ABSTRACT

Citizen participation in community development, including economic development, is vital for a viable democratic society to flourish. As more U.S. cities shift some or all of their economic development efforts from the city government to nonprofit economic development organizations (NEDOs) – which use resources from both the public and business sector to promote local economic growth – it is important to examine what implications this shift has on citizen participation. Some researchers highlight the advantages of NEDOs, portraying them as high-performing organizations that facilitate cooperation between city government and the local business community. But are there any disadvantages to promoting development via NEDOs in terms of citizen participation? Using survey data from nearly 500 NEDOs, this study finds that the local business community and city government are heavily involved in NEDOs, including founding them and contributing board members, money, and policy advice. However, in most NEDOs, citizens who are not part of local business organizations do not participate directly, but they participate indirectly through their public officials. Community development practitioners should work towards increasing direct citizen participation in NEDOs. especially when NEDOs use significant public resources.