Who are the Global Competitors? Local Incentives and Competitive Conditions in Latin America, the Pacific Rim, and Europe

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Paper presents a preliminary report on a project at the University of Texas which was then developing a comprehensive database on regional location incentives and relative regional competiveness.

The paper presents data gathered recently from a cross-section of local economic development institutions worldwide. It illustrates the range and magnitude of relative costs of production and of some of the incentives offered by both low-wage regions and completive high-wage areas. It illustrates that incentive sin the U.S. are more restricted than those provided by competing regions; 3) that the full range of cost differentials are not directly correlated with relative cost differentials, 3) that the future potential of rural and small-town U.S. locations should not be dismissed for many plant location decisions.

Policy recommendations for the U.S. include massively expanded re-training for those out of the educational system, federally funded development incentives for areas disadvantaged by global restructuring, matched by innovative local efforts to improve workplace conditions, productivity, and profitability.

Aspen Institute Community Strategies Group