ABSTRACT
Regional development policy perspectives have changed considerably in the past 25 years. One can distinguish three generations of theories informing policy practices. The first generation of regional policy emerged in the 1950s and 1960s. A fundamental point of departure was the fact that economic growth did not occur simultaneously throughout a territory, but was selec tive and uneven. The cumulative character of regional growth was generally accepted, but debate centered on questions concerning its internal or exter nal origin, its structural permanence, and the processes of its reproduction. There were considerable differences in interpretation as to whether this une venness would increase or decrease over time. Center-periphery theories argued that structural factors would reproduce and intensify inequalities. Others were more optimistic and predicted that regional inequalities would decline over time. Regional policies were mostly framed in the optimistic variant and were derived from neo-classical theories of optimal resource allocation. Policies aimed at reducing impediments to mobility and remov ing monopolistic elements that would keep prices from competitive level (Maillat, 1998). The national government was the central actor in first-gen eration policies. Through its regulatory powers and through financial incentives it could influence the location of firms. The provision of infra structure was considered an important instrument to stimulate local demand and at the same time overcome regional disadvantage. Regional ine qualities were a central issue in theories and policies of regional development. Can regional policies alter such structural patterns and reduce regional inequalities?
