Fascinating article by @John_C_Austin arguing that the German model of aiming for „equivalent living conditions“ everywhere by means of structural policies and infrastructure is seen as a role model for the US.
Here are a few thoughts on that /1
brookings.edu/blog/the-avenu…
Here are a few thoughts on that /1
brookings.edu/blog/the-avenu…
First of all, this article is part of a broader discussion on the subject of „lagging regions“, „urban-rural divides“, „forgotten places“ etc. that was stimulated by @paulkrugman in this recent column:
Also @Noahpinion is involved, arguing that the foundation of universities is the best way of helping lagging regions and also sort of seconding that the German way of dealing with this problem is sort of a role model. /3
So, is everything really so great over here?
I was surprised that GER is named a role model, because we’re debating the same issues (how to revitalize the periphery) with the same intensity and there‘s little awareness that other countries believe we‘re doing a better job /4
I was surprised that GER is named a role model, because we’re debating the same issues (how to revitalize the periphery) with the same intensity and there‘s little awareness that other countries believe we‘re doing a better job /4
Ok, regional disparities are smaller in Germany than in the US.
But that‘s not only the result of policies. It‘s mostly just historical coincidence
We have those hidden champions, world market leading manuf firms, located in totally unknown peripheral places. Why? /5
But that‘s not only the result of policies. It‘s mostly just historical coincidence
We have those hidden champions, world market leading manuf firms, located in totally unknown peripheral places. Why? /5
One reason is German division. Firms were forced to leave Berlin, and had to settle for new locations in the West.
This led to more dispersion in economic activity that we still have today
Listen to Daniel Sturm here (I‘m also involved in that episode):
freakonomics.com/podcast/secret…
This led to more dispersion in economic activity that we still have today
Listen to Daniel Sturm here (I‘m also involved in that episode):
freakonomics.com/podcast/secret…
But these days, things start to change.
Germany is transforming from manufacturing to services which are more footloose. Those industries COULD operate anywhere but actually they mostly want to be in the big cities
Thus, rising urban-rural divides come with that transformation
Germany is transforming from manufacturing to services which are more footloose. Those industries COULD operate anywhere but actually they mostly want to be in the big cities
Thus, rising urban-rural divides come with that transformation
On rising regional inequalities which come with that transformation we have recently written a @nberpubs paper with Enrico Moretti
And those increasing gaps are one of the top policy issues these days!
And those increasing gaps are one of the top policy issues these days!
In short: we have the same problems but we may just have started from a more dispersed, more comfortable point.
Whether our regional policies are then actually so much better is another matter.
Maybe they are better than in the US, but that doesn’t say much
Whether our regional policies are then actually so much better is another matter.
Maybe they are better than in the US, but that doesn’t say much
When I look at the funding situation of the German education system, the lack of high-speed internet outside big cities, low public investment on infrastructure, the AfD vote shares in rural places, ... it‘s hard to believe that anyone would consider our policies a role model.
Anyway, it‘s interesting to see that the inside view seems quite different from @John_C_Austin outside view.
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