The British Growth Crisis: The Search for a New Model

337 Pages·2015·0.996 MB·English

by  Jeremy Green, Colin Hay, Peter Taylor-Gooby

The British Growth Crisis
Building a Sustainable Political Recovery: SPERI Research & Policy
Series Editors: Colin Hay and Anthony Payne, Co-Directors of the Sheffield
Political Economy Research Institute (SPERI) at the University of Sheffield, UK.
SPERI is an innovation in higher education research and outreach. It brings
together leading international researchers in the social sciences, policy makers,
journalists and opinion formers to reassess and develop proposals in response to
the political and economic issues posed by the current combination of financial
crisis, shifting economic power and environmental threat. Building a Sustainable
Political Economy: SPERI Research & Policy will serve as a key outlet for SPERI’s
published work. Each title will summarise and disseminate to an audience of
academics, postgraduate students and directly to policy makers and journalists,
key policy-oriented research findings designed to further the development of a
more sustainable future for the national, regional and world economy following
the global financial crisis. It takes a holistic and interdisciplinary view of political
economy in which the local, regional, national and global interact at all times
and in complex ways. The SPERI research agenda, and hence the focus of the
series, seeks to explore the core economic and political questions that require us
to develop a new sustainable model of political economy.
The British Growth Crisis
The Search for a New Model
Edited by
Jeremy Green
Research Fellow, University of Sheffield, UK
Colin Hay
Professor of Political Science, University of Sheffield, UK
and
Peter Taylor-Gooby
Professor of Social Policy, University of Kent at Canterbury, UK
Editorial matter, selection and introduction © Jeremy Green, Colin Hay and
Peter Taylor-Gooby 2015
Individual chapters © Respective authors 2015
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First published 2015 by
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Contents
List of Figures vii
List of Tables ix
Notes on Contributors x
Introduction: The British Growth Crisis 1
Jeremy Green, Colin Hay and Peter Taylor-Gooby
Part I Diagnosing the Crisis
1 Should the UK Continue to Follow Liberal Economic
Policies? 17
Graham Gudgin and Ken Coutts
2 UK Economic Performance Under New Labour 1997–2010:
Facts, Lessons and Pointers 43
Dan Corry
3 Anglo-American Financial Interdependence and the
Rise of Income Inequality 77
Jeremy Green
Part II Evaluating Responses
4 Economic Recovery and Governance for the Long-Term 105
Gerry Stoker
5 Public Policy Futures: A Left Trilemma? 126
Peter Taylor-Gooby
6 The UK Macroeconomic Policy Debate and the British
Growth Crisis: Debt and Deficit Discourse in the Great
Recession 151
Ben Clift
7 The Final Nail in the Coffin? Crisis, Manufacturing Decline,
and Why It Matters 174
Craig Berry
v
vi Contents
Part III Global, Local and Sectoral Dimensions
8 L ocal and Regional Economic Development in Britain 201
D anny MacKinnon, Andrew Cumbers and David Featherstone
9 E mployment Protection Legislation and the Growth Crisis 221
J ason Heyes and Paul Lewis
10 G lobalisation and the UK Economy since the 1990s 242
J onathan Perraton
11 T he Need for an Engaged, Expert and Inclusive British
Capitalism 261
A ndrew Tylecote and Paulina Ramirez
Part IV Alternatives Beyond Growth?
12 A Feminist Critique of the ‘Politics of Community’ 285
D aniela Tepe-Belfrage
13 T owards a New Growth Strategy: Promoting Decent Work
in the United Kingdom 304
F rank Pyke
List of Figures
1.1 R eal GDP per capita in the UK 21
1.2 P roductivity 24
1.3 E mployment rate 24
1.4 U nemployment rate 25
1.5 I nflation rate: annual percentage changes in consumer
price index 26
1.6 P roductivity: UK as a percentage of the EU6 29
1.7 G DP per head 30
1.8 P roductivity comparisons: GDP per hour worked 32
1.9 E mployment rates: persons employed as percentage of
population aged 15–64 33
1.10 A nnual hours worked per employee 34
1.11 U K exports of non-oil goods as a percentage of world
exports 35
1.12 U K relative unit labour costs (2008=100) 35
1.13 U K trade balance 36
2.1 U K growth in GDP per capita faster than every other
G6 country 45
2.2 G DP per adult growth (1997=100) in UK, US, France and
Germany 46
2.3 T rends in real GDP per worker and employment per capita
(adult) relative to 1997 48
2.4 U K still lags behind in total economy productivity levels 49
2.5 S ector shares of total economy GVA 50
2.6 S ector contributions to market economy productivity
growth, UK, 1979–2007 52
2.7 S ector contributions to market economy productivity
growth, 1979–2007 53
2.8 S ources of labour productivity growth, market economy 55
2.9 G ross domestic expenditure on R&D (GERD) 72
3.1 U K top 1 per cent income share, 1949–2009 86
3.2 U K top 1 per cent income share and UK real FDI flows,
1970–2009 90
3.3 U K top 1 per cent income share and UK real gross FDI
flows, five-year moving averages, 1974–2009 91
vii
viii List of Figures
3.4 U K finance/insurance sector yearly bonuses and UK
real gross FDI flows, 2000–2012 92
5.1 O BR central long-term projection: spending, revenue and
balance 128
5.2 U nemployment as percentage of labour force (WEO
harmonised rates), media discourse (Nexis) and benefit
generosity (BSA) 136
5.3 V iews on incomes differences and spending on the
poor and the level of poverty (BSA) 137
7.1 I ndustrial breakdown of UK resident bank lending 181
7.2 S hare of manufacturing in regional output, 2011 187
8.1 LEPs in England, end of 2011 213
9.1 2 007 employment rates in EU member states plotted
against OECD EPL scores 232
9.2 2 007 unemployment rates in EU member states plotted
against OECD EPL scores 232
9.3 Q uarterly changes in long-term youth (15–24 yrs)
unemployment, 2008–2013 234
9.4 E PL and employment rate changes, Q3 2008–Q3 2009 235
11.1 R &D expenditure as a percentage of GDP of selected
economies over the period, 1980–2011 263
11.2 E xpenditure on R&D by businesses in the UK as a
percentage of GDP 264
11.3 O wnership of businesses who perform R&D in UK 266
13.1 G rowth through promoting business first 306
13.2 G rowth through decent work first: the United
Kingdom 315
List of Tables
1.1 A nnual percentage growth in export volumes 22
2.1 G rowth of GDP, GDP per person and GDP per adult,
1997–2010 45
2.2 P ublic expenditure on education as a percentage of
total GDP 64
2.3 P ercentage of 25- to 64-year old population by
educational level 65
5.1 I psos MORI combined pre-election and post-election
poll statistics 133
9.1 O ECD measures of EPL for EU member states,
2008–2013 compared 229
9.2 U nemployment rates in the EU, 2006–2012 231
11.1 V enture capital investments as a percentage of GDP 267
11.2 B eneficial ownership of UK shares by value 268
11.3 D iscretionary learning work organisations as a
percentage of the total workforce, selected European
countries 275
ix