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4.a - One country or region impacted by structural economic change
Terms in this set (15)
- Birmingham is a large metropolitan region
It is at the heart of the West Midlands conurbation
- Population of 1.1 million in 2014, which made it the 2nd largest city after London
- From the 1950's onwards there was international immigration in the inner city areas. These immigrants were mainly from South Asia, The far east and the Caribbean.
- In 2011 Birmingham was 53.1% white British in comparison to the whole country which was 79.8%. -It also was 13.5% Pakistani which was much higher than the national percentage of 2.1.
- Led to Birmingham becoming a cosmopolitan city which was then reflected in the landscape as mosques, temples etc were built.
- Immigrants clustered in areas of cheap housing with good employment and the growing service sector required a large range of low skilled jobs such as cleaners and taxi drivers.
- The city also became more diverse as ethnic clothing and fabric shops and national banks were added.
-The city also has a youthful population compared to the majority of the UK with 38% being 24 or younger compared to the equivalent figure of 31% for the rest of England.
'City of a thousand trades'
- Medieval Birmingham consisted of about half a dozen streets focused on the parish church and the market.
-Metal working was already established, and lay to the west and supplied the raw materials for Birmingham's metal working trades
- In 1563, the town was swarming with inhabitants and trade was booming
- By the early 1700s Birmingham's population had grown to 15,000
- Many had migrated from rural areas in search of employment
- Different housing areas were developed based upon socio-economic status
- Matthew Boulton established the first factory in the world in 1761. 'Soho Manufactory' brought 700 employees to complete industrial processes
- Machines for processing cotton were vested in Birmingham in the 1730s and 1740s
- Electro-plating, oxygen and the pneumatic tyre invented and first used in Birmingham
- In 1775 revolutionising the production of more efficient steam engines
- 25% of British manufacturing exports originated in Birmingham
Industrial revolution cont.
- There was extraordinary growth in the 19th century
Gun, jewellery, button and brass industries dominated. Other metal manufacturing industries and all the industries needed to supply a growing population.
- Cadbury set up their Bourneville factory and model village for the workers on the southeast outskirts of the city
- Lloyds and Midland banks were founded in Birmingham during the mid 19th century.
- Transport infrastructure developed hand in hand with industrial growth- the London to Birmingham railway was opened in 1838
Who were the seven players involved in Birmingham's 1970's economic decline?
-LIDCs and EDC
-Foreign Based TNCs
- Trade Unions
- Arab-Israeli Conflict (1973 oil crisis)
Acts involved in Birmingham's economic and physical restrictions.
1. Distribution of Industry Act 1945, aimed to prevent industrial growth in "Congested Areas".
- The government saw Birminghams growth As a damaging influence on the stagnating economies of the North of England, Scotland and Wales, and saw its physical expansion as a threat to its surrounding areas. (Distribution of Industry Act.)
2. West Midlands Plan - reduce Birmingham's population
- A target population for 1960 of 990,000, far less than its actual 1951 population of 1,113,000.
This meant 220,000 people would have to leave the city over the next 14 years, that some of the city's industries would have to be removed, and new industries must be prevented from establishing themselves in the city.
3. Control of Office Employment Act 1965
Industrial Decline- oil crisis
- 1950s-1960s unemployment below 1%
- 1970-1983 earnings fell from the highest in the UK to almost the lowest of any region
- In 1982 unemployment 19.4%
- Birmingham was caught up in the global recession of the 1970s, in which the oil crisis of 1973 was very significant
- Arab-Israeli war, Israel supplied the oil for most Western countries at the time and they were using their oil as a weapon.
- This meant that the supply to the Western world reduced greatly resulting in the price of oil increasing dramatically.
- was a catastrophic shock to the global economic system
Industrial Decline- Industries
- Birmingham's industries began to suffer due to increasing competition overseas from TNCs based in countries with lower production costs (LIDCs, EDCs)
- In 1970 the British vehicle industry was in decline, despite this car ownership levels were rising. This is because foreign-based TNCs, especially Japanese car manufacturers, began to make cars. People saw their cars as more reliable and better value for money
- Strikes were frequent during the 1970s and both management and the unions were people involved in the decline of the industry
- As a result of this Birmingham became less attractive to potential investors, who would have brought about significant change.
- Birmingham's manufacturing industries had been made up of small and medium sized enterprises, and during the industrial failure many of them were demolished.
Decline - government
- Government propped up the automotive and shipbuilding industry, but 1.7m jobs were still lost between 1971 and 1981.
- Protection of these industries made the inevitable switch to the service industry even worse, as the government failed to implement new strategies to cater for growth of the knowledge economy.
- Birmingham City Council was crippled by the National Government during the 1970s.
- Planning, development and municipal functions were increasingly dictated by national policy and legislation as government became increasingly centralised around London; council finances dominated by central government subsidies; institutions like gas, water and transport taken from the city's control.
-During the WW2 5000 houses were destroyed in Birmingham and many more were damaged
- In the post-years Birmingham had 110,000 sub-standard houses
- In the 1950s-1960s 400 tower blocks were built
- 1945-1970 over 81,000 new dwellings were constructed, the accommodation was significantly better then the old slums
-The central zone was to a large extent cleared of residential land-use and people relocated to the outskirts
- As they economy became more service orientated, flows of commuters increased from outer areas into the centre as more services were located there
- National and local government established of a green belt around the city to restrict outward expansion.
- Birmingham's socio-economic profile showed many signs of the industrial decline and urban decay well into the 20th century.
- However, a variety of players are currently involved in trying to reposition Birmingham as a forward, modern city, playing a key role on both local and international scales.
- The Birmingham development plan guides decisions on development and regeneration in the city up to 2031. It deals with how and where new homes, jobs, services and infrastructure will be delivered and the type of place Birmingham is likely to become.
The role of planning and flagship developments
- Planning has been essential in bringing about physical change as it was hoped this would act as a catalyst for more socio economic changes.
-Public spaces have been developed and 19th century buildings have been restored.
- A flagship development, partly funded by the EU was the intervention convention centre and symphony hall opened in 1991. The convention centre (Now barclaycard centre) attracts international and national conferences. It is a key example of the multiplier effect due to the hotels, restaurants etc that benefit from visitors and their spending.
- The national indoor arena attracts large sporting events such as the 2003 world indoor athletics championships.
- Three other important players are the cities universities with a combined student population of 50,000. This not only contributes to the young profile of the city but also they bring wealth to the area. They employ people with income to spend, this is in addition to the spending of the students and students provide a market for lots of goods and services.
- As a post industrial city, Birmingham has been improving its service provision. The bull ring redevelopment of the 1960's was Europe's first major indoor shopping centre and it contributes to the city's status as one of the country's leading retail centres.
- The environment of the city centre has also been upgraded significantly. Streets have been pedestrianised and decorated alongside the regeneration of the previously ignored canals which have helped economic revitalization.
- HS2 rail (see other slide)
The role of Government
- The local gov is playing essential role in promoting changes. It promoted the city region, attracting investment which brought about the construction of the NEC and expansion of the airport. These developments have attracted the international conference and exhibit market which has led to significant money in the region.
- National gov schemes such as city challenge and the single regeneration budget were used in the late 20th century and helped places access the funding they needed for development.
- Birmingham heartlands development corporation was established in 1992 to bring regeneration to old industrial areas (i.e Nechells).
- In 1999 the New deal for communities scheme provided broadband access in parts of the inner city and set up work experience programmes.
- The city council has a european and international affairs team who seek to promote Birmingham beyond the UK and gain EU funding, £235 million has been secured from the EU social investment as a result and money from the European regional development fund has gone into projects i.e improving run down social housing.
The role of transport
- Birminghams Transport infrastructure has seen dramatic changes during the last twenty years. The main railway station, new street, has had £700 million invested. This involved network rail, private developers and retailers such as John lewis creating an area called grand central. Shops, cafes, offices and restaurants have created 1000 jobs.
- The tram system was scrapped several decades ago but tram and light rail systems have made a comeback and further expansion is taking place.
- HS2 is the governments flagship transport development that will directly impact Birmingham, Phase 1 will link London and Birmingham. It will bring further socio economic change to Birmingham as it should stimulate growth in employment, and by making Birmingham closer to London, a more attractive proposition for investment.
- Birmingham is also the hub of the national motorway network.
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