Adam Drobniak, Lucjan Goczoł, Magdalena Kolka, Mateusz Skowroński THE URBAN ECONOMIC RESILIENCE IN POST-INDUSTRIAL CITY – THE CASE OF KATOWICE AND BYTOM ADAM DROBNIAK, LUCJAN GOCZOŁ, MAGDALENA KOLKA, MATEUSZ SKOWROŃSKI 1. Methodological remarks to the case studies Presented case studies was focused on recognition of the research problem connected with evaluation of resilience level of the selected post-industrial cities (Katowice and Bytom) in relation to other Polish cities, which often have diffe- rent circumstances of economic development (e.g. not always linked with a mi- ning industry). Among comparative cities the following were identyfied: Wro- cław and Gdynia. The selection criteria for the comparative cities to Katowice and Bytom inc- lude the administrative division of the country. Hence, for Katowice as the capi- tal of the NUTS2 Silesia region – Wrocław as the capital of the Low Silesia region was identified. While for Bytom as a town with the status of a county – Gdynia town, with the same status in administrative division and a similar popu- lation potential was indicated. Research tasks make up the solution to the problem posed included: – description of a socio-economic background of the analysed cities; – indication of changes impacting the analysed cities development during 1995-2010, which significantly had determined their development paths; – implementation of quantitative evaluation of identified changes on the analy- sed cities development paths. This was made by calculation of indexes reflec- ting: employment level, budgets revenues from companies’ profit taxes, level of population in both surveyed cities along with comparative ones. The Hill approach was used in that part of research (Hill et al. 2010); – identification of new developments in rebuilding Katowice’s and Bytom’s economic resilience; – formulation of conclusions referring to level of urban economic resilience with application of research findings from Simmie and Martin investigations (Simmie, Martin, 2009). 2. The Katowice case 2.1. Katowice – the socio-economic background of the city Katowice (306 thousands of inhabitants in 2010), as the capital of the Sile- sia Region (NUTS2 level, 4.6 million of inhabitants), is having the highest popu- lation and service sector potentials of the Upper Silesian Agglomeration (also called Silesia Metropoly)*. the Agglomeration remains the largest urbanised and * The city’s residents constitute approximately 16% of the Agglomeration’s population, and the potential of service sector is approximately 30% of the overall services’ sector potential within the Agglomeration. 88 THE URBAN ECONOMIC RESILIENCE IN POST-INDUSTRIAL CITY… industrialised area in Poland, numbering around 2 millions inhabitants. Its rapid social and economic development in the twentieth century was associated with a development of heavy industry, mainly mining and metallurgy sectors. The Agglo- meration covers two basic groups of different cities (Klasik, 2008, pp. 52-53), i.e.: – the first group includes the cities and towns numbering more than 100 thou- sands of inhabitants like: Katowice (the capital of the Silesia Voivodeship and the core city of the Agglomeration), Sosnowiec, Gliwice, Zabrze, Bytom, Ruda Śląska, Tychy, Dąbrowa Górnicza, and Chorzów; – the second group includes towns with population from 50 to 100 thousands of inhabitants, like: Jaworzno, Mysłowice, Siemianowice Śląskie, Piekary Ślą- skie and Świętochłowice. Just like in almost all the Silesia Region (Transformation, 1994), also in the case of Katowice and the Agglomeration processes of restructuring of heavy industry left their indelible ‘mark’ on the social and economic structures. The effects of structural changes in 1995-2010 were manifested inter alia in the level of unemployment, the number of companies, population’s potential, the size of investment (Business Central Europe, 1997; Drobniak, 2003). The scale of these effects was also different in relation to individual cities and towns of the Agglo- meration. Some of them, i.e. mainly Katowice, Gliwice, Tychy growed up to be leaders of change in terms of development of the service sector, attracting fore- ign direct investment, creation of new businesses and jobs. In other cities and towns (like for example: Bytom, Świętochłowice, Piekary Śląskie) the processes of restructuring traditional industries have had such a large socio-economic im- pact that the processes of their redevelopment – even now – are relatively weak (Suchaček, Wink, Drobniak, 2012). 2.2. Changes impacting the city development during 1995-2010 For Katowice the years 1995-2010 are the period of many positive and ne- gative changes. Up to 2005 the most negative impact on Katowice’s economy had changes in mining and steel industry sectors. During this period reduction of 300 thousands jobs in the Silesia region as a result of mining reform took place. At the same time the city itself and the region took attempts to create condi- tions for new development impulses. For instance, the Regional Contract for Silesia Voivodeship, which is the first example in Poland of document relating to regional policy including assistance for a region undergoing major changes of economic structure. In analysed period, in Katowice few essential investments were realised progressively changing its image and economic profile of the city, particularly in 89 ADAM DROBNIAK, LUCJAN GOCZOŁ, MAGDALENA KOLKA, MATEUSZ SKOWROŃSKI science, culture, trade, transportation, attracting foreign investment, creating high-class floor space for service activity. Significant changes, which certainly influenced the dynamics of deve- lopment of Katowice, in recent years are: financial crisis from 2008 resulting in decline of the foreign investors’ interest in the city, rejection of the candidature of Chorzów (neighboring town) for EURO 2012, and also the rejection – though in the second round – the application of Katowice to the European Capital of Culture 2016. A detailed list of the changes taking place in the city and its surro- undings is presented in the table below. Table 1 Changes in Katowice and its surroundings Year Changes in Katowice Changes in Katowice’s surrounding 1 2 3 – Foundation of Upper Silesian – Regional Contrast for Silesia Industry Park Voivodeship – first attempt in 1995 the country of programming a regional development – Foundation of the Katowice Spe- – Decision of General Motors to cial Economic Zone locate the Opel factory in Gliwi- ce (a city within Upper Silesian 1996 Agglomeration) – Foundation of sub-zones of the – Crisis in Katowice Special Economic Zone* mining and steel works – The beginnings of the process of sectors, re- Poland’s integration with the EU duction in 1997 – – start of the negotiations with employment six Central European countries, from 400 to including Polish about 100 – Opening the new building of the – Reform of Poland’s territorial thousands 1998 Silesian Library in Katowice division – creation fo 16 NUTS2 jobs regions – Closedown of – Decision of the Katowice Coal many mines 1999 – Mine closedown in the Silesia region – Application for bankruptcy of the – Creation of South Energy Con- 2000 – Numerous Baildon Steel Works sortium government – Opening of the first in Katowice – Creation of Polish Entrepre- reform of mi- office space in A class (Chorzow- neurship Development Agency ning sectors 2001 ska 50) – Foundation of the Academy of Fine Arts in Katowice – Opening the entertainment center – Act on financial support for “44 Point” – important element of investment assuming assistance 2002 complex changes in post-industrial from government budget for mo- district Załęże dernisation investment of up to 500 thousand. euro 90 THE URBAN ECONOMIC RESILIENCE IN POST-INDUSTRIAL CITY… Table 1 cont. 1 2 3 – Sale of the state shares in the Polish Steel Mills SA company to ArcelorMittal Poland 2003 – Restructuring and concentration of the mining sector – creation of the Coal Company S.A. – – Opening the Office space „Altus” – Integration of Poland to the EU 2004 (A class) – Opening of the biggest in the – Handover of the A4 motorway Silesia Region shopping and enter- segment passing through the Upper 2005 tainment centre “Silesia City Cen- Silesian Agglomeration and linking ter” it with Wroclaw and Krakow – The completion of a tunnel under – Postponing adaptation of the the Roundabout and Handover of euro by Poland the Katowice section of the DTS (main express road with the Upper Silesian Agglomeration 2006 – Location of the Rockwell Automa- tion in Katowice – the biggest in Central and Eastern Europe sup- plier of industrial automation – Opening of the Film Arts Centre in Katowice – Foundation of Science-Technology – Foundation of Upper Silesian Park Euro-Centrum (it develops Metropolitan Association, which technologies of obtaining energy gather 14 cities and town of 2007 from alternative sources Upper Silesian Agglomeration – Opening the Science and Music – Gradual Education Centre “Symfonia” improvement in the mining – Launch a complex revitalization of – Worldwide financial crisis sector the former Katowice mine, inclu- ding construction of: the communi- – Opening the B terminal at the cation system of the area, the Inter- Katowice Airport in Pyrzowice 2008 national Congress Centre, the new (the regional airport) allowing headquarter of the National Polish for service for 3.6m of passen- Radio Symphony Orchestra, the gers per year new headquarter of the Silesian Museum – The organization of the first European – Rejection of the