Question

In what sense is a policy spatially blind? Provide some examples of policies that would be characterized this way.

Answer 1

A policy approach that takes account of specific assets that are by definition located in a particular place and seeks to co-ordinate the various sectoral policies affecting that place is more likely to achieve coherent, multi-sector policy outcomes than one relying on economy-wide policies that are “spatially blind”.

• Policy-makers are right to be concerned about the performance of the big regional hubs that are their main drivers of growth. If they falter, the impact on aggregate performance will be significant.
• However, most growth occurs outside the hubs. Indeed, many of the fastest-growing regions are second-tier cities and intermediate regions. Policies that helped the great mass of regions in the tail of the distribution to improve their performance could have a
potentially very large impact on growth.