Local and regional governments have an important role to play in the response to globalisation. They can develop policies to support city and regional competitiveness in an increasingly dynamic and open economy. They also strive to make their industry competitive in the world economy, to offset the impact of delocalisation of business activity and to promote the quality of life in their area.

The response from local authorities to the challenges of globalisation has been the subject of constant attention by the LEED Programme. This activity identifies the driving forces of change to which local authorities must respond and establishes what their policy strategy should include. With increased mobility of capital it is also important to develop appropriate policies to attract, retain and embed inward investment and to respond to plant closures where they occur.

In examining how local authorities should respond to globalisation this activity highlights the linkages between different policy instruments, insisting on the need for integrated and coherent strategies. To achieve these goals, they pursue local development strategies which ideally have a long view and a strong endogenous component. There is therefore a strong focus on holistic strategy building for city and region economies as well as assessment of individual instruments.

Several projects have been developed to meet the needs of the numerous partners gathered in the LEED’s Forum on Cities and Regions. In particular, a cross-national case study review of best practice policies for inward investment and local development, a study on the financial tools that can be used by local authorities to support local development projects, and work on what it takes to be a smart or sustainable city.

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