Effective collaboration among municipal government, the business sector, and civic society is a crucial element in fostering local economic growth.  To help achieve this, the LGPA program has formed bi-partisan and broadly representative Local Economic Growth Committees (LEGCs) in each target municipality.  Members of the LEGC come from public, private and civil society sectors.  The committees typically consist of 10 - 20 interested and experienced people and are chaired by one of the committee members.  However, committee meetings are open to hear the views of different experts or interested actors, depending on the issue being considered.

In early 2008, each LEGC developed a strategic vision and related annual Action Plan for the future economic development of its Municipality. The Action Plans, which are updated annually, prioritize immediate actions to be taken within the context of a short-term local economic growth strategy, with a view toward restructuring local economic growth policies and actions at the municipal level. Some of these immediate actions are undertaken with LGPA technical and financial support, while others are implemented solely by local participants. 

The local economic growth Action Plans promote improved urban planning and public-private partnerships and identify local programs and projects that generate municipal economic growth. By strengthening institutions, infrastructure, and policies that support private enterprises, the activities outlined in each Action Plan help increase local business investment and employment possibilities while at the same time increasing tax and other revenues for the municipal budget.

The local economic growth Action Plans aim to correct factors that play a negative impact on the economic growth of the municipality and on the quality of local governance.  By so doing, barriers to growth are reduced and a business friendly environment created in our target municipalities. The LEGC's planning and prioritization process helps in assessing these factors.  Through ongoing review of the economic potential and factors in the municipality, a better understanding of opportunities for and obstacles to growth and investment is gained.

The Action Plans also identify opportunities to reform and improve public services, tax collection procedures, and asset management practices in a way that helps attract new business investment.  LGPA works with the LEGCs to promote the municipality and to identify and attract potential domestic and foreign investors. Our ten municipalities are strengthening the involvement of all interested actors in LEGCs, establishing participatory budgeting mechanisms, and creating local government outreach tools such as newsletters and websites, to improve communication and dialogue. Transparency of target municipalities is increased through open committee meetings, transparent processes for purchasing, leasing and disposing of municipal assets, and an open budget process.

For more information regarding this component, please contact Ornela Shapo, Local Economic Growth Team Leader, oshapo@lgpa.al; 069 20 33 825.