Want to Avoid Detroit's Fate? Diversify Your Economy

"Nearly all the rich world’s industrial cities fell on hard times between 1950 and 1980," says The Economist. Why did some recover while others failed? A new paper argues that skilled workers and a diverse economy are key to overcoming adversity.

1 minute read

August 16, 2013, 5:00 AM PDT

By Jonathan Nettler @nettsj

"The Motor City is an extreme example of a decline that has beset industrial cities across America’s Midwest and northern Europe," notes The Economist. "Nearly all the rich world’s industrial cities fell on hard times between 1950 and 1980, but some, including Boston, New York and London, rebounded soon after. Hardscrabble places like Baltimore, Pittsburgh and Liverpool have also enjoyed revivals."

"In a new paper [PDF] Gilles Duranton of the University of Pennsylvania and Diego Puga of the Centre for Monetary and Financial Studies in Madrid suggest that a pool of skilled workers and a diverse economy are among the best predictors of long-run success. Such characteristics offer cities the best hope of stumbling on new sources of increasing returns to scale."

FULL STORY: Down towns

Thursday, August 15, 2013 in The Economist

Community / Economic Development World Michigan Economic Diversity Skilled Workers Detroit Baltimore Pittsburgh Decline View More

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Start Learning

Advertise with us

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.