Along with most of the Organisation of Economic Cooperation and Development, New Zealand has experienced significant changes in local and regional development policy and practice since the wide-spread adoption of neoliberal reforms in the 1980s. Policy interventions have restricted the powers of local governments, rationalised state support for more marginal areas and ultimately led to a scenario in which local communities are obliged to become more pro-active in the determination of their local economic futures. This paper discusses how neoliberal changes have impacted on New Zealand government policy and spatial development. In the second part of this paper, based on field research, the implications of these changes on smaller, more marginal urban centres less well positioned to adapt to a context of neoliberalism and change are investigated. Evidence is drawn from statistical indicators of change and from a study of 68 small towns to identify common catalysts and barriers to economic development and diversification. The study reveals the key role which entrepreneurs, in particular those who desire to encourage others to come and locate in their town, can play in the economic wellbeing of their towns in an era of reduced state support.
A significant percentage of the smaller urban centres around the world are losing people which raises questions regarding the appropriate responses to this challenge. Responses from the state have generally been muted, and as a result, concepts of new localism and new regionalism are useful for understanding the role played by place-based leadership and partnerships between local businesses, community groups and individuals. Key within this space is the role of endogenous responses anchored on local social capital and resilience. This paper overviews key themes in the literature before examining statistical evidence of small town growth, stabilisation or decline in New Zealand. This leads into an examination of how three small towns in the country are responding to demographic and economic change. The cases illustrate the importance of local-led responses to the debilitating effects of change and the degree to which place based development can be critical in the context of coping with change in small towns. The paper further argues that "right-sizing" to a new economic and demographic reality may be the appropriate focus of local attention. K E Y W O R D S entrepreneurs, localism, New Zealand, regionalism, shrinking town, small town
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