The importance of regional economic change and long- term growth

Regional economic change and long- term regional growth are important processes, because they directly affect the livelihoods of people. How regions cope with economic change, and what the longer- term growth patterns of regions look like, affect people's income, their living conditions and probably their decisions to stay in a region or to move out of it. To talk about regional economies is to talk about people's welfare. This book explores an evolutionary perspective on the processes of regional economic change and long- term regional growth.

Economic change is a story about how the lives of our recent ancestors gradually improved. Most of us, except a fortunate few, know that only 150 or 200 years ago, our ancestors were poor, living under very sparse material conditions, probably working in or close to the agricultural sector, which demanded hard labour, and with potentially fatal diseases lurking around every corner. At times, our recent ancestors might also have had to emigrate to make a better life for themselves in another country, if conditions and regulations even allowed moving outside their region. In many parts of the world, this is still true.

By an amazing process of economic change and growth, especially following the second industrial revolution in the 1800s, working conditions and living standards have improved greatly, at least in the “industrialized” economies. This process of change and growth has not been purely economic though. It has been intertwined with extraordinary developments in technologies, as well as changes in institutions and social relationships, creating new opportunities for our recent ancestors and, in that way, for many of our generation also.

Better and more efficient markets for goods and services, and for labour too, have been important drivers of this change. However, markets do not work unless they are partially regulated and monitored. Governments have important roles to play here. Regional and national governments need to make sure that some valuable resources that markets are not that good at catering for, such as well- functioning educational systems, exist.