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The Political Economy
of Devolution in
Britain from the
Postwar Era to Brexit
Nick Vlahos
The Political Economy of Devolution in Britain
from the Postwar Era to Brexit
Nick Vlahos
The Political
Economy
of Devolution
in Britain
from the Postwar Era
to Brexit
Nick Vlahos
Toronto, ON, Canada
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer
Nature Switzerland AG 2020
This work is subject to copyright. All rights are solely and exclusively licensed by the
Publisher, whether the whole or part of the material is concerned, specifically the rights
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now known or hereafter developed.
The use of general descriptive names, registered names, trademarks, service marks, etc.
in this publication does not imply, even in the absence of a specific statement, that such
names are exempt from the relevant protective laws and regulations and therefore free for
general use.
The publisher, the authors and the editors are safe to assume that the advice and in-
formation in this book are believed to be true and accurate at the date of publication.
Neither the publisher nor the authors or the editors give a warranty, express or implied,
with respect to the material contained herein or for any errors or omissions that may have
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This Palgrave Macmillan imprint is published by the registered company Springer Nature
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To Shazia
Preface
vii
viii PREFACE
gratitude to Dennis Pilon for his guidance, support and extensive conver-
sations about how I could combine a political economy of scale epistemol-
ogy with comparative, critical and historical research. This book would not
be what it is as well without Stephen Hellman, especially because of the
amount of time he put into reviewing every chapter. I also owe thanks to
Terry Maley for various suggestions that helped shed light the connection
between democracy and decentralization in local contexts. Lastly, I was
fortunate to have Adam Harmes and Stephen Tufts review the manuscript
and provide insight into nuanced debates within the fields of economic ge-
ography and the politics of scale, as well as public finance and federalism.
This book was researched and written in a multitude of spaces, with
particular appreciation going to the Scott Library at York University and
the Toronto Reference Public Library.
My deepest gratitude goes to my family and friends. I have received an
inordinate amount of support from my parents, Andrew, Lee, Morgan,
Kristian and Ryan. Lastly, and most importantly, this book would not
be possible at all without my wife, Shazia. Not a day goes by without
recognizing that we have shared all of the years that I have spent working
on this book.
At Palgrave Macmillan, I would like to thank Ambra Finotello and
Anne-Kathrin Birchley-Brun for their editorial support, as well as the sub-
stantive contributions provided by an anonymous reviewer.
7 Conclusion 225
Bibliography 233
Index 261
xi
List of Figures
xiii
List of Tables
xv
CHAPTER 1
Introduction
In the 1950 general election in the UK, the Conservative, Labour and
Liberal parties won 99% of the popular vote and 100% of legislative repre-
sentation, a pattern that remained virtually unchanged over the next two
decades. Meanwhile, regional parties like the Scottish National Party or
the Welsh Plaid Cymru registered support that collectively amounted to
far less than 1% of the total votes throughout the same period. Yet by
2000 many of the political aims of these regional political players would
be accomplished, with the establishment of devolved regional parliaments
after 1997 and the regular election of their own members to the national
parliament in Westminster since the 1970s. The success of this regional
politics with its focus on decentralizing the UK’s traditionally centralized
form of political power is surprising as it goes against the grain of most of
the twentieth-century British politics. Just how the country shifted from a
seeming consensus for a nationally focused polity in the 1950s to a more
devolved one at the turn of the century has produced much debate about
the actual factors that have led to what amounts to a profound shift in
the political status quo.
As is often the case, the story is more complicated than first appears.
Reforms to the economic and political institutions in post-World War
II Britain have entailed shifts in how they are organized at different
levels of the state. Traditionally and conventionally, the UK has been
1 See Vernon Bogdanor, Devolution in the United Kingdom (Oxford: Oxford University
Press, 1999).
1 DECENTRALIZATION, DEVOLUTION AND THE POLITICAL … 3
struggle.2 Economic factors and the possible politics behind them have
been given much less attention. More broadly, the common themes asso-
ciated with designing new institutional means of decision-making tend to
fall into one of four categories: pluralistic group activity/demands for a
more inclusive political system; the need to find new functional methods
to govern advanced industrial societies; local as well as regional dissidence
produced by social movements and political actors; and sheer political will
and the strategic calculations made by political parties in power.
Aspects of Britain’s recent devolution are clearly unique to the UK.
A major reason for this is the historic asymmetry of regional institutions
responsible for social, economic and urban development. Not all regions
can be considered equal when it comes to devolved political and fiscal
powers, either now or in the past. There is also a history of peripheral
resistance by Scotland, Wales and Ireland that has influenced the politics
of place and identity in the UK.3 At the same time, the UK’s recent
devolution is in line with an international trend towards decentraliza-
tion—as in the political, administrative and/or fiscal authority granted
to regional and/or local levels—which makes it an interesting case for
comparison. Much work has been done attempting to explain how and
why political reform has been occurring across the world in terms of the
partisan motivations and contested relationships involved in designing and
reforming decentralized political institutions.4 Here, a deep examination
of the reasons reform has occurred in the UK can then be brought into
dialogue with this broader comparative work. Accordingly, this book will
examine devolution as a case study of this Western trend of decentraliza-
tion and its relation to broader questions of institutional and democratic
reform, focusing on Britain from the postwar period to the present, with
attention to the overlooked role of political economy.
of Regionalism: Italy, France, and Spain,” in Regionalism in European Politics, ed. Roger
Morgan (London: PSI, 1987).
5 Neil Brenner et al., “Introduction: State Space in Question,” in State/Space: A Reader,
ed. Neil Brenner et al. (Oxford, UK: Blackwell Publishing, 2003), 3.
6 N. VLAHOS
13 Mark Purcell, “Urban Democracy and the Local Trap,” Urban Studies 43, 11
(October 2006): 1926.
1 DECENTRALIZATION, DEVOLUTION AND THE POLITICAL … 9
allies.14 Where power resides spatially is political and is often the product
of antagonistic political struggle.
Decentralization thus provides the potential to reorganize how polit-
ical power is wielded at different levels of the state. It opens room for
exploring multiple spaces of contestation between central, regional and
municipal levels, including the extent to which democratic institutions
have or have not changed over time. However, why political restruc-
turing in the form of decentralization takes place needs to be more
thoroughly examined. This is relevant because understanding why political
reform and institutional decentralization happens connects to how states
and democracies are changing. As argued below, the major approaches to
understanding why decentralization takes place are limited in their ability
to capture the connections between political actors, civil society relations
and economic environments.
Trends in Advanced Capitalist Societies,” World Politics 51, 1 (1998): 67–98; Walter
Korpi and Joakim Palme, “New Politics and Class Politics in the Context of Austerity
and Globalization: Welfare State Regress in 18 Countries, 1975–95,” American Political
Science Review 97, 3 (2003); Hyeok Kwon and Jonas Pontusson, “Globalization, Labour
Power and Partisan Politics Revisited,” Socio-Economic Review 8 (2010): 251–281; and
Elinor Scarbrough, “West European Welfare States: The Old Politics of Retrenchment,”
European Journal of Political Research 38 (2000): 225–259.
27 Dermot McCann, The Political Economy of the European Union: An Institutionalist
Perspective (Cambridge: Polity Press, 2010), 8–9.
28 Barry Eichengreen, The Populist Temptation: Economic Grievance and Political
Reaction in the Modern Era (New York: Oxford University Press, 2018).
29 Joseph E. Stiglitz, People, Power, and Profits: Progressive Capitalism for an Age of
Discontent (New York: W. W. Norton, 2019).
30 Dennis Pilon, Wrestling with Democracy: Voting Systems as Politics in the 20th Century
West (Toronto: University of Toronto Press, 2013), 230.
31 Colin Leys, Politics in Britain: An Introduction (London: Heinemann Educational
Books Ltd., 1984), 131–132.
14 N. VLAHOS
However, parties should not be reduced to their class base. Class inter-
ests are not ahistorical givens, but are rather historically constructed by
movements, organizations and leaderships that act in particular contexts
and entail possible alliances or oppositions.32 There is nothing immutable
in the relation of class to party, as broad social and economic trends
are able to alter the ties of class to party. Recognizing this nearly fifty
years ago, David Butler and Donald Stokes argued that the emphasis of
classes in relation to political parties has shifted from the maintenance
of established traditional allegiances to the articulation of new grounds
for party alliance.33 This book accounts for the way political parties and
actors adapt to shifting political circumstances over time by focusing on
the redesign of political and democratic institutions.
Ultimately, political parties and actors need to be studied over long
periods of time in order to understand how as organizations aim to
defend specific interests, they formulate programmes that reach beyond
the class whose interests initially inspired it, and adapt to changing
contexts.34 Though decentralization is often viewed as a phenomenon
associated with the protection of power, social relations flowing out of
capitalist development are often taken for granted. The result is that less
of a focus is given to the way that the contradictions of capitalism and
economic governance are reflected in the outcomes of intra- and inter-
state political restructuring. Decentralization should be linked with the
reasons collective actors seek to develop or limit political and economic
institutions at different levels of the state to regulate political-economic
conflict. The next two sections will elucidate the aspects of the political
economy of scale research that this book builds upon and adds to, i.e. the
ways in which the scaled organization of political-economic institutions
under capitalism is socially produced and transformed and how this helps
understand the British political struggle over devolution.
The pitcher may go to the well often, but comes home broken at last.—Old
Proverb.
Every drop of water that has ever been used for domestic
purposes—the waterworks of Cairo and Alexandria are innovations
only of yesterday—has, with the exception of the small quantity
conveyed in goat-skins by men, been brought up out of the river and
canals by women. Their custom has been to carry it on their heads in
large earthen jars, called goollehs. These are so large that they are
capable of being formed into rafts, which you often meet upon the
river, with two men upon each steering and punting them along. This
is the way in which they are taken from the places, where they are
manufactured, to be distributed to the towns and villages along the
banks of the stream. Each weighs when full, as near as I could tell
by lifting one, about forty pounds. Wherever you may be you see the
women trooping down to the river-bank with these jars on their
heads to fetch water. Arrived at the water’s edge, each woman tucks
her short and scanty skirts between her legs, and, walking a step or
two into the stream, fills her goolleh. She then faces round to the
bank, and sets it down on the ground. The next move is to face back
again to the stream, and wash her feet. When ready to depart she
receives the assistance of the one who will go next into the water in
placing the full jar on her head. The last of the troop has no
assistance. With forty pounds weight on their heads they walk up the
steep bank, and, perhaps, a mile or two off to the village, making as
light of it as if it were no more than a chignon. The practice of
carrying these weights on the head gives an erectness to the figure,
and a prominency to the chest, which nothing else could produce.
Though I have at times smoked out a cigar while watching an
incessant stream of these women coming down to, and going up
from, the watering-place, I never heard one speak to another. I
suppose they reserve what they have to say till they can say it
unobserved by the bearded sex. Nor did I ever see one of them cast
a glance upon a stranger. I quite believe what a native told me of
them—that it would be regarded as a portent, if one of the very
poorest class were in the least to commit herself in this way. I once
saw one of my companions—a tall, good-looking young fellow—walk
up to a damsel as good-looking as himself, who had filled her
goolleh, and set it on the edge of the stream till she had washed her
feet. As she turned round for it, he lifted it for her, and placed it on
her head. I narrowly watched her face. She ought to have been
somewhat taken by surprise, for she knew not that he was behind
her; but of this there was no indication. She did not look at him, or
move a feature: there was no apparent consciousness of any one
being present. The instant the jar was on her head, she walked away
just as she would have done, had it been her sister who had lifted it
for her.
One is astonished at the mountains of broken crockery, or pottery,
which mark the sites of the ancient cites. That well nigh all the water
used in Egypt, for so many thousands of years, has had to be carried
in these earthen jars—for there is no wood in Egypt to make bowls
and buckets—and that the cooking utensils of the mass of the
people must be made of the same fragile material—for Egypt, except
in times of unusual prosperity, has no metals cheap enough for this
purpose—will account for no inconsiderable part of the
accumulations. These shards have gone a long way towards forming
the barrows in which lie buried Abydos, Memphis, Esné, Edfou,
Thebes, Dendera, and scores of other places. The importance, in its
day, of any one of these ages-ago-effaced cities may be roughly
estimated by observing the magnitude of the barrow in which it is
buried. The mounds at Alexandria—and even already at modern
Cairo—are of surprising dimensions. Had they brought up the water
from the river in wooden buckets, which would have decayed, or had
they cooked in metal utensils—the materials of which, when they
became unserviceable for cooking, would have been turned to some
other account—these mounds would have been less conspicuous
objects than they are now.
CHAPTER XLVII.
WANT OF WOOD IN EGYPT, AND ITS
CONSEQUENCES.
The trees of his forest shall be few, that a child may write them.—Isaiah.