Welsh Journals

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4. A NEW ECONOMIC DEVELOPMENT MODEL FOR THE NEW WALES Molly Scott Cato In response to the decision to establish a Welsh Assembly, Peter Midmore, in Contemporary Wales, 11 (1999a), set out a research agenda for the area of rural economic development. In a similar vein this article seeks to discuss the agenda facing the Assembly in terms of policies to address unemployment in Wales. Further to Midmore's claim that the creation of the Assembly has raised 'expectations for improved economic development', it would seem that the movement of a significant amount of power over economic decision- making from London to Cardiff has placed a responsibility on those with an influence on the future direction of the Welsh economy academics, polit- icians, and policy-mafcers1 to lead a debate about the direction of that economic development. As a contribution to this debate this article argues for a reappraisal and reorientation of economic development policies, specifically employment creation, across Wales. It proposes the need to develop an authentic, Welsh-based model of economic development, and takes the recent experience of Tower Colliery as offering some initial pointers towards the kind of model this might be. No firm conclusions are reached, but as the intention is to open up a debate this seems appropriate. JOB CREATION BASED ON INWARD INVESTMENT Previous articles in Contemporary Wales have identified job creation based on inward investment as having been the central plank of employment policy in Wales for several decades (see Roberts, 1994; Drinkwater, 1997; Lovering, 1999; see also Institute of Welsh Affairs, 1993; Thomas, 1996; Morgan, 1998). This section summarizes arguments for and against this policy.