The challenge

Local economic development is now widely regarded as an effective strategy for achieving inclusive economic growth and territorial development. It is a locally-driven, participatory development process intended to encourage the public sector, civil society actors, women, youth organizations and private stakeholders to work in partnership in the design and implementation of local development strategies by taking into account the strengths and weaknesses of a region, a locality or a value chain. Local economic development strategies enhance links between economic growth and jobs creation. They contribute to improving local governance through enhanced stakeholder participation, a partnership among different actors and by fostering relationships between different levels of government


Municipal revenue generation improved to
in Somalia and over 90 per cent in Afghanistan through policy enhancements and provision of technical support.
More than
partner cities implemented strategies for improved urban and municipal finance.
Livelihoods for
urban youth were improved through entrepreneurial and technical skills training and start-up grants.

News and Stories

Highlighted publications

Technical Report
Financing Sustainable Urban Development
Technical Report
Global Compendium of Practices on Local Economic and Financial Recovery
Technical Report
Report on Sustainable Competitiveness of Cities Worldwide(2019-2020)
Tools and Guidelines
Finance for City Leaders Handbook -2nd Edition
Technical Report
Exploring the Role of Participatory Budgeting in Accelerating the SDGs: A Multidimensional Approach in Escobedo, Mexico
Technical Report
Economic Foundations for Sustainable Urbanization: A Study on Three-Pronged Approach: Planned City Extensions, Legal Framework, and Municipal Finance

Donors and partners

The successful implementation of local economic development strategies largely depends on strength of partnerships among local authorities, local communities, private sector, and civil society actors. At the project design stage, UN-Habitat helps local authorities identify key partners who can contribute to achieving project’s objectives, particularly creating jobs and economic growth.

Our Experts

Cecilia Andersson
Chief(a.i). Planning, Finance and Economy Section
Urban Practices Branch, Planning, Global Solutions Division