After the 1989 Velvet Revolution in Czechoslovakia and break away from a centralized economic system, the nation was uncompetitive, in Europe and the global economy, despite it's highly skilled labor force and location in the middle of Europe.  The country's challenge of re-integrating into the regional and global economy was made even greater in 1993, following dissolution into the Czech  and Slovak Republics.  In the Czech Republic, local and national government leaders and the private sector piloted the Czech Economic Development Certification Program, which sought to solve a question that many countries face when they transition from a centrally-planned economy to a free market system: how do we attract inward investment to support local development?   How public and private sectors approached this question in the Czech Republic and other countries that underwent transition in the 1990s can provide valuable lessons learned and sub-national approaches for the new emerging economies, all of which represent markets for US goods and services in a global marketplace.

A recent case study I published with the Center for Emerging Market Economies (CEME) at Tufts University looks at one successful approach to how my colleagues and I worked with national and local governments and the private sector to implement a certification program that empowered Czech cities with the skills and brand to attract foreign investment. The experience shows that collaborating with local communities to both attract foreign investment and achieve their own internal development goals is a successful method for promoting development in transitioning economies.

As Country Manager for the Czech Economic Development Certification Program, my colleagues and I sought to overcome the political and resource barriers to bring investment to the country. With funding from the Mellon Foundation and support from George Mason University, and best practices adapted from around the world, most notably the Commonwealth of Virginia, we conceived an economic development program. This program - deemed an “entrepreneur strategy” – allowed Czech leaders and managers to institutionalize management systems for economic development activities at the local and national levels throughout the Czech Republic. This strategy, instituted through a development certification program, promoted decentralization and enabled local leaders to successfully certify and develop industrial parks in nine Czech Republic towns, establishing a cadre of 40 local and national economic development professionals.

For more information, please follow this link to the case study on CEME's website. I look  forward to hearing of other's experiences in promoting sustainable economic development in transitional economies.