Accountability and Community Economic Development: The Funder-Governed NGO

Abstract

This paper considers whether or not the new accountability regime is able to redefine the work of community organizations. After defining the role of the nonprofit sector and CED (Community Economic Development) organizations, discussion turns to the theoretical roots of this accountability regime. It is argued to be the product of a government working simultaneously under two conflicting administrative models: new public management and social governance. The impact of these accountability mechanisms is examined through the case of a CED agency in Nova Scotia which has struggled in its response to funders’ pressures. Three themes from the literature are explored: shifting priorities, stifling innovation, and stumbling through issues of performance measurement. The case illustrates that government can have a profound unintentional impact on community economic development. The closing discussion seeks to understand how government might achieve accountability without circumventing local governance.