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Aims Examine the regional problems experienced by other major OECD countries up to the late 1970s

An international problem: Regional policy in other major OECD countries. Aims Examine the regional problems experienced by other major OECD countries up to the late 1970s Review the policies employed by governments and other agencies to ameliorate regional disparities

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Aims Examine the regional problems experienced by other major OECD countries up to the late 1970s

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  1. An international problem: Regional policy in other major OECD countries. Aims • Examine the regional problems experienced by other major OECD countries up to the late 1970s • Review the policies employed by governments and other agencies to ameliorate regional disparities • Compare and contrast the policy approaches adopted by the major OECD countries. • Study carried out by OECD in latter part of 70’s, aim to promote economic growth and best practice. • Background - economic slowdown, industrial restructuring, rising unemployment, widening economic disparities. • Concentrate on Canada, France, West Germany, Italy, Japan, USA and UK Regional and Local Economics (RELOCE) Lecture slides – Lecture 7b

  2. National situation • Canada - Unemployment on the high side - labour force growing faster than the population - GNP growth 8.5% pa - structural change (services) • France - Unemployment increasing - labour force growth driven by immigration - GDP increased 66% in 9 years - productivity up -structural change (industry & services) • Germany - Unemployment increasing - labour force growing migrant workers - GNP growth 4.7% pa - structural change (manufacturing & services) • Italy - Unemployment on the increase - increasing labour force and high emigration - GNP growth 5.6% pa - high levels of fixed investment - low incomes - structural change (manufacturing & services) Regional and Local Economics (RELOCE) Lecture slides – Lecture 7b

  3. National situation (Cont.) • Japan -Little official unemployment - high population densities - GNP grown 2.5 times in 10 years - massive industrial expansion Rural urban drift • USA - Unemployment on the high side (8.5%) - GNP growth 5.3% pa - uneven development - largest economy - income levels high • UK - Unemployment increasing <4% - labour force restructuring - GNP growth 2.5% pa - structural change (manufacturing decline) Regional and Local Economics (RELOCE) Lecture slides – Lecture 7b

  4. Regional problems • Canada – Spatial development uneven - disparities in per capita income, investment and unemployment • France – Rural urban shift - overheating and slowdown - growth in Paris decline in countryside and old industrial areas - disparities in per capita income • Germany - Rural urban shift - uneven employment growth - disparities in per capita income - distressed areas small with week industrial structure • Italy - Dualism - backward south, little industrialisation - relative disadvantage widespread and concentrated - Rural urban drift Regional and Local Economics (RELOCE) Lecture slides – Lecture 7b

  5. Regional problems (Cont.) • Japan – Spatial development uneven - disparities in per capita income - signs of counter urbanisation - congestion - over and under concentration • USA – post urbanisation - population and industrial displacement - energy - transport - metropolitan constraint - rural poverty - urban distress • UK - Some counter urbanisation - industrial contraction concentrated - disparities - migration - stagnation - worn out infrastructure Regional and Local Economics (RELOCE) Lecture slides – Lecture 7b

  6. Regional policies • Canada – (2% of national budget) Industrial incentives (Capital and Labour): Infrastructure (depressed areas only): Social and resource development (training and natural resource) • France – (0.5% of total government budget) Employment guidance (location controls, subsidy): Urban town policy (growth poles, land and urbanisation): Infrastructure (transport and communications) • Germany - (0.13% of national income) Industrial incentives (Grants, tax incentives, government contracts): Infrastructure (industrial sites, tourism, training) • Italy - 10% of central government spending) Direct action by the State (land reform, investment, location controls): Industrial incentives (Capital, tax breaks, graded): Cassa per il Meezzogiorno (Infrastructure, training) Regional and Local Economics (RELOCE) Lecture slides – Lecture 7b

  7. Regional policies (Cont.) • Japan – (0.73% of public consumption) Industrial incentives (to move): Infrastructure (grants to local government): Nation-wide planning system (agencies - land use ED, venture finance) • USA – Federal measures (infrastructure, spending, grants, tax): Departmental and agency (public works, training): Economic Development Administration (business loans, grants, planning) • UK - (1.9% of government expenditure) Industrial incentives (Capital and Labour): Infrastructure (sites, social capital, rural development): Relocation (controls, dispersal, strategic planning) Regional and Local Economics (RELOCE) Lecture slides – Lecture 7b

  8. Regional policy organisation • Canada – Centralised but with local delivery • France – Centralised with regional co-ordination • Germany - Shared between Federal and Regional Government • Italy - Central government co-ordination regional bodies Regional and Local Economics (RELOCE) Lecture slides – Lecture 7b

  9. Regional policy organisation (Cont.) • Japan – Central government ministries, special bodies, local government. • USA – Federal objectives, criteria & funding local delivery • UK - Centralised, local input land use (within national guidelines) no national plan Regional and Local Economics (RELOCE) Lecture slides – Lecture 7b

  10. Regional and Local Economics (RELOCE) Lecture slides – Lecture 7b

  11. Conclusions • All major OECD countries have regional disparities and problems • Difficult to estimate a comparative measures of expenditure across all countries - Italy, the UK and Canada are amongst the highest spenders • European countries employ far more instruments aimed directly at stimulating industry than those in Japan and the Americas. • Almost all countries use subsidised loans or loan guarantees, investment grants and make available industrial land/sites, • Few offer grants towards employment and labour costs, state shareholding or overt preferential treatment in award of government contracts Regional and Local Economics (RELOCE) Lecture slides – Lecture 7b

  12. Further reading • Organisation of Economic Co-operation and Development, (1977) Regional Policies - The Current Outlook, OECD, Paris • Organisation of Economic Co-operation and Development, (1976) Regional Problems and Policies - In OECD Countries, Vol.1, OECD, Paris • Organisation of Economic Co-operation and Development, (1976) Regional Problems and Policies - In OECD Countries, Vol.2, OECD, Paris • Organisation of Economic Co-operation and Development, (1980) Regional Policies - In the United States, OECD, Paris • Organisation of Economic Co-operation and Development, (1979) The Role of industrial Incentives in Regional Development, OECD, Paris Regional and Local Economics (RELOCE) Lecture slides – Lecture 7b

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