Bailouts, bankruptcy and the bonfire of the QUANGOs: the track record of economic development programmes in the South Wales Valleys and Detroit.

Abstract:

The role of sub-national governments in promoting economic development has increased in salience in an era of increased political decentralisation, advancing globalisation and, particularly, in the aftermath of the global financial crisis. Despite this, the deployment of the specific policy instruments used to promote development by such entities continues to be relatively under-examined and subject to considerable data constraints. In order to more effectively probe publicly-directed efforts to revitalise the economies of particularly distressed regions pursued by sub-national governments, this dissertation engages in the first comparative overview of economic development initiatives employed within the Valleys region of South Wales and the U.S. city of Detroit.

Given broadly comparable economic trajectories; characterised by the deindustrialisation of a hegemonic industry, yet initially divergent political settlements, this provides it with a unique analytical vantage point from which to consider such programmes, their structure, assumptions, objectives and, when possible, effects. The dissertation therefore reviews and synthesises the relevant, programme-specific, literature while grounding it in the appropriate historical and political context to provide an overview - and conduct an initial analysis of - the primary development initiatives pursued in both areas. In the process of doing so, it investigates, categorises and identifies specific trends which are observable within the city, the region and both. It particularly identifies variable levels of programme-level data and evaluation, a tendency towards firm-oriented or “supply-side” initiatives, operational confusion regarding the regional and urban scale at which efforts can be directed, distributional and directional issues within their funding and an inconsistent recognition of economic theory and developments within it. It recommends a greater empiricism with regard to programme monitoring and evaluation and a more frequent engagement with academic research and theory by relevant policymakers: especially relating to conditions which these indicate as prerequisites for long-term economic growth.

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