Strategic Priorities for Birmingham Sustainable Economic Development - Essay Example

?What are the strategic priorities for policy makers in Birmingham if they are to generate strong and sustainable economic development for the over the next 20 years? 1. Introduction Birmingham is a City with an important economic and cultural framework. Because of its infrastructure and its facilities – airport, university, a research park for business and technology research and so on – the City is considered as one of the most developed cities of the West Midlands. The City’s council initiates a wide range of activities aiming to support effectively the needs of the residents. The economic development of Birmingham is examined in this paper; emphasis is given not only on the City’s current economic performance but also on its prospects for future growth. The strategic priorities for policy makers in Birmingham in the case that the City’s economic growth over the next 20 years would be initiated are identified and evaluated. After reviewing the existing plans related to the City’s economic growth it is assumed that the achievement of a further growth – over a period of 20 years – would be achievable under the terms that collaboration and communication in regard to the relevant initiatives are improved. 2. Birmingham – requirements for growth in the next 20 years 2.1 History of the town The history of Birmingham is quite long. In accordance with the studies published on the particular subject, the presence of human in the region goes back to the Bronze Age (Birmingham, Voice of the West Midlands, History); Anglo Saxons visited the area around 700 A.D.; ‘the Medieval and Norman occupation’ (Birmingham, Voice of the West Midlands, History) of the area ended approximately in 1086; it was then that the land-owners took the control of the region occupation’ (Birmingham, Voice of the West Midlands, History). Under the influence of the industrial revolution, the City’s population has been continuously increased, up today. During the two World Wars the City suffered major damages; many of its residents participated in the Wars – and they did not return (Birmingham, Voice of the West Midlands, History). Also the City’s industrial infrastructure suffered significant damages during the above period. The restructuring and the development of the City was highly supported by foreign immigrants – it was during the 1950s and the 1960s that the City was developed significantly becoming today a major economic and cultural center in Britain (Birmingham, Voice of the West Midlands, History). The current economic and cultural status of Birmingham is reflected in the images of the town – see graphs 1 & 2 in the Appendix section. 2.2 Phases of economic development, economic characteristics The economic growth of Birmingham through the decades can be identified in the events that characterized the City’s establishment and development – as presented in the previous section. The current economic development of Birmingham is significant – compared to the financial turbulences that cities worldwide have to face. This trend is reflected in the reports published regarding the economic characteristics and the rate of the City’s growth. All of these reports are encouraging regarding the City’s current economic status and, especially, regarding its potentials for further growth. Moreover, the City’s Council has increased its efforts for generating funds necessary for serving the various social and economic needs of residents. In this context, ‘the Westminster, Birmingham and Manchester councils’ (Birmingham News Room 2011) have established a commission; the commission is based in Birmingham because the particular City is ‘the largest UK city economy outside of the capital’ (Birmingham News Room 2011). The above commission aims to identify at what level it is possible for the cities across UK to become independent – in terms of funding – from the central government (Birmingham News Room 2011). Today, Birmingham is an economic center in the West Midlands, achieving an annual income of ?2,2bn (Local News Digest 2011); the employees in the City’s banking and financial services have been estimated to 108,000 – a fact indicating the level of the City’s economic growth (Local News Digest 2011). In a recent report, the City was announced as the ‘third best place in UK to have a business’ (Local News Digest 2011). 2.3. Recommendations for the city’s economic growth The economic growth of the City over the next 20 years would be achieved through a series of activities targeting all areas of local market, including the manufacturing industry, the services and creative industries and the City’s infrastructure/ planning. Particular emphasis should be also given on the promotion of sustainability across the City – under the terms that sustainability is a concept well developed in most modern cities as it sets limits in the intervention of human activities in the environment; in this way, the economic growth of a City is achieved without the local environment to suffer damages – in the short or in the long term. A series of recommendations for the economic growth of Birmingham are presented in the sections that follow. Reference is also made to the policies that the City’s Council has already introduced for achieving the specific target. The need for additional activities in order for the growth of the City over the next 20 years to be secured is critically evaluated. In any case, the rate of the economic growth of the City over the next 20 years cannot be precisely estimated; assumptions could be only made taking into consideration the current financial turbulences, which are expected to last for a while. As an indication, the development of the UK economy in the beginning of 2011 has been estimated to 0.5%, for the first three months of 2011 - which is quite low having in mind the level of the country’s involvement in the global trade (Birmingham Mail, April 2011). 2.3.1 The role of manufacturing, service industries and creative industries Manufacturing is of high value for the economic growth of the City. The specific issue has been made clear to policy makers in Birmingham. A relevant plan of action is already in place referring to a series of activities through which the manufacturing sector in Birmingham would be improved. The duration of the relevant plan has been set for 10 years, i.e. from 2006 up to 2015 (Birmingham Economy, 2011). In the context of this plan, emphasis is given on the following aspects of the City’s manufacturing industry: a) the improvement of the City’s existing infrastructure – for serving more effectively the needs of the manufacturing sector, b) the support to entrepreneurial activities with emphasis on innovation, c) the increase of the skills of employees, d) the promotion of diversity and equality in the workplace (Birmingham Economy, 2011). Apart from the activities mentioned above, a series of additional actions should be developed for securing the growth of the City’s manufacturing sector: a) the introduction of financial schemes for the support of new entrepreneurs but also of existing entrepreneurs who wish to develop their businesses; the local Council should proceed to arrangements with the local banks and the government – at the level that these schemes would need funding, focusing on the short term, b) introduction of schemes for the support of families with children, so that parents to be able to work – the relevant support would be provided at home or at places appropriately structured and organized under the monitoring of the City’s Council; such schemes are already available but they should further developed – the increase of funding by the government would be necessary for such initiatives to be undertaken, c) the introduction of local awards for businesses in terms of their performance in the manufacturing industry; the awards would be annually – aiming to keep the local businesses continuously motivated – and should be published by the media locally and across the UK; in this way, Birmingham would become known for its support towards the manufacturing industry. Similar plans would be developed regarding the City’s services industry and the creative industry. In accordance with McEwan et al. (2005) the economic growth of Birmingham has been closely related to its multiculturalism, which has allowed the development of a wide range of economic activities – in the context of the combination of skills/ competencies of people with different cultural and educational background (McEwan et al. 2005). 2.3.2 Planning initiatives and policies required for the growth of the city The economic development of Birmingham is monitored by the Birmingham Economic Development Partnership (BEDP), a partnership aiming to provide the necessary support towards the identification and the effective use of resources for developing the local economy. The above partnership is also responsible for reviewing the level of employment in the region’s communities and check whether the performance of local businesses is satisfactory – in the context that their profitability affects the quality of life of residents. Therefore, it is the above partnership, which should be primarily involved in the development of measures for supporting the growth of the City. The partnership’s existing plans regarding the economic development of the City include the establishment of strategic alliances with similar partnerships across Britain – aiming to increase the force and the effectiveness of the relevant initiatives (BEDP 2011). Moreover, the areas in which the activities of the above partnership are developed are many, including the housing, the well-being and the economic needs of the residents (BEDP, Economic, 2011). However, it seems that no specific plans of action are in progress. The partnership has developed an extended network of supporters, a fact which is decisive for the success of its plans but in order for the growth of the City to be effectively supported it is necessary that specific schemes are introduced, meaning initiatives with specific characteristics, time framework and benefits. The involvement of the above partnership in the growth of the City the next 20 years would be critical but only under the terms that specific plans would be initiated. The Total Place plan, referring to the improvement of the City’s public services, and the Local Area Agreement, as approved by the British government, for the managing of funds are indicative examples of initiatives that the specific partnership should develop for supporting the City’s economic development. Apart from the issues highlighted above, another aspect of the City’s economic growth should be highlighted: Birmingham is a city with a significant position in the greater West Midland area. The City has many prospects for further expansion – in order to meet the housing needs of its residents; this expansion would also support the City’s economic growth. However, such initiatives would be undertaken only under the terms that the rules of sustainability are taken into consideration. Sustainability, as a concept applicable on all Cities worldwide can secure the limitation of the negative effects of human activities on the environment. In the context of a City, this issue is particularly important having in mind the level of local population and the needs of residents for a high quality of life. As made clear through the images 1 & 2 in the Appendix section, the urban structure of the City, in terms of the planning rules, secures the avoidance of over-crowding in each of the City’s communities. In this way, the control on the human activities – in terms of their effects on the environment – is easier. The development of the City’s infrastructure, as announced by the Transport Secretary in February 2011 would contribute to the further increase of the City’s economic performance (Birmingham Post, 2011). 3. Conclusion Birmingham is a City with a significant history. Currently, the City consists a major economic and cultural power in the West Midlands, as indicated through the information presented above. The potential growth of the City over the next 20 years would be highly related to its potential to further update its existing strategies. The fact that the City’s Council tries to continuously update its policies is an important criterion for the further development of the City in the future. In any case, the economic growth of Birmingham over the next 20 years would be based on a series of different requirements: continuation of existing efforts for the improvement of the City’s infrastructure, introduction of policies for supporting the City’s existing and new entrepreneurs and increase on the presentation of the City’s achievements in terms of culture and economy, as described above. References Birmingham Airport. 2011. Available from Birmingham City Council. 2011. Available from Birmingham Economic Development Partnership. 2011. Available from Birmingham Economy. Making Things Happen – A Strategy for Manufacturing in Birmingham 2006 – 2015. 2011. Available from Birmingham Economy [2]. Statistics for Birmingham. Available from < http://www.birminghameconomy.org.uk/news.htm> Birmingham Mail. 27 April 2011. UK economy grows by modest 0.5%. Available from < http://www.birminghammail.net/news/national-news/2011/04/27/uk-economy-grows-by-modest-0-5-97319-28591699/> Birmingham News Room. 2 February 2011. Leading cities launch public investigation into cash generation. Available from < http://birminghamnewsroom.com/2011/02/leading-cities-launch-public-investigation-into-cash-generation/> Birmingham Research Park. 2011. Available from Birmingham UK. Voice of the West Midlands. 2011. Available from Birmingham Post. 28 February 2011. Transport Minister claims high-speed rail will 'redraw' UK economic map. Available from < http://www.birminghampost.net/news/west-midlands-transport-news/2011/02/28/transport-minister-claims-high-speed-rail-will-redraw-uk-economic-map-65233-28249977/> Local News Digest. 2011. Birmingham UK News. Available from < http://www.localnewsdigest.com/birmingham_england_news.php> McEwan, C. and Pollard, J. and Henry, N. (2005) 'The 'global' in the city economy: multicultural economic development in Birmingham.', International journal of urban and regional studies., 29 (4). pp. 916-933. West Midlands Regional Observatory – WMRO. 2011. Birmingham ward economic profiles. Available from University of Birmingham. 2011. Available from Appendix Image 1 – Birmingham today (Source: http://www.birminghamuk.com/aroundbirmingham.htm) Image 2 – Birmingham today (Source: http://www.birminghamuk.com/aroundbirmingham.htm) Read More