Significance of Good Governance for Local Economic Development: A Practical Assessment in Lideta Sub-City (Addis Ababa City Administration)

Abstract

This study offers a critical review of significance of good governance on LED. It examines the relationship between good governance and LED, particularly by emphasizing on the principles of good governance and their impact on LED. By doing so, principles like participation, transparency, accountability and rule of law and their relation to and significance on LED is deeply analyzed and interpreted. The study disclosed that where and when these principles are practiced well, accepted and legitimized by the local community, then LED activities are to be vibrant. On the other hand, where and when these principles are not applied properly the reverse is true. This has been clearly identified in this study. The study has shown that there is a direct relationship between good governance and local economic development. It has come up with the conclusion that when and where principles of good governance are at work or applied; the local economic development activities are vibrant and acceptable by the local community. This in turn indicates LED is unthinkable without ensuring local good governance. Given these scenario, the study argues for an urgent need for a reversal of the trend to see a fast and sustainable local economic development in Lideta Sub-City.