Issuu on Google+

Economic strategies from the bottom up Michael Ward Academy of Urbanism, Producer City Congress Bradford,16 May 2013


Economic strategies from the bottom up

2


Contents O Introduction O Bradford: context O Change O Race O Responses to change O What does success look like? O Elements of future policy

O Something must be done O The condition of England Economic strategies from the bottom up

3


The key task facing civic leaders in the 21st century is this: How, in a period of profound and continuing economic change will our citizens earn a living and prosper? Economic strategies from the bottom up

4


Most economic development does very little harm

Economic strategies from the bottom up

5


Bradford: I : Strengths O University O Airport O Arts, culture and leisure O Road and rail communications

Economic strategies from the bottom up

6


Bradford: II: Problems O Low economic activity rate O Occupational split O Low skills O Low wages

Economic strategies from the bottom up

7


Bradford: III: Key facts O O O O O O O O O O O O

More than 500,000 residents – the fourth largest metropolitan district in England. 22.5 per cent of the population are under 16 years old, compared with 19 per cent nationally. 28.7 per cent of the district’s population are from black and minority ethnic communities. The twenty-sixth most deprived local authority in England, and the second most deprived in the Yorkshire and Humber region. The widest gap between the most and least deprived areas of all local authorities in England. Third largest economy in the region, producing nearly 10 per cent of the region’s wealth, and the fourth largest projected economic growth in the UK. Ranks 309th out of 379 localities in the UK Competitiveness Index 2010 and 37th of the UK’s 43 largest cities. Self-employment has grown by more than 50 per cent over the last five years, rising to one in seven of the working population. In 2008 there were 1,765 enterprise start-ups, a start-up rate of 12.1 per cent compared to 11.8 per cent nationally. 28 per cent of JSA claimants are aged 18–24. One in three people of working age are out of work. One in three employees work in the public sector

Economic strategies from the bottom up

8


Bradford: IV: Indicators Bradford

Yorks + Humber

Great Britain

% Econ active

71.9

76.3

76.9

Soc groups 13(Manag/profl)

35.7

39.1

44.0

NVQ 3 + above

43.1

51.5

55.1

Median gross weekly pay (full time)

£426.7

£465.2

£508.0

Source: ONS Economic strategies from the bottom up

9


Bradford: V: Positives O Producer City strategy O City Park O Moves towards the living wage

Economic strategies from the bottom up

10


Change Places in the older industrialized countries continue to experience profound change: O Economic – global; technological O Changes in work O Demographic O Environmental – climate change; food Economic strategies from the bottom up

11


Towns of the first industrial revolution : I These towns “were settlements of great masses of people collected in a particular place because their fingers or their muscles were needed on the brink of a stream here or at the mouth of a furnace there.� (JL & B Hammond, 1917)

Economic strategies from the bottom up

12


Towns of the first industrial revolution : II O But when the energy source is no longer

needed , or the raw material is gone, those towns have to reinvent themselves. O Towns whose place in a national division of labour was settled have to discover new roles in a global division of labour O Textile towns, engineering towns, railway towns, mining towns‌. Economic strategies from the bottom up

13


Economic Change: Manufacturing Steady fall in UK manufacturing jobs: Manufacturing jobs (000s)

Manufacturing as % total

1981

5,739

22.0%

1991

4,475

15.9%

2001

3,773

12.5%

2011

2,511

8.0%

(seasonally adjusted data from September each year) Source: ONS NOMIS database Economic strategies from the bottom up

14


Economic Change: future jobs Major shift in nature of the economy: O Routine production O Personal services O Knowledge economy

Economic strategies from the bottom up

15


And where are the new jobs? I Top ten English travel to work areas for: Creative industries

High Tech industries

Knowledge industries

Reading

Preston

Reading

Guildford

Cambridge

Guildford

Milton Keynes

Derby

Cambridge

London

Guildford

Milton Keynes

Oxford

Reading

London

Cambridge

Oxford

Oxford

Worthing

Portsmouth

Luton

Southampton

Crawley

Manchester

Bristol

Worthing

Bristol

Brighton

Swindon

Worthing

16


Where are the new jobs? II Concentration of banking and business services jobs in 24 travel to work areas TTWA

TTWA

TTWA

Reading + Bracknell

Crawley

Norwich

London

Northampton

Southend

G’ford + Aldershot

Cambridge

Swindon

Bristol

Brighton

Bournemouth

Leeds

Portsmouth

Nottingham

Luton + Watford

Peterborough

Worthing

Milton Keynes

Southampton

Ipswich

Manchester

Oxford

Warrington + Wigan

17


Economic change: Innovation O How encourage innovation? O Institutions change more slowly than the

economy O Important role of universities and colleges O Knowledge and innovation a key element of Bradford’s Producer City strategy

Economic strategies from the bottom up

18


Race and racial disadvantage O In the affluent 1950s, when existing

O O

O O

communities were less prepared to take on low paid and unpleasant jobs in older industries, many sectors took on new workers from Commonwealth Origins of 1st UK Urban Programme lay in response to immigration Tightening of immigration controls balanced by resources for areas where minorities had settled Now UK much more diverse Bradford 20.4% Pakistani – 2011 census

Economic strategies from the bottom up

19


Responses to change: I The left used to believe you could stop change: O Through controls to relocate jobs O Through union organisation O If the government owned the company O If we left the EU

Economic strategies from the bottom up

20


Responses to change: II Then there was traditional economic development: O Road building O Large scale Foreign Direct Investment O Serviced sites and advance factories O Tax breaks and grants

Economic strategies from the bottom up

21


Scope for local action: I O Anticipate and influence change O Steer resources to where they would not

O O

O O

otherwise go Support people and places through change Education and training Science and universities Role of government

Economic strategies from the bottom up

22


Scope for local action: II O Take the long view O Develop the vision O Turn the vision into a plan

O Seek out whatever resources are

available to make it happen

‌but the pace of change means the long term isn’t as long as it used to be‌ Economic strategies from the bottom up

23


What does success look like? Two local government examples, two community: O Swindon O Manchester O Coin Street

O Eldonians

Economic strategies from the bottom up

24


Success: I: Swindon O Railway town from mid 19th century O In 1st ½ of 20th century, railway works was the

O

O O O

town's largest employer, 1 of the biggest in country, employing more than 14,500 1947: Town Clerk of Swindon writes to government “we can’t go on making steam engines for ever” – asks for help with diversification 1952: Swindon designated an Expanding Town Key employers now include Honda, BMW/Mini, Research Councils Swindon certainly reinvented itself – but results not necessarily beautiful

Economic strategies from the bottom up

25


Swindon: Brunel

Economic strategies from the bottom up

26


Swindon and Bradford: Indicators Bradford

Swindon

Great Britain

% Econ active

71.9

79.4

76.9

Soc groups 13(Manag/profl)

35.7

42.1

44.0

NVQ 3 + above

43.1

51.5

55.1

Median gross weekly pay (full time)

£426.7

£508.2

£508.0

Source: ONS Economic strategies from the bottom up

27


Swindon now “Swindon is an economically resilient town and among the top 10 highly innovative areas in the UK. Successful organisations have made Swindon their home because it provides the productive workforce and strong economy they need to thrive.� From the Swindon.uk.com website Economic strategies from the bottom up

28


Success: II: Manchester O O O O

Long term loss of engineering and textile jobs 25 year commitment to city development Exceptional political and official stability Built on established strengths of airport, universities O Tram network; use of UDC £ to refurbish canals and older industrial buildings O 2 Olympic bids led to successful Commonwealth Games bid O Rebuilding of city centre following 1996 bomb BUT – success not overcome poverty and disadvantage of inner ring – much more to do… Economic strategies from the bottom up

29


Economic strategies from the bottom up

30


Manchester and Bradford: Indicators Bradford

Manchester

Great Britain

% Econ active

71.9

69.1

76.9

Soc groups 13(Manag/profl)

35.7

45.0

44.0

NVQ 3 + above

43.1

56.0

55.1

Median gross weekly pay (full time)

£426.7

£458.0

£508.0

Source: ONS Economic strategies from the bottom up

31


Success: III: Coin Street O Coin Street Community Builders (CSCB)

is a social enterprise and development trust which seeks to make London's South Bank a better place in which to live, to work and to visit. O Since 1984 CSCB has transformed a largely derelict 13 acre site into a thriving mixed use neighbourhood. Economic strategies from the bottom up

32


Coin Street: The Campaign O Local people drew up a planning strategy to

reverse the destruction of their community by building new homes and community facilities. O Central to this strategy was use of the eight largely derelict Coin Street sites. O In 1977, after a developer had announced plans to build Europe's tallest hotel and over 1 million square feet of office space on the sites, the Coin Street Action Group was set up. O The Action Group drew up plans for housing, a new riverside park and walkway, managed workshops, shops and leisure facilities Economic strategies from the bottom up

33


Coin Street: Oxo Tower Wharf

Economic strategies from the bottom up

34


Success: IV: the Eldonians O A social enterprise, in the Vauxhall area of North O O O O

Liverpool. Established by the local community in the late 1970′s, a community owned and run enterprise; Responsible for the regeneration of the Eldonian Village and Vauxhall areas. Born out of long campaigns against the Council in an area of poor housing and job loss. Runs cooperatively managed housing, community, health and sports facilities, and training

Economic strategies from the bottom up

35


The Eldonians Before

Economic strategies from the bottom up

After

36


The Eldonians: aims O The creation of additional jobs in the community; O The promotion of education in the community; O The provision of improved childcare and elderly

O O O O

facilities in the community; The introduction of additional retail facilities in the community; The provision of affordable housing for sale in the community; The promotion of health in the community; To help develop neighbourhood transport initiatives and environmentally considerate recycling.

Economic strategies from the bottom up

37


Elements of future policy O Resilience O Local government O Environment, land and diversity

O Knowledge and learning O Empowered communities O Allies

O An active role for government

Economic strategies from the bottom up

38


Resilience O How can places become more resilient to

economic, social and environmental change? O Do we really expect all places to grow? O Look at strength of public and social sectors as well as business/commercial sector O Importance of relations between commercial/public/social sectors Economic strategies from the bottom up

39


Local government: I Growing importance of councils in economic development: O 1970s – ED a discretionary activity O 1989 – first ED power O 2000 LG Act gave councils power to promote social, economic and environmental wellbeing O Heseltine Review recommends an ED duty (but government disagree) Economic strategies from the bottom up

40


Local government: II O Need for strong unitary authorities O With some wider structure for strategic

land use planning

Economic strategies from the bottom up

41


Local government: III But Councils will not be able to deliver full potential to support local economies without reform of local government finance‌.. O Both council tax and business rate tax bases heavily concentrated in London and South East O Restrictions on raising revenue mean little £ for any but basic statutory duties O Some councils (e.g. W Somerset) on edge of bankruptcy Economic strategies from the bottom up

42


Environment, land and diversity O Need to link economic development to

sustainability – not separate policy objectives in conflict O Be wary of economic monoculture – encourage economic diversity – manufacturing as well as services O Be cautious about changing employment land to housing Economic strategies from the bottom up

43


Knowledge and learning O Raising educational attainment and

aspiration critical O Jobs of future demand new skills O Presence of higher education a critical factor for economic development

Economic strategies from the bottom up

44


Empowered communities O Councils need to move to more participatory O

O O O

forms of democracy Grass roots economic development means working with awkward, difficult , troublesome people Success comes out of conflict ? Is there potential in neighbourhood planning, community right to purchase, etc.? Celebrate our successes

Economic strategies from the bottom up

45


Allies Broad range of allies to create strategies – not just business, but: O Green groups O Faith groups O Citizens movement O Community organisations

Economic strategies from the bottom up

46


An active role for government All the examples used government programmes: O Swindon – Expanded Towns O Manchester: Urban Programme; UDC; City Challenge; O Coin Street: GLC, Housing Corporation O Eldonians: Housing Corporation, English Partnerships Economic strategies from the bottom up

47


Something must be done: I

Economic strategies from the bottom up

48


Something must be done: II O Economic change is not a new experience

for UK cities O Global economic relationships are not new either O But communities have had to get used to being on the receiving end of those relationships

Economic strategies from the bottom up

49


Something must be done: III For 70 years, governments supported programmes that invested in disadvantaged areas, supporting communities through change: O Regional policy O Council and Housing Association housebuilding O Urban Programme O Regeneration and the RDAs Those programmes stopped with the 2010 Spending Review‌.. Economic strategies from the bottom up

50


Something must be done: IV O Communities cannot cover the costs of

economic and social change O Local strategies are necessary but not sufficient O Government has a responsibility O Local strategies – but national cash

Economic strategies from the bottom up

51


The condition of England question O Victorian commentators talked of the O

O

O O

‘condition of England’ question National prosperity built on living conditions of great squalor Slow mobilisation of a consensus across civil society to deal with unemployment, poverty and bad housing Modern prosperity concentrated in one corner of the country Need for a new consensus.

Economic strategies from the bottom up

52


“Two-speed Britain as London soars away from the rest In London, there are more cranes on the skyline than in the rest of the country put together. Evidence is growing that a recovery is under way, but there are now fears that only the south-east is benefiting, leaving the nation more divided.� The Observer, Sunday 12 May 2013 Economic strategies from the bottom up

53


Economic Strategies from the Bottom Up - Michael Ward