State Economic Development Programs: The Trials and Tribulations of Implementation

Abstract

During the 1980s, state governments initiated an array of economic development policies and programs. Although plans were numerous, obstacles to implementation were equally evident. This article considers such obstacles by focusing on three programs in Massachusetts and Michigan—the Massachusetts Social Compact and the Reemployment Assistance Benefits Program and the Michigan Modernization Service. An implementation framework that includes four elements—problem definition, program capacity, political support, and state ecology—is used to analyze the trials and tribulations that led to the demise of these programs. The Massachusetts and Michigan experiences are also placed in the broader context of distributive, redistributive, and regulatory policies. As these case studies demonstrate, each policy type poses a different set of challenges for public policymakers and administrators.

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