A pillar for integrating sustainable and inclusive policies
The LED represents a way of thinking, planning and acting that prioritizes the leading role of territories in building their own development, recognizing that the processes of economic growth, social inclusion and environmental sustainability must be driven from the local level, with the participation of local actors and a deep understanding of the territorial context.
Local economic development has become a fundamental pillar of social and urban policy agendas, moving away from its previous status as a secondary policy. It is now recognized as a key strategy for promoting sustainable growth in cities and regions.
This shift in focus has emerged in response to a series of challenges and transformations, both globally and locally. The onset of economic crises, national policies ill-suited to the real needs of society, and processes of institutional decentralization have triggered a series of demands from local communities, while simultaneously increasing the responsibility of local and regional governments in terms of attracting investment, generating employment, and improving the quality of life for their residents.
The DEL (Direct Educational Data) is especially relevant because:
1. It puts territories at the center of development
Where each territory has an active and strategic role in its own development, not being a passive recipient of national policies or external investments, but a dynamic space where solutions adapted to its social, economic, cultural and environmental reality are built.
2. Promotes participation and inclusive governance
It promotes the participation of multiple actors (local governments, private sector, universities, civil society, development agencies and instruments, among others) in the planning and execution of development, democratizing decision-making and generating greater co-responsibility among all actors in the territory.
3. Value and utilize endogenous resources
Unlike approaches focused on attracting foreign investment or exploiting resources without considering the local environment, LED (Local Economic Development) is based on leveraging local capital: knowledge, social networks, economic initiatives, cultural heritage, productive capacities, and natural resources. This strengthens the local economy from within.
4. It links the economic with the social and the environmental
It is not limited to the growth of local GDP, but seeks to generate decent employment, improve social cohesion, reduce inequalities and promote environmental sustainability, fostering a more balanced and inclusive development.
5. Increases territorial resilience
By strengthening local capacities, more robust, diversified and adaptive productive and social systems are created, and are better prepared to face crises and economic, social, climatic or health transformations, among others.
6. Promote local innovation and creativity
Successful local experiences can become laboratories of social and economic innovation, capable of being replicated or scaled up, being much more effective than those imposed from centralized national structures.
7. It contributes to greater territorial equity.
By focusing policies and resources on the most disadvantaged territories, LED helps to close regional gaps and promotes more equitable development, strengthening territorial cohesion and reducing the concentration of development in a few urban areas.
8. Facilitates alignment with the Sustainable Development Goals (SDGs)
The SDGs require implementation at the local level, and LED is a concrete way to materialize global goals in local realities, such as the fight against poverty, decent work, sustainable production or gender equality.
9. Strengthens local institutional capacities
It promotes effective decentralization, multi-level coordination, and alignment with national policies.
10. Generates greater ownership and sustainability of policies
When development processes are designed and managed from the local level, the sense of belonging and the sustainability of the initiatives increase, and the solutions are more lasting because they respond to real needs and have the commitment of the community.