Local Economic Recovery (LER) is a local-level approach to promote and implement post-crisis recovery of affected employment and

economic activities, and to reintegrate the socio-economically affected populations. It applies participatory territorial planning methodologies and instruments, and builds on local assets and opportunities.

The planning process is conducted at different administrative, geographic and sectorial levels, and involving the participation of diverse stakeholders. It produces context-specific solutions to restore and strengthen the territorial capital that has been deteriorated and weakened due to the crisis and  to remove the obstacles that impede the normal conduction of productive and trade activities. This objective is pursued by optimizing the use of the available local resources, which in turn maximizes the employment-creation potential of relief and reconstruction investments.

The expected outputs of the planning exercise are comprehensive territorial strategies and local or sectoral plans for the revival of local economies. Such strategies and plans may entail a wide range of interventions, including vocational training, reconstruction of key infrastructure, and support to businesses and value chains through training, microfinance and other services.

Primary targets of LER interventions are those who lost or got damaged their livelihoods and assets as a consequence of the crisis, including IDPs, refugees and returnees, and ex-combatants.

Being implemented in parallel with humanitarian operations and being inspired by development principles, LER bridges the gap between these two phases. In fact, it reduces dependence on external assistance, strengthens self-reliance and paves the way towards sustainable development.

Differently from LED, LER is undertaken in parallel with humanitarian operations, covers a shorter period, prioritizes specific economic sectors (including those that are strategic to relief), and targets specific groups. Typically, as the crisis abates, LER programmes evolve into longer-term Local Economic Development (LED) programmes. Such LED programmes contribute to reducing the underlying causes of a crisis, activating self-sustainable economic development processes in areas affected by a crisis, and making them less vulnerable with respect to a possible relapse into further crisis situations.