Ideas and Information: The Changing Role of States in Economic Development

Abstract

The "new federalism" of the last two decades transferred many responsibilities and public services from the federal government to states, in particular, the responsibility for adapting to the economic recessions of the 1980s. In response, many states restructured the organization of their governments to compensate for declining federal involvement and set up new information systems to inform state decision making. This article suggests that the ability of states to adapt successfully to the rapidly changing economic conditions of the 1990s is contingent upon their ability to provide accurate, timely, and accessible information about their local and regional economies to public and business interests.