Later this week, the ballot opens to elect the new leader of the Welsh Labour Party and, as a result, the new First Minister of Wales.
This means that one of the two candidates vying for this role - Jeremy Miles and Vaughan Gething - will be responsible for the future direction of the nation at a time when the economy is struggling, and Wales remains one of the poorest parts of the 海角视频.
It is also a time to consider, after 25 years of devolution, whether we have maximised the potential contribution of our business community for the benefit of the nation and whether one of the two candidates can offer a more compelling vision for the future.
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Jermey Miles
Let’s start with Jeremy Miles. One of the key pledges in his manifesto is to refocus the Welsh Government’s capital investment and procurement spend into a “good green growth” economic stimulus package. More specifically, there is a guarantee to growing Wales’s share of the marine and onshore renewables sector.
A range of innovative proposals have been put forward by the current Education Minister which include ensuring that Welsh universities and colleges, the investor community, businesses, entrepreneurs, and the Welsh Government are closely aligned on national economic priorities.
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If adopted properly, this approach which is based on the five-stakeholder model developed by the Massachusetts Institute of Technology - one of the world’s top universities - has the potential to transform the Welsh economy over the next decade.
This commitment to developing a more entrepreneurial Wales is long overdue and will focus on exploring new financial incentives for graduates to set up businesses, an area where the Development Bank of Wales has yet to deliver.
There is support for greater cross-border economic cooperation in northeast Wales through the Mersey-Dee Alliance and an intention to capitalise on the investment in the Heads of the Valleys to create high-quality jobs in some of our poorer communities, something that is long overdue.
Also, there is an appreciation that beyond its population, Wales’s engagement with the global Welsh diaspora is crucial. Whilst the current initiative by Global Welsh to connect with Welsh people overseas is commendable, the pledge to create a “Make it in Wales” campaign to attract talent back to Wales and encourage talented Welsh people to return home and enriching the nation with their skills, experiences, and entrepreneurial spirit, is a positive step.
There are some interesting initiatives proposed in terms of the delivery of economic development.
Firstly, there is the aim to embody an enterprising, start-up spirit within the government itself and while it may take time to change the risk-averse civil service culture, a government that is faster, simpler, and more agile is essential to match the dynamism of the private sector.
Navigating the regulatory environment is often cited as a significant hurdle for businesses, so streamlining this process, making it easier for businesses to comply with regulations and speeding up decision-making should help to facilitate growth and reduces bureaucratic delays.
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Drawing on international evidence and experience, there will also be an analysis of whether economic development should be developed at arm’s length from the government.
While this should not necessarily result in the resurrection of the Welsh Development Agency as it was, it could follow the successful model of organisations such as Business Finland, which was established with the goal of attracting trade, tourism, and foreign investment, and providing funds for innovation.
Such a review could also finally see the functions of Business Wales and the Development Bank of Wales under one umbrella, ensuring that business and financial support go hand in hand.
Finally, there is a proposal to establish a new National Economic Council. This will be tasked with the critical role of advising the First Minister and the Welsh Government as well as ensuring that policy formulation and economic strategies are grounded in expert insights and aligned with current needs and future aspirations. This is long overdue and hopefully, it will utilise the best advice possible to shape the future of the Welsh economy.
Vaughan Gething
Given the potential importance of the green economy to the future of the nation, it is not surprising that Vaughan Gething’s manifesto states that businesses and entrepreneurs in Wales need an ambitious, pro-growth approach that has green and good jobs at its heart.
To achieve this, green business loans will be extended to help more businesses decarbonise and reduce energy bills for good, although it would be even more impactful if the Development Bank of Wales, which is responsible for this funding, was able to offer this type of financial support interest free.
There will also be more new clean growth hubs with the aim of supporting clusters of environmentally friendly businesses powering local growth and green job and a pledge to extend the innovative Arfor programme to more local authorities will help grow sustainable local economies and the Welsh language at the same time.
There is the strong conviction that supporting small businesses and business owners are key to tackling poverty and creating secure work in communities across Wales. In other words, money in people’s pockets means successful businesses, and successful businesses mean more money in people’s pockets.
Not surprisingly, given his background, the focus is very much on supporting and improving businesses through enhancing the capability of employees. For example, there is a commitment to support everyday economy sectors like care and food, which constitute around two in five of all jobs in Wales and make a big contribution to supporting those high streets that are the hearts of towns across Wales.
Given that small businesses make up the vast majority of the everyday or foundation economy in Wales, the promise to make job quality in the everyday economy a key focus and link all public investment to better outcomes for local economies should be welcomed given the need to boost communities across Wales.
Another interesting idea is the proposal to set up a new fair work fund – Gwaith Teg – to support better working practices. This could benefit businesses as well as workers by supporting better management standards or helping businesses to create progression opportunities for those in low-paid work.
As a result, those businesses that invest in their workforce and working conditions will have a comparative advantage in recruitment and retention. With a real need to improve management practices to drive up productivity, this could be a game changer in encouraging businesses to become better organisations.
Welsh supply chains will be prioritised, particularly in sectors like housing construction to support business growth, and he will work with the whole public sector to bring procurement closer to people. There is also a promise to create a new Manufacturing Institute for Wales to develop skills and the workforce for the future.
Like Jeremy Miles, there is a pledge to reform the way government works to support the economy. In this case, there will be reforms to planning and investment frameworks to ensure that speed and certainty are at its heart to unlock more business opportunities and well-paid jobs for Wales. He also commits to looking at what the best countries in the world do to attract inward investment and ensure best practice is being implemented to bring the highest quality jobs to Wales, with higher salaries and improved working conditions.
Therefore, the contest between Jeremy Miles and Vaughan Gething offers two distinct visions for Wales’s future, each with their own innovative policy proposals.
While their approaches may differ in the mechanisms and sectors they prioritise, both candidates offer promises that could, if implemented, lead to a more dynamic Welsh economy especially if they harness the talent of those founders and innovators that make those changes happen.
And whoever becomes First Minister, one can only hope that he will focus on ensuring that Wales not only overcomes its economic challenges but, more importantly, works with brilliant Welsh businesses to capitalise on the entrepreneurial potential we know exists across our nation.