Private Finance And Economic Development - City And Regional Investment
by Jonathan Potter  

Publisher:   OECD
Number Of Pages:   226
Publication Date:   2003-06-30
ISBN-10 / ASIN:   9264101993
ISBN-13 / EAN:   9789264101999

Objectives ..................................................................................................12
Why has leveraging private finance become a critical issue for
OECD cities and regions?..........................................................................13
Pressures on the public sector ................................................................13
Pressures on the private sector ...............................................................14
Why has London taken a lead by organising this conference and
book with OECD? .....................................................................................16
Tools and examples examined...................................................................19
Structure of the report................................................................................21
References .....................................................................................................22
Introduction ...............................................................................................24
The importance and role of leveraging private sector investment
for local development ................................................................................25
Case studies in community building, SME development and the renewal
of brownfield sites .....................................................................................28
Community building ..............................................................................28
SME development..................................................................................34
Brownfield development........................................................................41
Lessons learned from the case studies and experiences of delegates ........46
Ways of leveraging private investment..................................................46
Critical success factors for public-private co-investment ......................49
How far is successful experience able to be transferred to other cities
and regions .............................................................................................51
Conclusions ...............................................................................................52
The necessity of economic strategy and public investment for
successful private leveraging.....................................................................56
Why incentives are needed and when to use them....................................60
Leveraging private financing for people or places?...................................70
Conclusion:linking private leverage to public policy and economic
strategy.......................................................................................................71
Introduction...............................................................................................76
The paradox of lack of funds in an abundant market................................76
Supply side analysis...............................................................................76
Demand side analysis.............................................................................81
The paradox explained...........................................................................83
Summarising the different challenges....................................................86
Policy implications:plead for a mix of financial instruments...............88
Demand side actions..................................................................................90
Investor readiness...................................................................................90
Mutual understanding between bankers and SMEs...............................91
Integrated finance approach...................................................................92
Concluding remarks on the demand side...............................................94
Supply side actions....................................................................................94
Credits....................................................................................................94
Guarantees as a tool to promote venture capital....................................97
Venture capital actions:money as an incentive...................................100
Business Angel Networks:tool par excellence for regional development105
Involvement of large companies..........................................................106
Recommendations linked to local implementation..................................108
References...................................................................................................109
Access to finance.....................................................................................115
Provision of good quality accommodation..............................................118
Micro business support............................................................................120
Some guiding points on maximising leverage.........................................1229
Introduction.............................................................................................126
Trends towards leveraging private finance for brownfield redevelopment
in Europe and the United States...............................................................127
Programmatic changes in Europe........................................................127
The need for PPP and leveraging private investment..........................129
Programmatic focus to attract private investment in the United States130
Project categories for public and private sector leverage........................130
A-Type:private-driven projects...........................................................132
B-Type:public-private partnerships....................................................133
C-Type:public-driven projects............................................................139
Leveraging private finance for brownfield redevelopment in the
United States–instruments at federal,state and local level.....................141
Federal level:EPA brownfield programmes–tools and incentives
for leverage of private investment........................................................142
State level:incentives for private finance in voluntary
cleanup programmes............................................................................144
Local level:leveraging private finance in US cities and counties.......149
Conclusions.............................................................................................153
References...................................................................................................156
The North American experience..............................................................161
Federal spending and incentive programmes.......................................162
Financial tools......................................................................................163
Governance models..............................................................................165
Targeted tax incentives........................................................................168
The European experience........................................................................170
Urban sustainability.............................................................................170
Brownfield strategies...........................................................................172
Governance models..............................................................................174
UK urban regeneration initiatives........................................................175
Best practices...........................................................................................176
Conclusion...............................................................................................177
References...................................................................................................178
Introduction:cities and regions and the territorial investment market....182
The international variations in the local economic development
tool-box....................................................................................................185
Financial tools and frameworks–Major variations................................187
Are all economic developers doing the same things?..............................194
Transferability of city and regional finance instruments.........................197
Conclusions.............................................................................................201
Leveraging private finance into community building..............................206
Leveraging private finance into SME support.........................................210
Leveraging private finance into brownfield regeneration........................213
The potential for transfer.........................................................................217
Key messages for cities and regions seeking to increase private
financial leverage.....................................................................................219
The public sector..................................................................................220
The private sector.................................................................................221