Lessons in Governance & Economic Development from

Small & Remote RegionsCRRF- Tweed- Oct 2004

Godfrey BaldacchinoCanada Research Chair (Island Studies)

University of Prince Edward Island

gbaldacchino@upei.ca

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The Periphery in the Knowledge Economy (Polese & Shearmur) 2002) INRS, 2002)

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Big Cities growing bigger…

1971 1981 1991 1996 2001

Cities over 1m 33.3 32.9 35 35.8 36.9Cities 500k-1m 9.3 10.4 10.6 10.5 10.8Other Central Cities/Areas 25.5 25.3 25.3 25.3 25.5Peripheral Cities: 100-500K 7.7 7.6 7.6 7.5 7.2Peripheral Cities:50-100K 2.7 2.9 2.8 2.8 2.5Peripheral Cities:10-50K 5.8 5.9 5.5 5.4 5.1Peripheral Rural Areas 15.7 14.9 13.2 12.8 12

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Observations

• Concentration: population, employment, economic capacity, knowledge capacity

• ‘Geography as Proximity’ Matters

• Peripherality = being too far away from large cities?

Halifax363,000

St John’s173,000

Moncton118,000

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The Insular Edge (NAIP) – Looks Familiar?

• Diseconomies of Scale, worse with isolation

• Dependence on narrow range of ‘goods’

• Distance to markets – High Transport costs

• Value of Imports higher than Exports

• Narrow range of Local Skills

• Human & Fiscal Capital Drain

• Exposure to Hazards & Market Changes

• Absence of Specific Data

• Scenario: Pleasure Periphery? Washroom?

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Lessons from the Periphery – how not to become a ghost town

• People: Luring Talent Here/ Home

• Resources: Promoting ‘good’ environment

• Overseas: Tapping Diaspora & Tourism

• Finance – Low / No Tax Regime

• Trans-Local Relations – Para-Diplomacy

• Transportation - (Control over Air/Sea)

• Jurisdiction as Economic Resource

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Integrating Economies, Splitting Polities, Exploding Governance

Ex-Colonies, Indigenous People, Cities, Communities, Regions, Minorities…

• seek autonomy in governance.

• value environmental resources.

• search for the power of being small.

• crave specific status – by design, by convention - with larger players.

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Showcasing Successful Island Firms

The NISSOS Project

www.nissos.net

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CMS –

Content Management System

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Small & Remote Places can be…A Safe Place to Work from/Raise Families

A Safe Partner for Business

Well Supported by Relational Networks

Staffed by Good, Loyal Employees

Communal ‘Cooperative Competition’

An Attractive Magnet for ‘Outsiders’

Competitive, Quiet yet Linked