Munyankindi 1

Jean Munyankindi

Mr. Hellmers

English Composition II

28 November 2020

Detroit’s Recovery

Since the start of the industrial revolution in the 19th century, North America has been a

pioneer of manufacturing worldwide. The boom in manufacturing led to American cities

becoming densely populated and their local economies booming. Detroit is a great model of how

an urban city came about at the height of the automobile production in the 1950s. Starting in the

1990s, the flight of manufacturers to other countries in search of cheaper labor jumpstarted the

desertion. The financial crises of the 1980s and the 2000s added fuel to the fire, leaving Detroit

city and its surrounding area, bankrupt, crime infested, and almost nonfunctioning. In fact, the

population shrunk from 2 million to 700,000 by 2014 (U.S Census Bureau). Since formally

declaring for bankruptcy in late 2013, Detroit has made great strides on the road to recovery. To

continue the multifaceted rebuilding today, the stakeholders need to apply policies and

investments that are data driven, remedy the neglection of African American communities, and

correspond to needs of the 21st century economy. The stakeholders include government bodies

and agencies, investment banks and private investors, and non-profit organizations. In this paper,

I reference experts, data from government agencies, and primary document from organizations. I

do not try to examine the success or setbacks of Detroit’s recovery. I, mainly, recommend

different, but unoriginal ways of remaining on the course of recovery.

Munyankindi 2

The financial and economic problems are not unique to Detroit, many urban cities have

experienced and are currently experiencing the same. Detroit’s leadership failed to react, or

sometimes reacted badly, to available data about the city’s financial health. Data could be used to

effectuate meaningful reform for Detroit’s financial and economic agenda. Analyzing data gives

hope for the Detroit area’s competitiveness. Contrary to what many believe, Detroit has not

stopped being an innovation hub. The innovation capacity jumpstarted by the industrial

revolution in the United States still lingers in Detroit. Although globalization and the financial

crises left the capital without its usual basket of manufacturing jobs, andthe knowledge behind

the boom never left. In fact, the erudition grew overtime. As Detroit was losing its dominance as

the manufacturing center of the auto industry, it was amassing a larger share in innovation in that

sector (Hannigan et al 620).

The job-to-skill mismatch was another hurdle Detroit had to overcome on its road to

recovery. The job to skill mismatch can be a hindrance to positive recovery. Also, noting the

trend in the mismatch can help prevent future setbacks. For example, back in 1999, there was

already was evidence of a skills mismatch in the Detroit area jobs cluster. As more overqualified

applicants applied for entry-level jobs, companies began posting skilled jobs, like registered

nurses, designers, and skilled crafts people (Sarbaugh et al 28 ).

There’s a tendency to blame the city’s bankruptcy on the most recent administration. But

the data shows mismanagement, and bad monetary decisions were made by almost all

administrations since World War II. There was the straining of Detroit’s two pension funds

going back to the 1970s, debts soaring at high percentages, layoffs of city workers, reckless
Munyankindi 3

borrowing by different mayors, and failure to take advantage of the prosperous periods to reform

(Gallagher & Bomey).Data on non-financial, non-economic or non-business city services also

indicate the status of the road to recovery. The condition of public spaces and facilities gives an

insight on how the community is improving. In Detroit case’s, in 2018, 275 parks were being

maintained compared to 25 in 2013; the city installed 65,000 street lights, added 150 more police

officers, spent $24 million on public transportation in 2014 (Burns). This is remarkable

especially considering the city’s historic blight and desertion problems. Data can be useful in

analyzing the current population make up of Detroit. According U.S Census Bureau, the Detroit

area has a population of 670,031: made up 78% African Americans, 14.6% white alone, 0.3%

Asian, 1.6% Native American, 10.3% White alone not Hispanic Latino (U.S census bureau).

Here is a more informative break down:

Figure 1 from: US Census Bureau

It is important to also quantify the amount that private non -profit entities have been

spending on the city’s revitalization. The city’s financial handicap meant that private well-

wishers’ contribution took on increased significance. In addition to noting the significance of key

players like foundation’s involvement, remarking the volume of funding is equally important.

For example, “Michigan-based foundations authorized $382.5 million in grants to Detroit NPOs
Munyankindi 4

community and economic development activities” (Thompson 556). Specifically, Detroit

Neighborhood Fund received $15 million from the Ford and Kellog Foundations (557).

“ The problems that beset Detroit are not solely economic. The fate of Northern industrial cities

was fundamentally entangled with the troubled history of race in the twentieth-century

America”(Sugrue Preface).

While economic and financial factors definitely play a part in the survival of any large,

urban environment, there are also sociological factors to consider as well. Therefore, the

economic recovery for Detroit should revolve around remedying the African American

communities of the city. In a city of where African Americans make up 78% of the population, it

would be counter-productive to revitalize the economy without properly including the

community. Terressa Benz’, of Oakland University, out of indignation of our current court

system and presentated of the victim perceptive: “…this perspective understands that racism

does not simply go away because it is illegal” (52). This is applicable to the economic resolves

needed for the African American communities in Detroit.

Stakeholders must help build upon the entrepreneurial spirit of African Americans in

Detroit by acknowledging the historical discrimination from banks and financial institution

against Black entrepreneurs. Jamie Dimon, the CEO of JP Morgan and Chase’s recognizes that

minority small business owners fuel Detroit’s spirit of business. He goes on to point out that by

lowering the barriers to business creation, the whole city benefits. Furthermore, in an interview

with 60 minutes’ Leslie Stahl, he is questioned about the historical definition of “risky” potential

lenders. Stahl is referring to the tradition of sidelining of African American entrepreneurs from
Munyankindi 5

acquiring loans, merely just because the banks assumed that they would be unable to repay.

(“Jamie Dimon’s data-focused investment in Detroit” 5:50-6:50).

The housing market need continuous fixing to benefit more African American

homeowners. Their neighborhoods endured years of white-flight (white neighborhood relocating

to the suburbs) due to the racist mischaracterization of Blacks. To remedy this injustice, there

needs to be a conscious strategic effort to move business districts and other activity hubs near

neighborhoods that are, and were, defined as “crime infested” or “bad”. Mark Jones conducted

study- on how the characteristics of reviving neighborhoods have increased property value in

Detroit, and he found out: “Houses in neighborhoods near major activity nodes gained nearly

$55,0000 in value from 2014 to 2017. Houses not adjacent but within 2 miles gained almost

$27,500” (Jones 12). To see an illustration of part of Jones’ findings see figure 2.
Munyankindi 6

Figure 2. Sales Quartiles Maps from: (Jones 15)

For higher education, universities must balance making high quality educational

programs accessible to African American students while factoring the unique trajectory students

might take due to their financial circumstances. The placement of the education institution is

important. In this specific case, universities in the Detroit area should purposefully integrate in

African American communities surrounding them. An example of this: Wayne State University

has been able not only secure funding for projects that advance academic research but also deal

with community matters due to its strategic placement within the community (Briller 162).

Another initiative from WSU is the “Detroit Revitalization Fellows Program which hopes to

form cohorts of future leaders in the Detroit community. (160)” This is an example of an

educational institution taking a bold initiative in serving the Detroit community. This time

around, like mentioned above, there must be a non-negotiable emphasis on equality. After the

remedies are applied, no discrimination of any kind can be tolerated.

Furthermore, Detroit is in position to compete in a 21st century globalist world economy.

The interconnectedness and connectivity of Detroit’s innovation knowledge provide a significant

advantage to other markets. After studying the Detroit cluster, Thomas Hannigans and colleagues

conclude that the Detroit knowledge cluster is strong enough to attract excellent automotive

companies. In addition to potential outside investors, Detroit is investing itself. The city is

focusing on self-reliance when it comes to food supply chain. This is not just a 21st century trend

for city folks, it’s imperative for local food security. In 2010, five farms and hundreds of

community gardens were boosted in places left in ruined by the industrial past (Giorda 529).
Munyankindi 7

Private entities have been key players in the revitalization of Detroit. The flight of

Detroit’s tax base and mismanagement and budget cuts by city hall left a vacuum on addressing

direct revitalization of communities. Foundations remarkably redefined philanthropy. Instead of

only providing financing for projects, they create and execute initiatives in collaboration with

community organizers. As Thomson observes “…their increased activism, coordination, and

control of nongovernmental resources for revitalization in Detroit provided them a role in

governance that was independent of the city government” (564). Opponents of large foundations

involvement disapprove of their economic ideology. Many refer to them out as proponents of

neoliberal urbanism and accuse them of uniting with politicians. They are ready to cut services,

that the most precarious Detroiter needs. Daniel Clement and Robert Kanai, of the University of

Miami, disprove of the Kresge foundation’s founding of the Detroit Future City Initiative. They

say that the foundation intentions do not have the average urban Detroiter’ best interest

(Clement & Kanai 120). Thomson argues that the best fix is to solicit direct input from

community level organizing (Thomson 566).

Although a great tool to propel Detroit’s economy, there is caution of how regionalism

can revive the lingering cloud of obvert racism and segregation. Regionalism is defined as “the

theory or practice of regional rather than central systems of economic affiliation. In post-crisis

Detroit, regionalism helped unite at the metro level in addressing more dire urban problems that

were ignored on the federal and state levels of government. As Michael Indergraad, of St. John’s

University found out: the new regionalism created a platform that is aligned with elite interests

and does not privilege less advantaged households and areas (145-147).
Munyankindi 8

The “Detroit Future City 2012: The Economic Growth Element: The Equitable City” is a

strategic framework published by the non-profit organization Detroit Future City. Here is a

description of the Economic Growth section of the proposal:

“The Economic Growth element proposes strategies to grow Detroit’s economy for all
Detroiters by supporting economic sectors in Detroit that have already shown success in
job creation including digital and creative jobs, industrial employment and
entrepreneurship, and attracts new residents and businesses”(Detroit Future City)

The Economic Growth Element is a part of a six element (Economic Growth, Land Use,

City System, Neighborhoods, Land and Building Assets, Civic Capacity) approach in integration

of planning of the framework (Economic Element). It’s important to note that Economic Growth

Element does recommend starting from scratch. Actually, it recommends building on already

present and successful sectors to boost the recovery. Even before the implementation of the

strategic planning, the process of assembling the plan received praise due to its’ emphasis on

public participation.

Critics of the plan refute its’ Neoliberal aspects that will only benefit the elite and revert

any progress made in advancing green capitalism. In their article arguing about the shortfalls of

Detroit Future City Daniel Clement and Robert Kanai argue how DTC is just a façade to

drastically shrink inner city neighborhoods that are already underprivileged (380).

To sum up, thanks to globalization and gradual decline and shutdown of factory work,

many urban metropolises in the United States have seen good and bad financial times. The vital

signs of a recovery in Detroit are present in the data, an example being the unemployment rate.
Munyankindi 9

The unemployment rate dropped from 17.0 to 4.5 % from 2010 to 2019 respectively (Bureau of

Labor Statics). The data analysis element serves as an indicator, the race element is a reminder of

the need for remedy, and the idea of streamlining to a competitive 21st century market cluster

puts; it is these three aspects that put Detroit back on the map.
 Munyankindi 10

Works Cited

Briller, Sherylyn, and Andrea Sankar. “Engaging Opportunities in Urban Revitalization: Practicing

Detroit Anthropology.” Annals of Anthropological Practice, vol. 37, no.1, May 2013, pp. 156-

178. EBSCOhost, doi 10, 1111/napa. 12022.

Burns, Gus. “It’s been five years since Detroit declared bankruptcy. Here’s what’s changed”. Mlive.com,

18 Jul 2018. https://www.mlive.com/news/detroit/2018/07/a_look_at_changes_in_detroit_a.html.

Accessed 30 November 2020.

Detroit Future City. “Detroit Future City Strategic Framework.” Detroit Future City, Media Genesis,

2020 https://detroitfuturecity.com/strategic-framework, Accessed 30 November 2020

Gallagher, John; Bomey, Nathan. “How Detroit Went Broke: The Answers May Surprise You- and

Don’t Blame Coleman Young.” Detroit Free Press, 15 Sep. 2013.

https://www.freep.com/story/news/local/michigan/detroit/2013/09/15/how-detroit-went-broke-

the-answers-may-surprise-you-and/77152028/. Accessed 30 November 2020.

Giorda, Erica. “Detroit. Growing a Different Future. Addressing Global Threat with Local Solutions to

Re-Imagine the City.” Appetite, vol. 56, no.2, April 2011, pp. 529-530. EBSCOhost, doi:

10.1016/jappet.2010.11.203.

Griffin, Toni; Dan Cramer, and Megan Powers. “Detroit Works Long-Term Planning Project; Engaging

Strategies for Blending Community and Technical Expertise” Buildings 4.4 (2014): 711- 736.

Crossref. Web.

Hannigan, Thomas J., et al. "Thriving Innovation amidst Manufacturing Decline: The Detroit Auto

Cluster and the Resilience of Local Knowledge Production." Industrial Corporate Change, vol.

24, no.3, June 2015 pp. 613- 634.

 Munyankindi 11

Indergaard, Michael. “Detroit Regional Question.” City & Community, vol.14, no.2, June 2015, pp. 138-

150. EBSCOhost, doi:10. 1111/cico.12107.

Jones, Mark. “Characteristics of Neighborhood Revitalization in Detroit.” Michigan Journal of

Business, vol. 11, no. 2, Jan. 2019, pp. 4–23. EBSCOhost, search.ebscohost.com/login.aspx?

direct=true&db=b9h&AN=137636300&site=ehost-live.

Klier, Thomas H., and James Rubenstein. “Detroit Back from the Brink? Auto Industry Crisis and

Restructuring, 2008-11.” Economic Perspectives, no. 2, June 2012, pp. 35–54. EBSCOhost,

search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=77393271&site=ehost-live.

LeDuff, Charlie. Detroit - An American Autospy. London: Penguin Books, 2013.

Presbey, Gail M. “Globalization and the Crisis in Detroit.” Perspectives on Global Development &

Technology, vol. 14, no. 1/2, Jan. 2015, pp. 261–277. EBSCOhost, doi:10.1163/15691497-

12341344.

Sarbaugh-Thompson, Marjorie, et al. “Organizational Mismatch in Urban Labor Markets: The Detroit

Case.” Social Science Quarterly (University of Texas Press), vol. 80, no. 1, Mar 1999, pp. 19-36.

EBSCOhost, https://web.b.ebscohost.com/ehost/detail/detail?vid=4&sid=627309b4-b0b2-4611-

“Regionalism.” New Oxford American Dictionary. Accessed 30 November 2020.

Sugrue, Thomas. “The Origins of An Urban Crisis: Race and Inequality in Post War Detroit.” 2nd Edition

ebook, Princeton University Press, 2005.

Thomson, Dale E. “Donor-Driven Democracy? Governance Implications of Foundation Dependent

Revitalization.” Journal of Urban Affairs, vol. 41, no. 4, Apr. 2019, pp. 551-569. EBSCOhost,

doi:10.1080/073552166.2018.1451254.

Walsh, Dustin. “Detroit Chamber Launches New Online Data Dashboard.” Review of Detroit Regional

Chamber Data Center” by Headlight Data. Crain’s Detroit Business, 1 April 2019.
 Munyankindi 12

http://sinclair.ohionet.org:80/login?url=https://search.ebscohost.com/login.aspx?

direct=true&db=b9h&AN=35906471&site=ehost-live. Accessed 15 Nov. 2020.

U.S Census Bureau

60 minutes. Dir. Peggy Eng. Perf. Lesley Stahl and Jamie Dimon. 2019. Online.