4.4 Priorities For Regeneration Flashcards
What is Myrdel’s Model of Cumulative Causation (MMCC)
A positive multiplier effect starting with new industry or the expansion of a firm
- creates jobs for highly skilled workers
- they move in increasing demand for services
- their quality improves so more people with higher salaries move in
- income from taxes allows growth of the tertiary and quaternary sectors
- more businesses move in and more innovation occurs
- clustering and agglomeration take place
What is clustering and agglomeration
Clustering - similar industries (eg competitors) move into the area
Agglomeration - related industries (that may rely on each other eg suppliers) move into the area
What defines a successful area
- high levels or employment and income
- high levels of inward migration
- low levels of deprivation
What is vertical intergration
Refers to companies ability to control stages of production and distribution of its products and services
- owning aspects of the supply chain allows cheaper production and higher quality
- not common in tech industries
What is horizontal integration
Refers to a company expanding operations by merging with or taking over another company in the same industry
- gain competitive advantage
- increased market share
- common in places like Silicon Valley
Why has San Francisco grown
- rail links and airports make it easily accessible
- good unis (Stanford, Berkeley, etc) allows highly qualified workers many employment opportunities
- Stanford industrial park
- cumulative causation
- tech ecosystem (Silicon Valley) home to Google, Netflix, Facebook
- top of global start up ecosystem ranking
How is San Francisco succucessful
- low unemployment rate of 3%
- average income of top 1% is $3.6 million
- 190,000 immigrants gain long term work there annually
- GDP of $180 per annum
What are the costs of success
- increased housing demand and pricing
- increased crime
- inequality
Cost of success in San Francisco
- average house price of $1.25 million
- housing supply can’t keep up with inward migration leading to homelessness
- nearly 40,000 people are homeless
- ## less use of public transport due to wealth impacts climate
Why does decline happen in urban areas
Deindustrialisation
- skilled locals have to leave the area to find work
- leaves unskilled workers and elderly
- high unemployment rates
Why does decline happen in rural areas
Decline in primary sector due to mechanisation
- young people move to urban areas for work
- leaves elderly, aging population
- services decline due to less demand
What defines an unsuccessful region
- high deprivation levels
- low employment rates
- low income
- high rates of outward migration
Why is Teeside (urban) unsuccessful
- unemployment is twice the national average
- average house price in 2015 was three times less than national average
- one third of school require improvement according to ofsted
Why is Redcar (rural) unsuccessful
- SSI Steelworks closed
- over 3000 jobs were lost in the plant and supply chain
- loss of activity on high street - described as a ghost town
- high location quotient (highly concentrated industry)
- took 7 years to demolish the abandoned plant due to high cost meaning chemicals could get into the local ecosystem
What is Cloke’s Theory of Rurality and what are the stages
Urban to rural is a continuum
- extreme rural
- intermediate rural
- intermediate non-rural
- extreme non-rural