Institutional Alignment, Community Participation, and Inclusive Development Management in Frontier Economies

Authors:
Eka Setiawati, Lavenia Lauwinata, Simon Ebel Maris

Addresses:
Department of Business Management Study Program, Saint Theresa College of Economics, Merauke, South Papua, Indonesia.

Abstract:

Inclusive development has become a central paradigm in addressing persistent socio-economic inequalities, particularly in frontier regions. This study analyses inclusive development management aimed at empowering local communities in South Papua Province, Indonesia, a frontier region characterised by geographic isolation, limited infrastructure, weak institutional capacity, and relatively low human development outcomes. The research aims to examine the alignment between development policies and local contexts, the quality of community participation, local capacity, and the roles of formal and informal institutions in supporting inclusive development. This study employs a qualitative case study approach, using in-depth interviews, document analysis, and field observations involving government agencies, customary institutions, and local communities. The analysis integrates inclusive development theory, institutional fit theory, participatory development, social capital theory, and political ecology to capture the multidimensional dynamics of empowerment and governance. The findings indicate a substantial gap between inclusive policy frameworks and their implementation. Community participation remains largely procedural, national policies are insufficiently aligned with customary norms, and coordination among institutions is weak. The dominance of state and corporate actors in natural resource governance further limits inclusivity, despite strong local social capital. The study recommends adaptive, context-sensitive development management through institutional harmonisation, substantive participation, collaborative governance, strengthened local capacity, and equitable natural resource management to achieve sustainable, inclusive development in frontier regions. 

Keywords: Inclusive Development; Community Empowerment; Frontier Regions; Institutional Governance; Institutional Fit Theory; Participatory Development; Social Capital Theory.

Received on: 14/11/2024, Revised on: 05/01/2025, Accepted on: 31/03/2025, Published on: 12/12/2025

DOI: 10.69888/FTSHS.2025.000546

FMDB Transactions on Sustainable Humanities and Society, 2025 Vol. 2 No. 4, Pages: 172-180

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