Is Devolution Democratization?

Recent attempts at introducing new forms of governance in forest management in India have focused on devolution to user-groups or village level “participatory committees.” Success or failure is attributed to the presence or absence of “social capital” among these groups. These groups have never existed outside the state, however, and social relations, including social capital, are continually being transformed by administrative and market forces. This paper argues that what matters is not the degree of government intervention, i.e., more or less devolution, or the degree of social capital among local communities, but state accountability. This can only be ensured through addressing questions of political reform.     

Sustainable development and the local economy

This article sets out the divergence so far between the developing “environmental economics” and local authority “green strategies”. We propose a model of environmentally sustainable economic development. Our argument outlines “environmental efficiency” and more stringent “sustainability” objectives. It reviews current local authority activities and practices. All are within the “environmental efficiency” framework. It concludes by identifying opportunities created by recent government commitment to environmental improvement targets and argues that local authorities are well placed to take up the challenge of developing sustainable development in local economies. It suggests that this process will involve intervention in the market in a way not dissimilar to that adopted in the 1980s by local authorities concerned with developing socially progressive economic strategies and that this process might be termed “social environmentalism”.     

Local governance and urban prospects: The potential of city pride

The recent re-alignment of urban policy, involving the promotion of a diversity of public-private partnerships, a fostering of local business elites, and the increasing importance of city marketing and image reconstruction, all point in the direction of a “new localism” in urban regeneration. Focusing on the potential of the recent City Pride initiative in building up consensual and holistic “visions” of Britain's main cities, the following set of papers assess the role of the “urban prospectus” in fostering local coalitions and the benefits of mutuality in order to address issues of resource procurement and allocation. The potential of this new approach for targeting large-scale programme and project investment in the local economy, infra-structural priorities and aspects of social cohesion are all considered by the contributing authors, who look specifically at recent developments in London, Manchester and Birmingham.     

Local economies and business networks re-visited. A case study of business and professional services in London

This article describes networks among business and professional services (BPS) firms in London, and deals with the relationship between the businesses interviewed and their locality. The article is based on empirical material derived from a large number of interviews with BPS firms in central London. It is noted that lateral links between firms are poor, relationships are better characterised as competitive rather than co-operative, and businesses tend to take little interest in the various support agencies. Although all the businesses interviewed placed great emphasis on the development of close, co-operative relationships with clients, markets are geographically diffuse. However, despite the weakness of localised, inter-firm links, businesses were able to identify a number of valuable and distinctive assets attached to their current location, which implies that the “local economy” continues to be important. The article finishes briefly with some implications for local economies and appropriate methods of business support.     

Third time right? The EC's third action programme for women

Amid the welter of “new initiatives” from Brussels promoting social integration is a programme for women which appears to offer something new. Nothing in the way of new money, nor novel employment projects, rather a distinctly feminist flavour: “equality” is now to be integrated “into general mainstream policy”; grassroot action - organisation at the local and regional level - is required; working life has to be “reconciled” with family responsibilities and, finally, “women's unequal representation in all spheres of decision making” has to be addressed.

How far this rhetoric will translate into enhanced employment prospects for women, especially women in this country, is nevertheless highly problematic.     

Integrating the economic and the social. Policy and institutional change in local economic strategy

Since the mid-1990s policy “integration” has become an increasingly salient theme within central government and local government policy-making. In this paper we report survey findings tracing the recent emergence of explicitly “integrated” local economic and social strategies, and the evolving position of ostensibly social themes in local economic strategies. These highlight some of the more important policy and institutional changes that have characterised local economic strategy in the post-Thatcher era. Subsequently, in the light of this initial data we outline a number of possible directions for further research.     

It is time to start “Rethinking Socialist Economics”

For the next few years, economic and employment policies will be dominated by the Conservative Government's programme. However, the debate on “alternative” policies should not be allowed to die. This review suggests that the issues raised by “Rethinking Socialist Economics” deserves serious attention.     

Re-booting the local economy: Information and communication technologies in local economic strategy

Many local economic strategies today include reference to a communications infrastructure that involves electronic networks alongside that of roads and railways. Information and communication technologies (ICTs), often referred to as the “information superhighway” or informatics, are considered useful to stimulate local economic activity. This paper, based on a North East case study, suggests that the importance of ICTs to local economic strategy lies in the rationale of key local strategy makers, while the use of ICTs for local economic development means that the local governance of ICTs will become a salient feature in future economic development.     

The role of subcontracting in SME development in Indonesia:: Micro-level evidence from the metalworking and machinery industry

This study investigates whether subcontracting linkages are an important support mechanism for the development of Indonesian small- and medium-scale enterprises (SMEs). It estimates production functions and calculates indices of total factor productivity (TFP) based on micro-level data from 60 metalworking and machinery firms that supply their products to automobile, motorcycle, agricultural machinery and bicycle manufacturers. The estimation results confirm our main hypothesis that inter-firm cooperation through subcontracting ties increases productivity of Indonesian SMEs. This study implies that the situation where subcontracting ties in Indonesia did not function well in supporting SMEs has been changing recently. Better financial access and business continuity are important in facilitating subcontracting transactions, which can provide SMEs with support necessary for improving productivity. A comparison of TFP indices indicates differences in productivity between firm groups. Larger SMEs, non-pribumi SMEs and SMEs producing automotive/motorcycle parts have, in general, higher TFP than their counterparts.     

The community programme revisited

This paper examines the lessons for the New Deal era of some older strands in UK and European labour market measures; the Community Programme of the 1980s and the experience of “entreprises d'insertion in France, Spain and the Netherlands. It considers whether the institutional infrastructure of the New Deal is appropriate for the realisation of “intermediate labour markets”. This raises some further questions; whether ILMs are about creating employment or merely redistributing it, and whether it would be preferable to use the “benefit transfer principle” to produce social wealth without regard for commercial viability.     

Managed workspace. Do tenants stay too long?

The managed workspace format rose to prominence as a tool for local economic development during the 1980s, Its popularity has continued into the 1990s, offering support for new and small firms in their early stages of operation through the provision of suitable premises and a “protected environment”. In this article, evidence is presented to indicate that a significant proportion of tenant firms are, in fact, remaining in managed workspace well beyond the early stages of operation for which it is primarily intended, and we examine the reasons for this. Most significantly, this examination reveals that the added costs associated with the provision of the “protected environment” often appear to produce little in the way of added value for these more mature tenant firms, and on this basis we conclude with a call for a reappraisal of the role for managed workspace in local economic development policies.     

Are Environmental Social Movements Socially Exclusive? An Historical Study from Thailand

Environmental social movements in developing countries are often portrayed as democratizing but may contain important social divisions. This paper presents a new methodology to analyze the social composition and underlying political messages of movements. Nearly 5 000 newspaper reports during 1968–2000 in Thailand are analyzed to indicate the participation of middle and lower classes, and their association with “green” (conservationist) and “red-green” (livelihoods-oriented) environmental values. Results show middle-class “green” activism has dominated forests activism, but lower-class “red-green” activism has grown for forests and pollution. Newspapers, however, portray all environmentalism as “democratization,” suggesting that the possible exclusiveness of some environmental norms is unacknowledged.     

Roles of Formal Institutions and Social Capital in Innovation Activities: A Cross-Country Analysis

This paper investigates the roles of formal institutions and social capital in countries’ innovation activities. The sample consists of 62 developed and developing countries, using the ordinary least squares robust standard error estimations, instrumental variable (IV) estimators, and quantile regression. The empirical results indicate that formal institutions and social capital complement one another in influencing countries’ innovations level. In terms of the relative importance of both in promoting innovation activities, the social capital has greater role compared to formal institutions. Furthermore, the empirical result suggests that innovation level tends to be higher in countries with higher social capital. We also use the quantile regression to estimate whether the relationship among formal institutions, social capital, and innovation differs at different points in the conditional distribution of innovation. The results demonstrate that formal institutions yield a significant positive impact only after exceeding in 50th quantile, whereas social capital do so at lower 10th quantile. Therefore, in addition to a policy focus on improving the formal institutions, countries with a low level of innovation should enrich social capital in their promotion of innovation activity.     

Employment change in the 1990s: Findings from a study in Nottingham

The paper reports from a study of employment change from a sample of members of Nottinghamshire Chamber of Commerce. The main focus is a comparison of the workers who lost their jobs and of the new recruits during the period January 1990 — September 1991. The study produced clear evidence of. the wide scale nature of workforce adjustment, although redundancy was the most important labour shedding method adopted, other methods were used. Manufacturing and service companies surveyed shed “permanent” jobs as well as part-time “flexible” jobs. Although far more jobs were lost than were created, half the surveyed companies did, in fact, recruit staff.     

Telecommunications and the local economy: Some emerging policy issues

This paper provides a brief overview of the issues which surround local economic development and telecommunications. The implications of telecommunications for urban and regional development in the present “information-based” era are outlined and the seven basic features of this development are described. Some necessary steps and conceptual approaches to developing specifically local development policies in this new area are then expounded by way of the development of a “framework for the local policy maker”. Finally, several leading attempts at developing locally controlled telecommunications infrastructures in the UK, as agents of economic and social development, are briefly analysed.     

The “North-South” controversy and Britain's regional problems

The extent of regional economic disparities in Britain has recently become the focus of considerable controversy. Attempts have been made to portray the existing situation in terms of a “North-South divide” or as “two nations”. Opponents of this point of view have argued that no such stark division of the country exists, and that prosperous areas can be found in parts of the North just as depressed areas can be found in parts of the South.

This paper considers the pattern of regional disparities which now prevails in Britain. Section I is a detailed presentation of the existing situation. Section II considers the question of how sharp a division there now is between different parts of Britain, followed, in Section III, by a discussion of the process of change which has brought about the regional disparities which we now observe. Implications for government policy are then considered.     

Effects of Social Capital,Top Executive Attributes and R＆D on Firm Value in Chinese Small and Medium-sized Enterprises

This study uses an unbalanced panel data analysis to examine the effects of social capital, top executive attributes and R ＆D on firm value in Chinese small and medium-sized enterprises （SMEs） listed on the Shenzhen Stock Exchange Small and Medium-sized Enterprises Board from 2007 to 2011. There are several interesting findings. First, the gender （male） and academic degree of the chairperson in the SMEs have a positive and significant effect on firm value. Second, social capital （measured by politieal connections, managerial business association networks and technology association networks） and R＆D have a positive effect on SME firm value. Third, the effect of politieal connections on firm value for state-owned enterprises （SOEs） is stronger than for non-SOEs, while the effect of business and technology networks on firm value for non-SOEs is stronger than for SOEs. Our study has important policy implications for SMEs that want to compete successfully in China.     

Prestige project developments: Economic renaissance or economic myth? A case study of Birmingham

This article examines the City of Birmingham's attempt to generate economic activity through the construction of “prestige projects” and the refurbishment of its Central Business District in the 1980s. Birmingham City Council's claims to have generated thousands of jobs and £2 billion of private sector investment from its prestige developments are examined and the distributional impacts of the “claimed” job creation totals are also detailed. The article concludes that the global investment and employment figures claimed have been exaggerated and many of the jobs directly generated have contributed to the growth of the secondary labour market in Birmingham.     

Regional competitiveness indicators. A reassessment of method

This paper takes a fresh look at the important issue of regional competitiveness in the light of the recent publication of indicators of competitiveness by the DTI (1998). We set our analysis within the theoretical framework provided by Porter (1990) and our intention is to improve on these “official” indicators and also upon those of Gudgin (1996). Using a series of proxy variables which measure success in the areas deemed essential by the theory, we present evidence that the relative ranking of regions should be re-examined and provide a method which will allow policy makers to focus more directly on the specific areas that maximise regional performance.     

Cable and local economic development: Local authority roles and responses

There has been much recent comment about the development of the “information superhighway” and the opportunities that this will create for economic development. Yet elements of such a superhighway are already in place through the activities of cable companies in the UK This paper outlines the development of cable to date and examines the response of local authorities to such developments.