UBC Theses and Dissertations

UBC Theses Logo

UBC Theses and Dissertations

Macro forces and micro initiatives : economic policy planning at the urban level in advanced industrial.. Dunn, Denis Edward 1984

You don't seem to have a PDF reader installed, try download the pdf

Item Metadata

Download

Media
UBC_1984_A8 D85.pdf [ 4.08MB ]
[if-you-see-this-DO-NOT-CLICK]
Metadata
JSON: 1.0096339.json
JSON-LD: 1.0096339+ld.json
RDF/XML (Pretty): 1.0096339.xml
RDF/JSON: 1.0096339+rdf.json
Turtle: 1.0096339+rdf-turtle.txt
N-Triples: 1.0096339+rdf-ntriples.txt
Original Record: 1.0096339 +original-record.json
Full Text
1.0096339.txt
Citation
1.0096339.ris

Full Text

MACRO FORCES AND MICRO INITIATIVES: ECONOMIC POLICY PLANNING AT THE URBAN LEVEL IN ADVANCED INDUSTRIAL MARKET COUNTRIES by DENIS EDWARD DUNN B.A.(Hons.) University of Nottingham, 1975 A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS in THE FACULTY OF GRADUATE STUDIES (School of Community and Regional Planning) We accept this thesis as conforming to the required st.iindord THE UNIVERSITY OF BRITISH COLUMBIA October, 1984 © Denis Edward Dunn, 1984 In presenting t h i s thesis i n p a r t i a l f u l f i l m e n t of the requirements for an advanced degree at the University of B r i t i s h Columbia, I agree that the Library s h a l l make i t f r e e l y available for reference and study. I further agree that permission for extensive copying of t h i s thesis for scholarly purposes may be granted by the head of my department or by his or her representatives. I t i s understood that copying or publication of t h i s thesis for f i n a n c i a l gain s h a l l not be allowed without my written permission. Department of COMMV iM (Ty /?E&OA//\ L / ^ A / W I / M / ^ The University of B r i t i s h Columbia 1956 Main Mall Vancouver, Canada V6T 1Y3 Date Oaf. / 4 'it* DE-6 (3/81) i i ABSTRACT Macro Forces and Micro I n i t i a t i v e s : Economic P o l i c y Planning at the Urban L e v e l i n Advanced I n d u s t r i a l Market Countries This t h e s i s i s concerned with the e f f o r t s of l o c a l government i n advanced i n d u s t r i a l market c o u n t r i e s to p o s i t i v e l y i n f l u e n c e urban and m e t r o p o l i t a n economic development i n response to pe r v a s i v e economic s t a g n a t i o n and d e c l i n e , and the i m p l i c a t i o n s of t h i s expanding f u n c t i o n f o r the planning p r o f e s s i o n . I t i d e n t i f i e s some of the fundamental trends a f f e c t i n g c i t y economies i n c l u d i n g ' d e - i n d u s t r i a l i s a t i o n ' impelled by d e c e n t r a l i s a t i o n and i n t e r - r e g i o n a l d i s p e r s i o n ; dis-investment d r i v e n by the i n t e r n a t i o n a l m o b i l i t y of c a p i t a l seeking lower costs and higher r e t u r n s ; and o v e r a l l economic s t a g n a t i o n a s s o c i a t e d with the retrenchment i n s e r v i c e s e c t o r growth. The consequences f o r urban areas are then d i s c u s s e d i n terms of s t r u c t u r a l unemployment, p h y s i c a l decay, l o s s of v i t a l i t y , and impending f i s c a l c r i s i s . I t i s observed that n a t i o n a l and r e g i o n a l p o l i c i e s have been l a r g e l y u n s u c c e s s f u l i n a l t e r i n g i n t e r - r e g i o n a l employment, investment and production p a t t e r n s . L e g i t i m a t e concern at the l o c a l l e v e l f o r both d e c l i n e and n e g l e c t provides a major r a t i o n a l e f o r a grea t e r r o l e f o r l o c a l a u t h o r i t i e s as stewards of socio-economic welfare on behalf of c o n s t i t u e n t s . Urban economic development, however, i s c u r r e n t l y pursued at the expense of sound a n a l y s i s , c l a r i f y i n g o b j e c t i v e s and e f f e c t i v e n e s s , and c o o r d i n a t i o n and coo p e r a t i o n . i i i Due t o t h e n a t u r e a n d e x t e n t o f s p a t i a l a n d s e c t o r a l s h i f t s o c c u r i n g i n t h e s p a c e e c o n o m y , t h e i n t e g r i t y o f s t a n d a r d s p a t i o - e c o n o m i c t h e o r i e s i s s e r i o u s l y u n d e r m i n e d , s o t h a t e c o n o m i c p o l i c y p l a n n i n g a t t h e l o c a l u r b a n l e v e l h a s b e e n u n d e r t a k e n w i t h o u t a s a t i s f a c t o r y b a s i s . M o r e o v e r , t h e r e h a s b e e n no m e a n i n g f u l a s s e s s m e n t t o d a t e o f b o t h b r o a d s t r a t e g i c a p p r o a c h e s a d o p t e d a n d p o l i c y i n s t r u m e n t s e m p l o y e d i n l o c a l e c o n o m i c p l a n n i n g . I n a d d i t i o n , t h e d i s c i p l i n e o f p l a n n i n g , i n b o t h a n a c a d e m i c a n d a p p l i e d s e n s e , h a s t e n d e d t o f o c u s o n l a n d u s e , d e s i g n a n d m o r e r e c e n t l y s o c i a l i s s u e s t o t h e e x c l u s i o n o f t h e e c o n o m i c d i m e n s i o n , w h i c h h a s r e s u l t e d i n a p r o f e s s i o n a l v a c u u m i n t h i s r a p i d l y e m e r g i n g a r e a . T h e p r e v a i l i n g d e f i c i e n c i e s i n p o l i c y a n d p r a c t i c e p r e s e n t a r e a l c h a l l e n g e t o t h o s e i n v o l v e d . I t i s t h e r e f o r e t i m e l y t o r e f l e c t u p o n t h e d i v e r s i t y o f e x p e r i e n c e a n d s u b s e q u e n t l y f o r m u l a t e a s e t o f p r i n c i p l e s t o e n h a n c e e f f e c t i v e n e s s a n d g u i d e a c t i o n . T h e f i n d i n g s a r e b a s e d o n a n e x t e n s i v e r e v i e w o f l i t e r a t u r e f r o m N o r t h A m e r i c a a n d E u r o p e i n w h i c h m a j o r t h e m e s a n d i s s u e s w e r e i d e n t i f i e d a n d t h e n s t r u c t u r e d i n t o a c o h e r e n t f r a m e w o r k . B e c a u s e i m p a c t s a n d c o n d i t i o n s v a r y e n o r m o u s l y b e t w e e n j u r i s d i c t i o n s , a n d o u t c o m e s a r e h i g h l y u n c e r t a i n , p o l i c i e s s h o u l d b e c o n t e x t u a t e d i n l i g h t o f o n g o i n g r e s t r u c t u r i n g a n d l o c a l c i r c u m s t a n c e s . T h i s r e q u i r e s a s e n s i t i v e p e r c e p t i o n o f t r e n d s , d y n a m i c s a n d e v o l v i n g l i n k a g e s . F u r t h e r m o r e , p o l i c i e s o u g h t t o b e s t r a t e g i c a l l y p l a c e d i n t e r m s o f s e l e c t i v i t y a n d t a r g e t t i n g . iv Innovation i s recommended in the creation of new tools because a broad range of intervention points enhances f l e x i b i l i t y . Unorthodox i n i t i a t i v e s such as worker cooperatives have u t i l i t y in expanding the range of options but instruments should be precise so that i t i s clear which objectives are being pursued. It i s essential to have a thorough monitoring and evaluation component to assess impact and effectiveness. Because i t i s also important to be cost-effective in this 'era of l i m i t s ' , costs as well as policy choices for the l o c a l economy should be c l a r i f i e d , p a r t i c u l a r l y as s i g n i f i c a n t costs may be involved in both turning around market forces and in ameliorative measures. That the urban authority has a small but s i g n i f i c a n t role to play in economic development ef f o r t s i s now widely appreciated. As the scope for action i s severely constrained by resource and j u r i s d i c t i o n a l l i m i t a t i o n s , capacity ought to be f o r t i f i e d by improving l o c a l authority funding and powers. Planners can play a central role here in terms of their a b i l i t y for researching and analysing trends and problems; their p o l i t i c a l awareness in dealing with l o c a l p o l i t i c i a n s and interest groups; their demonstrated expertise in animating the community and fostering a dialogue around goals, values, needs and p r i o r i t i e s ; and, f i n a l l y , their communication s k i l l s with respect to inter-government l i a i s o n and regional coordination. V TABLE OF CONTENTS PAGE ABSTRACT i i TABLE OF CONTENTS v Acknowledgements v i i 1: INTRODUCTION 1.1 The Rise of Urban Economic Development 1 1.2 The Problem 6 1.3 J u s t i f i c a t i o n for Thesis and Chapter Outline 13 2: DYNAMICS AND TRENDS 2.1 Introduction 16 2.2 Structural Change 18 2.3 Spatial Shifts 20 2.4 Explanations 21 2.5 Employment and Community Effects 28 2.6 Concentration and Centralisation of Capital 31 3: VARIATIONS IN APPROACH TO URBAN ECONOMIC POLICY 3.1 Introduction 34 3.2 The Conservative Approach 35 3.3 The S o c i a l i s t Approach 37 3.4 The Liberal Approach 38 v i 4: POLICY COMMENTARY 4.1 Introduction 41 4.2 Land 42 4.3 Finance 45 4.4 Entrepreneurship 51 4.5 Labour 53 5: IMPLEMENTATION OF LOCAL ECONOMIC POLICIES 5.1 Introduction 56 5.2 Interagency Coordination 56 5.3 Community Collaboration 59 5.4 Impact on Conventional Urban Planning 60 6: CONCLUSIONS 6.1 Summing up of the Problem 64 6.2 Pri n c i p l e s 65 BIBLIOGRAPHY 76 v i i Acknowledgements I should l i k e to take t h i s o p portunity to warmly thank a l l those persons who a s s i s t e d me i n t h i s endeavour, e i t h e r d i r e c t l y or i n d i r e c t l y . Space r e s t r i c t i o n s do not permit me to mention them here by name. But I am extremely g r a t e f u l to my t h e s i s a d v i s o r s , p a r t i c u l a r l y Tom Hutton who was i n many res p e c t s my mentor i n the arduous task of beating a path through the conceptual and e m p i r i c a l j u n g l e . -1- CHAPTER 1 INTRODUCTION 1.1 The Rise of Urban Economic Development Despite a few problems, c i t y economies in advanced i n d u s t r i a l countries of Western Europe and Anglo America were ess e n t i a l l y buoyant throughout the 1950s and 1960s. Consequently, there was never any perceived need for l o c a l planners to understand how they worked or to plan for their development. Events and experience in the 1970s, however, shattered this complacency. The fundamental health of l o c a l economies could no longer be taken for granted. It i s said of the national economy that 'a r i s i n g tide l i f t s a l l boats' but since about the mid-1970s "the national economic tide receded unevenly thereby exposing l o c a l boats to quite different situations...many f e l l l i s t l e s s and a d r i f t in the economic backwaters of stagnant t i d a l pools while others raced along unguided in the grip of regional r i p t i d e s " Bergman 1983a:260 Many l o c a l economies are no longer 'seaworthy' but are experiencing great d i s t r e s s . It i s the impacts of recession and restructuring that are placing an increasing burden on l o c a l economies. Restructuring, driven by the technological imperative, i s producing so-called d e i n d u s t r i a l i s a t i o n with a resulting loss of manufacturing jobs. This process i s p a r t i c u l a r l y acute in aging i n d u s t r i a l c i t i e s , -2- and protracted decline was found to be exacerbated by the severity and longevity of the 1979 recession. Symptoms of decline have been apparent for some time but urban economic problems have cert a i n l y accentuated (Lawless 1981). There i s now real concern at the l o c a l l e v e l about i n d u s t r i a l decline, deteriorating job access and erosion of the municipal property tax base. Rising costs and s t a t i c incomes are putting f i s c a l pressure on urban governments and for some even portend a f i s c a l c r i s i s (Eversley 1973). This persistent erosion of the c i t y ' s employment and tax base i s diminishing urban economic v i t a l i t y . Although urban economic malaise i s now widespread throughout the 'West', i t i s important to bear in mind that outcomes are very much context s p e c i f i c . In other words, each c i t y ' s experience i s a result of a confluence of many discrete forces s p e c i f i c to that centre. Conditions and problems vary enormously between urban centres. Some must merely cope with problems of tr a n s i t i o n to post-industrial prosperity while others must face a serious decline in their economic fortunes. With respect to urban economic problems, l o c a l authorities are very much in the immediate f i r i n g l i n e . Acute job loss and rate base reductions which manifest in the c i t y generate pressure from constitutents for some sort of lo c a l action to p o s i t i v e l y influence their urban economy. Local governments are therefore concerned to id e n t i f y and promote new sources of employment (primary concern in the U.K.) and to restore the municipal tax base (main preoccupation in Canada). -3- Local economic policy i n i t i a t i v e s are, then, prompted by problems associated with urban economic change, stagnation and decline, p a r t i c u l a r l y the erosion of the c i t y ' s tax and employment base, which i n t e n s i f i e s the pressures for l o c a l intervention. In addition, the impulse for launching l o c a l p o l i c i e s i s given by the perceived inadequacies of economic p o l i c i e s implemented by senior levels of government (Shapira 1981). There i s a widespread notion that senior government has f a i l e d to s a t i s f a c t o r i l y address urban economic problems. National economic p o l i c i e s arguably demonstrate a misplaced concern for national economic regeneration to the v i r t u a l exclusion of ameliorative regional, urban and so c i a l measures. In this 'restructuring versus the c i t i e s ' , the imperatives of r a t i o n a l i s a t i o n and recovery are pursued in the national interest while l o c a l consequences are v i r t u a l l y ignored. According to Young and M i l l s "the policy debate which i s to come l i e s in the in t e r s t i c e s between sectoral and sp a t i a l p o l i c i e s but this may also be the i n t e r s t i c e s btween national p r i o r i t i e s and l o c a l concerns". 1982:93. There i s in some quarters, then, a perception that senior or central government has neglected to formulate p o l i c i e s which mitigate or r e c t i f y market f a i l u r e s . In the ascendant neo-conservative scheme of things urban, regional and so c i a l p o l i c i e s are accorded low legitimacy. Regional policy i n particular has been subordinated to - 4 - the new overriding national orientation to economic policy making. The p o l i t i c a l eclipse or dismantling of regional policy was probably j u s t i f i e d on the grounds that although i t succeeded in diverting new industry, i t f a i l e d to generate any substantial long-term growth (Martin and Hodge 1983). According to Pred (1976), regional policy in the 1970s constantly f e l l short of expectations. The disappointing track record of regional policy can perhaps be partly explained by the fact that i t was in a sense operating 'out of context'. In other words, i t no longer met needs created by altered circumstances. While regional analysts struggle to understand the 'new geography', regional policy and planning has been superceded by a new philosophy of l o c a l i n i t i a t i v e (Hall and Breheny 1983). Local government economic p o l i c i e s and strategies have f i l l e d a vacuum l e f t by the rundown of regional policy (Crombie 1983). Increasing l o c a l government involvement in economic policy planning i s , then, a consequence of both economic decline and urban neglect. In addition, added impetus to l o c a l action i s given by the increasing recognition that the c i t y authority has a legitimate role to play in employment and economic development because of i t s unique features. Local government i s d i r e c t l y accountable to i t s constituents, i s rooted in communities, has good l o c a l knowledge due to i t s in s i t u perspective, and has demonstrated expertise in a l l i e d areas. It i s , therefore, r e l a t i v e l y responsive, well informed, decentralised, f l e x i b l e and competent. -5- In addition to these special attributes, i t has at i t s disposal a myriad of assets to mobilise for economic development. A t y p i c a l inventory would comprise the property tax base and c i t y land, as well as l o c a l factors affecting strategy such as natural resource endowment, human ca p i t a l pool, condition of infrastructure, strength of consensus and quality of p o l i t i c a l leadership (Hutton 1982). Local government can certainly contribute to urban economic development in a meaningful way. In many j u r i s d i c t i o n s i t already exerts a considerable influence over the urban economy in a l l i e d policy areas, and may be a major employer and purchaser in i t s own rig h t . Its legal r e s p o n s i b i l i t y for certain services and functions such as infrastructure provision and development planning control impinge d i r e c t l y upon wealth and job creation (Waters 1983). In setting out p o l i c i e s and programs that might be followed by l o c a l government in economic development, i t i s cr u c i a l to consider the capacity to act. The scope for l o c a l action tends to be severely c u r t a i l e d by limited resources and powers, although U.S. l o c a l governments have independent powers of taxation and l e g i s l a t i o n which permits greater experimentation. Not only are authority and resources r e s t r i c t e d but urban economies are subject to and l o c a l action i s constrained by powerful exogenous market forces. In sum, recession and restructuring are producing major urban economic change, stagnation and decline. Local concern over contemporary urban malaise generates in turn pressures for -6- a c t i o n by urban a u t h o r i t i e s . T h i s i s r e i n f o r c e d f i r s t of a l l by a p e r c e p t i o n that senior and/or c e n t r a l government p o l i c i e s have f a i l e d to adequately address urban economic problems, and secondly by the acknowledgement that the l o c a l a u t h o r i t y has a l i m i t e d but u s e f u l r o l e to play i n economic development e f f o r t s . For these reasons urban governments have assumed a greater r e s p o n s i b i l i t y f o r the economic welfare of t h e i r c o n s t i t u e n c y and, as a r e s u l t , l o c a l economic p o l i c y planning has l i t e r a l l y 'mushroomed' i n recent years. From humble o r i g i n s i n i n d u s t r i a l development, l o c a l economic p o l i c y planning has expanded i n both s c a l e and scope to encompass s t r a t e g i e s of a human, f i n a n c i a l as w e l l as a p h y s i c a l nature. There are now a wide range of economic p o l i c y i n i t i a t i v e s implemented by urban governments i n v a r i o u s j u r i s d i c t i o n s to p o s i t i v e l y i n f l u e n c e t h e i r l o c a l economies. Consi d e r i n g that t h i s has a l l taken place w i t h i n the space of a decade i s indeed q u i t e remarkable. In t h i s emerging p o l i c y f i e l d l o c a l government i s cast i n a l e a d i n g r o l e , and economic development has taken i t s place among the p r i n c i p a l planning a c t i v i t i e s c a r r i e d out at the urban l e v e l . 1. 2 The Problem Economic development p o l i c y planning at the urban l e v e l i s now a major focus f o r p u b l i c p o l i c y debate. Growing commitment to economic w e l l being has r e s u l t e d i n a r a p i d expansion or ' e x p l o s i o n ' of economic a c t i v i t y at the urban l e v e l ( M i l l e r 1981), and the general p u b l i c i s now more aware of l o c a l government e f f o r t s . - 7 - However, the debate over t h i s a c t i v i t y emanates not so much from i t s v i s i b i l i t y but from c r i t i c i s m s t r a c e d to pe r c e i v e d d e f i c i e n c i e s i n both p o l i c y and p r a c t i c e . Concern i s expressed that urban economic development i s f o r the most part ad hoc, d i s j o i n t e d and piecemeal - i n other words i t i s l a c k i n g i n coherence (Damesick 1981). There i s c e r t a i n l y no shortage of a c t i o n i n the f i e l d . However, f o r many p o l i c i e s there i s no r e a l b a s i s f o r i n t e r v e n t i o n . I t i s observed that many i n i t i a t i v e s were and s t i l l are developed i n response to p o l i t i c a l pressure or sudden c r i s e s . Many l o c a l a u t h o r i t i e s want to be seen to be doing something and subsequently opt f o r the 'quick f i x ' s o l u t i o n (Waters 1983). The term 'boosterism' s u c c i n c t l y captures the f l a v o u r of the short-term, r e a c t i v e approach to l o c a l economic p o l i c y making. I t i s apparent that to date a n a l y s i s tends f o r the most part to be s u p e r f i c i a l and naive, and o f f e r s l i t t l e i n s i g h t i n t o the nature and extent of urban economic change and d e c l i n e . Those r e s p o n s i b l e f o r f o r m u l a t i n g urban s t r a t e g i e s and p o l i c i e s l a c k a r e a l understanding of t h e i r l o c a l economies. There i s an urgent need f o r l o c a l economic planners, then, to gain an a p p r e c i a t i o n of the dynamics and macro f o r c e s u n d e r l y i n g and trends c h a r a c t e r i s i n g r a p i d change and d e c l i n e i n the urban space economy, and of the i m p l i c a t i o n s of t h i s a l t e r e d context f o r the f o r m u l a t i o n of economic p o l i c i e s at the l o c a l l e v e l . Urban economic p o l i c y planning must account f o r the 'new economic r e a l i t i e s ' brought about by fundamental s p a t i a l and -8- sectoral restructuring in the larger economy. It i s patently obvious that much has changed with respect to theories and assumptions pertaining to the urban space economy in the 1970s. Prior theoretical understanding of, for example, the product cycle, enterprise 'incubation', i n d u s t r i a l linkages and the system of c i t y economies i s arguably rendered redundant by new conditions and circumstances. The new input-output relationships between components of the economic structure remain unclear. How do we incorporate into our theories the concept of service-based development or the changing nature of work? There may well be occuring a weakening of the interdependency between economic processes and sp a t i a l form. It i s unfortunate that at the present urban economic planners lack a composite theory of post-i n d u s t r i a l development and structure capable of integrating sectoral, s p a t i a l and technological elements of change (Hirschhorn 1979). Furthermore, the great d i v e r s i t y of urbanisation experience does not lend i t s e l f readily to generalisations required for cogent theory (Hutton 1983). Contemporary urban economic problems are complex and the lack of firm academic foundations to guide action i s serious. There i s , then, much uncertainty and consternation about what i s happening to urban economies, and l o c a l economic planners are far from developing a coherent and comprehensive perspective on dynamics underlying changes in the urban space economy that i s both conceptually and empirically sound. J u s t i f i c a t i o n for economic p o l i c i e s at the l o c a l l e v e l must -9- t h e r e f o r e await the outcome of a major r e c o n c e p t u a l i s a t i o n e f f o r t based upon a s e n s i t i v e p e r c e p t i o n and i n t e r p r e t a t i o n of tre n d s . Concern i s a l s o d i r e c t e d at the enlarged economic development r o l e assumed by urban a u t h o r i t i e s i n some j u r i s d i c t i o n s . A u n i v e r s a l trend over the l a s t decade has been f o r l o c a l a u t h o r i t i e s to become i n c r e a s i n g l y d i r e c t l y i n v o l v e d i n many aspects of the l o c a l economy. L o c a l governments have moved beyond the r e l a t i v e l y simple p r o v i s i o n of i n f r a s t r u c t u r e , s i t e s and premises f o r promotion of i n d u s t r i a l development - i t s t r a d i t i o n a l 'bread and b u t t e r ' a c t i v i t y - toward developing p a r t n e r s h i p s with the p r i v a t e s e c t o r , the p r o v i s i o n of more broadly based a d v i s o r y s e r v i c e s and r i s k c a p i t a l , i n t e r v e n t i o n s i n the labour market, and even the promotion of community e n t e r p r i s e and worker c o o p e r a t i v e s (Young and M i l l s 1982, Middleton 1983). In other words, they have g e n e r a l l y become more i n t e r v e n t i o n i s t and a c t i o n - o r i e n t e d . There i s a l s o now an expressed preference f o r indigenous development which focusses on job c o n s e r v a t i o n as w e l l as c r e a t i o n , and a s s i s t a n c e to e x i s t i n g l o c a l f i r m s . The emphasis has c l e a r l y s h i f t e d away from a t t r a c t i o n as a means to promote the l o c a l economy to a s s i s t a n c e of e x i s t i n g economic a c t i v i t i e s . I t i s not so much the enlarged r o l e per se of urban governments or the new i n w a r d - o r i e n t a t i o n that i s of concern to sen i o r government but the hidden and ambiguous o b j e c t i v e s u n d e r l y i n g p o l i c y c l u s t e r s . In some j u r i s d i c t i o n s l o c a l and met r o p o l i t a n a u t h o r i t i e s have devised s t r a t e g i e s and p o l i c i e s -10- which have become quite controversial. I n i t i a l l y , there was confusion because objectives were vague. It was not clear whether the main aim was to manage the l o c a l economy, ease t r a n s i t i o n , retard the process of change, regenerate or be concerned with more prosaic 'maintenance'. As long as ideological underpinnings remained hidden and biases concealed p o l i c i e s were not considered contentious. In other words, the 'fuzzy consensus' depended on divergent objectives not being made too e x p l i c i t (Waters 1983). The consensus, however, has been shattered. Young and M i l l s (1982) distinguish between those p o l i c i e s that 'flow with the t i d e ' and those that struggle against i t . Many l o c a l governments have refused to acquiesce and instead sought to devise their own strategies for 'struggling against the t i d e ' , p a r t i c u l a r l y in the U.K. where many of the issues in urban economic development are pronounced. For some urban authorities the enlarged role has meant moving from i n d u s t r i a l development to regeneration of the l o c a l economy and even s o c i a l reconstruction of the l o c a l community (Middleton 1983). Progressive i n i t i a t i v e s represent an interesting departure in policy which raises real potential for inter-government c o n f l i c t a r i s i n g from pursuing di f f e r e n t policy objectives. Alternative policy clusters may be contradictory to and even undermine national and regional policy goals and p r i o r i t i e s (Rogers and Smith 1977). Also, l o c a l government intervention i s anticipated to attract greater central/senior government attention in the 1980s not least because of the -11- expenditure consequences and implications for inter-government f i s c a l r e l a t i o n s . It i s , then, the controversial nature of many i n i t i a t i v e s that has thrust urban economic development abruptly into the limelight and pressures are growing to expose the objectives behind policy clusters, as well as to make e x p l i c i t the underlying assumptions and biases. There are also pressures to expose both the magnitude and impacts of costs and benefits associated with established and experimental p o l i c i e s , not just from the right of centre but also from the l e f t who are concerned about public subsidies to private c a p i t a l . There i s a bewildering array of l o c a l economic policy i n i t i a t i v e s but l i t t l e i s known at the present time about which forms of intervention are most cost - e f f e c t i v e , p r a c t i c a l and relevant. There are many options open to a l o c a l government with respect to economic and employment development but the task of choosing from among them i s not an easy one, especially as precious l i t t l e meaningful evaluation has been undertaken of the various remedial economic strategies and p o l i c i e s implemented by urban a u t h o r i t i e s . Local monitoring of a c t i v i t i e s in this area has been at best s e l f - j u s t i f y i n g and at worst non-existent (Young and M i l l s 1982). The neglect i s alarming p a r t i c u l a r l y as serious resource constraints makes the evaluation of options more important. Johnson and Cochrane (1981) in a study in the U.K. did not find one l o c a l authority that had carried out a cost-benefit appraisal of i t s p o l i c i e s . Lip service i s paid to the need for -12- e v a l u a t i o n . Many l o c a l p o l i t i c i a n s simply l a c k an i n t e r e s t i n t h i s follow-up a c t i v i t y , or regard the e x e r c i s e as being too c o s t l y , academic ( i . e . i r r e l e v a n t ) and too d i f f i c u l t . I t may a l s o be that l o c a l o f f i c i a l s are r e l u c t a n t to assess the e f f e c t i v e n e s s and costs of p o l i c i e s because there i s a f e a r that the r e s u l t s w i l l f i n d attempts l a r g e l y misplaced or i n a p p r o p r i a t e . Because of the methodological and p o l i t i c a l d i f f i c u l t i e s i n the e v a l u a t i o n of p o l i c i e s f o r urban economic development, the pa u c i t y of s t u d i e s i n t h i s area i s understandable but nonetheless r e g r e t t a b l e . Not only are those i n v o l v e d i n urban economic development u n c e r t a i n of the t h e o r e t i c a l j u s t i f i c a t i o n f o r t h e i r a c t i o n s but a l s o of the best way i n which to achieve o b j e c t i v e s (Waters 1983). There i s both a t h e o r e t i c a l and p r o f e s s i o n a l 'vacuum'. Lo c a l economic i n i t i a t i v e s o f t e n r e q u i r e an unprecedented degree of i n t e r d i s c i p l i n a r y c o o p e r a t i o n as w e l l as interagency c o o r d i n a t i o n and i n t h i s many problems are encountered. With respect to the ' i n t e r n a l i n t e r f a c e ' , the major i s s u e centres around the planning p r o f e s s i o n ' s response to ten s i o n s between r e g u l a t i o n / c o n t r o l - the dominant f u n c t i o n of t r a d i t i o n a l urban planning - and promotion/creation which i s the r a i s o n d'etre of l o c a l economic p o l i c y p l a n n i n g . As f o r e x t e r n a l r e l a t i o n s , i t i s by no means c l e a r how urban economic development should be organised to reduce or avoid the p o t e n t i a l f o r d u p l i c a t i o n and c o n f l i c t . C e r t a i n l y , the absence of a coherent framework f o r meshing n a t i o n a l , r e g i o n a l and l o c a l p o l i c i e s i s a p a r t i c u l a r l y -13- s e r i o u s omission. There i s a l s o a problem i n f o r g i n g l i n k s with l o c a l i n t e r e s t groups and o b t a i n i n g consensus around i s s u e s . To overcome weaknesses i n p r a c t i c a l implementation, both the i n s t i t u t i o n a l s t r u c t u r e and ' a c t o r s ' i n v o l v e d must be c l a r i f i e d , and p e r t i n e n t i s s u e s d e l i n e a t e d . In sum, i t i s widely a s s e r t e d that l o c a l economic p o l i c y planning i n i t s present e v o l u t i o n a r y stage i s pursued at the expense of sound a n a l y s i s , e x p l o r i n g o b j e c t i v e s and e f f e c t i v e n e s s , and c o o r d i n a t i o n and c o l l a b o r a t i o n . These d e f i c i e n c i e s present a r e a l c h a l l e n g e to l o c a l economic planners i n the f o l l o w i n g areas: j u s t i f y i n g p o l i c i e s i n terms of wider dynamics and trends (as w e l l as l o c a l c o n d i t i o n s and o p p o r t u n i t i e s ) ; making e x p l i c i t the values and assumptions behind the p o l i c y approach adopted; monitoring and e v a l u a t i o n ; and enhanced implementation. 1.3 J u s t i f i c a t i o n f o r the Thesis and Chapter O u t l i n e Undeniably, there are important lessons to be l e a r n t from a decade of r a p i d expansion i n urban economic p o l i c y p l a n n i n g . I t i s t h e r e f o r e t i m e l y to r e f l e c t upon the d i v e r s i t y of experimentation i n t h i s burgeoning p o l i c y f i e l d , and to subsequently develop a coherent p e r s p e c t i v e on p o l i c y and p r a c t i c e . S p e c i f i c a l l y , a fundamental set of p r i n c i p l e s w i l l be formulated based upon an assessment of experience to date. More f o r m a l i s e d and systematic p o l i c y planning w i l l , i t i s b e l i e v e d , enhance both the q u a l i t y and e f f e c t i v e n e s s of urban economic development. Because of the u n i v e r s a l i t y of b a s i c themes and -14 i s s u e s , t h i s t h e s i s w i l l have a wide a p p l i c a t i o n i n d i f f e r e n t j u r i s d i c t i o n s and should t h e r e f o r e be of some relevance to both p r a c t i t i o n e r s and academics. To achieve t h i s undertaking, an extensive review of p e r t i n e n t l i t e r a t u r e i n the f i e l d of urban economic development was drawn from North America and Europe. Arguments w i t h i n the debate on p o l i c y and p r a c t i c e i s s u e s were d e l i n e a t e d and s y n t h e s i s e d i n t o a l o g i c a l framework. This s t r u c t u r e d , a n a l y t i c overview permitted the f o r m u l a t i o n of p r i n c i p l e s or g u i d e l i n e s . Contemporary economic turbulence b r i n g s with i t a need f o r an improved a n a l y t i c p e r s p e c t i v e f o r l o c a l economic p o l i c y p l a n n i n g . Rapid change and d e c l i n e i n the urban space economy i s a s s o c i a t e d with macro f o r c e s and processes. Although c y c l i c a l dynamics are important to l o c a l economies, s t r u c t u r a l f a c t o r s are more r e l e v a n t to l o c a l economic pla n n e r s . Chapter two t h e r e f o r e focusses on s p a t i a l and s e c t o r a l r e s t r u c t u r i n g , and examines the nature and extent of s h i f t s o c c u r i n g i n the space economy and the impacts upon l o c a l economies. As we move from o b s e r v a t i o n to d i a g n o s i s to p r e s c r i p t i o n consensus d i s s o l v e s r a p i d l y . Trends can be v e r i f i e d o b j e c t i v e l y but i n terms of theory t h e i r i n t e r p r e t a t i o n i s wide open. There are many a n a l y t i c p e r s p e c t i v e s which r e s u l t i n v a r i a t i o n s i n approach to p o l i c y making. Chapter three examines the very d i f f e r e n t approaches and d e l i n e a t e s the o b j e c t i v e s and assumptions behind each. Because i t i s necessary to e s t a b l i s h the degree of success or f a i l u r e of p a r t i c u l a r s t r a t e g i e s , i n chapter four a -15- q u a l i t a t i v e a n a l y s i s addresses the i m p l i c a t i o n s of r e s t r u c t u r i n g f o r s p e c i f i c p o l i c i e s d i r e c t e d at promoting the l o c a l economy. Only a ' c o a r s e - l e v e l ' e v a l u a t i o n of the options i s undertaken. A f u l l examination i s precluded by the p a u c i t y of e v a l u a t i v e s t u d i e s as w e l l as the l i m i t e d scope of t h i s t h e s i s . A modest ambition i s to attempt a t e n t a t i v e understanding of the s t r e n g t h s and weaknesses of v a r i o u s s t r a t e g i c options i n l i g h t of ongoing r e s t r u c t u r i n g . Chapter f i v e focusses on implementation, p a r t i c u l a r l y the need f o r improved c o o r d i n a t i o n and c o o p e r a t i o n . I n t e r n a l and e x t e r n a l l i n k s are d i s c u s s e d i n terms of the corporate or i n t e g r a t e d approach to s t r a t e g i c economic p o l i c y planning at the l o c a l l e v e l . I t h i g h l i g h t s the impact of emerging l o c a l economic planning upon t r a d i t i o n a l urban planning and d i s c u s s e s the changing r o l e f o r p l a n n e r s . A b r i e f argument i s made f o r a f u t u r e r e g e n e r a t i v e r e g i o n a l p o l i c y which b u i l d s on and i n c o r p o r a t e s urban economic i n i t i a t i v e s w i t h i n a s u b - n a t i o n a l s p a t i a l p o l i c y framework. In the c o n c l u d i n g chapter, the main p o i n t s d i s c u s s e d w i t h i n the text are summarised and a set of p r i n c i p l e s or g u i d e l i n e s f o r improving urban economic p o l i c y planning proposed. -16- CHAPTER 2 DYNAMICS AND TRENDS 2.1 Introduction Prevailing trends indicate a r a d i c a l and profound change occuring in the urban space economy. The scale, pace and complexity of economic change i s unparalleled in recent history. Because l o c a l economies are increasingly integrated into the larger economic system, the root cause of economic change can be traced d i r e c t l y to the national and international l e v e l s . It i s impossible to explain to explain events today in purely l o c a l terms, rather they must be related to the dynamics of the wider environment (Massey and Meegan 1978). In addition, the processes at work are not only cumulative but highly complex. "Major transformations are at work in the way we produce... from an increasing application of c a p i t a l and technology to the production process which i s fundamental and well recognised... to changes in the organisational and i n s t i t u t i o n a l arrangements of the private sector" Stanback et al 1981:48. Furthermore, not only i s the interaction of long-term structural factors a very complex process but the persistent downturn serves to compress the rate of change. This rapid change in the nature and functions of c i t i e s i s seen by Gottmann as more than just mere growth or evolution but a 'metamorphosis', and this altered context gives r i s e to a new set of urban problems not previously experienced, especially -17- those r e l a t i n g to i n d u s t r i a l decline and job loss. The qu a l i t a t i v e change also serves to compromise many of the notions held about urban dynamics. There are major differences between i n d u s t r i a l and post-industrial development which threatens the i n t e g r i t y of e a r l i e r theories and models. Former policy remedies have become undermined by the mismatch between old theory and the new pattern of economic development. Contemporary c i t y problems are driven, then, by broad and fundamental structural and technological changes occuring in the national and international economies (Shapira 1981). The i d e n t i f i c a t i o n of ef f e c t i v e and appropriate p o l i c i e s therefore requires a thorough understanding of dynamics in the space economy because this i s the context for urban economic change. Economic policy planners at the urban le v e l must attempt to develop a coherent perspective on the dynamics underway in l o c a l economies, and devise p o l i c i e s that r e f l e c t or at least acknowledge these 'new economic r e a l i t i e s ' . The univ e r s a l i t y of basic forces and trends i s of analytic interest for the strategic planning of urban areas in quite different j u r i s d i c t i o n s . There now follows a condensed overview of broad developmental forces and processes shaping urban economic change, and resulting problems and issues associated with this change. In other words, cause and effect of the considerable flux found in the urban space economy w i l l be delineated within l i m i t s imposed by the state of current theory. Fundamental change in the space economy can be traced to -18- es s e n t i a l l y two factors: sustained technological developments and increased concentration and c e n t r a l i s a t i o n of c a p i t a l . These in turn are producing changes in the structure of the economy and the location of economic a c t i v i t y , and in employment and central place functions (adapted from Shapira and Leigh-Preston 1984). 2.2 Structural Change The economy i s being rapidly restructured away from goods production to services both r e l a t i v e to the service sector in the domestic economy and r e l a t i v e to manufacturing overseas in the newly-industrialised countries. In 1962, the manufacturing sector in the U.S., including construction and mining accounted for 36.5% of t o t a l non-farm employment, while service-performing a c t i v i t i e s (trade, finance, insurance, real estate, government) accounted for 56.5%. By 1978 the former had f a l l e n in r e l a t i v e size to 29% of t o t a l employment while the l a t t e r had grown to 65.3% (Haren and Holling quoted in Shapira et a l 1984). Manufacturing i s now in decline in c i t i e s across a broad i n d u s t r i a l spectrum. The process of manufacturing decline in employment and output has been coined ' d e i n d u s t r i a l i s a t i o n ' and refers to the dismantling of basic industries and t r a d i t i o n a l manufacturing in older c i t i e s and regions of advanced i n d u s t r i a l countries (Bluestone and Harrison 1982). It therefore concentrates on manufacturing firms in 'core' areas (Townsend 1983). Aging i n d u s t r i a l c i t i e s are impacted adversely by such change because h i s t o r i c a l l y they contained the bulk of manufacturing industry vulnerable to such restructuring. -19- The loss of manufacturing capacity i s accompanied by a s h i f t to the service economy. Stanback (1979) notes a fantastic growth in services, p a r t i c u l a r l y producer services. However, the r i s e of services i s widely misunderstood. Stanback et a l (1981) d i f f e r e n t i a t e freestanding consumer services amenable to standardisation to achieve scale economies, public services, those for consumption or f i n a l demand tied in with product d i f f e r e n t i a t i o n , and producer services as an intermediate input to goods production. The central d i s t i n c t i o n between services to consumers and business, though important, i s not well appreciated. With respect to the growth in consumer services, Ley (1983) observes the emergence of a 'culture of consciousness' comprising l i f e s t y l e i d e n t i t y , the amenity ethic, aesthetics and sensuous products accompanied by a growing 'quaternary e l i t e ' with considerable disposable income that translates into expanding real demand for personalised services. The growth of producer services, on the other hand, i s associated with larger markets and corporations in which an increasing burden in terms of administration, marketing, legal services etc. leads to a demand for specialised business services. Producer services therefore play a fundamental role in binding together or integrating increasingly d i f f e r e n t i a t e d and specialised market functions. The nature of sectoral linkages between o f f i c e s and factories tends to be obfuscated because of the f a i l u r e to distinguish between service output and employment, and this has -20- led to false notions about the extent of decline in the goods production sector (Noyelle 1983). Industry has simply become more dependent on the service infrastructure, p a r t i c u l a r l y producer services which are very important in terms of productivity growth and market expansion (Hirschhorn 1979). Gottmann anticipates the growing significance of information linkages among major quaternary c i t i e s carrying out commercial transactions, and a weakening of the t r a d i t i o n a l relationship between the central business d i s t r i c t and i t s hinterland market. New inter-metropolitan s p a t i a l linkages are developing within what he terms the 'Neo-Alexandrine' urban system. Interestingly, services are now a c r u c i a l element in the export base of many larger urban economies such as New York and London. The r i s e of services i s seen to affect c i t i e s unevenly - the result being a f o u r - t i e r urban system comprised of: d i v e r s i f i e d , advanced (or high order) service centres; specialised, advanced service centres; production centres; and consumer-oriented centres (Noyelle 1983). 2 . 3 Spatial Shifts Trends in the structural transformation of urban economies are paralleled by fundamental s p a t i a l s h i f t s . F i r s t , a new geographical pattern of economic a c t i v i t y i s emerging in which a sweeping interregional s h i f t in both jobs and population is taking place. For instance, a dramatic s h i f t has occured in production c a p i t a l and labour from the ' f r o s t b e l t ' in the North and North-Eastern United States to the 'sunbelt' in the South -21- and West (Sternlieb and Hughes 1977). Another example would be the s h i f t from the North and North-West to the South and West in the U.K. ( F o t h e r g i l l and Gudgin 1982). Population outmigration and economic decline appear to be mutually sustaining and cumulative; that i s , they interact to produce a ' s p i r a l of disinvestment' (Young and M i l l s 1982). Second, in addition to interregional dispersal, production capacity, p a r t i c u l a r l y heavy industry and t r a d i t i o n a l manufacturing, i s transferring overseas ( B e l l 1980). The international s p a t i a l d i v i s i o n of labour i s seen responsible for gradually reshaping the entire global economy as comparative advantage migrates to countries of cheaper labour (Shapira and Leigh-Preston 1984a). Third, a focus on the more dramatic interregional and international s h i f t s tends to obscure events occuring within regions. Generally speaking, intraregional decentralisation of manufacturing and low-order services from the central c i t y to the urban f i e l d or smaller urban centres tended to precede the larger s p a t i a l moves. Vigorous growth in suburban economies i s , with the exception of major conurbations such as London and Paris, a f a i r l y recent phenomenon ( P h i l l i p s and Vidal 1983). 2.4 Explanations Evidence over the s h i f t i n g equilibrium of centrifugal and centripetal forces operating on the urban space economy i s inconclusive at the present time. Certainly, the s p a t i a l adjustment process for the urban economy i s very complex. Technological advances permit a loosening of both h i e r a r c h i c a l -22- and s p a t i a l l i n k a g e s w i t h i n l a r g e r f i r m s . The ' s p l i t t i n g ' of o f f i c e f u n c t i o n s i n p a r t i c u l a r means that l a r g e f i r m s ' f u n c t i o n a l l y d i f f e r e n t i a t e d u n i t s are i n c r e a s i n g l y s p a t i a l l y separated (Pred 1976). Suburbanisation of o f f i c e a c t i v i t y i s t h e r e f o r e due i n l a r g e part to the ' s p a t i a l r u p t u r e ' between r o u t i n e c l e r i c a l and non-routine management o f f i c e jobs, and r e s u l t s i n a new lease of l i f e f o r the urban p e r i p h e r y . T r a d i t i o n a l arguments f o r proxim i t y such as b e n e f i t s of i n t e r f i r m l i n k a g e s c o n s t i t u t e the 'glue' of c e n t r i p e t a l a t t r a c t i o n . Yet i f these arguments no longer hold true f o r many i n d u s t r i e s and f i r m s , the c i t y ' s l o c a t i o n a l advantage c o l l a p s e s and the urban economy becomes 'unglued'. T e c h n o l o g i c a l developments enhance the a b i l i t y to g e o g r a p h i c a l l y r e l o c a t e c e r t a i n production a c t i v i t i e s by r a p i d l y e l i m i n a t i n g or a t t e n u a t i n g the s i g n i f i c a n c e of pr o x i m i t y . The in f o r m a t i o n i n d u s t r y i n p a r t i c u l a r i s touted as being f r e e of s p a t i a l c o n s i d e r a t i o n s . Information technology i s , then, making firms more ' f o o t l o o s e ' and l e s s r e l i a n t on p h y s i c a l inputs and l i n k a g e s . F o r t u n a t e l y , many non-routine management and c o n t r o l f u n c t i o n s remain r e s i s t a n t to s t a n d a r d i s a t i o n . A l s o , technology can never t o t a l l y e l i m i n a t e the need f o r d i r e c t personal c o n t a c t . The c e n t r i p e t a l e f f e c t of the 'communications r e v o l u t i o n ' prematurely discounts the c o n t i n u i n g need f o r ' f a c e - t o - f a c e ' contact i n the t r a n s a c t i o n a l s e r v i c e s . Furthermore, the i n t e r a c t i o n of s o c i a l , c u l t u r a l and e d u c a t i o n a l f a c t o r s e x e r t s a c o n s i d e r a b l e c e n t r a l i s i n g -23- i n f l u e n c e , and t h i s 'ephemeral urban m i l i e u ' may perhaps be more important than proxi m i t y b e n e f i t s i n l o c a t i o n d e c i s i o n s . An important d i s t i n c t i o n should be made between the newer 'strong c e n t r e ' c i t i e s such as Toronto, S e a t t l e and Vancouver and older ones where urban diseconomies abound. I t i s h i g h l y u n l i k e l y economic a c t i v i t y w i l l abandon the c e n t r a l c i t y en masse because the l o c a t i o n a l p r o p e n s i t y of quaternary s e r v i c e s i s the reverse of that f o r manufacturing. The former, because they e x h i b i t strong l o c a t i o n a l c e n t r a l i t y , are r a p i d l y becoming the r e s i d u a l c e n t r a l place f u n c t i o n . The c e n t r a l business d i s t r i c t continues to demonstrate s i g n i f i c a n t a t t r a c t i o n f o r producer and e x p o r t - o r i e n t e d s e r v i c e s . S p a t i a l agglomeration f o r c e s p r e v a l e n t i n the 'core' continue to f o s t e r or 'incubate' as w e l l as concentrate s e r v i c e s e c t o r growth. Although the trend toward c e n t r a l c i t y d e c l i n e and ' f r i n g e ' growth i s mirrored worldwide (Edgington 1982), perhaps i t i s going too f a r to suggest as some commentators do a ' s u b u r b a n i s a t i o n ' of economic a c t i v i t y , f o l l o wed by f u r t h e r p o p u l a t i o n s h i f t s . As Lewis Mumford reminds us - ' t r e n d i s not d e s t i n y ' - there i s c o n s i d e r a b l e f l u x i n the urban space economy and p r e c i s e outcomes are u n c e r t a i n at t h i s time. Whatever the outcome of t h i s i n t r a r e g i o n a l d e c e n t r a l i s a t i o n , the changing ch a r a c t e r of the suburbs r e f l e c t s a new economic independency which s e r i o u s l y compromises e a r l i e r models. Up u n t i l about a h a l f century ago, the economic a n a l y s i s of authors such as Smith, Ricardo and Marx was c h i e f l y concerned with aggregated market behaviour or with n a t i o n a l economic - 2 4 - behaviour. A need arose, however, to develop a theory of the f i r m when businesses became more complex. This micro theory emerged to deal with every aspect of f i r m behaviour i n markets - i t i s p r i m a r i l y a theory of markets, and purports to e x p l a i n the way resources are a l l o c a t e d by a p r i c e system. The theory of the f i r m analyses how o b j e c t i v e s are determined i n a business o r g a n i s a t i o n , and the r e a c t i o n of firms to changes i n the environment. U n f o r t u n a t e l y , f i r m behaviour can no longer be explained purely i n terms of t r a d i t i o n a l economics. The theory must be c o n s t a n t l y developed to accommodate r e a l i t y and thereby enhance i t s p r e d i c t i v e r e l i a b i l i t y . The r e v i s i o n of the theory of the f i r m can be t r a c e d to growth i n f i r m s i z e and changes i n market s t r u c t u r e . Increased c o n c e n t r a t i o n means the predominance of o l i g o p o l y as a market form, and l a r g e r businesses means a d i v o r c e between ownership and c o n t r o l as s i z e a f f e c t s the p o s i t i o n of s a l a r i e d management to s h a r e h o l d e r s . T r a d i t i o n a l assumptions with respect to the theory of the f i r m are, then, becoming undermined. Changes must be made to m o t i v a t i o n assumptions and i n the a n a l y s i s of the d e c i s i o n making process (Howe 1978). Simple p r o f i t maximisation no longer a p p l i e s ; other goals such as s a l e s maximisation, asset growth and the search f o r new markets must be s u b s t i t u t e d . Managerial t h e o r i e s of the f i r m are, then, premised more on s a t i s f i c i n g as opposed to maximising behaviour. In a d d i t i o n , the s o - c a l l e d b e h a v i o u r a l --theories c o n t a i n no preconceived notion of corporate goals, and i n s t e a d focus on the process by which goals are a r r i v e d a t . Large -25- firms are e s s e n t i a l l y a c o a l i t i o n of management, shareholders, bank len d e r s and employees, and i n group d e c i s i o n making c o n f l i c t r e s o l u t i o n and c o n s e n s u s - b u i l d i n g or compromise are important. Rooted i n o r g a n i s a t i o n a l theory, however, the b e h a v i o u r a l theory has a poor p r e d i c t i v e a b i l i t y . The idea of each i n d i v i d u a l f i r m i n an a t o m i s t i c market maximising p r o f i t by i n c r e a s i n g output of i t s s i n g l e product u n t i l marginal cost i s equal to marginal revenue must now be d i s c a r d e d . U n f o r t u n a t e l y , a c o n s i d e r a b l e problem with the newer approaches i s that there i s no longer a s i n g l e general theory of the f i r m . The a l t e r n a t i v e to n e o - c l a s s i c a l theory i s , according to one author, a 'seemingly endless array of t h e o r i e s , i n d i v i d u a l l y persuasive but o f t e n mutually c o n t r a d i c t o r y ' . Returning to the d e i n d u s t r i a l i s a t i o n debate, a key i s s u e i s how f a r d i s m a n t l i n g of b a s i c i n d u s t r i e s and manufacturing i s a t t r i b u t a b l e to net c l o s u r e s of firms and how f a r to moves to more favo u r a b l e business c l i m a t e s . With r e s p e c t to r e l o c a t i o n , an e x p l a n a t i o n f o r the changing l o c a t i o n a l p references of manufacturing p l a n t s was put forward by Norton and Rees (1979). According to t h e i r product c y c l e theory, production develops to a mature r o u t i n i s e d stage at which point i t becomes more p r o f i t a b l e to move the p l a n t to a cheaper l o c a t i o n . However, t h i s 'seed bed - s p i n o f f - h i e r a r c h i c a l f i l t e r i n g ' model i s c r i t i q u e d by many as nothing more than p r i m i t i v e e x t r a p o l a t i o n . A b e t t e r e x p l a n a t i o n f o r the e j e c t i o n of i n d u s t r y from the c i t y i s changing comparative c o s t s which i n c r e a s i n g l y favour n o n - c e n t r a l l o c a t i o n s . D e c e n t r a l i s a t i o n i s a strong process. The -26- tendency to disperse i s accentuated by powerful market forces such as the r e l a t i v e l y high cost of land and taxes in the central c i t y , the shortage of suitable premises, inadequate s i t e access, obsolete premises, i n t e r n a l i s a t i o n of scale economies and linkages, and a f a l l in r e l a t i v e costs of transportation (Lawless 1981). Simi l a r l y , there are ' p u l l ' as well as 'push' factors involved in relocation. The reduced demand for c e n t r a l i t y can be traced to lower density and labour costs, tax concessions, and weaker environmental controls in 'greenfield' s i t e s . But i t i s centrifugal forces, p a r t i c u l a r l y the cumulative effect of congestion costs and assorted diseconomies which strongly encourage dispersal and decentralisation of manufacturing from the c i t y 'core 1. In addition, government p o l i c i e s have tended to augment trends stimulated by market forces. City land use p o l i c i e s , for example, have tended to i n h i b i t i n d u s t r i a l growth by discriminating in favour of higher uses such as housing and amenities. Net closure comprises a balance of births and deaths of enterprises. T r a d i t i o n a l l l y , the i n d u s t r i a l c i t y served as 'seed bed' for new firms but l a t e l y seems to be f a l t e r i n g in this 'incubator 1 r o l e . Industrial c i t i e s have suffered a serious f a l l in their ' i n d u s t r i a l f e r t i l i t y ' (Young and M i l l s 1982). As far as o v e r a l l metropolitan i n d u s t r i a l decline i s concerned, the drop in the birth rate i s less s i g n i f i c a n t than the r i s e in the death rate. Small business in particular i s observed to have both a high b i r t h and death rate but closures -27- and i n s i t u c o n t r a c t i o n s are dimly understood. This i s unfortunate because Keeble's e m p i r i c a l evidence f o r London, England, which i s probably a p p l i c a b l e elsewhere, f i n d s net c l o s u r e has i t over r e l o c a t i o n by a r a t i o of 3:1. In c o n t r a s t to the more con v e n t i o n a l e x p l a n a t i o n s , Scott (1982a, 1982b) attempts a comprehensive theory of urban economic change from the h i s t o r i c a l m a t e r i a l i s t p e r s p e c t i v e . His focus i s on commodity production as the primary element i n the o r g a n i s a t i o n of the space economy, while (perhaps too r e a d i l y ) d i s m i s s i n g mainstream approaches as too f o r m a l i s t i c and s i m p l i s t i c . In S c o t t ' s view 'push' and ' p u l l ' f a c t o r s are regarded as s u b s i d i a r y to the primary r e c o n s t r u c t i o n f o r c e , and the product c y l e theory i s "an unfortunate metaphor that conceals a n a l y s i s of c l u s t e r i n g , l i n k a g e dynamics and l o c a l labour m a r k e t s . . . i t prematurely f o r e c l o s e s i n v e s t i g a t i o n of more ba s i c i s s u e s " (1984b:194). In t h i s p e r s p e c t i v e , i t i s goods production that d r i v e s forward and shapes the s t r u c t u r e and c h a r a c t e r of the contemporary c i t y . D i s p e r s a l and d e c e n t r a l i s a t i o n of manufacturing, as w e l l as s e r v i c e s e c t o r growth, are explained purely i n terms of the ' d r i v e f o r p r o d u c t i v i t y 1 which i n v o l v e s an i n c r e a s i n g a p p l i c a t i o n of both c a p i t a l and technology to the production process, as w e l l as changes i n the o r g a n i s a t i o n a l and i n s t i t u t i o n a l arrangements of the p r i v a t e s e c t o r . C a p i t a l i n t e n s i f i c a t i o n f o r the purpose of plant r a t i o n a l i s a t i o n i s , then, a normal part of i n d u s t r y ' s e v o l u t i o n . -28- The fundamental r e s t r u c t u r i n g taking place i s seen by many as s i g n i f y i n g the advent of p o s t - i n d u s t r i a l s o c i e t y . The p o s t - i n d u s t r i a l order i s p r i m a r i l y a knowledge and information-based s o c i e t y c h a r a c t e r i s e d by " i n t e l l e c t u a l technology and science-based i n d u s t r i e s that d e r i v e from the c o d i f i c a t i o n of t h e o r e t i c a l knowledge" ( B e l l 1980:237). Proponents of p o s t - i n d u s t r i a l i s m a s s e r t that we f a c i l i t a t e the i n f o r m a t i o n and s e r v i c e economy, and i n s t e a d of r e i n d u s t r i a l i s i n g prepare f o r the next 'long wave'. In s h o r t , we are urged to embrace the ' t e c h n o l o g i c a l r e v o l u t i o n ' i n telecommunications, computing and t r a n s p o r t . Such t e c h n o l o g i c a l advances are, however, having f a r - r e a c h i n g consequences (H.omenuck 1982), and these w i l l be d i s c u s s e d below. 2 .5 Employment and Community E f f e c t s Thus f a r , the d i s c u s s i o n has r e v e a l e d l i t t l e about the human dimension a s s o c i a t e d with r e s t r u c t u r i n g . The t r a n s i t i o n to the p o s t - i n d u s t r i a l order portends q u a l i t a t i v e and o c c u p a t i o n a l s h i f t s i n the employment s t r u c t u r e , as w e l l as d e t e r i o r a t i n g employment o p p o r t u n i t i e s . The tendency to s u b s t i t u t e c a p i t a l f o r labour i n goods p r o d u c t i o n , which the 'recovery' only a c c e l e r a t e s , i s r e s u l t i n g i n s u b s t a n t i a l 'blue c o l l a r ' job l o s s . In a d d i t i o n to t e c h n o l o g i c a l displacement, the d e c l i n e of manufacturing i n general i s reducing the o v e r a l l l e v e l of f a c t o r y employment. With res p e c t to primary i n d u s t r y , ' s t r e a m l i n i n g ' during the r e c e s s i o n has meant a shedding of labour. MacMillan B l o e d e l , f o r example, has 'dumped' 3,100 employees i n B.C. i n the past couple of years (Globe and M a i l -29- Report on Business 1000, June 1984). Though o f f i c e work has t r a d i t i o n a l l y f i l l e d the vacuum created by the erosion in i n d u s t r i a l employment, this i s not necessarily a benign development for employees concerned because of the number of low quality jobs created in the service sector. Factory work tends on the whole to be well paid but the new jobs created in services are, except for managerial and professional positions, not equal to those lost in manufacturing. In other words, we are losing 'good1 jobs but gaining 'bad' ones. Within the service sector a dual or two-tier labour market i s evolving in which jobs are polarised in terms of earnings, s k i l l - l e v e l , status, security, s a t i s f a c t i o n and opportunity for carrer advancement or upward mobility (Stanback 1979, Davis and Hutton 1981). Generally speaking, within the labour market overall the middle ground i s gradually disappearing (Homenuck 1982), and this 'vanishing middle' i s associated with both increased segmentation and inequity (Kuttner 1983). Furthermore, i t i s no longer correct to assume that the service sector w i l l continue to act as an 'employment l i f e l i n e ' for an a i l i n g labour market. The service sector i s unlikely to continue to absorb labour 'shaken out' or shed from manufacturing at the same rate as i t has done in the past because of a combination of slowdown in growth and the rapid application of technology to service industries. Daniels (1983) observes that services sector growth has in fact f a i l e d to offset quantitatively manufacturing job loss in the U.K. -30- A vigorous period of r a t i o n a l i s a t i o n l i e s ahead for the service sector and i t i s l i k e l y that in the process many existing service jobs w i l l be eliminated. In pursuit of greater e f f i c i e n c y and productivity the service sector i s also in the process of disengaging workers, p a r t i c u l a r l y low s k i l l , routine o f f i c e work which i s subject to automation. Once services are standardised, the potential for u t i l i s i n g technology grows. For those fortunate enough to avoid displacement there i s the prospect of d e s k i l l i n g to the l e v e l of 'machine minders', and for a lucky few greater s p e c i a l i s a t i o n w i l l indeed require further t r a i n i n g . Capital deepening i s occuring not only in physical but also human terms. However, investment in human resources for the purpose of s k i l l i n t e n s i f i c a t i o n w i l l probably be very limited in scope and thus we are unlikely to see a massive 'professionalisation of the workforce' materialise. In sum, c a p i t a l i n t e n s i f i c a t i o n and new technology are al t e r i n g the character of work i t s e l f . Intense r a t i o n a l i s a t i o n i s l i k e l y to sustain a low growth economy but this may well prove to be a 'jobless growth', offering l i t t l e r e l i e f to the unemployed. Temporary job creation schemes involving public expenditures are widely regarded as no more than 'make work p a l l i a t i v e s ' and a 'band ai d ' solution to the problem. In addition, proposals for work-sharing and early retirement to reduce the workforce have not been well received and are encountering many c u l t u r a l and p o l i t i c a l obstacles. The prospects are indeed quite dim for technologically i l l i t e r a t e persons (or 'techno-peasants') seeking employment in -31- growth areas. The major victims in a l l probability w i l l be the t r a d i t i o n a l l y disadvantaged with the problem of medium-term unemployment being especially serious for youth. There i s a si g n i f i c a n t body of l i t e r a t u r e documenting the substantial negative s o c i a l , psychological and health effects associated with protracted periods of unemployment for in d i v i d u a l s . C i t i e s and towns can also be 'victims' of restructuring. Wholesale plant closings are observed to devastate the economic and s o c i a l fabric of entire communities. Well established linkages are severed when the dominant industry closes or relocates, and negative m u l t i p l i e r effects can d r a s t i c a l l y reduce the employment and tax base putting a ' f i s c a l squeeze' on the town in question. The nature and extent of human and economic costs caused by the abandonment of whole communities by private c a p i t a l through 'capital f l i g h t ' or disinvestment i s well documented by Bluestone and Harrison. 2.6 Concentration and Centralisation of Capital An alternative framework to the post-industrial perspective on economic change exists which concentrates on the private corporate sector. Concentration and c e n t r a l i s a t i o n of c a p i t a l , which accelerated rapidly during the 1960s as a result of vigorous merger and acquisition a c t i v i t y , continues to this day a l b e i t at a slower pace. In 1960, Fortune's top 200 corporations lay claim to 54.5% of a l l U.S. mining and i n d u s t r i a l assets and 44.7% of sales, by 1977 this had grown to 62.4% of assets and 66.6% of sales (U.S. Department of Justice quoted in Shapira and -32- Leigh-Preston 1984a). Of companies making up the Toronto Stock Exchange 300 Composite Index, 9 'super r i c h ' families or individuals own shares with a market value of around $9 b i l l i o n out of a t o t a l index value of about $80 b i l l i o n . However, they control more than half of the value of shares, and much of the wealth represented was accumulated by acquisition and manipulation of companies rather than by innovation and production (Globe and Mail, 25:8:1984 B l ) . With respect to changing corporate structure, large domestic corporations have been transformed into multinational companies whose interest in worldwide expansion and d i v e r s i f i c a t i o n has 'internationalised' the business system. The multinational i s now a major actor in the international economy through i t s a b i l i t y to plan and organise production, d i s t r i b u t i o n and financing on a global basis. Corporate concentration and c e n t r a l i s a t i o n bears a s t r i k i n g relationship with sectoral and occupational change and with uneven s p a t i a l development (Blakely and Shapira 1984). Because urbanism and economic development are h i s t o r i c a l l y correlated, c e n t r a l i s a t i o n of corporate control in major business centres stimulates both the development of key c i t i e s and white c o l l a r employment. Urban functions l i e predominantly in the quaternary and quinary sectors as centres of control and command in the mixed economy (Young and M i l l s 1982). At the same time, concentration of business a c t i v i t y in large corporations has enhanced the capacity to s h i f t economic a c t i v i t y geographically to the 'periphery'. The process of -33- disinvestment from older i n d u s t r i a l centres i s f a c i l i t a t e d by the increased mobility and concentration of private c a p i t a l (Massey and Meegan 1978, Bluestone and Harrison 1982). Simmie (1983) goes as far as to suggest that in advanced countries, the s p a t i a l hierarchies of c i t i e s are a function of the location of parts of the organisational hierarchies of the multinationals. The result of concentration and c e n t r a l i s a t i o n of c a p i t a l being uneven s p a t i a l development characterised by a metropolitan 'core* containing corporate headquarters; a dependent, rapidly i n d u s t r i a l i s i n g semi-periphery; and a struggling primary periphery (Friedman and Wolff 1982). At the metropolitan l e v e l , the core-periphery relationship i s inverted with problems of inner c i t y decline and suburban growth. -34- CHAPTER 3 VARIATIONS IN APPROACH TO URBAN ECONOMIC POLICY PLANNING 3.1 Introduction The preceeding chapter discussed powerful dynamics and forces underlying contemporary urban economic change. This chapter w i l l now examine the response by urban authorities to problems presented by dramatic s h i f t s occuring in the space economy. In any fundamental change such as taking place now there are elements of c o n f l i c t and choice. Alternative policy packages comprising progressive i n i t i a t i v e s exist which, rather than acquiesce, prefer to 'flow against the t i d e ' of powerful market forces and the national policy thrust. Undeniably, there are diff e r e n t schools of thought on events in terms of both interpretation (diagnosis) and policy prescription. This requires some explanation. Economic policy planning i s not only a technical exercise but also a p o l i t i c a l a c t i v i t y : the currency of technics being facts and the currency of p o l i t i c s being values (Solesbury 1974). Policy at the l o c a l l e v e l i s therefore an expression of both facts and values. The respective roles of the public and private sectors i s in particular very much an ide o l o g i c a l question. There exists a wide range of opinion on the nature of problems and their solutions. Some suggest that we f a c i l i t a t e the t r a n s i t i o n to post-industrial society and ride 'the waves of the future' oblivious to the costs. Others take a more skeptical outlook, pointing out the consequences involved and indicating the need to compensate and protect. Another group are far more -35- c r i t i c a l of the changes t a k i n g place and o f f e r r e s i s t a n c e to the dominant tr e n d s . C l a s s i f i c a t i o n s can be very u s e f u l i n b r i n g i n g coherence to an otherwise mixed bag of viewpoints and p o l i c y i n i t i a t i v e s . The c o n s e r v a t i v e / l i b e r a l / s o c i a l i s t typology f i r s t e l u c i d a t e d by North and Leigh (1983) with r e s p e c t to l o c a l economic development planning i s a u s e f u l one because of i t s general v a l i d i t y . I t w i l l be used now to examine the wide v a r i a t i o n s i n approach to urban economic development. S p e c i f i c a l l y , the aim here i s to d e l i n e a t e the p o l i t i c a l philosophy or i d e o l o g i c a l base, assumptions and b i a s e s , the r o l e of the p r i v a t e and p u b l i c s e c t o r s , and s t r a t e g y m a n i f e s t a t i o n s contained w i t h i n each approach. 3.2 The Conservative Approach Conservative a d m i n i s t r a t i o n s pursue the imperatives of r a t i o n a l i s a t i o n and recovery. The 'butter-and-guns' approach to f i n a n c i n g the Vietnam war followed by the two OPEC ' o i l shocks' f u e l l e d i n f l a t i o n worldwide so that by the mid-1970s Keynesian-led economic growth became exhausted. The twin e v i l s of i n f l a t i o n and r e c e s s i o n combined i n t o ' s t a g f l a t i o n ' and t h i s became recognised as the number one problem. I t a l s o became i n c r e a s i n g l y necessary to address poor p r o d u c t i v i t y performance and low e f f i c i e n c y which weakened i n t e r n a t i o n a l c o m p e t i t i v e n e s s . Conservative a d m i n i s t r a t i o n s t h e r e f o r e duly f o l l o w monetary p o l i c i e s at the macro l e v e l and implement s e c t o r a l p o l i c i e s to f a c i l i t a t e r e s t r u c t u r i n g at the micro l e v e l . -36- According to c o n v e n t i o n a l a n a l y s i s , then, r a t i o n a l i s a t i o n and disinvestment are widely regarded as necessary components of a dynamic economic system. I n t e r e s t i n g l y , the r e c e s s i o n i n 1979 gave added impetus to these processes and t e c h n o l o g i c a l change w i t h i n i n d u s t r y a c c e l e r a t e d . Regeneration of the economy i n t h i s view i s synonymous with r e v i t a l i s a t i o n of the p r i v a t e s e c t o r . In other words, the p r i v a t e s e c t o r i s the 'motor* of r e v i v a l and p r i v a t e f r e e e n t e r p r i s e i s to be given more autonomy or 'room to f l y 1 . The b e l i e f i n the 'magic of the marketplace' can be t r a c e d to the ' i n v i s i b l e hand' of the c l a s s i c a l economist Adam Smith and to n e o - c l a s s i c a l f r e e f a c t o r flows to achieve e q u i l i b r i u m . The market-based approach i s t h e r e f o r e c o n s i s t e n t with both monetarism and l a i s s e z - f a i r e economic d o c t r i n e . Because autonomous market f o r c e s i n h e r e n t l y serve the p u b l i c good, no r e a l need i s seen f o r s i g n i f i c a n t State i n t e r v e n t i o n or p l a n n i n g . Indeed, government i s urged not to impose on the market but 'get o f f the back of b u s i n e s s * . In p a r t i c u l a r , government should stay out of the business of p i c k i n g winners and l o s e r s . Where p u b l i c s e c t o r involvement i s deemed necessary, r e s p o n s i b i l i t y l i e s p r i m a r i l y with s e n i o r government. L o c a l a u t h o r i t y involvement i n economic development can best be summed up as 'benign n e g l e c t ' . In t h i s p e r s p e c t i v e there i s an a c t i v e b i a s a g a i n s t p u b l i c ownership and d i r e c t i n t e r v e n t i o n . A minimal r o l e i s envisaged f o r the p u b l i c s e c t o r ; one that i s e s s e n t i a l l y p a s s i v e and i n d i r e c t . Government must cre a t e a 'good business c l i m a t e ' - 3 7 - c o n d u c i v e t o b u s i n e s s e n t e r p r i s e a n d i n v e s t m e n t b y r e m o v i n g o b s t a c l e s t o g r o w t h a n d p r o v i d i n g i n c e n t i v e s . T h i s u s u a l l y m e a n s c u t t i n g ' r e d t a p e ' a n d t a x e s , a n d d e r e g u l a t i o n . G o v e r n m e n t may a l s o a c t t o e n h a n c e t h e s u p p l y o f f a c t o r s o f p r o d u c t i o n , e s p e c i a l l y l a n d a n d c a p i t a l . A m a n i f e s t a t i o n o f t h i s a p p r o a c h c a n be f o u n d i n t h e E n t e r p r i s e Z o n e c o n c e p t . 3 . 3 T h e S o c i a l i s t A p p r o a c h A t t h e o p p o s i t e e x t r e m e o f t h e i d e o l o g i c a l s p e c t r u m i s t h e c o l l e c t i v i s t a p p r o a c h . I t i s u s u a l l y a s s o c i a t e d w i t h l e f t - w i n g L a b o u r C o u n c i l s i n m e t r o p o l i t a n a r e a s o f E n g l a n d , a n d c a n be f o u n d w h e r e u n e m p l o y m e n t i s c h r o n i c a n d t h e l o c a l e c o n o m i c b a s e i s i n d a n g e r o f c o l l a p s e . T h e s e u r g e n t n e e d s t r a n s l a t e i n t o r a d i c a l o b j e c t i v e s a n d p o l i c i e s . I n t h i s p e r s p e c t i v e , t h e p r i m a c y o f t h e m a r k e t i s r e j e c t e d . T h e e f f i c a c y o f t h e m a r k e t - o r i e n t e d a p p r o a c h p r e d i c a t e d u p o n g r o w t h a n d s u p p l y - s i d e f a c t o r s i s i n s e r i o u s d o u b t w h e n d e m a n d i s f a l l i n g . I n s t e a d , t h e r e i s a b e l i e f t h a t t h e l o c a l e c o n o m y h a s t h e p o t e n t i a l f o r s e l f - r e g e n e r a t i o n i f o n l y l o c a l s k i l l s a n d r e s o u r c e s c o u l d b e l i b e r a t e d . An i n t e r n a l ' b o o t s t r a p ' d e v e l o p m e n t p r o c e s s i s e m p h a s i s e d t h a t ' b u i l d s f r o m b e l o w ' . T h e r e a l e n g i n e o f g r o w t h i s n o t n a t i o n s o r r e g i o n s b u t c i t i e s ( E v a n s 1 9 8 3 , J a c o b s 1 9 8 3 ) . N o t i o n s o f s e l f - r e l i a n c e r e v e a l , p e r h a p s , t h e u t o p i a n - a n a r c h i s t o r i g i n s o f t h e p h i l o s o p h i c a l u n d e r p i n n i n g s . T h e r e i s a l s o a b e l i e f t h a t t h e r e s t o r a t i o n o f e c o n o m i c v i t a l i t y r e q u i r e s a f u n d a m e n t a l c h a n g e i n t h e o w n e r s h i p a n d c o n t r o l o f r e s o u r c e s . T h e a i m , t h e n , i s t o r e v i t a l i s e t h e u r b a n -38- economy under l o c a l control and determination (Shapira 1981). I n s t i t u t i o n a l reform i s deemed necessary to permit l o c a l p a r t i c i p a t i o n in and control over decision-making and the d i s t r i b u t i o n of p r o f i t s . The emphasis i s put on economic or workplace democracy and self-management (Taylor 1981). It i s preferred to base investment decisions on s o c i a l c r i t e r i a i d e n t i f i e d by workers and the community rather than the p r o f i t c r i t e r i a of private c a p i t a l . Restructuring the l o c a l economy to favour labour over c a p i t a l requires the r e d i s t r i b u t i o n of productive wealth as well as consumption. Rigorous intervention i s call e d for by the public sector. Local government i s to play a strong lead role in generating and supporting l o c a l economic and employment i n i t i a t i v e s . The strategy i s people-oriented and focusses on the existing economic base i . e . job conservation and creation and assistance to indigenous firms. The r a d i c a l approach has u t i l i t y in expanding the range of policy alternatives because of i t s experimental and ambitious attitude. Typical progressive i n i t i a t i v e s include the provision of grants and rates and rent subsidies, tapping new sources of c a p i t a l such as pension funds for direct selective investment, promoting worker cooperatives and other forms of common ownership enterprises, and procurement p o l i c i e s . 3.4 The L i b e r a l Approach This i s derived from Keynesian arguments about the role of the State in a mixed market economy which recognises market imperfections or f a i l u r e s and e x t e r n a l i t i e s . Concern i s -39- expressed for competition, e f f i c i e n c y and the need to adapt to future technology but this i s coupled with considerations of welfare and equity i . e . the mitigation of adverse consequences. There i s a modest role for government, then, as both reforming instrument and manager of the economy. Although some direct government intervention i s envisaged, those subscribing to this perspective b a s i c a l l y accept the existing structure of economic r e l a t i o n s . The public sector complements rather than competes with the private sector. There i s deep b e l i e f in cooperation and consensus. Ideally, a partnership of business, government and labour, as well as between the various levels of government, i s desired. There i s also a s o l i d b e l i e f in the need for a coordinated i n d u s t r i a l strategy to exploit market niches in which a country has world class strength and adopt new production technology to upgrade t r a d i t i o n a l industries. Typifying this approach, the Science Council of Canada has recently proposed an alaborate system of metropolitan technology councils in the country's 24 largest urban areas to break down barriers between business, labour and government (Globe & Mail 12:9:1984 B3). The neo-Keynesian approach i s more sophisticated and pro-active in i n d u s t r i a l development than the neo-conservative approach which i s seen as lacking in innovation and c r e a t i v i t y . Local government takes a more pragmatic view of i t s role in economic development and w i l l i d e n t i f y and overcome gaps in f i n a n c i a l , property and labour markets. It i s therefore involved -40- i n l a n d and p r e m i s e s p r o v i s i o n , f i n a n c i a l a s s i s t a n c e and b u s i n e s s a d v i s o r y s e r v i c e s . T h e r e i s more e m p h a s i s on employment g e n e r a t i o n t h a n was t r a d i t i o n a l l y t h e c a s e , p a r t i c u l a r l y s h o r t - t e r m j o b c r e a t i o n and t r a i n i n g o f r e d u n d a n t l a b o u r . The L i b e r a l a p p r o a c h r e s e m b l e s c l o s e s t t h e m a i n s t r e a m o r 'new o r t h o d o x y ' . I n p r a c t i c e , i t i s common t o f i n d a c o m b i n a t i o n o f a l l t h r e e a p p r o a c h e s . E l e m e n t s o f e a c h a r e a d o p t e d i n r e a l i t y and t h e r e s u l t i n g mix r e f l e c t s n o t o n l y v a r i a t i o n s i n l o c a l c o n d i t i o n s and o p p o r t u n i t i e s b u t a l s o t h e p l u r a l i s t i c and c o m p e t i n g n a t u r e o f u r b a n i n t e r e s t s , and p e r h a p s an a b s e n c e o f f a i t h i n any s i n g l e t a c k . -41- CHAPTER 4 POLICY COMMENTARY 4.1 Introduction The choice between the three approaches i s e s s e n t i a l l y a p o l i t i c a l rather than a technical one. However, the l o c a l economic planner can say something about the s u i t a b i l i t y of strategies and policy i n i t i a t i v e s in l i g h t of an analysis of ongoing structural change and l o c a l conditions. Unfortunately, because of the paucity of evaluative studies in this area we are a long way from id e n t i f y i n g unequivocably those forms of intervention most ef f e c t i v e at least cost. Nevertheless, a preliminary assessment of experiments and innovations, as well as more established p o l i c i e s , w i l l now be attempted. There i s a plethora of l i t e r a t u r e documenting the wide range of i n i t i a t i v e s developed and implemented by l o c a l governments (Crombie 1983, Waters 1983, Lawless 1981), M i l l e r 1981, Mawson amd M i l l e r 1982, Mawson 1983, Johnson and Cochrane 1981, Middleton 1983, Young and Mason 1983). There now follows a summation of the opportunities for intervention accompanied by a 'coarse-level' evaluation. In other words, the nature and merit of options available to l o c a l authorities w i l l now be examined. Although l o c a l government involvement in economic development varies enormously between j u r i s d i c t i o n s i t i s nonetheless possible to generalise from the broad range of experience. A useful i f t r a d i t i o n a l way to to structure and present the d i v e r s i t y of p o l i c i e s i s to take in turn the p r i n c i p a l factors of production: land, including premises and -42- infrastructure; c a p i t a l or finance; entrepreneurship linked to information and advice; and labour or human c a p i t a l . 4.2 Land Local government si t e s and premises provision constitutes the 'property-led' approach to i n d u s t r i a l development, and together with infrastructure comprise the physical 'hardware' of urban economic development. This i s the best developed area of l o c a l government involvement since i t i s a natural extension of planning powers and expertise. Because this area of intervention i s long established, i t i s for the most part well understood and accepted. Urban authorities are, by and large, very active in land transactions such as 'banking' (the deliberate acquisition of land) and assembly of land into suitable sites for development. In Canada, Industrial Parks are very much the norm and "no self-respecting municipality would be without one" (Walker 1980). Most do not, however, conform to a narrow d e f i n i t i o n of a s t r i c t l y controlled park environment but instead resemble i n d u s t r i a l d i s t r i c t s . In England, Industrial Improvement Areas are far more formal and e n t a i l both f i n a n c i a l assistance and public investment in infrastructure. The provision of infrastructure, such as s i t e servicing and s o c i a l f a c i l i t i e s , i s an important element in development e f f o r t s . In many countries redevelopment or replacement investment such as road access to inner c i t y i n d u s t r i a l zones has become as important as 'greenfield' s i t e servicing (Waters 1983). It i s found that the designation of Industrial Zones can -43- ass i s t in overcoming functional obsolescence and stimulate private investment by confirming a long-term commitment to a sp e c i f i c area. Such measures may in practice, on the other hand, be regarded as l i t t l e more than cosmetic (Lawless 1981). In terms of premises provision, speculative building such as Advance Factories have long been a component of B r i t i s h regional policy, and many urban authorities in the U.K. keep a stock of premises for new or relocating firms. Involvement by lo c a l government i s j u s t i f i e d on the grounds that gaps exist in the market for suitable property in terms of quantity, quality or cost and this constitutes a l o c a l constraint on firms. The solution i s not, however, indiscriminate investment in modern land and buildings of uniform standards. Demand i s complex, and needs vary according to the type of firm and product. For example, modern factories are essential for high technology firms but the provision of new premises should not occur at the expense of demolishing old buildings. There i s a need to preserve older and cheaper premises on which small and new businesses depend, p a r t i c u l a r l y craft-based firms with low p r o f i t margins. A f a i r l y recent development i s the r e h a b i l i t a t i o n of older premises and conversion into smaller units. For example, delapidated t e x t i l e m i l l s in the North of England have been successfully converted into workshops or Enterprise Centres (Waters 1983). They help promote the development of an idea into a prototype for commercial exploitation at a later date. These non-traditional 'nursery' units afford small businesses the - 4 4 - opportunity to asses and modify technical, managerial and marketing problems prior to commencement of f u l l production. Concern for small premises i s , then, linked to product development and innovation - the t r a d i t i o n a l role for the c i t y as 'seed bed'. In Canada, multi-occupancy i n d u s t r i a l malls t y p i c a l l y cater for small operations and are therefore important in 'incubating' small business in suburban areas (Walker 1980). It i s important that in terms of sit e s and premises provision l o c a l government be selective when ensuring the a v a i l a b i l i t y of various 'hardware' according to the size, lay-out, tenure type and price (North and Leigh 1983). To f a c i l i t a t e the property-led approach, many urban authorities have formed Development Companies either as wholly-owned subsidiaries (the U.K. experience) or as joint ventures with the private sector (the U.S. experience). The 'arm's length' relationship afforded by such an arrangement avoids some of the legal and f i n a n c i a l constraints on l o c a l government, and in addition i s preferred by the banks and the private sector who would otherwise be suspicious of i t s objectives as well as i t s competency. Equipped with a cl e a r l y defined r o l e , and often staffed with r e c r u i t s from the private sector, such agencies can be quite e f f e c t i v e in the commercial and r e t a i l as well as i n d u s t r i a l property market. A debate has arisen over whether l o c a l government should be d i r e c t l y involved in development involving a u n i l a t e r a l expenditure of public funds or rather play a more in d i r e c t c a t a l y t i c role by forging partnerships with the private sector. -45- Due to f i n a n c i a l c o n s t r a i n t s , many l o c a l governments enter i n t o f i n a n c i a l p a r t n e r s h i p s with developers f o r the purpose of p r o v i d i n g premises. A common formula i s the lease or leaseback arrangement whereby the a u t h o r i t y provides the land and guarantees a minimum re t u r n to the i n v e s t o r , who i n turn advances the c a p i t a l f o r c o n s t r u c t i o n . Demonstration of l o c a l government commitment to such a p r o j e c t c r e a t e s the f i n a n c i a l confidence which enables the developer to e a s i e r access i n s t i t u t i o n a l f i n a n c e . P a r t n e r s h i p arrangements t h e r e f o r e permit p r i v a t e funding to be 'leveraged' and r i s k s to be shared. J o i n t ventures with the p r i v a t e s e c t o r are seen as evidence of growing p u b l i c - p r i v a t e c o l l a b o r a t i o n and c o o p e r a t i o n . 4.3 Finance The wave of i n t e r e s t i n small and medium-sized firms has h i g h l i g h t e d the s e r i o u s gap i n thew f i n a n c i a l market f o r businesses of t h i s nature. Commercial l e n d i n g i n s t i t u t i o n s are by and l a r g e c o n s e r v a t i v e i n outlook and tend to look unfavourably upon a p p l i c a n t s f o r a bank loan without a t r a c k r e c o r d or a s s e t s to o f f e r as s e c u r i t y . The discrepancy i n the market i s acknowledged by s e n i o r government which has i n s t i t u t e d measures to address t h i s need, as w e l l as provide f o r l e n i e n t tax treatment on e q u i t y investment i n small b u s i n e s s . An i n t e r e s t i n g i n n o v a t i o n i n France to generate f i n a n c e f o r small business i s the scheme which allows unemployed persons to c a p i t a l i s e t h e i r e n t i t l e m e n t to b e n e f i t and subsequently use t h i s sum to f i n a n c e new business -46- ventures (Waters 1983). Many l o c a l governments, however, believe this response to be inadequate and accordingly have become increasingly involved in the provision of venture or start-up c a p i t a l to new firms, investment c a p i t a l to existing ones and even working c a p i t a l to frequently under-capitalised enterprises such as cooperatives. Because grants constitute an expensive use of scarce resources, loan finance or guarantees are preferred, p a r t i c u l a r l y as they permit the leveraging of private contributions. Investment subsidies for the purpose of attracting mobile c a p i t a l i s said to be very sensitive to the s p a t i a l scale at which i t i s disbursed. So-called 'footloose' firms are now a very scarce commodity worldwide (Crombie 1983). Consequently, marketing eff o r t s based on subsidised premises and f i n a n c i a l assistance have become very aggressive. It i s not uncommon to find l o c a t i o n a l advantages of s p e c i f i c areas in advertising l i t e r a t u r e grossly exaggerated, even to the point where "London-based executives now know that to the North of Watford l i e s Heaven on Earth" (Middleton 1983). Competition at public expense i s a waste of resources, for example in England there are currently over 1300 empty Advance Factories (Alternative Regional Strategy 1982). Even when successful in attracting external private c a p i t a l , such firms tend to be branch plants comprising low quality jobs (Shapira 1981). Propulsive firms are not generally attracted by such investment subsidies. Labour and ca p i t a l markets, transportation, regulation and amenity exert a far greater -47- cumulative influence on business location decisions. Costly c a p i t a l subsidies are not necessary to stimulate economic development or growth. They have l i t t l e importance regarding business investment and location decisions and merely represent a windfall to business p r o f i t a b i l i t y (Kierschnick 1981) or 'corporate welfare' (Harrison and Kantor 1978). Investment subsidies also encourage c a p i t a l i n t e n s i f i c a t i o n resulting in a poor job creation impact. 'Smokestack-chasing' i s said to be f u t i l e and nothing more than a zero-sum game. Competitive bidding amongst l o c a l authorities i s an unnecessary duplication of e f f o r t (or 'beggar-thy-neighbour') and results in scarce public resources merely r e d i s t r i b u t i n g and not creating jobs. For example, the Enterprise Zone as established in the U.K. and to a lesser extent the U.S. i s found to 'suck i n ' jobs at the expense of job loss in neighbouring areas. These 'legal islands' or freeports, in which taxes are cut substantially, zoning eliminated and most regulations rescinded, are at best irrelevant and at worst damaging (North and Leigh 1983). Ori g i n a l l y touted as a non-planning exercise, Enterprise Zones have i r o n i c a l l y turned into an example of positive planning and intervention (Williams and Butler 1982). Although introduced only a few years ago, there are already serious doubts as to their e f f i c a c y and they have generated a surprising weight of c r i t i c a l l i t e r a t u r e . Goldsmith (1982c) regards them not as a solution but part of the problem and a crude attempt to create banana republics at home. Local policy makers should be -48- wary of panaceas such as Enterprises Zones and Science Parks. Incentives and subsidies used to lure external private c a p i t a l also do nothing for indigenous firms and the retention of existing employment, and pay l i t t l e attention to the quantity and quality of jobs created or the l o c a l m u l t i p l i e r e f f e c t s . The land and buildings (or physical determinism) approach in pa r t i c u l a r i s said to provide unthinking assistance to industry. An interesting innovation in this area i s the attempt by some l o c a l authorities in England to extract greater accountability on the part of firms receiving public aid through a Planning Agreement. These reciprocal arrangements seek a commitment from the recipient regarding the number, type and duration of jobs created, as well as rates of pay and working conditions in return for public assistance. In practice, however, this may prove d i f f i c u l t to enforce and may not survive abrupt changes in economic conditions (North and Leigh 1983). An argument i s made that the provision of equity c a p i t a l rather than loans or grants by l o c a l government affords greater influence over management decisions, and subsequently increased control over the l o c a l economy (M i l l e r and M i l l e r 1982). There is also a recognition of both an unmet need for long-term developmental c a p i t a l and the weak f i n a n c i a l base of many l o c a l firms. The more progressive urban authorities in the U.K. are therefore taking equity shareholding in l o c a l businesses. This can also be seen as a 'pump-priming1 a c t i v i t y (Minns and Thornley 1979). Because this a c t i v i t y requires a new set of s k i l l s and -49- expertise, i t i s hived off to a semi-autonomous Enterprise Board. This i n s t i t u t i o n a l device permits the urban authority to leverage supplementary private sector funding, act as investment manager on behalf of f i n a n c i a l i n s t i t u t i o n s such as pension funds i . e . to l e g a l l y handle p o r t f o l i o investment, purchase equity in any form and offer loan guarantees (Edge 1983, Lyons 1983). This public sector development c a p i t a l body represents a major step by the l o c a l authority in extending i t s range of a c t i v i t i e s and permits i t to play a more dir e c t , entrepreneurial role in the l o c a l economy. Opportunistic interventions in existing l o c a l industry, though open to p o l i t i c a l manipulation, can avoid bankruptcy and subsequent plant closure, and thereby stem job loss . A strong case can be made out for linkin g pension funds in p a rticular to direct investment in new and existing firms rather than unproductive p o r t f o l i o stocks and real estate (Minns 1983). In B.C., the l o c a l Credit Unions are beginning to move toward channelling l o c a l funds into new and existing l o c a l enterprise. Some urban authorities extend beyond the Enterprise Board approach and seek to rekindle enthusiasm for municipal enterprise in which l o c a l government participates d i r e c t l y in commercial trading a c t i v i t i e s such as public u t i l i t i e s , transport, housing etc. However, conservative central governments exert strong pressurs on l o c a l governments to 'pri v a t i s e ' or contract out as many of their services as -50- p o s s i b l e i n the b e l i e f that exposure to the r i g o u r s of the marketplace w i l l i n c r e a s e c o s t - e f f e c t i v e n e s s . F i n a l l y , the t o t a l i t y of l o c a l government involvement i n the l o c a l economy - as employer, developer, purchaser - i s only now being a p p r e c i a t e d , and some urban a u t h o r i t i e s have implemented a procurement p o l i c y which e x p l i c i t l y d i s c r i m i n a t e s i n favour of l o c a l f i r m s . However, there i s some concern over the u n f a i r competition which such a s s i s t a n c e r e p r e s e n t s . As part of i t s competition p o l i c y , the European Commission i s attempting to impose upon l o c a l governments a i d c e i l i n g s which w i l l l i m i t the l e v e l of a s s i s t a n c e made by them (Waters 1983). O v e r a l l , investment s u b s i d i e s and i n c e n t i v e s are not a r e l i a b l e instrument of l o c a l economic p o l i c y because of the f o l l o w i n g problems. F i r s t , s u b s i d i s i n g i n d u s t r y at the p u b l i c expense can be very expensive - a form of i n d u s t r i a l p h i l a n t h r o p y ( M i l l e r and M i l l e r 1982). The propping-up of i n e f f i c i e n t f i r m s i s a l s o a s e r i o u s m i s a l l o c a t i o n of r e s o u r c e s . Second, as lenders of l a s t r e s o r t , l o c a l government w i l l most l i k e l y end up supporting the more marginal, high r i s k p r o j e c t s which w i l l r e s u l t i n a s i g n i f i c a n t number of f a i l u r e s . No amount of p u b l i c a i d can compensate f o r b a s i c weaknesses i n f i r m s . T h i r d , p r o j e c t s which f a i l to s a t i s f y commercial banking c r i t e r i a but are supported by l o c a l government i m p l i e s a mix of economic and s o c i a l o b j e c t i v e s . I n e v i t a b l y , c o n f l i c t s w i l l a r i s e between f i n a n c i a l and s o c i a l c r i t e r i a used i n p r o j e c t a p p r a i s a l . More i m p o r t a n t l y , the i n t e r e s t of some a u t h o r i t i e s i n promoting -51- innovative forms of enterprise such as community businesses poses considerable ambiguity in evaluating the impact of such support. Gone, then, are the days of non-specific, expensive advertising and subsidy. The problem facing the l o c a l authority today i s how to withdraw u n i l a t e r a l l y from this i n d u s t r i a l roulette - in a sense they are hostages to private mobile ca p i t a l (Shapira and Leigh-Preston 1984a). 4.4 Entrepreneurship An increasingly important intervention point for urban governments in the l o c a l economy i s that of information and advice. T r a d i t i o n a l l y , this a c t i v i t y consisted primarily of p a r t i c i p a t i o n in exhibitions and the provision of promotional l i t e r a t u r e advertising the range and type of assistance available, and indicating the opportunities for investment. 'Prospecting' a c t i v i t y for the purpose of attracting mobile private c a p i t a l i s now downplayed in favour of promoting and serving the existing economic base i . e . as s i s t i n g indigenous firms and focussing on job conservation. Information gathered for marketing serves a dual purpose: promotion and i n t e l l i g e n c e . Knowledge of markets, regulations, opportunities and programs has a value for both indigenous businessess and l o c a l economic policy planning. The marketing function, which involved the passive dissemination of information, has recently been transformed into a much broader range of information and business advice services. Out of the o r i g i n a l promotion function has evolved a -52- wide range of business services and technical support to aid lo c a l firms, p a r t i c u l a r l y those in growth sectors with strong l o c a l linkages (Packham 1983), U n t i l f a i r l y recently, entrepreneurship (or the quality of management and innovation) was not considered an area for public intervention. Now, however, virorous attempts are made to stimulate and improve this a c t i v i t y through business counselling,information and start-up training which lend themselves naturally to l o c a l - l e v e l delivery. The expertise and goodwill of the business community i s a valuable resource which can be tapped to provide advice to fledgeling entrepreneurs. Because they are l o c a l l y based and labour-intensive, and characterised by worker i n i t i a t i v e and self-management, there i s a growing interest in promoting producer cooperatives and other forms of community business. In the E.E.C. between 1976 and 1981, 6,700 cooperatives were established, mostly in Italy ( T i t l e y 1983). Whereas l o c a l government can stimulate small business via tra i n i n g , advice and the package of premises and finance, encouragement of common ownership forms of enterprise c a l l s for s p e c i a l i s t i n s t i t u t i o n a l support. Consequently, Cooperative Development Agencies have been set up by l o c a l government in the U.K. Because promotion of permanent employment opportunities encounters special problems in mobilising residents, p a r t i c u l a r l y in low-income areas, and in dealing with the new type of business form, this a c t i v i t y contains a strong component of community as well as economic development. -53- Though small enterprises continue to attract considerable attention because of the b e l i e f that they are s i g n i f i c a n t generators of employment or in the vanguard of technological innovation, the evidence i s inconclusive. Supporters see them as being an important vehicle in economic development (Rothwell 1982) but others hold serious reservations about the professed a b i l i t i e s of small business, and doubt whether the future salvation of c i t i e s in decline l i e s e n t i r e l y with this sector (Middleton 1983). Certainly, work by Birch in the U.S. i n i t i a l l y generated much enthusiasm for small firms but subsequent reinterpretation cast doubt on the application of many of the conclusions in other j u r i s d i c t i o n s ( F o t h e r h i l l and Gudgin 1979a, Storey 1983). Specific concerns are raised as to the quality of jobs created because small firms tend to be service-oriented, and the security of jobs as well as the s u s t a i n a b i l i t y of the enterprise in question because t y p i c a l l y they are characterised by a high f a i l u r e rate. These c r i t i c i s m s have yet to permeate conventional wisdom and the myth surrounding small business job impact p e r s i s t s . 4.5 Labour Though not a statutory obligation of urban authorities, their concern over the quality and quantity of manpower i s quite v a l i d . Local government involvement in human c a p i t a l evolves e s s e n t i a l l y around i d e n t i f y i n g gaps in training and retraining provision, and subsequently lobbying appropriate agencies and departments. In a broader sense, lobbying can be udertaken to -54- sensitize senior government about l o c a l concerns , as well as to take advantage of programs. Formal training i s linked to the more informal advice and counselling to stimulate entrepreneurial a c t i v i t y . A host of new business techniques have been developed as part of an increasing body of managerial technology, and professional training of businessmen creates the human c a p i t a l which embodies this new technology (Stanback et a l 1981). In rare instances, the l o c a l government may engage in direct action and establish or take over f a c i l i t i e s but i t i s more usual for central agencies under senior government auspices to have r e s p o n s i b i l i t y for training and manpower planning. However, because national programs are not t a i l o r e d to s p e c i f i c l o c a l requirements and central administrative machinery can appear remote and bureaucratic, l o c a l government i s frequently found to act as management agent for the manpower agency and to be involved d i r e c t l y in the coordination and planning of l o c a l - l e v e l delivery. Job creation and training are t y p i c a l l y the r e s p o n s i b i l i t y of senior government, yet in Europe a few l o c a l authorities have accessed the E.E.C.'s Social Fund in order to introduce a wage subsidy aimed at the long-term unemployed. These employment subsidy schemes are marginal at best but do at least create a few opportunities for employment and on-the-job training and provide some basic work experience (Botham 1984, Packham 1983). Yet another interesting innovation in the area of -55- manpower i s the 'key worker' h o u s i n g scheme i n which a p o r t i o n of the m u n i c i p a l housing s t o c k i s r e s e r v e d f o r key p e r s o n n e l moving i n t o an area w i t h a new or expanding f i r m . D e s p i t e c o m p l a i n t s about queue-jumping, t h i s can be an i m p o r t a n t element i n a p r o m o t i o n a l package aimed at migrant f i r m s , and i n a wider c o n t e x t f a c i l i t a t e s the g e o g r a p h i c m o b i l i t y of l a b o u r . -56- CHAPTER 5 IMPLEMENTATION OF LOCAL ECONOMIC POLICIES 5.1 I n t r o d u c t i o n Having examined the nature of s h i f t s o c c u r i n g i n the urban space economy and the v a r i o u s s t r a t e g i c approaches and p o l i c i e s adopted by urban a u t h o r i t i e s , t h i s chapter w i l l now focus on p r a c t i c a l implementation of l o c a l economic p o l i c y p l a n n i n g . There are r e a l problems observed with respect to the i n s t i t u t i o n a l framework and the ' a c t o r s ' i n v o l v e d . How r e a l i s the p o t e n t i a l f o r c o n f l i c t and d u p l i c a t i o n , and how should t h i s a c t i v i t y be organised? What are the i m p l i c a t i o n s of the r e c e n t l y enlarged economic r o l e f o r the planning p r o f e s s i o n ? Because the r e l a t i v e l y new f i e l d of urban economic development crosses t r a d i t i o n a l i n t e r d i s c i p l i n a r y boundaries, a high degree of coop e r a t i o n w i t h i n the a d m i n i s t r a t i o n i s c a l l e d f o r . I d e a l l y , economic p o l i c y planning at the urban l e v e l ought to be a corporate a c t i v i t y permeating every department and i n v o l v i n g a wide spectrum of l o c a l i n t e r e s t s as w e l l as interagency c o o r d i n a t i o n . The expanding economic f u n c t i o n presents to l o c a l government, then, a ch a l l e n g e both i n terms of i n t e r n a l and e x t e r n a l r e l a t i o n s . 5.2 Interagency C o o r d i n a t i o n I t i s imperative that p o l i c y formation at the l o c a l l e v e l take i n t o account other j u r i s d i c t i o n s and r e l a t e t o , f o r example, n a t i o n a l i n d u s t r i a l development s t r a t e g i e s . U n f o r t u n a t e l y , n a t i o n a l p o l i c i e s l a c k an e x p l i c i t urban - 5 7 - dimension and present interventions by l o c a l authorities tend to be ad hoc and d i s j o i n t e d . The absence of regional coordinating machinery in particular i s a real hindrance to sub-regional planning because independent action by autonomous agencies can disrupt the plans of others and therefore be counterproductive. A framework for regional planning i s v i t a l for l o c a l economic policy i n i t i a t i v e s in terms of resolving or better s t i l l avoiding tension and possible c o n f l i c t (Self 1983). There are also c l e a r l y economies of scale to be realised in the provision of certain functions. Cost can be reduced, for example, i f l o c a l authorities cooperate regionally in the a t t r a c t i o n of 'footloose' firms, economic i n t e l l i g e n c e gathering, lobbying and t r a i n i n g . A strong case i s made by Martin and Hodge (1983) for incorporating l o c a l economic p o l i c i e s into a new sub-national s p a t i a l policy framework. Tr a d i t i o n a l regional policy has a disappointing track record and the reasons for this can be traced to costly c a p i t a l subsidies and incentives. 'Locational bribery', though successful in diverting new industry, generally f a i l e d to generate any long-term growth. It i s suggested that recent developments in the space economy progressively undermined conventional regional policy and rendered measures inadequate to cope with the the new economic r e a l i t i e s . The p o l i t i c a l 'eclipse' of regional policy i s due not only to the increasing mismatch of programs to needs but also to the new approach to policy making which i s almost -58- e x c l u s i v e l y n a t i o n a l i n o r i e n t a t i o n . Conservative c e n t r a l governments i n p a r t i c u l a r have moved away from a s o c i a l concern f o r r e g i o n a l e quity toward promoting n a t i o n a l i n d u s t r i a l e f f i c i e n c y and r a t i o n a l i s a t i o n . M artin and Hodge argue p e r s u a s i v e l y f o r a new r e g i o n a l p o l i c y which aims at economic r e c o n s t r u c t i o n w i t h i n r e g i o n s . That i s , f u t u r e r e g i o n a l p o l i c y should have an i n t r a r e g i o n a l focus and attempt a ' s t r u c t u r a l r e c o n v e r s i o n ' through f i r s t of a l l i n c r e a s i n g the competitive e f f i c i e n c y of e x i s t i n g i n d u s t r i e s and secondly c h a n n e l l i n g investments i n t o new expansionary forms of e n t e r p r i s e . In other words, the economic base r e q u i r e s c o n s o l i d a t i o n and r e g e n e r a t i o n . A r e d i s t r i b u t i v e or d i v e r t i n g s o c i a l r o l e f o r the new r e g i o n a l p o l i c y i s not envisaged as t h i s would merely 'spread the misery of mass unemployment'. Because of the strong e f f i c i e n c y arguments f o r b u i l d i n g on l o c a l economic p o l i c y i n i t i a t i v e s , e x p e r t i s e and i n s i t u knowledge, the new r e g i o n a l p o l i c y should f i r s t of a l l be r e c a s t on the b a s i s of sound l o c a l economic development and secondly s h i f t e d to a l o c a l framework of a i d d e l i v e r y . The fut u r e r e g i o n a l p o l i c y a c cording to Martin and Hodge should support and encourage l o c a l economic p o l i c y p l a n n i n g . The i d e a l framework f o r economic planning and i n t e r v e n t i o n i s one that i s n a t i o n a l l y c o o r d i n a t e d yet l o c a l l y c o n t r o l l e d and succeeds i n 'meshing bottom-up impulses with top-down orthodoxy'. In the absence of t h i s i d e a l , l o c a l economic p o l i c y making must be r e c o n c i l e d to the inadequacies of the p r e v a i l i n g -59- s t r u c t u r e and the t h r u s t of n a t i o n a l p o l i c i e s . I t should be undertaken w i t h i n the broader context of interagency l i a i s o n and c o n s u l t a t i o n . 5.3 Community C o l l a b o r a t i o n Apart from the interagency c o o r d i n a t i o n of p o l i c i e s , the other major area of i n t e r e s t to l o c a l economic planners with respect to e x t e r n a l r e l a t i o n s i s community c o l l a b o r a t i o n and d i a l o g u e . Urban economic development aims to i n f l u e n c e the l o c a l economy i n accordance with expressed community g o a l s . In terms of process, then, i t i s imperative that c l e a r l i n k s be forged with l o c a l i n t e r e s t s , notably the business community, trade unions and community groups through such mechanisms as Commissions, Committees and Task Forces. The opening of the system i n t h i s way helps r e f i n e p o l i c i e s and i n a d d i t i o n makes the o r g a n i s a t i o n more respo n s i v e to community concerns. The involvement of l o c a l c i t i z e n s , business and labour i n p o l i c y making not only generates much needed c r e a t i v e input but a l s o a l s o enhances the l e g i t i m a c y of the process. This e x e r c i s e t h e r e f o r e helps b u i l d consensus and p o l i t i c a l support f o r p o l i c i e s , and i s important f o r r e s o l v i n g competing i n t e r e s t s and determining t r a d e - o f f s . I t should be noted, however, that the p u b l i c p a r t i c i p a t i o n approach to p o l i c y making i s by no means c o s t - f r e e . Democracy has i t s p r i c e . Because of the h i g h l y p l u r a l i s t i c nature of contemporary urban s o c i e t y , the formation of compromise s o l u t i o n s can have the e f f e c t of s e r i o u s l y postponing decision-making or 'fudging' the p o l i c y approach. - 6 0 - 5.A Impact on Conventional Urban Planning Urban economic p o l i c y p l a n n i n g , because i t i s c h a r a c t e r i s e d by new assumptions, t o o l s and outlook, presents both an o p p o r t u n i t y and a c h a l l e n g e to the planning p r o f e s s i o n . The emerging economc p o l i c y r o l e at the urban l e v e l s t r o n g l y i n t e r a c t s with more orthodox urban pl a n n i n g . T h i s portends a p o s s i b l e realignment of b u r e a u c r a t i c power but more importantly h i g h l i g h t s the b a s i c c o n f l i c t between the c o n t r o l / r e g u l a t i o n f u n c t i o n of urban planning and the promotion/creation f u n c t i o n of economic p o l i c y p l a n n i n g . The t r a d i t i o n a l concerns of urban planning are with s o c i a l i n f r a s t r u c t u r e and the p h y s i c a l environment i . e . i s s u e s of e q u i t y and d i s t r i b u t i o n , and p h y s i c a l land use and design. I t assumes growth and expanding r e s o u r c e s , and aims to manage growth from a predominantly land-use p e r s p e c t i v e with a negative c o n t r o l f u n c t i o n dominant. By f o c u s s i n g on zoning and p h y s i c a l aspects of growth, urban planning addresses the symptoms or consequences of economic growth. In other words, i t i s put i n a r e a c t i v e mode and responds to p r i v a t e s e c t o r i n i t i a t i v e s through r e g u l a t o r y means. The assumptions, o b j e c t i v e s , a t t i t u d e and instruments of urban economic p o l i c y planning are, by c o n t r a s t , q u i t e d i f f e r e n t . Because l o c a l economic planners are by and l a r g e aware of the nature and extent of urban economic change and d e c l i n e , they a p p r e c i a t e that the contemporary era i s one of a u s t e r i t y not plenty and t h e r e f o r e accept the c u r r e n t r e s t r a i n t i n p u b l i c expenditure. -61- L o c a l economic p o l i c y planners are a l s o p r o a c t i v e . They very much take the i n i t i a t i v e i n f a c i l i t a t i n g the r e v i t a l i s a t i o n and/or c o n s e r v a t i o n of the l o c a l economy. Urban economic development, being production rather than consumption-oriented, tends to be sympathetic toward commerce and i n d u s t r y . Urban economic planning based e x c l u s i v e l y on co n v e n t i o n a l s p a t i a l t o o l s and r e g u l a t i o n s i s going to have l i t t l e o v e r a l l impact on i n f l u e n c i n g economic change which i s e s s e n t i a l l y a s p a t i a l and s t r u c t u r a l . The economic development process i s a l s o complex. To cope with r e s t r u c t u r i n g , new t o o l s are being developed which i s drawing on the l o c a l economic planner's c r e a t i v i t y . In terms of s t i m u l a t i n g economic a c t i v i t y , i t may w e l l be that an emphasis on urban m i l i e u and amenity r a t h e r than t r a d i t i o n a l land and fi n a n c e p r o v i s i o n might i n the long run prove more f r u i t f u l . In a d d i t i o n , i t may w e l l be that the a b i l i t y of l o c a l government to i n f l u e n c e the urban economy depends as much i f not more on sympathetic approaches i n a l l i e d p o l i c y areas such as zoning, t r a n s p o r t and housing. Because of r a p i d l y changing economic c o n d i t i o n s i t i s argued that the assumptions and instruments of t r a d i t i o n a l urban planning are q u i c k l y becoming o b s o l e t e , and h i s t o r i c p e r s p e c t i v e s must be r e v i s e d i n accordance with the 'new economic r e a l i t i e s ' . Urban planners are urged to r e o r i e n t themselves, p a r t i c u l a r l y as to d i m i n i s h i n g not expanding r e s o u r c e s , and i n c o r p o r a t e or give g r e a t e r weight i n t h e i r -62- a n a l y s i s to the economic dimension. In e f f e c t , they are recommended to e f f e c t a paradigmatic s h i f t i n t h e i r t h i n k i n g from negative i n t e r f e r e n c e and c r i s i s i n t e r v e n t i o n to p o s i t i v e development and e n t r e p r e n e u r i a l i n n o v a t i o n , or at l e a s t to attempt a b e t t e r 'balance' i n t h e i r o r i e n t a t i o n . I t has been observed that orthodox planners tend to harbour a b i a s a g a i n s t business which may be part of p r o f e s s i o n a l ideology and engendered i n education and t r a i n i n g . C e r t a i n l y , the planning p r o f e s s i o n i s viewed i n some quarters as being a n t i t h e t i c a l to the p r i v a t e s e c t o r and c o n s t i t u t i n g a b a r r i e r to p r i v a t e investment and growth. I t i s t h e r e f o r e under a great deal of pressure to be more understanding of business and to r e l a x r e g u l a t i o n s and cut 'red tape'. There may w e l l be some v a l i d i t y to the c l a i m that the planning bureaucracy imposes unnecessary and unreasonable c o s t s and delays on developers and property owners. However, there are l e g i t i m a t e f e a r s that moves to ' s t r e a m l i n e ' the development process w i l l compromise many hard-won safeguards of environmental q u a l i t y , h e a l t h and s a f e t y . Some see a r e a l danger i n over-enthusiasm f o r t h i s new planning f u n c t i o n and i n i d e n t i f y i n g too c l o s e l y with p r i v a t e s e c t o r i n t e r e s t s . Empathy f o r the business community i s perhaps long overdue to r e c t i f y past h o s t i l i t i e s yet at the same time many do not wish to see communities and c i t i z e n s ' s a c r i f i c e d at the a l t a r of p r i v a t e p r o f i t ' . Business and community needs and p r i o r i t i e s are not always congruent. Somehow, a balance must be s t r u c k between -63- economic and s o c i a l / e n v i r o n m e n t a l o b j e c t i v e s . There i s a l s o a need to r e c o n c i l e the two branches of the p r o f e s s i o n . R e l a t i o n s between more orthodox c i t y planners and economic planners are at best i n d i f f e r e n t and at worst h o s t i l e . I t may w e l l be that r e c r u i t s from the p r i v a t e s e c t o r i n Economic Development O f f i c e s of m u n i c i p a l i t i e s are too b u s i n e s s - o r i e n t e d and l a c k i n g i n s e n s i t i v i t y toward s o c i a l i s s u e s and needs. The answer i s probably to s e n s i t i z e them to the d i v e r s e , m u l t i p l e aims of l o c a l government. There i s , then, an urgent need to r e s o l v e the i n t e r n a l c o n f l i c t between c o n v e n t i o n a l urban planning and emerging economic planning at the urban l e v e l . This r e q u i r e s that the apparent c o n t r a d i c t i o n between r e g u l a t i o n and promotion f u n c t i o n s be r e c o n c i l e d through corporate or i n t e g r a t e d p o l i c y p l a n n i n g . The p o t e n t i a l c e r t a i n l y e x i s t s f o r l i n k i n g s o c i a l , p h y s i c a l and economic planning at the urban l e v e l but the r e a l i s a t i o n of t h i s perhaps l i e s somewhere i n the f u t u r e . I t remains to be seen how the p r o f e s s i o n w i l l adapt to the changing circumstances. -64- CHAPTER 6 CONCLUSIONS 6.1 Summing up of the Problem During the prosperity of the post-war era, the fundamental health of l o c a l economies was never in question. But the onset of 'sta g f l a t i o n ' in the 1970s brought about increasing urban malaise - i n d u s t r i a l decline, manufacturing job loss and erosion of the municipal tax base. Coupled with growing concern about the distress experienced by l o c a l economies was a perception that perhaps the economic p o l i c i e s of senior government were not adequately addressing urban problems. The current economic doctrine of central administrations revolves around pursuing the imperatives of national recovery and r a t i o n a l i s a t i o n . Restructuring in particular i s f a c i l i t a t e d in the national economic interest to the v i r t u a l exclusion of consequences and impacts. With the rundown of regional policy, l o c a l and regional dimensions are now e f f e c t i v e l y ignored. In a sense, then, l o c a l economic policy planning plays a vacuum-filling r o l e , and i s formulated in response to perceived decline and neglect. Economic development i s no longer of peripheral concern to urban au t h o r i t i e s . Because of the special attributes of l o c a l government, i t i s widely acknowledged now to have a legitimate role to play in economic development. As the downturn and high levels of unemployment p e r s i s t , l o c a l government commitment to this area i s l i k e l y to grow. -65- Accompanying the f u n c t i o n a l expansion i s what i s seen as an ' e x p l o s i o n ' i n economic p o l i c y i n i t i a t i v e s at the l o c a l l e v e l and, because of i n c r e a s e d v i s i b i l i t y and controversy surrounding the p r e c i s e r o l e of l o c a l government, urban economic p o l i c y planning has become a major focus f o r p u b l i c p o l i c y debate. There are s e r i o u s d e f i c i e n c i e s observed with respect to both p o l i c y and p r a c t i c e . S p e c i f i c a l l y , i t i s a s s e r t e d that urban economic p o l i c y planning i s c a r r i e d out at the expense of sound a n a l y s i s , c l a r i f y i n g o b j e c t i v e s and e f f e c t i v e n e s s , and c o l l a b o r a t i o n and c o o r d i n a t i o n . These p r e v a i l i n g weaknesses present a challenge to the l o c a l economic planner i n the areas of theory, e v a l u a t i o n and implementation. 6.2 P r i n c i p l e s The t r a d i t i o n a l a n a l y t i c framework on urban economic change i s probably obsolete because of the profound r e s t r u c t u r i n g which has transformed the urban space economy i n a f a i r l y dramatic f a s h i o n . Weak p o l i c i e s and s t r a t e g i e s d e r i v e from a weak p e r s p e c t i v e . As s h i f t s i n the space economy provides the context f o r f o r m u l a t i n g urban economic p o l i c i e s , i t i s necessary to understand the u n d e r l y i n g processes and problems a s s o c i a t e d with economic change, and subsequently develop an e n l i g h t e n e d p e r s p e c t i v e that c l a r i f i e s and e x p l a i n s trends and e v o l v i n g l i n k a g e s . The systematic and thorough a n a l y s i s of the l o c a l economy i s s t r o n g l y advocated as opposed to the c u r r e n t ad hoc, r e a c t i v e response. -66- With resp e c t to trends, the f o l l o w i n g represent s t r u c t u r a l aspects of change: i n t e r n a t i o n a l i s a t i o n of the economy; displacement of goods production by s e r v i c e s as the cutting-edge of economic growth; and the growing importance of human c a p i t a l (Ginzberg and V o j t a 1981). The q u a l i t a t i v e change taking place i n the space economy s i g n i f i e s the emergence of knowledge-based, p o s t - i n d u s t r i a l s o c i e t y . T r a n s i t i o n to the p o s t - i n d u s t r i a l order portends upward s h i f t s i n both c a p i t a l i n t e n s i f i c a t i o n and o c c u p a t i o n a l s t r u c t u r e , and r a p i d growth of business s e r v i c e s employing vast numbers of quaternary p r o f e s s i o n a l s . The space economy i s reordered so that urban f u n c t i o n s l i e predominantly i n high-order s e r v i c e s as centres of c o n t r o l and command i n the mixed economy. S t r a t e g i e s must a p p r e c i a t e the changing nature of l i n k a g e s developing between the s e r v i c e base of the l o c a l economy and the wider r e g i o n a l , n a t i o n a l and even i n t e r n a t i o n a l markets. I t must a l s o recognise the s p e c i a l i s e d ' s u p r a - l o c a l * r o l e played by some urban c e n t r e s , f o r example, Vancouver's f u n c t i o n as both Western entrepot and P a c i f i c Rim 'gateway'. Proponents of t h i s v i s i o n urge that we face the new r e a l i t y of r e s t r u c t u r i n g and r a t i o n a l i s a t i o n , and accept the d e c l i n e of manufacturing as i n e v i t a b l e and a necessary part of system dynamics. R e i n d u s t r i a l i s a t i o n e f f o r t s i n t h i s view are misplaced; i n s t e a d we should focus on i n d u s t r i e s of the f u t u r e . The c h a l l e n g e f o r c i t i e s i s to provide the r e q u i s i t e i n n o v a t i v e and growth m i l i e u . - 6 7 - T h i s p e r s p e c t i v e on trends i s o v e r l y o p t i m i s t i c . I t tends to downplay and even ignore negative aspects and consequences - there i s no r e c o g n i t i o n of market f a i l u r e or e x t e r n a l i t i e s . Yet the new r e a l i t y i n t e n s i f i e s the realignment w i t h i n the workforce and a dual labour market i s r a p i d l y emerging. R a t i o n a l i s a t i o n i s r e s u l t i n g i n s e r i o u s employment e r o s i o n or displacement as w e l l as economic d i s l o c a t i o n . S u b s t a n t i a l c o s t s are a s s o c i a t e d with p e r s i s t e n t high l e v e l s of unemployment and abandoned communities. I t i s h i g h l y l i k e l y a c c ording to most observers that the labour market w i l l never recover to past l e v e l s of f u l l employment. An unforeseen generation of urban problems are p r e d i c t e d to emerge ( S c o t t 1984b). Despite the s e d u c t i v e promises of p o s t - i n d u s t r i a l p r o s p e r i t y , i t i s prudent at t h i s p o i n t i n time to maintain a healthy s k e p t i c i s m or c r i t i c a l a t t i t u d e toward 'waves of the f u t u r e ' . To cope with the problems of p o s t - i n d u s t r i a l t r a n s i t i o n , Stanback urges a wholesale r e f o r m u l a t i o n of p u b l i c p o l i c y . U n f o r t u n a t e l y , we are a long way from developing a composite theory with r e s p e c t to the changes i n the urban space economy to serve as a guide i n the f o r m u l a t i o n of e f f e c t i v e p o l i c i e s . Because the s i t u a t i o n demands urgent a c t i o n , l o c a l economic p o l i c y planners cannot wait f o r a cogent t h e o r e t i c a l framework. P o l i c y making i s t h e r e f o r e to a l a r g e degree o p e r a t i n g i n a t h e o r e t i c a l vacuum. I t i s important, then, to contextuate p o l i c i e s i n l i g h t of a s e n s i t i v e p e r c e p t i o n of trends and dynamics, as w e l l as -68- l o c a l c o n d i t i o n s and o p p o r t u n i t i e s . Being aware of the wider environment yet at the same time implementing s o l u t i o n s which are l o c a l l y developed and a p p l i e d has been coined ' t h i n k i n g g l o b a l l y and a c t i n g l o c a l l y ' . To maximise e f f e c t i v e n e s s , i n t e r v e n t i o n s must be s t r a t e g i c a l l y p l a c e d . That i s , r a t h e r than being blunt and broad-brush, they ought to be s e n s i t i v e to developmental needs and s e l e c t i v e to f a c i l i t a t e t a r g e t t i n g . S t r a t e g i e s should move away from the blanket or s c a t t e r - g u n approach and concentrate on a few key expanding s e c t o r s . For i n s t a n c e , they could focus on small f i r m s with strong l o c a l l i n k a g e s w i t h i n growth s e c t o r s by t a r g e t t i n g m i n i - f a c t o r i e s and mini-workshops. Because broadening the range of options a f f o r d s greater f l e x i b i l i t y , i t i s necessary to experiment with new instruments. A c r e a t i v e and i n n o v a t i v e a t t i t u d e i s t h e r e f o r e u s e f u l i n h e l p i n g to promote a l t e r n a t i v e s . The c i t y ought to be regarded as a l a b o r a t o r y f o r s m a l l - s c a l e p i l o t p r o j e c t s . I t i s l i k e l y , then, that unorthodox i n i t i a t i v e s such as community businesses and d i r e c t s e l e c t i v e investment w i l l form a growing component of f u t u r e l o c a l government economic s t r a t e g i e s . Because instruments are a l s o u n c e r t a i n i n t h e i r impact, a p o l i c y package ought to c o n t a i n a thorough monitoring and e v a l u a t i o n component i n order to determine both c o s t - e f f e c t i v e n e s s and impact. In a d d i t i o n , instruments must be made more p r e c i s e . When fo r m u l a t i n g c r i t e r i a f o r i n t e r v e n t i o n there must be c l a r i t y as to which o b j e c t i v e i s being pursued. Urban economic p o l i c y planning must come to terms with -69- two very s e r i o u s c o n s t r a i n t s on the scope f o r l o c a l a c t i o n : powerful market or exogenous f o r c e s and l i m i t e d resources and powers. I n t e r v e n t i o n s can be very demanding of resources but the s h i f t from growing a f f l u e n c e to an era of l i m i t s s e v e r e l y reduces the scope f o r a c t i o n because there are simply fewer resources a v a i l a b l e . Instruments should t h e r e f o r e be c o s t - e f f e c t i v e and the l o c a l economic planner should seek to c l a r i f y not only the p o l i c y choices f a c i n g the l o c a l economy but a l s o the f u l l c o s ts (and b e n e f i t s ) a s s o c i a t e d with c h o i c e s . S i g n i f i c a n t c o s t s may be i n c u r r e d i n attempts to turn around market f o r c e s . P o l i c i e s that r e s i s t such f o r c e s and i n s t e a d 'flow a g a i n s t the t i d e ' can exact an expensive t o l l i n terms of o p p o r t u n i t y c o s t . A r u l e of thumb might be f o r p o l i c i e s to f a c i l i t a t e market f o r c e s and t r e a t market f a i l u r e s and e x t e r n a l i t i e s through ex poste e q u i t y i n t e r v e n t i o n . Implementation of s o c i a l p o l i c y a f t e r the f a c t recognises the f u t i l i t y of attempting to 'square the c i r c l e ' i . e . c o l l a p s i n g e f f i c i e n c y and e q u i t y c o n s i d e r a t i o n s . The dimensions of s t r a t e g i c choice can be d e l i n e a t e d as f o l l o w s , with perhaps c i t i e s i n d e c l i n e represented predominantly to the l e f t of the spectrum and c i t i e s e x p e r i e n c i n g or a n t i c i p a t i n g growth to the r i g h t . I t must be borne i n mind, however, that the o v e r a l l s t r a t e g y developed f o r a p a r t i c u l a r area w i l l be very much j u r i s d i c t i o n s p e c i f i c . That i s , i n p r a c t i c e the p r e c i s e mix of elements w i t h i n an o v e r a l l s t r a t e g y w i l l vary enormously depending on l o c a l circumstances and problems. -70- STRATEGIC DIMENSIONS d i r e c t / a c t i v e i n t e r v e n t i o n p a s s i v e / i n d i r e c t ( u n i l a t e r a l expenditure) ( c a t a l y t i c ) inward o r i e n t a t i o n outward o r i e n t a t i o n ( a s s i s t indigenous base) ( a t t r a c t e x t e r n a l c a p i t a l ) people-based firm-based (concern f o r employment) (concern f o r t a x / c a p i t a l base) s u r v i v a l ( c o n s e r v a t i o n ) .recovery (growth) consumption/ d i s t r i b u t i o n production s o c i a l c r i t e r i a ( e q u i t y ) commercial c r i t e r i a ( e f f i c i e n c y ) r e i n d u s t r i a l i s e (manuf.) p o s t - i n d u s t r i a l ( s e r v i c e s ) 'software' component 'hardware' component dominant T y p i c a l l y , c i t i e s i n d e c l i n e are production centres and face the g r e a t e s t c h a l l e n g e because they are caught i n a v i c i o u s downward s p i r a l of d i s i n v e s t m e n t . When they implement p o l i c y packages that 'swim a g a i n s t the i n e x o r a b l e t i d e of d e c l i n e ' , they are f o r the most part f i g h t i n g a rearguard a c t i o n a g a i n s t the broad and powerful f o r c e s of r e s t r u c t u r i n g . I t has been noted with r e s p e c t to these kinds of i n i t i a t i v e s that " p o l i c i e s adopted cannot be simply dismissed as i d e o l o g i c a l excesses... but represent a p o s i t i v e response to the s c a l e of economic d e t e r i o r a t i o n that o l d e r i n d u s t r i a l areas have experienced". M i l l e r and M i l l e r 1982:153 In these cases, l o c a l economic p o l i c i e s are l i k e l y to have a very l i m i t e d impact i n the short-term. However, a case f o r -71- c o n t i n u i n g the p o l i c y t h r u s t can be made i n terms of the seri o u s n e s s of the problems, the l o c a l nature of c e r t a i n c o n s t r a i n t s and community support f o r the i n i t i a t i v e s . T y p i c a l l y , the p o l i c y package w i l l focus on the 'software' component of economic development comprising the f a c i l i t y to make loans, give guarantees, take e q u i t y p a r t i c i p a t i o n and provide a wide range of business s e r v i c e s . For the p o s t - i n d u s t r i a l c i t y , circumstances and prospects are very d i f f e r e n t . T h e i r economic base i s i n a growth s i t u a t i o n . The s t r a t e g y ought to s t r e s s comparative advantage; that i s , b u i l d on strengths r a t h e r than shore up weaknesses. The focus f o r such a s t r a t e g y w i l l be key i n d u s t r i e s and s e c t o r s which lead growth such as s p e c i a l i s e d producer and e x p o r t - o r i e n t e d s e r v i c e s , and p r o p u l s i v e segments of manufacturing. In other words, the s o - c a l l e d ' s u n r i s e ' as opposed to 'sunset' i n d u s t r i e s . However, s p e c i a l i s a t i o n c a r r i e d beyond reasonable l i m i t s has s e r i o u s drawbacks i n that a narrow, h i g h l y s p e c i a l i s e d urban economic base i s qu i t e v u l n e r a b l e to e x i g e n c i e s i n the market, and l a c k s s t a b i l i t y provided through d i v e r s i t y . ' S p e c i a l i s a t i o n w i t h i n d i v e r s i f i c a t i o n ' r e q u i r e s that more a t t e n t i o n be paid to the e x i s t i n g base; that i s , a s s i s t a n c e to indigenous firms and r e t e n t i o n of employment. I t i s important t h e r e f o r e to r e t a i n key manufacturing i n d u s t r i e s and maintain l i n k a g e s v i t a l to the l o c a l economy because "the v i t a l i t y of the s e r v i c e s e c t o r i s dependent i n l a r g e part upon the v i t a l i t y of manufacturing" (Noyelle -72- 1983:288). But t h i s i s not to say that each c i t y must r e p l i c a t e a l l elements of the n a t i o n a l i n d u s t r i a l s t r u c t u r e . Perhaps a more r e a l i s t i c and reasonable ambition i s to aim f o r a ' d i v e r s i t y of s p e c i a l i s a t i o n s ' . A t y p i c a l p o l i c y c l u s t e r f o r a p o s t - i n d u s t r i a l c i t y would comprise marketing and promotion to crea t e a p o s i t i v e business environment and f a c t o r supply enhancement, p a r t i c u l a r l y regarding human c a p i t a l and d i s c r e t i o n a r y s u b s i d i e s to s u s t a i n l o c a l l i n k e d i n d u s t r i e s . The focus on the 'hardware' component of economic development e n t a i l s p h y s i c a l works i n c l u d i n g land assembly, i n f r a s t r u c t u r e p r o v i s i o n , and f a c t o r y and commercial b u i l d i n g . The p o l i c y package would a l s o emphasise ' s t r e a m l i n i n g ' of municipal r e g u l a t i o n s ; c o n s u l t a t i o n s with s e n i o r l e v e l s of government, i n c l u d i n g lobbying to s e n s i t i z e personnel as to urban concerns; dialogue with the l o c a l community; and the engaging of the p r i v a t e s e c t o r through j o i n t ventures. I t has been s t r e s s e d throughout how important i t i s to f o s t e r community c o l l a b o r a t i o n and d i a l o g u e , as w e l l as interagency c o o r d i n a t i o n and c o o p e r a t i o n . With respect to f o r g i n g l i n k s with l o c a l i n t e r e s t s , the problems of con s e n s u s - b u i l d i n g cannot be underestimated. I t i s here that the planner can play a v i t a l r o l e i n m o b i l i s i n g community resources and, i n some i n s t a n c e s , b u i l d on a strong 'area p l a n n i n g ' t r a d i t i o n . Any f u t u r e inter-governmental l i a i s o n should focus on the p o t e n t i a l c o n t r i b u t i o n of urban economic p o l i c i e s to -73- n a t i o n a l e f f o r t s aimed at improving e f f i c i e n c y and competitiveness, and re g e n e r a t i o n and recovery i n g e n e r a l . C o n s u l t a t i o n s with s e n i o r government a u t h o r i t i e s and agencies should d e l i n e a t e a p p r o p r i a t e r o l e s w i t h i n a s y n o p t i c r e g i o n a l framework. As f a r as p o s s i b l e , p o l i c y should be def i n e d and implemented at the l e v e l of the economy i t i s t r y i n g to b e n e f i t . However, though much acclaimed i n r h e t o r i c , the question of a c o o r d i n a t i n g s t r u c t u r e remains l a r g e l y unresolved. For i n s t a n c e , i n Canada we f i n d no i n d u s t r i a l p o l i c y ; a r a t h e r u n s u c c e s s f u l r e g i o n a l p o l i c y ; and no e x p l i c i t urban dimension i n n a t i o n a l p o l i c i e s . In l i g h t of the a l t e r e d context, Kraushaar and Gandels (1982) p r e d i c t three new r o l e s f o r planning which are not n e c e s s a r i l y mutually e x c l u s i v e : t e c h n i c i a n s of development; managers of d e c l i n e ; and f a c i l i t a t o r s of change. The f i r s t and second r o l e s are r e s p e c t i v e l y p r o d u c t i o n and consumption o r i e n t e d , whereas the t h i r d purports to l i n k production and consumption i s s u e s . I t i s f a r from c l e a r at the present time whether the p r o f e s s i o n i s abl e , and indeed should, r e c o n c i l e the two. The purpose of t h i s t h e s i s has been to present a s t r u c t u r e d overview of b a s i c themes and i s s u e s i n urban economic p o l i c y planning, and o f f e r a broad p o l i c y commentary. L o c a l economic development, d e s p i t e having made c o n s i d e r a b l e progress, i s s t i l l very much i n i t s i n f a n c y . Because a c r i t i c a l maturing stage has been reached i n i t s e v o l u t i o n , i t was -74- considered both a p p r o p r i a t e and timely to attempt the development of a coherent p e r s p e c t i v e on the ch a l l e n g e s f a c i n g urban economic planners wishing to p o s i t i v e l y i n f l u e n c e the l o c a l economy. The 'bottom l i n e ' with r e s p e c t to the impact of urban economic p o l i c y planning i s that i t i s r e l a t i v e l y marginal, though the scope f o r e f f e c t i v e l o c a l a c t i o n can be s i g n i f i c a n t l y enlarged i f good r e l a t i o n s with business and sen i o r government can be e s t a b l i s h e d . A c t u a l p o l i c i e s can be qu i t e e f f e c t i v e when f a c i l i t a t i n g market f o r c e s but when 'flowing a g a i n s t the t i d e ' they probably do no more than 'stab at the wind'. I t i s simply not p o s s i b l e f o r purely l o c a l i s e d i n i t i a t i v e s to stem the t i d e of d e c e n t r a l i s a t i o n and d i s p e r s a l . As urban a u t h o r i t i e s cannot independently r e v i t a l i s e c i t i e s i n d i s t r e s s , governments throughout the 'West' should abandon t h e i r obsession with i n f l a t i o n and t h e i r preoccupation with monetary t a r g e t s i n favour of a more balanced approach that combines r e s p o n s i b l e economic management with a f u l l y - d e v e l o p e d s o c i a l p o l i c y dimension. Although l o c a l a c t i o n can never s u b s t i t u t e f o r r i g o r o u s p o l i c i e s and programs at the n a t i o n a l l e v e l , urban economic development does have a small but nonetheless s i g n i f i c a n t r o l e to play due to the responsiveness, a c c o u n t a b i l i t y and i n s i t u knowledge of l o c a l government. Economic a c t i v i t y does not depend s o l e l y on the l e v e l of demand. Urban economic planners t h e r e f o r e have a key r o l e to play i n removing l o c a l o b s t a c l e s -75- and c o n s t r a i n t s to growth and development. The c a p a c i t y of l o c a l government should be f o r t i f i e d by i n c r e a s i n g funding and d e c i s i o n making a u t h o r i t y . T h i s might r e q u i r e c o n s t i t u t i o n a l reform to enable the d e v o l u t i o n of power to a more l o c a l l e v e l . The st r e n g t h e n i n g of l o c a l government 'powers of i n i t i a t i v e ' would c e r t a i n l y enhance i t s inherent a b i l i t y to motivate and m o b i l i s e , and encourage i n n o v a t i o n from the 'bottom up ' . Because of the u n c e r t a i n t y and v o l a t i l i t y r e s u l t i n g from complex and r a p i d changes i n the space economy, a f l e x i b l e and i n n o v a t i v e approach to p o l i c y making i s advocated. Rather than a d o c t r i n a i r e response to urban economic problems, t h i s author would urge l o c a l government a u t h o r i t i e s to take a pragmatic a t t i t u d e and encompass the e c l e c t i c set of p r i n c i p l e s contained i n t h i s t e x t . -76- BIBLIOGRAPHY ALLAN, Malcolm. 1982: 'Entrepreneurs in the Town H a l l ' . Town and Country Planning, A p r i l , pp 87-88. BACHELOR, Lynn W. 1981: 'Urban Economic Development: Issues and P o l i c i e s ' . Book Review Essay. Urban A f f a i r s Quarterly, December, pp 239-46. BELL, Daniel. 1980: The Winding Passage. New York: Basic Books. BELL, Daniel. 1973: The Coming of Post-Industrial Society: A Venture in Social Forecasting. New YorK: Basic Books. BENDAVID-VAL, Avron. 1980: Local Economic Development Planning: From Goals to Projects. American Planning Association: Chicago, 111. BERGMAN, Edward M. (ed.) 1983a: Synposium: Planning the Development of Local Economies. J.A.P.A., Summer vo l . 49(3): 257-335. BERGMAN, Edward M. 1981: 'Local Economic Development Planning in an Era of Capital Mobility'. Carolina Planning v o l . 7(2): 29-37. BERGMAN, Edward M. and Goldstein, Harvey. 1983: 'Dynamics and Structural Change in Metropolitan Economies'. J.A.P.A., v o l . 49(3): 263-79. BERRY, B.J.L. (ed.) 1976: Urbanization and Counterurbanization. Beverly H i l l s : Sage Urban A f f a i r s Annual Review, No. 11. BIRCH, David L. 1981: 'Who Creates Jobs?'. The Public Interest, pp 65. ' BLAKELY, Edward J. and Shapira, P h i l i p . 1984 (forthcoming): 'Industrial Restructuring: Public P o l i c i e s for Investment in Advanced Industrial Society'. Annals of the.American Academy of P o l i t i c a l and Social Science. Special Issue: D e - i n d u s t r i a l i s a t i o n . BLUESTONE, Barry and Harrison, B. 1982: The Deindustrialisation of America: Plant Closings, Community Abandonment and the Dismantling of Basic Industry. New York: Basic Books. BODDY, M. and Barrett, S. 1979: 'Local Government and the Industrial Development Process'. S.A.U.S. Working Paper No. 6. University of B r i s t o l , - 7 7 - BOTHAM, Ron. 1984 (forthcoming): 'Employment S u b s i d i e s : A New D i r e c t i o n f o r L o c a l Government Economic I n i t i a t i v e s ' . Regional S t u d i e s . BOVIARD, A.G. 1 9 8 1 : 'An E v a l u a t i o n of L o c a l A u t h o r i t y Employment I n i t i a t i v e s ' . L o c a l Government S t u d i e s , J u l y v o l . 7 ( 4 ) . BOWLES, Samuel, David M . Gordon, Thomas E. Weiskopf. 1 9 8 4 : Beyond the Wasteland: A Democratic A l t e r n a t i v e to Economic D e c l i n e . New York: Anchor P r e s s / D o u b l e d a y . BRAMLEY, G., Stewart, M. and Underwood, J . 1 9 7 9 : 'Local Economic I n i t i a t i v e s : A Review'. Town Planning Review v o l . 5 0 ( 2 ) : 3 1 - 4 7 . BRITTON, J.N.H. 1 9 8 1 : Innovation, I n d u s t r i a l Strategy and the Urban Economy: Toronto's Development Options. Research Paper No. 1 2 7 . U n i v e r s i t y of Toronto: Centre f o r Urban and Community S t u d i e s . BROWN, Mich a e l , B. 1 9 8 1 : 'Local E n t e r p r i s e ' , i n Ken Coates (ed.) How To Win? Nottingham: Spokesman, pp 9 7 - 1 1 0 . BRYCE, J . Herrington (ed.) 1 9 8 0 : C i t i e s and Firms. Lexington, Mass.: Lexington Books. BURNS, Leland and Van Ness, Kathy. 1 9 8 1 : 'The Decl i n e of the Me t r o p o l i t a n Economy'. Urban Studies v o l . 1 8 : 1 6 9 - 8 0 . BUSWELL, R.J. (ed.) 1 9 8 3 : The North i n the E i g h t i e s : Regional P o l i c i e s f o r a Decade of Development. Regional Studies A s s o c i a t i o n (Northern Branch), Dept. Geography, U n i v e r s i t y of Newcastle. CAMERON, G.C. 1 9 8 0 : 'The Inner C i t y : New Plant Incubator?*, i n A.W. Evans and D.E.C. E v e r s l e y ( e d s . ) , The Inner C i t y . London: Heinemann. CAMERON, S.J. et a l . 1 9 8 2 : L o c a l A u t h o r i t y Aid to Industry: An E v a l u a t i o n i n Tyne and Wear, D. of E. Inner C i t i e s Research Programme. Report No. 7 . CAMINA, N.M. 1 9 7 4 : 'Local A u t h o r i t i e s and the A t t r a c t i o n of Industry'. Progress i n Planning v o l . 3 ( 2 ) . Oxford: Pergamon. CARLEY, M i c h a e l . 1 9 8 0 : R a t i o n a l Techniques i n P o l i c y A n a l y s i s . P o l i c y Studies I n s t i t u t e . London: Heinemann. -78- CARNOY, Martin and Shearer, Derek. 1980: Economic Democracy. White P l a i n s , New York: M.E. Sharpe. CHRISTIE, R.C. 1980: 'Developing an I n d u s t r i a l P o l i c y f o r a C e n t r a l C i t y : A Case Study of Toronto', i n D.F. Walker (ed.), Planning I n d u s t r i a l Development, John Wiley. COFFEY, W.J. and Polese, M. 1981: 'Local Development: Some P o l i c y Options'. I n s t i t u t e of P u b l i c A f f a i r s , Dalhousie U n i v e r s i t y . CROMBIE, Theodore. 1983: 'The View From Below', i n John F. Malcolm (ed.), The P u b l i c Sector and Urban Economic Regeneration. CURR D i s c u s s i o n Paper No. 12. U n i v e r s i t y of Glasgow: Centre f o r Urban and Regional Research. DAMESICK, P. 1981: "Regional Problems and P o l i c y i n B r i t a i n : A Case f o r R e a p p r a i s a l ' . B u i l t Environment v o l . 7(2): 138-144. DANIELS, P.W. 1983: 'Service I n d u s t r i e s : Supporting Role or Centre Stage?' Area vol.15: 301-9. DANIELS, P.W. 1982: S e r v i c e I n d u s t r i e s : Growth and L o c a t i o n . DAVIES, K e r i . 1981: 'Looking f o r Jobs'. Town and Country Planning, September, pp 244. DAVIES, Tom and Mason, C h a r l i e . 1981: 'Local Government - A Minimal Response to Labour Market R e s t r u c t u r i n g - A Case Study'. L o c a l Government Studies v o l . 7(4). DAVIES, Tom. 1980: ' B u i l d i n g B r i d g e s : L i n k i n g Economic Regener- a t i o n to Inner C i t y Employment Problems'. SAUS Working Paper 8. B r i s t o l U n i v e r s i t y : School f o r Advanced Urban S t u d i e s . DAVIS, H. C r a i g and Hutton, T.A. 1981: 'Some Planning I m p l i c a t i o n s of the Urban S e r v i c e s S e c t o r ' . Plan Canada v o l . 21(1): 15-23. D0NNIS0N, David. 1983: 'Urban P o l i c i e s f o r the 1980s: Some New Trends'. U n i v e r s i t y of Glasgow: Dept. of Town and Regional P l a n n i n g . Economic Development by D i s t r i c t C o u n c i l s 1983: A S e r i e s of Papers on Best P r a c t i c e . London: Assoc. of D i s t r i c t C o u n c i l s . / The Economist. Feb. 19 1983: 'Regional P o l i c y Under the Axe'. -79- EDGE, Geoff. 1983: 'The Role of E n t e r p r i s e Boards'. The Planner, September v o l . 69(5). EDGE, Geoff. 1981: P r i o r i t i e s f o r Economic Development i n the West Midlands. Birmingham: Economic Development U n i t , West Midlands County C o u n c i l . EDGINGTOM, D.W. 1982: ' O r g a n i z a t i o n a l and T e c h n o l o g i c a l Change and the Future Role of the C e n t r a l Business D i s t r i c t : An A u s t r a l i a n Example: Urban Studies v o l . 19(3): 281-92. ELIAS, Peter and Keogh, G. 1982: ' I n d u s t r i a l D e c l i n e and Unemployment i n the Inner C i t y Areas of Great B r i t a i n : A Review of the Evidence'. Urban Studies v o l . 19: 1-15. EVANS, Roger W. 1983: 'Central Government: Asset or L i a b i l i t y ? ' . The Planner v o l . 69(5): 173-4. EVERS, C l i v e . 1981: L o c a l A u t h o r i t y Economic and Employment P o l i c y and P r a c t i c e : An Annotated B i b l i o g r a p h y . London: N a t i o n a l C o u n c i l f o r Voluntary O r g a n i s a t i o n s . EVERSLEY, D.E.C. 1973: 'Risi n g Costs and S t a t i c Incomes: Some Economic Consequences of Regional Planning i n London', i n Cameron, G.C., and Wingo L., (eds.) C i t i e s , Regions and P u b l i c P o l i c y . Edinburgh: O l i v e r and Boyd. FALK, N. 1979: 'Getting to Grips with I n d u s t r i a l Promotion'. M u n i c i p a l J o u r n a l v o l . 87(6): 121-24. FALK, N. 1979: L o c a l A u t h o r i t i e s and I n d u s t r i a l Development: Re s u l t s of a Survey. London: URBED Research T r u s t . F e d e r a t i o n of Canadian M u n i c i p a l i t i e s . 1983: 'The Challenge of the E i g h t i e s : A Proposal f o r a Three Year A c t i o n Plan Concerning Big C i t y I n i t i a t i v e s and P a r t n e r s h i p s i n Economic Development'. Urban Economic Development Task Force. Fe d e r a t i o n of Canadian M u n i c i p a l i t i e s . 1983: 'Submission to the Royal commission on the Economic Union and Development Prospects f o r Canada'. FISHER, Peter S. 1982: ' P u b l i c / P r i v a t e P a r t n e r s h i p s f o r Community Development: An I n s t i t u t i o n a l i s t E v a l u a t i o n ' . Working Paper 54. I n s t i t u t e of Urban and Regional Research: U n i v e r s i t y or Iowa. -80- FOTHERGILL, S. and Gudgin, G. 1982: Unequal Growth: Urban and Regional Employment Change i n the U.K. London: Heinemann. FOTHERGILL, S. and Gudgin, G. 1979a: The Job Generation Process i n B r i t a i n . London: Centre f o r Environmental S t u d i e s . FOTHERGILL, S. and Gudgin, G. 1979b: 'Regional Employment Change: A Sub-Regional E x p l a n a t i o n ' . Progress i n Planning v o l . 12(3): 155-219. FRIEDMANN, John and G. Wolff. 1982: 'World C i t y Formation'. I n t e r n a t i o n a l J o u r n a l of Regional and Urban Research v o l . 6 ( 3 ) . GERSHUNY, J . 1978: A f t e r I n d u s t r i a l S o c i e t y ? The Emerging S e l f - S e r v i c e Economy. London: Macmillan. GINZBERG, E l i and G.J. V o j t a . 1981: 'The S e r v i c e Sector of the U.S. Economy'. S c i e n t i f i c American v o l . 244(3): 6-15. GOLDRICK, M.D. and D. Holmes (eds.) 1981: Jobs and the M e t r o p o l i t a n Toronto Economy: Symposium Proceedings. GOLDSMITH, W.W. and Harvey Jacobs. 1982: 'The I m p r o b a b i l i t y of Urban P o l i c y ' . J.A.P.A., Winter v o l . 48(1): 53-66. GOLDSMITH W.,W. 1982a: ' E n t e r p r i s e Zones: I f They Work We're i n Troub l e ' . I n t e r n a t i o n a l J o u r n a l of Urban and Regional Research v o l . 6(3): 435-42. GOLDSMITH W.W. 1982b: ' E n t e r p r i s a e Zones i n the U.S.: Lessons from I n t e r n a t i o n a l Experience'. J o u r n a l of Planning Education and Research, Summer v o l . 2(1):5-11. GOTTMANN, Jean. 1982: 'Metamorphosis of the Modern M e t r o p o l i s ' . E k i s t i c s v o l . 42(292): 293-303. GOUGH, Jamie, D. North, K. E s c o t t and R. L e i g h . 1981: 'Local A u t h o r i t y P o l i c i e s i n Inner London - Monitoring the Responses of Manufacturing Firms'. L o c a l Government St u d i e s , J u l y v o l . 7 ( 4 ) . GRAY, John and D. Spina. 1980: 'State and L o c a l I n d u s t r i a l L o c a t i o n I n c e n t i v e s - A Well-Stocked Candy Store'. J o u r n a l of Co r p o r a t i o n Law, Spring v o l . 5(3): 517-687. GUDGIN, G., B. Moore and J . Rhodes. 1982: 'Employment Problems i n the C i t i e s and Regions of the U.K.: Prospects f o r the E i g h t i e s ' . Cambridge Economic Policy^ Review v o l . 8 ( 2 ) . -81- G.V.R.D. Task Force. 1980: The Need and Role f o r a Regional Economic Development Body. F i n a l Report and Recommendations. HALL, Peter and M. Breheny. 1983: 'Whither Regional Planning?'. The Planner, J u l y v o l . 69(4):113-4. HALL, Pet e r . 1982: Urban E n t e r p r i s e Zones: A J u s t i f i c a t i o n ' . I n t e r n a t i o n a l J o u r n a l of Urban and Regional Research, September v o l . 6(3): 416-21. HARRISON, Bennett. 1982: 'The P o l i t i c s and Economics of the Urban E n t e r p r i s e Zone P r o p o s a l : A C r i t i q u e ' . I n t e r n a t i o n a l J o u r n a l of Urban and Regional Research, Spetember v o l . 6(3): 422-28. HARRISON, Bennett and S. Kanter. 19787: 'The P o l i t i c a l Economy of S t a t e s ' J o b - C r e a t i o n Business I n c e n t i v e s ' . J.A.I.P., October v o l . 44(4): 424-35. HART, D.A. 1980: 'Urban Economic Development: Lessons from Germany and America'. O.P.2. Reading U n i v e r s i t y : School of Planning S t u d i e s . HAWKEN, Pa u l . 1983: The Next Economy. New York: H o l t , Rinehart & Winston. HIRSCHHORN, L. 1979: 'The Urban C r i s i s : A P o s t - I n d u s t r i a l P e r s p e c t i v e ' . J o u r n a l of Regional Science v o l . 19(1): 109-18. HOLLAND, Stua r t (ed.) 1978: Beyond C a p i t a l i s t P l a n n i n g . Oxford: B l a c k w e l l . HOMENUCK, Pete r . 1982: 'The Impact of New Technology: New Pressures on Urban and Regional P l a n n i n g ' . The Canadian J o u r n a l of Regional Science V(1 ) . HOME, Robert K. 1982: Inner C i t y Regeneration. London: E & F Spon. HOWE, Stewart. 1978: I n d u s t r i a l Economics: An Applied Approach. Macmillan. HUMPHREY, C h a r l e s . 1982: 'New Ways of Making Jobs'. Town and Country Planning, December pp315-6. HUTTON, Thomas A. 1983: 'Prospects f o r Planning: An Economic P e r s p e c t i v e ' . Plan Canada, September v o l . 23(2): 51-8. JACOBS, Jane. 1984: 'Fool's P a r a d i s e : The Decl i n e and F a l l of Economic Theory'. Saturday Night, May pp36-50. -82- JACOBS, Jane. 1983: 'The Economy of Regions'. T h i r d Annual E.F. Schumacher L e c t u r e s . Mt. Holyoke C o l l e g e . Hadley MA. JOHNSTONE, N e v i l and A l l a n Cochrane. 1981: Economic P o l i c y Making by L o c a l A u t h o r i t i e s i n B r i t a i n and West Germany. London: A l l e n & Unwin. J o i n t Unit f o r Research on the Urban Environment. 1981: 'A Review of L o c a l Economic I n i t i a t i v e s i n the U.K.'. Birmingham: JURUE, U n i v e r s i t y of Aston. KEEBLE, D. 1980: ' I n d u s t r i a l D e c l i n e , Regional P o l i c y and the Urban-Rural Manufacturing S h i f t i n the U.K.'. Environment and Planning A v o l . 12(8): 945-62. KEEBLE, D. 1976: I n d u s t r i a l L o c a t i o n and Planning i n the U.K. London: Methuen. KIESCHNICK, M i c h a e l . 1981: Taxes and Growth: Business I n c e n t i v e s and Economic Development. Washington D.C: C o u n c i l of State Planning Agencies. KRAUSHAAR, R. and N. Gardels. 1982: 'Towards an Understanding of C r i s i s and T r a n s i t i o n : Planning i n an Era of L i m i t s ' , i n C. P a r i s (ed.) C r i t i c a l Readings i n Planning Theory. Pergamon. KUTTNER, Bob. 1983: 'The D e c l i n i n g Middle'. The A t l a n t i c Monthly, J u l y v o l . 252(1): 60-72. Labour C o u n c i l of Metro Toronto. 1983: A Time f o r P u b l i c L eadership: I n d u s t r i a l S t r a t e g i e s f o r Metro Toronto. An A l t e r n a t i v e Report to ' I n d u s t r i a l Development i n Metro Toronto: I s s i e s , Prospects and S t r a t e g i e s ' by the M u n i c i p a l i t y of Metro Toronto. LAWLESS, Pa u l . 1981: B r i t a i n ' s Inner C i t i e s : Problems and P o l i c i e s . London: Harper & Row. LAWLESS, Paul. 1980: 'New Approaches to L o c a l A u t h o r i t y Economic I n t e r v e n t i o n ' . L o c a l Government S t u d i e s , January v o l . 6 ( 1 ) : 17-31. LAWLESS, Pa u l . 1979: 'Urban Economic Development'. Town and Country Planning, November pp258-9. LAXER, James. 1984: 'Taking Stock: An Excerpt from the Report to the NDP F e d e r a l Caucus on Economic P o l i c y ' . Canadian Forum, February. LAYARD, R. and S. N i c k e l l . 1980: 'The Case f o r S u b s i d i s i n g E x t r a Jobs'. Economic J o u r n a l v o l . 90:51-73. -83- LEY, David. 1980: ' L i b e r a l Ideology and the P o s t - I n d u s t r i a l C i t y ' . A.A.A.G. v o l . 70:238-58. LITVAK, Lawrence. 1981: 'Pension Investment as a Development T o o l ' , i n Pension Funds and Economic Renewal. Washington D.C.: C o u n c i l of State P l a n n i n f A g f e n c i e s . London Borough of Hammersmith and Fulham. 1983: Strategy f o r Employment and Economic Development. Economic Development U n i t . LYONS, Mick. 1983: 'The 2p Rate and Powers f o r Economic Development'. The Planner, September v o l . 69(5): 163-5. MARTIN, R.L. and J.S.C. Hodge. 1983: 'The Re c o n s t r u c t i o n of B r i t i s h Regional P o l i c y ' . Environment and Planning C: Government and P o l i c y , vol.1 ppl33-152 and pp317-340. MASSEY, Doreen. 1982: ' E n t e r p r i s e Zones: A P o l i t i c a l Issue'. I n t e r n a t i o n a l J o u r n a l of Urban and Regional Research, September v o l . 6(3): 429-34. MASSEY, Doreen. 1979: 'In What Sense a Regional Problem?'. Regional Studies v o l . 13(2): 233-43. MASSEY, Doreen and R. A. Meegan. 1978: ' I n d u s t r i a l R e s t r u c t u r i n g Versus the C i t y ' . Urban Studies v o l . 15(3): 272-88, MAWSON, John (ed.) 1984: 'Issues i n Small Firms Research of Relevance to P o l i c y Making'. Regional Studies v o l . 18(3): 257-66. P o l i c y Review S e c t i o n . MAWSON, John. 1983: 'Organising f o r Economic Development: The Formulation of L o c a l A u t h o r i t y Economic P o l i c i e s i n West Y o r k s h i r e ' , i n Ken Young and C h a r l i e Mason (eds.) Urban Economic Development. London: Macmillan . MAWSON, John and David M i l l e r . 1982: ' B u i l d i n g from Below'. New Statesman, March. MAWSON, John and Alan Norton. 1981: 'Local Government A c t i o n Against Unemployment - Conclusions of a Seminar'. Lo c a l Government Studies v o l . 7(5): 5-20. MAWSON, John (ed.) 1981: 'Local Economic Planning i n the E i g h t i e s ' . L o c a l Government S t u d i e s , J u l y v o l . 7(4). S p e c i a l Issue on Unemployment and Economic Development. -84- MIDDLETON, Alan. 1983: 'Urban Regeneration: Themes and Issues', i n John Malcolm (ed.) The P u b l i c Sector and Urban Economic Regeneration. CURR D i s c u s s i o n Paper no.12. U n i v e r s i t y of Glasgow: Centre f o r Urban and Regional Research. MILLER, C h r i s and David. 1982: 'Local A u t h o r i t i e s and the L o c a l Economy'. Town and Country Planning, June ppl53-5. MILLER, C h r i s . 1981: 'Local A u t h o r i t y Involvement i n Economic I n i t i a t i v e s : A Review A r t i c l e ' . L o c a l Government Studies v o l . 7 (4). MINNS, Richard. 1983: ' F i n a n c i a l I n s t i t u t i o n s and Resources f o r L o c a l Economic Development'. The Planner, September v o l . 69(5): 160-1. MINNS, Richard and J . Thornley. 1979a: State Shareholdings: The Role of L o c a l and Regional A u t h o r i t i e s . London: Macmillan. MINNS, Richard and J . Thornley. 1979b: 'Local A u t h o r i t y Economic Pla n n i n g : A Guide to Powers and I n i t i a t i v e s ' , i n Cary C r a i g et a l (eds.) Jobs and Community A c t i o n London: Routledge and Keegan P a u l . MORRIS, David. 1982: The New C i t y - S t a t e s . Washington D.C.: I n s t i t u t e f o r L o c a l S e l f - R e l i a n c e . MULLER, R. and A. Bruce. 1981: 'Local Government i n P u r s u i t of an I n d u s t r i a l S t r a t e g y ' . L o c a l Government S t u d i e s , January v o l . 7(1): 3-20. NEWNHAM, Rosemary. 1980: Community E n t e r p r i s e : B r i t i s h P o t e n t i a l and American Experience. 0.P.3 U n i v e r s i t y of Reading: School of Planning S t u d i e s . NORCLIFFE, Glen. 1983: ' I n d u s t r i a l S p e c i a l i s a t i o n versus I n d u s t r i a l D i v e r s i f i c a t i o n : An Assessment of P o l i c y A l t e r n a t i v e s ' . Meeting of I n d u s t r i a l Geographers of the I n s t i t u t i o n of B r i t i s h Geographers and Canadian A s s o c i a t i o n of Geographers. Calgary, A l b e r t a . NORTH, David and Roger L e i g h . 1983: ' A l t e r n a t i v e Approaches to Urban Economic P o l i c y : The Case of London'. Paper presented to the Anglo-Canadian Symposium on S t r a t e g i e s f o r Regional I n d u s t r i a l D i v e r s i f i c a t i o n . U n i v e r s i t i e s of Calgary and A l b e r t a . NORTON, Alan. 1983: 'Economic Development and Job C r e a t i o n ' . L o c a l Government Studies v o l . 9(4): 63-66. -85- NORTON, R.D. and J . Rees. 1979: 'The Product Cycle and the S p a t i a l D e c e n t r a l i s a t i o n of American Manufacturing'. Regional Studies v o l . 13: 141-51. NOVICK, Marvyn (ed.) 1979: F u l l Employment: S o c i a l Questions f o r P u b l i c P o l i c y . S o c i a l Planning C o u n c i l of Metro Toronto. NOYELLE, T h i e r r y J . 1983: 'The Rise of Advanced S e r v i c e s : Some I m p l i c a t i o n s f o r Economic Development i n U.S. C i t i e s ' . J.A.P.A. v o l . 49(3): 280-90. PACKHAM, Ric h a r d . 1983: 'Employment S u b s i d i e s ' . The Planner, September v o l . 69(5): 161-3. PEET, Richard (ed.) 1983: S p e c i a l Issue: R e s t r u c t u r i n g i n the Age of G l o b a l C a p i t a l . Economic Geography v o l . 59(2). PHILLIPS, Robyn and Avis V i d a l . 1983: 'The Growth and R e s t r u c t u r i n g of M e t r o p o l i t a n Economies: The Context f o r Economic Development P o l i c y ' . J.A.P.A. v o l . 49(3): 291-306. 'Plans Abound To Give Region Economic Boost'. The Province, February 26 1984. PRED, A l l a n . 1976: 'The Interurban Transmission of Growth i n Advanced Economies: E m p i r i c a l F i n d i n g s Versus Regional Planning Assumptions'. Regional Studies v o l . 10:151-71. REICH, Robert B. 1983: 'The Next American F r o n t i e r ' . The A t l a n t i c Monthly, March v o l . 251(3): 43-58. ROBINSON, Fred. 1979: 'Local A u t h o r i t y I n i t i a t i v e s : A Review'. 0.P.10. London: Centre f o r Environmental S t u d i e s . ROBINSON, I r a and D.R. Webster. 1984 (for t h c o m i n g ) : 'Regional Planning i n Canada: H i s t o r i c a l Development, Current P r a c t i c e s and Emerging Issues and Pr o s p e c t s ' . J»A > P > A > ROGERS, P.B. and C.R.Smith. 1977: 'The L o c a l A u t h o r i t y ' s Role i n Economic Development: The Tyne and Wear Act, 1976'. Regional Studies v o l . 11(3): 153-63. ROSS. Robert, D. Shakow and P. Sussman. 1980: 'Local Planners - Glo b a l C o n s t r a i n t s ' . P o l i c y Sciences v o l . 12:1-25. R0THWELL, Roy. 1982: 'The Role of Technology i n I n d u s t r i a l Change: I m p l i c a t i o n s f o r Regional P o l i c y ' . Regional S t u d i e s , October v o l . 16(5): 361-9. -86- SAWYER, Malcolm C. 1981" The Economics of I n d u s t r i e s and Firms; T h e o r i e s , Evidence and P o l i c y . London: Croom Helm. SCOTT, A.J. 1982a: ' L o c a t i o n a l P a t t e r n s and Dynamics of I n d u s t r i a l A c t i v i t y i n the Modern M e t r o p o l i s ' . Urban Studies v o l . 19: 111-42. SCOTT A.J. 1982b: 'Production System Dynamics and M e t r o p o l i t a n Development'. A.A.A.G. v o l . 72(2). SEGAL, N.S. 1979: 'The L i m i t s and Means of S e l f - R e l i a n t Regional Economic Growth', i n D. Maclennan and J.B. Parr (eds.) Regional P o l i c y : Past Experience and New D i r e c t i o n s . Oxford: Martin Robertson. SELF, Peter. 1983: 'Unemployment and L o c a l A c t i o n ' . Town and Country Planning, January p p l l - 1 3 . SHAPIRA, P h i l i p and Nancy Le i g h - P r e s t o n . 1984(forthcoming): 'Urban and Rural Development i n the Western United S t a t e s : Emerging C o n f l i c t s and Planning Issues'. J o u r n a l of A r c h i t e c t u r a l and Planning Research. SHAPIRA, P h i l i p . 1981: 'Inner C i t y Communities: C o n t r a s t i n g Approaches to Economic R e v i t a l i s a t i o n ' . Proceedings. Summer Annual Meeting of P.T.R.C. London. SIMMIE, James M. 1983: 'Beyond the I n d u s t r i a l C i t y ' . J.A.P.A., Winter v o l . 49(1): 59-76. SMITH, Desmond. 1984:' Waves of the Future'. Toronto L i f e , June pp33, 80-85. SMITH, Barbara M.D. 1980: 'Industry i n M e t r o p o l i t a n Area Plans: Proposals and Experience i n the West Midlands County, England', i n David F. Walker (ed.) Planning I n d u s t r i a l Development. John Wiley. SOLESBURY, W i l l i a m . 1974: P o l i c y i n Urban Pl a n n i n g : S t r u c t u r e Plans, Programs and L o c a l P l a n s . Toronto: Pergamon. STANBACK, T.M. and P.J. Bearse. 1981: S e r v i c e s : The New Economy. Conservation of Human Resources: A l l a n h e l d , Osmun. STANBACK T.M. 1979: Understanding the S e r v i c e Economy. Balt i m o r e : John Hopkins. STERNLIEB G. and J.W. Hughes. 1977: 'New Regional and M e t r o p o l i t a n R e a l i t i e s of America'. J.A.I.P. v o l . 43:237-41. -87- STOREY, D.J. 1983: 'Small Firms and Economic Development'. Town & Country Planning, June pl83/4. STOREY D.J. 1982: 'Local Employment I n i t i a t i v e s i n N.E. England: E v a l u a t i o n and Assessment Problems', i n Ken Young and C h a r l i e Mason (eds.) Urban Economic Development. London: Macmillan. STOREY D.J. and J.F. Robinson. 1981: 'Local A u t h o r i t i e s and the A t t r a c t i o n of Industry - The Case of Cleveland County C o u n c i l ' . L o c a l Government Studies v o l . 7(1): 21-38. STRUTHERS W.A.K. and C.B. Williamson. 1979: 'Local Economic Development: I n t e g r a t e d P o l i c y Planning and Implementation i n Merseyside'. Town Planning Review v o l . 50(2): 164-84. SUMMERS, Gene F. 1983: 'Creating Jobs and Income: Economic Development i n Wisconsin Communities'. Small Town v o l . 13:5. TAYLOR, Alan. 1981: 'Democratic P l a n n i n g : Aftrethought or S t a r t i n g P o i n t ' , i n Ken Coates (ed.) How To Win? Nottingham: Spokesman. THUROW, L e s t e r . 1981: The Zero Sum S o c i e t y : D i s t r i b u t i o n and the P o s s i b i l i t i e s f o r Economic Change. Harmondsworth: Penguin. TITLEY, Gary. 1983: 'The Development of Worker Co o p e r a t i v e s , . The Planner, September v o l . 69(5): 158-9. TORONTO, C i t y Planning and Development Department. 1983: The C i t y ' s Role i n Economic Development. Commission of Planning and Development. TORONTO, C i t y Planning and Development Department. 1980: A S e l e c t i v e Economic S t r a t e g y : P o l i c y and Programme Pr o p o s a l s . TORONTO, M e t r o p o l i t a n . 1983: I n d u s t r i a l Development i n Metro Toronto: Issues, Prospects and St r a t e g y . Economic Development O f f i c e of the Metro Chairman. TORONTO, Mayor Art Eggleton. 1982: Future D i r e c t i o n s : A Jobs and Economic Development Strategy f o r Toronto. VANCOUVER, Economic Advisory Commission. 1983: An Economic Strategy f o r Vancouver i n the E i g h t i e s : Proposals f o r P o l i c y and Implementation. -88- VAUGHAN, Roger. 1983: 'Planning and Economic Development', i n G i l l Lim (ed.) Regional Planning: E v o l u t i o n , C r i s i s and P r o s p e c t s . New Je r s e y : A l l a n h e l d , Osmun & Co. WALKER, David F. 1983: 'Canadian Regional Development P o l i c y ' , i n Regional Developments i n the P e r i p h e r i e s of Canada and Europe. Department of Geography, U n i v e r s i t y of Manitoba. Walker, David F. 1980a: Canada's I n d u s t r i a l Space-Economy. Toronto: John Wiley. WALKER, David F. 1980b: Planning I n d u s t r i a l Development. John Wiley. WATERS, N i g e l . 1983: The Role Of L o c a l Government A u t h o r i t i e s i n Economic and Employment Development. Report no. ILE(83) 11. The Coopoerative A c t i o n Programme on L o c a l I n i t i a t i v e s f o r Employment C r e a t i o n . P a r i s : O.E.C.D. WILLIS. K.G. 1983: 'New Jobs i n Urban Areas - An E v a l u a t i o n of Advance Factory B u i l d i n g ' . L o c a l Government Studies v o l . 9 (2): 73-86. YOUNG, Ken and C. Mason (eds.) 1983: Urban Economic Development: New Roles and R e l a t i o n s h i p s . London: Macmillan. YOUNG, Ken and L i z M i l l s . 1982: 'The De c l i n e of Urban Economies', i n R. Rose and E. Page (eds.) F i s c a l S t r e s s i n C i t i e s . London: Cambridge U n i v e r s i t y P r e s s . YOUNG, Michael and Marianne Rigge. 1983: Rev o l u t i o n from Within : Cooperatives and Cooperation i n B r i t i s h I ndustry. London: Weidenfeld and N i c o l s o n .

Cite

Citation Scheme:

    

Usage Statistics

Country Views Downloads
United Kingdom 5 0
United States 4 1
China 4 12
Japan 3 0
Canada 1 0
City Views Downloads
Unknown 6 8
Beijing 4 0
Tokyo 3 0
Ashburn 3 0
Norton 1 0

{[{ mDataHeader[type] }]} {[{ month[type] }]} {[{ tData[type] }]}
Download Stats

Share

Embed

Customize your widget with the following options, then copy and paste the code below into the HTML of your page to embed this item in your website.
                        
                            <div id="ubcOpenCollectionsWidgetDisplay">
                            <script id="ubcOpenCollectionsWidget"
                            src="{[{embed.src}]}"
                            data-item="{[{embed.item}]}"
                            data-collection="{[{embed.collection}]}"
                            data-metadata="{[{embed.showMetadata}]}"
                            data-width="{[{embed.width}]}"
                            async >
                            </script>
                            </div>
                        
                    
IIIF logo Our image viewer uses the IIIF 2.0 standard. To load this item in other compatible viewers, use this url:
http://iiif.library.ubc.ca/presentation/dsp.831.1-0096339/manifest

Comment

Related Items