The New Political Economy of Place-Based Policymaking: Insights from Professor Jeffrey Anderson
At The Productivity Institute’s recent Productivity Research Conference, Professor Jeffrey Anderson of Georgetown University delivered a keynote address that explored the shifting foundations of place-based policymaking. His talk, The New Political Economy of Place-Based Policymaking, examined why traditional assumptions no longer hold and what policymakers can do to adapt in an era of economic uncertainty and political turbulence.
A Changing Context: Economic and Political Upheaval
For decades, place-based policies – those designed to revitalise distressed regions – relied on a relatively stable set of economic and political conditions. These included predictable global trade patterns, cooperative governance structures, and a degree of political consensus. Today, those conditions have eroded.
On the economic front, globalisation is giving way to regionalisation. Rising protectionism, supply chain disruptions, and the restructuring of global value chains have created a more fragmented economic landscape. While these shifts may open opportunities for local manufacturing, they also introduce volatility and uncertainty, making long-term planning more difficult.
Politically, the environment is equally challenging. Anderson highlighted the return of the state as a dominant economic actor, with national governments prioritising competitiveness in response to global pressures – particularly from China. This focus often sidelines the needs of distressed regions. Compounding the problem is growing political polarisation and a widespread distrust of experts, which undermine the consensus-building essential for effective local development strategies.
Why Traditional Assumptions No Longer Hold
Historically, successful place-based policymaking assumed a supportive backdrop: stable economies, cooperative cultures, and reliable assistance from higher levels of government. These assumptions are now under strain.
First, economic uncertainty makes it harder for local actors to identify their region’s role in global value chains. Second, resource competition has intensified. National governments, preoccupied with strategic autonomy and industrial policy, are less inclined to allocate funds to regional initiatives. Finally, political vulnerability is a growing concern. Place-based strategies are often technocratic and apolitical by design, which makes them ill-equipped to withstand partisan pressures or to generate electoral rewards for their champions.
Opportunities Amid Challenges
Despite these headwinds, Anderson noted potential bright spots. The trend toward regionalisation and protectionism could create openings for distressed areas to attract investment in manufacturing and related sectors. If global supply chains shorten, regions that can offer skilled labour, infrastructure, and supportive networks may find themselves in a stronger position.
However, seizing these opportunities requires more than optimism. It demands strategic action to build resilience and adaptability at the local level.
Four Priorities for Action
Anderson concluded his keynote with a call to focus on four critical areas:
- Building a Knowledge Base
Regions must invest in understanding their unique assets and challenges. This includes gathering data on local capabilities, economic trends, and potential niches within national and global markets. A robust evidence base is the foundation for any credible development strategy.
- Building Networks
Effective place-based policy depends on collaboration. Local authorities, businesses, universities, and civil society organisations need to form durable partnerships. These networks not only pool resources but also foster innovation and resilience.
- Developing Public Capacity
Many local governments lack the expertise to navigate complex funding streams or design sophisticated policy interventions. Anderson emphasised the importance of capacity-building—sometimes through inter-municipal cooperation – to ensure regions can implement their strategies effectively.
- Building Political Support
Perhaps the most urgent – and most difficult – priority is to create positive political feedback loops. Without political backing, even the best-designed policies risk irrelevance. Anderson argued that national parties must integrate place-based strategies into their platforms, framing them as central to economic competitiveness rather than peripheral concerns. Historical examples, such as the New Deal in the United States, show that this is possible.
A Call for Resilience and Adaptability
The message from Professor Anderson’s keynote is clear: place-based policymaking is more necessary than ever, but also more difficult. The forces reshaping the global economy and domestic politics cannot be ignored. Policymakers must accept what they cannot change, focus on what they can control, and act decisively to strengthen local knowledge, networks, capacity, and political legitimacy.
These insights underscore the importance of research and dialogue on regional development. As the economic map is redrawn, the challenge is not only to keep pace but to ensure that no place is left behind.
Generative AI Disclosure: This blog has been written with the assistance of Microsoft CoPilot.
