Our new working paper Cohesion through housing? argues against regional policy which aims to improve competitivity and create high wage jobs which would “level up” the UK’s “left behind places”. Per capita output measures of GVA and GDP are the standard metrics used in regional comparison. But, household income is more relevant to living standards and our paper focuses on the residual household income measure (after taxes, housing costs, transport and utilities) for owner occupiers, social renters and private renters in all the UK regions. Variation in house prices by region and by cost of housing according to tenure creates winners and losers in terms of living standards. Many ordinary places with low GVA per capita can work well enough for owner occupiers who can set low housing charges against modest wages; just as high GVA London can be purgatory for private renters paying one third or more of disposable income as rent. The implication is that regional policy needs to engage leading as well as laggard regions and to consider how the cost, quality and availability of housing and other foundational services drive living standards directly; and whether housing can be disconnected from the circuits of wealth accumulation.
Understanding how ordinary places works is important because it can open up new possibilities of making citizen lives more worth living. Our new research report How an ordinary place works: understanding Morriston takes up this challenge by focusing on a district town with 30,000 population some 3 miles north of the centre of Swansea. The report is of broad interest because it analyses Morriston in a new framework about the collective drivers of wellbeing. Within a hard frame of local settlement and activities, wellbeing depends not just on income but on the functioning of supply side infrastructures which provide foundational services through local networks and branches. On the infrastructure of grounded local services, Morriston starts with the advantage of relatively cheap housing. The mobility
infrastructure is car based so those without cars must struggle. While citizens complain about neglected social infrastructure of parks, community hubs and high street.
Our new working paper Foundational liveability: rethinking territorial inequalities is a response to political demands in Wales and requests from academic colleagues: “If the main steam has per capita GVA and GDP, where are our simple, intelligible foundational measures” Hence this paper about household residual income and foundational liveability. This incidentally undermines the idea of a successful or failed region with a unitary character because most regions are liveable for some types of household and unliveable for others. It also makes the connection to financialised capitalism because linkages to wealth accumulation are at least as important as earned income.The empirics in the paper show how this reframes the UK regional problem because we need policies for taxing unearned income and wealth in London as much as for boosting the Welsh productive economy.
The 2018 Foundational Economy Colloquium on Social Innovation in the Foundational Economy was held on September 5th at Cardiff University and on September 6th in the Steelworks General Offices at Ebbw Vale.
Here are slides and text which give some of the papers from the Cardiff sessions headed by the plenary from Oriol Estela Barnet head of strategic planning at Barcelona; and below are some presentations and notes of discussion from the Ebbw Vale sessions on care, regeneration and procurement
Plenary: Oriol Estela Barnet (PEMB) “On Barcelona’s first steps towards a foundational strategy” Cardiff Sept 2018
Regional economies: Adam Leaver (Sheffield) “The financialization of property and the diseconomies of agglomeration”Cardiff Sept 2018; Andreas Novy and Leonhard Plank (TU Vienna) “Intermediary institutions in Austria and Vienna” Novy Cardiff sept 2018
Cities: Sarah de Boeck, David Bassens and Michael Ryckewaert (VUB Brussels) “Making space for a more foundational construction sector in Brussels” Cardiff Sept 2018; Mike Hodson and Pam Stapleton (Manchester) “From developer regeneration to civic futures in Greater Manchester” Hodson Cardiff sept 2018
Citizenship: Filippo Barbera, Nicola Negri and Angelo Salento (Turin) “Foundational economy, local commons and citizenship” Cardiff Sept 2018; Mick Moran and Karel Williams (Manchester) The struggle for social citizenship in the 2020s” Williams Cardiff sept 2018
Wales: Colin Haslam, Sukhdev Johal and Nick Tsitsianis “How and why the foundational economy matters in Wales” Cardiff Sept 2018
Care: Diane Burns, Sue Evans, Adrian Roper “What can we learn about care by thinking about money” Welsh develops Care Ebbw Vale sept 2018; Diane Burns, Julie Froud and Adrian Roper “Report on workshop discussion of care” Cardiff Sept 2018
Regeneration: Jill Ebrey and Ross Williams “New place based policies (for Morriston)” Welsh develops Regen ebbw Vale sept 2018
Procurement: Steve Cranston and Calvin Jones “Blaenau Gwent Foundational Economy Pilot.” Welsh develops Procurement Ebbw Vale Sept 2018; Steve Cranston and Kevin Morgan “Report from procurement workshops Workshop report procurement Ebbw Vale sept 2018
Our most recent report in August 2018 From developer regeneration to civic futures Report sets Manchester’s current choices in a historical context and argues that the city is at the end of a trajectory of developer led regeneration. And needs a new politics for foundational service provision which would once again tackle issues of collective consumption but do so in a more participative way which involves citizens. This report on the city region of Manchester is part of a broader ongoing concern with regional policy.
This new book from the foundational economy collective will be the go to source for engaged citizens, active practitioners and critical academics beyond who want to know more about the foundational economy concept and its relevance to the politics of progressive reform.
The foundational encompasses material utilities like water, gas and electricity and providential services like education, health and care. The book explains how the material and providential matter economically and politically because they are the collectively consumed infrastructure of everyday life, the basis of well being and should be citizen rights. The emphasis on citizenship is an important new development in foundational thinking.
From this point of view, the foundational economy has a history which began heroically and ends in degradation. In the century after 1880 national and local state action built up the supply of foundational services right across Europe and North America. Since 1980 their systems of provision have been undermined by state neglect. This is variably combined with privatisation, outsourcing and market choice which import the unsuitable business models of financialized public companies and private equity.
The book takes up the political challenge of thinking about how we can have a better future. It does not recommend specific policies but proposes broad principles for re-building the foundational which could mobilise old and new social actors in broad political alliances; ask the citizens what they want; reinvent taxation; lean on intermediary institutions; and do not assume the state is benign and competent.
The book is relevant to all of Europe and beyond and will be available as an accessibly priced paper back in three languages. MUP, publisher of our Manchester Capitalism series, leads in English in September 2018 with German and Italian editions to follow from Suhrkamp and Einaudi in 2019. Before you buy the book, do read our introductory chapter on this web site which explains the argument of the book here.
Mick Moran died suddenly after a heart attack on 3rd April. This was completely unexpected and it is still difficult to accept the death of a collaborator who had such energy and was already up for the next project. He had played a key role in the development of the political dimensions of foundational thinking in our collective, most recently by introducing citizenship arguments And he had shared drafting duties on much of our recent output so that Foundational Economy will be his last and our next book, when published in the autumn. Those who met Mick as a modest, wise old man often did not realise there was a remarkable back story which is summarised in our obituary. He was the child of migrants who had been born into rural Irish poverty; then had a distinguished career as a political scientist from which he retired to join us in our foundational project. Our intellectual loss is great because this was a life interrupted when Mick was still at the peak of his creative and innovative powers. But we also remember that this was a life well lived and know that the values of imagination of the Foundational Economy book are a fitting memorial.
Read our obituary here.
This yeart’s colloquium will take place on the 5th and 6th of September 2018. The first day will be academic led at Cardiff university. As well as the usual papers and presentations, we will include a discussion of how to develop the European network of academic researchers. The second day will be practioner led at Ebbw Vale and will include reports back from the Welsh experiments at Swansea and Ebbw Vale.
Anyone wishing to attend should, in the first instance contact Joe Earle, the organiser at email@example.com .
Swansea Bay report 2017
In June 2017 foundationaleconomy.com and CREW (Centre for Regeneration Excellence in Wales) launched What Wales Can Do a new report on policy for the Swansea Bay city region. This new report follows up the earlier 2015 report What Wales Can Be and adds new evidence, arguments and framing. The argument in this new report is for an asset based approach to developing the foundational economy in the region. The starting point is two observations about the limits of the main stream policies and policy making. The Swansea Bay City Deal which was signed off in Spring 2017 focuses on next generation industries which will never be volume employers; and more fundamentally, government (local, Welsh and national) does not know what to do in key policy areas like small business support and adult care. So what we need is a coalition of state and non- state actors to undertake scaleable experiments. These would aim to break down the barriers between economic and social policy and increase tangible welfare (not market incomes measured by GVA per capita). The report can be downloaded here. This is now being followed up with local funded experiments in Swansea Bay Blaenau Gwent.
With Article 50 triggered, British voters had to brace themselves for Brexit after a referendum campaign which had not framed the key issues or articulated the choices for our increasingly disunited kingdom. So here is an antidote, a working paper from foundationaleconomy.com researchers which explains how we could and should make Brexit work by reorganising the foundational economy which provides essential goods and services to every household. When Theresa May called an oppurtunist general election in 2017, she promised “an economy that works for everyone“ and Jeremy Corbyn as leader of the oppasition campaigned for a “ fairer society” This working paper sketches a route map for how to deliver on these objectives. The working paper is available here.