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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