Comparative Studies in Local Economic Development: Problems in Policy Implementation.

Case studies are both the blessing and bane of the "science of policy." To remedy their uneven nature and draw general lessons, the Policy Studies Organization sponsored this series. This anthology comes close to its ideal of making sense of case studies. The thoughtfully conceived book begins by setting the problem of local economic development policy in its intellectual and political context, proceeds to examine four cases of external influences and three cases of relationships with local communities, then draws conclusions. The cases come from the United States, Great Britain, and Germany.

Part III investigates three waterfront development projects, in Baltimore, Cardiff, and New Orleans, chosen for their parallel goals and situations. All demonstrate conflict between the planning authority and the locals. In Cardiff and New Orleans the planners have the backing of the higher level of government (a national board and the State of Louisiana respectively). In Baltimore the planners are not explicitly tied to a higher level of government, but do have regional power.

In all three instances big business scores a victory over the locals. Interestingly, in two cities, a dominant force is real estate, intent on building middle class and luxury condominiums on the waterfront. From a civic perspective which does not necessarily sympathize with existing residents, the creation of a bourgeois neighborhood might seem particularly desirable.

In Part II analysis of the Glasgow region finds conflict between the city and higher level (Scotland) similar to that between city and state governments in New Orleans. In both instances the cities wish to promote their interests and have a history of some animosity with the higher levels. Moreover the Scottish Development Agency "remains wedded to the growth pole philosophy," a fad of 20-30 years ago that has gone out of fashion many places.

The philosophy of the State of Louisiana is simpler -- to promote the shipping industry. The city, on the other hand, seeks to promote tourism. In part, the city advances tourism because it is more completely within its control than shipping and, in part, because the benefits accrue nearly entirely within the city limits compared to the more dispersed benefits of shipping.

Similarly in Glasgow the prosperous new industries tend to locate in the far suburbs outside of the city limits. Although the central business district has prospered as well, a ring of stagnation surrounds the center and constitutes most of the area within the city limits.

Examination of economic revival of the Ruhr region of Germany points out its dependence on public investment, which the author contrasts with the "privatism" found in the United States and Great Britain. The Ruhr, the historic center of coal and steel, has suffered from the depletion of its mines and the obsolescence of its factories much like Pittsburgh and Youngstown. Its air and water are polluted. The region's strategy has been government investment, cooperation with private business and promotion of its low costs and skilled labor. Unfortunately this case study suffers the misfortune of poor timing. The unification of Germany has changed government and business investment radically.

Comparisons with Europe are an excellent idea because they show how other industrialized Western democracies address similar problems. Yet having chosen this laudable approach, the anthology does not consider some major issues that seem unavoidable. The chief one is that Western Europe has created virtually no new private sector jobs in recent decades while the United States has created millions. In Europe virtually all new jobs, a rather modest number overall, have been in the public sector.

Granting again the benefits of comparison with Europe, the book could have benefitted from cases from France and the Netherlands, two countries that place great emphasis on planning for economic development and have an extensive scholarly literature on the topic. Regrettably the common language keeps Americans overly tied to the Mother Country.

Unanswered questions arise for American cases as well. For example, the study of residential real estate in Baltimore neglects race relations and schools, both volatile subjects in the Monument City.

These weaknesses are minor, however, when measured against the exemplary conceptualization, focused comparisons, and thoughtful conclusions of the anthology.

David Howard Davis
University of Toledo