STRATEGIC PLANNING FOR ECONOMIC DEVELOPMENT

North East Region of NigeriaNorth East Region of Nigeria

Outline

• The Necessity for Economic Development• The Role of Strategic Planning• The North East Context• Features of Economic Development• Guideline on Economic Development

Programme• Implementation Plan• Conclusion

The Necessity for Economic Development

• Setting up an Overall Economic Development Program is geared towards contributing to– The effective local economic development in distressed

areas of our society – By establishing a locally based, regional planning process.

• The process will encourage the local community – To think strategically about itself, – Its assets and liabilities,– Where it wants to go, and – What steps it must take to get there.

The Role of Strategic Planning 1/2Time spent in developing an economic development strategy

will pay big dividends because it will:• Outline The Steps to Follow

– Economic development does not just happen. It requires the community to identify a number of intermediate steps to reach its final goals.

• Promote Efficient Use of Scarce Resources – A significant amount of money, time, and people will be

required for economic development efforts and the limited resources available must not be wasted. The plan will provide rationale for resource allocation.

• Improve Coordination– Many programs, activities, groups, and individuals will be

involved in the development effort and it is important that they not overlap or conflict. The plan will serve as a vehicle for communicating development activities.

The Role of Strategic Planning 2/2• Build consensus.

– The public and the private sector must agree on the major issues involved. This will lead to support in implementing the plan.

• Increase public awareness.– Without public support, economic development cannot happen. It

is important that the public know how development occurs and how it affects the community.

• Strengthen the community’s competitive position. – A community with a strategy will not only be inherently more likely

to succeed, it will appear more attractive to potential business or industry than a community without a plan.

• Encourage forward-thinking. – The strategy will encourage community leaders to think about the

future and to not overlook opportunities for development as they arise.

The North East Context 1/3• North East comprises of Taraba, Yobe, Gombe, Borno, Bauchi and

Adamawa states.• PopulationPercentage of North East Geopolitical Zone Population

STATE POPULATION %

Adamawa State 3,168,101 2.263

Bauchi State 4,676,465 3.340

Borno State 4,151,193 2.965

Gombe State 2,353,879 1.681

Yobe State 2,321,591 1.658

Taraba State 2,300,736 1.643

TOTAL 18,961,965.00 13.55

The North East Context 2/3• 70 to 90 percent of the working-age demographic is

engaged in subsistence farming or other agriculture-related activities.

• With the relatively lower rainfall, vast areas of grassland are used to support livestock (e.g. cattle, sheep, and goats), and one of the largest cattle markets in West Africa is found in Potiskum, Yobe State.

• In addition, a wide variety of crops (such as potatoes, sugar cane, wheat, groundnuts, millet, sorghum and cowpeas, cotton, yam, groundnut, tobacco, maize, beans, guinea corn, millet, ginger, rice, cassava, ginger, vegetables, mango, cashew, guava, pawpaw) are grown in this region

The North East Context 3/3• Minerals found in these regions include salt, clay, serpentine,

asbestos, amethyst, kyannite, gold and graphite, rutile, sand, granite rocks, asbestos, gold, uranium, nickel, chromite, tourmaline, amethyst, marl stones, potash, iron ore, copper, white quartz, chamovite, limestone , and antimony.

• The region supports vibrant leather works, weaving, dyeing and other forms of textiles, carpets, calabash designs, etc

The north east context

SECURITY CHALLENGE• The terrorist attacks launched on some states in the

North by a group referred to as the Boko Haram, are having a negative impact on business and economic activites of the region.

• This has posed a lot of challenges on marketing of agricultural produce and other forms of business activities in the region .

• The incessant attacks have also created fear and anxiety in many farmers and potential business partners and investors around the region

Features of Economic Development

• Guidelines: Propose a new set of Comprehensive Economic Development Strategy guidelines.

• Relationships: Stresses the need for regional and local authorities to make the strategic planning process more inclusive, seeking greater collaboration with other federal agencies, state governments, and the private sector.

• Capacity Building: Recommends ways in which investment in planners at the regional and state level can lead to the necessary system and practice improvements to ensure that strategic planning for economic development is indeed more consequential.

Features of Economic DevelopmentJOB CREATION

• Job creation is the main objective of economic development. • There is a difference between creating job and creating better

jobs. • Job creation is a quality issue not merely a quantity issue. • Jobs ‘’created’’ should support a desired standard of living,

offer sustainability and decent working conditions, and provide opportunity for advancement.

• The goal of job creation is not the job per se rather it is to boost local income.

Features of Economic Development

JOB RETENTION• It is important to retain as well as create jobs because a job

lost means the loss of the economic advantages that resulted from that position.

• Job retention and business assistance go hand-in-hand. When businesses are assisted and encouraged to stay in the community, the existing job base remains intact.

• Most net new job creation will come from existing business within a community and, they are therefore a critical focus for local economic development efforts and programs.

Features of Economic DevelopmentTAX BASE ENHANCEMENT

• This enables state government to support local services and pursue other activities without having to raise taxes.

QUALITY OF LIFE• This is represented by many factors including safety,

education quality and opportunity, poverty reduction, environmental quality, and cultural and recreational amenities.

• It is what makes living, working, and conducting business in a community worthwhile.

• Conversely, detractors from the quality of life in a place, crime, for example, often deserve attention by economic developers and the region.

Guideline on Economic Development Programme 1/2

• There are 3 sets of global recommendations designed to stimulate the effect of strategic planning for economic development; Guidelines, Relationships, and Capacity Building.

• Guidelines: Propose a new set of Comprehensive Economic Development Strategy guidelines.

Guideline on Economic Development Programme 2/2

• Relationships: Stresses the need for regional and local to make the strategic planning process more inclusive, seeking greater collaboration with federal agencies, state governments, and the private sector.

• Capacity Building: Recommends ways in which investment in planners at the regional and state level can lead to the necessary system and practice improvements to ensure that strategic planning for economic development is indeed more consequential.

GUIDELINES

Proposing a new set of Comprehensive Economic Development Strategy Guidelines “Simplify and clarify…, do not lose the inherent flexibility of the existing process (if any), remove all unnecessary requirements, but be clear about expectations and outcomes.”

• Key elements of new guidelines:• Putting up an outstanding “process and plan”• A single set of appropriate guidelines• Consolidation of reporting to one annual report • Introduction of performance measures• A good communications strategy

RELATIONSHIPS

• For strategic economic development planning to be effective in the North East region, engagement of the private and nonprofit sectors and all levels of government is critical.

• Planning cannot be undertaken in a vacuum or behind closed doors among “professionals.” Here will we discuss about the essential relationships that have to be formed between federal, state, and local agencies with the private sector.

• An initiative to explore opportunities for greater integration of local and regional planning requirements imposed by federal and state departments/agencies must be taken.

RELATIONSHIPS

• Active engagement of the private sector—for-profit businesses, labor unions, and nonprofit organizations is the central component of the strategic planning process.

• There is the need to promote private sector participation through outreach to national representative business and labor organizations.

CAPACITY BUILDING

• Challenges in terms of complexity, resources, and expertise are inevitable. To ensure that these challenges do not become insuperable obstacles, there has to be investment in building the human capacity of the region.

• The goal of capacity building is to tackle problems related to policy and methods of development, while considering the potential, limits and needs of the people of the region.

Capacity building takes place on– Individual level – Institutional level– Societal level.

INDIVIDUAL LEVEL

• Capacity-building on an individual level requires the development of conditions that allow individual to build and enhance existing knowledge and skills.

• It also calls for the establishment of conditions that will allow individuals to engage in the “process of learning and adapting to change.”

INSTITUTIONAL LEVEL

• Capacity building on an institutional level involves aiding pre-existing institutions in the region.

• It will not involve creating new institutions, rather modernizing existing institutions and supporting them in forming sound policies, organizational structures, and effective methods of management and revenue control.

SOCIETAL LEVEL

• Capacity building at the societal level will support the establishment of a more “interactive public administration that learns equally from its actions and from feedback it receives from the population at large.”

• Capacity building must be used to develop public administrators that are responsive and accountable as regards economic development of the region

IMPLEMENTATION PLAN 1/2

Four main steps have been identified as pivotal in gaining an executive group’s commitment to Economic Development Program. These are:

• Education on sound Economic Development Programs.

• Gaining Executive Consensus.• Formation of an Executive steering committee.• Development of Initial Plan of Action.

IMPLEMENTATION PLAN 2/2

• These steps are essential in the implementation process of Economic Development program.

• Management will not only understand what Economic Development is and what it involves but at the same time builds internal commitment through exposure to and participation in Economic Development process itself.

CONCLUSION• A comprehensive economic development strategy emerges from

continuous, broad based planning process for tackling the economic problems of North East region.

• The strategy will promote economic development opportunity, foster effective transportation access, enhance and protect the environment and balance resources through sound management of development.

• For the purposes of this proposal, the term “region” refers to areas that have been defined economically, environmentally, or geographically as appropriate units for addressing economic development and related challenges.

• The strategy proposal is as short and easily accessible as possible. Decision makers, and business investors will be able to use it as a guide to understanding the economy of the North East region and how to take action to improve it.

Strategic Planning

Outline

• Introduction• What is strategic planning?• Steps of strategic planning• Strategic planning process• Organising for Economic Development Planning• Benefits of strategic planning• Common problems with the Strategic Planning

Process• Monitoring and Evaluation

What is Strategic Planning? 1/2• Strategic planning is a process in which a

community can look at its current situation and compare that situation to where it would like to be in a certain matter of time.

• In the context of Economic Development, communities can use strategic planning to envision their future and take the appropriate steps, given the local resources, to achieve that future.

What is strategic planning? 2/2

Economic Development strategic planning involves:• A realistic appraisal of available resources, constraints,

and opportunities• The development of achievable goals• The formation and implementation of project action

to reach those goals

*One of the most important tools that economic development organisations can use for effective development is strategic planning.

Steps of strategic planning 1/2

Public and/or private organisations use strategic planning at the local or regional level. The time for each step of strategic plan look as follows:

• Pre-planning Phase– 1 month: Meet with the stakeholders and ask

what they want out of the planning process– 3-5 months: Assessment of the local economy– 4-6 months: Analysis of the information collected

Steps of strategic planning 2/2

• Planning Phase– 2 months: Draw up the economic development

agenda

• Post Planning Phase– 1 month: Review the strategic plan with the

community, finalise it, and prepare for implementation

Strategic Planning Process 1/2• Pre-planning• Assessing the local community and economic

competitiveness• Formulating realistic goals, objectives, and

strategies• Identifying, evaluating, and prioritising projects• Developing plans of action• Implementing those plans• Monitoring and evaluating outcomes• Retooling and adjusting

Steps of strategic planning 2/2

All of the “steps” presented are part of a continuing cycle in which goals are recommended

Organising for Economic Development Planning

• Convening individuals responsible for guiding the design of the strategic planning process

• Identifying stakeholders and defining their participation in the process

• Selecting an organisational arrangement for the strategic planning process

• Specifying and scheduling activities for carrying out the different components of the strategic plan

• Developing a public involvement programme• Determining the technical and financial support

needed for the strategic planning process

Benefits of strategic planning 1/2• It helps a community’s future – strategic planning

helps communities steer their economic development to effectively realize their long-range economic development goals.

• It provides a structure for mutually accepted goals and a common agenda

• It defines the purpose of the community group – it lays out clearly and succinctly for all to see, what the plan is, to make sure there are no misunderstandings, and that all players are focused on the same end goals

• It balances community goals with realistic local resources

Benefits of strategic planning 2/2• A well thought out economic development plan based on

current and historic data on the local economy will provide information for development projects and policies, as well as in forecasting future economic growth

• Based on the information gathered in the economy analysis, an economic development practitioner will better plan and set goals and objectives that are attainable

• Strategic planning calls for community involvement for creative and practical process involving stakeholders (public, private and civic leaders) in formulating and facilitating economic development goals, strategies and programmes

Common problems with the Strategic Planning Process

• Failure to involve a broadly representative cross-section of the leadership• Not involving the general public in meaningful ways• A misunderstanding of the strategic planning process, resulting in

inadequate or inappropriate design• Too much time and effort spent on visioning• No clear identification of priority issues (needs, concerns, problems,

opportunities)• Wish list of action items that do not effectively address the key problems• Failure to assign action to appropriate organisations for implementation• No means for evaluating performance and progress so the process can be

appropriately adjusted• Lack of commitment to keep the process going beyond the initial effor

Monitoring and Evaluation

Monitoring and Evaluation activities help to:– Ensure that the projects are effective and

on track– Justify the costs involved–Determine if adjustments need to be made– Enable the promotion of project success

Monitoring and Evaluation

Objectives of Monitoring and Evaluation– Promote efficient and effective implementation and

operation of the strategic plan and individual project– Ensure that strategic planning goals and objectives are met– Helps minimise delays through the early detection of

problems– Serves as a feedback system for solving problems during the

implementation stage and ensuring that objectives are met– Can even lead to a revision of the objectives themselves if,

during the project implementation, such objectives are found to be unrealistic or impractical

Monitoring and Evaluation

• Monitoring and Evaluation are related but distinct activities.

• Monitoring tracks performance or outcomes, while

• Evaluation compares outcomes to specific benchmarks and to the plan as a whole

• However, Monitoring is essential for carrying out the evaluation of projects

Thank You