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  • Why is Berlin so dysfunctional? - Poor and sexy
    https://www.economist.com/news/europe/21731837-unlike-other-capitals-germanys-drain-rest-country-why-berlin-so


    Auf der Suche nach Ärger - dem bürgerlichen Schreiber fehlt die aalglatte Servicekultur der gleichgeschateten Metropolen.

    Unlike other capitals, Germany’s is a drain on the rest of the country

    Dec 2nd 2017 | BERLIN

    AT A crossroads in the middle of Tegeler Forst, a wooded part of north-west Berlin, visitors can admire the city’s longest-serving provisional traffic light. Erected in 2013 after a burning car had destroyed the pillar on which the lights were mounted, it was meant to be replaced by a more permanent structure within a few weeks. When a city lawmaker asked the government why, four years later, the lights still had not been fixed, he received an interesting response: owing to changed regulations, calculating whether or not the new structure would fall down had become “very laborious and difficult”. The government would not specify how much longer it would take.

    The traffic-light saga illuminates a wider problem. Berlin, the capital of Europe’s most successful economy, is surprisingly badly governed. The new airport, the city’s biggest flagship project, missed its seventh opening date earlier this year and may not open until 2021, ten years after it was originally supposed to. The jobless rate is among the highest in the country. Schools are dismal. Courts and police are so overworked that hundreds of millions of euros in fines and taxes have not been collected; and the city failed to keep tabs on Anis Amri, the jihadist who killed 11 people with a lorry last Christmas, despite warnings about him three weeks earlier.

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    Astonishingly for a capital city, Berlin makes Germany poorer. Without it, Germany’s GDP per person would be 0.2% higher. By comparison, if Britain lost London, its GDP per person would be 11.1% lower; France without Paris would be 14.8% poorer. “Berlin’s economic weakness is unique among European capitals”, says Matthias Diermeier of the Cologne Institute for Economic Research.

    The city’s dysfunction makes everyday life more irksome. In some boroughs the streets are constantly clogged by piles of rubbish, not to mention inexplicable roadworks that make little or no progress. Registering a new car can take weeks, depriving new owners of a means of transport and car showrooms of space for new stock. This summer desperate couples travelled out of town to get married because short-staffed town halls could only offer wedding dates months in the future. “It is hard to escape the impression that Berlin’s government has a certain contempt for its citizens”, says Lorenz Maroldt, editor of the local daily Tagesspiegel, who writes a newsletter chronicling the city’s administrative hiccups.

    Berlin’s woes are partly a consequence of structural changes. Before the second world war the city was an industrial hub. When it was divided by the victorious allies, many firms moved their offices and factories to West Germany. As an anti-communist bulwark, West Berlin was heavily subsidised, but not an attractive place to set up a business. After unification, firms that had re-established themselves in Germany’s southern industrial clusters had little reason to move back. Instead the city attracted bohemians, lured by low rents and large numbers of abandoned factories and warehouses that made ideal artists’ studios or rave venues. These new, hip residents earned little and paid little tax. In 2003 Klaus Wowereit, a former mayor, described Berlin as “poor but sexy”.

    The city’s economic fortunes are improving. A heavy dose of austerity in the early 2000s averted bankruptcy. Startups have moved into the artists’ warehouses, making Berlin the second-biggest European tech hub after London. Its rough-and-colourful image has attracted tourists. The city’s population is growing.

    Yet the bureaucratic dysfunction continues. One culprit is the complex division of responsibilities between the city and its boroughs. This makes it easy for officials to pass the blame for problems back and forth without doing anything about them. (By contrast, cities such as Hamburg or Munich have centralised their administrations to improve accountability.) That the austerity measures were implemented in a slapdash fashion probably did not help either. But the main reason, Mr Maroldt believes, is cultural, going back to Berlin’s historic anti-capitalist and anti-technocratic streak: “We have a deeply held suspicion of anything that smacks of efficiency and competence.” Abandoning that attitude may make life in Berlin easier. For some, no doubt, it will also make it less sexy.

    #Berlin #Gentrifizierung