This research investigates the differences in local economic development in developing and developed countries by using a model by Pennink (2014), based on local economic development (LED) in developing countries and applies it to a developing country. The findings are that multinational enterprises and their activities do not seem to play a role in LED. Universities have a supporting role and the regional and local level overlap. The supranational power and the role of social capital are added to the model. The supranational power appears to a supportive role in LED, like other institutions on all levels. Social capital plays a critical role as entrepreneurs and their relations need to take initiative.