Between state, markets and households: A neoinstitutional analysis of local organizations and institutions

Abstract

The current and foreseeable trend toward a diminished role of the state in most economic activities, including rural development activities, offers new opportunities for local organizations and institutions (LOIs). At the same time, many of the problems and shortcomings to which states and their activities have been vulnerable are also potentially applicable to LOIs. To be successful in themselves as well as in fostering rural economic development, rural LOIs and their activities must be carefully designed and appropriately integrated with markets, other LOIs and the state. This paper reviews the relevant literature on conditions for success and then goes on to derive from this review (including some relevant experience) some suggestions for policy and practice.