ABSTRACT
This chapter focuses on the role of institutions in the government and governance of local and regional development. It identifies the rising importance of institutions in local and regional development in conceptual, theoretical, analytical and policy terms. Recent research has emphasised the important role of formal and informal institutions in framing the conditions for local and regional development. The chapter focuses on the role of the state as an integral and critical actor in local and regional development. It identifies a global trend towards multi-actor and multi-level government and governance, though this process has uneven forms and impacts. The chapter further draws attention to the growing disquiet with democratic institutions and politics. In an increasing number of countries there is a sense that democratic systems are working unsatisfactorily, leading to the search for new mechanisms of democratic (re-)engagement. Particular attention has been paid to the arguments about the value of decentralisation in local and regional development.
