Virginia is the gateway to the South. It is the lover’s state. It’s home to the beautiful Blue Ridge Mountains and the Shenandoah Valley; and is rich in history. One thing not commonly known about Virginia is that it was the inspiration upon which the local economic development program of the Czech Republic was formed.

Have you ever wondered about the methodologies in which a country’s institutional and economic framework is built?  Through various government agencies, such as the Millennium Challenge Corporation and USAID, the U. S. assists other countries in achieving their social, economic, and governmental goals.

I recently attended an event titled, “How Cities Can Attract Private Investment” and learned about a case study from the Czech Republic.  Panelist Michael Kunz, Senior Governance Advisor at ICMA International, discussed his experience in leading a local economic development program in the Czech Republic that was based on the U.S. state of Virginia’s Development Certification Program.

In 1993, Kunz seized an opportunity to support the local economic development of a newly forming nation.  At this point in time, the Czech Republic had broken free from communist rule and was in an attractive position for investment. However, the country was in a fragile state, transitioning from a central economy to market economy and lacked understanding of how to be positioned to receive foreign direct investment (FDI).

With funding from the Mellon Institute and support from George Mason University, Kunz and his team worked with the newly formed nation to institutionalize management systems for economic development activities at the local and national level.

Inspired by the State of Virginia’s Development Certification Program and with the support of the Minister of Economy, Kunz implemented a program to organize local economic development that would facilitate job creation and improve local services.

Kunz’s case study gives practitioners a successful model in working across the spectrum of public institutions and the private sector to achieve locally identified economic goals and attract FDI to new markets.