Abstract
Much local economic policy in the UK assumes either an inward investment guise or involves some form of work with the local productive sector. This article critically examines both forms of policy as practised in a Merseyside context. It concludes that inward investment and local industrial development work undertaken by MERCEDO was in many ways regressive and broadly reducible to the development of capital. The later orientation of MERCEDO policy towards the unemployed and other labour groups is found to be a more progressive form of intervention.

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