History has many examples of this, during the 1980s in Britain coal mining towns became ghost towns as the mines closed or needed fewer workers. In the 1990s, when the Soviet Union collapsed, large areas of Eastern Europe were left without jobs, as many of the smaller towns and cities relied on one type of industry.
These are old economic lessons, but still in 2009, many towns and cities around the world are facing the same old effects of basing their economy on one company or industry.
Here are two examples of Companion Cities and Towns, now in deep trouble.
1.Detroit
An obvious example of a city that failed to diversify while lessening its dependence on the big three motor industries, after they failed to become competitive. Detroit is an extreme example of when things go wrong, there are no other options because city and town planners never looked to the future.
2.Wilmington
DHL Town, until DHL decided to withdraw from the US domestic market. Leaving behind an empty airport, storage facilities and a population that has seen its unemployment levels quadruple this year. Wilmington’s future remains in question until the Town can diversify its economy and attract investment.
Dependence and lack of diversification are often two factors that create Towns and Cities that become economic black spots. And the blame may lie with the way these areas choose to develop, by not preparing to diversify rather than stick to the option of depending on one Industry or Company.
However, town and city planners of the future must look to the future and create more diversified local economies, so that if one business fails, the local economy is still adequately protected against that failure.