For the SDC, local economic development is not just an economic matter but a cooperative approach which provides an excellent tool for bringing together different interest groups to agree on local cooperation that can help create jobs and income, in addition to improving governance.

SDC focus

Moreover, local economic development can also strengthen governance at national level. In countries like Kosovo or Burkina Faso, the SDC conducts local economic development activities which have been implemented simultaneously in several towns. This has enabled municipalities (or rather territories, because each town has close links with its peri-urban and rural hinterland) to exchange information and experience that are specific to them. This has led to better cooperation among local authorities and thus added weight to the local dimension in dialogue with central government.

Background

Local economic development brings together various stakeholders from civil society, as well as the public and private sectors. Its goal is to promote cooperation so as to develop a given area. Cooperation is a key factor in governance. Local economic development (LED) triggers a political process in which the protagonists have to negotiate the priorities bearing in mind the limited human and financial resources at their disposal.

Forces that drive the economy

Economic considerations drive the private sector. Cooperation on creating public goods, such as improved framework conditions for investment, calls for a private-public collaboration that is built into concrete projects ("We'll build the road, and you'll build the factory. You tell us what's not right about the investment climate, and we'll put it right."). In this way, combined LED efforts create new business prospects. The public sector needs the private sector for local economic development.

In virtually every country, it is the private sector that creates most jobs and generates income, and jobs and income are a priority for the public sector's customers and voters. Poverty reduction and – perhaps more important for a civil servant – re-election of the mayor and his staff depend on the generation of income.

Governance as a process

Civil society, like local associations, should also be part of planning and implementing development projects in which the economic dimension is obviously not the only issue at stake. The State and local government do not cover all the ground. So the three stakeholder groups – the public and private sectors and civil society – negotiate and cooperate on the basis of concrete information derived from evaluating the strengths and weaknesses of the local economy, as well as the opportunities and risks involved. This dynamic exchange between partners improves governance at local level.

Current projects

Object 817 – 828 of 971

Multi Donor Trust Fund (MDTF)

01.12.2013 - 31.12.2022

The MDTF aims to reduce the socio-economic marginalisation of people, with focus on women, religious minorities and internally displaced people, in the Pakistan border regions to Afghanistan; the fund will contribute to state-building in the most fragile regions of the country by strengthening capacity of the subnational governments. Consequently, the population will get increased access to basic services and livelihood opportunities.


Improving Financial Protection and Quality of Care (Contribution to a World Bank Hybrid Trust Fund)

01.09.2013 - 31.08.2023

Kosovo has initiated a wide-ranging health sector reform, a cornerstone of which is the introduction of the mandatory health insurance. Given the complexity of the reforms, technical support will be crucial in assisting an effective implementation. Moreover, a better informed targeting of public subsidies will protect poor people from either foregoing health care or being impoverished due to out of pocket payments for health care in case of ill health.


Institutional Support to Network of Associations of Local Authorities in South East Europe (NALAS)

01.07.2013 - 31.12.2022

With an institutional support to the Network of Associations of Local Authorities of South – East Europe (NALAS), SDC supports the decentralization and democratization processes as well as stability in South East Europe (SEE). NALAS strengthens national associations of local governments and fosters communication and cooperation among them. Through its advocacy activities, NALAS will support local governments in SEE to become more visible and taken into account, both by national governments and European institutions.


Aga Khan Foundation: Integrated Health and Habitat Improvement (IHHI) Rasht Valley

01.07.2013 - 31.12.2017

Tajikistan is the poorest country of the former Soviet Union and is marked by a sluggish transition and fragility patterns. This project contributes to improving the Rasht Valley (the most neglected and fragile area of the country) population’s quality of life through better provision of and access to water and health services, as well as increased resilience against natural hazards. Moreover, it enhances professional skills and empowers the local population in planning and investing in its communities.


Programme d’Appui aux Filières Agropastorales de Sikasso – PAFA

01.06.2013 - 30.09.2021

La DDC soutient le Conseil Régional de Sikasso et les partenaires privés locaux dans l’amélioration des conditions cadres pour le développement des filières pomme de terre et lait. Les appuis apportés contribueront à une meilleure organisation des différents segments de ces filières, de la production au marché et à la valorisation locale des produits au profit des petits producteurs et transformateurs. A terme, plus de 360'000 personnes assureront leur sécurité alimentaire et réduiront leur pauvreté.


Swiss Programme for Research on Global Issues for Development - Research Module on Ecosystems

15.05.2013 - 31.12.2023

Enhancing sustainable and climate-friendly use and management of ecosystems for human well-being is at the core of a new research module in the context of SDC’s and the Swiss National Science Foundation’s (SNSF) joint r4d Program (Swiss Programme for Research on Global Issues for Development; www.r4d.ch). Researchers from Switzerland with their partners in Africa, Asia, and Latin America will jointly generate new insights and develop innovative concepts and tools for a more sustainable and equitable provision of ecosystem services benefiting the poor.


Swiss Programme for Research on Global Issues for Development - Research Module on Food Security

15.05.2013 - 31.12.2023

Achieving food security remains a global challenge. The SDC’s and the Swiss National Science Foundation’s (SNSF) joint r4d Program (Swiss Programme for Research on Global Issues for Development; www.r4d.ch) will promote research and innovation in agricultural and food systems to enhance food security in the context of global sustainable development. Researchers from Switzerland with their partners in Africa, Asia, and Latin America will jointly generate new insights and approaches that contribute to meet the global demand for food in an environmentally and socially sustainable way.


Police Capacity Development on Election Security through the UNDP Election Support Program

01.04.2013 - 30.09.2013

On 11th May 2013, the Election Commission of Pakistan (ECP) will, for the first time in history, administer a transition from one full term democratic elected government to another. The probability of electoral violence threatens this opportunity. The police are the most important player in smooth conduct of election security. Yet, the majority of the police force has limited knowledge of electoral security protocol. With a contribution to the UNDP Election Support Program the capacity of police in election security will be enhanced.


Catastrophic Microinsurance in Central America

01.03.2013 - 31.03.2022

Central America is a natural disasters prone region where large vulnerable populations suffer over-proportionately from increasing frequency and impact of climate change events, as traditional disaster coping mechanisms are eroding with growing environmental pressures and rising urbanisation. The public-private development partnership with Swiss Re, FOMIN, and KfW’s Climate Adaptation Fund supports MiCRO in strengthening the disaster resilience of at least 80’000 vulnerable households by 30.9.2016.


Institutional Governance and Greater Financial Inclusion in microfinance

01.02.2013 - 30.09.2022

Financial services can be delivered in the long term only with sound, healthy financial institutions. Inappropriate Corporate Governance (CG) of microfinance institutions (MFIs) including Savings and Credit Unions / Cooperatives (Cooperatives) is the main cause for bankruptcy of the MFIs or over-indebtedness of their clients. Based on the experience of a SDC project in Central America on CG reforms and based on similar other relevant experiences and methodologies, FOMIN and SDC will promote CG reforms in Latin America and the Caribbean.


AsDB/AsDF: Asian Development Bank / Asian Development Fund – Core Contribution

01.01.2013 - 31.12.2021

The Asian Development Fund (AsDF) managed by the Asian Development Bank (AsDB) grants loans to its poorer member countries in the Asia-Pacific region to help them reduce poverty and improve people’s quality of life. This should be achieved through inclusive and environmentally sustainable growth and regional integration.

Country/region Topic Period Budget
Asia
Other

Sector not specified

01.01.2013 - 31.12.2021


CHF 48'000'000



Plannes Project: Promotion de la coopération transfrontalière locale

01.01.2013 - 31.12.2021

Jusqu’ici, l’UEMOA[1] a abordé l’intégration régionale par le haut, à travers les Etats. Les collectivités territoriales ne sont directement éligibles ni à ses allocations budgétaires[2], ni à ses programmes sectoriels. Le Conseil des Collectivités Territoriales (CCT) veut changer cette situation en initiant le PCTL qui donne aux élus locaux les ressources pour réaliser des projets transfrontaliers améliorant l’accès des populations aux services publics de base.  Il replace la décentralisation au cœur de l’intégration régionale et du développement socioéconomique.

[1] Union Economique et Monétaire Ouest-Africaine créée en 1994 et regroupant huit pays d’Afrique de l’Ouest.

[2] De 1996 à 2006, l’UEMOA a alloué aux pays CHF 270'000'000 au titre de compensations financières liées à l’intégration. Ces ressources sont destinées exclusivement aux Gouvernements.

Country/region Topic Period Budget
West Africa
Governance
Other
Rule of Law - Democracy - Human rights
Decentralisation
Sector not specified
Public sector policy

01.01.2013 - 31.12.2021


CHF 8'187'500


Object 817 – 828 of 971