Yorkshire Forward: all the way to Japan, US, Australia...

The Independent and e-politix.com tell of a report from the Commons trade and industry committee on UK Trade and Investment (or UKTI). The fascinating part of this report, though, is its take on the Regional Development Agencies (of which Yorkshire Forward is one.)

It turns out the RDAs have all been setting up permanent trade promotion offices abroad - 42 in total, spread across the US, Japan and Australia. The committee sees this as a 'bizarre' duplication of effort, confusing potential investors. They think the job of trade promotion for the UK should be done by UKTI alone. A member of the committee said:

There is confusion about who is actually responsible for trade promotion, and an extraordinary situation when it comes to offices abroad, which are competing with each other, confusing investors and wasting taxpayers' money.

Its a lovely little window onto the peculiar nature of the UK's 'market state'. A previous post on epolitix told how the Institute of Directors thought the RDAs were doing too little to make themselves relevant to businesses in their areas. Now the poor sods are getting berated for going all the way overseas to help bring business in.

The obvious response to the committee's complaints is, well, what did you expect? Every region and city has been encouraged to promote this notion that they can be 'world class'. The point, surely, is competition, isn't it? Why should any RDA expect that a national body is going to promote their interests - especially when that body is London-based? And how is it a 'bizarre' duplication of effort? Could the same be said for all these pesky supermarkets we have, confusing the poor consumer? If not, why not? Because its tax-payer's money? Well, that doesn't make any difference, does it? Market efficiency is market efficiency, ain't it? Choice! Choicity-woicity-woicity CHOICE!

Dan my old fruit, I'm

Dan my old fruit, I'm increasingly worried that all this free market bullshit is going to your head! Surely the point here is that competition between RDAs to bring in foreign investment has the effect of giving a better deal to the foreign investors, but only the most putative positive impact for the people in the regions themselves. The report authors are far less interested in perfect competition (and this IS a bizarre area to bring competition into) than enriching Britain. Next you'll be suggesting that we should set up Yorkshire as an export processing zone. Its clear the problems that would be associated with monopoly sup0ply of goods, the problems of monopoly supply of material encouraging investors to come to Britain is far vaguer.

I think you should be an anti-capitalist again, this is clearly all overwhelming you.

Choicity?

An alternative model would be for the UKTI to do the work abroad, and once investors are actually interested in coming over here, there's some system of competitive bidding among the RDAs to get the opportunity to show the folks round - a system that would have to, of course, take account of the different skills, traditions, industrial structures etc etc of the different regions. (Of course, that would mean less trips to Aus for Yorkshire's businocrats.) Then you could offer a potential investor a menu of relevant options, such as 'you can go to sheffield, where we have zillions of apartments for young professionals or manchester, where we've just built zillions of posh flats, or Birmingham, where there's lots of accommodation for young couples on a decent salary' Choicity!

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