European cities experience significant turnaround since 2000

Published: 11 October 2006

A report published today from the University of Glasgow's Centre for Public Policy for Regions shows that, after four decades of year-on-year decline, European cities turned the corner around the year 2000 and are now on a more positive growth trajectory.

A report published today (11 October) by Professor Ivan Turok and Dr Vlad Mykhnenko of the University of Glasgow's Centre for Public Policy for Regions shows that, after four decades of year-on-year decline, European cities turned the corner around the year 2000 and are now on a more positive growth trajectory.

This is consistent with the optimistic view of cities that has emerged recently in many countries, identifying them as sources of dynamism and creativity in advanced knowledge-based economies. They are also seen as increasingly desirable places for people to live, work, study and play.

The report is based on a detailed analysis of population trends in all 310 European cities with over 200,000 inhabitants. This is the first time such a comprehensive database has been assembled, taking 18 months to do so.

Professor Turok said: "National capitals and other large cities have enjoyed most success in recent years. Critical mass seems increasingly important to business growth in a more open global economy. Mobile investment and talent demand places with excellent connectivity, thick labour markets, attractive environments and high quality services."

One in three cities have experienced continuous growth over the last four decades. Most are in France, Spain and Germany. Most were never major centres of manufacturing, or they have adapted well to the industrial shakeout by developing advanced producer and consumer services.

A similar number of cities have had a sharp downturn since 1990 and are now actually shrinking. Almost all of these are in Central and Eastern Europe. According to Dr Mykhnenko, who comes from Ukraine: "Eastern European cities are suffering from out-migration to Western Europe and a serious fall in the birth rate. Industrial collapse lies behind many of their problems. Only the capital cities are still growing."

A third group of 'resurgent' cities are now growing after several decades of decline. Most are British cities, including London, Manchester, Leeds and Birmingham. They experienced severe deindustrialisation in the 1970s and 1980s but have bounced back by developing new economic functions in a variety of service industries (including financial, business and consumer services). They are now managing to attract and retain many more university students, young professionals and workers migrating to the UK from abroad.

Professor Turok said: "While we have found many reassuring signs of progress, the increasingly competitive global environment facing European cities - causing continuing industrial decline - makes it vital for local and national governments to redouble their efforts to strengthen economic development and job creation. Cities also need complementary 'people strategies' to improve the package of amenities and living environments in order to attract and retain all sections of the population."

Martin Shannon (m.shannon@admin.gla.ac.uk)


The research is funded by the Scottish Funding Council. For a copy of the report (or a PDF electronic file) and further information please contact the authors at: Centre for Public Policy for Regions, University of Glasgow

Tel: 0141 330 4121 or 0141 776 1657

I.Turok@socsci.gla.ac.uk

V.Mykhnenko@socsci.gla.ac.uk

First published: 11 October 2006

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