Alice Pugh summarises the key findings from her recently released Inclusive and Sustainable Local Economic Performance Evidence Review.
Context and Methodology
The review summarises key academic literature, government reports, and real-world case studies related to inclusive and sustainable local economic performance, focusing on strengthening economic development partnerships within place. It examines inclusive and sustainable local economic, national and local policies, the varying capabilities and capacities in place, and lessons learnt from local partnerships to improve inclusive and sustainable economic performance, both UK-based and international. The review aims to inform the development of inclusive and sustainable local economic partnerships, through the identification of key challenges and demonstration of good practice.
Key Questions
The review seeks to answer the following questions:
- National Policy: What is the current context for inclusive and sustainable local economic development? How does this impact inclusive and sustainable local economic development?
- Regional and Local Policy: What is the current context for inclusive and sustainable local economic development? How can policy at this level be improved? How does policy differ across the devolved nations?
- Capacity and Capabilities: What capacity and capability challenges hinder inclusive and sustainable local economic development? What works when trying to improve capacity and capability?
Key Findings
Policy Context
Challenges, complications and instability in place-based economic development strategy at a national level can disrupt progress at a subnational level. Subnational institutions often lack the evidence base, incentives, resources (including funding), capacity and capability, to develop effective long-term place-based policy.
Despite these challenges, subnational institutions are often best placed to tackle the unique needs that face their place and thus, greater devolution of powers and funding is needed to support place-based organisations to create transformational change with regard to inclusive and sustainable local economic development.
Capacity and Capability
The churn, instability and ad-hoc approach to devolution from central government has led to a complex network of subnational capacities and capabilities, this is particularly acute in England. The lack of clear structure, funding, and resources is leading to poor capacity and capability in place and, as a result, impacts the ability of place-based institutions to create transformational change, particularly in terms of their ability to monitor and evaluate interventions.
Policy-makers need to focus on improving the structure, funding, and resources of devolved national and subnational governments to ensure that they have the capacity and capability to create effective change. They need to ensure that the responsibilities of each layer of subnational government are clear and that every geography is adequately and appropriately covered by the different levels of subnational government.
Place-based Partnerships
Collaboration and partnership will be key to building capacity and capabilities in place, delivering true inclusive and sustainable local economic development. Engagement from devolved national and subnational governments, private sector businesses, local educational institutions, and local people will also be key to transformational change.
To develop an effective partnership, the following elements are key: strong, championing, connected leadership; committed partner engagement; appropriate long-term resourcing (including funding); a strong partner co-produced vision and strategy; flexible fit for purpose governance and structures; trust between partners; and a focus on pre-existing assets within place, to drive inclusive and sustainable local economic development.
Conclusion
The review summarises the policy context, challenges, opportunities and best practice examples, around inclusive and sustainable local economic development partnerships. The aim is to inform policymakers on how to better develop long-term capacity and capability within place to improve inclusive and sustainable local economic performance.
This blog was written by Alice Pugh, Policy and Data Analyst City-REDI, University of Birmingham.
Disclaimer:
The views expressed in this analysis post are those of the author and not necessarily those of City-REDI or the University of Birmingham.