Rosie Mason, United Kingdom
Introduction
Structural economic change is defined as how an economy changes on a fundamental level over time. For example, the economy of an area may see a change in the types of industries that drive it. Birmingham, the second largest city in the UK, has developed from a small farming village to one of the country’s biggest hubs for economic progress, through structured economic change since the medieval period. In this article, I aim to illustrate just how this change has occurred and the different key players involved, as well as the socio-economic impact on Birmingham.
Part 1: Initial Economic Growth
Before the 12th century, Birmingham was a remote settlement of little importance. This changed in 1166 with the first market held in the area, as the de Bermingham family established a royal charter for the region. This was the beginning of trade and economic growth for Birmingham. By 1563, the region had grown, and it was reported that many metalsmiths lived and worked there. However, perhaps the greatest period of economic growth for Birmingham came with the Industrial Revolution in the mid-18th century. This brought many more trades to the area, and for Birmingham, the predominant industries were jewelry, buttons, brass, and other metalworks. The first factory, Soho Manufactory, was established by Matthew Boulton in 1761, and this paved the way for many more companies to build factories in Birmingham. This resulted in a massive economic boom for the city and a big shift towards industrial and mechanical work, which encouraged people to move to the area to find jobs. Birmingham was so renowned for its manufacturing industry throughout the 18th and 19th centuries that it was known as ‘the workshop of the world’. A key socio-economic impact of this time was rural-to-urban migration, as people moved to the city to find jobs, which meant that Birmingham's population rose significantly. As a result, many more workers could work in the factories, increasing productivity within the manufacturing industry and driving economic growth in the area. Overall, throughout the 18th and 19th centuries, Birmingham’s economy was thriving.
Part 2: 20th Century Change
The Western world experienced great economic turmoil in the early 20th century. Many workers joined the army to fight in the First and Second World Wars, and as a result of this, international trade flows were greatly reduced. However, Birmingham continued to experience economic growth due to the diversity of its metalworking industries, and the sheer number of trades in the area. Because of this, Birmingham was able to survive the Great Depression in the 1930s and maintain its thriving economy. The driving force for Birmingham’s economic growth throughout this period was its car industry, for instance with the Austin car factory established in 1906 and Dunlop Tyres established in 1917. However, the city’s reliance on car sales would inevitably cause severe economic decline for Birmingham. Due to the many car industries that were thriving overseas, such as Toyota and Mazda in Japan, there was lots of international competition with Birmingham’s smaller car factories. International corporations also benefited from the global shift phenomenon, where many industries moved their factories abroad to locations such as India, as wages were lower and running a factory was therefore cheaper. This global shift of industry in the 1970s meant that suddenly, international corporations were experiencing high economic growth, and Birmingham’s factories couldn’t keep up with their more successful competitors. Car companies overseas became much more popular with the British public, meaning that Birmingham’s own car industry faced severe economic decline, as there were far fewer sales. Additionally in the 1970s, there was a major conflict in Middle Eastern countries, which drove up the price of oil as these countries were key oil suppliers. Car industries therefore had to pay more for oil, and Birmingham, as a city that relied on its car industry, experienced an economic downturn. There was rapid deindustrialisation in the 1960s and 1970s due to this, and 50,000 job losses. Birmingham started the 20th century with a booming economy, but due to the negative impacts on its car industry, it saw a major economic decline towards the end of the century.
Part 3: 21st-Century Change
In the past few years, Birmingham’s economy has recovered, and the city is currently in a period of economic growth. It was the 7th best core city in terms of economic growth in 2021, with food and drink manufacturing industries dominating within the city and generating £14 billion annually. The city also benefits from thriving business and finance industries, like Lloyds and Midland Banks. In addition, Birmingham has seen socio-economic changes through investment and funding projects. The EU Social Investment Fund has generated £235 million for Birmingham between 2014 and 2020. This has led to the development of the National Exhibition Centre, as well as improvements to Birmingham Airport and the city’s railway links, which means more visitors to the city and more economic growth. Investment from the Canal and River Trust has improved Birmingham’s green spaces and canal systems, which makes the city a more attractive place, and invites more people to visit - or even come to live and work there, further improving economic gain. Not all the impacts on Birmingham have been socio-economic, as a result of structural economic change, since the built environment and green spaces have changed recently as well. However, it is clear to see that the main impacts have been on the economy and industries within Birmingham.
Conclusion
Overall, Birmingham is a fascinating example of how structural economic change can affect a region over time. The industries within the city have changed and developed vastly throughout the centuries and the economy has seen periods of growth and decline as a result. The socio-economic impacts have been clear to see, with the many changes to the economy, and the flows of migration into Birmingham changing the social structure of the city too. There have also been several environmental impacts of the economic changes, like improvements to the city’s parks and canals, as well as new buildings and transport hubs. However, these impacts create more socio-economic change in the long term by attracting more visitors, which shows how many of the results of structural economic change are interlinked. Birmingham has been greatly impacted by its economic change for many hundreds of years, and it will continue to see socio-economic impacts in the future.
Bibliography
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