Urban Development Under Structural Adjustment: Istanbul, TurkeyDr Savvas Verdis

(Perez 2003)

(Cecen, A. Suut Dogruel, and Fatma Dogruel 1994)

Relative Unit of Labour Cost

OECD

Agricultural Support

OECD

GDP

OECD

Unemployment Rate by Region

OECD

Population Increase

GINI Regional Disparities

OECD

Difference of per capita GDP of metro regions to their national level (2002)

OECD

Distribution of the Banking Sector in Istanbul

(Özdemir 2002)

(Ocakci 2000)

OECD

OECD

OECD

OECD

OECD

(Alper and Saglam 2001)

Defining the Illegality of Gecekondus

Built on public land, typically belonging to the Treasury

Constructed on private property, not belonging to homeowner

Built on shared title land

Constructed without occupancy or construction permits

Government Approaches to Gecekondus

1940's Demolition of structures by State and Municipal Authorities

1960's State accepted them as inevitable due to rapid urbanisation. As part of five year developmental plan in

1963, State accepts amnesties and legalises large areas.

1980's Legalised areas allowed to redevelop into apartments. First generation gecekondu owners could now get increased

rents from new waves of migration.

1990's State demolitions of new gecekondu districts. Provision of services to legalised areas.

2000's Densification of legalised gecekondus, with increases strain on infrastructure.

(Baharoglu and Leitmann 1998)

(Baharoglu and Leitmann 1998)

(Baharoglu 1996)

(Baharoglu 1996)

Esenler:

Rent Gaps & Rent Relationships

(Erman and Eken 2004)

The Politics of Sultanbeyli

OECD

Gokkafes Building

Financing Public Projects

Developer PaysCharacteristics Examples

Tax Incremental Financing Financing municipal bonds or developer investments through increased taxes, based on property values

Chicago TIF areas, USA

Community incentives with recapture agreements• Clawbacks• Recision• Recalibration

Supply-side economics to maximise jobs & tax-base.- Recover all subsidy costs.

- Cancel subsidy agreement.- Adjust subsidy to reflect changing business condition.

Pay for impact costs of development• Impact fees• developer exactions (infrastructure or services)• developer constructed off site infrastructure

Burden of finance to groups not yet present in the area- Internalising the social costs of marginal development

- Based on negotiation- Spreading benefits to fringe areas

Section 106, UKSection 106, UK

Land Leasing (Long term occupancy & development rights) Ending the free/ cheap use of land resources. Capturing land value increments due to public investments

Guangdong, China

Public Private Partnerships Revenue earmarked to finance contracts Goias, Brazil

Public Financing

Bond Issuance Large Scale projects that can typically pay for themselves TfL, London

Government Fiscal Input Invest early at times of low prices Shanghai Chengtou Corporation

Enterprize Zones Navi SEZ Mumbai, India

Revolving Loan Funds

Amalgamating tax bases South African Townships

Cross border joint ventures Local Authority Service Procurement- UK

Acquiring Land CPO, Government Offices Relocation Rural Land Acquisition, China

Catalyst Financing

Public Attraction Projects

Brownfield Projects High initial costs

Retail Finance Westfield, London

Private Financing

Bank Credit on Municipal Asset collateral Typically involves Land assets

Joint Ventures UK Housing Associations – Private Developers

Venture Capital Private ownership stake of public services

(Peterson 2007; White, Bingham, and Hill 2003; Chapman 2008)