Economy is determined by dynamic processes. Structural change in the Ruhr Area is symptomatic for Europe’s manufacturing regions. Grown on the base of heavy industry during industrialisation, a consumption and productivity crisis influenced the whole economy of the region. High unemployment rates and the closing down of factories and mines recoined the image of the area. Today structural change led the region towards high-tech, culture and leisure facilities. Structural change has consequences on workers, inhabitants and the region’s economy as a whole. Impacts can be either negative or positive. Planners must keep these consequences in mind while planning a new project for structural change. Oberhausen’s structural change was really successful. The “Neue Mitte” created 10000 new jobs, Oberhausen became a growth pole for consumption and leisure facilities. Nevertheless new problems arose. Purchasing power that was attracted by the CentrO has had negative impacts on cities in vicinity and also on the city centre of Oberhausen itself, which results in a Zero-Sum-Game.
The regional structural change framework shows that supply and demand factors are the starting points of a regions economic performance. This performance is influenced as well by institutional factors as by the grade of diversity of the economy. In the Ruhr Area and in Oberhausen local governments first acted too late to absorb the decline of the industry (constraints), then they set up projects to emphasize the change (incentives). The “Neue Mitte” shows that structural change needs diversity, otherwise a new dependent mono-structure develops, which is again vulnerable and likely to break down.
Responsibility, diversity and balance are the features of successful structural change. Of course, economy is not all about people in the calculations of companies, but without people there would simply be no economy. Change must focus on the needs of people; otherwise it is development “in the middle of nowhere”.
Table of Contents
I. Introduction and Methodology
1. Introduction
2. Methodology
II. Structural Change for the better?
1. Structural Change in the Ruhr Area
1.1. Historical Development
1.2. Social Consequences
1.3. Image
2. Structural Change in Oberhausen
2.1. Historical Development
2.2. Neue Mitte
2.2.1. Problems of structural change in Oberhausen
2.2.2. Coping with negative developments
2.3. Regional Structural change framework
3. Critical view on structural change
III. Conclusion
Research Objectives and Core Themes
This paper examines the impact of structural change on specific regions, focusing primarily on the Ruhr Area and the city of Oberhausen. The overarching research question addresses whether structural change inevitably leads to beneficial outcomes for all involved stakeholders or if it can create new economic vulnerabilities.
- The transition from heavy industry (coal and steel) to service and high-tech economies.
- The effectiveness of regional policy and institutional interventions in managing economic decline.
- The socio-economic impacts of the "Neue Mitte" project in Oberhausen.
- The critical importance of economic diversification to avoid new "mono-structures."
- The role of image campaigns and place marketing in post-industrial urban development.
Excerpt from the Book
2.2. Neue Mitte
Oberhausen’s industry was near to extinguished and the economic boom in Germany which started 1984 needed five more years to reach the Ruhr Area – still it was not as high as in the rest of Germany. The local government wanted to create an image as an attractive economic and residential area: The concept of the “Neue Mitte” was born. Because of the close down of the August-Thyssen-Hütte (GHH) there was waste land in the middle of the city. All in all 98 ha were ready to be used for something new. The plans divided the area as following: shopping and leisure facilities 41 ha, industry 12 ha, business and residential are 17.2 ha, public transport 2.6 ha, supply systems 0.1 ha, “Grünanlagen” 5.2 ha, forest 1.6 ha. The “Neue Mitte” should not bee seen as a new part of the city, instead as a connection of the three old parts of Oberhausen.
But there were two critical questions about the whole project: Firstly, the project is a tremendous interruption in regional structures. “The look-out auf 10000 new jobs should not make blind about possible problems. Secondly, the focusing on leisure and consumption. People must have incomes, before they are able to spend money and if there is only a limited amount of money on those things, what will then happen to the existing structures?
Summary of Chapters
I. Introduction and Methodology: Outlines the historical context of European economic cooperation and defines the research scope regarding structural change in the Ruhr Area, supported by a theoretical framework of regional economics.
II. Structural Change for the better?: Provides an in-depth analysis of the Ruhr Area's transformation and a specific case study of Oberhausen, evaluating its transition from heavy industry to a service-oriented economy via the "Neue Mitte" project.
III. Conclusion: Synthesizes the findings, emphasizing that successful structural change requires a balance of diversity and social responsibility to prevent the development of new, vulnerable mono-structures.
Keywords
Structural Change, Ruhr Area, Oberhausen, Neue Mitte, Industrial Decline, Economic Diversification, Service Economy, Regional Policy, Place Marketing, Unemployment, Socio-Economic Impact, Urban Planning, Sustainability, Innovation, Growth Poles
Frequently Asked Questions
What is the core subject of this paper?
The paper explores the process of structural change in the Ruhr Area, using the city of Oberhausen as a primary case study to investigate the transition from industrial manufacturing to service and leisure economies.
What are the main thematic fields covered?
Key themes include industrial history, the role of institutional policy in economic planning, the social impacts of unemployment, the importance of place branding, and the necessity of economic diversification.
What is the primary research question?
The primary research question asks what the specific impacts of structural change are on a determined area and whether such changes consistently result in benefits for all stakeholders.
Which scientific methodology is applied?
The study utilizes a regional structural change framework based on the concept of "creative destruction," analyzing the interaction between supply, demand, and institutional factors.
What is discussed in the main body of the text?
The main body examines the historical background of the Ruhr Area, details the specific urban development project "Neue Mitte" in Oberhausen, and critically assesses the outcomes, including risks like the creation of new mono-structures.
How would you describe the key characteristics of this work?
The work is characterized by its critical examination of post-industrial development, focus on institutional shortcomings, and emphasis on human-centered planning in economic restructuring.
What is the "Zero-Sum-Game" dilemma mentioned in the analysis?
It refers to the concern that while a large project like the CentrO in Oberhausen attracts jobs and purchasing power, it may simultaneously drain those resources from the existing city center and neighboring cities.
Why is the "O-VISION" project significant to the study?
O-VISION is significant because it represents the local government's attempt to correct the deficiencies of the "Neue Mitte" by fostering a more diversified, health and technology-oriented economic base.
What lesson does the author emphasize regarding "living museums"?
The author argues that while preserving industrial heritage is important for identity, simply transforming old sites into "living museums" is insufficient to solve structural economic problems.
- Quote paper
- Hannah Cosse (Author), 2005, "Neue Mitte" in the middle of nowhere - Structural Change for the better?, Munich, GRIN Verlag, https://www.grin.com/document/65881
