The Preservation of Economic Structures as a Main Challenge of Urban Development

Abstract

When it comes to preserving economic structures, a distinction needs to be made between cyclical and structural challenges. In the short term, the focus should be on cushioning the financial impact of the necessary containment and protective measures. However, the economic aid in exceptional situations should not result in permanent structurally preserving support for unprofitable sectors and segments. Ideally, measures should be taken that maintain economic structures in the short term with adequate aid packages, but are limited in time. That means that the aid programs are still favourable even if there are some inefficient windfall effects in the short term. In the long term, it is uncertain, how the experience gained through the COVID-19 pandemic will change future consumer and user behaviour and what structural changes will result. Historical experience is only partially transferable to today’s digital age. At present, a scenario that envisages a further increase in the proportion of online retailing with an accompanying greater market concentration of retailers and delivery service providers seems likely. Non-discriminatory access to online shopping platforms is, therefore, a key prerequisite for preserving competitive economic structures. In terms of urban development, a strong increase in online shopping will bring about further challenges, among other things, in the development of inner-city space and the establishment of new mobility concepts. In addition, the pandemic could reinforce or even perpetuate the existing demographic trend of people migrating to the outskirts of large cities.