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Le Grand Paris. How would this project generate an economic growth?

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par Nicolas Saouaf
Reims management school - Master 2011
  

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A-d Example of Berlin

Because of historical reasons, we can see a gap between Paris, London and Berlin. Indeed, because of the soviet domination, the city has been unified in 1989, and until today discordance between western and Eastern Berlin can be notified. The city suffers of a large debt and also a strong unemployment rate.40

Berlin is a city-state representing one of the sixteen German «Lander». The city represents 896 Km2, with 3,4 million inhabitants. The city is governed by an institution named «Gross Berlin» which obtained its legal status in 1920 (Gross Berlin Act).

39 The Economist, London and Paris the rivals, 2008 http://www.economist.com/node/10849106?story id=10849106

40 Sénat, « Grand Paris : Un vrai projet pour un enjeu capital», 2011 http://www.senat.fr/rap/r07-262/r07-26244.html

Figure 4: Administrative map of Gross Berlin

41

Klaus Wowereit, actual mayor-governor of Berlin is elected by deputies of Berlin. Gross Berlin Act gives him a power on the urban development of the city, the economic decisions, the cultural actions, security, work issues, teaching area). As in London, all the decisions are centralized to the central power of Berlin42.

The transports are managed by the city council of Berlin: Verkehrsverbund (VBB) which ensures the public transports in the German capital. VBB is in charge of fares and operation of the transports.

The institution in charge of the development economic is named «Berlin Partner» and has the objective to work on the territorial marketing, to attract foreign Direct Investment. Berlin Partner is financed by the city and 160 companies43.

As we have already seen, the Gross Berlin is not competitive yet regarding Paris and London infrastructures. Nevertheless the city is growing fast, and its good localization between western and Eastern Europe makes Berlin a strategic place to be.

41 Map of Berlin, http://geneve-alger.tumblr.com/post/553322609/27-april-1920-gro-berlin-gesetz-verabschiedet

42 Sénat, « Grand Paris : Un vrai projet pour un enjeu capital», 2011 http://www.senat.fr/rap/r07-262/r07-26244.html

43 Ibid, 2011.

Also the fact to be the political capital of Germany (richest country of Europe), gives even more importance to the city. Its legal structure (Gross Berlin Act), is still nowadays a great organization in order to move fast. As in London most of the decisions are centralized for the entire region, which gives the possibility to adapt a global strategy easily.

This centralized power for the entire region is crucial. Berlin and London have much more advantages regarding this issue than Paris which is divided between every small suburban town. Paris has to be more adapted to the current global economy, with the capacity to change fast, which is the principal lack of the French capital regarding its two best European rivals.

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