Coaching para el desarrollo de competencias personales en Dirección de Proyectos

Both the association in Dębrzno and the "Partnership of the Northern Necklace" implemented institutional arrangements that were capable of providing local public goods, namely an improved level of human capital as well as improved conditions for local businesses. As summarized in Table 4-5, in so doing all three governance structures enabled inhabitants to coordinate their actions in order to exploit gains from cooperation.

Though in the 1990s there was a lack of educational facilities and vocational trainings, or such trainings did not provide the inhabitants of Dębrzno with skills required on the local labor market, the local association and the partnership acted themselves as institutions that established workshops, seminars, trainings and a local labor agency so that inhabitants were encouraged to improve their skills. Those facilities, largely financed by public money, prepared local inhabitants for the requirements of the local market because the main initiators of the workshops and seminars were community members who were familiar with the local condi- tions and needs. Therefore, local job-seekers benefited since they were able to im- prove their skills and to receive employment or start-up their own business. Local businesses also benefited as they were able to employ workers sufficiently skilled for the jobs they offered. The local labor agency works similarly, as it simply con- stitutes an institutional arrangement which improves the performance of the local labor market by facilitating contact between employers and job-seekers. Inhabitants

were able to inform themselves about what local businesses require and local busi- nesses were able to inform themselves of the job-seekers available on the local labor market. The labor agency was financed by public funds but managed by community governance. Inhabitants who make use of the labor agency, regardless of whether they are employers or job-seekers, thereby visualize their agreement on this institutional arrangement. Finally, in Section 4.3.2 I argued that although all inhabitants would benefit from an improved level of human capital in Dębrzno, a large share of inhabitants rarely undertake actions to improve their own skills since they did not expect to be prepared properly for local job offers, or to start-up their own businesses. The association and the partnership, however, provided inhabitants with incentives as they prepared them for the local labor market, as well as with a favorable business environment so that inhabitants began to improve their skills, which also improved the attractiveness of the region for new investors.

Table 4-5: Success factors of the association and the "Partnership of the Northern Necklace" distinguished by market approach, governmental regulation, and community management

Market approach _{(Governmental levels)} State Community

- Application of national and international funds in competition with other regional entities - Local label prepares

local entrepreneurs for competitive markets and also secures a sustain- able economic develop- ment when public support decreases

- Initial public investments were necessary to found a fund that was further managed by the commu- nity

- Financial contribution from local government enables application for funds that require pre- finance

- Excludes free-riding in financing projects like the Green Way or the local brand

- Fiscal equalization enabled larger invest- ments in the region

- Local provenance of initiators facilitates trust between local in- habitants and association members

- Local provenance of ini- tiators enable the asso- ciation to build on local needs

- Close contact between association members and inhabitants, e.g. in thematic working groups, enables the association to develop projects together with local partners

- Use of traditional incen- tive systems like reputa- tion is possible due to the local provenance of the association members

Local entrepreneurs’ access to capital was facilitated through the local business incubator. With the help of the latter and the Canadian Loan Program, access to capital for local entrepreneurs became a good that is now to a large extent managed by community governance. Since access to capital based on market mechanisms was lacking, the fund, which was publicly provided, is now managed by local in- habitants. Community members did not make any initial contributions to the fund since there were no institutional arrangements capable of monitoring and coordina- ting inhabitants’ contributions to prevent the free-riding option. That is why it was useful that the initial sum of money was publicly provided. However, now the con- ditions under which inhabitants can apply for credits were adjusted to the local situation. The local business incubator thus constitutes an institutional arrangement that enables local inhabitants to exploit gains from cooperation. Local inhabitants enter into exchange under community governance. The latter pay interest rates for the credit, whereas those interest rates repaid by lenders enhance the fund so that new loans for other local businesses are available. Consequently, the conditions for local businesses improved and investment activities were enhanced.

The local brand implemented by the partnership facilitated the coordination of in- vestments undertaken by local businesses. While in the 1990s, local businesses did not coordinate their investments and, therefore, did not exploit gains from coopera- tion, the local association provided the basis for common local economic develop- ment by elaborating a local development strategy in the late 1990s. Projects con- ducted by the local association and the partnership, whether its focus was on the development of human capital or the improvement of local business conditions, were always oriented towards the following principle objectives: a) to strengthen environmental-friendly production of all types of products in local businesses; b) to facilitate access to or create markets for those products; and c) to combine the latter business development with ecological tourism activities. Local businesses were able to integrate their investments in the strategy and new businesses were also encouraged to undertake investments according to the strategy. Due to the ad- vice they gave and the projects (e.g. the Green Way) they conducted, local busi- nesses received additional coordination from the local association and the partner- ship. Furthermore, due to the local brand, local businesses were also able to enter new markets and thus benefit from a competitive market environment. The local brand also constitutes an institutional arrangement that enables local businesses to coordinate their actions in order to improve market access. While local businesses make use of the brand and produce according to the standards defined, they also agree on this institutional arrangement.

The idea that Dębrzno elaborate a local development strategy was suggested by the Environmental partnership from Krakow, who generally advised the association and the partnership in many different matters.

The local development process would not have taken place without crucial public support. Based on public sources, large projects like the Green Way could be

financed which would otherwise not have been realized due to a lack of money. Those investments, in contrast, were also possible due to the financial equalization among regions that was coordinated by governmental regulation. However, in applying for public funds, the association and the partnership had to compete with other local or regional entities for limited public sources. The competition between regional entities thus ensures the most efficient use of public funds, since applicants are forced to develop profound concepts for regional development projects. One of the most crucial barriers that hampered local inhabitants from cooperation, the lack of trust, was overcome by the local provenance of the association and part- nership members. The latter, and in particular the chairwoman, had a local reputation even before the association was founded. This encouraged other inhabitants to get involved in projects and activities and enabled the association to formulate and conduct initiatives according to local needs. Furthermore, the association also became more and more a connecting link between local inhabitants and the local government, since the association brought the latter groups into close contact with each other. Inhabitants were strengthened in their impact on the local government and, thus, local development decisions. Local inhabitants and in particular local businesses can also, without having to join the association officially, contribute directly to the development projects undertaken by the association by means of the thematic working groups.