Politics and Economic Development: Why Governments Adopt Different Strategies to Induce Economic Growth

This article assesses the forces that drive governments to engage in economic development activity and attempts to explain why communities adopt different strategies to bring about the common goal of economic well-being. I address this issue at the state policy level by assessing the relationship between economic development strategy and theories of policy adoption in a pooled times series analysis using indicators of interstate competition, fiscal stress, and state ideology collected between 1983 and 1994. I find that economic development strategy choices are largely a function of interjurisdictional competition. The implications of my findings are discussed.     

Economic Globalization and its Problems: A Response to Eaton,Herpel, and Moe-Lobeda and Spencer

Abstract

Building on the other papers in this issue, I offer a theological critique of economic globalization. The theory, or "theology" that supports it leads people of good will, despite the many negative consequences of the globalized pursuit of growth, to pursue such growth, as measured by GDP, as the goal of economic policy. This economistic theology takes no account of human community or ecological sustainability. Until it is changed economists will continue to direct us toward catastrophe.     

Drugs, Sex, Rock, and Roll: A Theory of Morality Politics

I assume that (a) the demand for sin is characterized by heterogeneous preferences and (b) private behavior diverges from public statements. From these assumptions, in the first section of this article I derive a series of propositions about morality policy. Rational politicians will perceive that demand for restrictive policies will be greater than it actually is and thus compete to produce more extreme policies. Bureaucracies will lack expertise and thus will not provide a check on political excesses. This "politics of sin" can be translated into a contemporary form of redistributive morality policy politics if the issue can be refrained by political actors to legitimate an opposition position. In the second portion of the article, I argue formally that sin policies in general will fail because they operate on subsets of the population that are more and more resistant to the policy instruments available to government. I conclude with potential expansions of this theory, including how it might be generalized to other types of public policy.     

Economic Governance and the Evolution of Industrial Districts Under Globalization: The Case of Two Mature European Industrial Districts

For many mature European industrial districts, the present decade has been one of trying (and often failing) to meet the difficult challenges posed by the rising tide of globalization. The future of these districts in the new global economy has become a key issue for regional and local development policy, and, in this respect, it has sparked a renewed interest in economic governance. Economic governance is important in that it underpins a region's long-term economic development path. This article is a contribution to the study of the economic governance of industrial districts and the related policy debate. The article does so by specifically exploring the economic governance issue by considering the experiences and challenges currently facing two mature European industrial districts in the global economy.     

Dancing to the Rhythms of the Fossil Fuel Landscape: Landscape Inertia and the Temporal Limits to Market‐Based Climate Policy

This article makes a contribution to the critique of market‐based mechanisms for climate and energy policy. It explores the environmental effectiveness of market instruments by engaging a broadly conceived “fossil fuel landscape”, or the material, social, and political inertia of fossil energy dependence, as a factor delimiting policy outcomes. The argument is developed through a focus on the idea of economic efficiency as a key ideological construct underlying market‐based policy, and draws on examples from two different market instruments, namely the EU Emissions Trading Scheme, and the Flemish tradable green certificate scheme. I argue that an understanding of the shortcomings of these, and similar, policies requires acknowledgment of the political and socio‐economic power that emanates from the temporal dynamics of fossil fuel capitalism, which are reproduced when economic efficiency becomes the key focus of climate policy.     

Heterogeneous impacts of China's economic and development zone program

This paper examines the impact of economic and development zones (EDZs) on the productivity of incumbent firms in China. To deal with the selection issue, I first take into account potentially different selection mechanisms across two popular types of EDZs—economic and technological development zones (ETDZs) and high‐tech development zones (HTDZs)—by relying on multiple treatment propensity scores matching techniques. Next, I apply the difference‐in‐differences estimator to the matched sample and conduct an event study analysis. The results show that the respective effects of ETDZs and HTDZs on firm productivity are positive, but subject to a nonlinear trend over time. The size of the productivity gains depends critically on the type of EDZ, however. A new HTDZ (ETDZ) leads to an average productivity gain of up to 30.2% (18.4%) for incumbent firms in the 5 years after the zone was created. These findings suggest that the size of productivity spillovers for spatially targeted firms differ quite significantly depending on the strategic development and policy goals of the EDZ: HTDZs that focus on promoting indigenous‐based factors of learning lead to higher productivity spillovers compared with ETDZs that focus on promoting extra‐local linkages.     

Making Space for “Neo‐communitarianism”? The Third Sector,State and Civil Society in the UK

During the 1990s the urban became an important "institutional laboratory" for state‐initiated policy experiments to address the social costs and political repercussions of economic polarisation and social exclusion associated with neo‐liberalism. One such policy experiment has been neo‐communitarianism, emphasising the contribution of the "third sector" to improving social welfare and reinvigorating a sense of civil society. Focusing on the UK, I examine the background to and implications of the emergence of a neo‐communitarian strategy under the "new" Labour government, which came to power in 1997. First, I consider the repositioning of the third sector within contemporary policy discourse as a result of the Labour government's programme of welfare reforms and Prime Minister Blair's "Third Way" political philosophy, which attempts to combine neo‐liberalism with a neo‐communitarian stance of stressing the importance of civil society for social cohesion. Then, I draw on Foucauldian notions of governmentality to examine how Labour's neo‐communitarian agenda has involved a fundamental reconfiguration of the governance of the third sector, centred on the creation of government–voluntary sector "compacts" at national and local levels. These compacts are of strategic importance for the restructuring of the UK third sector and so the local implications of such restructuring are then considered. In particular, case study evidence from Glasgow is used to critically evaluate government claims that the third sector can contribute to the "reinvigoration of civic life" by highlighting the importance of the internal characteristics and political environment of local third sector organisations for the differential development of social capital and citizenship.     

Introduction: film policy in a globalised cultural economy

This special issue on ‘Film Policy in a Globalised Cultural Economy’ is devoted to the changing economic and technological context in which filmmaking occurs, the policy responses that these changes have generated and their consequences for the pursuit of cultural objectives. The issue offers discussions of the general economic, technological and political shifts shaping the global film industry as well as case-studies examining the specific policies adopted by different states. While these indicate how governments have been obliged to respond to the economic and technological changes wrought by globalisation they also highlight the variations in approach to film policy and the continuation of tensions between economic and cultural, and public and private, objectives.     

The Right Tool for the Job: The Canalization of Presidential Policy Attention by Policy Instrument

This article investigates how presidential policy attention is allocated across policy tools and whether there is a channeling of tool use by policy area. I also examine whether there is evidence of disproportionate information processing within presidential policy attention allocation and whether it is common across presidential policy tools. Presidential messages, hearings on administrations' legislative proposals, amicus briefs, and executive orders are employed to capture presidential policy tools. The allocation of attention via these four instruments is examined from 1957–2007 in the policy areas of defense and foreign affairs, macroeconomics, banking and commerce, civil rights, law and crime, and labor and immigration. I find that there is a canalization of presidential policy attention by instrument, and that the opportunity structure of policy tools shapes attention allocation. Additionally, I find evidence for punctuated equilibrium theory in the allocation of presidential policy attention via these four tools. When presidents do shift their attention to an issue area, they often attack the issue with some coordination of their policy instruments.     

The Influence Of States On Federal Policy Adoptions

This article examines whether stales, in the role of "laboratories of democracy," influence federal policy adoptions. Taking the recent past as the time frame, the article begins by examining major federal legislation to gauge the extern to which stale models were an influence. Following this, the focus shifts to important slate initiatives of the early 1980s, and their impact on subsequent federal legislation. The article concludes that the nature of the policy issue and the accompanying political dynamics are critical in determining whether states act as laboratories of democracy.     

NEW DIRECTIONS FOR URBAN ECONOMIC MODELS OF LAND USE CHANGE: INCORPORATING SPATIAL DYNAMICS AND HETEROGENEITY*

ABSTRACT We review the usefulness of urban spatial economic models of land use change for the study and policy analysis of spatial land use–environment interactions. We find that meaningful progress has been made in econometric and monocentric models extended to account for multiple sources of spatial heterogeneity and in the development of general equilibrium models with spatial dynamics. Despite these advances, more work is needed in developing models with greater realism. Most agent‐based computational models of urban land use change currently lack economic fundamentals, but provide a flexible means of linking microlevel behavior and interactions with macrolevel land use dynamics. In combination with empirical methods to identify parameters, this framework provides a promising approach to modeling spatial land use dynamics and policy effects.     

Gender and Australian Aid Policy: can women's rights be advanced within a neo-liberal framework?

The issue of gender and development has been an important part of the development discourse since the Mexico City Women Conference in 1973. This concern has been very slow to transform itself into policy. For development agencies including AusAID it has been a subsidiary policy area or an add-on, as a recipe might say'add women and stir'. The White Paper of 2007 brought gender to the centre of policy as an overarching principle. The question that arises is the extent to which these policies fit into or are driven by the neo-liberal paradigm underpinning the aid program, or if these policies can challenge it by positing a rights agenda. The 2007 Gender policy tries to sit between the two in that it focuses on the economic role that women can play in fostering growth on the one hand, and the denial of human rights that marginalisation and disempowerment represents. This paper will explore the development of gender policy in AusAID, and compare it with the development of policy of other agencies that follow the neo-liberal framework in particular the World Bank and ADB. Finally the paper will make some suggestions for the new Labor government to strengthen the Policy.     

Sizing Up State Policy Innovation Research

In the literature on state policy innovation, there are three major explanations for what causes a government to adopt a new policy. One is the internal determinants model, which posits that the main factors leading a state to innovate are internal political, social and economic characteristics of the stale. The other two are diffusion models—the regional diffusion model, and the national interaction model—which see slate policy adoptions as emulations of earlier adoptions by other states. Each of the three models has been associated with a distinct strategy for empirical testing. The regional diffusion model has been tested with factor analysis, the national interaction model with time-series regression, and the internal determinants model with cross-sectional regression. In this paper, I explore the ability of these "single-explanation" methodologies to detect the true innovation process underlying stale policy adoptions, by applying these methodologies to data generated from simulated innovation processes with known characteristics. I find that the methodologies often yield incorrect conclusions about the character of innovation. I conclude by presenting an agenda for refining a superior alternative methodology: the event history analysis approach to state policy innovation research introduced by Berry and Berry (1990).     

Defining and Contesting Environmental Justice: Socio-natures and the Politics of Scale in the Delta

Abstract:  This article examines a contemporary process intended to "identify a strategy for managing the Sacramento–San Joaquin Delta as a sustainable ecosystem that would continue to support environmental and economic functions that are critical to the people of California" ( Delta Vision 2008 , http://deltavision.ca.gov/AboutDeltaVision.shtml ). Environmental injustices in the Delta are exacerbated by connected conflicts between knowledge and power, over the scale at which "environmental justice" and the "Delta" are understood through public policy. The rejection of environmental justice and the socio-natural in the Delta Vision process represents how contemporary policy processes are recreating and reenacting the power/knowledge dynamics that have defined the Delta, placed it on a path to ecological collapse and injected high levels of social and racial injustice in its landscape over the past 150 years. Our article combines an ethnographic and a historical geographical approach that contributes to the literature on environmental justice and scale and links with the literature on water governance and power to advance the task of defining environmental justice from the academic and policy perspectives.     

REGIONAL POPULATION–EMPLOYMENT DYNAMICS ACROSS DIFFERENT SECTORS OF THE ECONOMY*

ABSTRACT An important subset of the literature on agglomeration externalities hypothesizes that intrasectoral and intersectoral relations are endogenously determined in models of local and regional economic growth. Remarkably, structural adjustment models describing the spatio‐temporal dynamics of population and employment levels or growth traditionally do not include intersectoral economic dynamics. This paper argues and shows that allowing for economic linkages across sectors in these models adds considerable value, especially in forecasting. An econometric model of population–employment dynamics, in which sectoral variations in economic development are explicitly taken into account, is applied to a large urban planning policy proposal in the Netherlands. The empirical analyses suggest that population dynamics are largely exogenous, population changes drive employment in particular in the industry and retail sectors, and employment in all sectors depends strongly on intersectoral dynamics. Intersectoral dynamics appear as important drivers of regional sectoral employment changes; they are even more important than population changes, and their effect shows up clearly even within the Dutch institutional context where strict regulatory housing and planning restrictions are enforced.     

Policy Paradigms and Policy Change

Canadian policy towards Aboriginal Peoples is a complex regime involving property rights, constitutional entitlements, cultural concerns, and interlocking administrative, social, economic, and political aims and goals. Recent events related to constitution-making have led investigators to suggest that an old "assimilationist" paradigm established in colonial times is in the process of being replaced by a new policy paradigm of "self-government" and "peaceful coexistence." Utilizing a model of paradigmatic policy change put forward by Peter Hall, this paper examines the development of the old and new Canadian policy and the reasons for the transition between the two. In so doing, it establishes the need to focus more closely on the relationships existing between endogenous and exogenous sources of change in policy subsystems in understanding the liming and content of policy change.     

Emerging challenges of an urban creative economy: reflections on the governance of creative clusters in Taipei City

ABSTRACT

Retaining the global mobile creative class has been considered a crucial strategy for driving creative economic development in inner cities. However, implementing the global creative city strategy overemphasizes the significance of amenity-based creative economic landscapes over institutional collaborations in contributing to the situated governance dynamics of creative clusters. Drawing on insights from an evolutionary perspective, this paper scrutinizes the extent to which creative city strategies foster the situated development of creative clusters based on a case study of Taipei. The paper argues that developing the urban creative economy requires a context-specific understanding of the urbanization process, and should involve an institutional collaboration to articulate the socio-spatial co-evolution between the diversified dynamics of creative clusters and urban form. This paper advocates reflexive thinking on neoliberal city strategies to develop a conjunctive, diverse and substantial creative policy to support alternative paths of creative city development.     

Modeling Issue Definitions Using Quantitative Text Analysis

Issue definitions, the way policy issues are understood, are an important component for understanding the policymaking process. Research on issue definitions has been divided between a macro level that examines collective issue definitions and a micro level focusing on the ways in which policy actors frame policy issues. This article develops a model of issue definitions that assumes issues are multidimensional, competition exists among policy actors in defining issues, and that collective issue definitions can be understood as the aggregation of individual issue definitions. This model is then estimated using quantitative text analysis. While various approaches to text analysis and categorization have been used by scholars, latent Dirichlet allocation (LDA), a specific type of topic modeling, is used to estimate issue definitions. Using LDA, witness testimony taken from Congressional hearings that occurred from 1975 to 2012 about the issue of used nuclear fuel (UNF) is examined and seven distinct dimensions of the UNF debate are estimated. The construct validity of these dimensions is checked by testing them against two major policy changes that occurred in the UNF domain. I conclude with a discussion of the strengths and weakness of topic modeling, and how this approach could be used to test hypotheses drawn from several of the major policymaking theories.     

Institutionalising Future Geographies of Financial Inclusion: National Legitimacy Versus Local Autonomy in the British Credit Union Movement

In Great Britain, financial infrastructure withdrawal and community economic decline have focused attention on the capacity of locally "alternative" financial institutions to combat social and financial exclusion. This paper examines one such institution, the residential or "community" credit union, which provides a low-cost source of credit for members drawn from a common bond area usually based upon place of residence and/or work. Although community credit unions have traditionally been seen as providing individuals and communities with the opportunity to access credit and savings facilities in areas where there has been contraction in bank and building society provision (the financial "mainstream"), ongoing attempts exist to move away from the traditional role of community credit unions. This transition has set up three main challenges for the British credit union movement, discussed in this paper as follows: (1) a struggle over the attempt to redefine the "model" credit union within the national credit union movement; (2) the changing regulatory context for credit union development, including attempts to embrace credit unions within New Labour policies on social exclusion; and (3) a "local" challenge, including the incorporation of credit unions into community economic development initiatives. The paper considers how these challenges feed into wider understandings about the social relations, categorisation and autonomy of locally "alternative" financial institutions. We argue that future research on geographies of financial inclusion focusing on "alternative" institutions and their relationship to the financial mainstream needs to pay close critical attention to potential contradictions and tensions operating at different, yet intersecting spatial scales.     

Policy feedback via economic behavior: A model and experimental analysis of consumption behavior

This article examines policy feedback via economic behavior in the mass public, with a focus on consumption behavior. Do public policies affect the consumption behavior of mass publics and subsequent policymaking processes and outcomes? If so, how? I introduce a policy feedback model of consumption behavior in the mass public. Within this model, I advance a theoretical argument on the consequences of targeted cash assistance policies (TCAPs) for consumer spending behavior and government provision of basic utilities in developing countries. Using a randomized field experiment in Mexico and pre–post analysis, I find that TCAPs boost consumer spending on private access to basic utilities in the short term and reduce government provision of basic utilities in the medium term. The study pushes policy feedback theorists to think beyond the arena of mass politics, and the findings have important implications for social policy and human development in developing countries.