The Institutional Imperatives of Local Economic Governance

Abstract

In Jamaica, a “new” local governance framework comprises a federated system of development committees (community development committees [CDCs], development area committees [DACs], and parish development committees [PDCs]) purportedly working in partnership with local authorities. Local governance is thus premised on the idea that utilization of local skills, knowledge, assets, and initiatives will lead to economic transformation. Focus has also shifted to micro, small and medium enterprises (MSMEs), given their local embeddedness and potential to foster local economic growth. This chapter investigates the extent to which local economic development (LED) model implementation is supported by appropriate governance structures. It argues that implementation of an LED model represents a decisive shift from local governance to local economic governance, which currently lacks a cohesive policy framework. The consequent effect is nothing more than atomized organizational actions that engender competition among localities and communities rather than a clear growth strategy at the local level.