Structural economic change: Birmingham
- Created by: Katariina
- Created on: 21-12-21 19:46
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- A place impacted by structural economic change: Birmingham
- Role of players involved in driving change
- Local & National Government
- The Government is investing £20 bn into HS2 to reduce North/South divide and stimulate Birmingham's economy
- Government set up Enterprise Zones (EZs) within the previously decaying city centre
- EZs offer simplified planning & tax breaks to encourage inward investment. 25% of the Eastside area has been allocated as an EZ.
- European Union (EU)
- Birmingham gained £1 bn EU investment to help create economic change & regeneration
- EU provided £50 million toward ICC & Symphony Hall
- Private Businesses / TNCs
- Private investors such as JB (2,500 jobs), Selfridges etc
- Rapidly growing 'knowledge economy': 6,000 tech companies, 5,200 creative companies
- Financial sector: Deutsche Bank's office employing 1,200
- Local & National Government
- The economic changes that took place
- 1) Industrial Revolution (late C19th to 1960s) ECONOMIC GROWTH
- 'workshop of the world' & 'city of a thousand trades'
- Until the 60s Birmingham was one of the fastest growing economic in the UK
- Un employment below 1%
- 1900-1950s: Longridge car plant opened in 1906 creating thousands of jobs
- Inward investment from Dunlop Tyre (employed 10,000 people)
- 2) Globalisation & Structural Economic Change (1970s-90s) DECLINE
- Deindustria-lisation (1970s-80s) resulted in 200,000 job losses
- 1982: unemployment reached 19% creating cycle of decline
- Outsourcing of TNCs to LIDCs because cheaper production/ labour cost: closure of the MG Rover Longbridge factory in 2005 (6000 jobs lost)
- 1973 'OPEC crisis'; plunged the UK into a recession as oil prices increased overnight = unemployment = outsourcing to LIDCs
- Deindustria-lisation (1970s-80s) resulted in 200,000 job losses
- 3) Recent Re- generation (2000-2017) ECONOMIC GROWTH
- Regeneration has revitalised the local econ and attracted inward investment
- In 2016 the economic output was £23.3 billion
- 'Flagship Projects': retail (Bull Ring), gives the local economy a boost. Birmingham ranked 3rd best retail centre in the UK
- Cultural/ Sports re-branding: Investment into the Int Convention Centre, Symphony Hall or NIA = multiplier effect = cultural events stimulate wider economy (hotels, restaurants)
- Regeneration has revitalised the local econ and attracted inward investment
- 1) Industrial Revolution (late C19th to 1960s) ECONOMIC GROWTH
- Characteristics of the place before the economic change
- Socio-economic
- Birmingham's economy during the Industrial Revolution to 1960s was focused on manufacturing (36% in 1900) and 29% in tertiary
- Demographic & cultural
- White and homogenous
- Strong kinship ties until 1960s: same communities, less transient
- White and homogenous
- Environ-mental
- High levels of atmospheric pollution and smog
- Canals and rivers experienced high levels of water pollution
- Socio-economic
- Role of players involved in driving change
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