EUKN - European Urban Knowledge Network - How to encourage economic activity in deprived urban areas?

How to encourage economic activity in deprived urban areas? – URBACT report

Introduction

URBACT has recently published a report on local economic development and labour market policies. It addresses the opportunities for local authorities to improve economic performance of deprived neighbourhoods. The report gives a comprehensive overview of all measures that are implemented to strengthen the economic structure of blighted urban areas. It provides an answer to questions such as: ‘How can cities adapt financial support instruments to the specific needs of deprived urban areas?’, ‘How can cities ensure that all their citizens have access to the labour market?’ and ‘How can physical regeneration best contribute to the economic development of an area?’.

Description

Over 75 per cent of Europeans live in cities. Cities are increasingly recognised as driving forces of development and innovation, generators of wealth and places of integration. However, in a growing number of European cities, even the wealthiest, severe concentrations of poverty and of spatial and social segregation continue to exist. The problems that people living in these urban areas face show no sign of abating – they are even becoming increasingly severe.

This publication by URBACT analyses the special role of local governments in countering the downward spiral of concentrated urban deprivation. It gives an overview of policies and projects implemented in deprived urban areas throughout Europe.

The report sets off with analysing the role of cities in enterprise development. It takes a closer look on the possibilities of local governments to improve the local labour market. Finally, it looks at local economic development as a part of an integrated approach of urban regeneration.

EU involvement

The URBACT report was presented during the informal ministerial meeting on urban policy in Leipzig on 24 May 2007. The report was commissioned by the 2007 German EU Presidency.

Conclusions

Based upon an analysis of a large number of local policies and projects in European cities, the report comes up with a large number of concrete conclusions and lessons for urban professionals. These can be clustered around four major conclusions:

Cities play a vital role in fostering economic development and employment and ensuring that they benefit the most deprived parts of the city.
Cities are in a unique position to create economic opportunities for deprived neighbourhoods through integrated approaches to urban regeneration and development.
Cities have neither the power nor the resources to do it alone. But they can hugely increase their impact on deprived urban areas by taking the lead in partnerships with other local actors.
Cities can make most of their potential if they operate in close cooperation with the European, national and regional level and receive targeted support from these tiers of government.

Contact info

URBACT Secretariat
Melody Houk, tel. +33 1 49 17 47 52

Publication date

24/05/2007

Links

Visit the URBACT website Visit the German EU Presidency website

Download 'Strengthening the Local Economy and the Local Labour Market in Deprived Urban Areas' (PDF, Eng, 873 kB)

Document type

research

Themes

Urban Policy

Keywords

Economy knowledge & employment