Old Industrial Areas Revitalization: Foreign Experience

DOI: 10.20542/0131-2227-2019-63-7-40-48

A. Mal’tsev (kafedra_meo_usue@mail.ru),
Ural State University of Economics, 62/45, 8 Marta / Narodnoi Voli Str., Ekaterinburg, 620014, Russian Federation;
A. Mordvinova (a.akinfieva@mail.ru),
Russian Institute for Strategic Studies, 15B, Flotskaya Str., Moscow, 125413, Russian Federation

Acknowledgments. The research has been supported by a grant of the Russian Foundation for Basic Research, project 18-010-00056.

Abstract. The article investigates the issue of old industrial areas economic recovery after industrial recession. Research aims to define government role and degree of its involvement in the process of former industrial centers renewal. Authors trace the evolution of government approach to the old industrial areas and determine the functions of different level authorities in OIRs revitalization. There are three models of old industrial areas recovery identified including European, American and Asian. European model maintains individual approach to the issues of different areas and concentrates on new development strategy search. According to European experience key decisions about the future of different territories are made on the regional level in a close cooperation with municipal power. Federal government just provides necessary financial, organizational and informational assistance to regional initiatives. American and Asian model focus on the national economic competitiveness retaining and have no certain regional strategies for old industrial areas. In the USA government plots a vector of overall economic development while municipal power tries to solve economic problems of metro areas. Asian model is notable for the non-flexible hierarchy with all the decisions made on the federal level and regional and municipal governments just bringing federal plans into action. Article provides the comparative analysis of defined models according to their advantages and disadvantages. Authors come to the conclusion that government participation is indispensable condition in old industrial areas recovery process. The best results can be achieved only in the case of the all levels authorities coordinated action and their close cooperation with business structures operated in the region.

Keywords: economic growth, economic policy, old industrial area, old industrial area revitalization, regional economy


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For citation:
Mal'tsev A., Mordvinova A. Old Industrial Areas Revitalization: Foreign Experience. World Eonomy and International Relations, 2019, vol. 63, no. 7, pp. 40-48. https://doi.org/10.20542/0131-2227-2019-63-7-40-48

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