Local Government Structure and the Co-ordination of Economic Development Policy

This paper explores how local government structure affects policy co-ordination. It compares the delivery of economic development services in two Ontario cities. In London, a specialized agency is the lead, but lacks full functional control, while in Hamilton policy control is consolidated in a single municipal department. The findings support the hypothesis of those who argue in favour of general-purpose governments, as the municipal hierarchy in Hamilton was instrumental in achieving policy co-ordination. Proponents of specialization argue that it limits the need for co-ordination between governments but, as the London case demonstrates, this logic breaks down when there are too many players with too few responsibilities.