INDUCING LOCAL GROWTH - 2 INTERMEDIATE-SIZED CITIES IN THE STATE OF PARANA, BRAZIL

The mayors of most Third World cities and towns view economic development as an import. Typically, they try to attract outside industry from large cities, primarily by giving away infrastructure and land in the hope of attracting firms. However, this strategy is rarely successful. This paper explores why by investigating the economic development experience of two medium-sized municipalities in Brazil that successfully employed another approach public/private partnerships that gave priority to the start and expansion of local firms Parallels with local economic development in advanced countries are explored. The paper concludes with recommendations about how to induce local growth.