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(ECONOMIC DEVELOPMENT COMMITTEE EDC 13-01\(p5\))Tj
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(Date: 31 October 2001)Tj
0 -1.2 TD
(Venue: Committee Room 1, National Assembly for Wales, Cardiff Bay)Tj
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(Title: ECONOMIC ANALYSIS: IMPROVING THE EVIDENCE BASE)Tj
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(Purpose )Tj
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(1. )Tj
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(The Economic Development Committee\222s \(EDC\) report on the )Tj
/TT2 1 Tf
("Review of Business )Tj
0 -1.20148 TD
(Support and Development Services")Tj
/TT1 1 Tf
( included proposals to improve the knowledge base )Tj
0 -1.20148 TD
(for policy-making and related action. This paper responds to these recom\
mendations )Tj
0 -1.2 TD
(and addresses the related commitment in the Partnership Agreement to est\
ablish a )Tj
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("funded partnership to undertake research and evaluation into the impact\
of the )Tj
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(Assembly's economic policy activities".)Tj
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(Summary)Tj
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(2. )Tj
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(The Assembly Government has decided to: )Tj
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( )Tj
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(Support an Economic Research, Analysis, Monitoring and Evaluation Progra\
mme;)Tj
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/Lbl <>BDC
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(l)Tj
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( )Tj
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(Establish an Economic Research Advisory Panel;)Tj
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/T1_1 1 Tf
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(l)Tj
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( )Tj
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/LBody <>BDC
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(Set up an Economic Research and Evaluation Unit in the National Assembly\
; )Tj
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(l)Tj
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( )Tj
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/LBody <>BDC
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(Explore ways of strengthening external research capacity.)Tj
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/T1_0 1 Tf
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(1. )Tj
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(The Committee is invited to note the action which the Assembly Governmen\
t will be )Tj
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(taking. )Tj
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(Main Findings )Tj
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(2. )Tj
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(Following the Committee\222s Report earlier this year, I commissioned a \
study on what our )Tj
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(needs were and how we might develop a practical research programme to me\
et them. )Tj
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(This work is now complete, and takes account of experience elsewhere in \
the UK and in )Tj
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(Ireland. The main conclusions are:)Tj
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( )Tj
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(Our understanding of the economic issues affecting Wales, the impact of \
policies and )Tj
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(programmes, and the quality of our data, while improving steadily, needs\
to improve )Tj
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(further.)Tj
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( )Tj
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(We need to make even greater efforts to commission practical research to\
inform policy )Tj
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(and secure even better value for money. We do not have robust arrangemen\
ts for co-)Tj
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(ordinating economic research, so there is a risk of overlap.)Tj
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( )Tj
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(Capacity for economic analysis in Wales is limited and is spread thinly.\
)Tj
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( )Tj
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(Evaluation tends to focus on measuring activity rather than assessing im\
pact. )Tj
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( )Tj
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(Cross cutting research is limited.)Tj
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(Government Response )Tj
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(1. )Tj
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(The following measures have been agreed:)Tj
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( )Tj
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(An Economic Research Advisory Panel )Tj
/TT0 1 Tf
(\226 to bring together representatives of the )Tj
0 -1.22711 TD
(main ASPBs, social partners, academics, applied researchers and official\
s in the )Tj
0 -1.2 TD
(relevant Assembly policy groups. The job of this panel will be to advise\
us on a specific )Tj
T*
(programme of practical economic research and evaluation, and ensure that\
results of )Tj
T*
(the programme are used well to help develop policy: it will have a key r\
ole in helping the )Tj
T*
(Assembly Government keep its economic development strategy relevant and \
fresh.)Tj
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/Lbl <>BDC
BT
/T1_0 1 Tf
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(l)Tj
/T1_1 1 Tf
( )Tj
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/LBody <>BDC
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(An Economic Research, Analysis, Monitoring and Evaluation Programme )Tj
/TT0 1 Tf
(\226)Tj
/TT1 1 Tf
( )Tj
/TT0 1 Tf
(to)Tj
/TT1 1 Tf
( )Tj
/TT0 1 Tf
0 -1.22711 TD
(cover the breadth of the economic agenda \(including economic developmen\
t and )Tj
0 -1.2 TD
(aspects of education, lifelong learning, rural development, community re\
generation, )Tj
T*
(environment, planning and transport policy\). This should focus on prior\
ity policy areas, )Tj
T*
(including those which cut across policy fields. Examples of the kind of \
studies that could )Tj
T*
(be included are at Annex 1. A programme of work will be )Tj
/TT2 1 Tf
(developed)Tj
/TT0 1 Tf
( by the panel in )Tj
0 -1.20148 TD
(consultation with the relevant interests. It will be )Tj
/TT2 1 Tf
(approved)Tj
/TT0 1 Tf
( by Cabinet. Most of this work )Tj
0 -1.20148 TD
(will be commissioned from external centres of excellence, and its output\
s would be )Tj
0 -1.2 TD
(publicly available.)Tj
ET
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(l)Tj
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( )Tj
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/TT1 1 Tf
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(An)Tj
/TT0 1 Tf
( )Tj
/TT1 1 Tf
(Economic Research and Evaluation Unit)Tj
/TT0 1 Tf
( will )Tj
/TT2 1 Tf
(manage)Tj
/TT0 1 Tf
( the programme within the )Tj
0 -1.22711 TD
(Assembly. The Unit will work closely with policy groups and others to en\
sure that its )Tj
0 -1.2 TD
(work directly impacts on and improves the effectiveness and allocation o\
f spend. The )Tj
T*
(published work of the Unit will be peer reviewed to promote a high stand\
ard of analysis.)Tj
ET
EMC
/Lbl <>BDC
BT
/T1_0 1 Tf
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(l)Tj
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( )Tj
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(Strengthening external capacity)Tj
/TT0 1 Tf
( - to bring the latest thinking to bear on solving the )Tj
0 -1.22711 TD
(problems of the Welsh economy, we will encourage our Higher Education In\
stitutions in )Tj
0 -1.2 TD
(Wales to give more attention to practical economic research and to promo\
te greater )Tj
T*
(collaboration within Wales and between Welsh institutions and centres of\
excellence )Tj
T*
(outside Wales. The Economic Research Advisory Panel will have a role in \
)Tj
/TT2 1 Tf
(advising)Tj
/TT0 1 Tf
( on )Tj
0 -1.20148 TD
(capacity-building measures for Wales-based institutions. )Tj
ET
EMC
/Lbl <>BDC
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/T1_1 1 Tf
14 0 0 14 32.5 189.23848 Tm
(1. )Tj
ET
EMC
/LBody <>BDC
BT
/TT0 1 Tf
14 0 0 14 50 189.23848 Tm
(ASPBs and Assembly administration policy groups will retain their existi\
ng )Tj
0 -1.2 TD
(responsibilities for carrying out research and evaluation linked to poli\
cy and product )Tj
T*
(development, the delivery of services and the evaluation of individual p\
rogrammes. )Tj
T*
(However, broader research and evaluation activity should be integrated w\
ith the )Tj
T*
(programme of economic research. This will ensure that capacity is maximi\
sed, potential )Tj
T*
(duplication is removed and that collaboration between all partners is ac\
hieved.)Tj
ET
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/P <>BDC
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(Conclusion)Tj
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(2. )Tj
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(I believe that these measures meet the needs set out in the Committee\222\
s )Tj
0 -1.2 TD
(recommendations. Our aim is to make the Welsh economy work faster and fi\
tter. Taken )Tj
T*
(together, these measures will add significantly to our understanding of \
economic issues, )Tj
T*
(interventions and the impact of policies. The Economic Research Panel wi\
ll strengthen )Tj
T*
(collaboration between the Assembly Government, social partners, HE and t\
he key )Tj
T*
(economic agencies and bring greater co-ordination to our research activi\
ties. )Tj
ET
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/T1_0 1 Tf
14 0 0 14 32.5 653.21848 Tm
(3. )Tj
ET
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/LBody <>BDC
BT
/TT0 1 Tf
14 0 0 14 50 653.21848 Tm
(I am not convinced ofconvinced of the need to go further and create an E\
conomic Policy )Tj
T*
(Board. It is premature to move in this direction when the new ELWa and t\
he newly )Tj
T*
(merged and expanded WDA need more time to bed down. I am also wary about\
)Tj
T*
(creating elaborate overarching structures which might divert resources f\
rom the )Tj
T*
(acquisition of economic intelligence which should inform our policy-maki\
ng into )Tj
T*
(unnecessary institutional churn and upheaval.)Tj
ET
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/TT1 1 Tf
14 0 0 14 10 533.79797 Tm
(Rhodri Morgan)Tj
T*
(First Minister and acting Economic Development Minister)Tj
ET
EMC
/P <>BDC
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/TT0 1 Tf
14 0 0 14 598.108 480.81848 Tm
( )Tj
ET
EMC
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/TT1 1 Tf
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(Annex 1)Tj
ET
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(ECONOMIC RESEARCH, MONITORING AND EVALUATION PROGRAMME)Tj
ET
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/P <>BDC
BT
/TT0 1 Tf
14 0 0 14 10 373.41849 Tm
(The overall objectives of the programme are to strengthen the informatio\
n base on economic )Tj
T*
(issues affecting Wales, to improve the economic analysis capacity and to\
ensure that research )Tj
T*
(is used actively and effectively within the Assembly, ASPBs and other pa\
rtners in Wales for )Tj
T*
(policy development. This paper gives examples of research needs and how \
they might be )Tj
T*
(tackled.)Tj
ET
EMC
/P <>BDC
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/TT1 1 Tf
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(Impact of government interventions in economic development)Tj
ET
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/P <>BDC
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/TT0 1 Tf
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(The Assembly budget for economic development programmes is over \243400 \
million. Although )Tj
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(information is collected on individual programmes, their combined impact\
on the economy is )Tj
T*
(not fully understood \226 for example, the net additional effect of thes\
e programmes on business )Tj
T*
(activity and employment.)Tj
ET
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/P <>BDC
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/TT1 1 Tf
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(Impact of transport infrastructure improvement on economic development)Tj
ET
EMC
/P <>BDC
BT
/TT0 1 Tf
14 0 0 14 10 112.61848 Tm
(Research suggests that improved transport links provide economic benefit\
overall, but they )Tj
T*
(can increase as well as decrease regional inequalities. Whilst they lowe\
r costs for businesses )Tj
T*
(in such areas, they can also lead to the centralisation of economic acti\
vity. There is no simple )Tj
T*
(rule which can be applied to predict the regional outcomes of transport \
projects, and regional )Tj
T*
(characteristics need to be assessed. A case study examination of the spe\
cific factors which )Tj
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(influence the nature of regional markets would better inform the apprais\
al of future schemes or )Tj
0 -1.2 TD
(strategies.)Tj
ET
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/P <>BDC
BT
/TT1 1 Tf
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(Employment policy measures)Tj
ET
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/P <>BDC
BT
/TT0 1 Tf
14 0 0 14 10 665.61848 Tm
(The Department for Work and Pensions is the government department with r\
esponsibility for )Tj
T*
(employment policy and welfare reform. The Assembly has supported a numbe\
r of related )Tj
T*
(interventions in the \221intermediate labour market\222 to help people b\
ack to work. Although it is )Tj
T*
(recognised that the characteristics of the labour market in Wales are di\
fferent from those of )Tj
T*
(other parts of the UK, we need to better understand the cyclical and str\
uctural dimensions of )Tj
T*
(workforce participation. We also need to examine more closely the relati\
ve contribution of )Tj
T*
(Assembly policy in these areas, in order to develop specific measures th\
at will add value in )Tj
T*
(Wales. )Tj
ET
EMC
/P <>BDC
BT
/TT1 1 Tf
14 0 0 14 10 512.59798 Tm
(Best practice review of measures to promote Entrepreneurship.)Tj
ET
EMC
/P <>BDC
BT
/TT0 1 Tf
14 0 0 14 10 476.41849 Tm
(An examination of the effectiveness of direct and indirect interventions\
in promoting )Tj
T*
(entrepreneurship, reviewing different approaches to changing attitudes, \
encouraging risk )Tj
T*
(taking, providing incentives etc. For example, we might undertake a coho\
rt study on how to )Tj
T*
(encourage redundant workers in high-tech industries to set up in busines\
s.)Tj
ET
EMC
/P <>BDC
BT
/TT1 1 Tf
14 0 0 14 10 390.59798 Tm
(Innovation)Tj
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/P <>BDC
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/TT0 1 Tf
14 0 0 14 10 354.41849 Tm
(Increasing innovation is a priority objective within the National Econom\
ic Development )Tj
T*
(Strategy. A study in this area would collect the best international prac\
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EMC
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EMC
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EMC
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EMC
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14 0 0 14 10 718.21848 Tm
(Better information is needed on the economic opportunities presented by \
enlargement.)Tj
ET
EMC
/P <>BDC
BT
/TT0 1 Tf
14 0 0 14 10 682.79797 Tm
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ET
EMC
/P <>BDC
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(A number of priorities for evaluation have been identified including the\
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