Public Policy and Governance for Local Development and Economic Growth

Abstract

The nexus between local development and public policy is deeply interdependent and of critical importance. Grounded in this ontological perspective, the present study investigates the complex interrelations between these two domains. Public policies provide the structural frameworks and strategic guidelines that directly shape the trajectory of local development. This research adopts an explanatory, qualitative approach, drawing upon a comprehensive review of secondary data. The findings indicate that thoughtfully designed and effectively executed public policies can significantly advance local development by promoting economic growth, enhancing quality of life, and strengthening community well-being. However, the study also uncovers considerable gaps in the actual processes of policy formulation and implementation, which are often fragmented and lack empirical grounding. Such shortcomings diminish the potential of public policy to contribute meaningfully to national development. Many local governments continue to operate without clear developmental priorities, frequently overlooking the importance of sustainability, the mobilization of local resources, and the generation of employment for local populations. In Nepal’s federal structure where local development is intended to be a fundamental pillar of democratic governance there has been a discernible misalignment between policy practices and developmental needs. To uphold performance legitimacy within the federal framework, the government must place greater emphasis on sustainable and inclusive development. The study concludes that grassroots democracy in Nepal is currently beset by multiple challenges. Overcoming these challenges demands a shift toward a more people centered public policy approach that is closely aligned with local development objectives.