the

Universityof

Greenwich

Teaching excellence for 100 years

Transformational localism in the Thames Gateway

James Kennell

Graham Symon

Economic Development Resource Centre

the

Universityof

Greenwich

Teaching excellence for 100 years

Context

Economic / Fiscal CrisisDeveloping policy discoursesRegionalism to LocalismNew governance arrangements for

economic development

the

Universityof

Greenwich

Teaching excellence for 100 years

The ‘New Localism’

We’ve been here before? Rhetoric of:

• decentralisation / devolution

• ‘empowerment’ Reality:

• de facto centralisation of administrative control

• marginalisation of local government?

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Universityof

Greenwich

Teaching excellence for 100 years

The New Localism

What’s new?

• Necessity; the mother of invention?

• Innovation• less reliance on public sector• manufacturing / export?

• Real solutions to crisis/decline can only be found locally

• Local communities:• policy, business, civil society, citizens• partnerships

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Universityof

Greenwich

Teaching excellence for 100 years

Thames Gateway

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Universityof

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Teaching excellence for 100 years

Options / Models for the Thames Gateway

Archetypes:

• ‘Bureaucratic’

• ‘Rentier’

• ‘Insurgency’

• ‘Transformationalism’

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Universityof

Greenwich

Teaching excellence for 100 years

‘Bureaucratic’ – state-driven

Classic social democratic scenarioState expansion post-1945

• Keynesian, Berevidge

Paternalist?Corporatist?Top-down ‘Steering’ and ‘rowing’

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Universityof

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Teaching excellence for 100 years

‘Rentier’ – corporate driven

Rhetoric of ‘what business needs/wants’ Attracting / incentivising investment Public funds

• grants (within what European law permits!)• tax breaks

Social externalities? How much licence should industry be

allowed? Diversity?

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Universityof

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Teaching excellence for 100 years

‘Insurgency’ – community driven

Economic decline / transition resulting in social problems Manifested in resistance, disaffection Citizen action hallmark of healthy democracy ‘Bottom-up’ Coalitions of civil society, faith, ethnic, labour organisations,

campaigning, seeking change• North America (‘Rust Belt’)• South America (various)• UK (TELCO, community unionism)

Energy can be harnessed under the right circumstances

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Universityof

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Teaching excellence for 100 years

‘Transformational’ – the integrated approach

Allowing the conditions to prevail that enable complementary contributions from stakeholders• State: robust but not overbearing; as local as possible• Industry: investment / entrepreneurialism / sustainable economic

activity crucial; social externalities should be optimised• Communities: cynicism / alienation must be overcome; rhetoric must

meet reality• Policy makers should not fear collective action

Ultimately, what works locally is down to contingent factors:• Arms-length central state• Responsible business• Engaged communities

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Universityof

Greenwich

Teaching excellence for 100 years

Some practical interventions for the Thames Gateway Localising finance

• a Thames Gateway Investment Bond• Local currency?

Localising ownership• assets / resources / capacity freed from central state control .... but beware

the ‘Rentier’

Localising opportunity• Reinstating historic role of municipality in economic governance matters

• Production and consumption brought into proximity

• Partnerships: skills / labour markets

Localising accountability• Not only local action, but local control• Local Development Index (LDI)• Informatting

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Universityof

Greenwich

Teaching excellence for 100 years

Concluding thoughts

Thames Gateway faces challenges (in common with

many geographies)

Localism may provide key opportunities

Must develop institutions that foster innovation and

trust between stakeholders

Radical action may be necessary