Local response to socio-economic change in East-German and North-English old industrial towns - Issues of Governance and Regional Development

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Local response to socio-economic change in East-German and North-English old industrial towns - Issues of Governance and Regional Development
Local response to socio-economic change
in East-German and North-English old industrial towns

                             – Issues of Governance
                          and Regional Development

                                       Dealing with Change
                                  Demographic Change and
                            Regional Development Strategies

                                      Berlin, 18-19 Nov 2010
                                                Dr. Thilo Lang
                             Leibniz-Institut für Länderkunde
Local response to socio-economic change in East-German and North-English old industrial towns - Issues of Governance and Regional Development
Starting Point
    East Germany since the
     1990s
       population loss
       urban decline
       economic downturn
       high unemployment
    East Germany as
       periphery?
       hit by multiple
         peripheralisation?
        and centralisation?

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Local response to socio-economic change in East-German and North-English old industrial towns - Issues of Governance and Regional Development
Dimensions of peripheralisation
  Peripheralisation as (relative)
     economic slowdown
     systemic desintegration (e.g. infrastructure)
     (relative) loss of importance (e.g. population, jobs)
     loss of power and growing dependence on dominant centres
     a result of system immanent processes of capitalist order
  Production of peripheries as social discourse
     „winning“ and „losing“ or „lagging“ regions
     dominant interpretations of the central and the peripheral
     related normative concepts to the order of centre-periphery
     peripheralisation in your head – mental „lock-ins“
  no link to structurally defined spatial category
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Local response to socio-economic change in East-German and North-English old industrial towns - Issues of Governance and Regional Development
Blyth

                                                                                Wolgast
                     Barrow

                                                                                  Schwedt

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Local response to socio-economic change in East-German and North-English old industrial towns - Issues of Governance and Regional Development
Research questions

             Which key factors lead to and support the
              emergence of local socio-economic initiatives?
                as a response to socio-economic change
                in peripheralised old industrial towns

             to what extent can the emergence of such initiatives
              be explained with
                institutional contexts,
                specific forms of governance and partnership,
                regional or national frameworks?

                 utilising 3 research perspectives

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Local response to socio-economic change in East-German and North-English old industrial towns - Issues of Governance and Regional Development
Socio-economic initiatives

             local projects, schemes, undertakings
                direct economic and social objectives
                new jobs for local people
                integration of long-term unemployed
                community enterprises
                branch-based growth schemes
                start-up support

        significance of socio-economic initiatives
                 overall relevance of local economy
                 8% of jobs in the social economy in Germany
                 high symbolic importance
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Local response to socio-economic change in East-German and North-English old industrial towns - Issues of Governance and Regional Development
Theoretical inventory
                                                                    socio-economic
                                                                      challenges
                        spatial disparities                                                        globalisation

                                                                           practices
                                                                                                    institutional
                                                         norms                          routines    environment

                                          socio-econ.                                     actors,
                                           initiatives                          ?      organisations
                                                        rules                             policy
                                                       statutes                         documents

                                                                       key                                national
                                                                   mechanisms,                         policy context
                                                                   governance?

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Local response to socio-economic change in East-German and North-English old industrial towns - Issues of Governance and Regional Development
Research methodology
             2 x 2 comparative case study approach
                most similar systems design
                common themes across cases in differing contexts
             main data
                24 semi-structured interviews with 29 actors
                qualitative analysis of local, regional and national context
             institutional analysis
                identifying collective, value-driven, rule-bound or
                  instituted forms of behaviour/ decision taking
                 understanding specific institutional environments
             grounded theory: inductive proceeding

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Schwedt                                                                     Wolgast
Projekte                               Ziele                                     Projekte                  Ziele
LILA - lokale Initiativen für          promoting self-employment                 Produktionsschule         Train and motivate young
lokale Aktivitäten                     for long term unemployed                  (Sozialagentur/ CJD)      unemployed

Biofuels Initiative                    Attract biofuels businesses,              Centrepoint (IDB)         Support females starting up in
                                       complement local industry                                           business

Forschungsgemeinschaft                 training and employment for               Existenzgründer-          Workspace + support for new
für Technischen                        former research employees of              zentrum                   and young enterprises
Umweltschutz u. Logistik               PCK
Technologie- u.                        local incubator                           Perspective 50plus        Support self-employment
Gründerzentrum (TGZ)                                                             (Sozialagentur)

Service- und                           supporting businesses to                  "Kiek In" Sozialladen     Furniture and household items
Beratungszentrum SBC                   expand into the Polish market             (Sozialagentur)           for the poor

Solarinitiative Schwedt                supporting solar energy in                Baltic e.V.               Support women and families,
                                       Schwedt                                   (Weiberwirtschaft)        consulting, rooms to rent

Patenmodell Arbeit durch               supporting start-ups with                 Red Cross: Used           Collect and re-distribute used
Management                             business angels                           furniture and clothes     items
Biogascluster/ Barum 111               networking of biogas initatives           Familienzentrum           Social work and leisure
                                       and sustainable energy                    (SHIA e.V.)               activities

Freiwilligenagentur                    finding honorary jobs for local           LMAA (CJD e.V.)           integration of unemployed, local
Schwedt                                people                                                              cooperative
Impulse: Wirtschafts- und              promoting internet-use
Bürgernetzverein
LOS – lokales Kapital für              promoting self-employment
soziale Zwecke                         with local projects
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Findings: 3 groups of supporting factors

             specific forms of governance and partnership
                organisations
                decision takers
                capacities
             institutional contexts
                identification with initiatives
                networks of support
                strategic fit
             regional or national frameworks
                frameworks
                funding
                wider debates
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Specific forms of governance

             forms of strategic governance with little effects
                partly even closed shops
             agencies very supportive towards initiatives
                direct impacts through effective agencies

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Institutional environments and initiatives
         Schwedt
            long term and high appreciation of industrial development
            dominance of industrial leaders in economic policy
            clear formal economy support and low value of
                 social initiatives
         Blyth
            three cycles of decline
              (coal, shipbuilding,
              textiles)
             paradigm of community
              driven regeneration
             support to community
              driven projects and
              distrust in formal ec.
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Institutional environments - quotes
       Schwedt: „Diese Aktivitäten sind lobenswert, aber sie führen nicht zu
       Arbeitsplätzen auf dem ersten Arbeitsmarkt. [...] Wir müssen uns damit
       abfinden, das endogene Potenzial ist weitestgehend ausgeschöpft in
       diesen dünn besiedelten Regionen.“
       Blyth: "it's a culture the way we work here [...]. And our community
       development strategy is about as playing a strategic role rather than just
       community worker role.“

       Schwedt: „Leute, die jetzt seit der Wende arbeitslos sind, ja, also zehn
       Jahre plus arbeitslos sind. Die kann man schlichtweg im Prinzip nur
       verrenten. […] Die werden nie wieder 'ne Arbeit bekommen"
       Barrow: „What I think they're doing is dealing with the worst problems
       we've got now. Trying to help people out of the difficulties they're in. They
       are fundamentally about giving those people more choices in life.“

                  normative lack of agreement (Normdissens)

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National and regional contexts

             direct interventions (UK)
                supra-local actors in local governance
                setting up new agencies and task forces
             shaping local policies
                giving policy orientation by national debates
                government inspired initiatives in the UK vs. less national
                      regulation and higher importance of the lower tiers in
                      Germany (Länder)
             funding opportunities
                mainly specialised and competitive funding schemes in
                      the UK vs. mainstream programmes in Germany

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Relevant actors for socio-economic
       development according to policy-level
       (>33% recognition; local, sub-regional, regional, national)

                                              2

                                              2                         1

                                               3                        1                          2

                                                   8                        5             7         4

                                     Blyth                  Barrow              Schwedt       Wolgast

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Achievements

             methodological
               framework for cross-national comparative governance study
               combining institutional theory and analytical governance
                      perspective
             practical
                adding to contemporary British governance debate and
                  German debate about urban regeneration/ Stadtumbau
                 introducing a social economy theme to German debate
             theoretical
                governance factors: clearly over-estimated (partnership?)
                understanding governance in institutional environments
                determinating role of national debates
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Leibniz-Institut für Länderkunde, Leipzig

      Local response to socio-economic challenges
                          in Germany and England

Thank you!

Dr. Thilo Lang
Leibniz Institute
for Regional Geography
T_Lang@IfL-Leipzig.de
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