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Long-term EconomicLong-term EconomicGrowth andGrowth and
Supply-side PoliciesSupply-side Policies
Long-term Growth and Supply-side PoliciesLong-term Growth and Supply-side Policies
Economic Growth in the Long run
Economic Growth in the Long run
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
Growth over the decades
long-term growth versus short-term fluctuations
Growth over the decades
long-term growth versus short-term fluctuations
30
40
50
60
70
80
90
100
110
120
1950 1960 1970 1980 1990 2000
Real
GD
P (
1995 =
100)
UK GDP at market prices (1995=100)UK GDP at market prices (1995=100)
30
40
50
60
70
80
90
100
110
120
1950 1960 1970 1980 1990 2000
Real
GD
P (
1995 =
100)
UK GDP at market prices (1995=100)UK GDP at market prices (1995=100)
Average annual percentage growth rateAverage annual percentage growth ratein GDP per person employedin GDP per person employed
Average annual percentage growth rateAverage annual percentage growth ratein GDP per person employedin GDP per person employed
Average annual percentage growth rateAverage annual percentage growth ratein GDP per person employedin GDP per person employed
Average annual percentage growth rateAverage annual percentage growth ratein GDP per person employedin GDP per person employed
Average annual percentage growth rateAverage annual percentage growth ratein GDP per person employedin GDP per person employed
Growth over the decades
long-term growth versus short-term fluctuations
convergence of rich economies
Growth over the decades
long-term growth versus short-term fluctuations
convergence of rich economies
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
Growth over the decades
long-term growth versus short-term fluctuations
convergence of rich economies
growing gap between the richest and poorest countries
Growth over the decades
long-term growth versus short-term fluctuations
convergence of rich economies
growing gap between the richest and poorest countries
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
Growth over the decades
long-term growth versus short-term fluctuations
convergence of rich economies
growing gap between the richest and poorest countries
the determinants of economic growth
Growth over the decades
long-term growth versus short-term fluctuations
convergence of rich economies
growing gap between the richest and poorest countries
the determinants of economic growth
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
Growth over the decades
long-term growth versus short-term fluctuations
convergence of rich economies
growing gap between the richest and poorest countries
the determinants of economic growth
increase in quantity of factors
Growth over the decades
long-term growth versus short-term fluctuations
convergence of rich economies
growing gap between the richest and poorest countries
the determinants of economic growth
increase in quantity of factors
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
Growth over the decades
long-term growth versus short-term fluctuations
convergence of rich economies
growing gap between the richest and poorest countries
the determinants of economic growth
increase in quantity of factors
increase in productivity
Growth over the decades
long-term growth versus short-term fluctuations
convergence of rich economies
growing gap between the richest and poorest countries
the determinants of economic growth
increase in quantity of factors
increase in productivity
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
Output per person employed in 2000relative to that in 1961
Output per person employed in 2000relative to that in 1961
Productivity in selected countries, 1999 (UK = 100)Productivity in selected countries, 1999 (UK = 100)
Productivity in selected countries, 1999 (UK = 100)Productivity in selected countries, 1999 (UK = 100)
Productivity in selected countries, 1999 (UK = 100)Productivity in selected countries, 1999 (UK = 100)
Productivity in selected countries, 1999 (UK = 100)Productivity in selected countries, 1999 (UK = 100)
Capital accumulation simple model of economic growth
diminishing returns to capital
growing proportion of replacement investment
growth to a long-run equilibrium national income
Capital accumulation simple model of economic growth
diminishing returns to capital
growing proportion of replacement investment
growth to a long-run equilibrium national income
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
K0
Depreciation (D)
Investment (I)
Steady-state outputSteady-state output
Capital stock (K)
Ou
tpu
t (Y
), In
vest
me
nt (
I), D
epre
cia
tion
(D
)
K1
Y1
Output (Y)
g
Y0
bI0
D0
O
c
f
a
Capital accumulation simple model of economic growth
diminishing returns to capital
growing proportion of replacement investment
growth to a long-run equilibrium national incomeeffect of an increase in the saving rate
Capital accumulation simple model of economic growth
diminishing returns to capital
growing proportion of replacement investment
growth to a long-run equilibrium national incomeeffect of an increase in the saving rate
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
Capital stock (K)
K1 K2
Y2
Y1
Y
D
I2
I1g
m
nh
Ou
tpu
t (Y
), In
vest
me
nt (
I), D
epre
cia
tion
(D
)
f
Effect of an increase in the rate of saving and investmentEffect of an increase in the rate of saving and investment
Capital accumulation simple model of economic growth
diminishing returns to capital
growing proportion of replacement investment
growth to a long-run equilibrium national incomeeffect of an increase in the saving rate
human capital and education
Capital accumulation simple model of economic growth
diminishing returns to capital
growing proportion of replacement investment
growth to a long-run equilibrium national incomeeffect of an increase in the saving rate
human capital and education
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
Capital accumulation simple model of economic growth
diminishing returns to capital
growing proportion of replacement investment
growth to a long-run equilibrium national incomeeffect of an increase in the saving rate
human capital and education
an optimum rate of saving?
Capital accumulation simple model of economic growth
diminishing returns to capital
growing proportion of replacement investment
growth to a long-run equilibrium national incomeeffect of an increase in the saving rate
human capital and education
an optimum rate of saving?
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
Saving rate (%)
Co
nsu
mp
tion
O 100
a b
An optimum saving rateAn optimum saving rate
Saving rate (%)
Co
nsu
mp
tion
C*
s*O 100
a
m
b
An optimum saving rateAn optimum saving rate
Capital accumulation simple model of economic growth
diminishing returns to capital
growing proportion of replacement investment
growth to a long-run equilibrium national incomeeffect of an increase in the saving rate
human capital and education
an optimum rate of saving?
an increase in the workforce
Capital accumulation simple model of economic growth
diminishing returns to capital
growing proportion of replacement investment
growth to a long-run equilibrium national incomeeffect of an increase in the saving rate
human capital and education
an optimum rate of saving?
an increase in the workforce
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
Technological progress
the effect on output
Technological progress
the effect on output
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
Capital stock (K)
K1 K2
Y2
Y2
D
I2
I1g
p
nh
Ou
tpu
t (Y
), In
vest
me
nt (
I), D
epre
cia
tion
(D
)Effect of embodied technological progressEffect of embodied technological progress
Y1
Y1
f
Technological progress
the effect on output
the steady-state growth path
Technological progress
the effect on output
the steady-state growth path
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
Effect of technological progress on growth ratesEffect of technological progress on growth rates
Lower rateof technological
progress
Higher rateof technological
progress
Time
Out
put
Technological progress
the effect on output
the steady-state growth path
the effect of an increase in the saving rate
Technological progress
the effect on output
the steady-state growth path
the effect of an increase in the saving rate
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
Technological progress
the effect on output
the steady-state growth path
the effect of an increase in the saving rate
movement to a higher steady-state growth path
Technological progress
the effect on output
the steady-state growth path
the effect of an increase in the saving rate
movement to a higher steady-state growth path
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
Effect of an increase in the saving rate,with a given rate of technological progress
Effect of an increase in the saving rate,with a given rate of technological progress
Time
Ou
tpu
t
Steady-stategrowth path 1
Actualgrowth path
Slope determinedby rate of
technological progress
Steady-stategrowth path 2
Effect of an increase in the saving rate,with a given rate of technological progress
Effect of an increase in the saving rate,with a given rate of technological progress
Time
Ou
tpu
t
t1
Steady-stategrowth path 1
Rate of savingincreasesat time t1
Actualgrowth path
Technological progress
the effect on output
the steady-state growth path
the effect of an increase in the saving rate
movement to a higher steady-state growth path
Endogenous growth theory
Technological progress
the effect on output
the steady-state growth path
the effect of an increase in the saving rate
movement to a higher steady-state growth path
Endogenous growth theory
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
Technological progress
the effect on output
the steady-state growth path
the effect of an increase in the saving rate
movement to a higher steady-state growth path
Endogenous growth theory
determinants of technological progress
Technological progress
the effect on output
the steady-state growth path
the effect of an increase in the saving rate
movement to a higher steady-state growth path
Endogenous growth theory
determinants of technological progress
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
Technological progress
the effect on output
the steady-state growth path
the effect of an increase in the saving rate
movement to a higher steady-state growth path
Endogenous growth theory
determinants of technological progress
importance of institutional factors and incentives
Technological progress
the effect on output
the steady-state growth path
the effect of an increase in the saving rate
movement to a higher steady-state growth path
Endogenous growth theory
determinants of technological progress
importance of institutional factors and incentives
ECONOMIC GROWTH IN THE LONG RUNECONOMIC GROWTH IN THE LONG RUN
Supply-side PoliciesSupply-side Policies
Long-term Growth and Supply-side PoliciesLong-term Growth and Supply-side Policies
SUPPLY-SIDE POLICIESSUPPLY-SIDE POLICIES
Supply-side policies and macroeconomic problems economic growth
unemployment
inflation
Market-based approach to supply-side policy market-orientated supply-side policies
Supply-side policies and macroeconomic problems economic growth
unemployment
inflation
Market-based approach to supply-side policy market-orientated supply-side policies
AD
AS1
Q1O
P1
National output
Pri
ce le
vel
AS2
P2
Q2
Aggregate demand and supply: monetarist analysisAggregate demand and supply: monetarist analysis
O
Unemployment (%)
Infla
tion
(%)
Un1Un2
Long-run Phillips curve: monetarist analysisLong-run Phillips curve: monetarist analysis
SUPPLY-SIDE POLICIESSUPPLY-SIDE POLICIES
Supply-side policies and macroeconomic problems economic growth
unemployment
inflation
Market-based approach to supply-side policy market-orientated supply-side policies
neo-Austrian / libertarian school
Supply-side policies and macroeconomic problems economic growth
unemployment
inflation
Market-based approach to supply-side policy market-orientated supply-side policies
neo-Austrian / libertarian school
SUPPLY-SIDE POLICIESSUPPLY-SIDE POLICIES
Keynesian approach to supply-side policy
Keynesian approach to supply-side policy
O
AD1
National output
Pri
ce le
vel
AS1
AD2
Q1 Q2
AS2
Q3
Aggregate demand and supply: Keynesian analysisAggregate demand and supply: Keynesian analysis
O
Unemployment (%)
Infla
tion
(%)
I
II
a
b
Phillips curves: Keynesian analysisPhillips curves: Keynesian analysis
SUPPLY-SIDE POLICIESSUPPLY-SIDE POLICIES
Keynesian approach to supply-side policy
interventionist supply-side policies
Keynesian approach to supply-side policy
interventionist supply-side policies
SUPPLY-SIDE POLICIESSUPPLY-SIDE POLICIES
Keynesian approach to supply-side policy
interventionist supply-side policies
'Third-Way' supply-side policies
Keynesian approach to supply-side policy
interventionist supply-side policies
'Third-Way' supply-side policies
SUPPLY-SIDE POLICIESSUPPLY-SIDE POLICIES
Keynesian approach to supply-side policy
interventionist supply-side policies
'Third-Way' supply-side policies
The link between demand-side and supply-side policies
Keynesian approach to supply-side policy
interventionist supply-side policies
'Third-Way' supply-side policies
The link between demand-side and supply-side policies
Market-orientated Supply-side Policies
Market-orientated Supply-side Policies
Long-term Growth and Supply-side PoliciesLong-term Growth and Supply-side Policies
MARKET-ORIENTATED SUPPLY-SIDE POLICIESMARKET-ORIENTATED SUPPLY-SIDE POLICIES
Varieties of market-orientated supply-side policies
Reducing government expenditure
Varieties of market-orientated supply-side policies
Reducing government expenditure
Government expenditure (central plus local) as a percentage of GDP at market prices
Government expenditure (central plus local) as a percentage of GDP at market prices
Government expenditure (central plus local) as a percentage of GDP at market prices
Government expenditure (central plus local) as a percentage of GDP at market prices
Government expenditure (central plus local) as a percentage of GDP at market prices
Government expenditure (central plus local) as a percentage of GDP at market prices
Varieties of market-orientated supply-side policies
Reducing government expenditure
Income tax cuts
Varieties of market-orientated supply-side policies
Reducing government expenditure
Income tax cuts
MARKET-ORIENTATED SUPPLY-SIDE POLICIESMARKET-ORIENTATED SUPPLY-SIDE POLICIES
Varieties of market-orientated supply-side policies
Reducing government expenditure
Income tax cuts
effects on supply of labour
Varieties of market-orientated supply-side policies
Reducing government expenditure
Income tax cuts
effects on supply of labour
MARKET-ORIENTATED SUPPLY-SIDE POLICIESMARKET-ORIENTATED SUPPLY-SIDE POLICIES
Varieties of market-orientated supply-side policies
Reducing government expenditure
Income tax cuts
effects on supply of labour
effects on unemployment
Varieties of market-orientated supply-side policies
Reducing government expenditure
Income tax cuts
effects on supply of labour
effects on unemployment
MARKET-ORIENTATED SUPPLY-SIDE POLICIESMARKET-ORIENTATED SUPPLY-SIDE POLICIES
O
Number of workers
Lab
ou
r co
sts
(k),
afte
r-ta
x w
age
ra
tes
(W)
ASL
ADL
W0
Q0
N
Position withno taxes
yx
Effect of a tax cut on total unemploymentEffect of a tax cut on total unemployment
O
Number of workers
Lab
ou
r co
sts
(k),
afte
r-ta
x w
age
ra
tes
(W)
ASL
ADL
Q1
N
Equilibriumwith taxes
W1
k1
b
TAX
a
e
Effect of a tax cut on total unemploymentEffect of a tax cut on total unemployment
O
Number of workers
Lab
ou
r co
sts
(k),
afte
r-ta
x w
age
ra
tes
(W)
ASL
ADL
W1
Q1
N
Equilibriumwith taxes
a
b
k1
e
Pre-taxwage rate
(unit labour cost)
TAX
Effect of a tax cut on total unemploymentEffect of a tax cut on total unemployment
O
Number of workers
Lab
ou
r co
sts
(k),
afte
r-ta
x w
age
ra
tes
(W)
ASL
ADL
W1
Q1
N
Equilibriumwith taxes
a
b
k1
e
Pre-taxwage rate
(unit labour cost)
After-taxwage rate
(`take-home’ wage)
TAX
Effect of a tax cut on total unemploymentEffect of a tax cut on total unemployment
O
Number of workers
Lab
ou
r co
sts
(k),
afte
r-ta
x w
age
ra
tes
(W)
ASL
ADL
W1
Q1
N
Equilibriumwith tax cut
a
b
k1
e
Q2
fW2
k2
c
d
Effect of a tax cut on total unemploymentEffect of a tax cut on total unemployment
O
Number of workers
Lab
ou
r co
sts
(k),
afte
r-ta
x w
age
ra
tes
(W)
ASL
ADL
W1
Q1
N
Equilibriumwith tax cut
a
b
k1
e
Q2
c
d fW2
k2
New reducedunemployment
Effect of a tax cut on total unemploymentEffect of a tax cut on total unemployment
Varieties of market-orientated supply-side policies
Reducing government expenditure
Income tax cuts
effects on supply of labour
effects on unemployment
effects on employment
Varieties of market-orientated supply-side policies
Reducing government expenditure
Income tax cuts
effects on supply of labour
effects on unemployment
effects on employment
MARKET-ORIENTATED SUPPLY-SIDE POLICIESMARKET-ORIENTATED SUPPLY-SIDE POLICIES
Varieties of market-orientated supply-side policies
Reducing government expenditure
Income tax cuts
effects on supply of labour
effects on unemployment
effects on employment
Tax cuts for business
Varieties of market-orientated supply-side policies
Reducing government expenditure
Income tax cuts
effects on supply of labour
effects on unemployment
effects on employment
Tax cuts for business
MARKET-ORIENTATED SUPPLY-SIDE POLICIESMARKET-ORIENTATED SUPPLY-SIDE POLICIES
Reducing the power of labour Reducing the power of labour
MARKET-ORIENTATED SUPPLY-SIDE POLICIESMARKET-ORIENTATED SUPPLY-SIDE POLICIES
W1
O
Number of workers
Wa
ge r
ate
ASL
ADL
Q1
N
Position withunions: wagerate above the
equilibrium
Q2
a b c
Effect of reducing the power of labourEffect of reducing the power of labour
O
Number of workers
Wa
ge r
ate
ASL
ADL
We
Qe
N
Union powerremoved:
wage rate atthe equilibrium
e f
Effect of reducing the power of labourEffect of reducing the power of labour
Reducing the power of labour
Reducing welfare
Reducing the power of labour
Reducing welfare
MARKET-ORIENTATED SUPPLY-SIDE POLICIESMARKET-ORIENTATED SUPPLY-SIDE POLICIES
ASL2
The effect of a cut in benefits on the number unemployedThe effect of a cut in benefits on the number unemployed
O
Number of workers
ADL
We1
N
b a
ASL1
c
Assumption:wage rates not
flexible downwards
(Re
al)
wa
ge
rate
O
Number of workers
(Re
al)
wa
ge
rate
ADL
We1
N
b a
ASL1
c
ASL2
Assumption:wage rates are
flexible downwards
We2 de
The effect of a cut in benefits on the number unemployedThe effect of a cut in benefits on the number unemployed
Effect of a cut in benefits on the duration of unemploymentEffect of a cut in benefits on the duration of unemployment
O
Wa
ge r
ate
Time
Wo
Wa1
T1
Wa2
T2
Policies to encourage competition
privatisation
deregulation
internal markets in the public sector
the Private Finance Initiative
free trade and capital movements
Policies to encourage competition
privatisation
deregulation
internal markets in the public sector
the Private Finance Initiative
free trade and capital movements
MARKET-ORIENTATED SUPPLY-SIDE POLICIESMARKET-ORIENTATED SUPPLY-SIDE POLICIES
Interventionist Supply-side Policies
Interventionist Supply-side Policies
Long-term Growth and Supply-side PoliciesLong-term Growth and Supply-side Policies
INTERVENTIONIST SUPPLY-SIDE POLICYINTERVENTIONIST SUPPLY-SIDE POLICY
The case against the market
too little R&D and training
imperfections in the capital market
problems of lack of investment
problems of cyclical nature of investment
the problem of de-industrialisation
UK experience of lack of investment and de-industrialisation
The case against the market
too little R&D and training
imperfections in the capital market
problems of lack of investment
problems of cyclical nature of investment
the problem of de-industrialisation
UK experience of lack of investment and de-industrialisation
Gross fixed capital formation as apercentage of GDP: 1960–2001
Gross fixed capital formation as apercentage of GDP: 1960–2001
Gross fixed capital formation as apercentage of GDP: 1960–2001
Gross fixed capital formation as apercentage of GDP: 1960–2001
Gross fixed capital formation as apercentage of GDP: 1960–2001
Gross fixed capital formation as apercentage of GDP: 1960–2001
Gross fixed capital formation as apercentage of GDP: 1960–2001
Gross fixed capital formation as apercentage of GDP: 1960–2001
Gross fixed capital formation as apercentage of GDP: 1960–2001
Gross fixed capital formation as apercentage of GDP: 1960–2001
UK balance of trade in manufactures:selected years: 1978–2001
UK balance of trade in manufactures:selected years: 1978–2001
UK balance of trade in manufactures:selected years: 1978–2001
UK balance of trade in manufactures:selected years: 1978–2001
UK balance of trade in manufactures:selected years: 1978–2001
UK balance of trade in manufactures:selected years: 1978–2001
UK balance of trade in manufactures:selected years: 1978–2001
UK balance of trade in manufactures:selected years: 1978–2001
Industrial and manufacturing production in the UKand the OECD: selected years, 1970–2000
Industrial and manufacturing production in the UKand the OECD: selected years, 1970–2000
Industrial and manufacturing production in the UKand the OECD: selected years, 1970–2000
Industrial and manufacturing production in the UKand the OECD: selected years, 1970–2000
The forms of intervention
nationalisation
grants
rationalisation
advice and persuasion
information
direct provision
The forms of intervention
nationalisation
grants
rationalisation
advice and persuasion
information
direct provision
INTERVENTIONIST SUPPLY-SIDE POLICYINTERVENTIONIST SUPPLY-SIDE POLICY
Planning types of planning European experience of planning
Selective intervention research and development industrial reorganisation assistance to small firms training
Planning types of planning European experience of planning
Selective intervention research and development industrial reorganisation assistance to small firms training
INTERVENTIONIST SUPPLY-SIDE POLICYINTERVENTIONIST SUPPLY-SIDE POLICY
Funding Welfare to Work (£ millions)Funding Welfare to Work (£ millions)
Funding Welfare to Work (£ millions)Funding Welfare to Work (£ millions)
Funding Welfare to Work (£ millions)Funding Welfare to Work (£ millions)
Funding Welfare to Work (£ millions)Funding Welfare to Work (£ millions)
Funding Welfare to Work (£ millions)Funding Welfare to Work (£ millions)
Funding Welfare to Work (£ millions)Funding Welfare to Work (£ millions)
Funding Welfare to Work (£ millions)Funding Welfare to Work (£ millions)
Planning types of planning European experience of planning
Selective intervention research and development industrial reorganisation assistance to small firms training
The case against intervention
Planning types of planning European experience of planning
Selective intervention research and development industrial reorganisation assistance to small firms training
The case against intervention
INTERVENTIONIST SUPPLY-SIDE POLICYINTERVENTIONIST SUPPLY-SIDE POLICY
Regional and Urban Policy
Regional and Urban Policy
Long-term Growth and Supply-side PoliciesLong-term Growth and Supply-side Policies
REGIONAL AND URBAN POLICYREGIONAL AND URBAN POLICY
Causes of regional imbalance
changing geographical patterns of demand and supply
market responses to imbalance
regional multiplier effects
Causes of urban decay
changing patterns of demand and supply
local multiplier effects
Causes of regional imbalance
changing geographical patterns of demand and supply
market responses to imbalance
regional multiplier effects
Causes of urban decay
changing patterns of demand and supply
local multiplier effects
Regional (claimant) unemployment rates (%):Regional (claimant) unemployment rates (%):
Region Unemployment (%)
Jan 1979 Jan 1987 Jan 1990 Jan 1993 Jan 1996 Jan 1999 Jan 2002
UK (average)
South East
Eastern
South West
East Midlands
London
West Midlands
North West
Wales
Yorks & Humber
Scotland
Northern Ireland
North East
4.1
4.1
3.4
2.8
3.9
–
5.5
4.1
5.7
7.8
10.8
6.8
8.1
8.8
9.7
8.9
12.4
11.5
13.1
12.1
13.8
16.9
16.2
5.6
2.6
3.1
3.8
4.9
4.7
5.7
6.1
6.6
6.6
8.4
13.0
9.7
10.5
9.0
9.7
9.8
10.0
11.6
11.1
9.8
10.4
10.5
9.9
14.0
12.8
7.7
5.5
6.4
6.5
7.0
9.1
7.6
7.0
8.3
8.3
7.8
11.2
11.1
4.6
2.5
3.2
3.3
4.0
5.2
4.7
4.2
5.4
5.6
5.5
7.3
7.4
3.2
1.6
2.1
2.1
3.1
3.5
3.6
3.7
3.8
3.9
4.2
4.9
5.4
Region Unemployment (%)
Jan 1979 Jan 1987 Jan 1990 Jan 1993 Jan 1996 Jan 1999 Jan 2002
UK (average)
South East
Eastern
South West
East Midlands
London
West Midlands
North West
Wales
Yorks & Humber
Scotland
Northern Ireland
North East
4.1
4.1
3.4
2.8
3.9
–
5.5
4.1
5.7
7.8
10.8
6.8
8.1
8.8
9.7
8.9
12.4
11.5
13.1
12.1
13.8
16.9
16.2
5.6
2.6
3.1
3.8
4.9
4.7
5.7
6.1
6.6
6.6
8.4
13.0
9.7
10.5
9.0
9.7
9.8
10.0
11.6
11.1
9.8
10.4
10.5
9.9
14.0
12.8
7.7
5.5
6.4
6.5
7.0
9.1
7.6
7.0
8.3
8.3
7.8
11.2
11.1
4.6
2.5
3.2
3.3
4.0
5.2
4.7
4.2
5.4
5.6
5.5
7.3
7.4
3.2
1.6
2.1
2.1
3.1
3.5
3.6
3.7
3.8
3.9
4.2
4.9
5.4
Regional (claimant) unemployment rates (%):Regional (claimant) unemployment rates (%):
Region Unemployment (%)
Jan 1979 Jan 1987 Jan 1990 Jan 1993 Jan 1996 Jan 1999 Jan 2002
UK (average)
South East
Eastern
South West
East Midlands
London
West Midlands
North West
Wales
Yorks & Humber
Scotland
Northern Ireland
North East
4.1
4.1
3.4
2.8
3.9
–
5.5
4.1
5.7
7.8
10.8
6.8
8.1
8.8
9.7
8.9
12.4
11.5
13.1
12.1
13.8
16.9
16.2
5.6
2.6
3.1
3.8
4.9
4.7
5.7
6.1
6.6
6.6
8.4
13.0
9.7
10.5
9.0
9.7
9.8
10.0
11.6
11.1
9.8
10.4
10.5
9.9
14.0
12.8
7.7
5.5
6.4
6.5
7.0
9.1
7.6
7.0
8.3
8.3
7.8
11.2
11.1
4.6
2.5
3.2
3.3
4.0
5.2
4.7
4.2
5.4
5.6
5.5
7.3
7.4
3.2
1.6
2.1
2.1
3.1
3.5
3.6
3.7
3.8
3.9
4.2
4.9
5.4
Regional (claimant) unemployment rates (%):Regional (claimant) unemployment rates (%):
Region Unemployment (%)
Jan 1979 Jan 1987 Jan 1990 Jan 1993 Jan 1996 Jan 1999 Jan 2002
UK (average)
South East
Eastern
South West
East Midlands
London
West Midlands
North West
Wales
Yorks & Humber
Scotland
Northern Ireland
North East
4.1
4.1
3.4
2.8
3.9
–
5.5
4.1
5.7
7.8
10.8
6.8
8.1
8.8
9.7
8.9
12.4
11.5
13.1
12.1
13.8
16.9
16.2
5.6
2.6
3.1
3.8
4.9
4.7
5.7
6.1
6.6
6.6
8.4
13.0
9.7
10.5
9.0
9.7
9.8
10.0
11.6
11.1
9.8
10.4
10.5
9.9
14.0
12.8
7.7
5.5
6.4
6.5
7.0
9.1
7.6
7.0
8.3
8.3
7.8
11.2
11.1
4.6
2.5
3.2
3.3
4.0
5.2
4.7
4.2
5.4
5.6
5.5
7.3
7.4
3.2
1.6
2.1
2.1
3.1
3.5
3.6
3.7
3.8
3.9
4.2
4.9
5.4
Regional (claimant) unemployment rates (%):Regional (claimant) unemployment rates (%):
REGIONAL AND URBAN POLICYREGIONAL AND URBAN POLICY
Radical-right policies local wage agreements
control of local authority taxes
reducing unemployment benefits
Interventionist policies subsidies and tax concessions
provision of facilities
restrictions on expansion of firms in prosperous regions
Radical-right policies local wage agreements
control of local authority taxes
reducing unemployment benefits
Interventionist policies subsidies and tax concessions
provision of facilities
restrictions on expansion of firms in prosperous regions
REGIONAL AND URBAN POLICYREGIONAL AND URBAN POLICY
Regional policy in the UK assisted areas
regional selective assistance
regional enterprise grants
Regional Development Agencies
EU regional policy
Regional policy in the UK assisted areas
regional selective assistance
regional enterprise grants
Regional Development Agencies
EU regional policy
Distribution of structural funds between objectivesDistribution of structural funds between objectives
REGIONAL AND URBAN POLICYREGIONAL AND URBAN POLICY
Regional policy in the UK assisted areas
regional selective assistance
regional enterprise grants
Regional Development Agencies
EU regional policy
Government attitudes towards regional policy
Regional policy in the UK assisted areas
regional selective assistance
regional enterprise grants
Regional Development Agencies
EU regional policy
Government attitudes towards regional policy
REGIONAL AND URBAN POLICYREGIONAL AND URBAN POLICY
Regional policy in the UK assisted areas
regional selective assistance
regional enterprise grants
Regional Development Agencies
EU regional policy
Government attitudes towards regional policy
Effectiveness of regional policy
Regional policy in the UK assisted areas
regional selective assistance
regional enterprise grants
Regional Development Agencies
EU regional policy
Government attitudes towards regional policy
Effectiveness of regional policy
REGIONAL AND URBAN POLICYREGIONAL AND URBAN POLICY
Urban policy in the UK Single Regeneration Budget
New Deal for Communities
English Partnerships
other schemes
Urban policy in the UK Single Regeneration Budget
New Deal for Communities
English Partnerships
other schemes
Government expenditure on regeneration policyin England (£ millions)
Government expenditure on regeneration policyin England (£ millions)
Government expenditure on regeneration policyin England (£ millions)
Government expenditure on regeneration policyin England (£ millions)
Government expenditure on regeneration policyin England (£ millions)
Government expenditure on regeneration policyin England (£ millions)
Government expenditure on regeneration policyin England (£ millions)
Government expenditure on regeneration policyin England (£ millions)
Government expenditure on regeneration policyin England (£ millions)
Government expenditure on regeneration policyin England (£ millions)
Government expenditure on regeneration policyin England (£ millions)
Government expenditure on regeneration policyin England (£ millions)
Government expenditure on regeneration policyin England (£ millions)
Government expenditure on regeneration policyin England (£ millions)
REGIONAL AND URBAN POLICYREGIONAL AND URBAN POLICY
Urban policy in the UK Single Regeneration Budget
New Deal for Communities
English Partnerships
other schemes
training initiatives
Urban policy in the UK Single Regeneration Budget
New Deal for Communities
English Partnerships
other schemes
training initiatives
REGIONAL AND URBAN POLICYREGIONAL AND URBAN POLICY
Urban policy in the UK Single Regeneration Budget
New Deal for Communities
English Partnerships
other schemes
training initiatives
The effectiveness of UK urban policy
Urban policy in the UK Single Regeneration Budget
New Deal for Communities
English Partnerships
other schemes
training initiatives
The effectiveness of UK urban policy
REGIONAL AND URBAN POLICYREGIONAL AND URBAN POLICY
Urban policy in the UK Single Regeneration Budget
New Deal for Communities
English Partnerships
other schemes
training initiatives
The effectiveness of UK urban policy limited financial help
Urban policy in the UK Single Regeneration Budget
New Deal for Communities
English Partnerships
other schemes
training initiatives
The effectiveness of UK urban policy limited financial help
REGIONAL AND URBAN POLICYREGIONAL AND URBAN POLICY
Urban policy in the UK Single Regeneration Budget
New Deal for Communities
English Partnerships
other schemes
training initiatives
The effectiveness of UK urban policy limited financial help
many jobs ‘created’ are not new jobs
Urban policy in the UK Single Regeneration Budget
New Deal for Communities
English Partnerships
other schemes
training initiatives
The effectiveness of UK urban policy limited financial help
many jobs ‘created’ are not new jobs