Handling economic shocks
One of the reasons RDAs were set up was to help manage major market failure at a regional level. The closure of the coal-mining industry, contraction of the car manufacture business, outbreak of foot-and-mouth or the recent flooding have all required dramatic and timely RDA intervention.
RDAs have provided the regional leadership to shore up local economies in times of crisis and help businesses survive and re-orientate. Economic restructuring includes measures to update the skill-set of workforces and help businesses navigate economic downturn and diversify into new products and services.
Success in handling crisis has resulted in the Government formalizing the responsibility for RDAs to manage the response to future industrial crises or natural disasters.
Flooding
The flooding that occurred in summer 2007 was amongst some of the worst seen in England in the last 100 years. Four regions were particularly badly affected: Yorkshire and the Humber, the South West, the West Midlands and the South East. Within these regions, RDAs have provided funding and advice for businesses affected and helped lead a co-ordinated response with industry. For further information on flooding see RDAs regional flood action.
Foot and Mouth
North Yorkshire, the North West and the South West were severely affected by FMD in the major outbreak in 2001. The case for intervening was based on stabilising business and job losses in the rural economies as a result of the shock of FMD, but much of the work resulted necessary restructuring and diversification for long term success.