Thursday, May 5, 2016

REFLECTIONS ON THE ORIGINS AND INEQUALITIES OF FRAGMENTED REGIONALISM



REFLECTIONS ON THE ORIGINS AND INEQUALITIES OF FRAGMENTED REGIONALISM[1]




[1] See H.V. Savitch and Sarin Adhikari (2016) “Fragmented Regionalism:  Why Metropolitan America Continues to Splinter” Urban Affairs Review and “Response to Lidstrom, Lewis and Barnes”, Urban Affairs Review  

Some of our colleagues have commented that regional governance existed only in the minds of academics.  We think that claim warrants correction, not only because it is mistaken but also because it does not appreciate broader impulses toward creating regional institutions.  The fact is some regionalist roots can be found in non-governmental organizations and at all levels of government.  These included the Council on Economic Development, the Regional Plan Association and the Advisory Commission on Intergovernmental Relations (CED 1966; RPA 1980; ACIR 1974).  The 1960s were fraught with national initiatives toward regionalism; particularly in the creation of Councils of Government (COGs) and Metropolitan Planning Organizations (MPOs). Perhaps the most notable salutation to regionalism arrived when localities began to implement it, first in Miami (1956) then in Minneapolis (1967), and later in Portland (1979).  For a while it seemed regionalism was emerging from the shadows.

By the 1980s this momentum came to a screeching halt.  Hopes for regionalism were terminated by the Reagan administration’s pull-back from city issues, though we can also see regionalism’s limitations as much more entrenched. A number of structural factors were deeply at work in stunting regional ambitions.  These were, political incentives for keeping local governments small and independent; economic requirements for the development of highly specialized localities as separate jurisdictions; and, the success of public authorities in threading the needle between regional and local interests (eliminating the need for comprehensive reform).  Coupled to these factors were racial motivations to keep out non-whites and a popular belief that local matters were best managed at the local level.   

While these factors preserved the status quo, the usual patchwork of regional “kludges” kept metropolitan machines running.  These included public authorities whose primary missions were to care for roadways, airports and mass transit.  For regional enthusiasts the real loss lay in the absence of an institutional mechanism to mitigate socio-economic inequalities and rejuvenate local economies. 

Our critics might be right to protest that states are well designed to fill this gap or that the federal bureaucracy is well equipped to deal with these exigencies.  And yet, there are three reasons why those arguments should be tempered.   The first is that without some kind of regional multipurpose authority, localities will continue to proliferate, pirate resources from each other and actually depress some job development.  The second, is that fragmentation is linked to inequalities both within and between jurisdictions (Hill 1974; Prud'homme 1995).  And, the third is that “special districts”, like public authorities, have an “upward spending bias” that greatly reinforces inequalities (Foster 1997).  

Our own findings verify these propositions.   Beginning with the first, in some ways local fragmentation is a good thing.   It maximizes residential choices for some households and improves government performance and economic development for most other citizens.  On the other hand, too much of something can also be damaging.  Fragmentation creates walls between social classes and leads to the wealthiest jurisdictions gobbling up positive externalities, while the poorest localities absorb negative externalities and are isolated from any grip on the regional economy.  The examples are abundant.  Characteristically, affluent localities are proximate to waterways, mountains, central business districts or major transportation corridors.  The poorest localities often sit on unwanted land uses, garbage dumps, waste treatment plants, halfway houses or drug clinics.

The second proposition is especially compelling.  The United States and most other advanced economies are in a spiral of rising inequalities.  Notwithstanding, the political rhetoric of both political parties, the reasons for this are not due to “Wall Street” conspiracies (claimed by Democrats) or governmental obstacles (claimed by Republicans).  The major reasons for inequality have everything to do with structural economic changes. 

At the forefront of those inequalities is a shift away from manufacture to a digital and service economy.  Even as manufacture mildly resurges, new production is governed by high tech equipment, robotics and three dimensional printing.  Once abandoned factory buildings in Akron, Pittsburgh and Detroit are now abuzz with new kinds of production lines and knowledge industries.  Add to this globalization and its attendant promotion of free trade, corporate mobility and easy migration and we can see why blue collar jobs are shrinking.  All of this has made the days of $40 an hour assemblers obsolete and creates deep cleavages in national income curves.  

No amount of demagoguery by Bernie Sanders or Donald Trump can restore those lost jobs. Nor can we find our way out of inequality by redistributive policies in a nation where 60 percent of the national budget is already committed to entitlements of one kind or another. We can only exit this crisis by developing our way out of it.  What is required is continued modernization of our economy, a reconstruction of our infrastructure and a strongly competitive international trading posture. 

This brings us to our third proposition.  While public authorities have contributed to regional imbalances, they are capable of reversing that course of investment.  More than anything, public authorities are institutional tools for development, which thus far have followed lucrative markets and high capacity metropolises.  There are however other frontiers in need of regional public authorities.  Worn out rustbelt and legacy cities are perfect locales for renewing old ports, refashioning old railway systems and rebuilding old urban cores. Imagine, adding a dollar in additional taxes to each purchased gallon of gasoline; then devoting that additional revenue toward building smart electrical grids and burying scraggily utility lines where they can be shielded from storms and blackouts.  Infrastructure construction is what public authorities do best and they have a record to prove it.   Here is a job that is waiting to be done and will put unemployed and underemployed citizens back on their feet.   

We have an achievable opportunity before us.  Rather than the improbability of an old regionalism based on the folly of redistribution, we can do a lot with a new regionalism based on the realism of smart development.   


References
Advisory Commission on Intergovernmental Relations. 1974. Substate Regionalism and the Federal System Volume IV: Governmental functions and processes – local and areawide. Washington, DC, February.

Advisory Commission on Intergovernmental Relations. 1974. Substate Regionalism and the Federal System Volume III: The challenge of local governmental reorganization. Washington, DC, February.

Advisory Commission on Intergovernmental Relations. 1973. Substate Regionalism and the Federal System Volume II – Case Studies: Regional governance, promise and performance. Washington, DC, May.

Committee for Economic Development. 1966. Modernizing Local Government. A statement by the Research and Policy Committee, July


Hill, Richard C. 1974.  “Separate and Unequal: Governmental Inequality in the Metropolis” American Political Science Review. 68 (4):1557-1568

Prud'homme, Remy. 1995. “The Dangers of Decentralization” World Bank Research Observer 10 (2): 201-20


Regional Plan Association, RPA Bulletin 129. 1980. Regional Accounts: Structure and performance of the New York region’s economy in the seventies. RPA Bulletin 129. Bloomington, IN: Indiana University Press

Friday, April 1, 2016

TRUMP AND SANDERS ARE BREAKING THE AMERICAN CONSENSUS

 We are at one of those rare historic moments where widening political fault lines have begun to shake the nation. Many of us are apt to blame Donald Trump and this would be a simple truth, but there is more than one truth to be told. The fact is we are stressed at both ends of the political spectrum with Trump playing to a marginal right and Sanders courting a fringe left. Trump and Sanders may appear to be at opposite poles, one at the radical right and another at the radical left, but the poles are not far apart.

 More than anything, the similarities go to both men’s language and to their instinct to polarize. Trump and Sanders not only speak to the feelings of the dispossessed, but speak like them in plain, gruff vernacular. For Trump the culprits are illegal aliens who, one by one, eviscerate American values. Sanders locates the enemy in selfish billionaires whose greed paralyzes America’s once vaunted social mobility.

 Both men tap into race and identity as a virus for raising electoral tempers. Trump rouses the emotions of a latent white, nativist legacy-- often stereotyped as NASCAR loving, tobacco chomping, pick-up truck owners who like to hunt. Sanders plays to another myth–– subjugated black young men who are rounded up for minor crimes and locked in prison for indeterminable lengths of time. The stereotype of mass incarceration is matched by the softer oppression of white youths, who have either been robbed of a college education or left in deep debt by having to pay for it.

 The grievances portrayed by Trump and Sanders are caricatures of reality, and so too are their policy solutions. For Trump the ploy lies in empty sloganeering. The all too familiar platitudes of “making America great again” or “bombing the hell out ISIS” are hollow buzzwords that are immune to rational response. Sanders’ more substantive proposals actually exacerbate our problems. His tax on “stock speculation” would bring to a thumping crash a globalized world that is dependent on the free flow of capital. The Vermont Senator’s proposal for universal free college education would more likely create an underclass of idle “college graduates” than address real skill shortages. Both men disregard realities by either turning to personalized politics (Trump) or by resorting to the stale policies of a bygone, self-contained industrial state (Sanders). Like so much “anti-establishment” rhetoric the Trump-Sanders’ appeal is based on rejection of how we have traditionally advanced the political agenda.

 This is where our American consensus breaks down. For decades mainstream Democrats and Republicans have acted, not by mutual rejection, but as viable alternatives to one another. The party holding power innovated policy solutions––some worked, while others did not. Once the other party gained office, it stabilized and legitimized the best of those policies and let the worst slip away. By this alternation of power between political parties, democratic societies learn from experience and inch toward solutions. This was the story of the Roosevelt/Truman liberal initiatives that Eisenhower’s modern conservatives accepted, modified and legitimated. The best examples could be found in the Republican’s efficient administration of social security and banking reforms, done with a much lighter federal hand. The same narrative followed Lyndon Johnson’s “Great Society”, as the Nixon-Ford White House repackaged housing and urban development into more workable block grants for states and localities. By the time Ronald Reagan’s Republicans trimmed the bureaucracy and made America more competitive, it was Bill Clinton’s turn to accept, modify and legitimate reforms. And he did so by pushing ahead with NAFTA, embracing welfare reform and acknowledging that the “era of big government was over”. The secret of good politics lies in enlisting different coalitions of voters that compete with one another, but are guided by a consensus over what is fundamental to our republic.

 Good politics in not about rejection but about better alternatives and, most of all, the assurance that nearly half the nation does not have to feel its politics is existentially threatened by the victory of the other half.

 We are now in the throes of a different kind of politics where speeches about ripping up the system is the norm.  More worrying is that this message echoes through both political parties. Trump promises to reverse our historic role as an immigrant haven by deporting more than 10 million of them, many of whom are valued members of local communities and whose children are citizens. Sanders’ success has now pushed Hillary Clinton to turn her back on decades of bipartisan agreement over free trade; add to this her brazen talk about “toppling” the wealthiest Americans. These are hardly recipes for bridging the American divide.


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* H.V. Savitch is Emeritus Brown and Williamson Distinguished Professor of Urban & Public Affairs at the University of Louisville and a Visiting Fellow at the Metropolitan Institute, Virginia Tech. He lives in Alexandria, Virginia and can be reached at hvsavi01@vt.edu