Wednesday 23rd of June 2010

Neil McInroy, Chief Executive, Centre for Local Economic Strategies

A JOURNEY INTO THE UNKNOWN?Conference on the future of the VCS in the South West

Localism and Resilience

What is CLES?

Independent charity. No commercial sponsor or government grants

Economic development but with social fairness and within limits of environment

UK, but also work in Europe and beyond!

Established 198620 staff: planners, geographers, local government, environmental scientists, economists and french horn players!

Hybrid; research, consultancy, members

Growing-but will stay small

CLES Research and policy work

Economic resilience:Norfolk Fellowship international research projectCLES resilience Pilot – with 12 Local Authorities

Economic and social tools Economic footprint of public sector in Manchester, Swindon, West LothianSustainable benefits of ‘progressive’ public spend (with APSE)Social return on investment modelling and Social network analysisLEAN Local Economic Assessment network

Economic Policy workNorth West England Integrated Regional Strategy Review

CLES Research and policy work

Futures work:Future city game (with British council) – Moscow, Pilsen, Blackburn, Riga and now in South West

Green Economy:Green skills/green new deal/green behaviours

Financing economies/regenerationEquity finance/changing behaviours to venture capital

Poverty/economic inclusionAnti-Poverty strategies

Well beingEvaluation of BIG lottery well being programme (with New economics foundation)

Challenging times!

Climate change, peak oil, peak water, peak soil, energy insecurity

Economic recession

Unemployment,

lack of capital for investment, lack of economic diversity

Regeneration incomplete – Even the boom times were not that good! Still work to do….

Cuts – ‘the sector's share of the cake will grow, even if the cake shrinks’ Nick Hurd

Inequality (socially and spatially)..and getting worse?

“Grossly unequal societies do not solve their problems they chase them around the policy map” (Robson and Turok, 2007)

Ageing and migration

What does CLES think?

Frustrated and often angry:

Not enough emphasis on local place

Existing economic development is synonymous with growth

Economic development is failing and may continue to fail to embrace the challenges of our time

Existing economic development models..failed to factor in aspects such as the environment, social capital, volunteering etc

Places seemed to go through bouts of boom and decline

Some economic development ‘stamps’ on local identity

Scaring traditional Local Economic development

professionals!

Carbon reduction Commitment Carbon Emissions Reduction Target Energy Performance Certificates Biomass Strategy Zero Carbon Homes Code for Sustainable Homes The Planning Bill Various Planning Policy Statements Local Government White Paper

GDP and Life Satisfaction 1973 - 2002

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001

GDP

Life Satisfaction

Policy assumptions underlining current economic policy

CLES research and work on place resilience

“What factors contribute to making a local place resilient, so that the environment is nurtured, the economy and wider society remains strong and ensuring no area or community loses out?”

Resilience is a superior concept/word than ‘sustainability’

Model developed- 6 country/place study around the world

Applying it/testing it within UK and in Australia

Cambs, Northumberland, South Staffs, Ashfield/Mansfield, Gloucester, Manchester and Dandenong - Melbourne

Background to place resilience

Resilient places: places which now and in the future can withstand environmental and economic shocks and changes, repel negative factors and come back from adversity

Majors of fairness and equity

Considers all aspects of the economy: including commercial economy, social economy and the public economy

We need ‘springy’ and ‘spongey’ places!!

Resilience is an emergent property of a system – it’s not a result of any one of the system’s parts but of the synergy between all its parts. Thomas Homer-Dixon, The Upside of Down, 2006.

Creation of place resilience

Our model for assessing place resilience

The place resilience model

Public economyPublic expenditure on goods and servicesMake up of public sector activityPublic employment

The place resilience model

Public economyPublic expenditure on goods and servicesMake up of sectorPublic employment

Social economyContribution of community activities and networks to the local economy including ‘core’ economy

Direct economic activity such as social enterprises, Core economic activity –social capital (e.g voluntary organisations, community groups, neighbourliness, social consciousness)

Core economy

Invisible economy that we take part in every dayThe economy of the home, family, neighbourhood and communityIt is an economic system as it involves the goods and services produced, exchanged and distributed Like a computer

Operating system: The core economy Specialised programs: Hospitals, schools, civil society

The programs may be ok, but the operating system is struggling!

Core economy

An emphasis on the core economyUK 40% of all economic activity takes place in the core economy - not currently reflected in GDP £87bn of unpaid care could be allocated to the core economyIf the core economy fails, burden on public and private sector grows

The place resilience model

Public economyPublic expenditure on goods and servicesMake up of sectorPublic employment

Social economyContribution of community activities and networks to the local economy including ‘core’ economy

Commercial economy Commercial turnover in localityMake up of sectorProvides the bulk of employment

RELATIONSHIP AND THE SPACES BETWEEN THESE AREAS IN A LOCAL PLACE ARE KEY

Social economy and VCS intrinsic to economic success of place

Grants and not just contracts have a crucial role to play

A big society cannot squeeze out the social economy

The connections between public/social, social/commercial are very important

Conclusions

Centre for Local Economic Strategies

EMAIL. neilmcinroy@cles.org.ukWEB. www.cles.org.uk TWITTER. @neilmcinroyPHONE. (0044) 161 236 7036