Abstract

Detroit, at one time referred to as the Auto Capital of the World, was one of the top cities of the United States. However, starting in the 1960s, the city’s fortunes declined drastically. As people moved out of the city, several businesses closed shop and the tax base dwindled. Consequently, Detroit’s financial state went from bad to worse. The case recounts the rise and fall of the city. It traces the events that led to the city’s bankruptcy. It also discusses some of the revival efforts made by the city administration and residents. The case ends with a brief discussion on the future prospects for the city of Detroit.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• understand the background that helped make Detroit a prosperous city between 1900 and 1950
• critically analyze the local government’s efforts to revive Detroit’s economy
• analyze the factors that led Detroit to bankruptcy
• assess the future prospects of Detroit in light of the financial restructuring and recent revitalization efforts

Keywords

City competitiveness, Business Environment, Public Policy, Governance, Strategic Management, Revive economy, Financial restructuring, Detroit, Bankruptcy, Job flight, Urban blight,