Regionalism and Economic Development:

1
(No Transcript)
2

• Regionalism and Economic Development
• Achieving an Efficient Framework
• Prof Andrew Beer
• School of Geography
• Flinders University, Adelaide
• Andrew.beer_at_flinders.edu.au

3
Agenda

• Nature of the Problem
• Neoliberalism
• Responses to Economic Restructuring as an Example
  of Regional Development
• More General Arguments
• Conclusion

4
The Nature of the Problem

• Unequal outcomes in the economic performance of
  Australias regions
• Income and growth differentials within States and
  between States
• A Federal dimension to this problem
• Australian Government has a responsibility for
  the growth of the national economy as a whole
• State Governments tend to see States as regions
  and pay great attention to their performance
  relative to each other
• Basic political dynamics favour some regions
  especially metropolitan regions over others
• A non-aggression pact, but is it honoured in the
  breach?
• Outcomes exacerbated by neoliberal philosophies

5
Neoliberalism and Regional Economic Development

• Over last 20 years best practice in economic
  development is regionally focussed and delivered
• More responsive to global markets
• Empowers the community and mobilises community
  resources
• Better meets the needs of the region
• But, also plays to neoliberal philosophies of
  government that see central governments wash
  their hands of responsibility for economic
  development

6
Neoliberalism

• Peck and Tickell (2002) a general model of
  noeoliberalism based on free market economic
  theory and enacted through the processes of
  globalisation and contemporary government reform.
• ONeil and Argent (2005) have argued
• neoliberalism presents an agenda of
  possibilities for those with the power to enact
  change. But this agenda must be devised and
  playe out in historical and geographical
  circumstances.
• Critically, also a powerful force for denying
  action on the part of government

7
Neoliberalism in operation Economic
restructuring in Southern Adelaide

• Employment loss at MMAL
• Prime Minister announced job losses in April 2004
• 1,167 jobs lost 700 involuntary redundancies
• A Structural Adjustment Fund for SA aimed at
  attracting new investment worth approx 45 m
• Five sub committees, including SSIDWG the only
  regional response
• A region already suffering from closure of Port
  Stanvac and downturn in wine industry

8
(No Transcript)
9
(No Transcript)
10
(No Transcript)
11
Outcomes of SAF

• Funds fully committed and clear evidence of an
  impact but
• While 1200 jobs notionally created, half will be
  in Northern Adelaide, largely Edinburgh Park
• Government funding not informed by priorities of
  the region
• No funds for long term regional action once off
  funding
• Economic future of the region no more certain
  than before
• SAF not a best practice regional economic
  development activity
• Key lessons
• no long term central government commitment to
  the region
• Federal money, enacted through the State does not
  result in good outcomes
• UK Government did better in dealing with
  Longbridge where powerful RDA took a long term
  strategic approach with their 7,000 sacked
  workers

12
Extending the Argument

• SAF is simply an example of broader failings in
  regional development that result from our Federal
  structure, the division of responsibilities
  between the tiers of government and neoliberalism
• Practitioners report
• They are not involved with or consulted about
  large scale development projects
• Their funding is insecure and this forces them to
  engage in the projects they can get funded for,
  rather than the work the region needs
• Insufficient funds in total are provided for
  regional development
• Management structures imposed on them by central
  governments often create distance between them
  and the broader community
• Considerable time needs to be spent lobbying
  central governments for infrastructure and other
  investment
• The key partnerships have to be with central
  governments in order to secure funding into the
  future

13
Conclusion

• Other nations have more effective regional
  development frameworks than Australia
• The US model, for example, is a Federal model but
  local governments are stronger financially and
  politically with positive impacts
• SAF is an example of the poor fit between
  centrally driven regional initiatives and the
  real needs of the region
• And neoliberalism plays it role, with govts
  limited in their engagement
• Regions need more political power if they are to
  achieve better economic development outcomes and
  a higher level of wellbeing for their citizens