Urban Fold

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.

"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

Comments

Build Your Own Paper Block City

Urban Fold is an all-inclusive kit that allows anyone to build the city of their dreams with a few simple folds.
$24.95
building block set

NEW! Build the world you want to see

Irresistible block set for adults when placed on a coffee table or desk, and great fun for kids.
$25

City Map Posters are in!

Available in 9 different cities.
$25.00

Wear your city with style!

100% silk scarves feature detailed city maps. Choose from five cities with red or blue trim.
$55.00