The Role of Local Groups in the Economy

Abstract

Local communities are the basis for building development, especially the economy at the regional level. The municipality represents the basic base of the state, as it enjoys legal personality and financial independence. The Municipal People’s Council is considered the decentralized base in the government system and the place of citizen participation in the management of the public affairs of the municipality. Based on this study, I tried to know the various governance systems for local administration at the world level, highlighting their sources of funding and the extent of activating decentralization in them. We also touched on the governance system for local administration at the level of Algeria, while highlighting the most important development programs, which were accompanied by legal amendments. The aim of the study was to determine the municipality’s potential to build a strong local economy within its geographical area. In order to further clarify the role of the local economy, we studied a case of the municipality of Ain Azel, Setif Province, and took it as a model through which we can give a glimpse into the reality of the local economy.