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Unformatted text preview: El-Sharkawy 1Hani El-SharkawyDr. Vecchiola Honors 2000Institutional ChangeContributing to the restructure of Detroits economy is one thing, but to be able to actually change it is another. It isnt really possible for four college students to be able to make a noticeable impact on the citys economy based off their actions alone. There would need to be more work and help from somewhere or someone bigger. This is where institutional change comes into effect. Without making any changes to the structures, values, or policies, we will not be able to ensure the long term success of our actions. Institutional change is most common to occur in issues of a governments economy, so this stresses the importance of it for our plan to fix the economy of Detroit. The best institutional change the government can offer the city of Detroit is financial aid through grants and loans, which could be done most effectively by the federal government since Michigans economy as a whole is in shambles. As students we can cause this change to happen by working with other students and our organization to raise awareness of this issue and convince the government how their help will in turn fix Detroits economy.One of the main causes of Detroits lack of economic growth and decline that our group focused on was the big three auto companies. The heavy reliance on this one industry has caused the citys economy to be incompatible with the changing economy of the US and the world. With rising from foreign automakers in the US the big three werent ready or capable to successfully compete with them in the coming years. They had to face near bankruptcy had it not been for the massive infusions of financial aid from the federal government to help them avoid bankruptcy El-Sharkawy 2( Mufson). Now they are facing new challenges on how to compete effectively with the foreign auto companies and how regain a positive profit once again. Now what they face is having smaller companies making fewer cars with less employees and dealers (Mufson). General Motors and Chrysler specifically have had the rougher road to go through to avert bankruptcy and to try and regain a level playing field in the auto industry. They will need to continue to come up with new ways to bring back their success and continue to make institutional changes though their own agents, who are the presidents and CEOs.There are many changes that can be done and need to be done to help out our economy here in Detroit. Not just working together in community organizations, or just being granted money from the government will help the economy out itself. There needs to be work put in by both sides of the table to ensure a successful transition from economic decline to prosperity. A stronger involvement in the economy of Detroit by the government is needed to ensure stability...
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This note was uploaded on 05/04/2010 for the course HON HON2000 taught by Professor Carlavecchiola during the Winter '10 term at Wayne State University.
- Winter '10