Development priorities in an emerging decentralized economy: the case of Armenia's local development programs

Based on a data set of 217 communities in Armenia, this paper studies the choice of priority directions in local development programs in the years 2003–2005. The scope of programs is presented and discussed relative to good practices in local development. It is shown that a disproportionately high share of programs is directed at improving local infrastructures, against the principles of good practices. Furthermore, the responsiveness to community needs of local development programs is explored for the case of drinking water infrastructure projects. This paper provides suggestive evidence for program responsiveness, which further increases with an increase in newspaper circulation in a community.