Regeneration Enquiry Question 2 Why might regeneration be

Regeneration - Enquiry Question 2 • Why might regeneration be needed? 4 A. 4 Economic and social inequalities changes people’s perceptions of an area. a. Successful regions (�San Francisco Bay area) have high rates of employment, inward migration (internal and international) and low levels of multiple deprivation but also high property prices and skill shortages in both urban and rural areas. b. In some regions (� The Rust Belt, USA) economic restructuring has triggered a spiral of decline, which includes increasing levels of social deprivation (education, health, crime, access to services and living environment) in both deindustrialised urban areas and rural settlements once dominated by primary economic activities. c. There are priorities for regeneration due to significant variations in both economic and social inequalities (gated communities, ‘sink estates’, commuter villages, declining rural settlements).

Regeneration - What makes a region successful? By the end of this lesson you will have: • Understood how the perception of a place can have an impact on the success of a place • Understood the difference in success between rural and urban places • Applied what you have learnt to Berkshire

Learning Outcomes EQ 2: Why might regeneration be needed? Content * This next series of lessons are based on how economic and social inequalities change people’s perceptions of an area. * By the end of the lesson today, you will be able to suggest, and give examples of ways in which places can be successful. Process We will do this by working to produce a case study card on a successful area, looking at employment and migration rates, along with IMD data. Key terms • Cumulative causation, • Cycle of decline, • Multiplier effect.

Perception of a Place • Thinking of greater Manchester, with the person next to you write down your perceptions of the following areas in 3 words: • • Piccadilly gardens Levenshulme Didsbury Bramhall Salford Burnage Chorlton Heaton Moor

Perception of a Place • Perception is vital when it comes to the success of a place • A perception of where people live affects their everyday quality of life • A perception also affects migration in and out of the area, as well as tourism and economic activity • i. e. are there places in Manchester we mentioned before that you simply wouldn’t want to live in when you are older?

What makes a successful region? • Self sustaining with more people – Keeps on going/positive/more people move in • More investment – From within and outside – businesses move as they are attracted to the area • More opportunities – Jobs, services, entertainment • High levels of employment – Lots of job choice which is also well paid • In migration – People loving in from other cities within the country • High quality of life – Good lifestyle, good health, good homes, pleasant areas in live in • Low levels of deprivation – Less people who face hardship e. g poor health, less money, poor education, low level of skills, on benefits • Examples – Liverpool, Manchester

What makes a successful region? HOWEVER…. • • Negative Externalities may result Definition: a consequence of economic activity TASK: Think, pair, share – what might be the negative externalities of an economically successful region? Write in your workbook • High property prices which impacts upon people with low wages • High levels of congestion on roads and public transport • Skills shortages in particular areas such as IT, finance with low uptake of these areas in education The perception of people will vary = • Low earners in successful places such as Liverpool will have a negative view of the area as their quality of life doesn’t match the new regenerated area • Young adults may want to escape places that don’t match their requirements such as a slow pace of life geared for pensioners e. g Torquay in Devon • Quality of the environment is generally viewed higher/postively in Rural areas

What makes a successful region? Remind me what it is called when one thing leads to another…? Or now we are A Level, we refer to this as cumulative causation. This is a theory developed by Swedish economist Gunnar Myrdal in the 1956 who said a successful place is well linked, where one place leads to successive changes in other places. Write in your workbook Myrdal’s Cumulative Causation Model The multiplier effect is a concept in economics that describes how an injection into an economy, such as an increase in government spending, creates a ripple effect which increases employment and the output of goods and services in the economy. An injection occurs in the economy, such as an increase in government spending.

Write in your workbook

The introduction of a new industry or the expansion of an existing industry in an area also encourages growth in other industrial sectors. This is known as the multiplier effect which in its simplest form is how many times money spent circulates through a country's economy. Workers employed directly in the new industry increase the local supply of skilled labour, attracting other companies who benefit from sharing this labour pool. Other companies who supply components or use the new industry's products are attracted to the area to benefit from reduced transport costs. Money invested in an industry helps to create jobs directly in the industry, but it also creates jobs indirectly elsewhere in the economy. New industrial development, for example, requires construction workers who themselves require housing, and services such as schools and shops. An increased demand for food will benefit local farmers who may increase their spending on fertiliser. Spin-off effects include new inventions or innovations that may lead to further industrial development and new linkages. Through this multiplier effect, an area can develop as a growth pole, as illustrated in the diagram below.

Urban places – read p 233, write in workbooks • London and SE England are successful places • Why? Think, pair, share • London's function as a capital • Government policies to protect its competitive status on the world stage – 2012 Olympic Games – Heathrow Airport Expansion • Southerners – Wealthier, better life expectancy • Whilst in the North…. . – Good education – Lower house prices – Lower traffic flows

Rural Places – read 234, write in workbooks. • In 2011 census showed a reversal of trends. . . • Small towns growing – Population • In migration of small families, commuters and retiree’s – Economic output • Growth of micro businesses(under employees) • Leisure and tourism – Accessible and attractive rural communities – Technology and transport innovations • High speed broadband – Therefore highly skilled employees can work from home

What makes a successful region? Cumulative causation flow diagram New industry enters or the expansion of an existing firm More jobs created (particularly in construction) purchasing power increases Enlarged pool of trained labour Companies supplying raw materials or components Linked industries are attached Innovation and invention Companies processing the produce or using it as a component Area functions as a growth pole Demand for services increases Population rises (immigration); more wealth Spending power increases with improved tax revenue and enlarged consumer base Tertiary sector grows and new construction work starts

Re-Cap: Stay standing if… • 1. You can define perception…. • 2. You can name 2 negative externalities of an economically vibrant place… • 3. You can remember who devised the cumulative causation model… • 4. You can explain the reversal of trends in rural places economy… • 5. You can name a rural area in the UK with successful economies… • 6. Can explain the disadvantages of living in an economically successful urban area…

Example: Berkshire, a successful place! • Describe the location of Berkshire.

Berkshire Information • As a starting point, there is some information around the room which tells you about Berkshire. You should make yourself a case study card on which you can record this information. • It should include the following categories/headings: - Connections i. e. infrastructure - Physical geography - TNC investment - Employment types Write up in your workbook - Employment data - Immigration - IMD data - Property prices

Connections • The M 4 motorway runs along the county of Berkshire from East to West. • The M 25 runs to the east of Berkshire- this is a major route for access to London. • Heathrow airport is close, having a big influence on the area. • Check the image below. What else can you add?

Physical Geography • Much of the land in Berkshire is good quality for development. • Towards the west of the county, the river Thames and Kennet have created a wide, flat floodplain which is good for high-quality housing and business developments.

Employment Types • There are high rates of employment in Berkshire. It is a good location for both commuting into London and employment within the county. • Towns such as Reading, Slough and Bracknell host major ICT companies such as Microsoft and Oracle. • In addition: – Slough Trading Estate hosts the headquarters of TNCs such as O 2 and Dulux – Newbury is home to the headquarters of Vodafone – Bracknell has TNCs such as Waitrose and BMW’s UK headquarters

Employment Rates • In 2008, the Office of National Statistics found that roughly half of workers in Berkshire were employed in knowledge-based, managerial and professional occupations. • It is estimated that Berkshire will need an additional 70, 000 well-qualified workers by 2020. • Many companies are looking overseas, and in 2011, they recruited between 7000 and 11, 000 workers from outside the EU.

Immigration (the action of coming to live permanently in a foreign country. ) Types of immigration into Berkshire Workers 18% Students 1% 40% 18% Returning migrants (UK born) Asylum seekers Others 23%

IMD Data • 0. 4% of the neighbourhoods which fall under the Thames Valley Berkshire Local Enterprise Partnership are classed as deprived by the IMD. • To put this into context, there are only five partnerships where less than one per cent of neighbourhoods are in the most deprived decile of this Index nationally. These include Enterprise M 3 and Buckinghamshire Thames Valley, where none of the neighbourhoods meet this criterion. • This is not to say that there are no deprived people in the partnership areas ranked as least deprived; rather where deprivation exists, it may not be concentrated within particular neighbourhoods.

Property Prices • Due to the demand for living in Berkshire, the county has some of the most expensive villages in the UK. • The wealth of the villages (some are nick-named ‘millionaire villages’) has helped fund the rural economies however house prices are rising and have risen 40%-50% between 2005 -2015. • In September 2015, prices for some six-bedroom properties were in excess of £ 2 million. • Property is out of reach for 20% of the population in the county due to the prices.

Write this in your workbook Which factor is most influential? • What factor do you think is most influential for Berkshire to be the successful place it is? • Diamond 9 your factors (yes, I know there are only 8…you can work your own layout out!) to show which factor you think is most influential, and which is least influential. • You should write a paragraph to explain why you have placed the top and the bottom.

Homework Assess the reasons for the economic success of one place you have studied. (8) Suggested structure: Introduction: define key terms and suggest what you will discuss Main body: One economic reason and explanation Second economic reason and explanation Third economic reason and explanation Conclusion – detailed summary and an overall answer to the question Where do the marks come from? - Identification and geographical location of your case study. - Examples of TNC investment - Examples of infrastructure and how this helps economic development - Link back to the question