Spend enough time working in economic development and it becomes easy to focus on what makes places different.
At first glance, cities, rural communities and post-industrial towns appear to have little in common. One is managing the opportunities and pressures that come with growth, another is grappling with connectivity, skills and demographic challenges, while the third continues to redefine itself following decades of change.
Yet despite their differing circumstances, there is a growing question as to whether all three are actually confronting the same underlying dilemma. Now, the challenge facing the profession is no longer simply how to generate growth, but how to ensure places of all kinds retain enough of its value to truly improve people's lives.
The urban paradox
Cities illustrate this dilemma, as many of the benefits generated by growth in cosmopolitan areas can leak elsewhere.
New office developments attract commuters from outside the city. While property values rise, the ones benefitting are investors and existing asset holders. High-value sectors cluster in certain locations, leaving communities elsewhere disconnected from opportunity.
As a result, headline growth figures can sometimes mask a more uncomfortable reality. A place can be growing while significant numbers of residents feel little improvement in their day-to-day lives. Economic growth and social progress are often assumed to move together when in reality, the relationship is more complicated.
Investment without legacy
Similar questions are being raised about rural economies. On the surface, the challenges facing these areas appear very different to those within cities. Rather than managing the consequences of rapid growth, many rural communities find themselves competing for investment, connectivity, jobs and infrastructure against larger urban centres.
Yet there is growing debate about whether some of the largest investments taking place in rural Britain are delivering lasting benefits for the communities that host them.
Increasingly, rural areas are becoming home to nationally significant assets, from renewable energy infrastructure and data centres to major projects such as Hinkley Point C. While these developments create substantial economic value, it remains unclear whether local communities are capturing a proportionate share of the benefits. Hinkley Point C, for example, is expected to support around 15,000 jobs at peak construction, but only around 900 during operation.
The ongoing challenge is ensuring those living nearby retain long-term value from such projects, once the initial wave of investment and construction activity has passed.
Building beyond regeneration
Post-industrial towns bring their own set of opportunities and complexities. Many continue to evolve their economic identity, balancing regeneration, investment and renewal while building on existing strengths, whether that's manufacturing heritage, strong local institutions or deeply rooted communities.
Increasingly, there is recognition that lasting prosperity depends on more than physical transformation alone. Successful regeneration is less about individual projects and more about creating the conditions for sustainable growth.
Barnsley's inclusive growth agenda, Bradford's use of culture to support economic renewal and Northumberland's highly localised approach to intervention all reflect a broader shift in thinking. While the approaches differ, each focuses on strengthening the conditions that support long-term success, from skills and employment to local businesses and community partnerships.
What unites them is an understanding that prosperity is built over decades rather than funding cycles. The most successful places are often those that strengthen their underlying economic foundations, rather than relying on individual regeneration projects to drive change.
One challenge, different places
Viewed together, these challenges point towards an important shift in economic development thinking.
Cities are grappling with how growth translates into improved living standards. Rural communities are questioning how they secure a lasting legacy from major investment. Post-industrial towns are focused on building the foundations for long-term prosperity beyond individual regeneration projects.
While the circumstances differ, the principle is the same. Economic development cannot be judged solely by the investment attracted, the projects delivered or the jobs created. Success ultimately depends on whether growth strengthens communities, expands opportunity and improves quality of life for the people who live there.
That principle sits at the heart of the Institute of Economic Development's forthcoming Good Growth report, which argues that economic success should be measured not only by what is generated, but by who benefits from it.
Nigel Wilcock is executive director of the Institute of Economic Development
