Study Notes on Urbanization and Deindustrialization

Urbanization and Deindustrialization

• Definitions

  • Deindustrialization: A widespread, systematic disinvestment in the productive capacity of a country, region, or locality (Bluestone and Harrison, 1982).

  • Peaks in the 1970s and 1980s, but continues today.

  • Results from conscious decisions by company officials, not inevitable.

Broader Economic Context

• Globalization and Relocation of Production

  • Labour-intensive activities are increasingly moved overseas.

  • Factor: Rise of the International Division of Labour (IDL).

  • Influenced by international trade agreements (GATT, WTO, NAFTA) that phase out quotas and tariffs, leading to increased competition.

  • Improved transportation and telecommunications facilitate this process.

Technological Changes

• Labour-Saving Technologies

  • Introduction of machinery, automation, robotics, digitization, AI.

  • Enables companies to produce the same goods with fewer workers.

  • Example: Recent insights on how AI is changing the workplace (M. Jaso, WSJ, 2023).

Local Drivers of Deindustrialization

• Socio-Spatial Consequences

  • Low-income, racialized populations face precarious employment.

  • Job losses are more severe in segregated, low-income neighborhoods.

Economic Consequences in Montreal

• Job Loss Statistics

  • Montreal Southwest job figures: 28,475 jobs in 1951 to 7,147 by 1988.

• Impacts Beyond Factories

  • Significant job losses also occurred in related services, contributing to community decline.

Decline of Communities

• Population Loss

  • Montreal Southwest: Population decreased from 96,758 in 1971 to 68,874 in 1986.

  • Closure and abandonment of essential services: stores, banks, schools, and community institutions.

• Social Issues

  • Escalating poverty and social dislocation (e.g., theft, arson).

  • Stigmatization of neighborhoods (e.g., Little Burgundy termed as “ghetto”).

Toxic Legacies

• Environmental Justice

  • Communities of color and the poor face disproportionate exposure to pollution.

  • Inadequate environmental protection laws exacerbate health risks (Maantay 2002).

Government Response

• Individualization of Solutions

  • Responses included training programs for workers and limited demolition of industrial buildings.

  • Lack of large-scale interventions for job protection or creation.

Community Resistance

• Mobilization Examples

  • 1983 Quebec ILGWU Strike: 9,500 workers protested pay cuts and extended hours.

  • Resulted in a 25-cent raise, but key organizers faced termination.

• Local Development Initiatives

  • Establishment of community clinics in Pointe-Saint-Charles during the late 1960s as models for economic development.

Export Processing Zones (EPZ)

• Definition and Incentives

  • EPZs are industrial zones providing incentives to attract foreign investments.

  • Differences between EPZs and free trade zones articulated (Klein, 2008).

• Historical Context

  • The UN established EPZ concepts in the mid-1960s, reflecting a shift toward export-driven economies.

Employment Conditions in EPZ

• Cavite EPZ

  • Established in 1980, employing roughly 90,000 workers in the Philippines.

  • Workers often face long hours, low wages, and inadequate workplace conditions such as poor ventilation and lack of breaks.

Implications of Urban Renewal

• Case Study: Little Burgundy

  • The area saw significant gentrification and razing of approximately 68% of its buildings, displacing many residents.

  • Understanding urban renewal and community impact is key to addressing social inequalities.