THE ROLE OF THE STATE IN UNITED STATES REGIONAL DEVELOPMENT

Abstract

The southeastern portion of the United States has a long history as the poorest and most underdeveloped region of that nation. As such, it is analogous to poor regions of other nations, such as the northeast section of Brazil. Since the 1930s, the south has experienced a dramatic rise in income, and is now almost at parity with the rest of the country. While some claim that this transformation is the result of unaided market forces, a look at the record suggests otherwise. Of vital importance to development were the interventions of the New Deal, which raised wages and led to technological advance in the south’s traditional agricultural economy. After the second World War, southern politicians were able to attract industry by keeping unions at bay. These political leaders were further able to garner much federal spending for their districts, especially that related to military activities. These “political” efforts were crucial to the region’s growth. While antipathy to unions and a pro-business atmosphere have contributed to job growth, they have also had an underside in the form of low education and other measures of human development. Those involved in regional development policy-making will want to note the experience of ...