City of talents? Berlin's regional economy,socio‐spatial fabric and ‘worst practice’ urban governance

Berlin's reinstatement as the capital of Germany has raised great expectations of its transformation into a major economic centre of the European urban system. However, the city has not been able to fulfil these expectations. Today, Berlin is being hit by a financial crisis with dramatic consequences for the city's future development prospects. This article outlines the main outcomes of Berlin's socio‐economic restructuring in the 1990s: a tremendous loss of jobs in traditional industries has contributed to rising unemployment and the spread of urban poverty. The city has been a prime playground for speculative real estate investment, which has left behind a huge amount of unoccupied office space. On the other hand, new islands of economic growth have been developing in Berlin, particularly in knowledge‐intensive economic activities and the media industry. This development is related to the city's functioning as a highly attractive living place for the ‘creative class’ in Germany. At the same time, the city is an outstanding example of ‘worst practice’ urban governance, which has led to a financial crisis with truly catastrophic effects. The current financial consolidation policy may damage the prospects of Berlin's few growth sectors in the field of knowledge‐intensive economic activities. Le rétablissement de Berlin en capitale de l'Allemagne a suscité d'énormes attentes quant à sa transformation en centre économique majeur du réseau urbain européen, espoirs qui se sont révélés vains. Aujourd'hui, Berlin est frappée par une crise financière aux conséquences dramatiques pour les perspectives de développement de la ville. Cet article présente les principaux aboutissements de la restructuration socio‐économique de la capitale dans les années 1990: une terrible déperdition d'emplois dans les industries traditionnelles a nourri une progression du chômage et de la pauvreté urbaine; devenue terrain de jeu privilégié des spéculateurs immobiliers, la ville compte désormais une multitude d'espaces de bureaux inoccupés. En revanche, ont éclos des îlots de croissance économique, notamment dans les médias et les domaines où le savoir est important. Cette évolution tient au fonctionnement de la capitale comme lieu de vie particulièrement attrayant pour les ‘créatifs’ en Allemagne. Parallèlement, la ville constitue un remarquable cas de ‘pire pratique’ de gouvernance urbaine ayant amené une crise financière aux effets réellement catastrophiques; pour finir, la politique de consolidation financière actuelle va peut‐être entraver l'avenir des rares secteurs berlinois en expansion dans les sphères d'activités économiques demandeuses de savoir.     

Can ‘market transformation’ lead to ‘sustainable business’? A critical appraisal of the UK's strategy for sustainable business

This paper traces the origins and development of the concept of ‘market transformation’, from its beginnings as a part of energy policy in the USA, to its subsequent development in the UK. It discusses whether it could become a strategic option for British business in pursuit of sustainable growth. Drawing together themes from the academic literature on marketing, consumer behaviour, business, and energy policy, together with data from national programmes, and British government sources, the paper argues that such an approach would be based on a twin false premise – that selling energy efficiency to consumers is in accordance with modern marketing thinking, and that it has much to do with achieving sustainable development. It concludes that while achieving sustainable development will certainly encompass the transformation of markets for many products, ‘market transformation’ itself cannot be seen as a key driver for change. Copyright © 2004 John Wiley & Sons, Ltd and ERP Environment.     

Responding to ‘Skill Shortages’: Recruitment and Retention In A High Technology Labour Market

Gordon Causer, who is a Lecturer in Sociology in the Department of Sociology and Social Policy at the University of Southampton, and Carol Jones, who is Senior Lecturer in Employee Relations in the Lancashire Business School, University of Central Lancashire, explore the responses of twenty electronics companies in central Southern England to problems of recruitment and retention of professional engineers employed in research, design and development functions. They argue that organisations might be expected to treat such staff as a long-term resource, subject to processes of careful selection, extensive training and flexible utilisation. In practice these tendencies are modified to a greater or lesser degree by a variety of structural constraints, including the volatile nature of the electronics industry, the disciplinary heterogeneity of its labour force, the funding of research and development activities and the labour market conditions faced by organisations.     

‘Unbound’ employers' associations and derogations: erosion and renewal of collective bargaining in the German metalworking industry

Declining union density, the reduction in coverage or informal derogations from collective agreements are signs of erosion of the corporatist German system of collective bargaining. However, new developments can be observed like ‘unbound’ employers' associations or derogations from collective agreements. These new developments make it necessary to reassess the prospects of collective bargaining. At the first sight they seem to be little more than indicators of erosion or exhaustion, but the in‐depth analysis reveals that these developments can be starting points of renewal because they give stimuli to increase the associational power of employers' associations and, even more important for collective bargaining, unions. As a result, however, collective bargaining will become less corporatist in style.     

A ‘lost decade’ for pay may be a taste of things to come

• ? The failure of pay growth to respond to falling unemployment is less of a puzzle when allowance is made for structural changes in the jobs market. But the same developments make it hard to see where a pay revival will come from.
• ? In real terms, the average weekly wage in the UK is below the level of 10 years ago, an unprecedentedly poor performance. This is despite joblessness dropping to a 42‐year low and employment at a record high.
• ? The responsiveness of pay to falling unemployment has dwindled. A shift towards less secure forms of employment, the tightening up of eligibility for benefits and the consequences of globalisation have all made workers more compliant and less willing and able to push for higher wages.
• ? The result has been a decline in the ‘equilibrium’ rate of unemployment. The Bank of England currently judges this rate to be around 4.5%. But that earnings growth is so subdued despite unemployment being in line the Bank's estimate suggests that the sustainable rate of joblessness may well be much lower.
• ? With unemployment forecast to plateau at current levels, the odds of a revival in pay growth look slim, despite possible upsides from strong corporate profitability and rises in the National Living Wage. This would not be a new development – a secular decline in earnings growth has been apparent over the last 30 years in both nominal and real terms, with pay growth in successive periods of economic expansion failing to return to pre‐recession norms.
• ? This suggests that a serious revival in pay growth is unlikely to happen without the economy operating at significantly higher pressure and with a substantially lower unemployment rate. But this would require a recognition of, and a more accommodative policy response to, the historically weak economic expansion since the financial crisis. Neither seems likely.

     

‘Fog in the Channel,continent isolated’: Britain as a model for EU social and economic policy?

A discourse on British ‘exceptionalism’ is currently developing according to which the UK's apparently ‘flexible’ economy should serve as a model for the rest of the EU. This is explored through two case studies concerning the transmission of regulatory practices from the continent to Britain (working time) and vice versa (takeover regulation). We suggest that a UK model of the firm constructed around shareholder value and untrammeled managerial prerogative is unlikely to have much resonance for other European systems, in which the term ‘flexibility’ has different connotations.     

Existence of equilibrium actions and of equilibrium : A note on the ‘new’ existence theorems

A lemma by Ky Fan, which asserts the existence of a maximal element relative to some ordering (an equilibrium action) in a compact choice set, is extended to a larger class of orderings. This extension allows one to generalize slightly several existence theorems and seems to be useful for the applications. Kakutani's fixed-point theorem and the existence of an equilibrium in a generalized game are used to exemplify this. In the last case the method of proof may be of some independent interest involving, as it does, the reduction of an n-person game to a corresponding 1-person game.     

The joint determination of ‘Quality’ and price in standardized products: A comparative dynamic analysis

Every supermarket provides many examples of attempts lo develop more economical standardized products which will attract additional customers while guaranteeing the user that the quantity will be acceptable. We assume this process involves development costs incurred in reducing the amount incorporated in a monopoly product of its dominant product-characteristic. A comparative dynamic analysis is used to explore the search for lower prices and higher output. The heightened vulnerability of the firm to market forces and some policy implications of the analysis are brought out.     

Comment on ‘Type I error and test power of different tests for testing interaction effects in factorial experiments’

We discuss the rank transform method and particularly the hypotheses being tested. Some counter examples show that the rank transformation method is invalid in factorial designs.     

Questioning the use of ‘local democracy’ as a discursive strategy for political mobilization in Los Angeles,Montreal and Toronto

Between 1997 and 2002, homeowners in various parts of Los Angeles sought to secede from the City. At the same time, in Toronto, the province of Ontario forced the amalgamation of six municipalities forming a new megacity of 2.4 million. Residents mobilized for several months. In 2000, the province of Quebec forced the merger of 28 local municipalities in Montreal, forming a new city of 1.8 million. Angst came mostly from suburban Anglophone municipalities, where it was felt mergers would affect linguistic privileges. In the three cases, but stemming from different positions on the Left‐Right political spectrum, social actors claimed more local autonomy ‘in the name of local democracy’. Comparing these cases where institutional reforms and claims for local autonomy captured the political agenda, the article asks whether the use of ‘local democracy’ as a legitimizing tool for territorial claims may point to the emergence of a new generalized discursive strategy. Comparing variations in interpretations, and locating them in their respective local political cultures and in relation to the political positioning of claiming groups, highlights the processes by which socio‐political movements mobilize residents to their cause while avoiding accusations of NIMBYism. In the end, the article questions the moral tone attached to the expression ‘local democracy’.