Asena ERDEM & AySegül SİMSEK

OUTLINE • Introduction to Economic and Political Changes between 1930-1970 • 1970-1980s Trends • Industrial Districts • City Region • 1980-1990s Trends • High-tech District • Learning Region • Transformation of Urban Economy • 1990- 2000s • Sustainable Development • Resilience


Lack of Demand Economic Reasons & Psychological Effects Factories are closed More unemployed people

More Economic Problems & Firms are Closing Down

1930s KEYNESSIAN WELFARE STATE • Social Welfare Institutions are Established • Labor unions are redefined • Social security systems are established • Minimum wage levels are determined • Free health care and free education are provided

1930s – 1970s • Change in the production system • FORDIST (MASS) PRODUCTION • Standardization of labor • No variation is permitted • Certain quality for all people with the cheapest price • Taylorist division of labor • De-skilling of the worker • Emergence of middle income class

1930s – 1970s • Pure Kind of Standardization • Cultural Products & Media has played an important role • American lifestyle was sold with the movies and magazines • Rock & Roll was another product • People are encouraged to live in same style

Everything was for to continue the economic system even the lifestyles, media.

1970s CRISIS • Capitalist sides

• Increased Profit • New Investment • Produced More


• Post-Fordist Production • Flexible Production • Specialization of labor • Keynesian Institutions are failed • Labor unions are getting out of picture • Social security system declined • PRIVATISATION • All of the public functions of Welfare State was privatised

AFTER 1970s • No Restrictions Exist: GLOBALIZATION • Deregulation Measures • Free flow of goods • Free flow of financial capital • Flexible Production • Weak State • Increasing concern on social cohesion

• More concern about skilled labor in order to make the industries more competitive • Enterpreneurial Groups have become more important

INDUSTRIAL DISTRICTS The concentration of specialized industries in particular localities. A. Marshall (1922) initially envisaged a region where the business structure consists of small locally owned firms, making local investment and production decisions, a substantial part of whose trade is carried out within the district, often on the bases of long-term contracts, and trust, and where low economies of scale prevented the rise of large firms. Marshall based his Industrial District concept on: • Deep division of labor • External economies • Strong social background developing co-operative behaviors • Industrial atmosphere that mentioned before • Family businesses


Typically, it denotes a city, conurbation or urban zone with multiple administrative districts, but sharing resources like a CBD, labour market and transport network, such that it functions as a single unit. The term City Region first employed by urbanists, economists and urban planners in order to define ‘Not just the administrative area but also the hinterland of a recognizable city’. There are 2 types of city regions: One is the city region as dominated by strongly developed core (London, New York), other is the city region as polycentric geographic units (Randstad). City Regions of today are becoming increasingly polycentric or multi-clustered agllomerations in contrast to the past metropolitan regions. There are more than 300 city regions around the world with population greater than 1 million

AFTER 1980s • Change in the technology • Machines for reducing the labor in production process • New technology and new sectors • Scientists work for creating new technologies for long time • Reducing the cost of labor • Reduce wages • Regulations of labor market have changed • Production systems have changes • Government policies are applied to • Decrease the wages of labor • Decrease the power of labor and make them accept low wages • Enterpreneurs became powerful when compared to 1970s

HIGH-TECH INDUSTRIAL DISTRICTS High-Tech places are the industrial districts which brings entrepreneurs together by using innovation and high-technology that is supported by knowledge and information exchange. Main characteristic of High-Tech Industrial Districts are: • • • • • •

Firms and networks Small firms and large firms together is beneficial in several districts. Market, hierarchy and network Continuous evolution of structures Social capital Large firms operate as leaders

LEARNING REGION Regions are becoming focal points for knowledge creation and learning in the new age of global, knowledge intensive capitalism, as they in effect become learning regions. These learning regions function as collectors and repositories of knowledge and ideas and provide underline environment or infrastructure which facilitates the flow of knowledge, ideas and learning. In fact, despite continued predictions of the end geography, regions are becoming more important modes of economic and technological organization on a global scale.

TRANSFORMATION OF URBAN ECONOMIES Capital spending on informational technologies became greater than the industrial spending. With the advances in technology sectors as high-tech industries, finance, producer services, insurance, tourism became the new dynamic nodes of growth. The reflection of this situation becomes visible on the cities. In that sense, urban changes includes transformations within urban architecture, urban governance, spatial structure of urban area, functions of different cities with the international division of labor.

AFTER 1990s • • • • • •

Larger banks having central role in financial industry Diversification of production lines, mergers Transnationalization of economic activites Raquest of highly specialized skills in top level management Sharp resumption in innovations Rise of Eurozone



Urban Sprawl



Stockholm Brundtland Conference Conference





Johannesburg Rio Conference Conference

Increasing Concern on Climate Change

SUSTAINABLE DEVELOPMENT Sustainable Development stands for meeting the needs of present generations without jeopardizing the ability of futures generations to meet their own needs – in other words, a better quality of life for everyone, now and for generations to come. It offers a vision of progress that integrates immediate and longer-term objectives, local and global action, and regards social, economic and environmental issues as inseparable and interdependent components of human progress. PRIORITIES • Sustainable production and consumption • Climate change and energy • Natural resource protection and enhancement • Sustainable communities




RESILIENCE • The simplist definition of resilience is the capacity of a system to undergo change and still retain its function and structure after facing an external disturbans. In other words it has the capacity to change into a different system regimes withour crossing a certain treshold.

Two main reasons of the appereance of the term ‘Resilience: • Economic Reasons • Ecologic Reasons

PowerPoint Sunusu -

Flexible Production. • Specialization of labor. • Keynesian Institutions are failed. • Labor unions are getting out of picture. • Social security system declined.

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