Rural Governance, Forestry, and the Promotion of Local Knowledge: The Case of the German Rural Development Program ‘Active Regions’

This article investigates the role of local knowledge in the policy approach of neo-endogenous rural development, which may be held by local and regional actors such as municipal and county level politicians, local and regional level administration, entrepreneurs as well as local third sector representatives. The main question addressed is whether local knowledge under this approach is merely mobilised or if rural development processes are even based on such knowledge, placing it at the centre of such policy. The relevance of this approach to forestry is also explored. The types of forest owners for which the neo-endogenous rural development approach is appropriate and the types that may have difficulties in coping with this cross-sectoral and area-based approach are especially examined. Using a case study design on the German Active Regions funding program it is shown that the neo-endogenous approach is most relevant to large private forest owners and small-scale corporate enterprises, but also has potential for small- and medium-sized private owners. Concerning the role of knowledge held by local and regional actors, the approach is shown to largely build on the use of local expertise, and hence policy acceptance increases. However, scientific knowledge as well as politics are found to play a major role in the use, production and interpretation of local knowledge.     

Why Do Localities Provide Economic Development Incentives? Geographic Competition,Political Constituencies,and Government Capacity

U.S. states and localities often engage in economic development policies using incentives and abatements for specific firms or industries. Yet, there is very little empirical evidence suggesting that such policies are successful. Why, then, do governments engage in these policies? In order to answer this question, we employ a model that considers not only geographic and economic factors, but also, in a novel application, local political conditions. A unique survey of U.S. county governments forms the basis for our empirical assessment of both traditional economic development policies and new‐wave policies. Using probit, Poisson, negative binomial, and spatial econometric models, we find evidence that the use of incentives is inversely related to local economic conditions. Furthermore, we find Republican counties are more apt to use incentives, though counties dominated by one political party are less likely to use them.