Welcome to RED-X

Whereas progress is evident with LED in South Africa, the practice of LED still needs to mature to a level where it makes a significant contribution to economic growth, employment and equity shifts. The challenges point to a number of systemic deficiencies and practices such as use of the top down planning approach to LED, as promoted by the World Bank. Recent events in Gauteng province for example, illustrated that a five year LED planning paradigm could not respond quickly and decisively to changes such as: the 2008 electricity supply crises, an oil price over $100 a barrel, soaring food prices, the exchange rate weakening by more than 30 % in 3 months, radio active spillage into groundwater that threatened agricultural production and the financial meltdown in October 2008.  

A bottom-up approach that is more responsive to opportunities is more pragmatic and provides a platform for scaling up. This approach based on lessons learnt from successful countries, enables LED stakeholders to actively shape locational and competitive advantages to make it easier for businesses to succeed. Groups of stakeholders succeed in organizing rapid, effective learning and decision-making processes that continuously improve systemic competitiveness of their local economy by:

·          Reducing constraints to business investment and growth,

·          Tackling market failures to make markets work better,  and

·          Strengthening the competitiveness of local firms.

The consequence (of greater success rates in LRED) is increased economic growth, employment and income levels.

RED-X offers innovative facilitation services that increase the success rates in local or regional economic development.