General factors and dynamics of change

Since re-unification Berlin has experienced dramatic changes in its social and eco-nomic fabric. Deindustrialisation, suburbanisation of residents and retail, socio-economic polarisation and a major financial crisis of the public sector indicate the main recent challenges.

Policy responses

In this situation, the city's urban regeneration policy has various targets. Physical improvement is needed in the inner city and in large-scale housing estates in the peripheral areas, but economic and social development has to be supported as well. Consequently, Berlin's approach to urban regeneration is based on a mix of instruments and aims at linking public and private actors. In the case study, we looked at the programme 'Socially Integrative City', a local programme backed by national and EU-co-funding. It is implemented in 17 neighbourhoods 'with special development need' (7% of Berlin's inhabitants; in addition, there is an URBAN II area following a similar approach). In these neighbourhoods, socalled 'Neighbourhood Managers' try to assist development based on three principles: mobilising inhabitants and businesses to take a stake in the area's development, coordinating various activities, and assisting/initiating respective projects.

The programme started in 1999 for an initial period of three years and has been ex-tended until December 2006. In the period 1999-2003, public funds of approximately € 75 m have been spent on this programme up to now (excluding Urban II).

The study neighbourhood: Wrangelkiez, Boxhagener Platz, Ostkreuz
The Berlin study area is the south-eastern part of Berlin's inner city and combines three sub-areas. It includes two neighbourhood management neighbourhoods and a neighbourhood funded by the EU Community Initiative Urban II. Because of its proximity to the Berlin Wall, large parts of the area provide a very unique and contrasting experience. The lively Wrangelkiez neighbourhood in Kreuzberg (former western part) is known for its multicultural life and a mix of (Turkish) migrants and alternative lifestyles, whereas the neighbourhood around Boxhagener Platz (former east) suffered particularly from vacancies and it was only recently, after successful renewal of the building stock, that people (in particular young adults and students) started moving here. The URBAN II area (Ostkreuz) is characterised by fragmentation and a differentiated physical and social structure.

Key problems/challenges

Major problem in the research area are dereliction and vacant properties. Within the regeneration schemes, strategies against dereliction, based on temporary cultural and economic use, are playing an important role. With artists and cultural economies in formerly vacant premises, life is brought back to the side-streets, a positive image can be developed and local entrepreneurs can be supported.

A second major issue is the lack of a sense of community due to factors like high resident turnover, language problems, poverty and low self-esteem. One instrument of the programme targeted especially at community capacity building is the 'neighbourhood fund'. It provides a neighbourhood jury (51% randomly picked out of the residents' register) with a fixed budget (€ 500,000) and the responsibility for allocating the budget. The barrier for residents to apply for funds here is very low and the experiment turned out to be a success.

Progress

Whilst these two examples illustrate the success of the Berlin approach, their limits reach have to be acknowledged. Although some self-sustaining processes have been started, many activities are still dependent on public funding. Even more, all attempts to stimulate a positive atmosphere are counteracted by the major cutbacks in the German welfare system, the consequences of which are experienced by a high number of residents in the respective neighbourhoods.

Future plans

School and education will have high priority within the next phase of the neighbourhood work. In cooperation with the private economy, models will be tested to prepare school leavers for the demands of working life.

Based on the experience with the Neighbourhood Fund, and aiming at decentralised and citizen-oriented procedures, the Senate Department is developing a 'Framework Model' for an allocation committee, which is supposed to decide about the distribution of parts of the funding for a neighbourhood.