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12

(Phoenix-West). All these important preconditions for a successful
development of these new economy activities have been accepted by the state
government of NRW. The key elements of the dortmund-project are part of
the list of the most important cluster activities which are supported and
supposed to be subsidised by the state government and the EU in the years
2002-2006 (Projekt Ruhr, 2002).

- Also the activities to strengthen human capital in the IT sector have been
successful: three start-up competitions have been realised. The ITC, a school
for a two year course for IT professionals, is in its second year, the number
of students in informatics has grown significantly; 300 experts are voluntary
consultants and business angels for start-ups.

- In Dortmund the total number of the employees fell from 194,684 in 1998 to
190,223 in 1999, but rose again to 197,214 in the year 2000- The number of
unemployed people has been reduced from 41,001 in 1998 to 36,188 in 2001
(30.6.).

- The number of jobs and firms () in the IT industry (mainly software industry)
grew from 9,650 (440) in 1999 to 12,200 (645) in 2001; in the microstructure
technology industry from 950 to 1281 and in the logistics industry from
about 12,000 to 13,000.

But it should not be forgotten that these results happened mainly in the years of the
hype and the initial crisis of the new economy, and that rates of growth like 30%
between 1999 and 2001 in the IT sector are part of the past and will not appear again
in the future. So the aim of 60,000 jobs in the anchor industries seems to be a very
voluntarist provision (Bomer, 2000b, 11). Finally all main indicators of the general
strength of the economy of the city of Dortmund have not become fundamentally
better than in the past.

Some aspects of the accelerating crisis in Dortmund:

- Materna, the largest independent software house in Dortmund, decided to
cancel the new construction of the headquarters office block at Stadtkrone
Ost, a 100 mill. Euro investment. Also the 45,.000 square meters Europa-
Center investment at this site is has not left the pipeline. (The 2001 turnover
of office space has been about 25,000 square meters (Wirtschafts- und
Beschaftigungsforderung Dortmund, Immobilienmarkt Dortmund 2002).

- The state government of Northrhine Westfalia decided to launch a huge 1.4
bill. Euro budget expenditure cut in the year 2003 because of the fast growing
budget deficits.

- The city of Dortmund budget deficit has exploded from a balanced budget in
the years 1999 and 2000 to the following figures:

Table 5 Prospected budget volumes (without investments) and deficits of the city
of
Dortmund (2002-2007) in , Euro _______________ _________________

Year_______

2002

2003

2004

2005

2006

2007

Expenditures
(bill. Euro)

1.471

1.535

1.630

1.652

1.659

1.663

Deficit
(mill.Euro)

116,8

189,2

253,6

261,9

269,7

258,8

Deficit in %
of the budget

7.9

11.8

15.6

15.9

16.3

15.6

Source: Stadt Dortmund, Drucksache 02683-02, 3.5.02.



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