Introduction

Everything has been thought of before, the difficulty is to think of it again.

Johann Wolfgang von Goethe

The time of one-sided analyses and actions is at an end. The economic, social and environmental dimensions of development - irrespective of the unit or level of analysis - are increasingly interdependent, with continuous synergies, interrelations and connections as shown by scholars and prac­titioners from different disciplines.

In the global poly-centric world, where economic and social dimensions of development are simultaneously affected by growth/recession processes, together with social turmoil and financial, food and energy crises, it is crucial that research can draw on an integrated theory of development to facilitate meaningful analyses and policy responses.

Nonetheless, intense searches for innovative thinking and policy solutions are fervent in times of crisis (Hay, 1999). As the quote by Goethe in epigraph recognizes, having academic and policy debates produced a variety of per­spectives for development is only the start; the real difficulty is to think it through in a different way.

In this respect, the human development (HD) paradigm - introduced by United Nations Development Programme (UNDP) (1990) and firmly rooted in Amartya Sen's capability approach (CA) - can represent a fundamental starting point for rethinking an old idea² in an innovative way. HD does this by combining various dimensions of well-being on the basis of the basic needs approach and the following pillars: equity, sustainability, par- ticipation/empowerment and productivity (UNDP, 1995). Indeed, being a people-centred approach derived from an agency-based and opportunity-oriented theory, it contributes to the conceptualization of the multidimensional­ity of development: People's real freedoms in daily life are central to the development process.³

However, such a focus does not necessarily lead to an entirely individualistic point of view. As Sen (2002, p. 79) observes, ‘[h]uman beings live and interact in societies, and are, in fact, societal creatures.' Moreover, according to Ibrahim (2006, p. 397), ‘the use and exercise of human capa­bilities usually takes place in collective settings.' Social structures (such as groups, values, institutions, arrangements) are thus a crucial element of the CA, shaping preferences, entitlements and political power, and con­sequently agency and choices (Sen, 1993; Dreze and Sen, 2002; Stewart, 2005; Deneulin, 2006; Alkire, 2007; Comim et al., 2008).⁴ Prior to Sen, Michael Cole, in his foreword to Urie Bronfenbrenner's (1979) The Ecology of Human Development,⁵ stated that ‘the explanations for what we do [...

In other words, the territorial society - in which individuals live - has fundamental importance for expanding or reducing economic and social capabilities. This point has been underlined in several European Union pol­icy reforms (e.g. the Agenda for Change, the European Development Fund) and in many global, national and sub-national Human Development Reports (HDRs), with primary attention being devoted to the territorial specificity and complexity of HD processes. Annex A, at the end of this book, provides a detailed but non-exhaustive list of various HDRs with reference to their focus on local development processes, in order to emphasize their centrality in the global debate on development.

Nonetheless, despite the recognition that the objective of development itself - ‘to create an enabling environment for people to enjoy long, healthy and creative lives' (UNDP, 1990, p. 9) - depends on localized social norms, institutions and structures of living together (Ricoeur, 1992; Deneulin, 2006; Stewart, 2013), the complexity of territorial HD processes has not been fully captured within the existing debates.⁶ Severine Deneulin (2008, p. 116), following the French philosopher Paul Ricoeur (1992), argues:

If the capability approach is to say something about the success of development policies in bringing about certain outcomes, the informa­tional basis for assessing development cannot only remain at the level of its individual outcomes but has also to include the (collective) pro­cesses that are responsible for these outcomes [... ] Structures of living together, by the very fact of transcending individual human actions, need to be identified, because they are properties of a collectivity rather than a property of individuals, and these collective capabilities provide the conditions for individual lives to flourish.

As Stewart (2013) emphasizes, ‘the autonomous individual is somewhat of a myth' (p.

Therefore, a fundamental question emerges: How is it possible to combine the focus on people's capabilities and attention to territorial development dynamics within an integrated analytical and policy perspective? Which "partner theory” can complement the CA and HD paradigm to analyse territorial enabling processes for human flourishing?

The answer suggested in this book lies in the academic and policy literature on "local”, "regional” and "territorial” development, which is concerned with increasing awareness, in different disciplinary fields, of the importance of the territory as an active protagonist of development in contemporary economies (Rullani, 2014) - both the advanced and the emerging ones. The meso-economic level is characterized by close relation­ships between "economy-institutions-society” (Antonelli et al., 1988) and is where polity-politics-policy relations are most evident.

Today, the importance of dealing with economic competitiveness, social inclusion, human rights and environmental protection - among other objectives - at the territorial level seems to be undeniable (Pike et al., 2007; Becattini et al., 2009). This is because it constitutes the socio- institutional setting and arena for collective action that directly shapes agents' (individuals, firms, social groups) daily life and well-being (Ostrom, 1990 and 2000). This fundamental point was stressed in 1980 by the Inter­national Foundation for Development Alternatives: ‘Development is lived by people where they are, where they live, learn, work, love, play, - and die. The primary community, whether geographical or organizational, is the immediate space open to most people' (IFDA, 1980, p. 11).

It is important to note that, throughout the book, reference is made to the "local level” and meso-economic units as territories where human beings live, economic activities are conducted and most of daily social relations take place (Sforzi, 2010).

The idea that the political economy of sub-national entities is central in the intellectual agenda of the social sciences (Agnew, 2000; Pike et al., 2011) is further supported by the recognition that most development out­comes depend on the performances of local development systems (LDSs) at territorial level, which are typically characterized by multilevel and multi­stakeholder governance processes. For instance, the provision of social services (education, health, housing, transport, personal services to chil­dren and the elderly, water and sanitation, etc.), public goods, support for small enterprises, enhancements of knowledge creation and diffusion, pro­motion of inclusive participation and protection of environmental resources all require greater attention to local processes and dynamics. In addition, the local, national and global arenas appear to be more interconnected than ever before (Wallerstein, 2000). This has critical implications for the governance of the environment, peace and security, health, employment, human rights, and democratization, among other critical issues.

The functional integration between the different streams of literature and policy perspectives on the CA, on the one hand, and on local develop­ment, on the other, does not emerge from a vacuum.⁷ Firstly, it builds on a common critique of utilitarian economics and its highly theoretical, if not ideological, generalizations, which are at odds with understanding people's real freedoms, as well as territorial socio-cultural and institutional variety.

Thus, the objective of this book is to blend the people-centred and opportunity-oriented perspective of human development with the place­based and context-sensitive approach of local development. The systematic integrated treatment proposed in this book contributes to the construction of a comprehensive development perspective⁸ by embracing the complexity of territorial processes for Sustainable Human Development (SHD).

Linking the CA's focus on people with a meso-economic perspective allows placing multidimensionality, diversity, freedom and agency at the heart of dynamic processes of territorial transformation and human flourishing. Central to this book is the following recognition: the interaction among local and extra-local stakeholders (by combining resources, institutions and capacities) feeds and shapes the creation of enabling and disabling fac­tors affecting the evolution of development systems and the expansion of individual and collective capabilities.

In addition, the HD paradigm can provide a different vision of devel­opment for evolutionary and institutional theories of local development. In fact, this vision changes the coordinates of thinking from per capita GDP (Gross Domestic Product) to local well-being (Becattini, 2004; Bianchi, 2009) and facilitates a holistic, progressive and sustainable normative view of local development (Pike et al., 2007) that fosters productivity, participation, equity and sustainability.

It is important to recognize that such a perspective does not reduce or constrain, in any way, the role of the state and international organiza­tions in policymaking. Despite they are not discussed in details in this book, they remain as the main coordinators and regulators for the pro­tection of fundamental rights, the enhancement of global public goods and the equal provision of trans-local services. In other words, the people- centred and place-based perspective calls for strengthening and tailoring the role of national and supranational organizations to each and every socio-institutional setting.

Advancing a people-centred and place-based perspective on SHD at the local level is not simply an intellectual exercise of theoretical or conceptual innovation drawing on different streams of literature.⁹ In fact, similar arguments have emerged within the global development debate regarding action and intervention against poverty, inequality, climate change and unemployment.¹⁰ For instance, consider the importance of local actions with regards to the Millennium Development Goals (MDGs) and the Sustainable Development Goals (SDGs) (UNDP, 2014); the commitment to Agenda 21 that emerged from the Rio and Rio+20 Conferences on Sustainable Development; the Paris Declaration, the Accra Agenda for Action, and the High-Level Forums on Aid Effectiveness and, more recently, on Development Effectiveness (Kindornay, 2011)¹¹; the role of microfi­nance institutions and social businesses as promoted by the Nobel Peace Prize Muhammad Yunus. Moreover, several international organizations have long prioritized the promotion of local development initiatives around the world, increasingly with attention to HD processes and outcomes. Among others are the Organisation for Economic Co-operation and Development (OECD) with its Directorate for Public Governance and Territorial Devel­opment; United Nations Industrial Development Organization (UNIDO) with its poverty reduction initiatives through productive activities; the International Labour Organization (ILO) with the decent work agenda; the European Union (EU) with the Territorial Cohesion policy and the Agenda for Change; and the Joint Migration for Development Initiative¹² with its support to local stakeholders to effectively harness the potential of migration for development.

Taken together, changing perceptions of competitiveness, growth, poverty reduction and development have made local governments more active (Scott, 2006, Noferini, 2010; DeLOG, 2011). Furthermore, the importance of multi-stakeholder "conscious governance” (Dei Ottati, 2005) through the active and leading mobilization of local actors based on transparency and mutual responsibility have consolidated the importance of place-based strategies and plans of action to strengthen ownership, alignment and harmonization.

Today, the global debate on development has reached a crucial turn­ing point. Discussions with the United Nations (UN) to develop a set of post-2015 Sustainable Development Goals, as well as on the reform of the EU Cohesion Policy, take place within scenarios of global instability, long-standing recessions, extraordinary growth processes rising inequality and social unrest (Chang, 2003a; Chang and Grabel, 2004; Deshpande, 2007). In addition, empirical evidence is mixed (Rodrik, 1997; Goldin and Mariathasan, 2014) regarding whether globalization has "flattened” the world (as argued by Thomas L. Friedman, 2005), or has exacer­bated the concentration of economic activity and wealth (McCann, 2008; Rodriguez-Pose and Crescenzi, 2008), and politics and power (Harvey, 2005).

It is not the duty of a single international organization or country to select the global development paradigm and objectives for the next decades. This book intends to provide some critical insights for purposes of analytical thinking and policymaking (including design, monitoring and evaluation) within a broader perspective of people-centred and place-based SHD.

It should also be emphasized that

older conceptions of the broad structure of world economic geography as comprising separate blocs (First, Second and Third Worlds), each with its own developmental dynamic, appear to be giving way to another vision. This alternative perspective seeks to build a common theoretical language about the development of regions and countries in all parts of the world.

(Scott and Storper, 2003, p. 582)

For this reason, this book does not differentiate ex ante between development processes in emerging economies or in developed countries, but seeks to take into account the specificity of each socio-institutional and cultural context, their trans-local interconnections and the articulation of micro, meso, macro and international processes. This vision clearly conflicts with the orthodox view that underdeveloped states can develop only ‘by copying those who already have, that is, by adopting the universal culture of the modern world, with the assistance of those who are more advanced' (Wallerstein, 2000, p. 283).

This book advances a new development perspective neither as a universal panacea nor as "Holy Grail” within ongoing debates. Nor is it supposed to be all inclusive, given that it is admittedly broad in scope. In particular, it does not provide a list of policy prescriptions - regarding, for example, decentral­ization, participation, industrial policies and social inclusion - intended to ensure SHD at the local level.

Finally, we recognize that any conceptual approach is open ended and evolutionary in itself. Therefore, this book is a preliminary attempt to understand pathways of local change from a SHD perspective, in order to stimulate both academic and policy debates, and to build on unexplored synergies between local development and the CA in the analysis and promo­tion of harmonious development processes for human flourishing (Ceriani Sebregondi, 1953a).

The book is structured as follows.

The conceptual integration of local development approaches and the HD paradigm is explored in Chapter 1, which focuses on their synergies and the rationales supporting their integration. The core pillars and main struc­tural elements of the new perspective of SHD at the local level are presented, including its scope and focus, that is, the territorial "enabling factors” affect­ing local evolutionary trajectories, and their impact on firms' enhancement and people's well-being.

Chapter 2 presents an interpretative framework - dubbed the Sustainable Territorial Evolution for Human Development (STEHD) framework - designed to explore the territorial dynamics of SHD processes. It aims to embrace the complexity of the aforementioned approaches by disentangling how the different elements (stakeholders' mobilization, local resources, barriers, social institutions, systemic capacities, political spaces of deliberation and political willingness) shape the evolution of local societies and human flourishing. Here, the interdependency between the inter-temporal expansion or reduction of individual capabilities, agency and empowerment, on the one hand, and territorial socio-institutional and economic development processes, on the other, is central.

Building on the recognition that multilevel governance (MLG) character­ize modern territorial societies (Noferini, 2010), Chapter 3 analyses how the articulation of resources, institutions and capacities derived from different levels (vertical) and sector (horizontal) shape the territorial enabling factors governing community well-being in economic and social terms. Assessing how governance levels and sectors are connected, integrated and harmo­nized in the provision of local and global public goods is essential to generate a comprehensive understanding of the evolutionary dynamics of SHD at the local level.

To illustrate how the STEHD framework can be made operational, a case study of an innovative place-based approach to international development cooperation, not free of potential challenges and difficulties, is presented in Chapter 4: the UNDP ART Global Initiative. In particular, the chapter explores how, and under which conditions, tailored development coop­eration initiatives can act as a catalyst and facilitators of multilevel SHD processes at the local level.

Similarly, Local Economic Development Agencies (LEDAs), regarded as rel­evant organizational and institutional tools for territorial economic develop­ment, are analysed in Chapter 5 using the STEHD framework. In particular, the extent to which these agencies act as local "meta-organizers" and “ani­mators” of development processes is discussed, together with their capacity to tailor appropriate functions and organizational arrangements and evolve along with territorial societies.

These two case studies have been selected on the basis of cross-country rel­evance, as well as their efforts to promote SHD and the multilevel character of their actions. In addition, both cases have been extensively studied in the field by the authors of this book.

Finally, Chapter 6 explores the processes that widen or restrict the scope of policymakers and territorial stakeholders to pursue SHD. Without intend­ing to provide an exhaustive discussion of policy implications at different levels, standardized place- and time-neutral policy approaches are chal­lenged, focusing on the relevance of public interaction and deliberation, institution building and collective learning to remove binding constraints and mobilize local potential.

The concluding chapter provides some final remarks, summarizing the core conceptualization of a SHD perspective at the local level. Its advantages are discussed along with the challenges for future research (particularly for encouraging the closer integration of scholars and practitioners).

Each of the six core chapters is supplemented with an appendix, pre­senting some possible methodologies and analytical applications, which researchers and practitioners can use to investigate territorial dynamics and processes from a SHD perspective.

The hope is that the arguments in this book will contribute to the debate among scholars and practitioners alike by opening up new lines of thinking and policy approaches for territorial development and human flourishing.