many policy makers.

The process of formulating a national LED policy in Ghana is a national initiative, with support from the United Nations Development Programme. As indicated earlier in chapter four, the UNDP has since 2009, supported national efforts aimed at mobilising actors at the national level to start the process of institutionalising and up-scaling the local economic development approach or initiatives in the country. The formulation of a national LED policy is one key step taken in the LED institutionalisation process that got the support of the United Nations Development Programme. To kick start the policy process, the National LED Technical Committee, was among other things, constituted as a policy community – a group of “specialists in a given policy area” (Kingdon, 2003: 117). As indicated earlier, the task of formulating a National LED policy was one of the core functions of the National LED Technical Committee. It was expected that members of this policy community (National LED Technical Committee) with their diverse background and ideas would work collectively, float ideas, which in the words of Kingdon (2003:117) will “confront one another and combine with one another in various ways” to shape the policy agenda. However, this ended up being a task for only one of the member agencies that constituted the National LED Technical Committee – the Institute of Local Government Studies (ILGS).

The simple reason why ILGS was mandated to formulate the National LED Policy for or on behalf of the National LED Technical Committee was that the committee members are said to be very busy people at their respective organisations who could not spare some good time to participate in the ‘laborious’ policy making process. This created a vent for the emergence of the Institute of Local Government Studies (ILGS) as a policy consultant - assuming responsibility for formulating a national LED policy. Although not a national policy making institution, the ILGS as indicated in chapter four has been responsible for building the capacity of local government staff in the country. The ILGS has also hosted a series of LED workshops in the country over the years. In addition, as also indicated in chapter four, the ILGS has also become the premier institution of postgraduate studies in Local Economic Development in Ghana. Besides, the ILGS is a semi-autonomous institution of the Ministry of Local Government and Rural Development, the Ministry responsible for coordinating LED activities in the country. These attributes made the ILGS an ideal choice for the task of formulating a National LED policy.

One key feature of the LED policy process was the attempt made to promote a national dialogue in the LED process. This took the form of a national stakeholder conference. The first

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and only known National Conference on Local Economic Development was held in Accra in December 2010 under the theme: “Policy Implications of Local Economic Development for Accelerated Decentralisation.” The conference was organised by the Ministry of Local Government and Rural Development in collaboration with the United Nations Development Programme and the International Labour Organisation; and supported by the Local Government Service Secretariat and the Institute of Local Government Studies. It was intended to mobilise actors on a national scale and to build consensus on the way forward in the promotion of local economic development in the country.

This conference was part of efforts to expand the LED “policy community” beyond the National LED Technical Committee and its ‘policy consultant’ – the ILGS. As Cornwall and Gaventa (2000: 55) point out, “attempts to broaden inclusion in policy-making have characteristically involved the use of consultative mechanisms to seek greater citizen involvement in generating information to feed into policy formulation.” The conference drew stakeholders from the Presidency, Ministries, Departments and Agencies, International Development Agencies, District Assemblies, and private sector representatives among others. The main objective of the conference, as captured in the conference report was to “establish a preliminary policy framework that highlights the institutional and policy imperatives of the ongoing decentralisation exercise for the promotion of local economic development as a viable strategy for national development” (see Draft Conference Report, 2010). The December 2010 conference sought to establish basis for a national policy and institutional context for the promotion of local economic development in the country through a broad-based stakeholder consultation.

The conference was at least successful in drawing stakeholders from various organisations, and places together to share experiences and to deliberate on the way forward for the promotion of local economic development in Ghana. But the use of such ‘participatory approaches’ does not usually prevent the imposition of policies or ideas on local groups by their promoters, (Long, 2001). Similarly, as Brock, et al (2001: 2) rightly point out “a significant feature of the linear model is a focus on agenda setting and on policies as statements that are based on determinate decisions taken by policy makers.” Characteristic of the linear model of policy making, the national LED conference was preceded by the presentation of a concept paper by the policy consultant, the Institute of Local Government Studies. The policy consultant in its concept paper for instance also proposed a seven-step linear process, as shown in Table 5.8 to formulate the national LED policy. This concept paper was also to form the frame of reference for the conference.

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Table 5.8: Timelines for LED Policy Formulation

Task Time

Frame

Output Development of a working

document/discussion paper

10 days Working document/discussion paper

Organisation of scoping and ownership/consensus building workshop

5 days Worksop brief

Invitation letters Workshop report

Refined working document Drafting of policy components

and development of framework

20 days Minutes of thematic group meetings

Inputs/recommendations of working groups

First draft of LED policy framework Circulation of draft LED policy

document for inputs

10 days Inputs for final draft of LED policy

framework Organisation of National Advisory

Committee review/validation workshop

5 days Workshop report

Participants lists

Inputs for second draft of LED policy framework

Finalisation of policy framework 5 days Final draft of LED policy framework Publication, launch and

dissemination

20 days Final document

Media report

Electronic version of policy framework Source: ILGS, (undated)

Similarly, prior to the conference, the policy consultant also drafted an outline for the proposed National LED policy. As shown in Table 5.9, the policy consultant identified the key elements that should constitute the National LED policy framework. It was expected that participants at the national LED conference will make input into the draft policy framework or outline presented by the policy consultant. In line with this, the conference participants were constituted into about five groups to discuss or determine what should go into each policy area. Per the conference report, the five themes that were worked on by the conference participants include, infrastructure, planning, capacity building, financing, and institutional arrangement for promoting local economic development (see Draft Conference Report, 2010). In essence, the presentation of the concept paper and a draft outline of what should constitute the LED policy can best be described as an attempt by the policy consultant to enrol the participants into their ‘project’. As Long (2001: 19) notes “… knowledge processes are embedded in social processes that imply aspects of power, authority and legitimation; and they are just as likely to reflect and contribute to the conflict between social groups as they are to lead to the establishment of common perceptions and interests.” But as Grindle and Thomas (1991) point out, “policy changes often impinge on the interests of important groups in society or the self-interests of

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the public officials who must adopt them.” As such, broad-based stakeholder participation in the policy making process is important in promoting policy acceptance.

Table 5.9: Proposed LED Policy Outlook, drafted by ILGS

Theme Issues

Introduction -Global trends affecting LED -National context for LED

-Contextual definition of LED concepts Guiding Principles -National vision for LED

-Development principles -Gender -Environment -Poverty reduction -Policy objectives -Expected outcome National enabling

context for LED

-Policy context for LED

-Local government considerations -Macro-economic policies

-Enabling laws and institutional coverage for LED Vision for local

economies

-Characteristics of local economies

-Comparative advantages and competitiveness of localities

-Unique challenges Policy thrust -Competitiveness

-Leadership and governance -Investing in communities

-Primary focus of District Assemblies

-Sustainable development community investment Role of District

Assemblies and other stakeholders

-Specific roles of various actors Government strategy -Increased investment

-Focus of the state

-Good governance and service delivery -Spatial development

-Business infrastructure development Approaches to LED -Partnership-building

-Strategic planning

-Knowledge management Implementation

approach

-Institutional arrangement

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-Issues on funding -Investing in LED

-Existing and potential schemes for LED -Role of saving and sharing

Source: ILGS (undated)

Interestingly, the conference proceedings were dominated by a litany of speeches from key national actors such as the Policy Advisor of the President, Chairman of the National Development Planning Commission, the Country Representative of United Nations System in Ghana, and the Minister of Local Government and Rural Development. The speeches were complemented by what was termed as the presentation of “technical papers” by officials of the National Development Planning Commission and the Institute of Local Government Studies, the policy consultant (see Draft Conference Report, 2010). These speeches and the presentation of technical papers clearly demonstrate the dominance of the national level actors, particularly the policy consultant in the LED policy making process in Ghana. As Brock, et al (2001: 4) point out, when certain actors are given privileged roles, “they may use their leverage to open or constrict spaces for the engagement of others.” But as Cornwall and Gaventa (2000: 55) point out “the making and shaping of policy involves more than acting on information that is provided to policy makers.” Although the stakeholders at the national LED conference had an opportunity to work on the various components of the policy framework proposed by the policy consultant, the degree to which their inputs contributed to shape the LED policy agenda can hardly be determined.

Clearly, the initial policy outline provided by the policy consultant was more theoretical and lacking a clear focus. Although participants at the national LED conference were able to make an input to the outline, much is still desired in giving it a clear focus. The two-day national conference organised in Accra was also to be the first and last time that some of the actors like the District Assemblies were participating in discussions regarding the formulation of a national local economic development policy in the country. In other words, the single national LED conference served as the entry and exit point for some of the LED actors, particularly the District Assemblies who are the ultimate implementers of the LED policy. Although some of the District Assemblies participated in the December 2010 LED conference, the situation on the ground, particularly at the district level is a reflection of ignorance regarding what constitute LED and its policy. Many officials of the District Assemblies including the District Planning Officers still do not have a firm understanding of the LED concept, its process, and most importantly, the financing mechanisms for LED in the districts. In the LED pilot districts, they are currently looking up to the National Development Planning Commission for direction and guidance at every stage of their LED ‘experimentation’ process, particularly at the

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implementation stage where the District Assemblies are expecting funds from Accra to implement their LED initiatives.