REGIONS OF HOPE AND GLORY?

Peter Nijkamp, The Open University, The Netherlands Paul Romer (awarded the 2018 Nobel Prize for Economics) Yongda Yu, Tsinghua University, China

Karima Kourtit, The Open University, The Netherlands

Ying Xue, Tsinghua University, China

Ye Fan, Tsinghua University, China

1.    Prologue

The first Global Regional Development conference in the history of regional science took place in Shenzhen (China) on December 3-5, 2021. It was a hybrid venue organised by the Talent Institute (Shenzhen), the School of Public Policy and Management of Tsinghua University (Beijing), and The Regional Science Academy. Several regional scientists from all over the world were invited as speakers at this important gathering, with Paul Romer, Nobel laureate, as keynote speaker. Despite corona restrictions, the conference was an overwhelming success, with hundreds of (online or personally present) participants.

The aims of the conference were:

• to organise a global forum of recognised regional development experts (including the World Bank) for an ideation on new development ideas.
• to address emerging challenges on sustainable regional growth, in the wake of economic recessions, global pandemics and (man-made or natural) disasters.
• to examine shared policy strategies for mitigating emerging welfare gaps in and between regions in various continents.
• to explore the potential of modern digital technology in shaping equal competitive conditions and opportunities for all countries and regions.
• to identify new promising options for viable green regional development in the context of climate change and sustainable energy transition.
• to stimulate an intelligent transformation of regions geared towards well-being and liveability for all people, driven by smart leadership.
• to explore novel ways for digitally advanced data-analytics for regional sustainable development.
• to articulate institutional responses and policy resilience strategies in order to achieve ‘welfare4all regions’, also in the context of national policy competences.

The present note provides a selection of ‘take-home’ messages and lessons from this great conference.

2.    Three Key Questions

At the outset of the conference three key questions were formulated as a shared frame of reference for all participants. These are:

• The regions in our world do not exhibit a stable pattern, but are subjected to a state of uncertainty and fluctuation, caused e.g. by global economic recession, natural and man-made catastrophes, or infectious diseases. Do regions have sufficient resilience capacities to cope with these challenges? And can these be strengthened?
• Regions all over the world have a portfolio of indigenous resources, such as: territorial capital, culture, natural resources, entrepreneurial spirit, open atmosphere, access to and use of digital technology, quality of life, etc. Which are the critical success factors from a regional perspective that determine effective competitiveness, social inclusion and sustainable development?
• Governance of regional development in uncertain times calls for new forms of leadership based on intelligent policy responses and supported by actor-based development initiatives. Are traditional government support systems (e.g., financial and incentive systems, regulatory systems) sufficient to pave the road towards stable sustainable and inclusive development in the years to come? Are new modes of cooperation between regions promising for safeguarding a balanced and climate-neutral development of our planet?

Paul Romer took the lead in answering these questions by addressing the size and the role of a focussed and effective government in emerging smart cities. He paid particular attention to the coordination of different elements of collective benefits, against the background of global challenges (economic recovery, pandemics, digital advances). He stressed in particular the importance and urgency of unlocking the full potential of public governance capacity in promoting sustainable development at urban and regional scale. He mentioned Shenzhen as one of the pioneering miracles in shaping a new urban world. The conference demonstrated Shenzhen’s ability and commitment to mobilise high-end talent and knowledge for building a leading global demonstration zone for advanced sustainable growth. Some lessons gathered during this fascinating meeting will be presented below.

3.    The Wealth of Regions

Regional development is the outcome of dedicated, often self-organising territorial forces that are geared towards an improvement of the relative socioeconomic profile of a region¹ . A successful performance of a region in terms of wealth, progress and shared development is largely determined by the effective use of its territorial resources, sometimes also called territorial capital. The constituents of territorial capital are:

• productive capital (material and financial)
• human capital (skills, education, motivation)
• technological capital
• environmental capital (quality of life, ‘green capital’)
• institutional capital (good government, transparent regulatory systems)
• X-factor capital (creative leadership, charismatic management)

The latter type of capital is perhaps the most intangible and most under-investigated resource in any regional development equation, but accounts to a large extent for the ‘unexplained rest factor’ in any regional economic growth analysis. An X-factor is not an unambiguously defined and measurable growth engine, as its economic added value depends on personal characteristics (e.g., open mindedness, innovativeness, adaptive ability) of leading personalities (or bodies) that have to be appreciated and accepted by all people and stakeholders involved. Education and selection of qualified people for leading positions in both private and public domains is one of the greatest challenges in any society nowadays.

Another problematic element from the above list of productivity-enhancing and development- conditioning territorial resources is institutional capital. Institutions refer to the governmental and decision-making constellations in an economy, ranging from free market mechanisms via concerted economies to (semi-)dictatorial systems. Clearly, any smart policy in a society needs ‘rules of the game’, but with almost 200 countries on our planet we have a great variety of different decision-making mechanisms in nations and regions. From a regional (and national) economic development perspective, the main question will always be: which framework of institutional bodies and decision-making agencies favours sustainable and inclusive economic growth and productivity so as to achieve ‘well-being4all’? A ‘Quadruple Helix’ constellation may be a desired institutional model.

The great variety of economic outcomes of countries or regions all over the world suggests that both X-factor capital and institutional capital matter and deserve more prominent attention in growth research and policy practice.

4.    The Unequal Playing Field of Prosperity

The world is not flat (even not in the digital age) and by no means equal. Regions – defined in terms of either physical-geographic conditions or socioeconomic profiles or administrative/planning criteria – show an enormous diversity in economic achievements, even within the same country (witness the Mezzogiorno in Italy or the Appalachian Mountains in the US). A significant body of the regional development literature has been devoted to either the identification of bottleneck factors that hamper an improvement of a region’s competitive position or the exploration of smart or productivity- enhancing strategies and actions that would stimulate a region on a desired trajectory towards more interregional convergence. Clearly, an unequal access to and use of the above mentioned types of territorial capital are – apart from climatological and geographical-locational determinants – responsible for unequal socioeconomic outcomes. The main problem however, is that these types of production factors are not linearly related to regional performance results, while they are not mutually independent. Regional leadership may compensate for weak infrastructure, as is witnessed by many historical examples (e.g. Lille, Pittsburgh).

There is indeed scope for extensive evidence-based research on the success conditions for regions that have a low position on the welfare ladder. In general, it seems likely that regions which invest in a balanced way in all relevant territorial capital factors have the highest chance to grow relatively faster. Notwithstanding this strategic lesson, the deplorable fact is that fast growing regions expand the welfare gap with less privileged regions, so that at the end the problem of ‘left behind’ regions becomes more pressing. A broad package of welfare-enhancing measures seems to be needed then. Failure to do so may lead to hysteresis responses and unpredictable outcomes in periods of elections. It goes without saying that a balanced regional development – based on an efficiency-enhancing competition strategy, a citizen-oriented inclusiveness social economy, and a sustainable climate- neutral orientation – has the greatest chance to be realised, if all territorial resources are explicitly exploited to improve the region’s future.

5.    Ways Forward

The first Global Regional Development conference has generated a wealth of original ideas and new visions on balanced and sustainable regional growth. Despite the complexity of the modern space- economy and despite the vulnerability of regions and cities in the wake of major (inter)national disruptions  (natural  calamities,  pandemics,  recessions,  trade  wars,  political conflicts,  climate disasters), a balanced regional and urban development is not only necessary, but also feasible, if all available means (ranging from a wise use of resources to good will) are implemented. A sine qua non would be sharing of international capabilities and stimulating joint capacity building for achieving an effective, sustainable and inclusive development of regions on our planet.

Acknowledgements

Peter Batey, Guo Renzhong, Rao Ziho, Lin Zhang

¹ ‘Relative means here: in comparison to past performance (time dimension) or to performance of peers (other regions).

Carolina Guevara-Rosero from The Ecuador National Polytechnic School, Ecuador, received the 2022 Peter Nijkamp RSAI Research Encouragement Award for an Mid-Career Scholar from a Developing Country.

Dr. Carolina Guevara-Rosero is the 2022 winner of the Peter Nijkamp RSAI Research Encouragement Award for a Mid-Career Scholar from a Developing Country. She received her Ph.D. from the Université Jean Monnet de Saint-Etienne in 2015, and since then, has been an Assistant Professor of Economics at The Ecuador National Polytechnic School. Her record for being a relatively fresh Ph.D. is striking. Dr. Guevara-Rosero has authored or coauthored fifteen peer-reviewed journal articles, received the 2019 Ecuadorian RSAI section’s Young Researcher Award, and frequently participates in regional science conferences in Europe and the Americas. Carolina’s research focusses on productivity, innovation, and firm location in Ecuador and more broadly in Latin America. Her work is noteworthy for its focus on applied topics with clear policy implications for developing countries in their efforts to achieve higher living standards. Most relevant research on related topics examines advanced economies, meaning Dr. Guevara-Rosero’s scholarship brings a relatively fresh perspective to traditional core topics in regional science. Dr. Carolina Guevara-Rosero’s excellence in regional science scholarship on developing countries makes her a exceptional choice for the 2022 Nijkamp Award.

Congratulations!

The Award recognizes the outstanding potential of an mid-career researcher from a nation in the developing world and in which there is a formal Section of RSAI, and seeks to encourage the development of the early career scholar as a high quality researcher in the field of Regional Science and as a participant in the international Regional Science community.

We are delighted to announce that Call for Abstracts for CERS 2022 Conference is now open! 

The European Regional Science Association – Polish, Slovak and Hungarian Sections, and Adam Mickiewicz University in Poznań (Poland) invite scholars, experts, and administration professionals to participate in the 8th Central European Conference in Regional Science, with the main theme "Resilience of cities and regions in an uncertain time" that will be held online on 21-23rd November 2022.  

The deadline for Abstract Submission is September 4, 2022. Please note that there is a limit of two presentations per participant. Abstracts should be submitted using the abstract submission portal. 

For information on abstract submission, please visit the CERS 2022 Conference website cers.amu.edu.pl. The list of more than 20 themes, special sessions and young scientist session is available at the conference webpage. 

The conference is open to a diverse worldwide audience, including academics, experts, and policy makers. It aims to bring together research, ideas, concepts, and experiences and provide a welcoming forum for discussing research and presenting different points of view on the contemporary challenges of cities and regions. 

The themes which will be addressed focus on the challenges of meeting the development of urban and regional systems in an uncertain time. Topics such as the economic, social, and environmental challenges in urban, rural, and regional development and transition in uncertain times are essential issues that the CERS 2022 Conference will consider. 

If you have any questions, do not hesitate to contact us This email address is being protected from spambots. You need JavaScript enabled to view it. 

On behalf of the Organizing Committee 

“Capital” - a celebrated Romanian magazine for economic and financial affairs -  has included Prof. Daniela Constantin in the 2022 Top 100 Most Successful Women in Romania – Top 10 Most Successful Women in Education and Research Section. The other nine sections include Business, Management, Marketing, Public Administration, Mass-media, Civil Society, Medicine, Sports, and Entertainment. Nominations are exclusively and secretly made by the magazine editors; nominees are then contacted and informed about the outcome of the selection. 2022 is the first year in which an explicit section is dedicated to Education and Research.

Prof. Constantin is Full Professor of Regional Economics at the Academy of Economic Studies of Bucharest. She acts as Associate Editor of Papers in Regional Science, and serves as Councillor-at-large on the RSAI Council. Congratulations, Daniela!

Regional Science Policy & Practice (RSPP)

Call for papers for RSPP Special Issue on “The Impact of European Integration in Western Balkan Countries”

Guest Editor

Jolta Kacani - University of Tirana, Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Within the last twenty years most of the Western Balkan countries are diligently following the European Integration process. For the region this process is widely accepted as the main instrument for accomplishing sustainable growth, regional prosperity and a peaceful wellbeing of citizens. The European Integration agenda has been a long social, economic, political, financial, technological, judicial, and environmental commitment empowering great expectations of citizens in the Western Balkan countries.  The European perspective of the Western Balkan countries has been confirmed on numerous occasions by the European institutions over the past twenty years, but in fact, the EU has experienced a gradual approach of its enlargement policy.

Economic and political integration into the EU is a challenging process for the Western Balkan countries, happening simultaneously with technological change, increased transaction with the EU market and blooming of agile enterprises. These new trends in economic development combined with the new and inclusive political agenda has created new bridges among the countries in the region and joint benefits deriving from the EU membership. This situation has contributed to some states to expand and increase their influence in the region.

The scientific journal Regional Science Policy and Practice (https://rsaiconnect.onlinelibrary.wiley.com/journal/17577802) that belongs to Regional Science Association International (www.regionalscience.org) and it is committed to promote the development of Regional Science across the globe specifically through the promotion of special issues on nurtured by workshops is introducing a Special Issue call on “The Impact of European Integration in Western Balkan Countries”

The special issue on Regional Science Policy and Practice intends to promote r the EU Integration Agenda, exploring how it is shaping current regional policy research across the Western Balkan countries. The special issue intends to challenge current and highlight new research perspectives to regional development brought by European Integration commitment to promote an interdisciplinary exchange of ideas, knowledge, research, information and recommendations between scholars, professionals, policy makers and doctoral students. The organizers warmly invite inputs from researchers, policymakers and practitioners working in all areas related to regional development with particular focus on European Integration perspectives that relate to the following workshop themes and areas.

Special Issue Themes

1. Inclusive growth and regional development

• Regional growth policies and strategies towards EU integration agenda
• Socio-economic inclusion in the region
• The EU’s role in sustainable development of the region
• Growth opportunities for inclusion in the EU market
• EU agenda towards green growth and energy efficiency
• Integrated territorial investments for resilient regions
• Strategies regional initiatives for sustainable tourism and cultural heritage
• Creative industries and regional development
• Transportation networks and accessibility

• Quality of education in Western Balkan countries, reforms, and challenges
• Agriculture and regional development

2. EU Regional Policies and institutions

• Reducing regional disparities and improving regional wellbeing
• Knowledge transfer and
• Good governance in EU institutional reforms
• Regional cooperation in the management of EU funds
• Institutional transformation towards EU integration
• EU policy making and citizen’s participation
• The role of government in developing economic and integration policies
• Governance challenges in EU negotiation process

3. Regional innovation, competitiveness and entrepreneurship

• Smart specialization and regional value chains
• Multinational enterprises and foreign direct investment in the region
• Industrial strategies for creation of regional innovative clusters
• Technological change and diversification
• Social innovation and resilient regions
• Regional digital transformation risks and challenges
• Digital skills and regional sustainability
• Effects of Covid-19 pandemic on regional digitalization
• E-commerce, E-learning, E-business for regional development
• Adaptive and resilient enterprises for faster integration in EU markets
• Structural transformation of operations in innovative enterprises

4. Regional finance, investment and capital markets

• Efficiency and performance of regional financial institutions
• Internal controls and financial reporting for integration in EU markets
• Regional financial instruments for small and medium enterprises
• Effective public finance management for the EU integration agenda
• Sustainable financial analysis and auditing
• Challenges of financial reporting after the pandemic
• Free movement of goods and capital

5. Demographic change, migration, and mobility behavior

• Challenges and opportunities of brain gain
• Internal migration and regional change
• The new geography of regional population clusters
• Structural change and resilience in labor markets
• Urban reorganization new opportunities for peripheral regions
• Networks, interactions and inequalities in cities

Manuscript submission information:

All submissions must be original and may not be under review elsewhere. All manuscripts will be submitted via the Regional Science Policy & Practice online submission system (https://www.editorialmanager.com/rspp/). Authors should indicate in the cover letter that the paper is submitted for consideration for publication in this special issue “The Impact of European Integration in Western Balkan Countries”, otherwise, your submission will be handled as a regular manuscript.

• Submissions open until December 31, 2024.

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Adiwan F. Aritenang: The impact of urban characteristics on the spread of Covid-19 in 2020: The case of Java Island cities, Indonesia

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Emőke Kiss – Dániel Balla: Analysing national climate change-related documents: Spatial and temporal dimensions worldwide

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Tekla Szép – Géza Tóth – Michael Carnegie LaBelle: Farewell to the European Union’s east-west divide: Decoupling energy lifts the well-being of households, 2000–2018

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Dimitrios Angelidis – Athanasios Koulakiotis: Return and volatility spillovers in twelve Eastern European countries, 2006–2015

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