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