Public assistance and employment growth in the rural periphery: Some issues in policy design and implementation

This paper discusses the role of public policy in promoting economic development in a UK peripheral area, Devon and Cornwall. It is argued that traditional measures achieved some success in the context of national growth. However, more of the same at a time of economic recession is seen as inappropriate since a transfer of resources from one region to another cannot necessarily be justified nor relied upon. Future policy initiatives should seek to provide self-sustained growth in peripheral rural regions through creating conditions in which indigenous manufacturing can prosper. In particular, it is suggested that the public authorities should specifically target resources at those small and independent firms in the local economy with the greatest linkage potential, since this is likely to lead to new-firm formation and employment growth. At the same time, the local constraints to development should be recognised.