3. WAVE is weak in that it: has no defined planning horizon has serious internal inconsistencies fails to set Wales place within the global context relies on strengths which have not been evaluated critically analyses the Economy in ways that do not link to most other policy agendas underplays significantly the role that the public sector might play

4. WAVE and sustainable development whereas WAVE suggests there is a high-level political commitment to SD, this is not followed through in the detail of the strategic framework There is poor linkage to other policy areas and Government goals such as climate change WAVE is a retreat from existing high level commitments, as laid out in the SD Action Plan and One Future – Different Paths, the UKs shared framework for SD.

5. WAVE is not a sustainable economic strategy because the model is incomplete, since it ignores the non-monetised economy, the use of natural capital and ecosystem services sustainable economic growth may be immoral from a social perspective and ultimately suicidal from an environmental one Cynnal Cymru advocates the adoption of economic development rather than economic growth, since it has qualitative as well as quantitative dimensions is more relevant to WAGs social inclusion agenda Is consistent with its commitments to One Future – Different Paths

6. Within the framework of WAVE, Cynnal Cymru recommends using public sector procurement as a driver supporting local enterprises supporting businesses that demonstrate compliance with SD principles promoting the Environmental Goods and Services sector promoting a low carbon economy sustainable management of Wales natural resources an integrated approach to rural development

7. TWO MODELS OF A SUSTAINABLE ECONOMY WAVE: Competitive Regions Localised exemplar

8. Competitive Regions, or beggar my neighbour Competes with neighbouring regions and other countries for natural and human resources Seeks to externalise social and environmental costs and disbenefits agglomerates benefits in south east Wales around Cardiff and Newport Requires investment in new roads, air services and other climate-changing economic infrastructure prioritises support for high technology, automotive, aerospace, industrial food production, tourism, financial services and the creative industries requires flexible and mobile labour, resulting in personal and social impacts values increases in overall wealth over improvements in welfare for lower income groups demands the continuous development of new products, processes and services, which is wasteful of energy and resources supports high-growth firms rather than small businesses Seeks to minimise environmental regulation

9. A Localised Exemplar Economy does not rely solely on markets to attach long-term value to irreplaceable resources accepts the intrinsic and economic importance of those natural resources is mainly local and community-led in production, consumption, work and leisure has a high level of public sector involvement in the management of resources actively plans and regulates current socio-economic activity for a low-carbon future values improvements in welfare for lower income groups more than increases in overall wealth attracts and retains people who empathise with this philosophy, to social and economic benefit measures welfare improvements in absolute, not relative terms