In recent years, there has been a growing scholarly focus on the importance of narrative and storytelling within the social sciences, particularly in organisational studies. This trend highlights the linguistic orientation prevalent across these disciplines. Narratives—stories or accounts that convey meaning—play a crucial role in helping individuals and organizations make sense of the world around them. For phenomena that are difficult to measure, such as people's sentiments about their place of residence, narratives provide a rich source of information.
Communities often draw on their histories to make sense of their current circumstances. By examining narratives as products of specific contexts, scholars can identify underlying constructs and power dynamics within communities or organizations. These narratives are not neutral; they are imbued with power relations, reflecting and perpetuating dominant ideologies while also offering spaces for resistance through counternarratives. Thus, narratives can serve as powerful political tools, dramatizing control and compelling belief while shielding false claims from scrutiny.
In a world filled with uncertainty, economic actors often lack objective knowledge about the outcomes of their investments or choices. Consequently, they rely on observing, listening, learning from, and possibly emulating others. By using social, emotional, and cognitive information, humans can navigate the absence of essential information and the overload of inessential information. This includes information taken from the collective narratives and stories told by a community, e.g., Jaywick being described by locals as “rough” and “in desperate need of redevelopment”. Accordingly, Collier and Tuckett argue for the importance of examining how collectively held and communicated ideas and narrative about a place form and can be reset.
The narratives and stories circulating within a community can reflect ideas about the current state of skills and industry in a region and its future prospects. These narratives can coalesce into 'deep stories' that inform economic agents' beliefs and, consequently, their decisions. These 'deep stories' represent an informal institution that lagging regions might benefit from improving. Collier and Tuckett suggest that regional political leaders could use their communicative power to purposefully reset damaging narratives alongside conventional policy interventions.
There is substantial evidence that corporate leaders' narratives can influence beliefs. Economic interventions aligned with forward-looking strategies in prosperous regions give credibility to positive narratives, fostering widespread confidence and establishing robust place identities that attract further investment. For instance, London's narrative as "Europe’s predominant cosmopolitan community of opportunity" has created a virtuous cycle of belief and investment, even if the beliefs themselves might be misplaced.
Conversely, Wales is described as having a fragmented narrative that blames others for economic failure, is constantly looking backward, and exhibits a victimhood mentality. This negative narrative traps Wales in a cycle of underperformance. Collier and Tuckett propose that local leaders could reset negative local narratives through effective communication. Leaders need to demonstrate consistency, trustworthiness, competence, and the ability to articulate economic opportunities through narrative. Additionally, leaders must address the anxieties of economic agents and support their dialogue with tangible policy interventions. By doing so, it may be possible for local leaders in left behind places to reset local narratives and initiate a virtuous cycle.
However, in regions affected by deindustrialization, historical legacies significantly impact skill demand and supply. Additionally, the effects of austerity, the COVID-19 pandemic, and governmental issues have further contributed to growing regional disparities and discontent. Failure to acknowledge these factors may undermine the trustworthiness of local leaders and their understanding of economic realities when attempting to reset local narratives. Additionally, even when local leaders effectively articulate new narratives, they may face limitations due to fragmented devolution. The extent to which state structures enable or constrain local leaders in reshaping narratives remains an area for further exploration, given the significant impact governance frameworks have on the formal authority and power of local actors.
Narratives are powerful tools that can shape regional economies by influencing beliefs and decision-making processes. By understanding and leveraging these narratives, local leaders may be able to foster economic growth and competitiveness, even in regions facing significant challenges. Understanding how state structures may constrain or enable local actors in this task is essential for assessing the success or failure of local leaders attempting to reset local narratives.
All articles posted on this blog give the views of the author(s), and not the position of the IPR, nor of the University of Bath.
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