LOCAL ECONOMIC DEVELOPMENT STRATEGY FOR SUSTAINABLE URBAN DEVELOPMENT IN INDIA by Narayanan Edadan, PhD
• Creating an enabling environment in which the overall economic and social conditions of urban areas, including the law and order and protection of private properties, conducive for private sector investments and employment generations are responsibilities of both Local and State Governments.
leakages in delivering government investment supports. • Locally relevant solutions and strategies must emerge to support the national urban development strategy and national habitat and housing policy for promoting sustainable development and human settlements.
• The flow of private sector investments into cities and towns will be determined by the business climate and competitive advantages of urban regions to exploit local resources more efficiently.
• Central Government should support the State and Local Governments to minimize the investment risks perceived by the investors through appropriate institutional and financial assistances.
• Promoting economic development of small and medium towns with greater regional dependency may formulate an Economic Clustering Approach and the State Government should enable greater investment coordination and integration between local, district and State agencies through appropriate policy and institutional frameworks.
• Private sector, including social enterprises, cooperatives, pro poor businesses, and informal sector, particularly the vending sector, form the heart of the local economy in Bihar and they have vital role in promoting local economic development. • Promoting pro poor business, micro enterprises and vending sector requires political and administrative commitments from the State and Local Governments, and should be supported by formulating Pro Poor Business/ Micro Enterprise Development Strategy and the Urban Street Vending Protection Policy.
• Promoting inclusive local economic development requires the concerted and coordinated action of all agencies to empower local communities through innovative initiatives on land access, skill development, access to finance and markets and developing local entrepreneurs through efficient enterprise development and business linkage strategies.
• People are the main resource of local economies and the development of local human resources through relevant technical skill development, promoting public health and quality of sanitation, etc, are essential for improving the human capital for stimulating local economies.
• Effective implementation of local economic development vision require a reorientation of local and State agencies to redefine the roles of urban local governments to engage private sector and local communities to become partners in local economic development processes.
• Local initiative, energy, creativity, assertive leadership and skills will ultimately unlock the latent potential in local economies and will shape local spaces.
• Improving investment attractiveness requires concerted actions from the State and Local Government agencies on property protection and rationalization of transaction costs by setting up single window approval systems and also plugging
• Promoting local economic development by municipal governments under the prevailing institutional
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