Foundational Economy - PowerPoint Presentation

Foundational Economy and Foundational Politics Julie Froud and Karel Williams foundationaleconomy.com

Presentation in two halves What is the foundational economy? What is foundational politics? Questions between + after

(1) What is the foundational economy

What’s the FE about? (not income + jobs but) social infrastructure We are too preoccupied with income + jobs as means to welfare. GDP/GVA measure market incomes per capita which we distribute unequally so poor households don’t see much of it; not just the 20% working age popn but those in low paid, precarious jobs: working poor with rent arrears + 35 % of households receiving more from state than they pay in. For many citizens well being depends on the broad social infrastructure of civilized life delivering basic services = cost and availability of housing, price of winter fuel, public transport timetable, access to services like care or mental health (“shit life syndrome” = 10k anti depressant prescripts a month for 60k Blaenau Gwent adults) Sensible to start from an inventory of foundational provision and an inquiry into citizen needs and wants

Broad social infrastructure (a) sustains household well being (often not well) On the demand side, all households depend daily on uninterrupted supply of basic services: providential services like health services and care, universal primary and secondary schooling material infrastructure of pipes and cables connect every house to the systems which make everyday life possible, safe and civilised Mixed up with citizen rights in some activities but not in others eg health and edn vs care or housing in 2017; changing line cf Tory election manifesto 1951 says “ housing is the first social service” + government does 300k council houses a year. Collective provision not individual choice: you can buy a mobile phone but not a 4G network

Broad social infrastructure(b) distributes wellbeing through local jobs On the service supply side, FE distributed by networks and branches according to population in Nantyglo and Notting Hill; long term sick + investment bankers both shower in the morning, shop at the supermarket + use public transport The two core foundational domains are large scale employers; in South Wales what’s left after the collapse of tradeable goods (coal, steel, assembly); Blaenau Gwent will have 35% providential + >15 % in material infrastructure FE is mainly sheltered with wages+ conditions not determined by international competition. FE = local distribution always + local production sometimes; eg Welsh food needs position in an import and export economy eg supermarkets should support UK wide mid market position for Welsh dairy + lamb with pig meat imported from East of England, Holland and Denmark (not localist autarchy)

Foundational employment Material share of employment Wales 17% Swansea Bay 17% Blaenau Gwent ? Providential share of employment Wales 32% Swansea Bay 35% Blaenau Gwent ?

Where to start?not deficiencies but assets Don’t start by listing deficiencies of per capita GVA etc or hope to attract mobile resources + glamour projects ( eg motor racing Circuit of Wales promised 6,000 jobs + certainty WG got the downside liabilities) But ‘ recognise what’s there, enable what’s there and build on what’s there’ ie map resources, build capabilities, mobilise around local issues for asset based econ development Assets are (a) something useful = resources + capabilities (b) owned or controlled: eg workforce, SME firms, third sector orgns , local or WG not just public sector anchor instns . but grounded firms eg SMEs like Sidoli’s ice cream in Ebbw Vale = 3 rd generation + 40 employees not just localism/ beyond asset based community development based on community; because control lines run upwards and outwards eg on bus fares + timetables

(2) What is foundational politics

The tired old politics: “vote for us + we will make the economy work” Making “the economy” work = more per capita income growth ‘n more jobs via making the labour market work ie narrow definition of (economic) infrastructure as transport to work + skills as certification for work Separately tackle social deprivation with social and econ policy in different boxes Top down policy, because experts know what to do eg EU + WG deliver the Ebbw Vale Enterprise Zone, A456 upgraded to dual carriageway, new FE Coleg Gwent + an ungrateful 62% vote leave in Blaenau Gwent We can’t assume benign and competent government will fix it while many others work in silos ( often seeking gov grants)

Vision of a new FE politics:citizen participation + intermediary institutions What we can do is improve quantity, quality + access to foundational goods and services for citizens; requires investment in social infrastructure that’s meaningful Breaking down the line between econ + social policy Policy as learning from experiments eg in reorganising care or small business support; not knowing what to do before we start Adding participative + deliberative; very difficult but we know what happens if you don’t Coalition of regional and local actors; with intermediary institutions often in the lead

From old to new? Wales needs a paradigm shift in policy From Making “the economy” work ie income growth ‘n jobs via narrow econ infrastructure + skills; separately tackling social deprivation Top down policy, experts know what to do eg infrastructure + skills, policy as a gift to the masses Benign and competent government will fix it and many others work in silos To Quantity, quality + access to foundational goods and services for citizens; broad social infrastructure (econ + social) Policy as learning from experiments; adding participative + deliberative Coalition of regional actors; with intermediary institutions often in the lead

Difficult transition: (a) loss of social capital + institutions “Deindustrialisation” = a huge destruction of social capital/ the networks that made things work; eg in South Wales after collapse of the large unionised work place only ¼ of the private sector work force is unionised; the churches + chapels get 5-10% each Sunday What social actors and educators can replace unions and churches? Corbyn has revived the Labour Party as the supporters club Government isn’t good at thinking about how to encourage intermediary institutions from Housing Associations to Indycube to move into community organization and local economic development: WG has a sentimental attachment to coops but limited understanding of problems + coops need to be proactively organised

Difficult transition: (b) innovation won’t abolish hard choices eg adult care

The need for lead institutions +foundational alliances In the first instance initiative for policy experiment must come from lead institutions and organisations who have resources and adaptability to kickstart change and lead mobilisation for foundational economy interventions. Organisations are reservoirs of capability and we must tap that capability in the Assembly, in government offices, quangos, civic membership organisations and business of all kinds In Wales, the Housing Associations are well placed: large organisations, some discretionary spend, financially literate; need to connect downwards with tenants, side ways to local networks + upwards to WG (other instns . elsewhere)

Can Welsh housing associations move from anchors to intermediaries? “Anchor institution” is classically a public/not for profit organisation with a local spend that can be redirected in a socially responsible way eg CLES and Preston model or Keith Edwards and the CIH tool kits for getting jobs out of housing procurement And we do need to do this: LG procurement is still caught up in post code localism not effectively supporting grounded firms and labour only micro firms But can HAs become intermediary institutions: (outside housing) capable of initiative and catalysing change in areas like adult care after an inventory of providers and provision