From dysfunctional to destitute: the governance of regional economic development in Newfoundland and Labrador

On 22 May 2012, the federal government announced that it was discontinuing the funding for all regional economic development (RED) organizations in Atlantic Canada, including the regional economic development boards (REDBs) in Newfoundland and Labrador (NL). Shortly after the federal announcement the provincial government in NL also withdrew its financial support, which led to the demise of the REDBs across the province. In this paper, we critically explore the governance of RED in NL and examine the REDB approach and its subsequent demise using Stoker's five propositions of governance. While the REDBs were conceived as a fundamentally 'new regional economic development approach', they were never granted the level of autonomy, support, and resources that was envisioned in this new approach. However, we argue that the demise of the REDBs has shifted the governance of RED from dysfunctional to destitute. These changes are also situated within a 'retreat from rural' policy agenda and devolved responsibilities to local levels of government across Canada and in NL.