Local development: toward a leading role for cities and regions

(Caracas, June 16, 2010).- Local development: toward a leading role for cities and regions is the theme of the new Report on Economy and Development, RED 2010, launched by CAF as part of the institution’s actions to promote reflection on key issues for Latin America.

CAF President & CEO Enrique García said, "this sixth edition of RED is a contribution to the debate on the function of subnational governments jointly with other local actors in the economic development of Latin America." He added, "the idea is to promote deeper knowledge of the region, explore problems that affect our countries and contribute possible solutions on which an institution like CAF can cooperate in an effort to support the development of its shareholders countries."

Among the findings contained in RED, García said the evidence on patterns of territorial development in Latin America shows significant disparities in levels of production, income and wellbeing within countries. He added, "there are cases of territories and city-regions which have been very successful in promoting the productivity of their firms and industries and the quality of life of their inhabitants."

The analysis of the experiences presented throughout the publication suggests that a successful local development strategy needs to be integrated; in other words, it must act on all the determining factors, and at the same time be focused from the territory, which is why subnational governments play a primary role in its design and management, he said.

This publication, edited by CAF, aims to contribute to the understanding of local and regional development patterns and identify public policies options which make economic growth compatible with the balanced development of the territories inside economies, with a high level of participation by subnational governments and institutions in the design and execution.

"The Agenda for Integrated Development proposed by CAF is an attempt to bring about high, sustainable and quality growth; a process which requires tools to stimulate the debate on how to achieve the objectives of the agenda, and RED is one of the spaces for such a discussion" García said.

The content offered by this edition of RED covers the following themes:

• Development from the territory: promoting local initiatives
• Globalization, productive concentration and spatial disparities
• Human capital in movement
• Decentralization and local development
• Local management in Latin America: some development patterns
• Institutions and local productive transformation
• Quality of life in the city
• Citizen security from the territory