Territorial (local) development interventions

Conditions at territorial level are quite different, especially when it comes to rural and urban settings; therefore, it is not possible to prescribe a one- fit-for-all intervention. What is presented in this section is a set of blanket interventions that can be unpacked when one wishes to apply them to a ter- ritorial-specific condition.

Four interventions to promote territorial development are proposed here. The first is related to territorial livelihood analysis to identify various groups existing in a certain locality and to match them with appropriate interven- tion. The second is as the consequence of the first: to select appropriate terri- torial local economic development (LED) initiatives. The third is to enhance

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effective decentralization to allow a shift from government to governance. The fourth has to do with enhancing territorial competitiveness.

10.5.1 Territorial livelihood analysis

A detailed investigation of the living conditions of the people in the local- ity of concern is the starting point of any development intervention. With the use of the sustainable livelihoods approach presented above, this entails understanding the vulnerability context of the population, their assets, and their livelihood strategies, and the structures that guide or provide a context in which all the livelihood processes take place. Thorough understanding of these aspects facilitates the identification of the limiting factors and devel- opment-promoting factors prevailing in a given territory. This understand- ing will further assist planners to determine the disadvantaged groups and groups that can cope with the vulnerability context prevailing in the planning area. Disadvantaged groups require different interventions from the groups that are able to cope with the vulnerability context. Therefore, the identifica- tion of these groups is very important in an effort to determine which kinds of interventions are required for which group.

For planners to understand the living conditions of the population based on the livelihood framework, they must conduct research focusing on the five elements of the framework (i.e. vulnerability context, assets, structures and processes, livelihood strategies, and outcomes). They should prepare a survey and participatory guiding tools, using the elements of the livelihood framework as their variables.

10.5.2 Selection of appropriate territorial development intervention

Having determined the living conditions of people in a given territory, plan- ners should be able to match groups with appropriate interventions. Two ide- as are proposed here. The first is that the groups that find it difficult to deal with the vulnerability context should be assisted through community eco- nomic development initiatives such as those proposed by Helmsing (2003). These initiatives include creation of safety nets, housing improvement and settlement upgrading, basic service delivery, and stimulating community economy. By using these initiatives, it is possible for the vulnerable groups to

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diversify their livelihood strategies and ultimately cope with the vulnerability context.

The second idea is that those that are able to cope with the vulnerability con- text are assisted through enterprise development initiatives (Helmsing 2003). This can be achieved through the creation of clusters of local producers, sup- port of business and agricultural incubators, provision of business develop- ment services, and creation of learning groups, which may result in an inno- vative local milieu.

10.5.3 Enhancing effective decentralization

Decentralization is one of the key aspects for effective planning and con- flict resolution mechanisms adapted to local territorial conditions. There- fore, local governments must be supported by clear legislation defining their relation to central government, have access to sufficient resources—notably through local taxation and/or central government transfers—for appropriate investment and service provision, and possess adequate planning and imple- mentation capacity. Perhaps the most important aspect of decentralization is a shift from mere local government decentralization to governance.

As was pointed out earlier, territorial development is multi-actor; and effec- tive undertaking of territorial development requires participation of various societal actors, among whom local government should play an enabling role. There should be flexible institutional coalitions involving local as well as re- gional and national stakeholders, public–private partnerships involving both the commercial and community sectors, participatory programme planning and management, demand-driven service delivery, and the creation of an en- abling institutional and policy environment.

10.5.4 Enhancing territorial competitiveness

Territorial competitiveness is the ability of an area to create, attract, and maintain firms with stable or rising market shares in domestic and/or export markets, while raising the standards of living of its inhabitants. A more com- petitive territory stands a better chance to develop than a less competitive territory; hence, it is imperative for planners to devise appropriate means to enhance the territorial competitiveness of their planning area. One way of enhancing this competitiveness is by investing in the built-up physical infra-

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structure and economic and social overhead capital of the locality, in such a manner that this generates balanced development of all land uses, resolving land use conflicts, minimizing negative and maximizing positive externalities (Helmsing 2003).

Another way of enhancing competitiveness is by creation of institutions that will effectively govern actors’ social and economic operations. Enforcement of these institutions as rules of the game is very important, because if they are not enforced, their effect will never be felt. Institutions are important be- cause, if effectively enforced, they will reduce transaction costs. Territories with low transaction costs are more likely to be competitive than those with high transaction costs.