Master Thesis Studienrichtung: Global Studies in a European Perspective

The former " Steel Cities " of Sheffield, UK and Pittsburgh, USA have struggled to grow and attract a modern, knowledge-based economy. From the 1970s to early 1980s, their traditional manufacturing economies began to breakdown, rendering the economic logic of their industrial structures obsolete. The comparative advantage of OECD cities shifted from physical manufacturing to the packaging and generation of knowledge. However, certain characteristics of Pittsburgh and Sheffield " s former manufacturing economies have persisted and hindered their economic recovery. This paper will argue that both Pittsburgh and Sheffield suburbanized very early because of their steel industries. These communities were fragmented geographically and economically, and became overly-specialized and dependent on steel. It will show that policy has not adequately addressed these problems and, at times, has succeeded in accentuating them. Policy-makers " initial reaction to the steel industry " s decline was to subsidize inefficient mills. When the subsidies failed, Pittsburgh and Sheffield had not pursued alternative economic development strategies. The cities suffered a concentrated decrease in employment and general economic shock. The paper will then demonstrate how later economic development plans were influenced by the historical relationship between policy-makers and private industry. The varying challenges and failures of these revitalization plans will be analyzed and discussed. The paper argues that Pittsburgh and Sheffield have mistakenly confused the terms " knowledge economy " and " information technology " , resulting in a misguided attempt at creating an IT economy. Finally, the effectiveness of current " green economy " revitalization plans will be evaluated and placed within a historical context. The paper concludes that the global economy, and economic logic of Sheffield and Pittsburgh, was forever changed in the twentieth century. The cities " efforts to maintain their brand as a world economic leader is unrealistic and, in fact, counterproductive to successful, but moderate, economic development. Abstract Die ehemaligen " sind unrealistisch, ja kontraproduktiv für eine erfolgreiche, aber moderate, wirtschaftliche Entwicklung.