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Levelling the Uneven Playing Field: Inward Investment, Interregional Rivalry and the Planning System

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  • Mark Tewdwr-Jones
  • Nicholas Phelps

Abstract

TEWDWR-JONES M. and PHELPS N. A. (2000) Levelling the uneven playing field: inward investment, interregional rivalry and the planning system, Reg. Studies 34 , 429-440. Concern has been mounting recently over the increasing intensity of competition among British regions for foreign direct investment. This competition has been at its fiercest in the case of a number of recent very largest inward investment projects with public concern focusing on wasteful bidding up of total incentives packages. This government has been alerted to the 'unfair playing field' across the UK, in terms of the financial capital grants made to overseas companies to locate to certain regions of the UK - particularly Wales - and have responded by developing initiatives intended to enhance the English regions. However, little attention has been focused to date on the other factors utilized by 'successful' regions in the interregional rivalry for scarce inward investment. These other factors comprise, firstly, the unique ways in which collaboration has taken place between agencies of governance in the packaging, bidding and promotion of regions and, secondly, the methods by which the land use planning process (and thereby democratic forms of local decision making) have been subordinated in the interests of regional economic development. This paper discusses these issues with illustrations of recent large FDI, and focuses attention on the Welsh Development Agency. This debate is centred within discussion of the government proposals for devolution and the prospect of interregional competition between Wales and the English regions nevertheless occurring in the new governance of the UK. TEWDWR-JONES M. et PHELPS N. A. (2000) Etre sur pied d'egalite: l'investissement direct etranger, la rivalite interregionale et le systeme de planification, Reg. Studies 34 , 429-440. Recemment, la forte rivalite interregionale en Grande-Bretagne pour l'investissement direct etranger a suscite de plus en plus d'inquietude. Cette rivalite a ete a son comble dans le cas d'un nombre d'importants projets recents. En general, on s'inquiete des surencheres couteuses dans l'attribution des encouragements. On a attire l'attention du gouvernement a l'absence d'egalite a travers le R-U pour ce qui est des dotations en capital attribuees aux entreprises etrangeres afin de les inciter a s'implanter dans certaines regions du R-U - notamment le pays de Galles. Le gouvernement a reagi en developpant des initiatives destinees a valoriser les regions d'Angleterre. Toujours est-il qu'on n'a pas prete une attention particuliere aux autres facteurs employes par les entreprises ''victorieuses'' dans la course interregionale a l'investissement direct etranger peu abondant; y compris, en premier, les diverses facons dont les agences gouvernementales ont collabore a la presentation, soumission et promotion des regions, et, en deuxieme, les methodes par moyen desquelles les plans d'occupation du sol (et ainsi la democratie locale) ont ete renvoyes au deuxieme plan dans l'interet du developpement economique regional. Cet article cherche a aborder ces questions, puisant dans des exemples d'importants investissements directs etrangers, et porte sur la Welsh Development Agency (agence de developpement economique au pays de Galles). Ce debat fait partie de la discussion et des propositions du gouvernement en faveur de la regionalisation, et de la rivalite interregionale eventuelle entre le pays de Galles et les regions d'Angleterre. TEWDWR-JONES M. und PHELPS N. A. (2000) Einebnung unebner Tummelplatze: Investierungen aus dem Ausland, interregionaler Konkurrenzkampf und das Planungssystem, Reg. Studies 34 , 429-440. Die zunehmende Konkurrenz britischer Regionen auf dem Gebiet der Investierungen aus dem Ausland (foreign direct investment - FDI) hat in letzter Zeit Besorgnis erregend zugenommen. Diese Konkurrenz zeigte sich von ihrer scharfsten Seite, als das offentliche Interesse sich bei mehreren sehr betrachtlichen, kurzlich getatigten Investierungsprojekten aus dem Ausland vorallem auf aufwendige Hochtreibung der Pauschalanreizpakete richtete. Die gegenwartige Regierung ist auf die 'ungleichen Bodenverhaltnisse' im Vereinigten Konigreich aufmerksam gemacht worden, im Hinblick auf die Tatsache, dass auslandischen Gesellschaften Finanzkapitalzuschusse, gewahrt wurden, um sich in bestimmten Regionen des UK - besonders Wales - niederzulassen, und hat darauf mit der Schaffung von Anreizen zu erhohter Attraktivitat englischer Regionen reagiert. Wenig Aufmerksamkeit ist jedoch bisher den anderen Faktoren zuteil geworden, die von 'erfolgreichen' Regionen im interregionalen Wettlauf um knappe Investierungen aus dem Ausland eingesetzt werden. Diese anderen Faktoren enthalten erstens die einmalige Art und Weise der Zusammenarbeit von Agenturen der Regierung bei der Prasentierung, Bewerbung von und Werbung fur Regionen, und zweitens die Methoden, mit deren Hilfe der Planungsvorgang fur Landnutzung (und damit demokratische Formen ortlichen Beschlussfassens) dem Interesse regionaler Wirtschaftsentwicklung untergeordnet worden sind. Der vorligende Aufsatz erortert diese Fragen mit Hilfe von Illustrationen kurzlich getatigten, betrachtlichen FDIs, wobei die Aufmerksamkeit sich vorallem auf die Entwicklungsbehorde von Wales richtet. Die Debatte is Teil der Diskussion der Regierungsvorschlage zur Dezentralisierung und der nichtsdestoweniger auftretenden Aussicht auf interregionale Konkurrenz zwischen Wales und den englischen Regionen in der neuen Regierungsform des Vereinigten Konigreichs.

Suggested Citation

  • Mark Tewdwr-Jones & Nicholas Phelps, 2000. "Levelling the Uneven Playing Field: Inward Investment, Interregional Rivalry and the Planning System," Regional Studies, Taylor & Francis Journals, vol. 34(5), pages 429-440.
  • Handle: RePEc:taf:regstd:v:34:y:2000:i:5:p:429-440
    DOI: 10.1080/00343400050058684
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    References listed on IDEAS

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    3. Shameen Prashantham & Sumelika Bhattacharyya, 2020. "MNE–SME co-innovation in peripheral regions," Journal of International Business Policy, Palgrave Macmillan, vol. 3(2), pages 134-153, June.
    4. Danson, Michael & Todeva, Emanuela, 2016. "Government and Governance of Regional Triple Helix Interactions," MPRA Paper 76780, University Library of Munich, Germany.
    5. Paul Benneworth & Peter Roberts, 2002. "Devolution, Sustainability and Local Economic Development: Impacts on Local Autonomy, Policymaking and Economic Development Outcomes," Local Economy, London South Bank University, vol. 17(3), pages 239-252, August.
    6. Martijn J. Burger & Bert van der Knaap & Ronald S. Wall, 2013. "Revealed competition for greenfield investments between European regions," Journal of Economic Geography, Oxford University Press, vol. 13(4), pages 619-648, July.
    7. Edward J Malecki, 2007. "Cities and Regions Competing in the Global Economy: Knowledge and Local Development Policies," Environment and Planning C, , vol. 25(5), pages 638-654, October.
    8. Simona Iammarino, 2018. "FDI and regional development policy," Journal of International Business Policy, Palgrave Macmillan, vol. 1(3), pages 157-183, December.
    9. Philip Allmendinger & Mark Tewdwr-Jones, 2000. "Spatial Dimensions and Institutional Uncertainties of Planning and the ‘New Regionalism’," Environment and Planning C, , vol. 18(6), pages 711-726, December.
    10. Eric McVittie & J. Kim Swales, 2007. "The Information Requirements for an Effective Regional Policy: A Critique of the Allsopp Review," Urban Studies, Urban Studies Journal Limited, vol. 44(3), pages 425-438, March.
    11. Mia Gray & Anna Barford, 2018. "The depths of the cuts: the uneven geography of local government austerity," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 11(3), pages 541-563.
    12. Nicholas A. Phelps & Mark Tewdwr-Jones, 2001. "Globalisation, Regions and the State: Exploring the Limitations of Economic Modernisation through Inward Investment," Urban Studies, Urban Studies Journal Limited, vol. 38(8), pages 1253-1272, July.
    13. Andrew Crawley & Max Munday & Rick Delbridge, 2020. "Selling The Region: The Problems of a Multi‐Agency Approach in Promoting Regional Economies," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(3), pages 397-412, June.

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