‘Constrained Discretion’ in UK Monetary and Regional Policy

Abstract

MCVITTIE E. and SWALES J. K. (2007) 'Constrained discretion' in UK monetary and regional policy, Regional Studies 41, 267 -280. H. M. Treasury claims that the notion of 'constrained discretion', which directs the effective operation of UK monetary policy, applies equally to other delegated and devolved policies, such as the use of Regional Development Agencies in the delivery of English regional policy. A 'transaction cost politics' perspective is used to argue that the delegation of responsibility for monetary stabilization raises principal agent issues quite different to those encountered in the delegation of the responsibility for regional regeneration. In particular, the effectiveness and transparency that characterize present-day monetary policy cannot be expected in regional policy. Further, the institutional arrangements that accompany the operation of Regional Development Agencies in England should be critically reviewed. Regional development agenciesTransactions cost politics Regional policy Delegation MCVITTIE E. et SWALES J. K. (2007) La notion de 'discrétion entravée' dans les politiques monétaire et régionale au R-U, Regional Studies 41, 267-280. H. M. Treasury (le ministère des Finances au Royaume-Uni) prétend que la notion de 'discrétion entravée' qui pilote efficacement la politique monétaire au R-U, s'applique aussi à d'autres politiques déconcentrées et décentralisées, tel l'emploi des Regional Development Agencies (des agences publiques chargées du développement économique régional) dans la mise en oeuvre de la politique régionale en Angleterre. On se sert d' une 'politique axée sur les coûts d'opération' afin d'affirmer que la délégation des compétences quant à la stabilisation monétaire pose des questions concernant l'agent principal qui se distinguent de celles posées pour ce qui est de la délégation des compétences quant à la reconstruction régionale. En particulier, on ne peut pas s'attendre à ce que l'efficacité et la transparence, qui caractérisent la politique monétaire d'aujourd'hui, soient présentes dans la politique régionale. En outre, on devrait faire la critique des dispositions institutionnelles qui vont de pair avec le fonctionnement des agences en Angleterre. Agences publiques chargées du développement économique régional Politique axée sur les coûts d'opération Politique régionale Délégation MCVITTIE E. und SWALES J. K. (2007) 'Erzwungene Vorsicht' bei der Finanz-und Regionalpolitik des Vereinigten Königreichs, Regional Studies 41, 267 -280. Das Finanzministerium von Großbritannien behauptet, dass der Begriff einer 'erzwungenen Vorsicht', der die effektive Handhabung der Finanzpolitik des UK bestimmt, gleichermaßen auf andere übertragene und in Auftrag gegebene Politiken zutrifft, wie etwa auf den Einsatz der regionalen Entwicklungsagenturen (Regional Development Agencies = RDAs) zur Ausführung der englischen Regionalpolitik. Die Autoren bedienen sich einer Perspektive der 'Transaktionskostenpolitik' (transaction cost politics), um den Standpunkt zu vertreten, dass die Ü bertr...

The Relative Efficiency of Automatic and Discretionary Regional Aid

“…See, for example, the adoption by the post-1997 Labour Government of the Regional Development Agencies as central institutions in regional policy delivery (McVittie and Swales, 2007). At the time of writing, Regional Selective Assistance still applies in Scotland.…”

How serious is a devolved data deficit? A Welsh perspective

“…This has included discussion of the rationale for, and development of, the different geographies of governance (for example, Harrison, 2012;Lee, 2017), and their potential implications (including for example Pike et al, 2010;McGregor and Swales, 2005). However, an important element of the UK localism agenda since 1997 is a focus on increasing regional accountability (McVittie and Swales, 2007). Indeed a consequence of the evolving decentralisation process, and new governance structures, is that more scrutiny is being applied to the ability of the devolved administrations to respond to the challenge of greater decision-making authority, particularly in relation to fiscal devolution.…”

“…The Allsopp Review (2004) recommended improvements to sub-national economic statistics, examining the data requirements to support overall UK regional policy, and some of these recommendations have been implemented. However, the Allsopp Review was criticised, with, for example, McVittie and Swales (2007) showing that the focus was overmuch on 'English' regional policy, and that for devolved regions there was a need for more understanding of how their regional economies operated. In this respect it was argued that there was inadequate attention given in the Allsopp Review to regional requirements for trade data and regional price indices.…”

Governance in the English Regions: The Role of the Regional Development Agencies

“…Government rhetoric surrounding the RDAs' launch was of regions and localities knowing best how to tackle the problems they face through the adoption of proactive, innovative and private-sector-'friendly' policies (McVittie and Swales, 2007a). More generally, it refl ected a shift in the operation of regional policy.…”