ABSTRACT
It is self-evident that the principles of sustainable development affect urban and rural areas. Both can contribute to sustainable economic, social and physical development, at global and local levels alike. Cities are important because they provide much of the capital for the expansion of national and regional economies, the production and consumption of goods and services, and the institutional structures for governance, trade and community development. Rural areas matter because it is here that ecosystems are often better protected, cultural traditions are longer-standing and influential. They produce food and resources, absorb waste and provide leisure and recreational opportunities. In both instances, however, institutions are key to the development of such areas – and are the focus of this chapter. For it is often argued that ineffective institutions explain why both urban and rural development efforts too often under-perform and fail to benefit adequately those who were initially targeted. Yet research in the rural sector of the so-called Developing World has shown that strong effective institutions can make a difference in promoting sustainability (see Brinkerhoff and Goldsmith 1990). This chapter now applies these arguments in an urban context. It suggests that the importance of institutional effectiveness is as salient here as elsewhere.
