Global Shift for Developed Nations
Geography: Edexcel A Level, topic 4.3.3
Global Shift for Developed Nations - Deindustrialisation
In the developed world, deindustrialisation has caused social and environmental problems as manufacturing industries have declined.
Spiral of decline
- The spiral of decline describes when unemployment leads to de-population (people start to move out of an area) because of a lack of jobs.
Effects of the spiral of decline
- This leaves buildings and houses derelict.
- With a lack of jobs, there can also be a rise in the crime rate and other social problems.
- If people move away, other businesses may leave the area because they cannot stay in business or hire skilled workers.
- For example, many towns in Northern England saw significant rises in mental health issues linked to the closure of the mines in the 1970s and 80s, which employed the majority of the population.
Detroit, USA
- Detroit was the 4th largest city in the USA during its peak as a car producing city, with Ford and General Motors operating there.
- With globalisation, car production moved to Japan where costs were cheaper.
- As a result, the spiral of decline set in and in 2013, the city was declared bankrupt.
- In 2017, Detroit was still losing 0.5% of its population each year.
Europe
- In March 2015, the youth unemployment rate in many European countries stood at more than 20%.
- Some people blame this on globalisation and the movement of manufacturing jobs abroad.
- The Euro Crisis and economic austerity after the 2008 global financial crisis probably played a role too though.
Leicester, UK
- Leicester is a city in the East Midlands that was once home to a large textile industry.
- Following the global shift, the 1970s saw the spiral of decline happen in the town.
- At the peak, over 30,000 people worked in Leicester’s textiles mills. But eventually, most of these factories moved abroad, including Marks & Spencer's mill.
Test yourself on Global Shift for Developed Nations
Which of the following was NOT a result of the closure of the mines in the North of England in the 1970s and 80s?