Local Economic Development Strategies and Challenges: A Comparative Empirical Evidence from Ghana’s Local Governance System

Abstract

Local level economic development has eluded Ghana since independence. This was because most policies were centralized. As a result, focus was shifted to local economic development. This article comparatively examined the local economic development strategies implemented in three of Ghana’s Metropolitan, Municipal and District Assemblies. Using the mixed method and multiple case study approaches of research, the study sampled a total of 533 respondents across the three Metropolitan, Municipal and District Assemblies and analyzed data using the Statistical Package for the Social Sciences. The study gleaned that the Metropolitan, Municipal and District Assemblies implemented similar local economic development strategies which could be categorized into contemporary local economic development and traditional local economic development approaches. Challenges such as inadequate finance, land tenure system, lack of modern equipment among others were identified. The provision of a central pool for financing local economic development, harmonization of locality development policies, de-politicization of local economic development policies, the adoption of change management strategies in Ghana’s local governance system, effective land tenure system are recommended for the success of local economic development in Ghana.

Sustainable Local Economic Development in Tanzania: Exploring Economic Challenges in Growing the Economy

“…In addition, Akpeko (2018) found that bureaucracy in starting a business is a common problem in most of LGAs in Ghana. Similarly, Khumalo (2015) concluded that the governance system in South Africa is rather complex as various layers of the government intervene in private sector development at the local level.…”

“…Existing literature such as Akpeko (2018) has addressed challenges on the supply side only (i.e. the government's side) and very few studies in Africa such as Akudugu and Laube (2013) have identified LED challenges faced by the demand side (i.e.…”

“…rural-urban fringe). A similar approach has also been used by several researchers such as Meyer (2014) and Akpeko (2018).…”

Determining the Nexus between National Policies and Local Practices in the Promotion of Businesses for Local Economic Development in Tanzania

“…Local authorities have a role in promoting economic growth through local policies and practices that encourage and attract investments in the localities; they have to play an active role in guiding local resources to achieve local economic development (LED) objectives. Local authorities are considered catalysts for improved business promotion services in an environment of improved economic governance and investment in infrastructure (Agbevade, 2018;Akudugu, 2018;Hilhorst et al, 2008;Koma, 2012;Meyer, 2014).…”

“…Several challenges are also mentioned in reference to LED. These include limited legislative mandates and frequent changes in policies, inconsistency in policies, less positively impacting economic policies, low commitment to the empowerment of the LGA's, limited reach of LED pilot projects, low understanding of LED approaches and significance, limited efforts and appreciation of publicprivate partnerships benefits, low available resources and skills, dependence on national or external catalyst to adopt LED, short-term perspectives on LED, limited stakeholder involvement that is not mainstreamed into LGAs practices, absence of champions on LED, and so on (Sarpong et al, 2020;Agbevade, 2018;Akudugu, 2018;Meyer, 2014;UCLG, 2016).…”