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Competitiveness of the Inner Cities - Essay Example

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This work called "Competitiveness of the Inner Cities" describes the competitive advantages of the inner cities, the review of Michael Porter’s work. The author outlines that Porter’s evaluation of the inner cities adequately reveals that a vast majority of investments are required to be made in strengthening the business sector solely…
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Competitiveness of the Inner Cities
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Download file to see previous pages Porter had identified that crushing conditions of poverty and lack of resource availability have made the lives of inner-city dwellers difficult. Also, the various revitalization efforts taken by the government and commercial institutions to improve the conditions in these areas were not successful. In fact, the conditions existing in these regions continued to deteriorate (Porter, 1995). Past efforts taken towards the development of the inner cities were mainly centered on providing relief in the form of income, food stamps, and housing subsidies. These programs were designed in a manner such that they could provide solutions to only the real and the most visible needs of the society. The initiative taken towards the development of the economy was seen to remain ineffective. The approaches were also seen to be highly fragmented and considered the inner city as an isolated part of its surrounding regions. Porter states in his review that it is high time for the authorities to consider altering their approach towards the development of the inner city regions across the U.S. The current development programs only facilitate developing the educational and the general human needs of the society. However for the long sustainable development, stronger economic strategies for strengthening the inner city regions require to be developed (Porter, 1995).
Porter considers putting attention upon recognizing those aspects which propel economic growth. He states that charities are not a viable means of attaining economic success in the inner city region. Instead, reliance must be developed upon private investments (Porter, 1995). Private firms are profit-oriented and seek to put attention upon the long term strategic sustainable practices. This is precisely what the inner city regions must look towards acquiring. Companies in the inner city regions are largely small-sized and many of them are not able to sustain in the long run due to lack of proximity with suppliers and customers. There hardly exist suitable location advantages in the inner city, driving firms to move farther away. In order to strengthen the industrial base, it is essential to first recognize the advantages which exist in the inner city regions and accordingly set plans for economic development.  Advantages for companies do not arise in isolation. Instead, the development of a cluster of companies is necessary to ensure growth. Hence merely the development of one or two firms would not be sufficient (Porter, 1996). ...Download file to see next pages Read More
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