Regional disparities

“Gaponomics”
International Economic Relations:
LDCs and Economies in Transition
Source : “The Economist”

Dumitru Trifan, UW, March, 2011.

 Regional disparities
“Gaponomics”
Agenda
1.Definition
2.Case studies
3.Causes
4.Possible Applied Solutions
5.Conclusions
6.Personal opinion
 Regional disparities
“Gaponomics”
1.Definition :

- unequal regional income distribution in the countries.

- regional economic and social disparities.

The Economist shows that regional income disparities have widened in several
rich countries during the recession.
Regional income inequality has risen in many countries. What should be
done about it?
 Regional disparities
“Gaponomics”
2.Case studies :
- The gap between Britain’s poorest regions (mainly in the north and Wales) and its
richest (in the south-east). GDP per head in the poorest quarter of Britain’s regions
is now lower than in the richest part of China.

- The gap in economic vibrancy between Italy’s richer north and its poorer south is
still huge: only 40% of people in Calabria have a job, compared with 65-70% in
Lombardy and Bolzano.
 Regional disparities
“Gaponomics”
3.Causes :
- Investment;
- Productivity;
- Urbanisation;
- Taxes;
- „Bad” Regulation;
- Nr. Of People;
- Professional education.
 Regional disparities
“Gaponomics”
4.Possible Applied Solutions :
- Economic facilities:
The European Union’s “structural funds” and “enterprise zones”(Italy and Britain). Money
Contributions. “Regional tax incentives often shift jobs away from places that don’t get the
subsidy, rather than create new ones.”
- Mobility facilities:
„Given inherent gaps in regional productivity prospects, there is a case for boosting mobility from
declining regions to prospering ones.”
- Improuvement of Education :
In Sunderland only 21% of adults have any form of higher education, compared with 39% of
Londoners. Though there are other ways that the British government can help boost productivity
- from strengthening infrastructure to cutting red tape—the single biggest reward will come from
Improving northerners’ educational performance.”
 Regional disparities
“Gaponomics”
5.Conclusions :

In the reality, we face the situations when the real income is different in
various places. The authorities try to improve the situation by projects,
facilities, but the main contribution in development comes not from the
authorities but from us, from the people who live in these areas, so in order to
improve our situation first of all, we have to act.
 Regional disparities
“Gaponomics”
6.Personal Opinion :

It is important to have a good distribution of income that will have as

a result the development and will slow the migration of the people, not
so much effort and resources will spent, but the real problem is not that
we don't do enough in order to improve the situation, but that we
always search the easiest way ; to move to another place, or to invest
in
something that will have more garranty for our life in a short time.
Thanks for Attention !

Dumitru Trifan, Warsaw, 2011.