Managerialism, governmentality and the state: a neo-Foucauldian approach to local economic governance

After decades of relative stability, the 1980s and 1990s witnessed a radical restructuring of local-central relations in Britain. This paper draws on neo-Foucauldian writings on 'governmentality' to argue that local state restructuring is a product of the ascendancy of neo-liberalism as a distinct political rationality. Material drawn from empirical research on local economic governance in the Scottish Highlands shows how the functioning of a distinct set of managerial 'technologies' - embedded in specific practices such as budgetary management, audit and targeting - is instrumental in giving the central state the capacity to shape local institutional practice. At the same time, however, local institutional actors retain some scope to adapt and 'translate' central directives to their own particular purposes. Whilst recent neo-Gramscian contributions argue that local governance must be seen as a product of national state restructuring, the neo-Foucauldian emphasis on governmental technologies specifies the precise mechanisms which give central state authorities the reach and capability to monitor and steer the activities of local institutions. In conclusion, the paper suggests that focusing on the reception of governmental technologies within sub-national institutional sites may offer a productive line of inquiry which can expose the internal contradictions and fissures of neo-liberal programmes. (C) 2000 Elsevier Science Ltd. All rights reserved.