Order N u m b e r 9105194 Development policy of four U.S. cities Randolph, Lewis Anthony, Ph.D. The Ohio State University, 1990 Copyright © 1 9 9 0 by Randolph, Lewis Anthony. All rights reserved. UMI 300 N. Zeeb Rd. Ann Arbor. MI 48106 DEVELOPMENT POLICY OF FOUR U.S. CITIES DISSERTATION Presented In Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in the Graduate School of The Ohio State University By Lewis Anthony Randolph, B.A., M.A. ***** THE Ohio State University 1990 Dissertation Committee Approved by Randall B. Ripley Aage R. Clausen (ji. Adviser William E. Nelson Department of Political Science Copyright by Lewis A. Randolph 1990 To My Late Mother and Sister For Encouraging Me To Pursue My Ph.D, and To My Wife and Two Sons For Be Supportive of My Efforts To Obtain My Ph.D. ii ACKNOWLEDGEMENTS I wish to express sincere appreciation to Dr. Randall B. Ripley for his guidance and insight throughout the research. Thanks go to the other members of my committee, Drs. Aage R. Clausen and William E. Nelson, for their advice and valuable comments. Gratitude is expressed to Drs. Henry Hunker, Joan Fitzgerald, Jim Upton, Anne Pruitt, Sue Blanshan, Joseph Russell, Richard Sylves and Wade Dyke for their support and encouragement. The technical assistance of Sue Benton, Dr. Rita Clark Chambers, and Mike Rupright is gratefully acknowledged. To my wife Tamara, I offer sincere thanks for her unending faith in me and her willingness to endure with me the vicissitudes of my endeavors. I thank my children, Desmond and Devin, for understanding my frequent absences. VITA February 1, 1952......................... Cincinnati, Ohio 1970...................................... General High School Diploma, Aiken Senior High School Cincinnati, Ohio 1970-1973.................................B.A. , Central State University, Wilberforce, Ohio. 1973-1974................................ M.A., Political Science, • University of Illinois, Urbana-Champaign, Illinois. 1979-1984.................................Director, Minority Center, Assistant Director, Division of Student Life, Department of Student Affairs, University of Delaware, Newark, Delaware. 1984-1989................................. Graduate Research Associate, Political Science Department, The Ohio State University, Columbus, Ohio. iv 1990-Present...... Assistant Professor, Department of Political Science, Ohio University, Athens, Ohio. FIELDS OF STUDY Major Field: Political Science Substantive Areas: Public Policy: Industrial and Technology Policy Urban Policy Subfields Areas: Public Policy: Implementation and Implementation Evaluation Methods and Techniques Minor Field: Public Administration Minor Substantive Area: Urban Fiscal Administration v LIST OF TABLES TABLE PAGE 1. Regime types, their origins and characteristics.................................... 7 2. Central city manufacturing employment as a percentage of metropolitan manufacturing jobs in eight SMSAs: 1900-1967........................18 3. Suburban share of SMSA employment and population, by selected years................... 18 4. Population changes in three U.S. cities by race and ethnicity, 1970-1980................... 20 5. Unemployment rates for Columbus, State of Ohio and U.S. for 1979-89............................. 109 6. Unemployment rates for City of St. Louis, state of Missouri and U.S. for 1979-89................ 121 7. Unemployment rates for City of Baltimore and State of Maryland and U.S. for 1979-89......... 135 8. Unemployment rates for City of Richmond, and State of Virginia and U.S. for 1979-89......... 149 9. Type of fiscal incentives and frequency of use in all cities..................................... 185 10. Type of fiscal incentives and frequency of use in Columbus, Baltimore, and Richmond............... 189 11. Type of development policy approaches use by each city in overall and neighborhood development... 198 12. Domincnt players in development policy initiatives in all cities..................................... 201 13. Dominant players in development policy initiatives for Baltimore, St. Louis, Richmond, and Columbus......................................... 202 vi Net impact of federal transfer program and tax reduction,1983 VII■ • LIST OF FIGURES FIGURES PAGE 1. Simplified version of urban development policy mode l.................................. 71 2. Expanded version of urban development policy model............................................... 72 3. Market based approach scale...................... 77 4. Neo market based approach scale.................. 80 5. Percentage of nonwhites in total population for city of Columbus from 1960-80............... 102 6. Percentage of population employed in key industries in Columbus from 1960-80............. 106 7. Percentage of nonwhites in total population for city of St. Louis from 1960-80.............. 115 8. Percentage of population employed in key industries in St. Louis from 1960-80............ 119 9. Percentage of nonwhites in total population for city of Baltimore from 1960-80.............. 128 10. Percentage of population employed in key industries in Baltimore from 1960-80............ 133 11. Percentage of nonwhites in total population for city of Richmond from 1960-80............... 142 12. Percentage of population employed in key industries in Richmond from 1960-80............. 147 13. Expanded version of UDPM Model................... 168 viii 14. Reexamination of original version of UDPMModel......................................... 227 15. Revised UDPM Model................................. 228 16. Effect of stimulative fiscal policy on domestic income............................................. 245 17. Relation between domestic income and foreign goods consumption....................................... 246 18. Effect on IS-LM of fiscal stimulus...............247 19. Effect on IS-LM of monetary stimulus............ 248 ix TABLE OF CONTENTS DEDICATION..................................................... 11 ACKNOWLEDGMENTS.............................................. Ill VITA ............................................................lv LIST OF TABLES................................................. vi LIST OF FIGURES............................................... vil CHAPTER.....................................................PAGE I. THE PROBLEM OF URBAN REDEVELOPMENT Introduction............................................. 1 Problem Of Urban Redevelopment....................... 14 Impact of Suburbanization of Manufacturing....15 Federa 1 Impact.................................... 22 Economic Impact...................................25 Budget Deficit.................................... 26 Trade Deficit..................................... 27 Impact of Economic Recession of late 1970s on Cities......................................... 29 Political and Social Consequences ...................35 ENDNOTES................................................ 41 II. LITERATURE REVIEW INTRODUCTION............................................45 Treatment of URDP in Literature...................... 4 6 POLITICAL BEHAVIOR APPROACH..................... 48 SOCIOCULTURAL APPROACH...........................50 POLITICAL ECONOMY APPROACH...................... 59 Limitations of Current Literature.................... 64 ENDNOTES................................................ 67 X III. RESEARCH METHODOLOGY Research Design......................................... 69 MODEL ...............................................69 Working Hypotheses................................ 82 Operationalization of Variables.................83 Methodology........................................ 89 ENDNOTES................................................. 93 LISTS OF PHONE INTERVIEWS..............................98 IV. PROFILES OF FOUR CITIES Introduction............................................ 99 Profile of Four Cities................................. 100 Columbus.......................................... 100 St. Louis......................................... 112 Baltimore......................................... 125 Richmond.......................................... 139 SUMMARY................................................. 155 ENDNOTES................................................ 160 LIST OF PERSONAL INTERVIEWS........................... 162 LISTS OF PHONE INTERVIEWS............................ 163 V. REGIME TYPES AND DEVELOPMENT POLICY STYLES IN RICHMOND, ST. LOUIS, BALTIMORE AND COLUMBUS Introduction........................................... 166 Analysis Of Research Questions.......................170 Analysis Of Working Hypotheses.......................207 ENDNOTES................................................ 211 LIST OF PERSONAL INTERVIEWS.......................... 213 LISTS OF PHONE INTERVIEWS ........................... 215 xi VI. CONCLUSION Introduction....... 216 Assessment of Research Objectives..................216 Contributions To Previous Research.................220 Contribution To Current Research and Literature.......................................... 224 Reexamination of UDPM.............................. 227 New Information and Its Research implications........................................ 230 Lessons from The Research and Unanswered Questions........................................... 232 Research/Methodological Lessons........ 232 Unanswered Questions.......................... 232 Recommendations For Future Research................233 ENDNOTES............................................ 241 LIST OF PERSONAL INTERVIEWS.......................