Devolution does not carry the promised economic return and further devolved powers will not necessarily bring more development, according to a leading academic. Kevin Morgan, professor of European regional development at Cardiff University, believes the evidence of an economic dividend from devolution is ‘at best ambiguous and at worst absent’. Speaking at the Institution of Economic Development annual conference in Liverpool, he questioned the current political enthusiasm for further devolution in the UK. ‘Devolution’s dirty little secret is that is doesn’t carry an early economic dividend,’ he said. ‘All economic indicators in Wales are going south. The question now is are we devolving our way to economic decline?’ While political leaders of all stripes are pushing the cause of devolution, the evidence from the OECD, the World Bank and others is that its effects are contingent rather than necessary and are ‘just one ingredient’ in economic development. Professor Morgan said that political leaders have cast his findings as ‘unhelpful’ as the devolution agenda is promoted across England. Last year’s sub-national review (SNR) of economic development and regeneration is predicated on an assumption that more devolution means more development, he said, but ‘as we move into uncharted territory of SNR we should remember devolution’s dirty little secret.’
One of the key benefits of devolution in Wales so far is that government departments have devolved from Cardiff to the regions, taking well-paid jobs to poorer parts of Wales, he said.
His comments came as new rail services connecting north and south Wales were announced.
A return service between Holyhead and Cardiff is expected to be in operation by December, cutting travel time by at least 30 minutes. From May 2009 a new half-hourly service will link Merthyr Tydfil and Cardiff. Economy and transport minister, Wyn Jones, said: ‘Devolution has meant that Merthyr is already the site of one of the Welsh Assembly government’s key offices. The new rail service means more sustainable travel options for the people of Wales and will support our move to make Valley communities a still more attractive location for people to live, work and play.’

Weblink

21 October 2008
© NewStart