Regions cannot live on income transfer alone. Hence the importance of boosting innovation as a way out of the present crisis (Drewe, 2010a,b). A 'sluggish recovery', leave alone a 'lost decade' are not very promising scenarios. Much will depend on the Flagship Initiative 'Innovation Union' (European Commission, 2010).
Personal income per capita still menas that prosperity or poverty are measured in monetary terms. For many years now scholars and international organizations have pleaded for the use of non-monetary indicators (closer to social cohesion) that is: happiness, well-being, quality of life, satisfaction, human development and the like (see
- one may obtain a more balanced and intellectually more satifying view on cohesion: without overestimating the real wealth by taking into account social costs, but also without estimating it by includig social benefits (social costs and benefits relate to production, distribution and consumption).
- but one may also console the 'monetary' poor that they are not so poor or even rich in other ways. By doing so, however, one ignores the difference between absolute and relative poverty (or the relevance of reference groups).
At the end of the day, the nitty-gritty of social cohesion pivots on (un)employment, in particular on youth and long-term unemployment. What yardstick to adopt for regional disparities (another EU-27=100?) and what eligibility threshold?
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