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The myth that coal inhibits structural change

In the debate on structural problems in NRW, and especially in the Ruhr area, it has again been alleged that coal policy has been impeding structural change.

Drum shearer loader

Prof. Christoph Schmidt, for example, who is currently President of the RWI (North Rhine-Westphalia Institute for Economic Research), is quoted as follows in the 1.5.2005 edition of Die Welt am Sonntag: “A reliable time to abandon coal subsidies for the good of the region (here meaning the Ruhr area) would have been much earlier, for full withdrawal should have been planned sometime in the seventies. Instead of spending it on coal the money would have been far better invested in education, research and knowledge transfer. This would have helped the region to progress.” The theme “Give me the money, I can use it better!” may indeed be a good sound-bite, but it is astonishing that such views are being held today, and by the RWI of all things. Their earlier scientific work indicated some time ago that coal mining has not had a structural impact in the region since the 1980s at least. Other industries, and especially the services sector, have dominated the scene since then – and the Ruhr is no exception. While these have brought in new jobs, they have failed, for various reasons, to create the level of employment required to offset previous losses. It can therefore be said that, from a regional perspective, the downsizing of the coal industry has in fact been introduced too quickly. For further information see here. Published by the German Hard Coal Association, Essen.

For further information see  here... (German version)

Published by the German Hard Coal Association, Essen.
www.gvst.de
V.i.S.d.P.: Axel Schappei,  Communications Department