The political economy of capital cities

Capital cities that are not the dominant economic centers of their nations – so-called
‘secondary capital cities’ (SCCs) – tend to be overlooked in the fields of economic
geography and political science. Yet, capital cities play an important role in shaping the
political, economic, social and cultural identity of a nation. As the seat of power and
decision-making, capital cities represent a nation’s identity not only through their symbolic
architecture but also through their economies and through the ways in which they
position themselves in national urban networks.
"The political economy of capital cities" aims to address this gap by presenting the
dynamics that influence policy and economic development in four in-depth case studies
examining the SCCs of Bern, Ottawa, The Hague and Washington, D.C. In contrast
to traditional accounts of capital cities, this book conceptualizes the modern national
capital as an innovation-driven economy influenced by national, local and regional
actors. Nationally, overarching trends in the direction of outsourcing and tertiarization
of the public-sector influence the fate of capital cities. Regional policymakers in all
four of the highlighted cities leverage the presence of national government agencies
and stimulate the economy by way of various locational policy strategies.
While accounting for their secondary status, this book illustrates how capital-city
actors such as firms, national, regional and local governments, policymakers and planning
practitioners are keenly aware of the unique status of their city. The conclusion provides
practical recommendations for policymakers in SCCs and highlights ways in which they
can help to promote economic development.