Grant machines, instead of growth machines – What drives governance in shrinking German cities?
Matthias Bernt, 25/01/2013
ESRC Seminar „Small Cities in the Big Society“
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Outline
1. Theoretical background
2. Research Design
3. Responses to Peripherisation Sangerhausen
4. Conclusions
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Theoretical Background
Debate on “shrinking cities” (Osswalt 2005, Turok/
Mykhnenko 2007, Pallagst et.al 2011) which focuses
on adapting cities to a smaller population size
Concepts of „growth machines“ (Logan/ Molotch
1987), „entrepreneurial cities“ (Harvey 1989),
„neoliberalization“ (Brenner/ Theodore 2003),
„austerity urbanism“ (Peck 2012) which argue that
an orientation of city politics towards business
interests has become the dominant model of urban
development politics
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Core questions
How does
peripherisation impact
on governance?
Which are the
implication of
governance structures
for dealing with
peripherisation ?
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Shrinkage and Peripherisation in Sangerhausen
Deindustrialisation
• Complete collapse of copper-mining in 1990• Only minor reindustrialisation, and weak service
sector• 24,3 % unemployment rate (2008)
Out-Migration • Dramatic out-migration, especially of younger inhabitants
• Strong decrease of population figures from 33,500 (1990) to 23,400 (2005)
Stigmatisation • „capital of the unemployed“
Dependency • Strucutral budget deficit • dependency on federal and state allocations which
made up for 40-60 % of the budget in the last two decades
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Revenues in Sangerhausen‘s Municipal Budget (Euro/capita)
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Revenues and Expenses in Sangerhausen‘s Municipal Budget
Abteilung Regenerierung von Städten
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Major development projects
Economic develoment: designation of business parks
(early 1990ies), development of a rose-exhibition,
designation of an area for industrial development
(2008), highway access (2009)
Urban renewal: Renewal of the historical inner-city
(until 2001), demolition of housing oversupply (since
2001)
Territorial reform: incorporation of surrounding
municipalites with the aim of safeguarding the status
of a county capital (2007)
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Governance structures
Proactive development approach and highly
competitive development politics, yet targeted on
raising state ressources
Small group of decision-makers, mainly from different
levels of government
high relevance of „connections“ with decision-makers
at the state-level (intra-governmental networks)
Strong orientation towards long-term relations of
trust and reliability
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Interview SGH 12, former politician
„Here, in Sangerhausen, we were unified and we had a
strong will, so that not even the Green Party would dare
to disagree with the highway (plans). … and it was this
unity that made it finally possible to win … Money was
there, in the 1990s and so it had to be burned. And for
this you need the right plans, and you need the right
resolutions and you can‘t allow much room for manouvre.
If you start the whole thing with discussions and
arguments, it will only become an annoyance for
everybody. That‘s logical. Thus, only unity leads to
arriving at your goal.“
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Deindustrialisation and population loss have led to
an orientation towards upper state scales, with the
aim of „channeling“ ressources to the cities
This nexus impacts on local governance structures
with the result of „grant machines“, instead of
growth machines“
The actual functioning of these depends both on
national state support , and on local social capital
and networks
Chances for creative and strategic approaches are
limited
Conclusions:
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