Rethinking spatial policy in an era of multiple crises[An institutional perspective on regional economic development]

After more than thirty years of post-war relative regional convergence, since the 1980s geographical inequalities in economic prosperity and social conditions have widened again in most capitalist countries. In this paper we argue that this resumption of spatial inequality is in part explained by the significant changes observed in the role of the state and in public intervention in the shift from the post-war ‘Keynesian’ regime of state regulation to the ‘Neoliberal’ regime that has held sway over the past four decades. We argue that most public policies enacted in this latter period have actually exacerbated socioeconomic – and spatial – polarization, favouring a few metropolitan areas and regions at the expense of a substantial number of what are now commonly referred to as ‘left behind places’. We contend that we are now at a new juncture in the evolution of capitalism: in the space of little more than decade the global system has been destabilized by a major financial crisis (2008) and the COVID-19 pandemic (2020), both with enduring socio-economic aftershocks, while the climate emergency is reaching existential proportions. In this Editorial Introduction we call for a bold ‘rethinking’ of public action - and especially spatial policy - to face these recurring crises, and we outline some pointers for more effective and inclusive policies.