4a - Places are influenced by a range of players operating at different scales Flashcards
List the different players involved in driving economic change:
x6
- National Gov
- International Gov
- TNCs
- Local Gov
- Local Community Groups
- NGOs
Role of players in driving economic change: International Gov
incl. AO2
- eg EU - influences economic change via grants for infrastructure development
- AO2 - large scale change but cant influence individual countries
Role of players in driving economic change:
National Gov
incl. AO2
- has departments and agencies responsibly for strategic planning eg education and training, transport links and environmental management
- AO2 - successful = more funding to create change
Role of players in driving economic change: TNCs
incl. AO2
- self employed across all sectors of the economy - aim to generate money and make profit on I
- their arrival/departure bring about change for an area
- affected by gov decisions
- AO2 - impact - can take away and bring opp
Role of players in driving economic change: NGOs
incl. AO2
- tend to have a particular focus
- can be small local groups or multinational
- eg national trust - large landowners (focus - eg conservation)
- AO2 - can only create change in a small particular area = not large scale
Role of players in driving economic change: Local Government
incl. AO2
- similar national gov responsibilities - planning and implementation on a local scale
- tries to stimulate econ growth, sustain employment and create new jobs, and improve the environment
- responsibility for what is/isn’t allowed through the planning process (what can be built)
- local gov set up initiatives for local transport, housing exc.
- AO2 - less successful as they can be overruled by larger gov
Role of players in driving economic change: Local Community Groups
incl. AO2
- concerned about their immediate area
- vested interest in the area (where they live) - any change matters
- form pressure groups or conduct local surveys
- AO2 - only small scale influence - little change
EXAMPLE: Detroit
What was the place like before change? - think of this in socioeconomic, demographic, cultural, environmental
- 4th biggest city in the USA
- was primarily white pop
- African pop doubled from 1910-1930 (thriving)
- vibrant wealthy city - $3 per h
- Lots of TNCs - Car manufacturers (Ford, Lincoln, Chrysler)
- job opp at high pay - ford alone employed 90k
- lots of econ active factory workers - low skilled middle/working class jobs
- development of factories - increased pollution
EXAMPLE: Detroit
What was the change and who was involved?
- SEC - secondary sector (with lots of job opp and high pay) to a large loss of jobs in the secondary sector (150,000 jobs lost)
Supply:
The car manufacturers:
- decided to move factories out of the city to remove unionised labour in central Detroit = unemployment in centre - esp in black community
- car manufacturers I in automation - less labour required
- 3 big companies in Detroit failed to modernise and adapt to the changing car market = sales fell and less production - manufacturing inefficiently
- 1980 - unemployment in black suburbs was 45%
- poor labour relations - treated workers badly
Oil Crisis:
- 1970s = increased petrol prices, drivers look for more fuel efficient models so ford, GM and Chrysler lost sales
Globalisation and TNCs:
- competition from Japanese car producers eg toyota = took sales away. There cars were smaller and more fuel efficient and had effective production, Toyota shifted production to USA - located in low wage south rather than Detroit
City Government:
- made bad decisions and poor investments
- borrowed too much money = bankrupt city
- only focused on car industry - overreliance
Demand:
Customers:
- when D fell, companies had to move elsewhere
- buying competitors cars eg Japanese
EXAMPLE: Detroit
What impacts did it have on the place and people? - think of this in socioeconomic, demographic, cultural, environmental
- pop decreased to less then 1m
- debt of $20bn
- Built environment - derelict, smashed, broken and urban deprivation
- social and cultural tensions - rioting
- crime rates increased - drug use, 600 people were shot to death each year, murder capital
- ‘white flight’ - movement of white pop to the suburbs (aftermath of riots) = divided demographic
- only 18% adults had a collage degree = after loss of car industries they couldnt get new jobs - structural unemployment