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Rethinking the political economy of place: challenges of productivity and inclusion

Author

Listed:
  • Evenhuis, Emil
  • Lee, Neil
  • Martin, Ron
  • Tyler, Peter
Abstract
The global financial crisis of just over a decade ago exposed longer-term systemic problems in global capitalism of which two of the most prominent are the slowdown in the underlying trend rate of productivity growth, alongside a rise in economic and spatial inequalities in many advanced economies. The Covid-19 pandemic looks set to further amplify these problems. This Editorial begins by discussing the scale of the productivity slowdown and of the widening inequalities that have emerged, particularly with regard to their spatial dimension: That is how the uneven and slow development of productivity and rise in inequalities have played out across and within regions and cities. It then briefly considers underlying factors that lie behind these trends, including financialisation/financial globalization, the diminishing role of organised labour, segmentation of the labour market favouring workers who play a key role in financialisation, together with the increasing polarisation within societies according to skill and, crucially, the impact of changing industrial composition particularly as it relates to the rise of the high-tech sectors. The Editorial then examines in what ways the slowdown of productivity and widening of economic and spatial inequalities, may be interrelated, and questions the notion of any efficiency-equity trade-off. Lastly, it considers whether the 'inclusive growth' agenda can potentially reconcile the two ambitions of improving productivity performance and lessening inequalities, reflecting on what inclusive growth could mean, and what it could imply in terms of policy. Thus far, it appears that an inclusive growth agenda has only gained some traction at the subnational level, which seems to reflect- A t least in part- A ttempts by cities and regions to address gaps in policy left by national governments.

Suggested Citation

  • Evenhuis, Emil & Lee, Neil & Martin, Ron & Tyler, Peter, 2021. "Rethinking the political economy of place: challenges of productivity and inclusion," LSE Research Online Documents on Economics 122929, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:122929
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    File URL: http://eprints.lse.ac.uk/122929/
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    References listed on IDEAS

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    Cited by:

    1. Alistair Rainnie, 2021. "Regional development and agency: Unfinished business," Local Economy, London South Bank University, vol. 36(1), pages 42-55, February.
    2. Anna Butzin & Franz Flögel, 2024. "High-tech development for “left behind” places: lessons-learnt from the Ruhr cybersecurity ecosystem," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 17(2), pages 307-322.
    3. McNeil, Andrew & Luca, Davide & Lee, Neil, 2023. "The long shadow of local decline: Birthplace economic adversity and long-term individual outcomes in the UK," Journal of Urban Economics, Elsevier, vol. 136(C).
    4. Bert Provan, 2022. "CASE Annual Report 2021," CASE Reports casereport142, Centre for Analysis of Social Exclusion, LSE.
    5. Lee, Neil, 2023. "Inclusive innovation in cities: from buzzword to policy," LSE Research Online Documents on Economics 117818, London School of Economics and Political Science, LSE Library.
    6. Sébastien Breau & Megan Wylie & Kevin Manaugh & Samantha Carr, 2023. "Inclusive growth, public transit infrastructure investments and neighbourhood trajectories of inequality in Montreal," Environment and Planning A, , vol. 55(8), pages 2009-2030, November.
    7. Navid Khan & Ke Xing & Salman Mahmood & Riaz Ahmad, 2024. "Key underlying concepts of shared prosperity: insights from a literature review," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 71(3), pages 727-751, September.
    8. Michele Capriati & Valeria Cirillo & Marialuisa Divella, 2024. "Productivity slowdown across European regions: does non-standard work matter?," Regional Studies, Taylor & Francis Journals, vol. 58(9), pages 1687-1709, September.
    9. Fabien Petit & Florencia Jaccoud & Tommaso Ciarli, 2023. "Heterogeneous Adjustments of Labor Markets to Automation Technologies," CESifo Working Paper Series 10237, CESifo.
    10. Mathew Johnson & Miguel Martínez Lucio & Stephen Mustchin & Damian Grimshaw & Jo Cartwright & Jenny K. Rodriguez & Tony Dundon, 2023. "City regions and decent work: Politics, pluralism and policy making in Greater Manchester," Environment and Planning C, , vol. 41(3), pages 504-522, May.
    11. Maximilian Benner, 2023. "Making spatial evolution work for all? A framework for inclusive path development," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 16(3), pages 445-462.
    12. Wirkierman, Ariel L. & Ciarli, Tommaso & Savonna, Maria, 2021. "A map of the fractal structure of high-tech dynamics across EU regions," MERIT Working Papers 2021-023, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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    More about this item

    Keywords

    economic inequality; inclusive growth; spatial inequality; uneven development;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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