The purpose of local industrial policy

Abstract

It is argued that the local investment strategy proposed by Best in Local Economy 1 is incapable of creating jobs in the way that it claims, and that it tends to perpetuate and create divisions and inequalities within the workforce. Instead local investment strategies need to be centred, not on increasing productivity but on helping to strengthen the collective organisation of workers. Some ways are discussed in which local authorities might begin to do this but to carry this through consistently will require national planning of industries and compulsory powers over investment decisions by private firms.