Roger Normann Democracy in Development – A Critical View on Regional Governance Thesis for the degree of philosophiae doctor Trondheim, April 2007 Norwegian University of Science and Technology Faculty for Social Sciences and Technology Management Department of Industrial Economy and Technology Mangement NTNU Norwegian University of Science and Technology Thesis for the degree of philosophiae doctor Faculty for Social Sciences and Technology Management Department of Industrial Economy and Technology Mangement ©Roger Normann ISBN 978-82-471-1934-1-6 (printed ver.) ISBN 978-82-471-1948-8 (electronic ver.) ISSN 1503-8181 Theses at NTNU, 2007:88 Printed by Tapir Uttrykk DEMOCRACY IN DEVELOPMENT Democracy in Development – A Critical View on Regional Governance Thesis for the degree of philosophiae doctor Trondheim, April 2007 Norwegian University of Science and Technology Faculty of Social Sciences and Technology Management Department of Industrial Economics and Technology Management NTNU Norwegian University of Science and Technology Thesis for the degree of philosophiae doctor Faculty of Social Sciences and Technology Management Department of Industrial Economics and Technology Management © Roger Normann ISBN 978-82-471-1934-1 (printed ver.) ISBN 978-82-471-1948-8 (electronic ver.) ISSN 1503-8181 Doctoral Theses at NTNU, 2007:88 Printed by Tapir Uttrykk Acknowledgements If I have managed to inspire or provoke just some of the readers of this thesis into giving regional development a second thought and maybe in a slightly different way than before – then I would find satisfaction in knowing that it has been worth the effort… This thesis work has been co-financed through several sources, and I would like to start by giving thanks to the Norwegian Research Council, the national Value Creation 2010 programme, and the two driving forces Pål Lynne Hansen and Bjørn Gustavsen who through the Value Creation 2010 project have financed a significant part of this thesis work. I would also like to give thanks to the Competence Development Found of Southern Norway (CDFSN) that has been the second most significant financial contributor to the realisation of this thesis work. CDFSN is also one of the institutions that receives critique in this thesis. Those finding this odd should bear in mind that it is only through constructive criticism individuals, institutions, and regions can learn and continue to develop, thus criticisms forwarded in this thesis are not put forth in ill will, but as part of a basis for continued growth, learning, and democratic development. I will also give thanks to the two institutions that have paid my salaries while I have been busy writing. My main employer Agder Research and the director Torunn Lauvdal who was willing to use resources on financing this work, and Agder University College that through the Centre for Innovation and Working Life in Grimstad has contributed significantly both financially and professionally to the realisation of this thesis. I would also like to thank the Department of Industrial Economics and Technology Management at the Norwegian University of Science and Technology in Trondheim that has hosted me as Ph.D. student through the Enterprise Development and Work Life Research (EDWOR) Ph.D. programme. I would also like to express gratitude for the support from the members of the Value Creation Alliance that is so central to this thesis work. During the years many - v - Democracy in Development – A Critical View on Regional Governance people have participated in the Value Creation Alliance: Agnes Norgaard, Alf Holmelid, Ann-Kristin Olsen, Arild Vangstad, Arne Hjulstad, Arne Lemme, Arne Solum, Arve Semb, Elisabeth Blørstad, Elisabeth Haaversen, Erling L. Hellum, Ernst Håkon Jahr, Gunnar Haddeland, Gunnar Hatland, Hans Chr. Garmann Johnsen, Harald Furre, Harald Knudsen, Helge Møll, Hilde Høynes, Hjalmar Sunde, Holger Gramstad, Jan Inge Tungesvik, Jens Risvand, Johan Pensgård, Kirsten Borge, Kjell Abildsnes, Leif Løhaugen, Lisbet Skranes, Mari Nyland, Per Kristian Finstad, Siri Mathiesen, Thor Einar Hanisch, Tine Sundtoft, Torgeir Grosaas, Torunn Lauvdal, and Øivind Svensen. Some of the most “steadfast” members of the Value Creation Alliance have also been interviewed as part of this thesis work. I would also like to express gratitude to all of the other “regional stakeholders” who were willing to take time off from a busy schedule to talk to me. I am also grateful for the collaboration I have had with my colleagues who were responsible for running the Value Creation 2010 project from Agder Research side: Elisabet Hauge, Geir Jørgensen, Gro Kvåle, Hans Chr. Garmann Johnsen, Hans Kjetil Lysgård, Harald Furre, Harald Knudsen, Håkon Øgaard, James Karlsen, Jan Inge Jenssen, Jens Kristian Fosse, Jon P. Knudsen, Jonny Holbek, Kai Sødal, Kenneth Andresen, Kristian Råmunddal, Maria T. Jensen, Miriam Joakimsen, Olav Berthelsen, Per A. Havnes, Rune Stiberg Jamt, Seunn Smith-Tønnessen, Torunn Lauvdal, and Torunn Olsen. That I also have benefited from having supportive co-workers and friends at Agder Research goes almost without saying, so a big thanks to all of you. I would also like to express gratitude towards the EDWOR staff: Associate professor Ann W. Martin, Professor Davydd J. Greenwood, Professor Hans Chr. Garmann Johnsen, Associate Professor Johan E. Ravn, Associate professor Lene Foss, Professor Morten Levin, Professor Oguz Baburoglu, Professor Richard Ennals, Professor Thoralf Qvale, and Professor Tor Claussen. I believe that you have achieved at least one of your aims with the EDWOR programme, which was to learn, and I have learned a lot from you. I am also very grateful to my fellow hard working EDWOR students, thanks for making EDWOR informative, interesting, and fun: Anli Ataov, Geir Arnhoff, Liv Berge, Steen Elsborg, Tunc T. Evcimen, Trond Haga, Kolbein Halkjelsvik, Knut-Erik - vi - Acknowledgements Halvorsen, Anne Inga Hilsen, Frank Holen, Arild Johnsen, Kari Jøsendal, Defne Kahramankaptan, Lars Klemsdal, Sally Klingel, Svein-Tore Kristiansen, Trond Åge Langvik, Birgit Leirvik, Jon Ivar Løkkemyhr, Fredrik Winther and last but not least my co-workers at Agder Research Jens Kristian Fosse and James Karlsen. To all of you I can say that the discussions have been “fruitful” and the beers were enjoyed in good company! My two advisors Morten Levin and Hans Chr. Garmann Johnsen deserve more gratitude than I can put into writing. Their support has been invaluable in order for me to realize this work. They have provided just the right balance of critique and support and made it possible for me to move forward – big thanks to both of you. My family, my wife Gro-Renée, and my two children Anita and Lars own and deserve more love, gratitude, and respect than I even can begin to give. This would not have been possible without your support, tolerance, and endurance, and Gro, I promise – this is the last time we make two Ph.D.s and two children simultaneously… Roger Henning Normann Kristiansand / Myrlandshaugen, December 2006 - vii - Contents Acknowledgements v Contents ix Chapter 1 – Introduction 1 1.1 – Problem Statement 1 1.2 – Relevance 1 1.3 – Positions in the Literature 4 1.4 – Method 6 1.5 – Outline 6 Notes 8 Chapter 2 – The Agder Region 9 2.1 – Region 9 2.2 – Governance in Agder 22 2.3 – A New Regional Policy 25 2.4 – Summary 29 Notes 31 Chapter 3 – Regional Discourses 33 3.1 – Introduction 33 3.2 – New Regional Narratives 36 3.3 – Governance 60 3.4 – Regime Theory 71 3.5 – Three Perspectives on Regional Governance 86 3.6 – Democracy 113 3.7 – Research Questions 137 3.8 – Summary 144 Notes 145 Chapter 4 – Method 149 4.1 – Conceptual Framework 149 4.2 – Questions Concerning the Knowable 151 4.3 – The Research Process 161 4.4 – Data and Data Analysis 166 4.5 – Can We Trust Research? 173 4.6 – Summary 181 Notes 182 - ix - Democracy in Development – A Critical View on Regional Governance Chapter 5 – Regional Development Coalition 183 5.1 – Introduction 183 5.2 – From Enterprise Development 2000 to Value Creation 2010 184 5.3 – The Enthusiastic Start-up 189 5.4 – Full Exposure 196 5.5 – A Sneaking Sense of Realism 203 5.6 – A Conflict Unfolds 213 5.7 – Stalemate 221 5.8 – Restart and Reorientation 224 5.9 – Summary 227 Notes 229 Chapter 6 – Regional Governance 231 6.1 – Introduction 231 6.2 – The Set-Up 232 6.3 – The Regional Policy Agenda 239 6.4 – Financing Governance 249 6.5 – Regional Meta Governance 287 6.6 – Lessons Learned 316 6.7 – Summary 322 Notes 324 Chapter 7 – Analysis 329 7.1 – Introduction 329 7.2 – Conceptual Clarifications 329 7.3 – Regional Development Coalition 339 7.4 – Regional Governance 351 7.5 – Democracy 367 7.6 – Summary 377 Notes 380 Chapter 8 – Democracy in Development 381 8.1 – Introduction 381 8.2 – The Main Question 382 8.3 – Recommendations for Future Research 384 8.4 – Conclusion 386 Notes 391 Appendixes 393 List of Chairmen (1976-2006) 393 Interview guide 394 Key figures Agder Energi 2002-2006 397 Governance Networks in the Agder Region 399 Notes 406 - x - Contents Index of Tables and Figures 409 Tables 409 Figures 410 References 411 - xi - Chapter 1 – Introduction 1.1 – Problem Statement In this study, I argue the restraints induced through neoliberal ideology and the potential of democracy in regional development. Neoliberal ideology holds a dominating role in premising the inputs and determining the outcomes of development processes, in the sense that it overpowers facts, unbiased information, and individual intent. Democracy is challenged when neoliberal ideology retains a hegemonic position, but democracy can also be efficient in challenging the hegemonies. The focal point of the study is to inquire into some of the processes associated with the transformation and changes towards a regional system of governance, and ask: Why is democracy disappearing from regional development? This means that this study is oriented towards how some recent regional change processes have affected democratic values on a system/regional level.