This theory or approach has been based on a critique of 50s and 60s regional development theories and policies which produced unsatisfactory and unbalanced results in relation to expectations and to financial resources allocated by national governments. These ‘traditional regional policies’ emphasized the key role of mobility of capital and labour in affecting regional disparities, the promotion of investments by external firm’s through capital incentives, administrative constraints and planning agreements with large private and public corporations. These interventions were combined with the role of welfare state in supporting income transfers and public sector employment aiming to promote greater interregional equity. Evidence showed that these policies were unable to promote self-sustained development of regions.
Endogenous development is based on the assumption that the major factors affecting development are rather immobile such as physical infrastructures, labour skills, local industry structures, technical know-how, local social end organisational structures. Economy should stop being too dependent on external decision, but is consider a result of choice of local entrepreneurs and cooperative relationships among local stakeholders.
Konsolas, N (ed.) 1990 Local development: Regional Science Studies In Southern Europe Regional Development Institute, Athens
E Brugger 1986 ‘Endogenous Development: a concept between utopia and reality’ in Bassand (ed.) Self reliant Development in Europe, Gower, Aldershot
W Stöhr 1986 ‘Changing External Conditions and a Paradigm shift in Regional Development’ in Bassand (ed.) Self reliant Development in Europe, Gower, Aldershot
G. Garofoli and F Latella 1989 Endogenous development in Southern Europe. Avebury
M. Tykkylainen (ed.)1992 Development Issues and Strategies in Southern Europe Avebury