Analysis

In the search for stability and growth, policy and debate often focuses on looking for multi-million pound inward investment, or industries with big ideas such as technology and manufacturing. But these businesses, which often rely on sophisticated technology to produce tradeable and exportable products, only make up a small proportion of the UK economy. Instead the “Foundational Economy” - things like food production and processing, retail, health, education, housing and welfare, contribute to a much larger proportion of spending. They account for around four in ten jobs and £1 spent in every three in Wales. Wales has been a global pioneer in supporting the “mundane” but crucial Foundational Economy, shaping policies around it. They’ve establish a dedicated ministerial board, and have a £4.5m fund, supporting a series of experimental projects testing the importance and potential of the Foundational Economy. But can it ever be big enough or bold enough to transform the state’s finances? Clare McNeil visit