MANAGING REGIONAL DEVELOPMENT IN SCOTLAND The SDA as Agency of Change Henrik Halkier, Aalborg University, Denmark –

MANAGING REGIONAL DEVELOPMENT IN SCOTLAND The SDA as Agency of Change 1. Setting the scene 2. Reviewing three phases of Agency origins developments endings 3. The SDA and beyond Conclusions and perspectives Henrik Halkier, Aalborg University, Denmark –

PRE-DEVOLUTION SCOTLAND From the 1970s towards the 1990s Socio-economic context  industrial restructuring  disadvantages UK region  dual identities

PRE-DEVOLUTION SCOTLAND From the 1970s towards the 1990s Socio-economic context  industrial restructuring  disadvantages UK region  dual identities Governance  decentralisation via Scottish Office  devolution remain on agenda  Labour dominance, Conservative erosion, volatile nationalism

The SDA CONTRASTING INTERPRETATIONS External revolutionInternal evolution Origins Early 1970s Development Endings

The SDA CONTRASTING INTERPRETATIONS External revolutionInternal evolution Origins Early 1970s Anti-nationalist opportunism by LAB Development 'Thatcherisation' from 1979 onwards Endings Symbolic termination by hostile CONS

The SDA CONTRASTING INTERPRETATIONS External revolutionInternal evolution Origins Early 1970s Anti-nationalist opportunism by LAB Superior new bottom-up policy paradigm Development 'Thatcherisation' from 1979 onwards Learning-by-doing change of profile and policies Endings Symbolic termination by hostile CONS Merger in principle sensible, details misguided

Three phases of Agency reviewed: ORIGINS Organisational consensus, diverging priorities  Highland Board as example: finance, advice, infrastructure  trade unions & Scottish Labour: public investment  local authorities and business: advice, promotion, infrastructure

Three phases of Agency reviewed: ORIGINS Organisational consensus, diverging priorities  Highland Board as example: finance, advice, infrastructure  trade unions & Scottish Labour: public investment  local authorities and business: advice, promotion, infrastructure Late conversion by unionist parties  SNP landslide in February 1974  CONS opposition goes first: Scottish Development fund  LAB government proposal: HIDB + investment + promotion

Three phases of Agency reviewed: CORPORATE DEVELOPMENTS Strategic discourse  more continuities than change  commercial before Thatcher  symbolic reordering 1979  discursive adaptation Quote-unquote: Pre-1979: Long-term profitable public investment Early 1980s: Profitable public investment Late 1980s: Venture capital market failure

Three phases of Agency reviewed: CORPORATE DEVELOPMENTS Strategic discourse  more continuities than change  commercial before Thatcher  symbolic reordering 1979  discursive adaptation Development resources  absolute real-term stagnation  private co-funding increase

Three phases of Agency reviewed: CORPORATE DEVELOPMENTS Strategic discourse  more continuities than change  commercial before Thatcher  symbolic reordering 1979  discursive adaptation Development resources  absolute real-term stagnation  private co-funding increase  relative importance growing

Three phases of Agency reviewed: CORPORATE DEVELOPMENTS Strategic discourse  more continuities than change  commercial before Thatcher  symbolic reordering 1979  discursive adaptation Development resources  absolute real-term stagnation  private co-funding increase  relative importance growing  project-driven organisation  delivery decentralising

Three phases of Agency reviewed: POLICY DEVELOPMENTS Industrial investments  increased activity levels  intensified pre-investment appraisal  public-private con-investment

Three phases of Agency reviewed: POLICY DEVELOPMENTS Industrial investments  increased activity levels  intensified pre-investment appraisal  public-private con-investment Inward investment  increasing priority  more proactive/selective  grant/promotion integration

Three phases of Agency reviewed: POLICY DEVELOPMENTS Sectoral initiatives & advisory services  increasing priority  gradual diversification  more proactive/selective  standard-service off-loading

Three phases of Agency reviewed: POLICY DEVELOPMENTS Sectoral initiatives & advisory services  increasing priority  gradual diversification  more proactive/selective  standard-service off-loading Infrastructure & environment  decreasing priority from mid-1980s  from 'black spots' to 'bright lights'  property portfolio partly privatised

Three phases of Agency reviewed: POLICY DEVELOPMENTS Dominant trends  policy continuity/expansion  increasingly proactive/selective  new policies prevail over inherited

Three phases of Agency reviewed: POLICY DEVELOPMENTS Dominant trends  policy continuity/expansion  increasingly proactive/selective  new policies prevail over inherited Tangible high-profile exceptions ?  privatisation of industrial property  inward investment & high-tech bias

Three phases of Agency reviewed: ENDINGS A Conservative change of heart ? 1987 administrative/political praise 1988 proposal via Thatcher short-cut Limited opposition ? Labour: local authority exclusion Unions/business cautiousness: more emphasis on training ? loss of strategic focus ?

Three phases of Agency reviewed: ENDINGS A Conservative change of heart ? 1987 administrative/political praise 1988 proposal via Thatcher short-cut Limited opposition ? Labour: local authority exclusion Unions/business cautiousness: more emphasis on training ? loss of strategic focus ? Termination or take-over ? Ideology against adept Agency ? Party-political advantages Labour wrong-footed side-lining of local authorities ministerial credentials Preferential regionalism Mark II training gets Scottish dimension

THE SDA AND BEYOND Conclusions and Perspectives The dual face of the politics of regional policy  ideology: limited public-private changes despite rhetoric  territorial: consensus about 'preferential regionalism'

THE SDA AND BEYOND Conclusions and Perspectives The dual face of the politics of regional policy  ideology: limited public-private changes despite rhetoric  territorial: consensus about 'preferential regionalism' From SDA to Scottish Enterprise  at international forefront of policy development  combining resources and strategic vision  benevolent political environment: arm's-length administration, Tory pragmatism  symbol of commitment to Scotland

THE SDA AND BEYOND Conclusions and Perspectives The dual face of the politics of regional policy  ideology: limited public-private changes despite rhetoric  territorial: consensus about 'preferential regionalism' From SDA to Scottish Enterprise  at international forefront of policy development  combining resources and strategic vision  benevolent political environment: arm's-length administration, Tory pragmatism  symbol of commitment to Scotland

THE SDA AND BEYOND Conclusions and Perspectives The dual face of the politics of regional policy  ideology: limited public-private changes despite rhetoric  territorial: consensus about 'preferential regionalism' From SDA to Scottish Enterprise  at international forefront of policy development  combining resources and strategic vision  benevolent political environment: arm's-length administration, Tory pragmatism  symbol of commitment to Scotland

THE SDA AND BEYOND Conclusions and Perspectives The dual face of the politics of regional policy  ideology: limited public-private changes despite rhetoric  territorial: consensus about 'preferential regionalism' From SDA to Scottish Enterprise  at international forefront of policy development  combining resources and strategic vision  benevolent political environment: arm's-length administration, Tory pragmatism  symbol of commitment to Scotland