New approaches to economic development in peripheral rural regions

Abstract

This paper explores new approaches to economic development in peripheral regions in the context of constraints on public expenditure, declining employment in traditional natural resource based industries, and globalisation of the economy. Three conceptual pairs ‐resource mobility and immobility; tangible and intangible factors; and global‐local interrelations — underpin three ideas about these new approaches, and their impact on differential economic performance observed in otherwise similar localities and regions. A case study is given to illustrate the role played by less mobile cultural, social and environmental assets in these strategies. However, a key feature of the cases is the importance of both local and extra‐local linkages, often at international level, whether this has to do with market or non‐market activity. The conclusions raise questions for research about the root causes of differences in economic performance between rural localities, whether local initiatives will suffice to counter further likely declines in public subventions and natural resource based employment and also about the focus of policy in such regions.