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Communities and Leaders at Work in the New Economy: a Comparative Analysis of Agents of Transformation in Pittsburgh, Pennsylvania and Hamilton, Ontario

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Communities and Leaders at Work in the New Economy: a Comparative Analysis of Agents of Transformation in Pittsburgh, Pennsylvania and Hamilton, Ontario COMMUNITIES AND LEADERS AT WORK IN THE NEW ECONOMY: A COMPARATIVE ANALYSIS OF AGENTS OF TRANSFORMATION IN PITTSBURGH, PENNSYLVANIA AND HAMILTON, ONTARIO by Barbara Ann Fennessy A thesis submitted in conformity with the requirements for the degree of Doctor of Philosophy Department of Sociology and Equity Studies in Education Ontario Institute for Studies in Education of the University of Toronto © Copyright by Barbara Ann Fennessy 2009 COMMUNITIES AND LEADERS AT WORK IN THE NEW ECONOMY: A COMPARATIVE ANALYSIS OF AGENTS OF TRANSFORMATION IN PITTSBURGH, PENNSYLVANIA AND HAMILTON, ONTARIO Doctor of Philosophy, 2009 Barbara Ann Fennessy Department of Sociology and Equity Studies in Education University of Toronto Abstract Without change, stagnation is inevitable. Never has this truth been more obvious than during the current epoch of industrial decline in North America. This research provides two economic narratives that exemplify the struggles of industrial communities as they strive to regenerate. The research involves a comparative analysis of the transformation of two steel cities, Pittsburgh, Pennsylvania, and Hamilton, Ontario, from 1970 to 2008. For cities in which one major industry has formed the foundation of the local economy, job losses can result in massive dislocation and devastating consequences for individuals, families, and communities. Pittsburgh and Hamilton are among many cities striving to diversify and strengthen their economies as manufacturing diminishes and Western sunset industries rise in the East. Transformation has been much more extensive in Pittsburgh than in many cities because Pittsburgh was so largely dominated by the steel industry and faced a virtual collapse of that industry. Hamilton has also experienced a steep decline in steel and related manufacturing jobs. Based on 55 interviews with city leaders, including a pilot study in Welland, Ontario, this research examines eight critical factors that collectively influence development: transformational leadership, strategic development planning, civic engagement, education and research, labor, capital, infrastructure, and quality of life. The study looks at how city leaders drive these factors in the context of global economic forces to revitalize their communities. Together, these ii elements combine to create the new economy of cities. To achieve successful transformation, the elements must function as part of an integrated system ─a community economic activity system (CEAS). This research is grounded in MacGregor-Burn’s (1978; 2003) transformational leadership theory and positions local leadership as the central driver of economic regeneration. It highlights the importance of enduring social relations among leaders for creating an organized, yet dynamic, base of power that is necessary to mobilize resources and execute development policies to achieve qualitative change. Moreover, it points to the importance of inclusiveness and openness in engaging local citizen groups in order to build trust and confidence that recovery will happen. Pittsburgh and Hamilton offer many examples of successful partnerships that increasingly involve public-private-nonprofit-academic collaboratives. iii Acknowledgements This journey, which has consumed much of the past 4 years, has provided an extraordinary opportunity for learning and personal fulfillment. I would like to acknowledge the tremendous support from my supervisor and mentor, Dr. David Livingstone. His encouragement and guidance began the first day I set foot on the 12th floor of OISE/UT and have been a constant since that day. I wish to thank my committee members, Wally Seccombe, Peter Sawchuk, and my external reviewer, Neil Bradford. I also have been very fortunate to work with an outstanding group of student colleagues, especially Anne Bird. Two other individuals, Meryl Greene and Eva Tihanyi, provided invaluable assistance with grammatical editing and formatting of this thesis document. Kurtis Kitigawa provided sound advice and helped keep me focused during my year in Ottawa. As well, I am grateful to Rachel Hongtong from the U.S. Bureau of Labor Statistics for providing employment data for the American steel industry and Sylvie Picard from Statistics Canada for providing employment data and assisting with conversion calculations for the Canadian steel industry. Michael Florio from the Ontario Ministry of Agriculture, Food and Rural Affairs provided employment data for Ontario and Hamilton. I am indebted to the 55 leaders in Pittsburgh, Hamilton, and Welland who participated in interviews for this research. Their insights are the soul of this thesis. I am particularly grateful to my loving, supportive family and friends who appreciate what this journey means to me. My siblings, Marty, Marian, Lynda, Pat, and Diane, and my dear friend, Eva, have been very patient, tolerant, and encouraging. My children, Keri and William, are my inspiration. My belated father, Michael, assured me that I would complete this journey. My mother, Mary, is, and always has been, my best teacher. Above all, I want to thank my husband, Bob Ross, whose love, encouragement and unconditional support made this dissertation possible. The journey of a thousand miles starts from beneath your feet. Tao Te Ching, Verse 64 iv Contents Abstract........................................................................................................................................... ii Acknowledgements........................................................................................................................ iv Chapter One: Leadership in Community Economic Transformation............................................. 1 Introduction................................................................................................................................. 1 Scope and Standpoint.................................................................................................................. 3 Decline in North American Steel Cities...................................................................................... 4 Research Questions..................................................................................................................... 9 Purpose and Significance of Research...................................................................................... 11 Methodology: Comparative Analysis of the Economic Transformation of Pittsburgh and Hamilton ................................................................................................................................... 12 Community, Business and Labor Leader Perspectives on Economic Development................ 14 Limitations of the Study............................................................................................................ 14 Theoretical Framework for Leading Economic Transformation.............................................. 15 Personal Interest in Community Leadership and Economic Development .............................. 18 Outline of Dissertation Chapters............................................................................................... 19 Chapter Two: Literature Review: Economic Development and the New Economy of Cities ..... 21 Introduction............................................................................................................................... 21 Concepts of Economic Development........................................................................................ 23 Theories of the New Knowledge-Based Economy................................................................... 33 The Post-Industrial Society................................................................................................... 34 The Knowledge Economy..................................................................................................... 39 The Post-Capitalist Society................................................................................................... 42 Informational Capitalism ...................................................................................................... 44 Human Capital Theory.......................................................................................................... 45 Creative Class Theory........................................................................................................... 49 Dominant Themes for a New Economy................................................................................ 51 Theories of Local Economic Development and Growth .......................................................... 54 Location Theory.................................................................................................................... 55 Economic Base Theory......................................................................................................... 58 Cluster Theory ...................................................................................................................... 61 New steel clusters. ............................................................................................................ 68 Distillation of Critical Factors for Transforming Local Economies......................................... 70 Chapter Three: Literature Review: Community Leadership and Organization............................ 75 Introduction............................................................................................................................... 75 Theories of Community Leadership and Organization............................................................
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