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‘Not Relevant to the System’: The Crisis in the Backyards

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  • MATTHIAS BERNT
  • DIETER RINK

Abstract

This essay provides insights into the crisis unfolding in the ‘backyards’ of globalization, that is, in regions that are largely abandoned in terms of capital and are characterized by de‐industrialization and depopulation. We take Eastern Germany as an example to examine how the crisis manifests itself in this context. We look at the turmoil around the failed sale of the Opel car company, the acquisition of pre‐fab housing estates by global investors and risky financial transactions by municipal companies to show how crucial decisions about the fate of urban regions have become widely disembedded from local democratic structures. We argue that regions that are ‘not relevant to the system’ are not only particularly hard hit by the current crisis, but are also at considerable disadvantage when attempting to mobilize power to achieve solutions that are adequate to solve their problems. Résumé Ce texte fournit un éclairage sur la crise qui se développe dans les ‘arrière‐cours’ de la mondialisation, autrement dit dans les régions presque totalement délaissées par le capital et marquées par la désindustrialisation et la dépopulation. Le cas de l’Allemagne de l’Est permet d’examiner comment la crise se manifeste dans cet environnement. En étudiant l’agitation autour de la vente avortée d’Opel, l’acquisition d’immeubles de logements en béton préfabriqué par des investisseurs mondiaux et les transactions financières risquées de sociétés municipales, il est montré comment des décisions essentielles pour le destin de régions urbaines se sont largement dissociées des structures démocratiques locales. Les régions ‘inintéressantes pour le système’ sont non seulement particulièrement frappées par la crise actuelle, mais aussi nettement défavorisées lorsqu’elles s’efforcent de mobiliser le pouvoir en place afin de mettre en œuvre des solutions appropriées à leurs problèmes.

Suggested Citation

  • Matthias Bernt & Dieter Rink, 2010. "‘Not Relevant to the System’: The Crisis in the Backyards," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 34(3), pages 678-685, September.
  • Handle: RePEc:bla:ijurrs:v:34:y:2010:i:3:p:678-685
    DOI: 10.1111/j.1468-2427.2010.00985.x
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    1. Matthias Bernt, 2009. "Partnerships for Demolition: The Governance of Urban Renewal in East Germany's Shrinking Cities," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(3), pages 754-769, September.
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    Cited by:

    1. Ståle Holgersen, 2015. "Crisis and the Post-Industrial City: Or is Malmö Building Yesterday's City Tomorrow, Again?," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 106(3), pages 231-245, July.
    2. Min Wang & Shuqi Yang & Huajie Gao & Kahaer Abudu, 2021. "The Characteristics, Influencing Factors, and Push-Pull Mechanism of Shrinking Counties: A Case Study of Shandong Province, China," Sustainability, MDPI, vol. 13(4), pages 1-22, February.
    3. Roger Keil, 2010. "Real Estate, the City and Place: The Crisis Unfolds," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 34(3), pages 647-651, September.
    4. Sebastian Schipper, 2014. "The Financial Crisis and the Hegemony of Urban Neoliberalism: Lessons from Frankfurt am Main," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 38(1), pages 236-255, January.

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