<![CDATA[Decentralization provides opportunities for local governments to formulate more responsive development policies; however, in Jember Regency, a gap exists between development costs and community welfare due to misallocated budgets and the dominance of top-down approaches. This study aims to evaluate regional economic development policies in Jember Regency for the period 2000-2005 and develop a rational policy model based on local needs. Using a qualitative approach, data were collected through in-depth interviews, focus group discussions, observation, and documentation, then analyzed using grounded theory techniques by Strauss and Corbin. The findings indicate that development during this period focused more on physical infrastructure rather than on community welfare enhancement sectors, leading to increased poverty and unemployment. The study concludes that a policy model based on social equity and community participation is needed, with recommendations to strengthen local institutions and integrate bottom-up approaches into regional development planning. Desentralisasi membuka peluang bagi pemerintah daerah untuk menyusun kebijakan pembangunan yang lebih responsif, namun di Kabupaten Jember terjadi ketimpangan antara biaya pembangunan dan kesejahteraan masyarakat akibat alokasi anggaran yang tidak tepat sasaran serta dominasi pendekatan top-down. Penelitian ini bertujuan mengevaluasi kebijakan pembangunan ekonomi daerah di Kabupaten Jember periode 2000-2005 serta mengembangkan model kebijakan yang rasional berbasis kebutuhan lokal. Dengan pendekatan kualitatif, data dikumpulkan melalui wawancara mendalam, focus group discussion, observasi, dan dokumentasi, lalu dianalisis menggunakan teknik grounded theory dari Strauss dan Corbin. Hasil penelitian menunjukkan bahwa pembangunan selama periode tersebut lebih terfokus pada infrastruktur fisik daripada sektor peningkatan kesejahteraan masyarakat, sehingga kemiskinan dan pengangguran justru meningkat. Disimpulkan bahwa diperlukan model kebijakan berbasis social equity dan partisipasi masyarakat, dengan rekomendasi penguatan kelembagaan lokal serta integrasi pendekatan bottom-up dalam perencanaan pembangunan daerah.]]>
