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CHARLES SEAFORD
Senior Fellow, Demos, UK
Regional institutions and productivity: Implications for policy | 10 March 2022 | 14.00-15.30 | WEBINAR
#spatialproductivity
Is it only government quality that matters?
A response to the presentation by Dylan Jong
Jong’s “comprehensive view” = LIPSIT’s “strong local
institutions”
• The labour productivity effects of government quality,
decentralisation and fragmentation are interdependent 
• The most productive urban areas tend to have high government
quality, high decentralisation and low horizontal fragmentation
Implications
• This does NOT mean don’t decentralise until you have high
government quality – as Jong says these things are interdependent
• It does mean have a strategy for creating strong local institutions
(people quality, accountability, coherent decision rights)
@WCfPP
They matter because they facilitate policy success
factors
1. Coordination
Many levers need to be pulled – in a co-ordinated way
2. Partnership
The challenge is coordinated behaviour change and the overseas evidence is that partnership working –
between public/private/educational sectors - facilitates this.
3. Local capability and knowledge
Not just ‘the data’ but the people – what can and cannot be done
4. Accountability
There are stronger drivers for collective action and partnership when local decision makers can decide,
and are then held to account
Not just voting – also participation and performance management
@WCfPP
Structural
problems Recommendations for the UK
Decision rights Clarify decision rights
Funding Reform the funding system
Communication Strengthen accountability
Capabilities Develop capabilities
1
2
3
4

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Is it only government quality that matters? Charles Seaford

  • 1. CHARLES SEAFORD Senior Fellow, Demos, UK Regional institutions and productivity: Implications for policy | 10 March 2022 | 14.00-15.30 | WEBINAR #spatialproductivity Is it only government quality that matters? A response to the presentation by Dylan Jong
  • 2. Jong’s “comprehensive view” = LIPSIT’s “strong local institutions” • The labour productivity effects of government quality, decentralisation and fragmentation are interdependent  • The most productive urban areas tend to have high government quality, high decentralisation and low horizontal fragmentation Implications • This does NOT mean don’t decentralise until you have high government quality – as Jong says these things are interdependent • It does mean have a strategy for creating strong local institutions (people quality, accountability, coherent decision rights)
  • 3. @WCfPP They matter because they facilitate policy success factors 1. Coordination Many levers need to be pulled – in a co-ordinated way 2. Partnership The challenge is coordinated behaviour change and the overseas evidence is that partnership working – between public/private/educational sectors - facilitates this. 3. Local capability and knowledge Not just ‘the data’ but the people – what can and cannot be done 4. Accountability There are stronger drivers for collective action and partnership when local decision makers can decide, and are then held to account Not just voting – also participation and performance management
  • 4. @WCfPP Structural problems Recommendations for the UK Decision rights Clarify decision rights Funding Reform the funding system Communication Strengthen accountability Capabilities Develop capabilities 1 2 3 4