Figure 1 . The Determinants and Enablers of Economic Development
= Determinants
= Enablers
© SC Lennon & Associates
THE DETERMINANTS AND ENABLERS OF ECONOMIC DEVELOPMENT Efforts to develop local or regional economies are most successful when they focus on the determinants of economic development , by building on local comparative and competitive strengths and advantages . A region ’ s comparative advantage stems from its geography , the natural environment , amenity and location , its population and the availability of its natural resources . Businesses can use a region ’ s comparative advantage to build a competitive advantage , which is developed through a combination of factors such as knowledge , human and financial resources , skills , entrepreneurship and the ability to innovate .
So , while business and industry drives economic growth and development , the role of Councils ( and other key agents of change including State and Federal Government agencies , regional development organisations and infrastructure and service providers ) is to influence the ‘ enabling environment ’ for economic activity , that is , the services , infrastructure and support mechanisms required to facilitate positive change .
THE ‘ CORE ’ ECONOMIC DEVELOPMENT ACTIVITIES OF COUNCILS Having regard for the above , it becomes clear that a Council ’ s ‘ economic
development role ’ cuts across all areas of the organisation ’ s work and strategic objectives and typically involves multiple departments . What sorts of activities then should a Council ’ s economic development unit focus on as its core functions ?
The answer lies in four key areas of focus , what I refer to as : ( 1 ) preparing for prosperity ; ( 2 ) enabling prosperity ; ( 3 ) encouraging prosperity ; and ( 4 ) promoting prosperity . Each is explained in turn as follows .
Preparing for Prosperity – Research and Information Brokerage , Planning and Place Management Local government , in its capacity to identify , establish and nurture effective economic partnerships , can support local business establishment , innovation and entrepreneurship through its networking , facilitation and information sharing capabilities . In this sense , it plays an important role in the economic development space as a regional solutions broker or ‘ concierge ’.
Often a first point of contact for the business community , Councils play a role in informing businesses of State and Federal Government assistance programs that are available to help individuals develop their business skills or to support businesses with access to support programs . This has been particularly important in the past year with the impacts of COVID-19 affecting businesses across a diversity of industries , particularly those in the store-based retail , personal services , arts and recreation services and restaurants and cafes sectors .
COVID-19 has negatively affected the Australian economy by disrupting consumer demand and business supply . Consumer sentiment has deteriorated significantly , weakening demand across most industries . A number of Councils I have been working with in the past year , in regional New South Wales , South Australia and Queensland , have adopted a range of initiatives to help businesses manage the impacts of COVID-19 . This includes , for example , providing local businesses with information on services including business planning and continuity management , financial planning and support , human resource management , marketing and promotion , taxation support , mental wellbeing support and other networking and referral services offered by key State and Federal Government agencies .
In preparing for prosperity , local government has an equally if not more important role to play in its capacity as a regulatory body and local planning authority . Strategic land use planning , development controls and other regulations have a significant impact on economic development outcomes and are perhaps the most powerful tools of Councils when working to facilitate and enable economic development .
ECONOMIC DEVELOPMENT JOURNAL VOL 14 NO 1 2020 17