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Xerox University Microfilms 300 North Zeeb Road Ann Arbor, Michigan 48106 76- 24,557 BERENTSEN, William Harry, 1947- REGIONAL POLICY AND REGIONAL INEQUALITIES IN AUSTRIA: THE IMPACT OF POLICY UPON THE ACHIEVEMENT OF PLANNING GOALS. The Ohio State University, Ph.D., 1976 Urban and Regional Planning Xerox University M icrofilm s, Ann Arbor, Michigan48ioe REGIONAL POLICY AND REGIONAL INEQUALITIES IN AUSTRIA: The Impact of Policy upon the Achievement of Planning Goals DISSERTATION Presented in Partial Fulfillment of the Requirements for The Degree Doctor of Philosophy in the Graduate School of The Ohio State University By William Harry Berentsen, A.B., M.A. * * * * * The Ohio State University 1976 Reading Committee: Approved By: Dr. George J. Demko, Adviser Dr. S.E. Brown Dr. Howard L. Gauthier ACKNOWLEDGEMENTS The study resulting in this publication was made under a fellowship granted by the Social Science Research Council and the American Council of Learned Societies. How ever, the conclusion, opinions, and other statements in this publication are those of the aurhor and not necessarily those of the Councils. I would also like to make a personal acknowledgement to the Social Science Research Council and the American Council of Learned Societies for their financial support and their efficient and friendly administration of my fellowship. I would, further, like to thank the Department of Geography at The Ohio State University, which gave me the opportunity to complete my dissertation by employing me as a teaching associate during 1975-1976. My adviser, Dr. George Demko, has been extremely helpful to me throughout my education at Ohio State, and I very much appreciate his help on this dissertation. No student could ever hope to work with a more concerned adviser, and I am very grateful for his friendship and influence on my education and life. I would also like to thank the other members of my committee, Drs. S.E. Brown, Warren Eason, and Howard Gauthier, who have all contributed significantly to my graduate education. I especially li appreciate their comments on this dissertation, and, in particular, Dr. Gauthier’s help with developing a methodology for the study. I am also indebted to Dr. Walter Stohr, Hochschule fUr Welthandel in Vienna without whom X could not ha\ ; completed my work in Austria. Dr. StOhr acted as an adviser for me in Vienna and helped me become oriented in the city. I am very appreciative of his help and friendship. I was also assisted and befriended by all of the members of Dr. StUhr’s Institute — Ewald Brunner, Hildegard Kaufmann, Herwig Palme, Uwe Schubert, and Anna Maria Skarke - and- I- want to thank them for making our lives in Vienna so pleasant. Two other special friends also helped me complete my work and better introduce my wife and me to life in Vienna. I want to thank Dr. Helmut Jeglitsch and Dr. Felix Jlilg for their assistance and their part in our pleasant year in Vienna. I would also like to thank Drs. Hansen, MacKinnon, and Swain of the International Institute f°r Applied Systems Analysis (I.I.A.S.A.), who all made helpful comments about my preliminary work. Several other people in Austria were also very helpful in assisting and guiding me, and I would particularly like to thank Drs. Kohlbacher (OROK), Matzner (Technische Hochschule) , PrombiJk (Stadt Wien), and Sauberer (Oesterreichische Institut flir Raumplanung). A great many other people in Austria helped me; and although there is not space to recognize them all, I want to acknowledge their assistance and thank them for it. My wife and I were also fortunate enough to receive considerable benefit from the excellent Fulbright Commission Program in Austria; ill our special thanks to Dr. Porhansl and his fellow workers in Vienna. We also benefitted from the experiences of Dr. Andrew Burghardt, who also completed his dissertation on an Austrian topic and who was helpful in providing a historical perspective on my work. Finally, the completion of my degree would not have been possible without the help and encouragement of my wife, Mele, who willingly accompanied me to every corner of Central Europe and accepted all the long hours and inconveniences. iv VITA July 8 , 1947 .... Born - Wenatchee, Washington 1969 ............... A.B., Dartmouth College, Hanover, New Hampshire 1970-1972.......... Teaching Assistant, Department of Geography, The Ohio State University, Columbus, Ohio 1972 ............... M.A., The Ohio State University, Columbus, Ohio 1972-1974.......... Teaching Associate, Department of Geography, The Ohio State University, Columbus, Ohio 1974-197 5 .......... Dissertation grant from the Social Science Research Council and American Council of Learned Societies in Vienna, Austria 1975-197 6 .......... Teaching Associate, Department of Geography, The Ohio State University, Columbus, Ohio FIELDS OF STUDY "Major Field: Geography Studies in Regional Economic Development. .Professors George Demko and Howard Gauthier Studies In Transportation. Professor Howard Gauthier Studies in Eastern Europe and the Soviet Union. Professors S.E. Brown, George Demko, Warren Eason v TABLE OF CONTENTS Page ACKNOWLEDGEMENTS........................................... ±1 VITA ............ v LIST OF TABLES ................... ...................... viil LIST OF FIGURES AND M A P S .............................. ix Chapter I. INTRODUCTION ................................... 1 II. LITERATURE REVIEW ................ ............ 4 Forces Affecting the Creation and Dissolution of Regional Inequalities ........................ 5 The Need for Regional Planning.............. 11 Two Regional Planning Strategies 14 • Regional Policy Experience................... 24 III. REGIONAL GOALS AND REGIONAL POLICY MEASURES IN AUSTRIA ......................................... 29 Introduction...................................... 2 9- . The Goals of Regional Planning......... 31 The Regional Planning Strategy .............. 33 Regional Policy Measures .......... 36 Conclusions ................................. 61 IV. DATA AND METHODOLOGY........................... 64 Regional Units ............................... 64. Data Sources .......... 68 Methodology ............ 69 V. REGIONAL CHANGE AND REGIONAL INEQUALITY IN AUSTRIA ............................... ... 78 Income Inequality ........ .................. 81 Unemployment................................. 91 Other Indications of Changing Regional Inequality................................. 93 Net Migration ............................... 100 VI. EVALUATION OF AUSTRIAN REGIONAL PLANNING.... 108 Introduction 10® ‘ Goal Conflicts in Austrian Regional Planning . 108 Policy Impact Analysis ....................... Ill vi TABLE OF CONTENTS Page VII. SUMMARY AND CONCLUSIONS................... 158 LIST OF R E F E R E N C E S ................................ 164 FOOTNOTES ......................................... 177 . vii LIST OF TABLES Page Table 1 provincial Income 1971 (Austrian Shillings) . 88 Table 2 Provincial Income Inequality ................. .. 89 Table 3 District Income ................................... 90 Table 4 Intra-Provincial Income Inequality ....... 91 Table 5 Average Annual Provincial Unemployment (Province of Residence ) .............. * .................. 92 Table 6 Factor Loadings ................................... 99 Table 7 Oblique Factor Analysis: Factor Scores ........................... 99 Table 8 Aid as a % of Total Provincial Industrial Investment, 1966-1970 ......................... 120 Table 9 Aid/industrial worker ............................ 122 Table 10 Gains from Redistributed Taxes as a Percentage of Municipal