Lack of Industrial Restructuring Caused Detroit's Bankruptcy

Published in The China Times
(China) on 23 July 2013
by Editorial (link to originallink to original)
Translated from by Elizabeth Cao. Edited by Phillip Shannon.
A perpetually prosperous world is very difficult achieve, so though it was alarming to see Detroit declare bankruptcy, it also serves as a reminder to Taiwan to stay alert.

In the past, Detroit was internationally known as the Motor City. In its heyday, car factory production lines worked day and night to constantly spit out brand new cars to be shipped worldwide. The automotive industry not only brought profit and revenue for the government, but also provided employment to large numbers of people.

But in today’s Detroit, the factories are shut down and migration has caused the city to have nearly 80,000 abandoned, empty houses, just like a depression-era ghost town. Its former glory cannot be found and now it cannot afford any more debt; it will become the largest city in American history to go bankrupt. Detroit has actually been on the decline for the past six decades, but in such a long time, there should have been plenty of opportunities to restore this downward spiral. However, Detroit was never able to fix itself for three reasons: failed industrial restructuring, poor governance and heavy fiscal burden.

First of all, the Motor City became too dependent on a single industry and ended up losing in this respect. In the domestic market, American automobiles have suffered fierce competition from Japanese automakers and were gradually defeated by these foreign competitors. Because of the United Automobile Workers union’s strong influence, good benefits and generous retirement conditions created a heavy cost for the industry to bear.

Detroit put all of its eggs in this one basket and did not try to diversify and restructure to create more industrial activity. Thus, when the American auto industry began to shrink, the economic benefits of automobile production for the city began to wilt as well. The last straw for this American stronghold was the financial crisis.

Detroit’s population was nearly 2 million in the ‘50s, but it started to decline in the ‘60s. The automotive industry was becoming more automated, which led to outsourcing and layoffs. That, coupled with ethnic conflicts, led to migration out of the city. Detroit lost its sole breadwinner when firms had to move, which reduced job opportunities as well as local government tax revenue. Detroit’s decline intensified, and now, with a population less than 700,000, over 80 percent of which is black, it is rated third in poverty, with an unemployment rate of about 20 percent.

Another issue in Detroit was governance. Lack of encouragement for industrial restructuring early on affected the foundation for the development of Detroit. The reduction in revenue resulted in a decline in the quality of public services, which led to crime and corruption. Its elite population fled and the flight of industry led to even less tax revenue, making it that much harder to break this vicious cycle.

The fiscal deterioration is what led to Detroit’s bankruptcy. For decades, the Detroit government was borrowing to meet expenditures and the elected officials were starting indiscriminate welfare programs, leading to ever-expanding debt. When the housing market collapsed, the financial crisis further shattered the Detroit economy, causing Detroit to go $380 million in debt with long-term liabilities amounting to $20 billion. Looking at the future, it is doubtful that Detroit will garner momentum for development and growth.

As can be seen from Detroit, urban development must be a timely transformation in which you cannot always rely on one single industry. Global competition is fierce, and resilience must be cultivated as well as a number of competitive industries which are less likely to decline because of transfer opportunities.

Taiwan also faces this issue in this era of globalization. There is no longer such a thing as the Centennial Science and Technology City. The former Kaohsiung Export Processing Zone is no longer its once glorious self. With the new Science Park, who dares to say what it will be like in 10 years? Manufacturing-based cities that do not know how to transform themselves will be crushed and enter into a depression.

The short life cycle of electronic products, like Taiwan’s key industries today, may soon appear tired. If you cannot grasp the trends early and actively develop other suitable industries, you may find that Taiwan’s rocket fuel will burn off too quickly if Taiwan’s economy is not restructured.

Industrial transformation requires a forward-looking view of overall government planning. In addition to making the right choice, you must also have the drive to continue going. This work may not have short-term political gains. However, if it does not happen today, then we may regret it tomorrow and 10 years from now it will be too late. Taiwan may become Detroit in 20 years if it does not begin to support a new major industry. If we do not transform ourselves, then we also may soon begin to wither.


各地山區疑似發生多起「狂犬病」案例,透過媒體報導,已引起諸多民眾恐慌。這次防疫危機在於,動物狂犬病係農委會的業務或職權範圍;但如果造成人的感染,則屬衛生福利部的範疇。衛生福利部剛成立,擁有比以往更多資源與權力。這次狂犬病防疫危機,考驗衛生福利部的整合能力。

 問題在於衛生福利部和農委會分屬不同的專業領域,原本就有整合的問題。再根據媒體報導,這次狂犬病通報似乎慢半拍(防疫通報系統可能也存在問題);在狂犬病防疫資訊不夠充足的前提下,難免造成防疫工作整合或動員的不足。

 從媒體報導看來,目前狂犬病整合機制似乎仍存在以下三大盲點:

 第一,防疫資訊不明:由於狂犬病是致命性病毒,但從媒體報導顯示,對於狂犬病是如何進到台灣,目前相關單位並無明確答案(所以似乎也無法阻絕於境外)。

 狂犬病已引起民眾恐慌,民眾可從哪裏獲得正確資訊,似乎也沒有明確管道。民眾若要報案或通報疫情,到底要問農委會或衛福部,也沒有清楚的規範。

 第二,防疫動員不足:不論是農委會防檢局,或衛福部疾管署,似乎都沒能有效進行動員。資訊不足固然是因素之一,更重要的是,因為台灣已經近半世紀沒有發現過狂犬病毒。使得相關機關或人員的危機意識不足;不論衛福部(疾管署)或農委會(防檢局)可能都還沒建立有效的緊急動員機制。

 第三,跨域合作不夠:如前文所述,狂犬病防疫,需要跨部會與跨層級充分密切的合作。但從目前政府的政策(或動作),似乎讓人感受到跨域合作的不足。衛福部似應透過目前已建構的災害防救辦公室進行跨部會整合。

 衛福部既已升格,有責任在短時間內,進行整合性的防疫資訊整合,狂犬病防疫總動員,以及建立防疫跨域合作機制。其目的,不僅在防止狂犬病疫情的擴散;也在讓民眾更清楚疫情的現況,同時配合政府進行疫情預防的工作。
This post appeared on the front page as a direct link to the original article with the above link .

Hot this week

Australia: Donald Trump Is Not the Only Moving Part When It Comes to Global Trade

Pakistan: American Jingoism Hurts Americans

Turkey: Europe’s Quiet Surrender

Nepal: The Battle against American Establishment

Canada: New York Swoons over an American Justin Trudeau

Topics

Australia: Donald Trump Is Not the Only Moving Part When It Comes to Global Trade

Ireland: As Genocide Proceeds, Netanyahu Is Yet Again Being Feted in Washington

Canada: Canada’s Retaliatory Tariffs Hurt Canadians

Spain: A NATO Tailor-Made for Trump

OPD 26th June 2025, edited by Michelle Bisson Proofer: See...

Germany: Trump’s Words and Putin’s Calculus

Palestine: Ceasefire Not Peace: How Netanyahu and AIPAC Outsourced Israel’s War To Trump

Mauritius: The US-Israel-Iran Triangle: from Obliteration to Mediation

Related Articles

Indonesia: US-China: Tariff, Tension, and Truce

China: US Chip Restrictions Backfiring

Thailand: US-China Trade Truce Didn’t Solve Rare Earths Riddle

Taiwan: Taiwan Issue Will Be Harder To Bypass during Future US-China Negotiations

Hong Kong: Amid US Democracy’s Moral Unraveling, Hong Kong’s Role in the Soft Power Struggle