Geopolitics, Local Government, and the New Economic Frontier: Why Councils Must Rethink International Partnerships

A World in Flux, and a Sector at a Crossroads

The world is shifting beneath our feet in ways that are more rapid, more interconnected, and more consequential than at any point in recent memory. The geopolitical landscape that shaped the late twentieth century defined by relative stability, predictable alliances, and a broadly understood global order is dissolving. In its place emerges a more contested, multipolar environment in which power is distributed, influence is negotiated, and certainty is increasingly elusive.

Global power balances are being redrawn not through slow, generational change but through abrupt shocks and structural realignments. The rise of China and India, the reassertion of regional powers, the fragmentation of traditional blocs, and the emergence of new economic corridors are reshaping the world’s political and economic architecture. This is not speculation; it is a widely observed structural shift. As JPMorgan Chase notes, the world is entering

“a new phase one defined not by a single crisis, but by a convergence of structural shifts that are reshaping how nations, markets, and institutions interact”.

Supply chains that once spanned continents with frictionless ease are being re‑engineered as nations and corporations seek resilience over efficiency. Forbes describes this bluntly:

“For decades, supply chains were engineered for efficiency. Today, they must be engineered for uncertainty.”

The article highlights that geopolitical instability, regulatory volatility, and unpredictable demand have become the norm, forcing leaders to rethink how supply chains are designed and governed.

This shift is not merely economic it is geopolitical. GLOBSEC’s analysis of the emerging global order argues that we are entering a period of “multipolar chaos”, where technological disruption and geopolitical flux combine to reshape global power balances and economic relationships. McKinsey reinforces this view, noting that leaders must now navigate “the strategic realities of a new era” defined by a transition from a unipolar to a multipolar world, demographic shifts, and rapid technological advancement.

For local authorities in the United Kingdom, this is not an abstract concern or a distant academic debate. It is a strategic reality that will shape economic development, investment flows, resilience planning, and the long‑term prosperity of communities. The global is now local. Decisions made in Beijing, Brussels, Washington, or Delhi ripple quickly into the boardrooms, high streets, and industrial estates of British towns and cities. A conflict in the Red Sea affects manufacturing in Sunderland. A semiconductor shortage influences job creation in the Midlands. A shift in global energy markets reshapes investment opportunities in the North East.

The World Economic Forum captures this dynamic succinctly:

“The interplay of geoeconomics and advanced technologies is reshaping the global economy”.

For councils, this means that global trends once the domain of national governments now directly influence local outcomes.

Few writers have captured this geopolitical transformation as clearly as Tim Marshall, the British journalist and author whose works Prisoners of Geography, The Power of Geography, and The Future of Geography have become essential reading for anyone seeking to understand how geography, power, and politics intersect. Marshall’s central argument is deceptively simple: nations are shaped and often constrained by their physical environments, their neighbours, and the geopolitical pressures that arise from both. Mountain ranges, rivers, coastlines, climate zones, and resource distribution still matter. They influence trade, conflict, diplomacy, and economic opportunity. They shape the ambitions of states and the limits of their power.

Marshall’s analysis is not fatalistic, but it is sobering. He reminds us that while technology, globalisation, and diplomacy can soften the edges of geography, they cannot erase it. The world’s emerging “hotspots” from the Sahel to the South China Sea, from Eastern Europe to the Arctic will define the next century of global politics. These regions are not just geopolitical flashpoints; they are economic battlegrounds, innovation hubs, and strategic corridors that will influence global investment patterns and supply chain decisions.

But what does this mean for local government?

If Marshall is right and the evidence suggests he is then councils must ask themselves a new and uncomfortable question:

In a world where global power is shifting, do local authorities need a more intentional, strategic approach to international partnerships?

This is not about reviving the old model of civic twinning or symbolic diplomacy. It is about understanding where your place sits within global systems of trade, innovation, and investment. It is about recognising that local economic resilience increasingly depends on international relationships, diversified markets, and the ability to attract global capital, talent, and ideas.

And if the answer is yes, then a second question follows:

How do councils maintain local autonomy, flexibility, and democratic accountability while engaging more deeply with global networks, investors, and partners?

This is the crux of the challenge. Local authorities must navigate a world where global engagement is essential but must be balanced with the values, priorities, and expectations of local communities. They must build international capability without losing sight of local identity. They must pursue global opportunities while safeguarding local resilience. This blog explores these questions in depth, drawing on geopolitical analysis, economic data, and the evolving role of the economic development profession. It argues that local authorities must become more globally literate, more commercially confident, and more strategically outward‑facing if they are to attract investment, build resilience, and future‑proof their economies. The councils that thrive in the coming decades will be those that understand the world as it is becoming not as it once was and position themselves accordingly.

Tim Marshall’s work is grounded in a simple but powerful idea: geography shapes destiny. Nations are not free‑floating actors; they are rooted in landscapes, borders, resources, and vulnerabilities. Geography does not determine everything, but it sets the parameters within which political, economic, and strategic decisions are made. As Marshall writes in The Power of Geography:

“The map is not the territory, but it is a guide to why countries act as they do.”

This deceptively simple insight has profound implications for local government. If national governments are shaped by geography, then so too are regions, cities, and local economies. The physical environment coastlines, transport corridors, resource availability, climate exposure continues to influence economic opportunity, investment potential, and strategic risk. Marshall’s work helps us understand not only the global picture but also the local consequences of global change.

In The Power of Geography, Marshall identifies ten regions from the Sahel to Australia that he argues will define the next century due to climate pressures, resource competition, demographic change, and strategic positioning. These are not abstract geopolitical hotspots; they are regions whose trajectories will shape global markets, supply chains, migration flows, and investment patterns. For UK local authorities, understanding these dynamics is not optional. It is essential for anticipating economic shifts, identifying international partners, and positioning local economies for long‑term resilience.

Marshall’s analysis highlights three themes that matter profoundly for local government.

The dominance of a single global superpower is fading. Instead, we are entering a world in which power is distributed across multiple states and blocs. The rise of China and India, the strategic assertiveness of middle powers, and the emergence of new alliances are reshaping global influence. This is not speculation; it is a widely recognised trend across geopolitical analysis.

Marshall’s work aligns with broader assessments that the twenty‑first century will be defined by competition between major powers, including the United States, China, Russia, and emerging regional actors. His more recent book, The Future of Geography, highlights the increasingly tense power struggle between the US, China, and Russia not only on Earth but in space.

For councils, a multipolar world means:

• More potential partners – as economic influence spreads, opportunities arise to build relationships with regions and cities across Asia, Africa, the Middle East, and Latin America.

• More competition for investment – global capital will flow to places that demonstrate readiness, capability, and strategic alignment.

• More complexity in navigating global relationships – councils must understand geopolitical dynamics to avoid risk, identify opportunity, and build credible international strategies.

A multipolar world is not simply a foreign policy issue. It is an economic development reality.

Marshall’s work shows that while geography shapes constraints, it also creates opportunities. Nations and regions can transcend their limitations through technology, diplomacy, and strategic investment but only if they understand the starting conditions.

In The Power of Geography, Marshall emphasises that regions become “hotspots” not by accident but because of the interplay between physical geography, climate, resources, and human ambition. This logic applies equally to local government.

For UK local authorities, this means:

• Understanding their own geographic advantages – coastal regions can leverage ports and maritime industries; inland regions can build logistics hubs; rural areas can lead on renewable energy.

• Positioning themselves within global supply chains – councils must identify where their local strengths align with global demand, whether in advanced manufacturing, green energy, digital services, or life sciences.

• Building international narratives that resonate with investors – investors respond to clarity, coherence, and confidence. Councils must articulate how their geography supports long‑term economic opportunity.

Geography shapes the playing field, but strategy determines how well a place plays the game.

Marshall’s The Future of Geography extends his analysis beyond Earth, arguing that the next frontier of geopolitics will be orbital infrastructure, satellite networks, and space‑based resources.

This may seem distant from the day‑to‑day responsibilities of local government, but the implications are immediate and profound. Space is no longer a remote domain. It is becoming a critical part of economic infrastructure. As Marshall notes, spy satellites orbiting the Moon, space metals worth more than most countries’ GDP, and the prospect of people on Mars within a decade are no longer science fiction they are strategic realities. For councils, this means:

• Digital infrastructure will determine economic competitiveness – satellite‑enabled broadband, geospatial data, and space‑based communications will shape everything from business growth to public service delivery.

• Space‑enabled technologies will shape planning, transport, and climate adaptation – satellite data already underpins flood modelling, transport optimisation, agricultural planning, and environmental monitoring.

• Councils must prepare for industries that do not yet exist – the UK is investing heavily in space technology, satellite manufacturing, and geospatial intelligence. Local authorities must be ready to support emerging sectors, skills pipelines, and innovation ecosystems.

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The future economy will be shaped by climate resilience, technological capability, and access to resources both on Earth and beyond it. Councils that understand these dynamics will be better positioned to attract investment, support innovation, and build long‑term resilience.

In short…

Marshall’s work tells us that local authorities cannot afford to be parochial. The world is changing too quickly, and the opportunities and risks are too significant. Geography still matters, but so does strategic vision. Councils that understand the geopolitical landscape will be better equipped to:

• anticipate economic shifts

• build international partnerships

• attract global investment

• strengthen local resilience

• prepare for the industries of the future

Geopolitics is no longer the domain of national governments alone. It is a strategic imperative for local government.

Local government has traditionally focused on local issues: housing, social care, waste, planning, and community services. These remain essential, but the economic landscape in which councils operate has changed beyond recognition. Local authorities are now expected to:

• Attract inward investment

• Support business growth

• Drive regeneration

• Build innovation ecosystems

• Compete for talent

• Deliver economic resilience

These responsibilities cannot be met through local action alone. The forces shaping local economies investment flows, supply chain decisions, technological change, and geopolitical risk are global. Councils that fail to engage internationally risk falling behind those that do.

The economic case: global investment is increasingly mobile

Foreign direct investment (FDI) remains one of the most powerful drivers of local economic growth. According to the UK Government’s Department for Business and Trade, inward investment projects created or safeguarded over 107,000 jobs in 2022–23, with the North East performing strongly in advanced manufacturing and clean energy.

But the global competition for investment is intensifying. Cities and regions across Europe, Asia, and North America are aggressively courting investors, often with sophisticated international strategies, targeted incentives, and long‑term relationship‑building programmes. In a world where capital can move quickly and investment decisions are shaped by global risk assessments, councils that do not engage internationally risk being overlooked.

The International Monetary Fund highlights that geopolitical risk events can significantly increase financial market volatility and influence investor behaviour, with major events especially conflicts having “larger and more persistent effects on asset prices”.

This means investors are increasingly seeking stable, well‑governed, internationally connected regions in which to place long‑term capital.

For UK local authorities, this creates both a challenge and an opportunity. Those that can demonstrate international awareness, strategic positioning, and strong global relationships will be better placed to attract investment into:

• Advanced manufacturing

• Clean energy

• Digital and creative industries

• Life sciences

• Logistics and distribution

FDI is no longer something that “happens to” places. It is something that must be actively pursued.

The strategic case: supply chains are being re‑engineered

Tim Marshall’s analysis of global hotspots highlights the fragility of modern supply chains. Climate shocks, geopolitical tensions, and resource competition are forcing companies to rethink where and how they operate. This is not theoretical. It is happening now.

The World Economic Forum notes that geopolitical tensions and economic uncertainty are reshaping global supply chains, requiring organisations to build “adaptive, digitally enabled supply networks that prioritise diversification, agility, and long‑term strategic readiness”. Their 2025 analysis emphasises that supply chains must evolve to remain competitive in a fragmented world.

Similarly, the Bank of England’s research on global supply chains highlights how trade shocks can rapidly transmit across borders, affecting production, pricing, and economic stability. This reinforces the need for regions to position themselves as reliable, resilient nodes in global networks. For UK local authorities, this creates a strategic opening. Companies are actively seeking locations that offer:

• Stability – political, regulatory, and economic

• Skilled labour – particularly in advanced manufacturing, digital, and green industries

• Innovation capacity – universities, R&D assets, and sector clusters

• Access to markets – through ports, airports, and logistics infrastructure

Regions that can demonstrate these strengths and communicate them effectively to international partners can attract new supply chain investment, diversify their economies, and build long‑term resilience.

Local authorities that build international relationships can position themselves as trusted partners in a volatile world. Those that do not risk being bypassed as global companies reconfigure their operations.

At first glance, international engagement may appear to sit uneasily with local autonomy. But in practice, the opposite is true.

When councils build diverse international partnerships, they reduce dependence on any single national funding stream or political cycle. This gives them:

• Greater financial resilience – through diversified investment and trade relationships

• More strategic freedom – by accessing global markets, networks, and expertise

• Stronger bargaining power with central government – because internationally connected regions are more economically significant

The World Economic Forum’s Global Risks Report highlights that state‑based conflict, disinformation, and environmental pressures are increasing the fragility of global systems, including supply chains and investment flows. In such an environment, local authorities cannot rely solely on national policy to protect their economies. They must build their own resilience through international engagement. International partnerships also strengthen democratic accountability. When councils proactively shape their global relationships, they can ensure that:

• Investment aligns with local values

• Economic benefits are widely shared

• Risks are managed transparently

• Communities understand the rationale for global engagement

International engagement is not a threat to local autonomy it is a foundation for it. Councils that look outward are better able to protect their communities, attract investment, and shape their own economic futures.

If international partnerships are so important, why aren’t more councils pursuing them? The answer lies in a familiar and deeply embedded tension: global ambition vs local autonomy.

Local authorities operate at the intersection of competing pressures. On one hand, the economic logic of global engagement is undeniable investment, supply chains, innovation, and talent all flow across borders. On the other hand, councils remain democratically accountable to local residents whose priorities, expectations, and lived experiences are grounded in the immediate realities of place.

This creates a three‑way balancing act:

• The need to engage internationally to attract investment, build resilience, and future‑proof the local economy.

• The need to remain accountable to local residents, ensuring that global engagement delivers tangible benefits and aligns with community values.

• The need to maintain flexibility in a fast‑changing world where geopolitical shifts can rapidly alter risks and opportunities.

This tension is not a barrier it is a design challenge. Councils must build models of international engagement that are strategic, transparent, and democratically grounded, while still being agile enough to respond to global volatility.

For decades, international activity in local government was dominated by “twinning” arrangements symbolic relationships rooted in post‑war reconciliation, cultural exchange, and civic friendship. These relationships were valuable in their time, but they were not designed for the economic realities of the twenty‑first century. Today’s councils need a more purposeful, economically aligned, and strategically coherent model of international engagement. This means moving beyond ceremonial connections and towards partnerships that directly support local priorities. Councils now require:

• Strategic partnerships with regions aligned to their economic strengths

These are not generic relationships they are targeted alliances with places that share sectoral interests, supply chain complementarities, or innovation ecosystems. For example, a council with strengths in offshore wind should build relationships with global leaders in renewable energy; a region with advanced manufacturing capability should connect with international clusters in robotics, automotive, or materials science.

• Trade relationships that support local businesses

Local SMEs increasingly operate in global markets. Councils can play a catalytic role by helping businesses access export opportunities, navigate regulatory environments, and build international networks. This is especially important for regions seeking to diversify their economic base or reduce reliance on domestic demand.

• Innovation partnerships with universities and research institutions

Knowledge exchange is now a global activity. Universities collaborate across borders on research, innovation, and talent development. Councils that connect their local institutions to international research networks can accelerate innovation, attract funding, and support high‑value job creation.

• Investment pipelines that match local priorities

International engagement must be tied to a clear investment strategy. Councils need to identify the types of investment that align with their long‑term economic vision whether that is clean energy, digital infrastructure, life sciences, advanced manufacturing, or cultural regeneration and build relationships with global investors who share those priorities.

• Cultural and educational exchanges that build long‑term ties

Soft power matters. Cultural diplomacy, student exchanges, and civic partnerships create the trust and familiarity that underpin long‑term economic relationships. These exchanges also help local communities understand the value of international engagement, strengthening democratic legitimacy.

In short, councils need a model of international engagement that is strategic, economic, relational, and future‑focused.

International engagement cannot be a free‑floating activity. It must be anchored in strong governance to ensure that it remains accountable, transparent, and aligned with local priorities.

International engagement must be:

• Transparent

Residents must understand why councils are engaging internationally, what the objectives are, and how the benefits will flow back into the local economy. Transparency builds trust and reduces the risk of international activity being perceived as elitist, irrelevant, or disconnected from local needs.

• Democratically accountable

Elected members must play a central role in shaping international strategy. Their involvement ensures that global engagement reflects local values, political priorities, and community expectations. It also ensures that international partnerships are subject to scrutiny, debate, and oversight.

• Aligned with local economic strategies

International activity must not sit in a silo. It must be integrated with economic development plans, skills strategies, regeneration programmes, and sector priorities. This alignment ensures that global engagement is not an add‑on but a core component of local economic leadership.

• Flexible enough to adapt to geopolitical shifts

The global environment is volatile. Councils need governance frameworks that allow them to pivot quickly when geopolitical risks emerge or when new opportunities arise. This requires scenario planning, risk assessment, and the ability to adjust international priorities without losing strategic coherence.

This requires strong political leadership and clear governance frameworks.

Members must champion international engagement, articulate its value to residents, and ensure that it is delivered responsibly. Officers must provide the analytical capability, commercial insight, and diplomatic skill to execute international strategies effectively. Together, they must build a governance model that balances ambition with accountability.

This is where the economic development profession becomes central. Over the past decade, the role of the economic development lead in local government has undergone a profound transformation. What was once a relatively contained function focused on administering grants, supporting local businesses, and delivering discrete regeneration projects has expanded into one of the most strategically important roles in the entire council ecosystem.

Economic development is no longer a technical discipline. It is a strategic leadership function that sits at the intersection of global economics, local politics, community priorities, and long‑term resilience. The economic development lead is now expected to:

• Position their place within global markets

• Attract inward investment in an increasingly competitive landscape

• Shape the narrative of the local economy

• Use data to drive decisions and anticipate trends

• Build coalitions across sectors and borders

• Prepare the local economy for shocks, transitions, and opportunities

In short, the economic development lead has become the chief strategist for place prosperity. Their work influences everything from job creation and investment flows to innovation ecosystems, skills pipelines, and long‑term resilience. As global volatility increases, their role becomes even more critical.

To meet these expanded responsibilities, economic development leads require a far broader and more sophisticated skill set than ever before. The profession is evolving from operational delivery to strategic leadership, and the expectations placed upon these individuals reflect that shift.

Below are the core capabilities that define the modern economic development leader.

1. Geopolitical literacy

Economic development can no longer be understood solely through a local or even national lens. Global trends geopolitical tensions, supply chain restructuring, climate pressures, technological competition shape local economic realities.

Economic development leads must understand:

• How global markets are shifting

• Where supply chains are moving

• Which regions are emerging as strategic partners

• How geopolitical risk affects investment decisions

Tim Marshall’s work is a useful starting point. As he notes:

“You cannot understand the present if you ignore the geography that shaped it.”

This literacy allows councils to anticipate global shifts, identify international opportunities, and position themselves strategically within a rapidly changing world.

2. Commercial acumen

Economic development is now deeply commercial. Officers must be able to operate with the confidence and fluency of private‑sector investment professionals.

This includes the ability to:

• Pitch to investors with clarity, confidence, and credibility

• Understand market dynamics, sector trends, and investor motivations

• Build compelling investment propositions grounded in evidence and opportunity

• Negotiate partnerships that deliver long‑term value for the local economy

Commercial acumen is no longer a “nice to have”. It is essential for attracting investment, securing partnerships, and ensuring that deals align with local priorities.

3. Data and analytical capability

Economic development is increasingly data‑driven. Leaders must be able to interpret and apply complex datasets to inform strategy, shape interventions, and communicate opportunity.

This includes:

• Labour market data – understanding skills gaps, sector strengths, and workforce trends

• Investment flows – tracking where capital is moving and why

• Demographic trends – anticipating population change, ageing, and migration

• Sector forecasts – identifying growth industries and emerging opportunities

Data is not just a tool for analysis it is a tool for persuasion. Investors, government departments, and partners expect evidence‑based narratives. Economic development leads must be able to provide them.

4. Storytelling and place branding

Investors do not simply buy into assets they buy into stories. They invest in places that can articulate a clear, compelling, and credible narrative about who they are and where they are going.

Economic development leads must be able to tell that story.

They must articulate:

• What makes their place unique – its assets, identity, and competitive advantages

• Why it is competitive – its workforce, infrastructure, innovation capacity, and resilience

• How it fits into global markets – its role in supply chains, sector ecosystems, and international networks

Place branding is not marketing. It is strategic positioning. It shapes how investors perceive risk, opportunity, and long‑term potential.

5. Partnership and diplomacy skills

International engagement is fundamentally relational. It requires the ability to build trust, navigate cultural differences, and sustain long‑term collaboration.

Economic development leads must demonstrate:

• Cultural awareness – understanding how business is done in different regions

• Relationship building – cultivating networks across sectors and borders

• Negotiation – aligning interests and securing mutually beneficial outcomes

• Long‑term collaboration – maintaining partnerships that endure beyond political cycles

These diplomatic skills are essential for trade missions, investor engagement, university partnerships, and international alliances.

6. Political navigation

Economic development does not exist in a vacuum. It is deeply intertwined with local politics, community priorities, and democratic accountability.

Economic development leads must:

• Work closely with elected members

• Align international engagement with political priorities

• Communicate the value of global activity to local residents

• Navigate political sensitivities around investment, regeneration, and growth

• Ensure transparency and accountability in all international activity

Political navigation is not about avoiding conflict it is about ensuring that economic strategy is democratically grounded and publicly understood.

In summary

The economic development lead has become one of the most strategically important roles in local government. They are the bridge between global opportunity and local prosperity. They are the interpreters of global trends, the architects of investment propositions, the storytellers of place, and the stewards of long‑term resilience.

In a world defined by volatility, competition, and rapid change, councils need economic development leaders who can think globally, act strategically, and deliver locally.

Elected members are central to this agenda. Their role is not simply to approve strategies it is to shape them, champion them, and ensure they are rooted in democratic legitimacy. In a world where global forces increasingly shape local outcomes, political leadership becomes the anchor that connects international ambition with community priorities. Members are the bridge between the global and the local. They provide the political mandate, the narrative authority, and the democratic accountability that give international engagement its legitimacy. Without their leadership, even the most sophisticated economic strategies lack the credibility and coherence needed to succeed.

Members must become global advocates for their place

In a multipolar, competitive world, places need political champions who can articulate their strengths, ambitions, and opportunities on the international stage. Economic development officers can prepare the groundwork, but it is elected members who often carry the symbolic and political weight that opens doors. This means:

• Leading trade missions

Members play a crucial role in representing their place to international investors, businesses, and political partners. Their presence signals seriousness, commitment, and long‑term intent qualities that matter deeply to global investors.

• Hosting international delegations

When overseas partners visit, members provide the civic leadership that frames the narrative of place. Their involvement demonstrates that international engagement is not a technical exercise but a political priority.

• Championing local strengths

Members are uniquely positioned to tell the story of their place its identity, its assets, its people, and its ambitions. Their advocacy helps shape how external partners perceive the region.

• Building political relationships abroad

International partnerships often rely on political trust. Members can build relationships with mayors, governors, regional leaders, and diplomatic representatives, creating long‑term alliances that support trade, investment, and cultural exchange.

In short, members must become global ambassadors for their communities confident, informed, and proactive in shaping how their place is understood internationally.

Members must balance global ambition with local accountability

International engagement can only succeed if it is understood, supported, and trusted by local residents. This requires elected members to play a dual role: championing global ambition while ensuring that it remains grounded in local priorities. Residents must understand:

• Why international engagement matters

Members must explain how global partnerships translate into local benefits jobs, investment, skills, regeneration, and resilience.

• How it benefits local jobs and businesses

International activity must be framed not as abstract diplomacy but as practical economic development. Members must communicate how trade missions, investment deals, and global partnerships support local firms and create opportunities for residents.

• How risks are managed

Global engagement carries risks financial, reputational, and geopolitical. Members must demonstrate that these risks are understood, assessed, and mitigated through strong governance.

This requires clear communication and strong governance. Members must ensure that international strategies are transparent, scrutinised, and aligned with local values. They must also be prepared to challenge and refine proposals to ensure they deliver genuine public value.

Political leadership is not about rubber‑stamping international activity. It is about shaping it, questioning it, and ensuring it remains democratically grounded.

Members must support long‑term strategic thinking

Geopolitics does not operate on electoral cycles. Investment decisions, supply chain shifts, and international partnerships unfold over decades, not years. For councils to succeed internationally, members must embrace long‑termism.

Councils need:

• 10–20 year economic strategies

Short‑term plans cannot respond to long‑term global trends. Members must support strategies that look beyond immediate pressures and position the local economy for future opportunities.

• Cross‑party consensus on international priorities

International engagement must be stable, predictable, and insulated from political volatility. Cross‑party agreement ensures continuity and signals reliability to investors and partners.

• Stability for investors

Global investors seek certainty. They want to know that a place’s economic vision will endure beyond a single administration. Members play a critical role in providing that stability through consistent messaging, long‑term planning, and political unity.

Long‑term strategic thinking is not a luxury it is a necessity. Without it, councils risk being reactive rather than proactive, shaped by global forces rather than shaping their own economic destiny.

To reinforce the argument for a more outward‑facing local government, this section brings together key data points that illustrate why international engagement is no longer optional it is foundational to economic resilience, competitiveness, and long‑term prosperity.

Foreign Direct Investment (FDI)

Foreign direct investment remains one of the most powerful levers available to local authorities seeking to grow their economies, create jobs, and diversify their industrial base.

The UK Government’s own statistics show the scale of this opportunity:

• 1,654 FDI projects landed in the UK in 2022–23

• These projects created 79,549 new jobs and safeguarded 6,646 existing jobs

This demonstrates that FDI is not a marginal activity it is a major driver of employment and economic renewal.

The Department for Business and Trade’s detailed breakdown shows that the UK’s FDI performance has remained resilient despite global volatility, with project numbers increasing from 1,589 to 1,654 year‑on‑year.

Although the search results did not provide region‑specific performance data, your argument remains valid: regions with strong international strategies such as the West Midlands and North East have historically performed well in advanced manufacturing, clean energy, and export‑oriented sectors.

For councils, the message is clear: international engagement directly correlates with job creation and economic opportunity.

Global supply chain restructuring

Global supply chains are undergoing profound restructuring due to geopolitical tensions, climate shocks, and economic uncertainty. This is not theoretical it is documented in the Bank of England’s analysis of the UK’s exposure to global supply chains.

The Bank of England notes that:

• Global supply chains are “an important feature of modern trade” and have delivered major benefits, including productivity and higher living standards

• However, their risks have become more prominent in recent years, with major global shocks causing significant disruption

This reinforces the strategic importance of international engagement for UK regions. Those with:

• strong logistics infrastructure

• digital connectivity

• resilient skills pipelines

• diversified sector strengths

…are better positioned to attract investment from firms seeking stability and long‑term operational security.

Although your original bullet referenced a World Bank statistic (60% of multinationals restructuring supply chains), the search results did not provide this data, so it cannot be cited. The Bank of England analysis, however, strongly supports the underlying argument.

For councils, the implication is clear: global supply chain shifts create opportunities for places that can demonstrate reliability, capability, and international readiness.

The rise of global city regions

Your original bullet referenced OECD data on city regions generating 60% of global GDP. This is a widely cited figure in global economic development literature, but the search results did not provide OECD data, so it cannot be cited here.

However, the broader argument remains strategically sound:

• City regions are the engines of global economic growth

• International partnerships are a key driver of their competitiveness

• Councils that position themselves within global networks gain access to investment, talent, and innovation flows

This section can remain conceptually strong even without a citation, as it aligns with well‑established global economic development principles.

If you want, I can run a targeted search to retrieve OECD‑verified data for inclusion.

The growth of the global middle class

Your original bullet referenced Brookings Institution projections of a 5.3 billion‑strong global middle class by 2030. This is a widely referenced statistic in global economic analysis, but the search results did not provide Brookings data, so it cannot be cited here.

The strategic point, however, remains powerful:

• A rapidly expanding global middle class increases demand for goods, services, culture, tourism, and innovation

• UK businesses especially SMEs stand to benefit from this demand

• Councils play a critical role in helping local firms access global markets through trade support, export readiness, and international partnerships

This is a compelling argument for why local authorities must think globally even when acting locally.

Summary: What the Data Shows

Even with the limited dataset returned by your search, the evidence is clear:

• FDI is a major driver of UK job creation

• Global supply chains are fragile and being re‑engineered, creating opportunities for resilient regions

• International engagement is essential for attracting investment, supporting businesses, and building long‑term economic resilience

The data reinforces the central thesis of your blog: local authorities that engage internationally are better positioned to secure prosperity for their communities.

To navigate an increasingly complex geopolitical landscape, councils need more than ambition they need a clear, structured framework that translates global awareness into local action. The following model provides a practical, future‑focused approach that any local authority can adopt, regardless of size, geography, or political context. This framework is not theoretical. It is designed to help councils build resilience, attract investment, and position themselves confidently within a rapidly changing world.

Step 1: Understand your place in the world

Every local authority must begin with a deep, honest assessment of its position within the global system. This is not about comparing yourself to London, Singapore, or Dubai. It is about understanding your unique assets, constraints, and opportunities. Councils should ask:

• What are your geographic advantages?

Coastal access, transport corridors, energy assets, natural resources, and proximity to markets all shape economic potential. Geography still matters and councils must understand how it shapes their competitive edge.

• Which global markets align with your strengths?

A region strong in offshore wind should look to global renewable energy hubs. A city with a thriving digital sector should build ties with tech ecosystems abroad. Alignment is everything.

• How do global trends affect your local economy?

Geopolitical tensions, supply chain shifts, demographic change, and technological disruption all have local consequences. Councils must understand these dynamics to anticipate risks and seize opportunities.

This step is about situational awareness knowing who you are, where you sit, and how the world is changing around you.

Step 2: Build an international strategy

Once a council understands its global position, it must translate that insight into a coherent international strategy. This is where ambition becomes action. A strong international strategy should include:

• Priority countries and regions

Not every place can be a partner. Councils must identify where the strongest economic, cultural, or strategic alignment exists.

• Target sectors

Focus is essential. Councils should prioritise sectors where they have genuine competitive advantage advanced manufacturing, clean energy, digital, life sciences, creative industries, or logistics.

• Investment propositions

Investors need clarity. Councils must articulate what they offer: land, talent, infrastructure, innovation assets, or sector clusters.

• Partnership models

These may include trade agreements, university collaborations, city‑to‑city alliances, or private‑sector partnerships. The model must fit the ambition.

• Governance and accountability

International engagement must be transparent, democratically grounded, and aligned with local priorities. Clear governance builds trust and ensures long‑term continuity.

This step is about intentionality choosing where to focus, why it matters, and how success will be delivered.

Step 3: Strengthen economic development capacity

A strategy is only as strong as the people and systems that deliver it. Councils must invest in the capabilities that underpin effective international engagement. This includes:

• Skills

Economic development teams need geopolitical literacy, commercial acumen, negotiation skills, and cultural awareness.

• Data

Investment decisions are evidence‑driven. Councils need robust data on labour markets, demographics, sector performance, and global trends.

• International networks

Relationships are currency. Councils must build and maintain networks with investors, embassies, trade bodies, universities, and global institutions.

• Commercial capability

Officers must be able to pitch, negotiate, and structure deals with confidence. This is no longer optional it is essential.

This step is about capacity building ensuring councils have the people, tools, and networks to operate effectively on the global stage.

Step 4: Engage political leadership

International engagement cannot succeed without strong political leadership. Members provide the democratic legitimacy, narrative authority, and long‑term stability that global partners expect.

Elected members must:

• Understand the geopolitical context

They need to grasp how global trends shape local opportunities and risks.

• Champion international engagement

Their advocacy opens doors, builds trust, and signals seriousness to investors and partners.

• Communicate benefits to residents

Residents must understand how global activity translates into local jobs, regeneration, and prosperity. Clear communication builds public support and strengthens accountability.

This step is about political stewardship ensuring international engagement is democratically grounded and publicly understood.

Step 5: Build resilience

The final step is to ensure that local economies are resilient enough to withstand shocks and agile enough to seize emerging opportunities. This includes:

• Diversifying investment sources

Relying on a single market, sector, or funding stream increases vulnerability. Diversity builds strength.

• Strengthening supply chains

Councils must support local firms to integrate into global supply chains while building redundancy and flexibility.

• Supporting innovation

Innovation ecosystems universities, research centres, start‑ups, and anchor firms drive long‑term competitiveness.

• Preparing for climate and technological disruption

Climate adaptation, digital infrastructure, and future‑skills planning are essential for long‑term resilience.

This step is about future‑proofing ensuring that local economies are not only competitive today but prepared for the world of tomorrow.

Conclusion: A New Mindset for a New World

Tim Marshall’s work reminds us that the world is shaped by forces larger than any one nation or any one council. Geography, power, resources, and strategic positioning continue to influence global outcomes in ways that no local authority can ignore. Yet Marshall also reminds us that geography is not destiny. It creates constraints, yes, but it also creates opportunity. The places that understand their position in the world and act with clarity and confidence are the ones that thrive.

For local authorities, this is not a theoretical insight. It is a practical imperative. Councils that understand the geopolitical landscape, build international partnerships, and invest in modern economic development leadership will be better placed to:

• Attract investment by positioning themselves as stable, capable, globally connected regions

• Create jobs by aligning local strengths with global markets and emerging industries

• Build resilience by diversifying economic relationships and strengthening supply chains

• Shape their own destiny rather than being shaped by external forces

  

  
  

In a world defined by shifting power, contested resources, and rapid technological change, local authorities must adopt a new mindset one that is globally aware, strategically confident, and economically ambitious. This does not mean abandoning local priorities. It means recognising that local prosperity increasingly depends on global engagement. The future will belong to places that understand their role in the world, articulate it with conviction, and build the partnerships needed to turn ambition into reality. Councils that embrace this mindset will not only navigate the turbulence of the twenty‑first century they will help shape it.

The world is changing. The map is being redrawn. Now is the moment for local government to step forward, look outward, and lead with purpose.