Skip to main content

PARTY POOPER

As Rhodri Morgan walks off into the sunset of retirement, what will be his legacy to Wales?

Given that his area of expertise was economic development, it is ironic that following his last day in the job, the latest GVA figures for Wales were released by the Office for National Statistics.

As has happened every year since he was elected as First Minister, Wales was again at the bottom of the prosperity league table.

Not surprisingly, the statistics show that during the last ten years, the nation's prosperity relative to the rest of the UK has continued to decline, despite the so-called 'devolution dividend' and billions of pounds of additional European funding.

Since 1999, the GVA in Wales has grown by only 47.5 per cent as compared to 57.6 per cent for the UK as a whole. If the Welsh economy had kept pace with the UK average, then an additional £3.1 billion would have been generated during this period.

In terms of prosperity per head, Wales now stands at 74.3 per cent of the UK average, easily the worst performance of any UK region.

Indeed, the annual growth rate for the Welsh economy of 3.0 per cent is the worse recorded in the period 1989-2008 measured by the Statistics Office.

Personally, I have always liked Rhodri Morgan and wish him well in his retirement. However, the truth of the matter is that on a political level, it is clear that his tenure has done little to help the development of the Welsh economy. And since his decision to abolish the WDA, the Welsh economy has grown at a far slower rate than in the previous five years.

Therefore, after a decade of his leadership at the helm of the Welsh Assembly Government, Wales remains at a record low in terms of relative prosperity with the rest of the UK and with the highest unemployment rate since April 1996.

Is this really the legacy he wanted to leave Wales after a decade as First Minister? I very much doubt it.

Comments

One other point to add. I have juste read the WAG 'spokesperson' response in the Western Mail which notes that

“This supports the conclusion of the Welsh Assembly Government’s commission on funding which said that the budget for Welsh public services should be allocated on a needs based formula.

So the official line is that we need more public sector funding to generate wealth in Wales.

God help us.
Jeff Jones said…
The so called spokesperson for WAG should read the working papers of the Holtahm Commission. We haven't lost out in the period up to 2008/09. The issue is that under Barnett we could be squeezed if there is no change to the formula in the future. What I find really interesting as I've said today in my comments in the Western Mail is the way in which Mandelson has acted swiftly to find £60 million for Teesside in the wake of the closure announcement by Corus. I wonder what the reaction of WAG would have been if Corus had decided to close one of its Welsh plants? Only this month my local authority announced that it had made 2 bids for convergence funding to WEFO. One for harbour improvements in Porthcawl and the other for millions for yet more public realm 'improvements' in Bridgend town centre. Bridgend wouldn't even be in the objective one area if it wasn't for the valleys in the north. How this will help to increase GVA also baffles me. It really is enough to make you weep.
Jeff - the same came to mind about the situation in Anglesey with the 500 jobs lost in Anglesey Aluminium and the local AM has done nothing to get additional funds up to the area.

The tragedy about all this is that there is no coherent economic strategy regarding the spend of convergence money.

On those occasions when it is not being spent by WAG to shore up their failing business support programmes, then it is a mad scramble to see who can get the rest of the money without a single thought about how it all fits together.

You would have thought that after the mess that was Objective 1, someone would have learnt the lesson.

Sadly, no-one has.

Popular posts from this blog

THE CRACHACH

Unlike me, do you consider yourself part of 'the establishment' here in Wales?  As thousands gather for the Eisteddfod in Mold this morning, they will, according to some social commentators, not be participating in the greatest cultural festivals of Europe. Instead, they will merely be bit-part players in one of the annual gatherings of the great and good of Wales.  Unkindly, this set of the movers and shakers in Welsh society is known as 'the crachach' , and constitute a social class all of their own, dominating the educational, cultural and media sectors of Wales and allegedly looking down upon any outsider with new ideas, reinforcing mediocrity and failing to see beyond the limits of their own narrow experience.  They are said to live in a comfort zone that awaits the expected invitation to the next glass of chilled chardonnay and canapés, forgetting that due to their lack of leadership and drive, Wales remains firmly rooted to the bottom of the UK prosperity league ...

THE IMPORTANCE OF THE CREATIVE CLASSES

One of my favourite academic books of the last two decades must be the “Rise of the Creative Classes” by Professor Richard Florida.  This was one of the first detailed studies of the growing group of individuals who use their creativity and mental labour to earn a living and not only included those in arts and entertainment, but also people working in science and technology as well as knowledge-based professions such as healthcare, law, business, and finance.  Fast forward to 2022 and Professor Florida has written an updated report on the creative classes although he and his team now identify a different type of individual who is taking full advantage of the growth in digital platforms, social media, and online marketplaces.  Such ‘creators’ are defined as those who use digital technology to make and publish unique creative content, whether in the form of video, film, art, music, design, text, games, or any other media that audiences can access and respond to.  They ...

GLOBAL ENTREPRENEURSHIP MONITOR WALES 2022

How entrepreneurial is Wales? That is the question that the latest Global Entrepreneurship Monitor (GEM) attempts to answer in its latest report which investigates those involved in early-stage entrepreneurship i.e. starting and managing a new business.  This year’s results show that the rate of total early-stage entrepreneurship (TEA) in Wales in 2021 was 10.3% as compared to 11.5% for the UK. This is significantly higher than the previous year (6.5%) and means that around 192,000 adults aged between 18 and 64 are involved in entrepreneurial activity in Wales.  Nearly three quarters are in the very early stages of starting a business and the rest involved in managing a new business aged between 4 and 42 months old.  This is an important finding as not only is the overall rate of entrepreneurial activity in Wales increasing but this is largely accounted for by those starting a business. In this respect, it is critical that the right support mechanisms are in place to ensu...