1.3.4 Economic Change and Social Inequalities in Deindustrialised Urban Places Flashcards
• Consequences of the loss of traditional industries in urban areas including the cycle of deprivation, social exclusion, and lower pollution levels • Consequences of loss of secondary industries in urban areas including unemployment • Government policies in deindustrialised places including retraining, economic (local to global), environmental policies and stimulating tertiary growth and investment by foreign MNCs
1
Q
Where is the Lee Valley?
A
- East London
- Follows the River Lee
- Adjacent to the London Docklands
2
Q
Why did the Lee Valley deindustrialise?
A
- Largest manufacturing centre in Europe until the 1980 dock closures
- It was no longer a good place for import and export
- Factories moved away
3
Q
What is the cycle of urban decline following deindustrialisation?
A
- Industries and business reduce workforce and relocate
- People are unemployed so have less money to spent and move away for new jobs
- Derelict waste land and residential properties become abandoned
- Local shops and services get less income so have to close
- Some turn to crime to supplement income
- People become depressed so have lower aspirations and wage demands
- Environmental and building quality decline as less money into area
- Low investor confidence in the area
4
Q
How did the employment data change in the Lee Valley?
A
- Decreased between 1981 and 2001
- Largest number of people (65,000) employed in 1981
- Lowest in 2001 with 23,000 employed
- Decreased by 42,000 (66%)
- 2/3 of jobs were lost
5
Q
What is the Lee Valley spiral of decline?
A
- As soon as individuals improve their status, they tend to move away
- Only to be replaced by unemployed migrants
- The area is therefore in a constant spiral of decline with stagnant growth
- Few businesses are attracted due to poor human resource
- 70% of unemployed people had a poor attitude to work, 66% poor numeracy and 65% poor literacy in a 2008 MORI report
- Total crime is 40% higher than the London average
6
Q
Where is the London Olympic site?
A
- East of London
- North of the River Thames
- Surrounded by Newham, Tower Hamlets, Hackney and Waltham Forest (some of the poorest boroughs in London)
7
Q
What is urban decline?
A
The deterioration of the inner city often caused by a lack of investment and maintenance (often accompanied by a decline in population and decreasing economic performance and unemployment)
8
Q
What is a brownfield site?
A
Land that has previously been built on
9
Q
What is sports-led regeneration?
A
Using a major sporting event/stadium as a catalyst to speed up rebranding/regeneration
10
Q
Why did Stratford need economic regeneration?
A
Social:
- Highest proportion of one parent families
- 1 in 4 houses are overcrowded
- Least amount of qualifications in London as 50% leave school with no GCSEs
- Life expectancy is 7 years shorter in Stratford than in Westminster (reduces by a year for every stop on the Jubilee line)
Economic:
- Between 1950 and 1975, 40,000 jobs moved to lower wage economies
- When Docks closed, 100,000 jobs in manufacturing went in East London
- Tower Hamlets has the highest unemployment but an average salary of >£100,000 (inequality)
- Newham/Stratford is the second poorest borough in London with an average salary of £20,000
Environmental:
- Land around Stratford is contaminated with heavy metals, toxins and oil
- Brownfield, derelict sites
- Canals and rivers used as a dumping ground
11
Q
What was the organisation which led the regeneration?
A
The Olympic Delivery Authority (ODA)
12
Q
What was done to boost/regenerate Stratford?
A
- 500 acre Olympic Park with stadium, aquatic centre, velodrome, Olympic Village and Eurostar station
- 35% of Olympic Village became social housing
- Government reduced the size of the park to decrease numbers of people having to relocate
- Media centre built to then become Here East (1 million sq feet) which is a high tech, well connected building
- 50,000 new jobs in the park after the games
- Construction college built
- Streets of Growth provided a ‘Transition into Construction’ programme to provide training
- Green Way in Lee Valley Regional Park (parkland from Stratford to Hertfordshire) was built and cleaned of pollution from sewage and dumped waste
- Pylons buried underground to improve visual appearance
- 90% of material came from demolished buildings/derelict land
- Newts were moved before re-imaging started
- Washed soil to remove toxins and heavy metals
13
Q
What were the issues caused by the regeneration surrounding the Olympics?
A
- 250 businesses demolished and had to relocate, which was difficult due to increasing property prices (e.g. Forman and Son salmon smokers)
- Demolished housing estate in Clays Lane, which was a low cost, social housing estate that was home to 450 residents
- Residents were provided £8,500 in compensation but housing costs in new East London were double their previous rent
- Not engaging residents and communities
14
Q
What were the pros of the redevelopment of East London?
A
- 40,000 new homes
- 50,000 new jobs
- Projects to involve communities like Streets of Growth redoing the Devons Estate football pitch with £50,000 from Olympic fund
15
Q
Where is Canning Town?
A
3km east of Canary Wharf (outside EZ)
16
Q
What are the economic issues in Canning Town?
A
- Expensive housing
- Low income
- Average household income is £23,000 and average income per person is £10,000
- Only 37.6% of people are in full time work
- Council tax receipts are low so there is less money to spend on public services
17
Q
What are the social issues in Canning Town?
A
- Poor health (9.1% limited by long term illness/disability and 20.7% by general poor health)
- Most housing is social housing so contact hypothesis is not happening
- Low educational achievement as over 43% of working-age adults have no qualifications
- 21% of people are concerned about crime
18
Q
What are the environmental issues in Canning Town?
A
- Poor visual appearance as mostly terraced housing
- Front gardens are covered in rubbish
19
Q
What is territorial/social stigmatisation?
A
People/employers assume that people from deprived places may have poor education, poor work ethic, poor health and connections to crime
20
Q
What does deprivation mean?
A
Lack of access to certain key services (e.g. health, education, employment, income)
21
Q
What does multiple deprivation mean?
A
When people suffer from two or more deprivations
22
Q
How does the deprivation in Canning Town compare to Canary Wharf?
A
Canning Town:
Index of Multiple Deprivation = 10% most deprived
Crime =10% most deprived
Health = 20% most deprived
Education = 40% most deprived
Canary Wharf:
Index of Multiple Deprivation = 10% least deprived
Crime = 10% least deprived
Health = 20% least deprived
Education = 10% least deprived
23
Q
What does social exclusion mean?
A
Being outside or marginalised from mainstream society, its resources and opportunities
24
Q
What is social exclusion the result of?
A
- Wealth
- Ethnicity
- Gender
- Sexuality
e.g. Homeless people are excluded from work/employment, healthcare
25
What does exclusion result in?
- Social stigmatisation as people from council estates with high unemployment rates get stigmatised as 'shirkers' or 'benefits cheats'
- Some council estates are 'no-go' areas due to gang crime and mental health issues
- Normally areas where red-light districts are which creates a negative image
26
What are the changes in levels of emissions in the UK?
- SO2 emissions declined by 97% and nitrogen oxide emissions decreased by 72% between 1970 and 2016
- Due to a loss of secondary industry (particularly heavy industry), the switch away from coal and a decrease in traffic congestion
27
What are the challenges facing rural areas as a result of the decline in primary industry?
- Reliant on jobs in tourism which are low paid and seasonal
- Unemployment which leads to low incomes
- Lack of threshold population to maintain vital services as people move away
- Cost of housing increases as it becomes a popular tourist spot
28
What does threshold population mean?
The minimum number of people required to maintain a service in an area (e.g. primary schools, post offices, shops, banks)
29
What are the population trends in Cornwall?
- UK's fastest growing population
- Trends have combined to increase Cornwall's dependency rates
Natural decrease:
- Attracts lots of retired people (due to more relaxed/higher quality life)
- Creates an age imbalance and higher death rate than most of UK
High inward migration:
- Mostly of 50-59s preparing for retirement and families
- In 2005, half of students in Cornish secondary schools weren't born in Cornwall
- Families seek a better quality of life
Out migration:
- By 16-29s who go away to university and stay away permanently
- Known as the 'brain drain'
30
What is the economic deprivation like in Cornwall?
- Lowest average income per person in England and Wales, making it England's poorest county
- Average full-time income in 2008 was £21,522 (25% lower than the UK average)
- Geographically isolated and poor infrastructure (no motorways, slow rail service and only one airport) so difficult to attract investment as transport costs are high
- Tourism is the biggest industry and directly employs 25% of Cornish people
- Tourism jobs are seasonal, part-time, poorly paid and highly dependent on visitor numbers/weather
- Only a third of profits stay in Cornwall
- High proportion of people are on low incomes which results in low spending power
31
What was the decline in traditional industries in Cornwall?
- Until 1980s, primary employment dominated
- Mostly farming, fishing, tin mining and quarrying china clay
- All sectors declined so year-round, skilled and reasonably paid jobs were lost
32
What are the housing problems in Cornwall?
- Housing is unaffordable so young people/low income earners are priced out the market
- 3 areas of Cornwall make it into the Joseph Roundtree Foundation's list of the 40 most unaffordable areas in the UK
- Average home in Cornwall in 2010 cost 8x the average Cornish annual income (vs 6x across rest of England/Wales)
- High owner occupation (72%) and less social housing (12%)
- Need for social housing is increasing as 2/3 of those who don't have a house can't afford one
- 'Right to Buy' scheme in 1980/90s reduced amount of social housing available
- 5% of housing are small cottage properties purchased as holiday lets/second homes
33
What is the service and welfare provision like in Cornwall?
- Services are vulnerable
- Village store and petrol garage in Gorran (South Cornwall) closed and was redeveloped into housing
- Many Cornish schools are too small and uneconomic
- Sixth form provision is mostly provided by Truro College as few schools have post-16 provision
- Some students have to travel 3h to and form daily
- Most hospital care is provided by the largest hospital in Truro but access is very difficult for those without cars
- St-Martin-in-Meneage primary school (Lizard peninsula) closed as it only had 12 students so they now have to travel over 30min to the next nearest school
34
Why does second homeowners and retirees moving to rural areas cause the primary schools to close?
- Lower birth rate so fewer children
- Fewer children as demographic shifts
- Less tax so school's upkeep can't be paid for
- Threshold population not maintained
35
What are the International European Structural and Investment Funds?
- A umbrella of different funds that tackle deprived regions
- 2 types: European Regional Development Fund (ERDF) and European Social Fund (ESF)
36
What are the objectives of the ERDF?
- Reduce economic disparity between regions
- Stimulate economic activity
- Support projects that promote employment and access to training
- Improve infrastructure
37
How does the ERDF achieve its objectives?
- Promotes projects that support environmental restoration
- Education and skills projects
- New transport infrastructure
- Tackling digital exclusion through better broadband, 4G, 5G and digital skills
38
What are the three types of regions that require support in the UK
- More developed areas that have seen a decline in secondary industry e.g. Leeds, Yorkshire
- Areas that are naturally disadvantaged by remoteness/mountains and are sparsely populated e.g. Outer Hebrides, Western Islands of Scotland
- Less developed areas e.g. Cornwall, SW England
39
How did the ERDF help digital enterprises in Leeds City Region?
- Provided £4.23million (half of total project value)
- Offering support to SMEs to improve digital capabilities so they can scale up and improve productivity/awareness
- Helped Arville Textiles by awarding £9,000 to fund new digital systems which will streamline internal communications and increase efficiencies so they can grow and create new jobs
40
How did the ERDF help Loch Carnan Community Wind Farm?
-Three turbine development situated at the South of Loch Carnan
- Development cost £11.4 million, which the EU funded half of
- Profits are reinvested to benefit the local community
- Done as the area lost traditional sheep farming and crofting
41
How did the ERDF help the Cornwall Local Energy Market?
- Provided £13 million of a £18.74 million project
- Electricity grid is Cornwall is heavily constrained (too much generation and not enough network)
- Designs and builds a local marketplace platform
- Provide flexible demand, generation and storage
- Upgraded cables and provided batteries to store energy
42
What are the aims of the ESF?
- Tackle poverty and address skills shortages
43
How do the Enterprise Zones (EZs) help areas?
- Set up by the Thatcher government in the 1980s
- Successful at creating jobs but sometimes fail to consider the needs of local people
44
How successful was the Swansea EZ?
- EZ in Swansea is the second best area for new job creation, after the city center
- Created between 6,000 and 12,000 new jobs per year through tax breaks and relaxed planning regulations
- Aim to attract FDI
45
What is Foreign Direct Investment (FDI)?
An investment made by a foreign company based in one country into a company based in another country
46
Where does FDI usually come from?
MNCs
47
What areas attract the most FDI?
- Skilled workers as they require less training and investment
- Nissan opened their European factory in Sunderland UK as it has a history of engineering industry so the workforce needed minimal training
- Growing consumer spending
48
What is FDI like in the UK?
- Attracts among the highest FDI receipts of any country
- Creates 85,000 jobs per year
49
What are some examples of FDI in the UK?
- Nissan in Sunderland (6,000 jobs and £5 billion investment)
- Rolls Royce in Bognor (£100-150 million investment and 200-300 jobs)
- Shard in London (12,500 jobs)
- Battersea Power Station (Malaysian investment) in London (17,000 jobs)
- Ethiad Stadium (UAE investment) in Manchester (3000 jobs)
- Cray Computers in Bristol
50
What is the relationship between FDI and deprivation?
- FDI tends to go to areas with the best skilled workforce and best infrastructure, not deprived areas
- Unless they are given incentives
51
Why is FDI an example of interdependence?
- MNCs get to use trained British workers and British infrastructure
- In return, Britain gets jobs and investment
