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A Framework for Conceptualising
LED
LED
is complex and multi faceted and requires many stakeholders,
often without economic education to contribute to improvements
of the local economy. It cannot be assumed that, stakeholders
such as municipal, political and industry sector leaders already
have a basic understanding of sound LED. The consequence of
LED not being understood is often catastrophic to LED success
rates. (examples of)
It is important therefore to be able explain the essential concepts
of sound LED simply and effectively. An integrated conceptual framework, based
on the balanced scorecard concept is provided below to structure thinking. It
consists of eight key insights, causally connected, that provides a basis for
understanding: Why? (top left) What? (top right) How? (bottom right) Who and With
what? (bottom left) 
These eight segments in the figure correspond
with the top menu on the left hand side, click there for segment detail. The integrated perspectives of LED, starting
at the bottom left, moving counter-clockwise, is as follows: 1. Based on previous
learning, resources available to LED are 2. utilised by LED stakeholders that work together according to a pattern
of organisation, 3.
to add value by executing the functions and processes required by LED,
4. to conceive smart initiatives to catalytically
stimulate 5.
Improvements in the systemic competitiveness of the local economy. 6. This enables businesses in key sectors and markets
to compete more effectively, 7. Resulting in increased investment, economic growth, increased employment,
increased earnings ad equity shifts, which all contribute 8. to a reduction in poverty. Focussing
specifically on the how to do LED, we promote a systems perspective, the concept
of an LED system. How do we build an LED system that continuously improves competitiveness
of the local economy with efficacy? 
Four
layers of LED are required to attain significant levels of impact. These layers
differ significantly in purpose, function, competencies and resourcing. Failure
to separate out these layers lead to common pitfalls such as: ·
Municipal councillors (governance layer) interfering
with layers 2,3,4. Power of key LED leaders excluded. ·
Municipal LED units (mainly facilitation layer)
focussed mainly on executing poorly conceived LED projects ·
Key LED stakeholders, their intellectual capital,
powerbases, networks and resources being excluded (level 3) ·
Academic LED strategies are not implemented
(level 4). What
is it then that each layer must do and consist of? The RED-X methodologies include generic guidelines which
enable you to identify which areas require priority attention, and then assist
you to identify appropriate solutions. 
It
is within these layers that different stakeholders find a clear role and fit within
the LED system. And it is according to these layers that role based capacity building
takes place. Everyone needs to understand their specific roles. | 
