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1. Introduction The second half of the 20th century has witnessed the decline of entire neighbourhoods in many North American cities. Inner-city areas became increasingly disconnected from the benefits of improvemen[s in wealth and from the intended policy effects aimed at revitalizing their social and physical fabrics. Residents were moving from inner cities to suburbs where they found a safer environment, better quality housing, better schools, and less congestion. A lack of capital investment in the older cities added to the migration of peopie and jobs. Suburban growth very quickly became a more profitable line of business for financial institutions; inner-city lending was difficult and costly. A practice of redlining, where entire neighbourhoods were declared off limits by lenders and insurers, was not uncommon. With access to capital shut off, the downward spiral of decline escalated (The Howell Group 2001). The problems facing declining communities are complex and raise a number of questions that need to be addressed. Some include: how do factors like the concentration of poverty, housing policy, or transport alternatives contribute to dedine? Is decline a result of structural factors such as the loss of traditional industries and the changing nature of employment? What role do market forces such as housing supply and quality play? How does the decline in local services affect these neighbourhoods? How do the characteristics of decaying areas influence the choice of people who refuse to live in them or invest in them and how does this choice make the situation worse? (Glennerster at el. 1999). Although substantial evidence exists of the coincidence of certain problems in inner cities, there has been little done to show how these problems interact. This demands an understanding of the links between different causes of decline and the characteristics associated with decline. Comprehensive neighbourhood studies conducted over time help to track these interconnected problems, and determine how they vary from city to city and one country to another. The discussion that follows will: illustrate the diversity that exists in older neighbourhoods; document the level and nature of decline in "stressed" neighbourhoods; and compare inner-city to suburban and metropolitan area statistics to highlight differences and similarities. The discussion incorporates both national and intemational material drawing heavily on literature from the United States, Canada, Britain and Australia. This review of the literat�re and synthesis of the knowledge that exists will enhance our understanding of the nature of decline and lay the basis for the evaluation and development of intervenGon progams. •— — \ .