{"id":2177,"date":"2012-03-06T09:22:57","date_gmt":"2012-03-06T09:22:57","guid":{"rendered":"http:\/\/realisedevelopment.net\/?p=2177"},"modified":"2012-03-06T09:22:57","modified_gmt":"2012-03-06T09:22:57","slug":"an-everyday-story-of-industrial-policy","status":"publish","type":"post","link":"http:\/\/realisedevelopment.net\/index.php\/2012\/03\/06\/an-everyday-story-of-industrial-policy\/","title":{"rendered":"An everyday story of ‘industrial policy’"},"content":{"rendered":"

\"\"<\/a>Imagine I was to start-up a successful game development business right here in the northern town of Darkhaven, using the phenomenal talent available in the city, courtesy of a vibrant digital community carefully nurtured by public and private cash.<\/p>\n

I am exporting my games all over the world, employing hundreds in and around the city (as well as an army of coders over in Eastern Europe and Asia). \u00a0We are an economic success story.<\/p>\n

The Finance Director knocks on my door and says ‘Mike, its time for us to consider a move. \u00a0If we were to\u00a0relocate\u00a0our\u00a0business \u00a0to Brighthaven I\u00a0think\u00a0we could negotiate some great breaks in return for the jobs we would bring them. \u00a0They will prioritise an application for the Brighthaven Growth Fund that could pay for a purpose built HQ on their new business park, and they will give us the land for a snip. \u00a0So, unless the economic development team at Darkhaven council are really prepared to up the support they give us we should really\u00a0think\u00a0about moving. \u00a0And if Brighthaven don’t come up with the goods there is always Southaven or anyone of another dozen cities that would love to be our home. \u00a0And that’s before we even look at the possibilities of moving the whole operation overseas. \u00a0This is no time for home town sentimentality. \u00a0This is business.’<\/p>\n

And so the arms race that is called ‘economic development’ \u00a0or ‘inward investment’ is underway as we play Brighthaven off against Darkhaven, talking to the politicians and the economic development directors seeing just how much they are\u00a0prepared\u00a0to offer to sweeten the deal. \u00a0And we wrap all of this up the language of ‘industrial policy’. \u00a0But in short I will take my\u00a0business\u00a0to whoever will offer me the best deal, the lowest cost base, the greatest support. \u00a0My future profit taking will enjoy a\u00a0healthy\u00a0subsidy from the taxpayer in return for the jobs that I bring to town.<\/p>\n

Each administration\u00a0makes careful\u00a0calculations\u00a0about\u00a0just how much it can do to win our business. \u00a0And in a sellers market where politics\u00a0probably\u00a0count for more\u00a0than\u00a0the long\u00a0term\u00a0economics we are always able to negotiate a good deal.<\/p>\n

Economic development becomes essentially the process of ‘buying’ jobs. \u00a0Which of course has nothing to do with developing economies.<\/p>\n