In recent years regional and local economies have had to face increasing challenges. The process of globalization is rapidly altering the economic status quo and presenting new economic opportunities and risks for cities, regions and nations all over the world.

In this changing context, national and local governments, as well as enterprises and other organisations have to rethink development strategies in order to cope with and to take advantage of existing transformations.

As opposed to traditional development policies, Local Economic Development strategies:

• empower local societies and generate local dialogue. People living in areas of the world that have until recently had little say or control over the economic activity taking place in their territory, begin to adopt a more proactive stance with regard to their own future;

• help to make local institutions more transparent and accountable and contribute to the development of the local civil society;

• make economic activity dependent on the specific economic conditions and comparative advantages of a defined territory, generate sustainable employment in firms more capable to withstand changes in the global economic environment;

• contribute to a general improvement in the quality of jobs as a result of the involvement of local stakeholders and of the rooting of economic activity in a territory.