Public Policy for Local Economic Development

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Public Policy for Local Economic Development
- An International Comparison of Approaches, Programs and Tools -
Prepared by
Christopher Bryant, Professor
and
Sylvain Cofsky, Doctoral Candidate
Université de Montréal
For
Economic Development Canada
March 31st
2004

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Table of Contents
List of Acronyms......................................................................................................................... 3
EXECUTIVE SUMARY.................................................................................................................. 5
1. Introduction .......................................................................................................................... 18
1.1 CONTEXT OF THE STUDY.................................................................................................18
1.2 THE MANDATE OF THE STUDY .........................................................................................18
1.3 DEFINITIONS...................................................................................................................19
1.4 CONCEPTUALISATION OF LOCAL ECONOMIC DEVELOPMENT .............................................20
1.5 METHODOLOGY ..............................................................................................................22
2. Analysis by Jurisdiction .............................................................................................. 27
2.1QUEBEC (BENCHMARK)....................................................................................................27
2.2 ONTARIO ........................................................................................................................29
2.3 BRITISH COLOMBIA .........................................................................................................31
2.4 NEW BRUNSWICK ...........................................................................................................33
2.5 FRANCE .........................................................................................................................35
2.6 THE EUROPEAN UNION ...................................................................................................37
2.7 AUSTRALIA (NEW SOUTH WALES REGION).......................................................................39
2.8 OREGON ........................................................................................................................42
2.9 NEW HAMPSHIRE............................................................................................................44
2.10 VERMONT.....................................................................................................................46
2.11 MAINE ..........................................................................................................................48
3. Synthesis of the Analyses by Jurisdiction ......................................................................... 50
3.1 THE JURISDICTIONS CATEGORIZED ON FIVE DIMENSIONS DEALING WITH THEIR POLICIES
AND PROGRAMS REGARDING LED.........................................................................................50
3.2 THREE TYPES OF PUBLIC POLICIES RELATED TO LED......................................................56
4. Emerging Issues and Propositions for Innovative Programs and Tools........................ 59
4.1 EMERGING ISSUES ILLUSTRATED BY INNOVATIVE PROGRAMS AND TOOLS.........................60
4.2 CHALLENGES AND OPPORTUNITIES IN QUEBEC FOR POLICIES AND PROGRAMS IN LOCAL
ECONOMIC DEVELOPMENT....................................................................................................71
5. Bibliography .......................................................................................................................... 76
5.1 DOCUMENTS...................................................................................................................76
5.2 WEB SITES.....................................................................................................................81
APPENDIX AN OVERVIEW OF POLICIES AND PROGRAMS BY JURISDICTION ................ 84

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List of Acronyms
AFFF Agri-Food Features Fund (British Columbia)
BNB Business New Brunswick (ENB - Entreprises Nouveau-Brunswick) (New
Brunswick)
CAP Common Agricultural Policy (PAC – Politique agricole commune) (European
Union)
CEDA Community Economic Development Agency (ADÉC - Agence de
développement économique communautaire) (New Brunswick)
CEDC Community Economic Development Corporation (CDÉC – Corporation de
développement économique communautaire) (Quebec)
CFDC Community Futures Development Corporation (New Brunswick) (Société
d’aide au développement des collectivités – SADC – Québec)
CIP Community Initiatives Program (PIC - Programme d’initiative communautaire)
(European Union)
CSBIF Community Small Business Investment Funds (FCIPE - Fonds
communautaires d’investissement dans les petites enterprises) (Ontario)
DATAR Délégation à l’aménagement du territoire et aux régions (Delegation for
Regional Development and Regions) (France)
LED Local Economic Development
CED Community Economic Development
DECD Department of Economic and Community Development (Maine)
DED Department of Economic Development (Vermont)
EFRD European Fund for Regional Development (FEDER - Fonds européen de
développement régional)
EOGAF European Orientation Guarantee Fund for Agriculture (FEOGA - Fonds
d’orientation garantie en agriculture) (European Union)
ESF European Social Fund (FSE - Fonds social européen)
ETD Entreprise territoire et développement (Enterprise, Territory and
Development) (France)
FIV Fonds interministériel à la ville (Interministerial Fund for the City) (France)
FNADT Fonds national à l’aménagement et au développement du territoire (National
Fund for Regional Planning and Development) (France)
JEDI Joint Economic Development Initiative (ICDE - Initiative conjointe de
développement économique) (New Brunswick)
HUD Housing and Urban Development (United States)
LAG Local Action Group (GAL - Groupe d’action locale) (European Union)
LEADER Initiative communautaire européenne de développement rural (European
Union)
LEC Local Employment Centre (CLE - Centre local d’emploi) (Quebec)
LOADT Loi d’orientation pour l’aménagement et le développement du territoire
(Territorial Planning and Development Orientation Law) (France)
LPS Local Production System (SPL – Système productif local) (France)
MEDT Ministry of Economic Development and Trade (MEDC – ministère du
Développement écnomique et du Commerce) (Ontario)
MRED Ministry of Regional and Economic Development (MDER – Ministère du
développement économique et regional) (Quebec)
NAS Native Affairs Secretariat (SAAO - Secrétariat des affaires autochtones)
(Ontario)
NIT New Information Technology
OMAF Ministry of Agriculture and Food (MAA – ministère de l’Agriculture et de
l’alimentation) (Ontario)

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OSTAR Ontario Small Town and Rural Economic Development Program (DCRPLO -
Développement des collectivités rurales et des petites localités) (Ontario)
RCER Regional Conferences of Elected Representatives (CRE – Conférence
régionale des élus) (Quebec)
RDC Regional Development Council (CRD – Conseil régional de développement)
(Quebec)
RDF Regional Development Fund (FDR - Fonds de développement régional
(Quebec)
RDS Regional Development Subsidy (PAT - Prime d’aménagement du territoire)
(France)
RNP Regional Natural Park (PNR – Parc naturel regional) (France)
SADC Société d’aide au développement des collectivités (Quebec) (see CFC –
Community Futures Corporations)
SRPC State-Region Plan Contracts (CPER - Contrat de plan État-Région) (France)
UED Urban Economic Development Branch (Ministry of Economic Development
and Trade) (DDEU - Direction de Développement économique urbain,
ministère de Développement économique et du commerce) (Ontario)
VEDA Vermont Development Authority (Vermont)
WIF Workers Investment Fund (FIT - Fonds d’investissement des travailleurs)
(Ontario)

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EXECUTIVE SUMARY
- An International Comparison of Approaches, Programs and Tools -
1. Introduction
Context of the Study
This study is positioned in the dynamic and changing context in which the role of central
states and their internal jurisdictions has been increasingly recognized in processes of Local
Economic Development (LED).
The roles of central states in relation to LED have been numerous and have evolved
significantly. But the rhythm of that evolution has varied depending upon the jurisdiction, and
the roles played in the context of local development have certainly not been uniform.
Mandate
The mandate of this study is to highlight the different types of policies and programs pursued
in a certain number of jurisdictions of industrialized countries regarding Local Economic
Development and to identify their approaches and the emerging issues. This task has been
undertaken for a relatively recent period of time (the last five years), while acknowledging
that certain policies and programs have a longer and therefore a richer past (in particular the
LEADER program of the European Union).
Definitions
Three concepts are defined from the outset:
A policy is a statement that describes an ambition, an orientation and objectives.
A program is generally the object of an annual budgetary program planning that
permits the financing of actions that are often related to criteria identifying target
clienteles or specific localities for intervention; depending on the program, these
criteria may be more or less precise.
The general definition of Local Economic Development (LED) retained emphasizes
the importance of actor-based processes in a locality that are aimed at achieving a
sustainable socio-economic development of their community, even if the main
objective is oriented to the development and reinforcement of economic activities.
Conceptualisation
The study is particularly interested in policies and programs that imply concerted interaction
with local actors or a targeted intervention on local actors in the context of LED.
The emerging “model” of Local Economic Development is characterized by two major
components:
1. The environment in which LED is undertaken; and
2. The components of economic activity, i.e. the different components of the business
or, more generally, of the project.

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This model serves as a point of reference with which different programs may be compared.
Methodology
The main stages of the approach are summarized as follows:
1. A certain number of jurisdictions, either industrialized countries or lower level jurisdictions
in federal jurisdictions were selected. Eleven (11) jurisdictions were retained: Quebec (as
a reference point), British Columbia, Ontario, New Brunswick, Oregon, Maine, Vermont,
Hew Hampshire, the State of New South Wales in Australia, France and the European
Union;
2. The development of a conceptual framework for LED to serve as a model against which
the different experiences could be compared and contrasted;
3. The development of an analytic grid to help in collating the information concerning the
different policies and programs; this grid was based on the conceptualization of LED and
on several broad questions to which an answer was desirable in the context of the
mandate of the study;
4. An initial research on the Internet sites of the chosen jurisdictions, followed by contacts
with resource people (by phone, mail or face-to-face, depending upon the jurisdiction) in
order to obtain more detailed information regarding processes and issues.
5. The broad questions (Table I) that guided our analysis of the information collected have
been classified into two categories: i) questions that imply above all actions at the level of
ministries and state agencies (e.g. various forms of inter-ministerial cooperation and
consultation); and ii) questions specifically concerning relationships between the state
and local actors.
Table 1
The Broad Structuring Questions of the Study
A. Questions that imply mainly actions at the level of state ministries and agencies
• The emphasis given to engines of economic growth in the area (not only in LED)
• Existence of a precise statement of public policy (holistic, sector-based, or thematic)
• Allocation of responsibilities between ministries and agencies
• Priority given to assessment of LED
B. Questions related more specifically to the links between the state and local actors
• Locality or area-based development: holistic or sector-based
• The nature of innovative tools and approaches and their implications for the roles and
actions of states (their ministries and agencies)
2. Analysis by Jurisdiction
A description of the 11 jurisdictions retained for the study is presented under three headings:
1. A short presentation of the jurisdiction;
2. A statement of highlights, with an emphasis on innovative programs and tools;
3. The analytic framework or grid, reflecting our conceptual reading of the strengths and
weaknesses, opportunities and threats confronted by the policies and programs
relating to LED in each jurisdiction.

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3. Synthesis of the Analyses by Jurisdiction
The synthesis of policies and programs in the different jurisdictions is undertaken in two
stages:
1. A categorization of the jurisdictions on each of five dimensions
2. The creation of a typology of the jurisdictions to produce three categories. Quebec is
incorporated into this analysis and synthesis, which allows Quebec to be positioned in
relation to the broad structuring questions and the emerging issues.
Five dimensions to characterize policies and programs regarding LED
The five dimensions are related to the broad structuring questions. They are:
1. The global policy approach in relation to LED. Two types of policy approach to LED are
identified:
A. A first one aimed at reducing disparities between areas and more generally
regional development (France; European Union; Quebec; New Brunswick).
Reduction in regional disparities has for long underpinned regional development
policies in France and continues to do so in the context of the more recent policies
focused on LED. For the European Union, the LEADER program is also focused
on the same objective. Quebec and New Brunswick are also placed in this
category because of the importance attached to the issue of regional disparities.
B. A second category is above all else oriented to economic growth of the whole
jurisdiction particularly through supporting the economic engines of growth (New
South Wales; Ontario; Oregon; Vermont; Maine; New Hampshire; British
Columbia).
These jurisdictions have centred their policy of area-based development on an
approach that focuses on the global growth of their economy. In part, the actors
count on positive fallout from the economic growth of the main metropolitan
regions or growth engines to help those regions that are in difficulty.
2. The nature of the role of the state in relation to LED processes. Four types can be clearly
defined:
A. The state in a permanent accompanying role operating through local structures of
consultation (Quebec; New Brunswick).
The emphasis is placed on approaches involving a more or less permanent
accompaniment of the local actors in their processes, particularly via local or
regional structures for dialogue and development. There is a commitment through
the state’s representatives and agents to maintain a presence in a more or less
permanent way.
B. The state intervening on an ad hoc basis or in reaction to a demand or need
(reactive) (Ontario; British Columbia; New South Wales).
A whole range of services of assistance is made available at the request of local
actors. It is a relatively reactive approach.

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C. The state as financial support for programs and projects developed by
intermediary structures (New Hampshire; Maine; Vermont).
These jurisdictions offer services to local actors principally on demand, but in this
case, the services are more of a financial nature (even if the financial assistance
is not very important in terms of amounts), usually through competitions. It is also
a very reactive approach.
D. The state as supplier of resources (methodological, pedagogical, information)
(France; Europe; Oregon).
These jurisdictions offer a large range of services in terms of information and
tools. The state as a supplier of resources does not base its assistance on a local
structure of dialogue and development to support the development of the area.
Instead, it offers fundamental services that act as an additional decision support to
local actors responsible for LED.
3. The emphasis given to the territorial or area-based dimension. Two categories can be
identified:
A. The locality and its local actors as the basis of the intervention (European Union;
France; Quebec; New Brunswick).
In this category of jurisdictions, the territory or locality more or less occupies the
centre stage on which the development project is based.
B. Local actors as the basis of intervention (Ontario; British Columbia; New South
Wales; Vermont; New Hampshire; Maine; Oregon).
The focus is on actors who obviously work and live in the locality, but the locality
is not precisely delimited and does not serve as the central element in the
development strategy.
4. The holistic dimension (the integration of the economic dimension with the other
dimensions of development of the territory). Three categories can be defined:
A. A relatively holistic approach (European Union (LEADER program); France; New
Brunswick; Quebec).
Some programs deal with territories or localities in a relatively transversal and
global way, i.e. they do not target a particular sector, a type of population or a
particular theme. This approach is closely related to the one based first and
foremost upon the notion of territory or locality.
B. An approach based more on economic development (Ontario; British Columbia;
New South Wales).
In this approach, the economic dimension (i.e. the development of economic
activities through the development and reinforcement of business) clearly
dominates. These jurisdictions place much emphasis on the engines of economic
growth in their territory.

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C. An approach based on economic development, but with an important social
dimension (Vermont; Maine; Oregon; New Hampshire).
Social aspects (everything that deals with the social and cultural vitality of a
community) play a more prominent role. But the approach is not holistic, and the
different tools and programs are either economic or social, but rarely transversal.
5. The importance given to processes involving local actors. Two categories can be defined;
a third includes one jurisdiction that is more difficult to categorize:
A. An emphasis placed on strategic planning processes and actor mobilization
(European Union; France; Oregon; Ontario; New Brunswick; Quebec).
The jurisdictions in this category concentrate their efforts, which are principally
financial in nature, on strategic planning processes in the localities concerned.
B. An emphasis placed on action (projects, their financing) (Maine; Vermont; New
Hampshire; New South Wales)
These jurisdictions do not intervene in the stages of territorial construction and
development, opting rather for a less “ideological” approach in relation to LED by
financing individual actions and projects.
C. Cannot be classified (British Columbia)
It is difficult to categorize British Colombia on this dimension. This jurisdiction has
placed its emphasis more on efforts, which are not necessarily financial,
encouraging either business development through tax advantages for private
capital, or the “harmonious” development of natural resources or aboriginal
communities.
Three types of public policies related to LED
Using these five dimensions, three groups of jurisdictions are produced, each characterized
by similar approaches and interventions in relation to LED.
A. The state as proactive leader in Local Economic Development (Quebec; New
Brunswick; European Union; France)
In this category, the state is identified as a proactive leader in local development. The
intervention of the state is more related to LED based on accompaniment of the
actors of a locality through a planned, sustainable and global intervention that
incorporates all socio-economic dimensions. There are slight differences in approach,
but all of these jurisdictions have a proactive role regarding LED.
B. The state as support to economic development that is sector-based or thematic
(Ontario; New South Wales; British Columbia)
The states in this category have an approach regarding economic development that
can be proactive, but their approach is significantly more traditional, i.e. it is not based
on a territory, is sector or thematic in nature, and is focused on actors wherever they
are located. The role and importance given to the strategic planning process, even
though varying from one jurisdiction to another, are generally not a determining factor.

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C. The state as source of financing for actions related to economic or social
development (Maine; Vermont; New Hampshire; Oregon)
In this category, the role of the state is not based on the same ideology. The state
rarely intervenes in the principal structuring steps for LED, and does not play a
significant role in planning. However, it remains responsive to requests for support for
financing actions related to economic development, or a more socially related
development, with the exception of Oregon where a range of more systematic
services is offered.
4. Emerging Issues and Propositions for Innovative Programs and
Tools
Emerging issues have been identified that are naturally related to the broad structuring
questions that were used in the study.
These issues are presented in Table II and are illustrated where appropriate by reference to
innovative tools and approaches. In conclusion, the constraints and opportunities for the
integration of these tools and approaches are discussed in the particular context of Quebec,
where the roles of the state have been evolving in the direction of the emerging roles
discussed earlier.
The issues are classed into two broad categories: A. Issues that concern state ministries and
agencies more directly; et B. Issues that involve local actors and their territories more
directly.
Table II
Emerging Issues for Intervention in
Local Economic Development
A. Issues for state ministries and agencies
• The new emerging roles of the state in LED
• Continuity and coherence in the support for and capacity building for local
actors
• The assessment of efforts (programs) in a context where responsibilities are
increasingly shared
• The global effort devoted to economic development across the whole
jurisdiction
B. Issues for localities and local actors
• Organization of the integration of the different dimensions of local development,
as well as the representation of the different segments of actors and interests
• The relevance and the establishment of holistic area-based processes in
environments other than resource regions, outlying regions and rural areas with
their networks of small and medium-sized towns
• The relevance, the appropriate formulation and the integration of innovative
tools and approaches in relation to the emerging issues for policies and
programs of states, their ministries and agencies, particularly in relation to
Quebec.

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Emerging Issues Illustrated by Innovative Programs and Tools
A. Issues for State Ministries and Agencies
A.1 The New Emerging Roles of the State in Relation to LED
The roles that emerge from the analysis of different innovative programs and approaches are
those of: educator, guide, counsellor, facilitator and source of strategic information. The
emergence of these roles brings with it an important challenge because while they
necessitate a strengthening of local actors’ capacities, at the same time they require greater
awareness, an approach that is more sensitive and a more constant presence on the part of
the agents of the state. It is noteworthy that Quebec is in category A of the typology of
jurisdictions, a category characterized among other things by a permanent accompanying
role, which a priori puts it in a privileged position to continue along the path of this type of
transformation.
In assuming these roles, some jurisdictions stand out because they offer a set of effective
tools to local actors (e.g. the LEADER program of the European Union, Oregon, and
Ontario). These tools can be made available to all actors over the Internet, and can also be
accompanied by advice when requested or in a more systematic fashion (e.g. how to initiate
and maintain a strategic planning process for local development).
The approach involving making available a set of tools for local actors appears as an
essential component of any policy of support for LED. At the least, these tools can be made
available to all actors, via the web site of an agency, a ministry, or an observatory. All these
approaches appear to be reasonable for Quebec. Moreover, these tools can be sponsored
by a range of actors, from the same level of government, or by the federal and provincial
levels. There is also the possibility of making these tools available through ‘gateways’ or
entry points associated with different regions or localities, and with different partners coming
from the different levels of government and the private and community sectors.
A.2 The Continuity and Coherence of Support, and Capacity Building for Local Actors
It is impossible not to recognize that state interventions have often changed – in terms of
their orientations, responsibilities and the importance of the allocated budgets. Many such
changes were noted among the jurisdictions retained for this study. It is obvious that such
changes can create uncertainty and a level of complexity that is difficult for local actors to
handle, especially if they have not yet reached a level of autonomy that allows them to put
such changes into their proper context.
Furthermore, several ministries usually share an interest in local development. This situation
raises the whole issue of cooperation and consultation between ministries and agencies.
In the jurisdictions analysed, some innovative approaches were identified. In particular, the
Community Solution Teams of Oregon and the JUMP Teams of Ontario are noteworthy,
implying formalized consultation between ministries and agencies in order to respond to the
development problems and opportunities raised by local actors.
A.3 The Assessment of Efforts (programs)
The importance of being publicly accountable for the way in which they spend taxpayers’
money is now a leitmotiv for most governments. Furthermore, the assessment of efforts is

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also useful in program management, and also for appreciating the overall results of efforts
devoted to public programs. Paradoxically, aside from the internal assessments by ministries
and agencies responsible for programs, there are very few overall assessments of different
programs that are actually made public. For some jurisdictions, overall assessment is not in
itself a priority, while for others, some programs are subjected to systematic assessment that
is obligatory and planned on a periodic basis (e.g. LEADER and even the RNPs in France).
The assessment of interventions in LED present some major challenges. One of the reasons
stems from the fact that responsibilities are increasingly shared in the context of the
emerging roles, particularly within federal structures.
In terms of assessment of programs at the local and regional scale, the European approach
appears to be the most innovative. In all the programs of the European Union, right from the
beginning financing is set aside for undertaking assessment on a systematic basis, generally
by third parties, at different moments in a program’s ‘life’. Tools are also provided by the
LEADER Observatory based on a continuous assessment approach. This approach implies
monitoring and strategic scanning, capable of supplying the strategic information that will
permit local actors (and also states) to refine and improve their programs and actions.
The whole issue of assessment is relevant for Quebec, where the division of responsibilities
between different agencies and ministries and governmental levels has become
progressively more complex throughout the 1990s. Such an environment suggests the
potential, despite the difficulties, for setting up partnerships between the different levels of
government.
A.4 The Overall Effort for Economic Development across the Whole Area of a Jurisdiction
The overall effort for economic development deals potentially with the whole area of a
jurisdiction (metropolitan centres, rural regions, peripheral regions, sectors), which makes it
difficult to assess the overall results of a program to encourage economic development of a
territory.
In particular, non area-based policies, such as supporting certain ‘clusters’ such as the
aerospace and pharmaceutical industries or life sciences more generally in certain
jurisdictions, camouflage policies that in effect have a direct impact on a limited number of
areas, notably metropolitan regions. However, there is a growing interest in certain
jurisdictions for developing different types of clusters or sets of economic activities that can
be developed in rural areas and within the context of systems of small and medium-sized
towns (e.g. the State of Maine). Furthermore, several jurisdictions have been studying other
regional systems, such as regional innovation systems (the European Union) and local
production systems (France), which may also benefit networks of small and medium-sized
urban centres.
It is important to note that an emphasis on economic engines of growth does not exclude
LED in non-metropolitan regions. LED furthermore is not simply a set of efforts that should
be appreciated just from the perspective of the whole area of a jurisdiction, but also as a set
of efforts and results that must be appreciated from the perspective of each local community
and area concerned.

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B. Issues for the Localities and Local Actors
B.1 Integration of the Different Dimensions of Local Development, as well as the
Representation of the Different Segments of Actors and Interests
Local economic development arises from broader processes, relating to all the dimensions of
development of an area. Several jurisdictions emphasize that they undertake LED while also
pursuing social development and a higher quality of life for residents (e.g. the American
states). Clearly, LED is based on other aspects of the community, such as the educational
system, the highway infrastructure and local culture.
The actors directly involved in LED thus need to enter into communication on a regular basis
with actors who represent the other dimensions of an area’s community. There is no unique
solution for this, because the specific make-up of each area requires a specific analyse and
diagnostic.
The representation of the different segments of actors and interests is an important
component of this issue that concerns the integration of the different dimensions, particularly
in jurisdictions where there is a certain shift towards a greater implication of elected officials
in local development organizations (e.g. the imminent Regional Conferences of Elected
Representatives (RCERs) and the Local Development Centres (LDCs) in Quebec, and the
pays in France).
How can productive relationships between local and regional elected representatives and
other local actors be achieved in the processes of Local Economic Development, especially
with those actors who have their roots in civil society? Necessarily, this implies the need to
take participative processes into account, which paradoxically is not the case with some of
the approaches enumerated earlier, i.e. the RCER and the pays. The tools presented to
assist municipalities and other local actors by the State of Oregon and the LEADER
Observatory of the European Union to assess community and institutional capacity are an
interesting set of tools for understanding the obstacles and the potential for setting up such
processes.
B.2 The Relevance and the Establishment of Holistic Area-Based Processes in Other Types
of Area
The typology of jurisdictions revealed one group of jurisdictions, including Quebec, for which
there is a holistic approach, associated with a clear territorial basis for LED, the emerging
roles for the state and a relatively standardized approach, in terms of the organization of
LED. In terms of a global approach, Quebec has already experienced the development of
innovative tools, in terms of organization of LED, notably in the SADCs (Sociétés d’aide au
développement des collectivités) and later on, the CLDs.
If it is accepted that this approach to LED is the one to encourage, one of the questions that
arises is: how can this global approach to LED that is pursued especially in programs for
rural areas be encouraged and transferred to cities and metropolitan regions? The territorial
approach described above stands out as an approach that allows an easier integration of
LED into an area and a more effective mobilization of local and regional actors. The desire to
transfer this approach to urban areas is not new (e.g. the CEDCs or Community Economic
Development Corporations in Montreal in the domain of the social economy and socio-
economic development). However, while their process is area-based, with the responsibilities
for managing the Local Development Centres that they have been given, not all CEDCs have
been able to integrate the world of business into their processes or their boards of directors.

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The global approach is particularly present:
1. In those programs centred on an area (e.g. LEADER, the RNP and pays in France,
and the programs in which the CEDAs (Community Economic Development
Agencies) in New Brunswick are involved); and
2. Where there is a true consultation between the different agencies and ministries
aimed at coordinating their actions in collaboration with local organizations, including
local communities (e.g. Oregon and Ontario, even if in these two cases there is no
real systematic program of intervention across the jurisdictional area).
Challenges and Opportunities in Quebec for Policies and Programs in Local
Economic Development
Our starting point or conceptual choice in terms of a proposition is that any public sector or
political actor, in order to optimize both its own contribution and the overall LED process,
must position itself, and clearly identify where it stands, in the context of the emerging roles
of a central state. This implies that public sector actors (not all of them, but certainly some of
them):
1. Will increasingly assume the role of accompanying guide, educator and facilitator
in relation to the local actors involved in the different steps of LED;
2. Will assume a role that is more proactive than reactive, in all aspects including
service delivery;
3. Must also involve themselves more strongly in collaborative arrangements,
including partnerships, with other private and public actors, in order to help local
actors achieve their objectives;
4. The approach that should be encouraged must be clearly territorial or area-based
and holistic and be based on an adequate representation of the different segments
of interests in the context of holistic local economic development processes in which
5. The development of a territorial or area-based diagnosis and a real participation
of relevant local actors are encouraged.
Two main components of LED are identified :
A. The environment of LED.
The key components of this are: the local and regional actors and all that pertains to capacity
building for local and regional actors to act with effectiveness in the construction of
processes that lead to actions to respond to the needs of local communities in terms of
economic development, always in a realistic manner.
The following approaches and tools are among the most promising in the context of the
emerging roles for public sector actors in relation to support for LED:
a. Offering methodological and/or technical tools that are accessible and easily usable
by local actors (e.g. tools in the form of accessible documents on well identified web
sites). The tools may be of many types but among those that appear the most
important to include are educational and methodological tools dealing with the
processes of local economic development, tools for carrying out a sound local
diagnosis, and finally, tools to help lay out a schedule for the evaluation or
assessment of the processes and practices of local development;
b. Counsellors available for an area or a set of areas capable of undertaking a follow-
up and acting as a guide throughout the local processes. Despite the great diversity
of territories in Quebec, public sector actors could provide appropriate instruments

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of the type that could be found in an observatory to help in the collection, collating
and analysis of the results of the different processes in order to give value-added to
local actors;
c. Information available to local actors on their own local territory, with the potential use
of distance training sessions in which actors from other jurisdictions are also involved.
In the above, several of the roles and tools identified as promising centre on the idea of a
territorial observatory, which represents an opportunity for public sector actors particularly
in collaboration to contribute to the implementation and operation of such a tool to assist
territories or areas.
In terms of the processes of strategic thinking and action themselves, the approaches and
tools that seem most promising are:
a. Placing an emphasis on the duo territory–actors. The definition of a territorial
project should be become a priority and an essential step for every new
programming of local policy by local actors.
b. Providing support to organizations to ensure that they position themselves effectively
in the processes of overall development of their territory, taking account of the local
and regional specificities in the construction of the organizations, and the
identification of their roles and functions.
c. An encouragement to the organizations to initiate and maintain effective
communications with all the other actors in their area, including those dealing more
particularly with the other dimensions of local development (e.g. social development).
To achieve this, it is sometimes desirable to “force” somehow the situation by
proposing, within the framework of certain programs, measures to encourage
taking into account all the actors and relevant sectors;
d. Encouraging the organizations (and their municipalities) to reflect on their
relationships with neighbouring areas in order to create cooperative and partnership
approaches, e.g. as with the French movement towards inter-communality. Public
sector actors can therefore play a role as promoter of good practices between
neighbouring municipalities. Once again, this brings up the two elements noted
earlier: the territorial project and programs that encourage a broader
partnership.
B. The components of business.
While this component has generally been treated by upper levels of government, i.e. supra
regional or supranational levels, many local and regional organizations are also involved in
these business-related domains.
On the other hand, certain activities of local organizations can be supported by ministries and
their agencies (e.g. assistance in the creation of working capital to support business start-ups
or business projects). It is also possible that resource centres or offices that are the
responsibility of upper level authorities (e.g. the Small Business Centres in Ontario, and the
regional service offices of the State of New South Wales in Australia) become an important
component of a local economic development strategy without there being a formal role for
local actors within those offices.
The approaches and the tools that seem most promising in these domains are:

16
a. Consultation processes at the local or regional level by ministries or agencies that
deal with one or several domains of business development (e.g. labour training,
access to capital, etc.);
To be effective, this consultation must integrate two components:
i. A willingness for real consultation between the different ministries and
agencies at the macro scale (e.g. similar to that of the State of Oregon); and
ii. Creating a framework for consultation groups between ministries and
agencies at local and regional scales. For Quebec, it would be desirable that
these consultation “teams” could also directly involve local and regional
actors rather than creating “teams” composed only of professionals from the
ministries and agencies.
Public sector actors in Quebec could contribute to this in two ways : first, through the
contribution in terms of service delivery (tools for observing, constructing and
assessment of territories) and second, through a direct and proactive involvement of
their different regional offices.
One of the greatest challenges is found in jurisdictions where there are two levels of
government, each possessing responsibilities that can overlap, i.e. in federal
jurisdictions. Ideally, the consultation teams should integrate representatives
from both levels of government.
b. By recognizing the necessity of an intervention both of local and regional actors and
actors from the upper level (the central state), it would be important to ensure
systematic cooperation between local and regional actors and the state. The
example of the contract of the City of Montreal provides a good illustration of the form
that cooperative approaches and partnerships between the state, local municipalities
(cities) and local actors might take.
c. The tools and efforts to help undertake a territorial diagnosis in terms of the state of
“health” of each of the components of the business and its environment. The roles of
counsellor and that of acting as a source of strategic information require a concerted
effort by central states. It is recommended that a jurisdiction create, as noted on
several occasions in this report, an observatory aimed at development of its
territories. This observatory could play a pertinent role in the preparation of territorial
diagnoses, as well as a resource and advising centre for the different ministries and
agencies and for local and regional actors. It can also provide an opportunity for a
joint initiative between two levels of government within the framework of a federal
structure.
In such a structure, the following functions might be located:
• Tools to assist local and regional actors concerning different dimensions of
LED process;
• Relevant documentation on LED, potentially available on a web site (see
Oregon and Ontario);
• A research function, notably how to undertake a territorial diagnosis;
• A scanning function (economic trends and events, policies, …);
• A training function;
• An advisory function.
The combination of functions actually included would require dialogue with all local and
regional actors.

17
*
* *
Through the analysis of the emerging roles of a central state in relation to LED, it has been
possible to better understand the evolving functions that public sector and political actors
might assume for Quebec’s regions. The key words of this intervention are: diagnostic,
territory, holistic, proactive, accompanying guide, methodology, counsellor, and assessment.
Given the history of previous interventions in Quebec, the context for refining and developing
innovative programs is very favourable. One of the key conditions for success will be the
construction of partnerships between levels of government, a condition that is necessary for
Quebec’s economy and society to be able to benefit fully from the innovative approaches and
tools in LED.

18
1. INTRODUCTION
1.1 Context of the Study
Over the last 25 years, different forms of local development have emerged, including Local
Economic Development (LED). These various approaches to the socio-economic
development of localities took root in North of America since the 1960s. The interest
accorded to the different processes involved has been increasing, and this is undoubtedly
related to the observation of the redefinition of the role of the state in the management of
national economies and societies.
The role of local and regional actors in the development of their localities has been
increasingly recognized, and the political discourse and that of local and regional actors
converge in recognizing that the processes involved in Local Economic Development have
had, and are still having, a significant impact on the development of localities.
In the course of the last 25 years, the roles of central states in relation to LED have been
various and they have evolved in a significant way. But the rhythm of that evolution varies
depending upon the jurisdiction, and the roles played in the context of local development
have certainly not been uniform.
Overall, the types of central state interventions concerning LED in industrialized countries
have been very numerous, ranging from supporting the training of Local Economic
Development officers to financing, wholly or in part, LED organizations, to assistance
targeted to certain components of LED, to accompanying Local Economic Development
officers in these targeted actions, and to accompanying local actors in the more global
processes aimed at the economic development of their locality.
It is within this very dynamic and relatively complex context that this present study has been
undertaken.
1.2 The Mandate of the Study
The mandate of this study is to highlight the different types of policies and programs pursued
by a certain number of jurisdictions of industrialized countries regarding Local Economic
Development and to identify their approaches and the emerging issues. This task has been
undertaken over a relatively recent period of time (the last five years), while acknowledging
that certain policies and programs have a longer and therefore a richer past (in particular the
LEADER program of the European Union).

19
1.3 Definitions
Policy:
A policy is a statement that describes an ambition, an orientation and objectives. At various
points in this study, it will be noticed that not all programs are based on a clearly defined
policy statement.
Program:
A program is generally the object of an annual budgetary program planning that permits the
financing of actions that are often related to criteria identifying target clienteles or specific
localities for intervention; depending on the program, these criteria may be more or less
precise. Certain development tools, for example financing tools, may even be considered
fully-fledged programs in themselves.
Within this study, we are particularly interested in policies and programs that involve a
concerted interaction with local actors or an intervention that is directed to local actors.
Therefore, we only consider regional development programs to the extent that they involve
an important component of activities or assistance directed towards local actors.
Local Economic Development:
The general definition of Local Economic Development (LED) that we have used emphasizes
the importance of actor-based processes in a locality that are aimed at achieving a
sustainable socio-economic development of their community, even if the main objective is
oriented to the development and to the reinforcement of economic activities.
Despite the relative simplicity of this definition, it is important to underline the confusion that
exists between the different terms used to describe the different approaches. In effect, the
expression Community Economic Development (CED) is also often used to describe the
same type of process, i.e. a more global process with a territorial basis and that is inclusive.
Others use the term CED to describe local processes with an orientation more directed to
social development. Some observers always make a distinction between LED and CED.
Others, notably in France, totally refute the term “community” in CED, preferring the
expression “participation of civil society” in area development processes, even if it is not
always analogous.
The situation has evolved, and continues to do so, bringing about an increasing complexity.
For example, in the 1960s, the notions of LED and CED were quite distinct, especially in
North America. But over the last 15 to 20 years, several elements of the CED approach have
been borrowed by LED (e.g. the mobilization of actors, citizen participation). It is obvious that
a whole range of approaches to local development exist, including LED as defined above.
Also, in some places LED can be used to describe an approach to the economic
development of a locality that is more “traditional”; this could involve a relatively restricted set
of actors (e.g. directed towards Industrial Commissioners) and a specific set of target
activities (e.g. the search for non-local investment, a task entirely devoted to economic
development and business). This “traditional” form of LED is particularly noticeable in the
economic development orientations followed by large cities and medium-sized towns.

20
In the following report, a number of examples are noted where the jurisdictions under study
illustrate this confusion. This situation underscores the interest and importance of
conceptualizing LED for comparison purposes.
Finally, it can be noted that LED is pursued both in urban and rural areas, even if many
government programs tend to be oriented towards rural and outlying areas.
1.4 Conceptualisation of Local Economic Development
The emerging “model” of Local Economic Development is characterized by two major
components (Figure 1):
1. The environment in which LED is undertaken; and
2. The components of economic activity, i.e. the different components of the
business or, more generally, of the project.
This model serves as a point of reference with which programs may be compared. This
allows for the recognition of the need for flexibility in LED approaches as well as those of
states in order to take into account local and regional specificities and the fact that different
approaches have evolved at different speeds in different jurisdictions.
The LED environment implies everything that has to do with local actors, their capacities and
the processes in which they are engaged at local and regional levels. Thus, this component
is composed of the following elements and actions, all of which can be subject to intervention
by the state:
• Mobilization and accompaniment of local actors
• Building of networks, partnerships and cooperative approaches
• Building of processes (of planning, of action)
• Consultation organisms or intermediate organizational structures
• Area and area-based information
• Approaches that can be holistic and global or sector-based or thematic.
Given that one of the principal objectives of LED deals with the creation and the development
of business or a project in an area, the second major component – the development of
businesses and projects through LED – incorporates everything that can be undertaken to
help the start-up of a business and its development. Therefore, LED can potentially be
concerned with one or several components of the business (based on a diagnosis of the area
and the system of existing or potential actors):
• Manpower
• Capital and access to capital
• Technology and innovation
• Markets (opportunities for development)
• Information.
The simple conceptualization allows linkages to be made with the other components of the
development of an area, e.g. cultural, social and environmental components. This then links
to an approach that is increasingly favoured – at least in the discourse – for one that is more
global and holistic, even if the starting point seems to be the local economy. For certain
programs where this more global approach is favoured, the differentiation between LED and
CED has become very difficult to identify (e.g. LEADER).

21
Figure 1: A Conceptualization of Local Economic Development
The components of the business
Management Markets
Capital Entrepreneurship Technology
Labour Information
The LED environment
Actors and processes
Actors (private, Processes
public, community)
The dimensions of the local environment
Economic
Social Political
Bio-physical environment

22
1.5 Methodology
1.5.1 The Methodological Approach
The main stages of the approach are summarized as follows:
1. A certain number of jurisdictions, either industrialized countries or the lower level
jurisdictions in federal jurisdictions (e.g. a few provinces in Canada, an Australian state
and several states from the United States) were selected, in order to represent a range of
national contexts. The eleven (11) jurisdictions retained are Quebec (as a reference
point), British Columbia, Ontario, New Brunswick, Oregon, Maine, Vermont, New
Hampshire, the State of New South Wales in Australia, France and the European Union.
New York State was also part of the initial selection, but had to be removed from the
study because of lack of information;
2. The development of a conceptual framework for LED to serve as a model against which
the different experiences could be compared and contrasted (section 1.4);
3. The development of an analytic grid to help in collating the information concerning the
different policies and programs (section 1.5.2); the construction of this grid was based on
the conceptualization of LED (section 1.4) and on several broad questions on which an
answer was desirable in the context of the mandate of the study (see below); the
synthesis (comments made on the strengths, weaknesses, opportunities and threats)
facing the different jurisdictions represent our own evaluation of the situation in each
jurisdiction;
It was decided to use the grid to synthesize the information for each of the retained
jurisdictions (section 2) rather than use it for each of the programs or set of activities (which
would have resulted in an excessively long document that would have been complex to
read).
4. An initial research on the Internet sites of the chosen jurisdictions, followed by contacts
with resource people (by phone, mail or face-to-face, depending upon the jurisdiction) in
order to obtain more detailed information regarding processes and issues; the contacts
included those responsible for certain programs, a number of experts in regional and
local development in certain of the jurisdictions, and a few representatives of regional and
local development organizations. A rich documentation on the policies and programs of
the targeted jurisdictions resulted from the initial contact with resource people.
The broad questions that guided our analysis of the information collected have been
classified into two categories: i) questions that imply above all actions at the level of
ministries and state agencies (e.g. various forms of inter-ministerial cooperation and
consultation); and ii) questions specifically concerning relationships between the state and
local actors (Table 1).
In order to facilitate reading the descriptions of policies and programs presented in section 2
and in the Appendix, Table 2 provides a list of the most significant emerging issues that
arose from our own analysis of these programs and the comments received from our
respondents. These issues are twofold:
a) Issues for agencies and state ministries,
b) Issues for local areas and actors.
In section 4, we discuss these emerging issues in more detail in terms of potential responses
to them, particularly in terms of potential policy and program changes regarding LED in
Quebec.

23
The report is structured as follows. In the second section, the 11 jurisdictions selected for the
study are presented. This description is divided into three subsections: 1) a short
presentation of each jurisdiction; 2) an outline of the main highlights for each jurisdiction,
emphasizing the innovative aspects of the jurisdiction; and 3) the analytic grid, reflecting our
analysis of the strength and weaknesses, opportunities and threats in relation to the policies
and programs dealing with LED in each jurisdiction.
In the third section, two phases in the synthesis of the policies and programs of the different
jurisdiction are presented: 1) a categorization of the jurisdictions based on several
dimensions taken individually, based mainly on the broad questions (Table 1); and 2) a
synthesis and a categorization of jurisdictions based on all of these dimensions. Comments
are offered on these syntheses.
Finally, in section 4, emerging issues are discussed (Table 2), including their relationships
with the broad structuring questions and the different types of innovative tools identified. To
conclude, the constraints and opportunities for the integration of these tools and approaches
are discussed in the particular context of Quebec, where the roles of the state have been
evolving in the direction of the emerging roles that arise from our analysis of the different
jurisdictions included in the study.
Table 1
The Broad Structuring Questions of the Study
A. Questions that imply mainly actions at the level of state ministries and agencies
• The emphasis given to engines of economic growth in the area (not only in LED)
• Existence of a precise statement of public policy (holistic, sector-based, or thematic)
• Allocation of responsibilities between ministries and agencies
• Priority given to assessment of LED
B. Questions related more specifically to the links between the state and local actors
• Locality or area-based development: holistic or sector-based
• The nature of innovative tools and approaches and their implications for the roles
and actions of states (their ministries and agencies)

24
Table 2
Emerging Issues for Intervention in
Local Economic Development
A. Issues for state ministries and agencies
• The new emerging roles of the state in LED
• Continuity and coherence in the support for and capacity building for local
actors
• The assessment of efforts (programs) in a context where responsibilities are
increasingly shared
• The global effort devoted to economic development across the whole
jurisdiction
B. Issues for localities and local actors
• Organization of the integration of the different dimensions of local development,
as well as the representation of the different segments of actors and interests
• The relevance and the establishment of holistic area-based processes in
environments other than resource regions, outlying regions and rural areas with
their networks of small and medium-sized towns
• The relevance, the appropriate formulation and the integration of innovative
tools and approaches in relation to the emerging issues for policies and
programs of states, their ministries and agencies, particularly in relation to
Quebec

25
1.5.2 The Analytic Grid for Analysis of the Jurisdictions
Strengths Weaknesses Opportunities Threats
Priority Objectives for Intervention for Programs Dealing with LED
Economic development
Social development
Locality-based development: Holistic or sector-based
Employment creation
Business creation and development
Programs focused on one or several components of business
development (see below)
As detailed for the components identified below
Explicit Consultation or Cooperation between Agencies and Ministries
Mechanisms/Means/Tools Related to the Local Business Environment:
Financing of actor-based processes, and experts to support the
processes, etc.
Socio-economic observatory
Cooperation between the state and the local/regional area
Documentation, manuals
Real and virtual offices
Accompaniment of local processes
Mechanisms/Means/Tools related to the Life of the Business:
Financing of actions (business investments, labour force training,
creation of economic structures based on solidarity)
Pertinent human resources
Intervention area for human resources
Identification, mobilization and training of actors (private, public, social,
civil society)
Risk capital funds
Innovative programs
Socio-economic observatory
Methodological and/or educational manuals
Expected results:

26
Qualitative (responsibilities, capacity, strategic planning, etc.)
Quantitative (Employment, Businesses, Salaried employees, etc.)
Emphasis Accorded to the Engines of Economic Growth of the Locality (not only
in LED) (approaches based on clusters, local productive systems and regional
innovation systems)
l
Priority given to Assessment in LED

27
2. Analysis by Jurisdiction
In this second section, we present the 11 jurisdictions retained for the study. Three
elements are presented for each jurisdiction:
1. A short presentation of the jurisdiction;
2. A statement of highlights, with an emphasis on innovative programs and
tools;
3. The analytic framework or grid, allowing a quick conceptual reading of the
jurisdiction; this reflects our reading of the strengths and weaknesses,
opportunities and threats in relation to the policies and programs
pertaining to LED in each jurisdiction.
2.1Quebec (benchmark)
2.1.1 Presentation of the Jurisdiction
The province of Quebec had a population of 7,237,480 inhabitants in 2001, representing
an increase of 5.0 % between 1996 and 2001 (9.33 % for Canada over the same
period). It possesses a relatively rich urban hierarchy; the three most important urban
centres in terms of population are: Montreal (3,426,350 inhabitants for the Montreal
Census Metropolitan Area (CMA) in 2001- including 1,039,534 inhabitants within the
limits of the former city of Montreal (before municipal amalgamation on the Island of
Montreal); Quebec with a population of 682,757 inhabitants (the CMA) including 169,076
inhabitants in Quebec City; and Laval, with a population of 343,005 inhabitants (the city)
in 2001. An important number of resource regions and peripheral regions also
characterizes the Province.
2.1.2 Highlights for Quebec
Specific identification of the ministry responsible for regional development;
A relatively holistic approach to local economic development;
A context of ministerial and organizational restructuring that might well alter the
Government of Quebec’s approach to local and regional development;
An approach in relation to the role of the Quebec government that is more
centred on the functions of providing a broad framework and financing for the
actors in LED;
A local (e.g. the CLDs) and regional organizational structure that is
superimposed, in certain areas, on a pre-existing federal structure (the SADCs);
An intervention in urban areas as well as in rural areas;
An intervention in favour of the innovative notion of the social economy
(particularly in the current Canadian context, where the new prime minister, Mr.
Martin, has made statements in favour of the construction of a dynamic social
economy; this interest in the social economy in Quebec is a distinguishing
feature compared to many other jurisdictions;

28
A certain number of urban centres have endowed themselves with structures of
local and community development that focus their approaches more on the
community aspect of development. Not all communities possess these
structures;
The provincial government has relatively few tools at its disposal to reinforce risk
capital in relation to participation of the private sector.
2.1.3 Analytic Framework for Quebec
Priority intervention
objectives for LED
programs
Intervention in rural and
urban areas in a
relatively holistic way.
Intervention on the social
economy.
Relatively uniform
intervention in territories
that does not take into
account the need for a
preliminary local diagnosis.
Redefinition of the
LED approach of
the new liberal
government.
Redefinition of
the LED
approach of the
new liberal
government.
Consultation or explicit
cooperation between
agencies and ministries
Current revision (law 34) of the Ministry of Regional and Economic Development that should
permit greater horizontal integration of the different aspects of intervention, because of the
incorporation within this ministry of the former ministries of Regions, Industry and Research.
Mechanisms /means/ tools
linked to the local
environment for business
Financing of local
intermediary structures of
consultation at local and
regional levels.
Inadequacy of tools for
scanning, information and
observations (economic
intelligence function)
available to actors and
local and regional decision
makers.
linked to the business
trajectory
Financial assistance
programs for business
start-ups.
Relative absence of risk
capital of private origin
compared to other
jurisdictions.
Public
consultation after
a report on the
role of the state in
risk capital.
The emphasis given to
economic driving forces of
the territory (not only in
LED) (clusters, LPS,
regional innovation
systems)
The territorial approach based on industrial clusters (or poles) still seems to be favoured: life
sciences pole, multimedia pole, micro electronics pole, etc.
Priority given to evaluation
and assessment in LED
Few assessments made public regarding LED.

29
2.2 Ontario
The province of Ontario is the Canadian province with the largest population: 11,410,045
inhabitants in 2001, representing an increase of 13.1 % between 1996 and 2001. It has
the richest urban hierarchy among Canada’s provinces. Toronto is by far the largest
metropolitan centre (a population of 4,682,897 inhabitants for the Toronto CMA in 2001,
with the City of Toronto alone accounting for 2,481,494 inhabitants); the Ottawa CMA
occupies second place in terms of demographic importance, with a population of
1,063,664 inhabitants (just for the Ontario part of the CMA), with the City of Ottawa
having 774,072 inhabitants. Next comes the CMA of Hamilton with a population of
662,401 inhabitants, including 490,268 inhabitants for the City of Hamilton. The province
of Ontario is also characterized by an important division between the very urbanized
South Western part of the province and the East and especially the Northern part of the
province with its weakly urbanized resource regions.
2.2.2 Highlights for Ontario
There are no real provincial government policies and programs that have a
strong territorial basis, but there are programs that target on the one hand rural
communities and medium-sized towns, and on the other hand, large cities;
There is a great variety of local and regional structures that deal with local
economic development in rural areas as well as in urban areas;
The province has been assuming increasingly a role of guide, facilitator and
counsellor, particularly in rural areas (including small and medium-sized towns
and cities);
Services exist to assist local municipalities, organizations and economic
development officers for strategic planning, the mobilization of actors, and the
identification of business opportunities;
For rural areas, the distinction between CED and LED is not highlighted as it is in
large urban areas;
There is a (virtual) resource centre, and provincial resource teams composed of
experts from different ministries; the mission of the latter is to help municipalities
in their planning to benefit from development opportunities, and to strengthen
their economy, particularly in rural areas;
The province also supports programs aimed at strengthening human capacities
for all local and community economic development practitioners, but it is not
focussed on territories particularly;
There are funds for financing community economic development projects;
Few programs exist to strengthen the financial backing of areas and area-based
processes;
Inter-ministerial consultation exists to provide information and advice to local
actors, but this consultation seems to be most successful outside the Toronto
region;
The biggest challenge is in the field of community capacity strengthening
(leadership, organizational capacity, etc.), in inter-ministerial consultation, and
also for local municipalities that have recently been subjected to municipal
amalgamation.

30
2.2.3 Analytic Framework for Ontario
Priority
intervention
objectives for
LED programs
Function of support to requests
stemming from existing efforts.
Few area-based
and holistic
approaches.
Consultation or
explicit
cooperation
between
agencies and
ministries
Existence of inter-ministerial
consultation.
Mechanisms
/means/ tools
related to the
local
environment for
business
The state plays the role of a guide,
facilitator, and counsellor for local
actors through its Jump Teams
and resource centres.
Training for local development
actors.
Tools available on-line.
Fragility of the
existence of
local and
regional
consultation
structures.
Mechanisms
/means/ tools
related to the
business
trajectory
Several forms of assistance aimed
at new small businesses.
The Centres for Small Business
represent a systematic
consultation opportunity between
local actors in economic
development and provincial
agencies and their regional
offices.
The emphasis
given to
economic driving
forces of the
territory (not
only in LED)
(clusters, LPS,
regional
innovation
systems)
A strong emphasis placed on the
Greater Toronto Region, and other
large agglomerations as the most
important engines of economic
growth.
In spite of
diverse efforts to
support LED
beyond the
metropolitan
regions, these
efforts remain
marginalized
because of the
continuing
growth of some
metropolitan
regions.
Priority given to
evaluation and
assessment in
LED
There is no formal assessment of local economic development programs in rural areas (including small
and medium-sized towns). Diagnoses are undertaken rather with local actors in order to help them
understand their needs, potentialities and constraints.

31
2.3 British Colombia
The province of British Colombia had a population of 3,901,135 inhabitants in 2001,
exhibiting a remarkable demographic growth of 19.1 % between 1996 and 2001,
essentially due to the region of Vancouver. The Vancouver CMA alone had a population
of 1,986,965 inhabitants in 2001, testifying to the very polarized urban structure of this
province. The province also has a large number of resource regions outside of this
metropolitan concentration.
2.3.2 Highlights for British Columbia
Overall, few local and community economic development programs and policies
that are area-based and truly holistic;
Many economic and fiscal measures for setting up and using economic
development funds;
Existence of a rural development policy based on the development of activities
other than strictly agricultural activities;
Existence of a development policy for First Nations communities that attempts,
for instance, to increase the participation of these groups in the management of
forest resources;
Few local economic development policies in urban areas except for the
Vancouver Agreement;
In concrete terms, the traditional local economic development approach is merely
an extension of provincial economic restructuring, and cannot be considered as
innovative;
A relative absence of continuity in implementation of provincial programs for local
economic development;
A preoccupation with economic engines of growth.

32
2.3.3 Analytic Framework for British Colombia
objectives for LED
programs
Theme-based
development regarding
particularly First Nations
communities, rural
development, and the
capitalization of fiduciary
and risk capital funds.
Lack of public policy
statements related to local
development.
Few holistic approaches to
LED.
Policies not especially
oriented to urban areas,
except for Vancouver.
Lack of continuity of
provincial programs for
LED.
The field is
completely open
in terms of
articulation of
coherent policies
and objectives for
LED.
The greatest
threat would be
to miss the
opportunity to
use LED to
mobilize the
driving forces of
the different
areas beyond
the Vancouver
metropolitan
region.
cooperation between
Given the important lack of policies related to LED, it is premature to speak of coordination or
cooperation between agencies and ministries in this field.
related to the local
Support to rural
communities with fragile
economies.
Otherwise few supporting
programs for local
communities.
The federal CF program
(Community Futures) could provide
an initial “model” for developing a
coherent policy and program
regarding LED.
related to the business
trajectory
A range of financial tools
related to capitalization
and development.
Insufficient attention pad to
a coherent diagnosis to
orientate interventions.
The federal CF program could
provide an initial “model” for
developing a coherent policy and
program in relation to business
support.
regional innovation
systems)
The province ascribes much importance to the metropolitan region of Vancouver as an
economic engine of growth for the province.
A noted inadequacy in assessments of public polices and programs regarding LED.

33
2.4 New Brunswick
The province of New Brunswick is relatively small, with a population of 729,500
inhabitants in 2001; its population increased by only 0.8 % between 1996 and 2001. The
population is not very polarized. The province’s main cities are: Moncton with 117,727
inhabitants for the Census Agglomeration (CA), including 61,046 inhabitants for the City
of Moncton; the CMA of St. John with 122,678 inhabitants, with 69,661 inhabitants in the
City of St. John; and the CA of Fredericton with 81,346 inhabitants, 47,560 of which live
in the City of Fredericton. This province also has many resource regions.
2.4.2 Highlights for New Brunswick
The policy statement of the provincial government, and its technical and
organizational details are relatively explicit;
The choice of making actors at the local level bear the responsibility for economic
development strategies and programs is very clear;
A strategic planning process is in progress in each region;
Existence of intermediary structures of community economic development
consultation (CEDAs);
Existence of funds that are regionally managed in a relatively autonomous way
for the development of regionally-oriented projects;
In general, the province has not placed an emphasis on the development of
initiatives aimed at strengthening financial capital, except for loan guarantee
programs and micro financing (which is not in any case an initiative of the
provincial government);
The operation of a network of regional agencies for community development that
allows for the setting up of training programs for volunteers, and more generally,
for all the actors in the regional agencies;
Existence of relatively holistic local strategies, even though the recent
reorganization has placed economic development as the top priority, and has
reduced the role and the position of social actors;
No clear cut differentiation between local economic development in urban areas
and in rural areas;
A will to coordinate, through setting up regional commissions, the policies and
particularly the programs of the provincial and federal governments. However,
there are different geographical limits of intervention depending on whether the
tools or programs are federal or provincial.

34
2.4.3 Analytic Framework for New Brunswick
objectives for LED
programs
An area-based
approach, but one that is
particularly structured at
the regional level.
Development of local
and regional consultation
organizations in LED.
Intervention of CEDA in
rural areas as well as
urban areas.
Approach is less and less
holistic and more and more
oriented to economic
development.
The new Plan
has reoriented
the approach of
the New
Brunswick
government onto
economic
engines of
growth and this
may compromise
the participation
of all local actors.
cooperation between
Good consultation
between provincial and
federal interventions.
Mechanism /means/ tools
related to the local
Training provided for
volunteer local actors
(private or public)
through the CEDA
network, and in
partnership with Mount
Allison University.
Refocusing on
one of the facets
of strategic
planning, i.e.
economic
development (not
holistic).
Mechanism /means/ tools
related to the business
trajectory
Assistance for the
creation of small
businesses.
The new Plan
places the
emphasis on
business.
regional innovation
systems)
The tendency of
the most recent
plan presented.
An assessment of regional organizations was initiated at the beginning of 2004.

35
2.5 France
France is one of the most important countries of the European Union with a population of
58,518,395 inhabitants in 1999 (59,625,900 inhabitants in 2003). Its demographic growth
was 3.4 % between 1990 and 1999. Its urban hierarchy is very rich and well developed,
even though, for a very long time, there was a remarkable demographic and economic
polarization in favour of the Paris region (Ile-de-France region). The Ile-de-France region
had a population of 10,952,011 inhabitants in 1999, in comparison with the next two
largest regions: Rhône-Alpes (Lyon and Grenoble) with 5,645,407 inhabitants, and
Provence-Alpes-Côte d’Azur (Marseilles) with 5,505,151 inhabitants. For more than a
century (up to the 1960s), the Paris region had increased in importance at the expense
of other French regions, and this observation has had a very important bearing on the
focus of regional development programs since the middle of the 1950s.
2.5.1 Highlights for France
A holistic regional development policy oriented towards development of the
whole French territory;
A regional development policy more and more centred on an approach of
developing driving forces such as local productive systems promoted by the
DATAR;
Support from the state and from all public actors, for undertaking area-based
diagnostics intended for intermediary structures of regional development (pays
- territories with a certain historical identity that is still expressed today in social
and economic terms - Agglomerations, Regional Natural Parks…), and
particularly in terms of strategic thinking and the preparation of a strategic
development plan that is broad-based and holistic;
A recent movement for the decentralization of economic responsibilities to the
level of regional political structures. This tendency that can be expected to be
maintained for the coming years;
A multitude of administrative layers, of mechanisms and actors at different
levels making the understanding of programs and policy statements extremely
confused, even for the actors working within it;
Recent programs have been greatly inspired by European programs and much
more coordinated with them than before.

36
2.5.3 Analytic Framework for France
objectives for LED
programs
The area-based
development approach (in
terms of social and
political construction of
territories by local and
regional actors) is
relatively recent in France,
bringing with it the risk of
it being more fragile or
vulnerable.
Dominant participation of
government in processes
of local development.
The bringing into
play of LOADDT
through the policy of
pays,
Agglomerations, and
PNRs, is a real
opportunity that
territorial actors
seem willing to take.
Decentralization of
responsibilities to
regions for
economic
development.
Withdrawal of the
current
government from
making
Development
Councils a
requirement, that
would have
allowed greater
participation of
local actors in
construction of
pays and
Agglomerations.
cooperation between
Existence of CPER
favouring, even
requiring, cooperation,
between different
administrations.
Multitude of administrative
and legislative layers
(central, regional, and
department state versus
regional, departmental,
and local municipalities).
Mechanisms /means/
tools related to the local
State support for
territorial diagnostics,
follow-up, and
assessment of process
by consultants.
Observatory for pays
and Agglomerations.
A more and more
contractual form of
cooperation (CPER).
Setting up web site to
assist local
development
professionals.
Financing of a national
support mechanism for
all French regions.
Mechanisms /means/
tools related to the
business trajectory
Existence of socio-
economic observatories
(employment, training,
etc.) in many local
communities.
economic driving forces
of the territory (not only
in LED) (clusters, LPS,
regional innovation
systems)
Promotion and
support for setting
up local production
systems
Priority given to
evaluation / assessment
in LED
Since relatively recently, following the example of the European Union, programs are subject to
mid-point and terminal assessments.

37
2.6 The European Union
The European Union was comprised of 15 countries in 2000 and accounted for nearly
half of the population of Europe, or nearly 375,000,000 inhabitants. It will increase in size
in 2004 with 10 new countries from East Europe, increasing its population to close to
450,000,000 inhabitants. It is not easy to describe the European Union because of the
tremendous diversity of countries, contexts, cultures, and economic situations. The
Gross Domestic Product (GDP) per inhabitant, already exhibiting very marked contrasts
in the ‘Europe of the 15’, will have even larger disparities in the new ‘Europe of 25
countries’. The Cohesion Policy of the European Union aims to take this into account,
and to work towards eliminating this disparity as much as possible in order to make
Europe, first, a real common market, and second, a relatively homogenous territory in
terms of the level of living conditions of its inhabitants.
2.6.2 Highlights for the European Union
A regional development policy and funds that have up to now been oriented
towards reducing regional disparities;
The only European programs for local economic development in rural areas that
are really holistic are programs that are in fact relatively modest, such as the
LEADER community initiative;
A clear distinction between urban and rural development. The latter is in fact
under the supervision of the Agricultural Directorate that ensures the
implementation of the Common Agricultural Policy (CAP);
Programs intended generally for areas in difficulty, except for more social
measures that are applicable to all territories in the European Union;
The programs of the European Union have benefited from a certain stability up to
now;
Direct relationships exist between the intra-national regions and program
managers in Brussels (the European Union). But these relationships risk
disappearing with the arrival of new countries that wish to retain control over their
own regional development;
A vision of development that is in the process of being redefined. A possible
reorientation towards focusing on economic driving forces in order to satisfy the
stated objective of making Europe the most productive economy in the world by
2010;
Roles involving technical assistance, guiding and providing incentives for proper
systematic assessment, allowing member States to remain sovereign in their
territories, while being accompanied in a logic of regional socio-economic
development. This role is however being questioned in the context of the arrival
of 10 new countries from East Europe in May 2004.

38
2.6.3 Analytic Framework for the European Union
objectives for LED
programs
The approach of the
European Union in
relation to LED has so
far been proactive.
Stated objectives of
reducing regional
disparities within the
European Union.
Certain programs such
as LEADER are holistic.
The differences in PIB
between the countries of
the Union have been
reduced but they have
become accentuated
between the regions
(intra-country) of the
member countries. The
LEADER program may be
“drowned” in the whole
range of issues of the
CAP.
The arrival of 10
new countries is an
opportunity to place
the Eastern
Countries of Europe
into a cycle of
learning about LED.
The arrival of 10
new countries may
compromise the
proactive approach
of the European
Union because of
a lack of means
and a reorientation
of the policy of
reducing regional
disparities.
The LEADER
program has been
classed among the
experimental
actions for years. If
it does not move
into the
“mainstream”
soon, it may
disappear.
cooperation between
The relations between the
Union and the member
states have not always
been good. Moreover, the
Union has developed
increasingly direct
relationships with the
regions.
The arrival of new
countries might
limit direct
relationships with
regions because of
sovereignty issues
for the new
member States.
Mechanisms /means/
tools linked to the local
The LEADER
Observatory integrated
the pedagogical
functions of scanning,
training and analysis of
practice.
The activities of the
Observatory are for the
moment interrupted
because of lobbying by
farmers (CAP).
Mechanisms /means/
tools related to the
business trajectory
The General Office of
Competition of the
European Union puts a
brake on many processes
intended to help
businesses.
economic driving forces
of the territory (not only
in LED) (clusters, LPS,
regional innovation
systems)
The European Union
contemplating
supporting regional
innovative systems
related to cluster
concept.
Priority given to
evaluation / assessment
in LED
Assessment is required (sometimes annual, mid-way through a program and at the end of a
program).

39
2.7 Australia (New South Wales region)
The State of New South Wales is one of the most important in Australia in terms of
population and economic activities. A good proportion of the State’s population of 6.6
million inhabitants live in the Sydney metropolitan region (nearly 63 % of the State’s
population), which also represents a very important proportion of the state’s economic
activities. Nevertheless, the population is less geographically polarized than in other
Australian states.
2.7.2 Highlights for New South Wales
In New South Wales, responsibility for economic development is located within
the same ministry that is responsible for business development;
Many local and regional organizations play an important role in the articulation of
the programs of the State and local territories;
An emphasis is placed on the development of industries, infrastructure, trade,
businesses (small businesses and particularly existing businesses), and
community self-development;
There is no sector-based orientation given to economic development, and the
main initiatives come from the communities;
The programs seldom target different categories of territories;
The different budgets allocated to regional and local development are relatively
limited (very limited in the case of New south Wales);
The development of partnerships with communities is relatively important in the
State’s policy;
An emphasis is placed on the role of the state as a guide, facilitator, counsellor
and source of strategic information and even as trainer;
Overall, evaluation is not a priority even if periodically there are internal
evaluations or assessments.

40
2.7.3 Analytic Framework for New South Wales
objectives for LED
programs
Development of
businesses and
principally of
employment are the
main goals of the
ministry responsible for
LED.
Does not deal with the
economic region of Sydney
in relation to LED.
An opportunity to
set up a policy
and programs
covering the
whole territory of
the state in a
more systematic
way.
With polarization
of economic
activity, efforts
aimed at non-
metropolitan
regions may well
be marginalized.
cooperation between
Links should exist between economic development
and social development but they are not very obvious
in reality.
The fact that
every decision of
the State cabinet
must be
accompanied with
a declaration of
the impact on
rural communities
of decisions
concerning
projects is an
opportunity to
seize in better
coordinating the
different
interventions of
the State and
managing
consultation
between different
ministries and
agencies.
Not to seize the
opportunity to set
up a policy and
coherent
programs could
be a missed
opportunity to
balance the
potential of
development
between the
Sydney
metropolitan
region and
“regional” New
South Wales.
linked to the local
Services, access to
services, the
infrastructure supplied
by the State itself.
Support and advice to
regional organizations in
terms of strategic
planning and the
development of
leadership.
Support for the training
of development officers.
Even if the state shows it
has appropriated the roles
of guide, facilitator, etc., it
is not at all obvious that
this policy is effectively
followed through on the
ground.
trajectory
Financial aid (grants), business advice and strategic information: interventions (services) are
therefore relatively traditional.
Expected results
Quantitative
(Empowerment, strategic
planning, etc.)
Support to processes of strategic planning. Without systematic diagnosis, there is a risk of not
being able to intervene except sporadically. Although these services are important, an
approach involving just offering services does not necessarily contribute to a better balancing
of economic development across the State’s territory.

41
Quantitative (Employment,
businesses, salaried
workers trained, etc.)
Retain rural population, creation of employment and development of small business are the
expected results. But these results are not articulated in terms of balancing the potential
between the different territories of the state.
regional innovation
systems)
Globally, the State places much emphasis on the economic activities of the Sydney region
which possesses a diversified and dynamic economic base.
International scale activities are pursued, e.g. attracting head offices of large corporations
and foreign investment.
In reality, an important emphasis is placed on this “geographic” engine of growth.
Priority given to the
evaluation and assessment
in LED
Internal evaluation is undertaken periodically. But no global evaluation has been undertaken;
this does not seem to be a priority.
An opportunity to use a global evaluation process to better coordinate programs and also for
use as a development tool for local and regional actors.

42
2.8 Oregon
The State of Oregon has a population of about 3.5 million inhabitants. Its main city is
Portland, a true metropolitan centre. The rest of the population is spread out between
small and medium-sized towns. This state experienced a rate of demographic growth
substantially above the average American rate during the 1990s.
2.8.2 Highlights for Oregon
One of the first states where an import replacement program was developed; it
has been used as a model by many other states;
An approach integrated with the problems and planning of communities, involving
working in conjunction with local development organizations;
A statement of a general objective of creating “quality” employment and another
more specific one of helping communities improve their infrastructures so as to
strengthen their local economy;
The state provides assistance in terms of the preparation of community profiles,
makes available manuals for preparing an inventory of needs and issues and
assessing community capacities;
Community Solutions Teams (recently renamed Economic Revitalization Teams)
that cover all aspects of community development, including economic
development, aimed at working out made-to-measure solutions to problems and
opportunities confronted by each community;
An emphasis placed on local economic development (even if a great number of
initiatives also deal with social development);
The state plays important roles as guide and facilitator of planning and
organizational processes for local economic development;
Very innovative in relation to inter-ministerial collaboration and the participation of
local municipalities.

43
2.8.3 Analytic Framework for Oregon
objectives for LED
programs
Economic development
(employment,
investment, businesses)
clearly put in the context
of a will to improve
“quality of life” in local
areas.
Large potential for
developing
concerted and
explicit programs
for territorial or
area-based
development.
cooperation between
Clearly displayed
consultation to help the
State as well as local
municipalities and
communities. Note that a
special commission
oversees the principal
ministry to ensure that its
approach remains
coherent and integrated.
There is a risk of not taking
into account all needs
because of a lack of a
broader territorial
diagnosis.
A potential for
organizing a
network in each of
the regions to
facilitate the
construction of
intervention teams
for different
issues.
linked to the local
Innovative tools
available on-line:
Accompanying guide on
the ground; planning
process; construction of
inventories in the
different domains of the
development and
strengthening of
community capacity;
traditional financing.
The danger that initiatives
coming from communities
do not represent the whole
range of situations where
an intervention would be
desirable. A substantial
responsibility rests on the
agents of the State who
deal with the different
territories.
See weaknesses.
trajectory
Traditional financing and
production of strategic
information on request.
Qualitative (Empowerment,
capacity, strategic
planning, etc.)
Quality of life.
Capacity of local actors
and participation in
planning processes.
Employment
regional innovation
systems)
An emphasis placed on development in general, in the context of an open market.
Priority given to the
evaluation and assessment
in LED
The assessments of the different programs are displayed on the ministry’s web site, as are its
annual reports. It is interesting to note that a special commission watches over the principal
ministry to ensure that its approach remains coherent and integrated.

44
2.9 New Hampshire
This American state is relatively small with a population slightly greater than 1.2 million
inhabitants and a demographic growth in the 1960s slightly below the American average
population growth rate. Apart from the southern part situated near Boston, the
population is spread out between an important number of small towns.
2.9.2 Highlights for New Hampshire
Existence of a ministry that groups together a large number of activities oriented
to LED;
A semi-autonomous state agency, the New Hampshire Community Development
Finance Authority, manages grants that can be used to reinforce the capacity of
local actors and other economic development projects. This is the orientation that
is favoured, even if support can be provided to a variety of community projects
through local organizations;
The same agency also supervises a Main Street program and administers the
Federal Community Development Block Grant program;
Overall, a state that has an important presence in terms of economic
development that is mainly traditional in nature, with an agency that possesses
the potential of becoming a innovative tool for local actors if a territorial diagnosis
were undertaken and a more proactive approach to intervention (advice and
financial support) became systematic.

45
2.9.3 Analytic Framework for New Hampshire
objectives for LED
programs
Concentration of several
responsibilities within a
single ministry;
economic development
is a priority activity.
Another agency has a
mission that is clearly
oriented to community
development, but the
economic approach
remains privileged.
A substantial proportion of
the activities remain
“traditional”.
A great
opportunity exists
to promote a more
global territorial
development,
given the
administrative
links between the
agencies.
cooperation between
The agencies concerned
with LED are either
within the same
department, or in a semi-
autonomous agency that
maintains links with the
ministry, thereby
facilitating consultation.
Potential really
exists, especially
through the
leadership of the
financing agency
for community
development
linked to the local
Support in terms of advice and financing (by project) to Regional Development Corporations.
Although processes of strategic planning by local actors are discussed, the emphasis is put
on project financing, including process projects, on a case by case basis.
trajectory
This is rather indirect, through support for the capacity and working capital of local and
regional organizations that offer services to current and potential businesses.
Expected results
Qualitative (Empowerment,
capacity, strategic
planning, etc.)
Better integration of
underprivileged
segments of the
population.
Important emphasis
placed on employment
and business
development.
regional innovation
systems
Overall, the emphasis is on traditional development and the development of external markets.
The agency was the object of an assessment of the economic impacts of its community
financing approximately 5 years ago.

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