Globalization and the Crisis in Detroit

Abstract

Detroit’s fiscal crisis was generated by a complex interplay of factors, including institutional racism and auto industry globalization, which stimulated the departure of businesses and residents from the city. The preferential treatment of big business in questionable deals engineered by Kevyn Orr, the emergency manager appointed by the state’s Republican governor, has deepened the crisis at the expense of the citizenry, particularly the most vulnerable populations. Protest against the scandalous mishandling of Detroit’s bankruptcy (especially in the wake of the summer 2014 water shut-offs) has arisen from many quarters, including local activists, international watchdog groups, journalists, and the United Nations.