Responses to Urban Economic ChangeMarket and TopDown

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Responses to Urban Economic ChangeMarket and
Top-Down
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Outline

• U.S. Federal Policy
• From the New Deal to the New Urban Crisis
• State and Local Government Response
• UK Urban Policy
• Culture-Led Development

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U.S. Urban Development Policy

• Urban policy fragmented and frequently
  counter-productive
• New Deal
• Public works programs
• Federal Housing Administration
• National Resources Board urban policy report
  (1937)
• Urban Renewal1950s
• 1949 legislation--eminent domain, slum clearance
• Federal transportation policiesHighway act
  (1956)
• Large-scale public housing

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U.S. Urban Development Policy

• War on Poverty/Great Society Era (mid-1960s)
• Clear urban crisis
• Community Action Programs (CAPs)
• Urban social services (Head Start, Job Corps,
  Neighborhood Youth Corps, VISTA)
• Housing and Urban Development (HUD)
• Model Cities

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U.S. Urban Development Policy

• New Federalism (Nixon Carter)
• Neglected Great Society Programs
• Revenue sharing and block grants
• States took a more active role
• Reagan Revolution (1980-1992)
• Rejection of Federal urban policy
• Free-market ideology, deregulation
• Massive banking, SL scandals
• Contrast of old housing/new office development

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U.S. Urban Development Policy

• New Urban Crisis
• Recession, Chicago/Los Angeles Crises
• Clinton expanded direct and indirect assistance
• EITC, Minimum Wage
• Enforcement of CRA, expand Head-Start
• Empowerment/Enterprise zones
• Reinventing HUD

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State and Local Economic Development

• Shoot at anything that flies, claim anything
  that falls
• Stage 1 Smokestack and Cash Register Chasing
  (1970s- ) (illustration)
• Stage 2 Grow your own (1980s- )
• Stage 3 Cluster Development (1990s- ) (figure)

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Corporate subsidies some worst case examples

• Sears in Illinois, 240 million (1993), lay-offs
• Intel in Rio Rancho, New Mexico, 114 million,
  city cant afford to build school. (1994)
• Willamette Industries Lumber Mill in Hawesville
  Kentucky--132 million, 82 jobs, 1.2 million/job
  (1998)
• New York Stock Exchange--600 million, no new
  jobs. (1998)
• Alabama Mercedes Law207 projects in 1998 with
  as much as 6.4 billion over 20 years, 280,000
  per job.

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Source Bailey, Jason and Natter, Liz (2000)
Kentuckys Low Road to Economic Development
What Corporate Subsidies Are Doing to the
Commonwealth (Lexington Democracy Resource
Center)
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Source Henton et al (1997) Grassroots Leaders
for a New Economy (San Francisco Jossey-Bass)
P. 7
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Source Henton et al (1997) Grassroots Leaders
for a New Economy (San Francisco Jossey-Bass)
P. 23
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UK Urban Policy

• Urban poverty as physical problem (through 1960s)
• Urban Programme (late 1960s)
• Response to racial tensionsincreased urban
  investment
• Recognition of structural causes (1970s)
• Attempts to harness private capital
• Shift from New Towns to urban regeneration
• Enterprise zones and Urban Development
  Corporations (1980s)

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London Docklands Case Study

• 8.5 sq miles. Once great port, but between 1967
  and 1980 almost entirely shut down.
  Employment30,000 in 1950, 2,000 in 1981.
• Original proposal developed by Greater London
  Council in 1976, focusing on low-income housing
  and industrial/warehouse space, was abandoned.
• Thatcher government created LDDC, with ability to
  bypass local authorities, cut red-tape, and
  work with developers. Emphasized office, retails
  and mixed-use areas, and private sector housing.
• Within 5 years (to 1986) used L279 million of
  public money, attracting 6 times that in private
  money, 400 new companies, 8000 new jobs, 4000 new
  homes with 10,000 more under construction or
  planned, and plans for new light rail system.
• Public housing fell from 83 to 44 per cent in the
  1980s, owner-occupied rose from 5 to 36 percent,
  Waiting list for council housing rose from 2650
  to 9112

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Culture/Tourism-led Development

• Public-Private Partnerships and Rouse-ification
  of downtown areas
• Baltimore Inner Harbor, Quincy Market and Boston
  Waterfront, many others
• Large schemes, tourist-focused
• Yuppi-fication
• Cultural industries
• Printing/publishing, film, radio, TV, theatre,
  libraries, museums, art galleries, high fashion,
  tourism, sports.

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Conclusion on Top-Down Approach

• Market-based approach
• Property-led regeneration (Bricks and Mortar)
• May encourage land speculation, displace existing
  activities/people.
• Neglects human resources, or individual solution
  to poverty