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Other regions have lessons to offer, expert says

The Twin Cities area is seen as a national model for the way it has succeeded in tackling tough problems on a regional basis, according to Kathryn Foster, Director of the Regional Institute at the University of Buffalo.

Nonetheless, this region can learn a lot from how other regions have tackled issues that transcend local boundaries, she said.

Why pursue regionalism?

Regionalism is pursued for one of three basic reasons, Foster said:

1. To capture economies of scale. Delivering a service to achieve economies of scale or to reflect the “natural boundaries” of a service or system. Wastewater treatment is an example in this region.
2. To manage externalities. Human activity creates unintended effects that spill across local borders and defy local solutions. Regional planning is one part of the Council’s portfolio in this arena.
3. To redistribute resources for greater regional equity. Fiscal disparities is the "shining example" in the Twin Cities and is the reason, Foster said, that the Twin Cities is seen as a national model. "It’s really quite impressive," Foster said. "Redistribution is the hardest nut to crack."

Different regions have all pursued regionalism to solve problems, but the problems have varied. On Cape Cod, it was for environmental protection; in Silicon Valley, securing the regional economy; in Denver, regional growth management.

Regionalism is not always the answer, Foster said. While regionalism can promote equity, environmental sustainability and economic coordination, smaller-scale governance promotes political participation and accountability.

Emerging issues for regional government

Foster listed a variety services that can be effectively delivered on a regional basis, from water and utilities, to tourism and police, to education and health care. She also discussed several emerging issues that could be addressed, at least in part, at the regional level:

• Homeland security
• Disaster planning
• Climate change
• Immigration management
• Foreign relations
• Traffic congestion

Regions have been successful in tackling regionalism both incrementally and more rapidly, Foster said. She cited Augusta, Maine, for its rapid consolidation of school districts and fire departments to achieve better economies of scale. But it’s important, she said, for the people who are affected – those who will both benefit and pay for services – to have a say in the decision-making.

In examining the pros and cons of various forms of governance, Foster said that the advantage of an appointed regional body is that members are more able to make tough choices without being worried about being thrown out by the voters. On the other hand, “you are beholden to somebody, in this case, it’s your appointer.” She mentioned some “middle-ground” options, among them:

• Making sure that people are appointed to represent different areas of interest or expertise.
• Electing people for just one, longer term to allow them to make tougher political decisions.

How governments get things done

Governments have a range of methods to get people to behave in ways that achieve government aims, Foster said, from “government command” at one end (the “Singapore model”) to market command (the “Lagos, Nigeria model”) at the other. In between the two extremes are regulations and incentives. Many governments use a mix, and which method people lean toward is clearly linked to politically ideology, Foster said.

“Are there a set of incentives that can help to drive you to the outcomes you want, or are regulations necessary because you don’t think…the right price or motivation is there?” Foster said. “That’s a balancing act, and every region goes through it.”

A key challenge of regionalism is bringing together under “one tent” a variety of people and interests. The increasing demographic diversity of the Twin Cities region makes this challenge very relevant, Foster said. “Obviously, the bigger the tent and the more people under it, the harder it is to find consensus.” Navigating, negotiating, bargaining, building coalitions and finding consensus are required for success.

Pros and Cons of Elected vs. Appointed Regional Government
APPOINTED	ELECTED
Pros: Professional, insulated from politics, can make the politically unpopular decisions Cons: Beholden to appointer, untouchable by voters, lower incentive for cost-consciousness	Pros: Accountable, democratic, visible, representative Cons: Subject to political pressure, administratively constrained, beholden to financial backers
- Kathryn Foster’s viewpoint on governance

“The best story out there is the European Union,” Foster said, noting that in just 50 years the countries of Europe went from killing each other to remarkable cooperation. One of the keys to the Union’s success, she said, is that “they made a decision early on that most of their institutions would continue to vest the power in the local level. The more decentralized the power, the better than Union would hold together.” The Union allows for strong local preferences and some “opting out;” for example, neither Great Britain nor Sweden use the Euro as currency.

“The watchword here is flexibility,” Foster. “Figure out a governance system that can move with the times, and evolve with changing priorities.” 

Foster was one of two keynote speakers at the regional policy conference cosponsored by the Metropolitan Council in June. About 180 people from state, regional and local governments, nonprofit organizations and academia attended the conference. It was co-sponsored by the Metropolitan Council, Citizens League, University of Minnesota’s Humphrey Institute and The McKnight Foundation.