Deficit and resource analysis

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Deficit and resource analysis starts with a list of unmet needs on one side and unemployed resources on the other. Unemployed resources include unemployed people with their abilities and capacities, empty buildings and disused factories, wasteland as well as underused potential of its natural and cultural heritage. Following the compilation of this list, a local action plan is developed by linking the deficits and available resources. This exercise may be carried out in a small neighbourhood.


It was applied to a former industrial quarter of Berlin and showed an employment potential of additional 250 jobs in this area alone.

The most famous example of this kind of analysis was the “London Industrial Strategy” which was carried out by the Economic Department of the Greater London Council in 1985. It asked the question: “Are Londoners so well housed; are their homes so warm and so well furnished, are Londoners so well clothed and so healthy that there is nothing for 400.000 unemployed people to do?” The result was an unique document which was created on the basis of an in-depth analysis of the whole economic and social life in Greater London showed a potential of half a million additional jobs which could be created.


Birkhölzer, K. (2008): Local Economic Development and its Potential. Berlin: