Partnerships and the economic development of regions: the case study of North-West Tasmania

1. Partnerships and the economic development of regions: the case study of North-West Tasmania Dr Chris McDonald 34th Annual Conference of the Australian and New Zealand Regional Science Association International (ANZRSAI) Wednesday 8th December, 2010

2. Overview • Background to this research • Theoretical framework • Empirical findings • Conclusion and policy implications

3. Professional background in designing the delivering partnership initiatives • Learning Cities and Regions Conference (2002) – entrepreneurial and locally led approach to economic development and social inclusion, advice for incoming government regarding regional policy • A Fairer Victoria (2004/ 05) – developing the idea about the importance of working with local communities to address disadvantage • Management role in Local Team (2006/ 07) – listening, negotiation, compromise and bargaining (with communities, service providers, local government, state and federal government agencies) to set priorities and mobilise resources

4. Existing debates – focus on the question of agency (capacity to influence economic development) • Regional Partnerships construct advantage & help solve wicked problems versus partnerships do not redistribute decision making authority & resources • Difficult to articulate the value-add of partnerships - association between them and the economic development of regions is at present unclear

5. Research question and key themes • Do partnerships promote regional economic development and if so, who shapes this agency? • Key themes: • Regional economic development in a global context • Value add of partnerships • 2 case studies: • North and West Tasmania • Leicestershire

6. Regional economic development in a global economy • The production of goods and services is organised through networks of firms and non-firm institutions – multi-nationals have a key role in shaping them • Place-based assets matter – physical, financial, social, political, cultural, natural capital • Regions develop if assets complement the strategic needs of firms (strategic coupling): • Economies of scale (concentrations of knowledge, skills and technology) • Economies of scope (broader spectrum of activities due to collaboration and spillovers)

7. Partnerships and regional economic development • Partnerships bring institutional actors within a locality together to undertake joint strategic planning and to monitor the implementation of agreed actions • Effective partnership working is dependent on networks that generate: • Collective efficacy = Confidence to work together • Political capital = Common objectives and influence. • These resources enable coordinated approaches to priority setting and resource allocation.

8. North West Tasmania • Population 110,000 – stagnation and decline since 1970s • Settlement concentrated in Devonport and Burnie • Comparative advantages – low business and living costs, high quality transport infrastructure, fertile soil, mild climate • Industrial strengths – agriculture, mining manufacturing, and tourism • Strong regional identity – but also local parochialism!

9. Cradle Coast Authority formed to help position the region for the future • Formed by 9 Councils in 1999 to be more representative of regional interests and establish priorities for future development of the region • Three components: • Shareholder group - Councils • Board – business, university, civic leaders • Chief Executive and work team • Development of an Annual Plan with joint strategies on issues such as: • Participation in education, employment and training • Land use planning • Value adding of traditional industries – Food processing • Natural Resource Management • Family and Business Migration • Climate change adaptation

10. Enhancing collective efficacy • Formation and strengthening of a leadership network that generated the confidence to work together • Improved flows of information and intelligence about regional development • Key factors: • Structural position - mediating between levels of government and competing interests of nine Councils • Authority, interests and skills of board members • Brokering role of the Chief Executive

11. Building political capital • Enabled the development of a shared narrative about the regions strengths and weaknesses: • Industrial decline • Environmental capital • Human capital. • Opportunistic approach to setting priorities and accessing resources. • Key factors: • Economic change and restructuring • Tensions and trade-offs amongst Councils • Government funding rules • Deliberation of the board • Analytical skills of the Chief Executive.

12. Conclusion and policy implications • Regions develop if their assets meet the strategic needs of firms in a global context (public policy issues arising from this are complex and cut across traditional organisational boundaries). • Partnerships are an important way of organising regional development strategies because they generate networks that: • Enhance collective efficacy • Build political capital …And these resources help overcome coordination problems amongst institutional actors. • Policy choices to further strengthen regional partnerships: • Greater flexibility and integration in government funding and support • Incentives/ rules to include a broader range of interests and organisations in regional planning. • Good evidence base and an engaged university • Broker who has strong communication, analytical and decision making skills • Board with strong leadership capabilities that is representative of regional interests.