Collaborative governance and territorial rescaling in the UK: a comparative study of two EU Structural Funds programmes

Contemporary capitalist development facilitates the large-scale geographical reorganization of economic activity, involving both spatial clustering and decentralization. In the European Union the resulting regional disparities have provoked concerns about growing inequality on the one hand and poor competitiveness on the other. The concept of 'territorial cohesion' has been adopted to address such issues, with the need for co-operation across local, regional and national boundaries encouraged as a means of constructing more effective economic zones. This then raises the question whether the European Union's own Structural Funds programme has been able to contribute to such collaborative working. Evidence from South Yorkshire/Sheffield in England and the Central Valleys/Cardiff in Wales suggests that any contribution is likely to be modest. Both areas were covered by Objective 1 programmes between 2000 and 2006, but differed markedly in the extent to which collaborative governance structures and processes developed. Key factors were the extent to which moves in this direction were already under way, and the extent to which management and decision-making were devolved from the centre to local and sub-regional actors.