performance outcomes , there is growing pressure for leaders at all levels , including government to build social capital and trust within governance .
Local governments in Australia are close enough to the everyday lives of the community and business to both understand the unique challenges they face and have considerable impact on their daily lives through their various roles , including infrastructure , health , and community services , and as an employer .
Indeed , local governments play a crucial role in building trust with their employees and with other members within their constituency . The theory of social capital suggests that different types of social capital – bonding , bridging , and linking , are important for building trust to support local growth and regional development .
Given that over the years there has been a sharp decline in trust in government ( OECD , 2013 ), it becomes imperative for local governments to build social capital to deliver positive outcomes and facilitate close cooperation between public and private sectors as well as with communities ( Lewis , 2010 ). Similarly , local government needs to start considering other measures to ensure that they are delivering the right outcomes for their citizens . Reputation has often been ignored by the public sector , seen as the domain of private industry and global companies . However , trust and reputation go hand-in-hand and economic development plays a critical role in a number of the drivers of reputation , including business strategy , leadership , financial performance and the products and services offered .
Local Governments that have installed Economic Development functionality within the organisation need to consider its interdepartmental positioning in order to achieve effectiveness and increase opportunities to develop tangible and sustainable outcomes that would ultimately benefit the broader community .
Pugalis & Tan ( 2017 , p 6 ) state that “ Where the economic function is located within a particular council ’ s organisational structure has little impact on the function ’ s effectiveness ”, however , Pugalis & Tan further state that “ It is for each council to determine , based on analysis of opportunities , barriers and threats ” as to where economic functionality should be located .
And further , that “ Each council is , therefore , encouraged to secure their niche role within relevant local and regional economic ecosystems . The role of local government will inevitably differ from place to place which will add further layers of complexity to relationships with state and federal governments . This poses a distinct challenge to higher tiers of government in terms of how they interface with specific councils ” ( Pugalis & Tan , 2017 , p 6 ).
From an experience based perspective , with the establishment of local government economic development functionality , internal departments often see the need ( opportunity ) to divest a portion of their current projects / operational activities to this new area by labelling them as “ economic development related ”. This practice has the capacity to consume and dilute the economic development resources available within the newly established department , reducing the opportunity to deliver on other strategically important projects .
What is critical is that local government prioritise the needs of the local economy with the establishment of a focused economic development internal department that can influence decisions and take advantage of opportunities with relative ease within the governance structure . Whilst it is important for the economic development department to be involved and consulted on key planning , strategic and investment projects across all local government areas , their role in these established departments should be in the form of a consultant capacity only .
The part that the resident population plays in relation to economic functionality in seeking to increase quality of life is through the payment of rates , purchasing of properties , supporting local schools , community events , sporting clubs and Buy local programs , jobs / employment , all help build a sustainable and vibrant local economy .
Over the years , resident interest in the business and investment decisions made by local governments has increased and in adopting the “ social capital ” aspect , it is important to develop clear , concise and inclusive consultation and communication plans in order to inform and advise residents of the ongoing changes and benefits generated by economic development activities . In doing so , greater trust and confidence is built within the relationship , increasing the opportunity for positive economic outcomes .
REFERENCES
• Feldman , Hadjimichael , Lanahan Kemeny ( 2015 ) Environment and Planning C : Government and Policy , University of North CarolinaChapel Hill , NC , USA
• Fitzgerald , J ., & N . G . Leigh . ( 2002 ). Economic revitalization : Cases and strategies for city and suburb . Sage Publications , Incorporated .
• Lewis , J . M . ( 2010 ). Connecting and Cooperating : Social Capital and Public Policy . Sydney : University of NSW Press .
• Pierce , J . C ., Lovrich Jr ., N . P ., & Moon , C . D . ( 2002 ). Social capital and government performance : An analysis of 20 American cities . Public Performance & Management Review , 25 ( 4 ), 381-397 .
• Pugalis , L ., Tan , SF ., 2017 , The Role of Local Government in Local and Regional Economic Development , University of Technology Sydney . ISBN 978-0-646-97763-8 Published September 2017 Document version 1.0
• Suseno , Y ., & Pinnington , A . H . ( 2018 ). Building social capital and human capital for internationalization : The role of network ties and knowledge resources . Asia Pacific Journal of Management , 35 ( 4 ), 1081-1106 .
ABOUT THE AUTHORS
MICHAEL FAULKNER Specialising in Economic Development and International Economic Development including building Government to Government strategic relationships within a global environment , Michael has over
25 years within the Corporate Banking , financial services and Local Government sectors in Australia and the South East Asian region . The areas of Investment attraction , economic development and international negotiation have been a significant part of Michaels career spanning in excess of 35 years . He has led a number of successful delegations to China , South East Asia , sourcing , identifying and activating a number of projects between Australian owned enterprises , international operators and Government agencies . Michael holds a Master of International Business and has lectured in International Negotiation at Edith Cowan University .
VICTORIA GREEN Victoria Green has more than 15 years of corporate affairs experience spanning across a number of industries . During an eight-year stint in the United Kingdom , Victoria worked on a number of complex and controversial projects for both the public and private sector , including Ministry of Justice and Heathrow Airport . Returning to Perth , Victoria worked for Bankwest for a number of years before moving into consultancy . She is currently Executive Corporate Affairs for the City of Cockburn , a unique role within local government , overseeing economic development , advocacy , community engagement , customer experience and communications / marketing .
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