U.S. Communities Social Services and Economic Development Policies: Prioritizing Business’ Versus Citizens’ Interests?

• In Event: 189 - Section on Community and Urban Sociology Refereed Roundtable Session and Business Meeting
  In Refereed Roundtable 60min: Table 10. Urban Planning and Governance

Abstract

As communities confront challenging fiscal circumstances under neoliberal development, how are local governments prioritizing the interests of business vis-à-vis citizens? Past research has often observed that local governments are likely to pursue developmental policies favoring business while cutting back on social service provision, in effect creating a zero-sum relationship where local citizens lose out. Yet some scholars are beginning to question this view, arguing that as federal government has off-loaded and decentralized responsibilities, local communities have had to take up the slack in both economic development and social service provision. These scholars suggest a potential positive-sum relationship, where local governments increasingly respond to both business and citizens or where efforts devoted to business do not undermine social policy. In this study, we address the expanding role of local governments in a neoliberal era. Using data from a national study of county governments, we find some evidence of the zero-sum hypothesis but the positive-sum hypothesis receives more affirmation, where counties appear to sustain local social safety-nets even as they pursue business-friendly developmental policies. Our study suggests the importance of analyzing the role of community-level governments in national redistribution.

Authors

• Lazarus Adua, University of Northern Iowa

• Linda Lobao, The Ohio State University