Abstract

European governments are tending to perceive cities as sites of renewed economic dynamism and physical renaissance, and as places that can help to resolve social and environmental challenges. The paper presents three propositions for why the fortunes of cities in advanced economies may have improved. It then offers evidence from across Western Europe to assess whether they have done so, both in comparison with their past trajectories and in relation to smaller urban and rural areas. One finding is that cities in aggregate have experienced continued prosperity rather than decline and revival or accelerated growth. Another is that their overall position relative to smaller settlements does not seem to have changed greatly. Looking in more detail, however, there is more evidence of resurgence, as well as the opposite. National variations seem important and cities in Finland, Sweden, Ireland, Britain and Spain show signs of substantial economic improvement over the last decade. In contrast, cities in Germany have experienced a marked slowdown, albeit from a position of comparative prosperity at the outset.

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