The Political Economy of Sub-National Economic Development
Chapter 2: Government and governance
This chapter, first, offers an introduction to the regulation approach (RA) and the new localism. Second, the RA is extended through Jessop’s idea of the Schumpeterian Workfare State (SWS), economic development is associated with governance, in contrast to a Keynesian Welfare State (KWS) government. Governance is a way of conceptualising the growth of unelected local agencies and public-private partner_ships that are being established alongside traditional forms of management undertaken by local government. The chapter argues that the contemporary period is one of economic governance, as opposed to economic government. Third, the emergence of neoliberal economic governance in the United Kingdom is discussed. Fourth, two contrasting forms of UK economic governance are evaluated: a centrally imposed ‘top-down’ enterprise partnership, illustrated through Business Link in England, is contrasted with a nascent ‘bottom-up’ social economy-based partnership model popularized in Glasgow, Scotland.
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