Left-Behind Places

What happens to regions when their main industries decline, why recovery is slow, and the social and political consequences.

Many countries have left-behind places: regions that were once prosperous but declined when their main industries shrank, and have struggled to recover.

Examples

Former coal-mining areas in the United Kingdom, Germany and the United States.
Steel and manufacturing towns in the U.S. Midwest and northern England.
Former textile towns in many countries.
In India, some districts that depended on declining industries, such as parts of old textile centres, faced similar challenges.

Why recovery is slow

Skills mismatch: workers trained for old industries may lack skills for new ones.
Limited mobility: older workers, homeowners and people with family ties often do not move away.
Selective migration: younger and more educated people tend to leave, reducing the talent pool.
Falling tax revenue: local governments have less money for schools and services.
Weaker attractiveness to new investment.

Research has linked economic decline in such places to higher unemployment, lower life expectancy, more disability claims and what economists Anne Case and Angus Deaton called deaths of despair: rising deaths from drug overdoses, alcohol and suicide among less-educated Americans.

Political consequences

Studies in several countries have found that voters in declining regions have been more likely to support populist parties or disruptive political changes, such as the 2016 Brexit referendum in the United Kingdom, where support for leaving the EU was higher in many declining areas.

Policy responses

Governments have tried retraining programmes, relocating government offices, investing in infrastructure and universities, and offering incentives to firms. Results have been mixed, and economists debate the best mix of helping people move and helping places recover.

The closed mine

A coal mine that employed a large share of a town's workers closes. Former miners, many in their fifties, struggle to find comparable jobs. Young people move to cities. Shops close as spending falls, and the local council cuts services as tax revenue drops. The shock ripples through the whole community for decades.

Thinking the market will quickly fix regional decline

Economists once expected workers to move to better opportunities or new firms to arrive quickly. Evidence shows adjustment can take decades, and some places never fully recover without deliberate policy.

Key takeaways

Left-behind places declined when their main industries shrank.
Skills mismatches, limited mobility and outmigration slow recovery.
Decline is linked to poor health, deaths of despair and political discontent.
Policy responses have had mixed results.