Comparison of the Three State Proposals

Three recent state economic development proposals are reviewed and compared with one another. A similar policy effort currently underway in Massachusetts is also reviewed in terms of its process and likely outcome. The reports, from Ohio, Washington, and Rhode Island, are reviewed along three dimensions: institutional setting and process, substance and framework of the economic analysis, and program recommendations. The institutional analysis articulates the impetus for each report and the relationships of the major actors. The review of the economic analysis investigates the framework and methodology used in each report to understand the dynamics of the state economy. The review of the program recommendations describes each set of recommendations and evaluates whether or not the recommendations differ from traditional economic strategies. The reports are compared along these same three dimensions. The program comparison draws out the parts of each program which could be characterized as elements of either the "new" economic development theory and practice, based on enterprise development and targeted state intervention, or the "old" economic development theory and practice, based on broad financial incentives and reduction of factor costs. The product and process of the Massachusetts Commission on the Future of Mature Industries is reviewed. The central proposal of the Commission for a voluntary plant-closing accord is described. It is argued that lack of political commitment prevented the Commission from developing a more comprehensive set of recommendations. Thesis Supervisor: Bennett Harrison Title: Professor of Political Economy and Planning