“Neoliberal urbanization in Europe: Large scale urban development projects and New Urban Policy”

© 2002 Editorial Board of Antipode. Published by Blackwell Publishing, 108 Cowley Road, Oxford OX4 1JF, UK and 350 Main Street, Malden,MA 02148, USA

Neoliberal Urbanization in Europe:Large-Scale Urban Development

Projects and the New Urban Policy

Erik SwyngedouwSchool of Geography and the Environment, Oxford University, Oxford, UK;

St Peter’s College, Oxford, UK; [email protected]

Frank MoulaertFaculty of Sociology and Economics, University of Lille I, Lille, France;

Institut Fédératif de Recherche sur les Économies et les Sociétés Industrielles(IFRÉSI), Lille, France; [email protected]

and

Arantxa RodriguezDepartment of Applied Economics, University of the Basque Country,

Bilbao, Spain; [email protected]

This paper summarizes the theoretical insights drawn from a study of thirteen large-scale urban development projects (UDPs) in twelve European Union countries. Theproject focused on the way in which globalization and liberalization articulate with the emergence of new forms of governance, on the formation of a new scalar gestalt of governing and on the relationship between large-scale urban development andpolitical, social and economic power relations in the city. Among the most importantconclusions, we found that:

• Large-scale UDPs have increasingly been used as a vehicle to establishexceptionality measures in planning and policy procedures. This is part of aneoliberal “New Urban Policy” approach and its selective “middle- and upper-class” democracy. It is associated with new forms of “governing” urban inter-ventions, characterized by less democratic and more elite-driven priorities.

• Local democratic participation mechanisms are not respected or are appliedin a very “formalist” way, resulting in a new choreography of elite power.However, grassroots movements occasionally manage to turn the course ofevents in favor of local participation and of modest social returns for deprivedsocial groups.

• The UDPs are poorly integrated at best into the wider urban process andplanning system. As a consequence, their impact on a city as a whole and onthe areas where the projects are located remains ambiguous.

• Most UDPs accentuate socioeconomic polarization through the working ofreal-estate markets (price rises and displacement of social or low-income

housing), changes in the priorities of public budgets that are increasinglyredirected from social objectives to investments in the built environment andthe restructuring of the labor market.

• The UDPs reflect and embody a series of processes that are associated withchanging spatial scales of governance; these changes, in turn, reflect a shiftinggeometry of power in the governing of urbanization.

Large-Scale Urban Development Projects as Urban PolicyOver the past fifteen years or so, local authorities—alone or in concertwith the private sector—have strongly relied on the planning andimplementation of large-scale urban development projects (UDPs),such as museums, waterfronts, exhibition halls and parks, businesscenters, and international landmark events, as part of an effort to re-enforce the competitive position of their metropolitan economiesin a context of rapidly changing local, national, and global competitiveconditions. In many cases, these projects were supported by a majorityof the local constituency, or at least by a silent majority. In other cases,they were initiated by means of “exceptionality” measures, such as thefreezing of conventional planning tools, bypassing statutory regu-lations and institutional bodies, the creation of project agencies withspecial or exceptional powers of intervention and decision-making,and/or a change in national or regional regulations. On occasion,national governments became the main developers, setting aside bothlocal authorities and constituencies.

This paper will examine the dynamics that have accompanied theimplementation of large-scale UDPs in thirteen European cities withinthe European Union (EU). The analysis is based on research under-taken as part of a Targeted Socioeconomic Research Action (Frame-work IV program of the EU), “Urban Restructuring and SocialPolarization in the City” (URSPIC). URSPIC examined whether large-scale UDPs, as emblematic examples of neoliberal forms of urbangovernance, contribute to accentuating processes of social exclusionand polarization, or whether they foster social integration and promoteintegrated urban development.1 The project intended to contribute tothe analysis of the relationship between urban restructuring and socialexclusion/integration in the context of the emergence of the newregimes of urban governance that parallel the European-wide—albeitgeographically uneven and, on occasion, politically contested—consolidation of a neoliberal and market-driven ideology and politics.The selected UDPs embody and express processes that reflect globalpressures and incorporate changing systems of local, regional, and/ornational regulation and governance. These projects, while beingdecidedly local, capture global trends, express new forms of nationaland local policies, and incorporate them in a particular localized setting.The selected UDPs are listed in Table 1 according to their city’s ranking

548 Antipode

Neoliberal Urbanization in Europe 549

Tab

le 1

:T

he T

hirt

een

Cas

e-St

udy

Proj

ects

of t

he U

RSP

IC P

roje

ct

Typ

e of

Cit

y St

age

of t

he P

roje

ct—

1997

Des

ign

Con

stru

ctio

nC

omm

erci

aliz

atio

n

Wor

ld c

ities

RO

TT

ER

DA

M(R

AN

DST

AD

HO

LL

AN

D)

KO

P V

AN

ZU

IDL

ON

DO

NT

HE

SO

UT

H B

AN

KE

uro-

city

BE

RL

INB

RU

SSE

LS

AD

LE

RSH

OF

ESP

AC

E L

EO

POL

D/E

U D

IST

RIC

TB

ig to

wn

CO

PE

NH

AG

EN

LIS

BO

N E

XPO

199

8O

RE

STA

DE

NV

IEN

NA

DU

BL

IND

ON

AU

CIT

YD

OC

KL

AN

DS

-IN

TE

RN

.FIN

AN

CIA

LSE

RV

ICE

S C

EN

TR

EA

TH

EN

SO

LY

MPI

C V

ILL

AG

ESe

cond

ary

tow

n B

ILB

AO

AB

AN

DO

IBA

RR

AN

AP

LE

SC

EN

TR

O D

IRE

ZIO

NA

LE

BIR

MIN

GH

AM

CE

NT

RA

L

LIL

LE

EU

RA

LIL

LE

BU

SIN

ESS

DIS

TR

ICT

(C

BD

)

Sour

ce: h

ttp:

//ww

w.if

resi

.uni

v-lil

le1.

fr (

sele

ct P

rogr

amm

es d

e R

eche

rche

and

then

sel

ect U

RSP

IC).

in the world urban hierarchy and their stage of development at thestart of the research project in 1997.

Reordering the Urban: Large-Scale UDPs and the “Glocalisation” of the CityCities are, of course, brooding places of imagination, creativity,innovation, and the ever new and different. However, cities also hidein their underbelly perverse and pervasive processes of social ex-clusion and marginalization and are rife with all manners of struggle,conflict, and often outright despair in the midst of the greatestaffluence, abundance, and pleasure. These dynamics that define theurban experience have, if anything, taken on a heightened intensityover the past two decades or so. There is no need to recount here the tumultuous reordering of urban social, cultural, and economiclife that has rampaged through the city. Many urban communitieshave been left in the doldrums of persistent decline and permanentupheaval and are still faced with the endless leisure time that comeswith lasting unemployment. Others have risen to the challenge thatrestructuring sparks off and have plunged into the cracks and fissuresthat have opened up a vast arena of new possibilities of action andintervention, as governments and economies desperately seek out newniches for revitalizing the urban fabric.

These urban transformations, exhaustively documented in manyacademic research and governmental documents, have invariably beensituated in the context of a transforming spatial political, sociocultural,and economic system. While economic processes were rapidlyglobalizing and cities were trying to carve out their niche within theemerging new divisions of labor, of production, and of consumption,political transformations—pursued by local, regional, and nationalgovernments of all ideological stripes and colors—were initiated in an attempt to align local dynamics with the imagined, assumed, or realrequirements of a deregulated international economic system, whosepolitical elites were vigorously pursuing a neoliberal dogma. Heraldedby some as the harbinger of a new era of potential prosperity and vilifiedby others as the source of enduring restructuring and accentuated socialpolarization and marginalization, the urban arena became a key spacein which political-economic and social changes were enacted. The newurban policy, developing in parallel with the new neoliberal economicpolicy, squarely revolved around re-centering the city. Old forms andfunctions, traditional political and organizational configurations, hadto give way to a new urbanity, a visionary urbanity that would stand thetests imposed by a global and presumably liberal world order. Repos-itioning the city on the map of the competitive landscape meantreimagining and recreating urban space, not just in the eyes of themaster planners and city fathers and mothers, but primarily for

550 Antipode

the outsider, the investor, developer, businesswoman or –man, or themoney-packed tourist.

The urban turned into ruin in the devastating restructuring of the1970s and 1980s. Rebuilding the city—as in the aftermath of a war—became the leitmotif of urban policy. Large-scale and emblematicprojects were the medicine the advocates of the new urban policyprescribed. Accommodation of the EU’s encroaching office expansionin Brussels, the Guggenheim museum in Bilbao, the new financialdistrict in the Dublin’s docklands, the science-university complexAdlershof in Berlin, Copenhagen’s Orestaden project, and the 1998World Expo in Lisbon, among many other examples that are dottedover the map of urban Europe, testify to the unshakeable belief of thecity elites in the healing effects that the production of new urbancomplexes promises for the city’s vitality.

While we agree that large-scale UDPs have indeed become one ofthe most visible and ubiquitous urban revitalization strategies pursuedby city elites in search of economic growth and competitiveness, wealso insist that it is exactly this sort of new urban policy that activelyproduces, enacts, embodies, and shapes the new political and economicregimes that are operative at local, regional, national, and global scales.These projects are the material expression of a developmental logicthat views megaprojects and place-marketing as means for generatingfuture growth and for waging a competitive struggle to attract invest-ment capital. Urban projects of this kind are, therefore, not the mereresult, response, or consequence of political and economic changechoreographed elsewhere. On the contrary, we argue that such UDPsare the very catalysts of urban and political change, fuelling processesthat are felt not only locally, but regionally, nationally, and internation-ally as well. It is such concrete interventions that express and shapetransformations in spatial political and economic configurations. Theyillustrate the actual concrete process through which postmodern forms,post-Fordist economic dynamics, and neoliberal systems of govern-ance are crafted and through which a new articulation of regulatoryand governmental scales is produced. UDPs are productive of andembody processes that operate in and over a variety of scales, fromthe local to the regional, the national, the European, and the globalscale. From our vantage point, the urban project becomes the lens thatpermits the casting of light on (1) how the scalar interplay is etchedinto particular urban schemes; (2) how these projects, in turn, expressthe way forces operating at a variety of geographical scales intersect inthe construction of new socioeconomic environments; and (3) howsocial polarization and exclusion/integration, as well as processes ofempowerment/disempowerment, are shaped by and work through theseforms of sociospatial restructuring.


This paper attempts to provide a panoramic view of changes inurban development strategies and policies in some of Europe’s great-est cities. While being sensitive to the formative importance of localand national configurations, the case studies also suggest a series ofsimilarities that point to a more general process of urban socioeconomicrestructuring and of reorganization of the system of governance. Thelocalization of the global and the globalization of the local becomecrafted in place-specific forms, yet they show perplexing—and oftendisturbing—common threads. In many ways, therefore, urbanenvironments as constructed places are the condensed expression andincarnation of the transformation of sociospatial processes thatoperate on a variety of articulated geographical scales.

Urban Redevelopment Strategies in the European City:Autocratic Governance, Monumental Spaces, andMythical Imaginations A New Urban Policy (NUP)? The Search for Growth and Competitive RestructuringDespite the differences between the case-study projects and thedistinct political-economic and regulatory regimes of which they are part, they share a new approach in urban policy that stronglyexpresses, at the scale of the urban, the main ingredients of a NewEconomic Policy (NEP). New Economic Policy is the policy platformof conservative liberalism. Contrary to what its ideology sustains,conservative liberalism has always maintained a very special andintimate relationship with state intervention (see Keil this volume). Itseeks to reorient state intervention away from monopoly marketregulation and towards marshaling state resources into the social,physical, and geographical infra- and superstructures that support,finance, subsidize, or otherwise promote new forms of capitalaccumulation by providing the relatively fixed territorial structuresthat permit the accelerated circulation of capital and the relativelyunhindered operation of market forces. At the same time, the statewithdraws to a greater or lesser extent from socially inclusive blanketdistribution-based policies and from Keynesian demand-led inter-ventions and replaces them with spatially targeted social policies andindirect promotion of entrepreneurship, particularly via selectivederegulation, stripping away red tape, and investment “partnerships”(see Peck and Tickell this volume). The relationship between NEP,New Urban Policy (NUP), and UDPs is summarized in Figure 1 andwill be explored further in the subsequent sections of this paper.

One of the key components of the new mode of socioeconomicregulation in cities has been a gradual shift away from distributivepolicies, welfare considerations, and direct service provision towards

552 Antipode

more market-oriented and market-dependent approaches aimed atpursuing economic promotion and competitive restructuring. In mostcities, urban revitalization is presented as an opportunity to changeeconomic hierarchies and functions within the urban region, creatingnew jobs and strengthening the city’s position in the urban division oflabor. In this way, the search for growth turns urban renewal into amediated objective, a necessary precondition for economic regeneration.Although this general trend takes quite distinct forms in differentcities (see Table 2 for a description of six of these projects), project-based urban interventions generally involve critical changes in prior-ities and the ascent of a more assertive, dynamic, and entrepreneurialstyle of urban governance. Planners and local authorities adopt amore proactive and entrepreneurial approach aimed at identifyingmarket opportunities and assisting private investors to take advantage


Figure 1: Relationship between NEP, NUP, and UDPs

NEW ECONOMICPOLICY

NEW URBANPOLICY

URBANDEVELOPMENT

PROJECTS

DEREGULATION

PRIVATIZATION

FLEXIBLIZATION ofLABOR MARKET

SPATIALDECENTRALIZATION

NEW URBAN COALITIONS

SHIFT FROM SOCIAL TO ECONOMIC POLICY

NEW STATE ENTREPRENEURIALISM

SELECTIVE DEREGULATION

CITY MARKETING

PARTNERSHIPS

PRIVATIZATION of PUBLIC FUNDS

REAL-ESTATE DEVELOPMENT

FLAGSHIP PROJECTS

SPATIALLY TARGETED AND LOCALIZED

TERRITORIALLY TARGETED SOCIAL POLICY

PRODUCING URBAN RENT

554 Antipode

Table 2. The Role of UDPs in the City’s Growth Strategy: Main Functions andDevelopment Logic for Six Projects

Project Size and Location Main Development LogicNew Functions

The development area islocated in an outlying district(Treptow) in the Southeast ofBerlin, 12 km from the center.It is connected to the suburbanrail network.

The area encompassesapproximately 420 ha, with asite for science (R&Dactivities), a business area, aMedia City, a universitycampus, a park, sites for tradeand industry, and severalresidential areas.

Abandoibarra is a waterfrontsite of 345.000 m2 located in the heart of the city of Bilbao.Situated strategically on theedge of the 19th—centuryexpansion of the city, one ofthe highest incomeneighborhoods.

The site is presented as the new cultural and businesscenter for Bilbao. Two majorsites, the Guggenheim Museumand the EuskaldunaConference and Concert Hall,are the key landmarks of aproject that also includes theconstruction of 80.000 m2 foroffice space, a 27.000-m2

shopping center, a luxury hotel, university facilities, and800 housing units, as well as an additional 122.000 m2 ofgreen areas.

The Leopold quarter is a site of approximately 1 square kmnorth-east of the city center. It was the first extension ofBrussels (1837) beyond itsmedieval walls.

Urban renewal logic. Its mainobjectives are the restructuringof old industrial areas, thepromotion of a future vision foran improved labor marketbased around high-technologyand advances services, andsupporting the formation ofsmall innovative businesses inthe field of technology, tocreate new urban mix ofscience, economy, mediaservices, living, and leisure.

Urban renewal logic. Theproject aims to create a newdirectional center to leadeconomic regeneration in adeclining industrial region/city;promote a postindustrial andinternational city, create a neweconomic structure, fosterdiversification of the urbansectoral mix, and support jobcreation in new and presumablydynamic and growth-orientedsectors such as culture andleisure.

From the developers’ point ofview: capital accumulationfacilitated by the rapidEuropeanization andinternationalization of Brussels.

Berlin Adlershof

Bilbao Abandoibarra

Brussels LeopoldQuarter(QuartierLeopold)


Table 2: Continued


Originally conceived as anupper-class residential area, itis now one of the main officeareas of Brussels and thecentral area for the expansionof a proliferating EU-relatedadministration. It is served byan underground line and tworailway stations.

Original area covered 11 ha of downtown docklands on thenorth side of the river, whichruns through the city center.This was subsequently widenedto 29 ha and was recentlyextended to cover all 500 ha of the port area on both sidesof the river.

Development of IFSC on thenorth side of the river; continuedmix of residential, business,service and cultural activitieson both sides of the river.

110 ha immediately east of thecity center. The area is adjacent to the main railwaystation and well connected viamajor roads to the city harbor,airport, and motorway network.Only half of the area hasactually been developed.

Mixed uses: mainly offices forpublic institutions (courts,regional parliament and related functions, PublicRegister, fire-brigadeheadquarters, church,

From the perspective of localgovernment: to assure thecontinuing presence andfacilitate the further expansionof European Union and relatedinternational institutions.Main objectives are: to provideoffice space to the EU and towhatever clients are attractedby Brussels’ status as Europeancapital; to reaffirm Brussels’role as Europe’s capital and tocash in on the economic impactthis has; and to raise thepolitical and cultural positionof the city in the Europeanurban hierarchy.

Economic growth for originalsite; social and economicgrowth and physicalregeneration for extended 500-ha site (of which onlyabout 100 ha are in need ofredevelopment).

Discourse of modernization tocreate a postindustrial city.Because of its mixed use, theCD is supposed to contribute tothe economic regeneration ofthe city and to improve itsurban quality. As host locationof public and private serviceactivities, the CD is alsosupposed to decreasecongestion in the historical citycenter.

DublinDocklandsDevelopmentProject (withInternationalFinancialServicesCentre [IFSC]as flagship)

NaplesCentroDirezionale(CD)

of them. Table 2 also summarizes the developmental view promotedby the city’s economic and political elites and the associated boosteristdiscourses that legitimize the projects and the associated institutionaland regulatory framework.

State-led or State-based: The Myth of the Absent StateIn contrast to discourses of market-led and entrepreneurial activity(risk taking, market-led investments), the UDPs are decidedly andalmost without exception state-led and often state-financed. In acontext of a liberalizing European metagovernance by the EuropeanCommission, of national deregulation, of shrinking or stable socialredistributional policies, of the outright exclusion of some groups atthe national or EU level (for example, immigrants), and of an oftennarrowing fiscal basis for local urban intervention, UDPs are

556 Antipode

Table 2: Continued


school, etc), but also offices forbusiness, commercial activities,and sport facilities. Residenceaccounts for 30% of the totalbuilt volume.

The Donau-City (amultifunctional UDP) islocated near the Danube,covering a subcenter with a size of about 17.4 ha. Thehousing projects on the sameriverside cover 41,507 m2. The development axis—Lasallestrasse—runs across the Danube and connects theDonau-City with the inner cityand the surroundingmicroregions on bothriversides.

Commercial and residentialdevelopment: housing (1500 subsidized flats), offices,shopping, leisure and culturalfacilities, school and universitybuildings, research anddevelopment park, apartmenthotel.

Presented as a “bridge to thefuture,” fostering economicgrowth and the formation of aninternational image for Vienna;strong emphasis on symboliccapital formation

The Donau-City (including theViennese site of the UnitedNations Organization (UNO))is regarded as a flagship forVienna, aimed at strengtheningits role as an “internationalmeeting place.” Thedevelopment axis is supposedto attract international businessand foster and act as pivotalpoint in East-West (European)trade and investment; it offershousing for upper classes.

ViennaDonau City

marshaled as panaceas to fight polarization, to reinvigorate the localeconomy, and, most importantly—an explicit goal of these projects—to improve the tax basis of the city via a sociospatial and economicreorganization of metropolitan space. In some cases—such as Lille,Rotterdam, Brussels, Copenhagen, or Birmingham—a mix of projectsis presented. Regardless of the efficacy of such a mix, the mainobjective of these projects is to obtain a higher social and economicreturn and to revalue prime urban land. The production of urban rentis central to such urban redevelopment strategies. Closing the rent gap and cashing in on the produced revalorization of the developmentland is a clear leitmotiv in most projects. Table 3 summarizes this forthree of the case studies, but it is also clearly evident in Copenhagen,Brussels, Dublin, Bilbao, Athens, Vienna, and Birmingham.

Urban redevelopment is considered to be a central strategy in re-equilibrating the problematic fiscal balance sheet of local government.Spatially focused policies aimed at producing increasing rent income,altering the socioeconomic tax basis, and producing profitableeconomic activities are among the few options available, particularlyin a context in which the structure of fiscal revenues is changingrapidly. As the financial-services sector and profit-making via globalspeculative transactions drain major financial means and investments,such activities simultaneously escape government control and gen-erate very limited local fiscal returns. In such context, the revaluationof urban land remains one of the few means open to local governmentsto increase tax returns. Of course, closing rent gaps or producing high-rent-yielding spaces requires a production of built environments thatpermit significant surplus-value creation and/or realization. Yet the politicsof rent-production through the production of the built environment hasremained elusive in much of the recent literature on urban change.

Despite the rhetoric of market-led and privately covered invest-ments, the state is invariably one of the leading actors in the process: inten of the thirteen cases discussed in this paper, its role is outspoken.Risks are taken by the state, shared on occasion with the private sector,but given the speculative, real-estate-based nature of the projects,deficits are likely to occur. Traditional and well-documented processesof socialization of cost and risk and privatization of the possiblebenefits are central characteristics of most UDPs. While, in the past,invoking the social return of the projects legitimized such practices,they are now usually hidden behind a veil of creative accounting or by means of channeling funds via quasigovernmental organizations or mixed private/public companies. As can be gleaned from Table 3, in the cases of Berlin’s Adlershof and Lisbon’s Expo 1998, the statebecame increasingly involved in covering deficits, a condition true inmany of the other cases. It is only in the redevelopment of London’sSouth Bank that no state guarantee is involved and that the state only


558 Antipode

Tab

le 3

:T

he F

inan

cial

Ris

ks o

f the

UD

P an

d th

e R

ole

of th

e St

ate

in T

hree

UD

Ps

UD

PO

rigi

nal F

inan

cial

Con

stru

ctio

n (1

997)

Fin

anci

al R

isks

for

the

Sta

te

Ber

lin

Dev

elop

ers:

BA

AG

(B

erlin

Adl

ersh

of A

ufba

uges

ells

chaf

t mbH

)A

dler

shof

is a

dev

elop

er w

ith a

trus

tees

hip

and

nego

tiate

s be

twee

n th

e pu

blic

adm

inis

trat

ion

and

the

priv

ate

inve

stor

s. M

ain

func

tions

: pu

blic

rel

atio

ns, c

onsu

ltatio

n, c

oord

inat

ion.

A c

ontr

ol g

roup

of

seve

n st

ate

secr

etar

ies

deci

des

the

deve

lopm

ent a

nd th

e ec

onom

ic

plan

, as

wel

l as

timin

g an

d fu

ndin

g.W

IST

A M

anag

emen

t Gm

bH is

the

oper

atin

g co

mpa

ny a

nd h

as

been

foun

ded

for

the

deve

lopm

ent a

nd th

e m

arke

ting

of th

e sc

ienc

e an

d co

mm

erci

al te

chno

logy

site

. It i

s a

100%

sub

sidi

ary

of th

e C

ity o

f Ber

lin.

Fin

anci

ng: T

he m

ain

idea

of t

he p

lann

ing

inst

rum

ent a

pplie

d in

A

dler

shof

is to

use

mea

ns fr

om th

e tr

ust f

und

to d

evel

op a

nd o

pen

up th

e ar

ea to

mak

e it

avai

labl

e fo

r bu

ildin

g. P

rope

rty

valu

es a

re

froz

en fo

r a

set n

umbe

r of

yea

rs, a

nd a

por

tion

of p

rofit

s is

re

capt

ured

by

the

city

whe

n th

e la

nd is

sol

d to

inve

stor

s. T

his

lega

l to

ol a

nd it

s se

lf-fin

anci

ng p

hilo

soph

y ar

e hi

ghly

dep

ende

nt o

n an

in

crea

se o

f the

land

-val

ue le

vels

, whi

ch m

akes

them

vul

nera

ble

to

chan

ges

in th

e re

al-e

stat

e m

arke

t. Si

nce

land

pri

ces

have

bee

n de

clin

ing

sinc

e 19

94 in

Ber

lin a

nd c

onse

quen

tly in

the

deve

lopm

ent

area

, the

re is

less

turn

over

than

exp

ecte

d, a

nd th

e in

com

e fr

om

selli

ng th

e la

nd is

too

low

for

this

pla

n to

wor

k ou

t. A

s a

cons

eque

nce,

BA

AG

rec

eive

s lo

ans

in o

rder

to p

refin

ance

the

deve

lopm

ent m

easu

res.

Thu

s, th

e de

velo

pmen

t of A

dler

shof

de

pend

s m

ainl

y on

pub

lic fu

ndin

g. U

ntil

now

, the

re h

ave

been

no

fina

ncia

lly s

tron

g in

vest

ors.

Fur

ther

mor

e, r

egio

nal a

nd n

atio

nal

finan

cial

sup

port

is c

ombi

ned

with

mon

ey fr

om th

e E

urop

ean

BA

AG

est

imat

es th

at u

p to

the

year

201

0, p

riva

te a

ndpu

blic

inve

stm

ent w

ill a

mou

nt to

2.8

1 bi

llion

Eur

o in

Adl

ersh

of. O

f tha

t, 2.

19 b

illio

n E

uro

is e

stim

ated

to c

ome

from

pri

vate

sou

rces

, whi

le 6

10 m

illio

n E

uro

will

be

publ

icin

vest

men

ts. U

ntil

2000

, onl

y 23

,1%

of t

hese

res

ourc

es w

ere

com

mitt

ed o

r al

read

y sp

ent.

By

the

end

of 2

001,

560

mill

ion

Eur

o ha

d be

en in

vest

ed in

Adl

ersh

of, m

ainl

y pu

blic

fund

ing.

The

deb

ts o

f BA

AG

’s tr

ust f

und

reac

hed

122.

9 m

illio

n E

uro

in D

ecem

ber

1999

, for

whi

ch th

e st

ate

is li

able

. By

Sept

embe

r 20

00, t

he le

vel o

f ind

ebte

dnes

s ha

d ri

sen

to12

7.3

mill

ion

Eur

o.

Thi

s gr

owin

g de

bt p

uts

a gr

eat b

urde

n on

the

publ

ic b

udge

t.T

he fi

nanc

ial c

omm

ittee

of t

he p

arlia

men

t agr

eed

in J

une

1998

to in

vite

the

Aud

itor-

Gen

eral

’s O

ffic

e to

insp

ect t

hefin

anci

al s

ituat

ion

of th

e A

dler

shof

pro

ject

and

of o

ther

deve

lopm

ent a

reas

in th

e ci

ty.

Tod

ay, i

n 20

02, B

erlin

’s fi

nanc

ial s

ituat

ion

caus

es g

reat

conc

ern.

The

gre

ates

t num

ber

of la

rge

urba

n de

velo

pmen

tpr

ojec

ts (

Adl

ersh

of is

onl

y on

e am

ong

seve

ral)

—co

nstit

ute

a lo

ng-t

erm

dra

in o

n pu

blic

fina

nces

. Thi

s is

esp

ecia

lly th

eca

se in

the

five

deve

lopm

ent a

reas

whe

re th

e de

ficits

hav

eco

ntin

uous

ly r

isen

. The

com

mitm

ent t

o th

e lo

ng-t

erm

finan

cial

sch

eme

of th

e bi

g pr

ojec

ts is

not

mat

ched

by

the


Tab

le 3

:C

ontin

ued

UD

PO

rigi

nal F

inan

cial

Con

stru

ctio

n (1

997)

Fin

anci

al R

isks

for

the

Sta

te

Stru

ctur

al F

unds

to b

uild

up

the

infr

astr

uctu

re o

n th

e sc

ienc

e an

dte

chno

logy

site

(W

IST

A);

the

nonu

nive

rsity

res

earc

h in

stitu

tions

ar

e su

ppor

ted

by th

e st

ate;

mos

t com

pani

es r

ely

on th

e su

bsid

ized

re

nts

and

on d

iffer

ent a

id p

rogr

ams;

the

cons

truc

tion

of th

e ca

mpu

s de

pend

s on

fund

s fr

om th

e fe

dera

l gov

ernm

ent a

nd th

e re

gion

al g

over

nmen

t (L

and)

of B

erlin

.

Lis

bon

Dev

elop

ers:

Par

que

EX

PO 9

8 SA

(a

new

ly c

reat

ed s

tate

com

pany

)E

xpo

1998

has

exte

nsiv

e de

velo

pmen

t pow

ers

and

is u

nder

wri

tten

by

the

Port

ugue

se g

over

nmen

t; th

e so

cial

cap

ital i

s en

tirel

y pu

blic

; the

m

ain

shar

ehol

ders

are

the

stat

e an

d th

e m

unic

ipal

ities

of L

isbo

n an

d L

oure

s. P

arqu

e E

xpo

is th

e m

ain

shar

ehol

der

of s

ix o

ther

com

pani

es c

onst

itute

d to

run

the

real

-est

ate

oper

atio

n (E

xpo

Urb

e),

Exp

ositi

on 1

998,

and

som

e of

the

faci

litie

s re

mai

ning

aft

er th

e ex

posi

tion

(the

Oce

anar

ium

, the

mul

tipur

pose

pav

ilion

, the

ref

use

trea

tmen

t pla

nt, a

nd th

e tr

ansp

ort t

erm

inal

, tra

in, a

nd m

etro

).F

inan

cing

: The

fina

ncia

l mod

el w

as d

esig

ned

to im

plem

ent t

he

expo

sitio

n at

zer

o co

st, n

ot in

clud

ing

the

exte

rnal

ope

ratio

ns

supp

orte

d by

EU

fund

s. T

he m

ain

reve

nues

for

impl

emen

ting

the

Exp

o an

d th

e ur

ban

proj

ect c

ame

from

the

expo

sitio

n an

d th

e sa

le

of th

e la

nd. H

owev

er, t

he e

xpec

ted

retu

rns

wer

e no

t ach

ieve

d.

Par

que

Exp

o 19

97 b

udge

t:•

Exp

ositi

on (

ticke

t sal

es, p

ublic

ity, s

pons

ors)

: 309

mill

ion

Eur

o•

Sale

of l

and

and

prop

erty

: 653

mill

ion

Eur

o

expe

cted

tax

inco

me

or th

e re

turn

s of

sal

es o

f pub

lic la

nd.

The

y ab

sorb

fina

ncia

l res

ourc

es th

at c

ould

be

used

for

muc

h-ne

eded

impr

ovem

ents

in o

ther

are

as. T

he im

pend

ing

fisca

l str

ess

was

dis

cuss

ed a

t the

beg

inni

ng o

f the

199

0s, b

utth

e po

licy-

mak

ers

faile

d to

red

uce

the

proj

ects

to a

reas

onab

le n

umbe

r an

d si

ze.

Apa

rt fr

om b

eing

the

mai

n sh

areh

olde

r, th

e st

ate

guar

ante

ed a

nd p

rovi

ded

the

cond

ition

s fo

r re

leas

ing

the

land

at n

o co

st to

Par

que

Exp

o an

d fo

r al

loca

ting

EU

fund

ing

of th

e pr

ojec

t. T

he a

mou

nt a

lloca

ted

dire

ctly

to th

eE

xpo

unde

r th

e U

rban

Ren

ovat

ion

Prog

ram

of t

he E

U’s

Com

mun

ity S

uppo

rt F

ram

ewor

k w

as a

bout

hal

f of t

he to

tal

sum

for

urba

n re

nova

tion

for

the

who

le c

ount

ry fo

r fiv

eye

ars—

arou

nd 2

40 m

illio

n E

uro.

The

fina

l bal

ance

bet

wee

nco

sts

and

reve

nues

is s

till u

nkno

wn.

It w

as e

stim

ated

that

accu

mul

ated

exp

ense

s un

til th

e ye

ar 2

009

wou

ld m

ake

ato

tal o

f 185

0 m

illio

n E

uro,

of w

hich

375

mill

ion

Eur

o w

ere

finan

cial

cos

ts (

Parq

ue E

XPO

98,

Bud

get R

epor

t,L

isbo

n, M

arch

199

9). T

he m

ain

chan

ges

to th

e in

itial

budg

et w

ere

the

high

er b

uild

ing

and

infr

astr

uctu

re c

osts

and

low

er-t

han-

expe

cted

rev

enue

from

the

sale

of t

icke

tsan

d sp

onso

rs (

250

mill

ion

Eur

o). I

n ad

ditio

n, P

arqu

e E

xpo

will

rec

eive

rev

enue

s (6

0 m

illio

n E

uro)

from

the

sale

of a

few

of t

he E

xpo

pavi

lions

to th

e st

ate

for

the

inst

alla

tion

ofad

min

istr

ativ

e ac

tiviti

es a

nd c

ultu

ral f

acili

ties.

560 Antipode

Tab

le 3

:C

ontin

ued

UD

PO

rigi

nal F

inan

cial

Con

stru

ctio

n (1

997)

Fin

anci

al R

isks

for

the

Sta

te

•O

ther

com

pani

es (

sale

of c

ompa

ny s

hare

s): 7

7 m

illio

n E

uro

•E

urop

ean

Fun

ding

(E

RD

F a

nd C

ohes

ion

Fun

d): 3

04 m

illio

n E

uro

(inc

lude

s fu

ndin

g fo

r pr

imar

y in

fras

truc

ture

wor

ks

insi

de th

e E

xpo

site

and

for

exte

rnal

ope

ratio

ns: t

rans

port

in

fras

truc

ture

, met

ro a

nd tr

ain

stat

ion,

mul

tipur

pose

pav

ilion

, an

d en

viro

nmen

tal w

orks

) •

Stat

e-di

rect

fund

ing

(soc

ial c

apita

l): 8

7 m

illio

n E

uro

•O

ther

(re

ntin

g of

spa

ces)

: 51

mill

ion

Eur

o.

Lon

don

Dev

elop

ers:

The

dev

elop

ers

are

publ

ic in

stitu

tions

and

not

-for

-pro

fitSo

uth

Ban

kco

mpa

nies

that

hav

e in

itiat

ed th

e re

gene

ratio

n sc

hem

es. S

ome

priv

ate

deve

lope

rs a

re a

lso

activ

e in

the

area

. F

inan

cing

: hou

sing

sch

emes

are

mai

nly

finan

ced

by lo

ans

(Ham

bros

Ban

k), r

even

ues

from

ren

ts (

car

park

, sho

ps)

and

gran

ts

from

the

Hou

sing

Cor

pora

tion

Gra

nt. P

ublic

spa

ce im

prov

emen

ts

are

finan

ced

by g

rant

s fr

om th

e Si

ngle

Reg

ener

atio

n B

udge

t,lo

cal c

ounc

ils, t

he N

atio

nal L

otte

ry, a

nd th

e bu

sine

sses

’ ow

n fu

nds.

Publ

ic fu

nds

are

used

for

new

tran

spor

t inf

rast

ruct

ures

. Pri

vate

in

vest

ors

have

turn

ed th

e C

ount

y H

all i

nto

a ho

tel a

nd le

isur

e ce

nter

. Par

t of t

he S

hell

offic

es h

as b

een

turn

ed in

to lu

xury

ap

artm

ents

by

priv

ate

inve

stor

s.

In o

rder

to m

ake

up fo

r th

e in

crea

sing

def

icit,

Par

que

Exp

ora

ised

land

pri

ces

and

chan

ged

prev

ious

cos

ts a

nd a

gree

men

ts.

It is

exp

ecte

d th

at r

even

ue fr

om la

nd sa

les w

ill b

ring

an in

com

eof

850

mill

ion

Eur

o by

200

9—an

incr

ease

of 3

0 pe

rcen

t fro

mth

e in

itial

est

imat

e. T

hese

tren

ds p

ushe

d pr

oper

ty v

alue

s up

at th

e E

xpo

site

: Exp

o fla

ts a

re n

ow, o

n av

erag

e, th

e m

ost

expe

nsiv

e in

Lisb

on. T

hus,

the

stat

e, th

roug

h a

publ

ic d

evel

oper

,is

com

petin

g w

ith th

e lo

cal m

arke

t for

rai

sing

hou

se p

rice

s.A

ccou

nts

have

als

o to

be

sett

led

with

the

mun

icip

aliti

es o

fL

isbo

n an

d L

oure

s fo

r th

e in

vest

men

t in

infr

astr

uctu

rew

orks

(th

e eq

uiva

lent

of 1

87 m

illio

n E

uro)

whe

n th

e si

te is

hand

ed b

ack

to th

e ci

ty.

No

stat

e gu

aran

tees

. Nat

iona

l sta

te in

volv

emen

t thr

ough

Sing

le R

egen

erat

ion

Bud

get s

ubsi

dies

. The

con

sequ

ence

sfo

r pu

blic

bud

get a

re n

eglig

ible

. The

con

sequ

ence

s fo

rot

her

spen

ding

sec

tors

(so

cial

, edu

catio

n, tr

aini

ng, b

asic

urba

n in

fras

truc

ture

, and

so

on)

are

negl

igib

le.

contributes through spending on social programs, training, and theprovision of basic infrastructure.

A common theme is that most of the projects are decidedly rent-extraction-based. Their success rests fundamentally on (1) the produc-tion of potential extra rent and (2) the subsequent realization of theproduced land rent. The employment and economic activity generatingconsequences of the projects, however important they may turn out tobe, are all subject to the successful appropriation of the “manu-factured” land rent embodied in the new built environment. Thepublic-private or public-public initiatives rework the urban fabric suchthat the potential rent from new developments is significantly higherthan existing rent levels. Sinking capital and investment into theproduction of a new built environment revalues, at least potentially,the monetary value of the land and the built environment—benefitsthat are almost always reaped by the private sector. This is particularlynoticeable in the cases of Dublin, Brussels, Bilbao, Berlin, Athens,Copenhagen, and Naples (for greater detail on these cases, seesources cited in the acknowledgments).

Institutional Fragmentation and “Pluralistic” GovernanceThe newly emerging regimes of governing urban revitalization involvethe subordination of formal government structures to new institutionsand agencies, often paralleled by a significant redistribution of policy-making powers, competencies, and responsibilities. In the name ofgreater flexibility and efficiency, these quasi-private and highly auto-nomous organizations compete with and often supersede local andregional authorities as protagonists and managers of urban renewal.Moreover, the fragmentation of agencies and the multiplicity of institu-tions, both formal and informal, are often portrayed as positive signs,suggesting enabling institutional thickness, a considerable degree oflocal embeddedness, and significant social capacity-building. In addition,these institutional and regulatory configurations are celebrated as anew form of governing, signaling a better and more transparent articu-lation between government (state) and civil society. The “stakeholder”participation on which partnerships are based becomes a normativemodel that is presented as a democratic forum that permits open andnondistorted communication and action.

Yet the actual configuration of such project-based institutions revealsan extraordinary degree of selectivity. Although a varying choreographyof state, private sector, and nongovernmental organization (NGO)participation is usually present (see Table 4 for a comparative over-view), these forms of urban governance show a significant deficit withrespect to accountability, representation, and the presence of formalrules of inclusion or participation. Indeed, accountability channels areoften gray, nonformalized, and nontransparent, frequently circumventing


562 Antipode

Tab

le 4

:F

rom

Pla

nnin

g to

Pro

ject

s: E

xcep

tiona

lity

Mea

sure

s an

d L

ocal

Dem

ocra

cy

UD

PT

erri

tori

al

Exc

epti

onal

ity

Incl

usio

n of

Inst

itut

iona

l Com

plex

ity

Soci

al R

etur

nsF

ragm

enta

tion

Mea

sure

s/

Nei

ghbo

rhoo

dA

ccou

ntab

ilit

yP

opul

atio

n in

D

ecis

ion-

mak

ing

Rot

terd

amA

ttem

pt to

N

o ex

cept

iona

lity

In la

ter

stag

e of

H

ighl

y co

mpl

ex. I

ndep

ende

nt

Yes

, but

ver

y lim

ited

and

Kop

van

Zui

dco

nstr

uct p

hysi

cal

mea

sure

s, b

ut

proj

ect a

nd in

an

Stat

e-M

unic

ipal

Par

tner

ship

for

in a

djac

ent n

eigh

borh

oods

.lin

k/br

idge

with

eros

ion

of tr

ust i

nin

dire

ct w

ayK

op v

an Z

uid.

Inv

olve

men

t of

1990

s: s

tron

ger

stre

ss o

nce

ntra

l city

polit

ical

pro

cess

.pr

ivat

e in

vest

ors.

Com

plex

of

soci

al p

roje

cts

in a

djac

ent

Ele

cted

bor

ough

polic

ies

for

urba

n re

gene

ratio

n an

dne

ighb

orho

ods

coun

cils

soci

al r

enew

al d

iffic

ult t

o co

ordi

nate

Lon

don

Det

achm

ent f

rom

O

ne o

f the

mos

t Y

esN

ot c

ompl

ex: f

rom

gra

ssro

ots

Yes

The

Sou

th B

ank

adja

cent

war

ds.

dem

ocra

tic m

odel

s or

gani

zatio

n to

par

tner

-dom

inat

edB

ridg

e w

ith c

entr

al

in U

RSP

IC s

ampl

epl

anni

ngL

ondo

n

Ber

lin

Det

achm

ent;

fillin

g D

emoc

ratic

con

trol

No

Part

ners

hip

betw

een

the

publ

ic

Indi

rect

Adl

ersh

ofga

pson

pub

lic

sect

or (

Ber

lin)

and

sem

ipri

vate

ov

ersp

endi

ngde

velo

per.

Litt

le s

tate

/mun

icip

ality

co

ordi

natio

n

Bru

ssel

sD

etac

hmen

tPe

rmis

sive

att

itude

N

oPr

olife

ratin

g nu

mbe

r of

pri

vate

N

o (n

egat

ive

soci

al

Esp

ace

Leo

pold

of

aut

hori

ties

deve

lope

rs a

nd o

f “in

form

al”

retu

rns)

(EU

)to

war

ds p

riva

te

publ

ic/p

riva

te r

elat

ions

deve

lope

rs

Lis

bon

Few

or

no li

nks

Dis

cret

iona

ry

No

No

rela

tions

with

ove

rall

plan

ning

A

mbi

guou

sE

xpo

1998

with

ori

enta

l zon

es

plan

ning

age

ncy

in L

isbo

n; n

o lin

ks w

ith o

ther

of

Lis

bon

UD

Ps in

Lis

bon


Tab

le 4

:C

ontin

ued

UD

PT

erri

tori

al

Exc

epti

onal

ity

Incl

usio

n of

Inst

itut

iona

l Com

plex

ity

Soci

al R

etur

nsF

ragm

enta

tion

Mea

sure

s/

Nei

ghbo

rhoo

d A

ccou

ntab

ilit

yP

opul

atio

n in

D

ecis

ion-

mak

ing

Cop

enha

gen

Att

empt

to

Lin

ked

to th

e N

o. N

o lin

kage

s to

Ver

y co

mpl

ex. I

ndep

ende

nt

Am

bigu

ous.

Perh

aps

Oer

esta

den

conn

ect O

rest

aden

O

eres

und

com

mun

ity

stat

e-m

unic

ipal

par

tner

ship

/so

cial

ret

urns

to th

e ci

tyto

the

city

R

egio

naliz

atio

n em

pow

erm

ent

com

pany

. In

real

ity, c

ontr

olle

d as

a w

hole

and

in th

e lo

ngSt

rate

gy. D

emoc

ratic

pr

ogra

ms

in

by th

e M

inis

try

of F

inan

ce in

ru

nde

ficit

in th

e in

itial

de

priv

ed d

istr

icts

D

enm

ark

phas

eof

Cop

enha

gen

Dub

linD

etac

hmen

t in

Dev

elop

men

t In

itial

ly N

o, b

ut

Initi

ally

an

excl

usiv

e, e

xecu

tive-

Loc

al: n

one

in th

e in

itial

Dub

lin

earl

y ph

ase—

Aut

hori

ty: r

espo

nsib

lesu

bseq

uent

ly Y

es:

styl

e Q

uang

o w

ith o

wn

com

plet

est

age

of th

e pr

ojec

t but

D

ockl

ands

at

tem

pt to

cre

ate

to n

atio

nal

loca

l nei

ghbo

rhoo

dpl

anni

ng p

ower

s. C

hang

ed to

loca

llo

cal s

ocia

l pro

gram

s no

wD

evel

opm

ent

new

sec

tor

to th

e go

vern

men

t. L

ocal

ex

clud

ed in

firs

t so

cial

-par

tner

ship

mod

el o

f w

ell d

evel

oped

and

oth

er

Proj

ect w

ith

east

of e

xist

ing

gove

rnm

ent a

nd lo

cal

phas

e bu

t now

re

gene

ratio

n in

199

7 w

ith o

wn

initi

ativ

es c

omin

g on

IF

SC a

s C

BD

. Att

empt

to

com

mun

ities

initi

ally

dire

ctly

rep

rese

nted

plan

ning

pow

ers

coex

istin

g st

ream

(in

clud

ing

soci

al

flags

hip

build

bri

dges

and

excl

uded

from

on

the

Gov

erni

ng

alon

gsid

e th

ose

of lo

cal

hous

ing)

; a m

ajor

fil

l gap

s in

late

st

deci

sion

-mak

ing.

Now

Cou

ncil

of th

e go

vern

men

t. D

ual p

lann

ing

cont

ribu

tor

thro

ugh

IFSC

phas

eth

e m

ost d

emoc

ratic

Urb

an D

evel

opm

ent

regi

me

(loc

al a

utho

rity

and

ac

tiviti

es a

nd ta

x re

venu

esm

odel

in th

e U

RSP

ICC

orpo

ratio

n (U

DC

).U

DC

) no

w y

ield

ing

com

plex

to

gro

ss d

omes

tic p

rodu

ctsa

mpl

e

deve

lopm

ent s

cena

rios

and

exch

eque

r re

sour

ces

Bil

bao

Fill

ing

gaps

; C

ombi

natio

n of

N

oN

o, b

ut in

nova

tions

in m

anag

ing

Am

bigu

ous.

Ben

efits

for

Aba

ndoi

barr

abu

ildin

g br

idge

sst

atut

ory

plan

ning

st

ruct

ures

and

pub

lic-p

ublic

ad

jace

nt a

reas

but

no

inst

rum

ents

and

pa

rtne

rshi

ps fo

r “c

once

rted

” tr

ickl

e-do

wn

effe

cts

disc

retio

nary

ur

bani

sm

564 Antipode

Tab

le 4

:C

ontin

ued

UD

PT

erri

tori

al

Exc

epti

onal

ity

Incl

usio

n of

Inst

itut

iona

l Com

plex

ity

Soci

al R

etur

nsF

ragm

enta

tion

Mea

sure

s/

Nei

ghbo

rhoo

d A

ccou

ntab

ilit

yP

opul

atio

n in

D

ecis

ion-

mak

ing

man

agem

ent b

y a

spec

ial p

urpo

se

urba

n de

velo

pmen

t co

mpa

ny (

mix

ed

econ

omy

firm

)

Ath

ens

Det

achm

ent;

Cen

tral

sta

te le

vel

No.

Vir

tual

ly

The

dev

elop

men

t pro

ject

dep

ends

A

mbi

guou

s. T

he p

roje

ct’s

Oly

mpi

c un

derm

inin

g so

cial

co

ntro

ls th

e no

thin

g ha

s be

en

on tw

o go

vern

ance

/gov

ernm

ent

soci

al r

etur

ns in

clud

e V

illag

ean

d ec

onom

ic

rede

velo

pmen

t do

ne to

invo

lve

syst

ems,

a “

norm

al”

and

anso

me

pote

ntia

l gai

ns in

cohe

renc

e of

pr

oces

s an

d co

ntai

ns

neig

hbor

hood

“e

xcep

tiona

l” o

ne. T

he n

orm

al

empl

oym

ent d

urin

g th

e su

rrou

ndin

g in

volv

emen

t of t

hepo

pula

tions

in th

e sy

stem

dea

ls w

ith r

egul

ar

cons

truc

tion

phas

e. T

helo

calit

ies

loca

l aut

hori

ties

and

deci

sion

-mak

ing

deve

lopm

enta

l iss

ues,

whi

le th

eO

lym

pic

Vill

age

also

popu

latio

n pr

oces

s“e

xcep

tiona

l” is

the

syst

em th

at

incl

udes

a p

ublic

hou

sing

prep

ares

and

adm

inis

ters

the

sche

me

for

the

post

-Oly

mpi

cO

lym

pics

era.

No

cent

ral c

omm

itmen

tex

ists

that

gua

rant

ees

hous

ing

for

loca

l pop

ulat

ion

Vie

nna

Fill

ing

gaps

; bri

dge

Onl

y su

perf

icia

l A

mbi

guou

sPr

olife

ratio

n of

pri

vate

dev

elop

ers

Neg

ativ

e so

cial

ret

urns

: D

onau

-to

cen

tral

city

dem

ocra

cy: h

eari

ngs

and

publ

ic a

utho

ritie

sin

stitu

tiona

lizat

ion

of

City

with

out p

ower

publ

ic-p

riva

te p

artn

ersh

ips,

high

-inco

me

grou

ps a

scl

ient

ele

of s

ocia

lde

moc

racy


Tab

le 4

:C

ontin

ued

UD

PT

erri

tori

al

Exc

epti

onal

ity

Incl

usio

n of

Inst

itut

iona

l Com

plex

ity

Soci

al R

etur

nsF

ragm

enta

tion

Mea

sure

s/

Nei

ghbo

rhoo

d A

ccou

ntab

ilit

yP

opul

atio

n in

D

ecis

ion-

mak

ing

Nap

les

The

pro

ject

has

T

he p

riva

te

No:

onl

y th

roug

h N

o co

ordi

natio

n w

ith o

ther

pro

ject

s.

Impr

ovem

ents

of p

ublic

C

entr

o in

crea

sed

deve

lope

r ha

d a

form

al p

oliti

cal

No

rela

tions

with

pla

nnin

g in

the

tran

spor

t inf

rast

ruct

ures

Dir

ezio

nale

frag

men

tatio

n in

do

min

atin

g in

fluen

ce

repr

esen

tatio

n in

ci

ty a

nd m

etro

polit

an a

rea

the

city

on n

atio

nal,

regi

onal

, th

e ci

ty c

ounc

il. N

oan

d lo

cal g

over

nmen

tpr

ovis

ion

of

info

rmat

ion

and/

or

dire

ct c

onsu

ltatio

n

Bir

min

gham

Fill

ing

gaps

Urb

an m

achi

ne

No

The

City

Cou

ncil

dive

rted

fina

nce

Neg

ligib

le fo

r de

priv

ed

CB

Dpo

litic

s. C

osts

hid

den

from

thei

r ed

ucat

ion

and

hous

ing

com

mun

ities

in th

e fr

om c

ounc

il an

d bu

dget

s th

roug

h a

priv

ate

sect

or

imm

edia

te a

rea

publ

icco

mpa

ny th

at th

ey o

wn.

Thi

s w

as

used

as

mat

ched

fund

ing

for

EU

R

egio

nal F

unds

Lil

leF

illin

g ga

psU

se o

f spe

cial

F

orm

ally

, C

oord

inat

ion

with

oth

er U

DPs

onl

y So

me

tric

kle-

dow

n ef

fect

s.E

ural

ille

stru

ctur

e fo

r co

nsul

tatio

n w

ithon

pap

er

Impr

oved

pub

lic tr

ansp

ort

deve

lopm

ent

citiz

ens

syst

emco

mpa

ny

Key

: Ter

rito

rial

frag

men

tatio

n: fu

nctio

nal a

nd p

hysi

cal s

epar

atio

n fr

om a

djoi

ning

poo

rer

neig

hbor

hood

s; b

uild

ing

brid

ges

with

nei

ghbo

rhoo

ds; f

illin

g ga

ps in

aban

done

d, d

eind

ustr

ializ

ed, o

r em

ptie

d-ou

t zon

es. E

xcep

tiona

lity

mea

sure

s: s

peci

al la

ws,

spe

cial

pla

nnin

g to

ols,

new

non

- or

quas

igov

ernm

enta

l sys

tem

s or

agen

cies

, avo

idan

ce o

f dem

ocra

tic c

ontr

ol, a

nd s

o on

.

traditional democratic channels of accountability (eg to a repre-sentative elected body). As Table 4 suggests, the structures ofrepresentation of the participating partners are diffuse and unregu-lated. There are rarely formalized mechanisms of representation, andit is often difficult, if not impossible, to identify who represents what,who, and how. Finally—and most importantly—participation is rarelystatutory, but operates through co-optation and invitation, usually bythe key power brokers within the institutions. This invariably influencesthe regulatory environment, shapes the interventions, and produces aparticular imagination of the urban in line with the demands, dreams,and aspirations of the included, while marginalized or otherwiseexcluded groups remain symptomatically absent. This process hasbecome the dominant mode of institutional organization and suggestsa shift from a system of representative urban government to one ofstakeholder urban governance that is centered on newly establishedinstitutional arrangements. In our case studies (and this is especiallyclear in Berlin, Athens, Brussels, Lisbon, and Bilbao—see Table 4), a complex range of public, semipublic, and private actors shape aninteractive system in which different, but allied, views and interestsare “negotiated.” Public-private partnerships epitomize the ideal ofsuch cooperative and coordinated mode of “pluralistic” governance.

The emergence of a more fragmented and pluralistic mode of urbangovernance has also contributed to the redefinition of roles played bylocal authorities. In particular, it has served to reinforce the tendencytowards a more proactive approach, letting local authorities actsimultaneously as enablers, partners, and clients. At the same time,the new structures of governance also express the outcomes of anongoing renegotiation between the different levels of government—local, regional, and national—regarding competencies and powers inthe management of urban revitalization. These institutions are bunkeredagainst popular participation and influence by local communitygroups and, indeed, against democratic control and accountability.The cases of London, Lisbon, Brussels, and Bilbao reveal an extraordinarydegree of autonomy and impermeability of the managing organizations.Often, this organic autonomy has helped to reinforce the tendency toavoid a social and political debate over alternative paths and strategies.

Of course, as Table 4 illustrates, the level and degree of institutionalreorganization of the systems and institutions of urban governance is highly variegated and context-dependent. Moreover, as the processof planning and implementation is confronted with social protest orcritique, institutional and organizational forms adjust or transform inorder to maintain legitimacy, social cohesion, and sufficient politicalsupport. Despite the great diversity of local, regional, and nationalchanges in the forms of urban governance and despite their often verydifferent agendas (ranging from merely economic growth-based

566 Antipode

initiatives to integrated projects aimed at improving social conditionsin the city), the project-based nature of these interventions is accom-panied by new institutional configurations, characterized by powergeometries that differ from those of the traditional arenas of govern-ment. A veil of secrecy pre-empts criticism and discussion, and ahighly selective leaking of information is justified on the grounds of commercial confidentiality and technical impartiality. Indeed, aconspicuous feature of these large-scale projects is the relatively lowresistance and conflict they generate. With the exception of Dublinand Brussels, there has been no major “grassroots” contestation ofthe UDPs. In this sense, the role of local growth coalitions is criticalin framing a discourse of renewal, innovation, achievement, andsuccess.

From Planning to ProjectsLarge-scale urban projects are often presented as project-focusedmarket-led initiatives, which have replaced statutory planning as theprimary means of intervention in cities. Planning through urban“projects” has indeed emerged as the main strategy to stimulateeconomic growth and to “organize innovation,” both organizationallyand economically (see Table 4). Large-scale projects and events are perceived as strategic instruments aiming at reshaping the city.Against the crisis of the comprehensive Plan—the classic policy instru-ment of the Fordist age—the large, emblematic Project has emergedas a viable alternative, allegedly combining the advantages of flexibilityand targeted actions with a tremendous symbolic capacity. Essentiallyfragmented, this form of intervention goes hand in hand with aneclectic planning style where attention to design, detail, morphology,and aesthetics is paramount. The emblematic Project captures a seg-ment of the city and turns it into the symbol of the new restructured/revitalized metropolis cast with a powerful image of innovation,creativity, and success. And yet, despite the rhetoric, the replacementof the Plan by the Project has not displaced planning from the urbanarena. In fact, the case studies reveal that in most examples there is a strong strategic component and a significant role for planning.However, in the process, there has been a drastic reorganization of theplanning and urban policy-making structures and a rise of new modesof intervention, planning goals, tools, and institutions.

Urban Projects and the Neoliberal Urban OrderVisioning the City as an Elite Playing FieldThe UDPs included in our study have a variety of characteristics, buttheir sheer dimensions elevate them to central icons in the scripting of the image of the future of the cities in which they are located.


Invariably, the main aspiration is to turn the city into a global com-petitive actor in the domain in which the elites feel it has somecompetitive advantage. Needless to say, the imagin(eer)ing of thecity’s future is directly articulated with the visions of those who are pivotal to the formulation, planning, and implementation of theproject. Consequently, these projects have been and often still arearenas that reflect profound power struggles and position-taking ofkey economic, political, social, or cultural elites. The scripting of theproject highlights and reflects the aspirations of a particular set oflocal, regional, and national—and sometimes also international—actorsthat shape, through the exercise of their socioeconomic, cultural, orpolitical power, the development trajectories of each of the areas. Assuch, the UDPs can be considered as “elite playing fields,” on whichthe stake is to shape an urban future in line with the aspirations of themost powerful segment(s) among the participants.

Clearly, the association of coalitions of elite players changes overtime and from place to place, and alliance formation and break-upredefines development trajectories in important ways. Struggles for inclusion in or exclusion from the elite circles become pivotal in shaping wider process of social, cultural, political, and economicintegration or exclusion. Each case study narrates the sociohistoricaldynamics of alliances in the choreography of social-power struggles(for detailed accounts, see sources listed in acknowledgments). Inconjunction with structural socioeconomic changes, these are instru-mental in shaping the fortunes of urban environments, as they decidefundamental rights to housing, access to services, access to land and the like. Again, the role of the state, the system of governance,and the position of the citizens vis-à-vis these institutional forms will be central in determining the mechanisms of inclusion/exclusionthat are shaped by the new urban development trajectories. Yet, the underlying motive is to reinvigorate a successful accumulationstrategy and accompanying hegemony of vision that revolves aroundthe requirement to turn the projects into viable—that is, profitable—economic ventures.

From a Social to a Spatial Definition of Development:Targeting Places rather than PeopleAlmost all of the case-study projects pay at least rhetorical attentionto social issues associated with the planning and implementation of the project. The assumed trickle-down mechanisms, occasionallyaccompanied by targeted policies to facilitate social inclusion pro-cesses (see Table 4), are considered of sufficient strength to permit asocially balanced and successful development. However, in contrast tothe universal, inclusive, and blanket support policies that characterizedKeynesian and welfare-state interventionism, economic regeneration

568 Antipode

is now primarily achieved via place-bound and spatially targetedredevelopment schemes. While national funding and incentives are diminishing, private development capital (from local, national, orextranational origin) is being mobilized for the implementation ofterritorially defined urban projects. In addition, given the reduction inuniversal welfare programs, the “territorial” approach or “targeted”-area approach have replaced universal support structures. Moreover,the slimming-down of national social redistribution is accompanied bypolicies that direct funds and attention to particular social groups,identified on the basis of their location, their place, and the charac-teristics of their living environment. Similarly, the EU’s urban socialprograms take on an outspoken, spatially focused character.

In sum, there has been a shift from universalist to spatially targetedand place-focused approaches in the 1990s. Targeting policies/inter-ventions to geographically circumscribed areas and to economicallydynamic or promising activities is presented as a path to remedysocioeconomic exclusion. Indeed, in the policy discourse, UDPs arepresented as instruments that can also help to overcome socialexclusion. The official rhetorical attention to social issues is mobilizedpolitically to legitimize projects, while the underlying and sometimesexplicit objective is different. The assumption of trickle-down, how-ever, does not hold true in a context characterized by an absence ofregulatory (labor, financial, and income) standards or income redis-tribution systems at the national or EU level. This accounts, of course,for the significant differences in sociospatial inequality between, forexample, Denmark, with its long social-democratic tradition, and theUK, with its much more liberal-conservative legacy. The targeting ofspaces for “development” permits recasting particular social groups asproblematic, excluded, marginalized, and nonintegrated. Consequently—so the official argument goes—strategies of integration and inclusionshould be pursued by means of territorial, place-based policies, ratherthan through national or European-wide socioeconomic measures,redistribution, and political-economic strategies. From the perspectiveof this NUP, it is places that need to be integrated, not citizens; it isplaces that need redevelopment, not people that require jobs andincome. Of course, the above is not a plea for dismissing communitycapacity-building and local-level initiatives, but they need to beframed in more general redistribution and regulatory polices athigher-scale levels—those of the national state and, more importantly,the European Union.

Interurban Competition for National or European FundsAs most of the UDPs are nationally or EU (co-)funded (see Table 3),municipalities or other forms of local governance compete fortargeted funding. In general, the concentration of public investments


in these large-scale project locations involves redistributing resourcesaway from other uses and areas. In addition, funds are allocated on a project-formulation basis, not on the basis of social needs or con-siderations of fostering the social economy. Either explicitly orimplicitly, the competitive tendering process by national or inter-national organizations favors projects that have a sound institutionaland organizational basis capable of engaging in the complex tasks ofproject formulation, lobbying, negotiation, and implementation. Thisrequires not only a set of sophisticated skills, but also significantfinancial resources, as well as easy access to the centers of power. Allof this is usually not available to the weaker social groups and areas in the city, which are consequently falling behind and are dependenton ad hoc measures imposed from above. Moreover, given the needto foster alliances between often-rival economic and political elitegroups to create the necessary hegemony of vision to compete suc-cessfully for state support and private investment, the developmentactivities are often masked in a web of secrecy and hidden behind ascreen of commercial confidentiality.

In the context of more targeted interventions and reduced universalsocial support, which is increasingly organized and conducted by andthrough elite coalition formation, public resources are drained fromuniversal programs to targeted territorial projects geared at support-ing a particular social configuration—a process that itself harborsexclusionary mechanisms. The misty organizational structures inBrussels, the exclusive elite coalitions of Birmingham, and the shiftingalliances in Copenhagen and Naples illustrate the variety of processesthrough which this takes place.

Authoritarian Management, Exclusion, and Client FormationThe new systems of urban governance—the quasigovernmentalinstitutional framework based upon forging synergies between thepublic sector and the elite fractions of civil society—also justify the adoption of discretionary forms of management. Thus, the way the process develops creates the conditions for the establishment ofcentralized and more autocratic management, which privileges directappointments. Thus, the role of lobbies, family ties, business con-nections, and forms of “clientelism” become dominant. These formsof coalition-formation at the level of project formulation and imple-mentation accentuate a growing gap between actual governance andcivil society, intensify processes of political exclusion, and promote a dual society in terms of a coalition of public/private interests on the one hand and a growing group of disenfranchised on the other.While the above suggests that growth machines, elite coalitions, andnetworks of power are centrally important in shaping developmenttrajectories, it is evident from our case studies that different growth

570 Antipode

machines are associated with different interests and lead to differentmechanisms of inclusion/exclusion.

Nonetheless, the “coalitions” of public and semipublic actorsinvariably produce an exclusive group involved in a common discourseon the progress of the project, a discourse that is not easily opened topublic scrutiny or that would invite or permit dissidence. Importantdecisions and arrangements are made by steering committees, boardsof directors of operating companies, nonaccountable quasigovern-mental organizations, and the like, and are often kept away frompublic scrutiny. Outsiders are usually not tolerated. There is, at best,only a highly formalized form of public participation that maintains keypower in the hands of the existing elite structure and even preventsnewly emerging elites (such as, for example, immigrant entrepreneursand an emerging group of sociocultural elites in the transnationalcommunities in cities like Brussels or Vienna) to enter the establishednetworks of governance and dominant elite coalitions. These coalitionscreate a public discourse on the importance of the project and defineit as a particular milestone in the shaping of the future of the city, andtheir interventions are presented as essential to maintaining a viableposition in the interurban competition at a pan-European or globalscale.

The reactions of the local state to exogenous and endogenouspressures manifest in the establishment of these new forms of urbangovernance (public-private partnerships, development co-operations,new administrative structures, and new political forums) that circum-vent, bypass, ignore, or marginalize certain social groups. The nationalstate itself is often instrumental in shaping and organizing such ex-clusive growth coalitions and in providing the extraordinary regulatoryenvironment in which they can operate outside a system of publicaccountability. In some cases, such as Copenhagen, Brussels, andVienna, such growth-coalitions reproduce or re-enforce existing butthreatened corporatist forms of governance. Informal networks of a relatively small number of individuals occupying key positions in public administration, business, or design/architecture form a newfield of power. In the tendering of large-scale projects, these networksare of crucial importance. Needless to say, the projects are thereforeclosely associated with the interests of the particular coalition sets(and their clients); they are usually self-referential, closed circles thatconsolidate their power while preventing access to others.

UDPs, Speculation, and the Production of Land RentAs producers of urban space, UDPs are inherently speculative andhence highly risky, in the sense that their financial and economicviability depends on the future realization of the produced increasedurban rents. Of course, the latter depend not only on the particular


characteristics of the project or the vitality of the local economy, butalso on national and international economic conditions. In addition,such projects provide opportunities to extract from the state (at alocal, national, or EU level), in addition to its direct contributions,further resources in terms of public investment for infrastructures,services, and buildings. Most of the project’s development costs aresupposed to be met from the sale or renting of land or buildings—rents the value of which has been jacked up through state support, re-regulation, zoning changes, infrastructure investment, and the like.

All this suggests that it is financially very attractive for real-estatedevelopers to concentrate on developing projects for the more well-to-do customers, for housing as well as for businesses. In fact, thefinancial viability of market-driven urban revitalization projects is, of course, invariably predicated upon closing existing rent gaps bymeans of the production of a new built environment that is at leastpotentially capable of generating high income. The uncertain and,hence, intrinsically speculative character of the production of newland rent points towards the key role of the state as the preferredinterlocutor for carrying the financial risks associated with such real-estate-based urban restructuring (see also the chapters by Smith andWeber this volume).

Whether successful or not, the dependence on rent returns for thefeasibility of UDPs invariably targets high-income segments of thepopulation or potentially high-productivity-based economic activitiesand makes the success of the project dependent on the dynamics ofthe real-estate sector (see Table 5). This does not contribute toalleviating the process of social segmentation and exclusion and oftenleads to the creation of islands of wealth in an impoverished environ-ment, resulting in the city becoming a patchwork of socioeconomicallyhighly diversified and more mutually exclusive areas. To the extentthat low-cost or social housing is included in the project, the lowerrevenue from such targeted housing policy undermines the financialfeasibility of the project and requires, in turn, considerable statesupport or subsidies. Table 5 summarizes the relationships betweenreal-estate development, the production of high rental returns, and aproject’s financing structure. Moreover, given the real-estate-basednature of these projects, the public funding is, through private rentappropriation, transferred to the private sector. Consequently, thereis a flow of capital from the public to the private sector via the builtenvironment, often without mediation by means of socially targetedpolicies or instruments.

The City as PatchworkGiven the often radically new socioeconomic functions associatedwith UDPs, a process of transfer and of dislocation of jobs inevitably

572 Antipode


Table 5: Relationship between Dynamics in the Real-Estate Market and UDPDevelopment: Nine Cases

Project Real-Estate Market, the Production of Rent, and the Development of the UDP

Berlin The reunification of Germany was decisive for the development Adlershof of Berlin’s real-estate market and triggered a sudden rush of

initiatives from international and national investors anddevelopers. This was re-enforced by a strong competition forattractive sites. Today, the Berlin real-estate market showsincreasing supply-side reserves and demand structures that fallshort of expectation. These developments have had a majorimpact on the progress and pace of the project implementationin Adlershof. Here, a high volume of office and housing siteshas been planned without considering the decreasing demand.Due to the restraint of private investors, project developmenthas slowed down in Adlershof.

Bilbao As in most other cities throughout Spain, since the mid-1980s, Abandoibarra the real-estate market in Bilbao has experienced an

extraordinary boom. During the 90s, housing prices in the citycontinued to rise, although the rate of growth decreased in thelast third of the decade. Real-estate prices in Abandoibarraboth benefited from and contributed to this boom. In the lessthan four years that separated the beginning of redevelopmentworks and the marketing of the first housing land slots, landprices in Abandoibarra more than doubled (2.3 times). Real-estate price increases have spread throughout the city, but theytend to be proportionally higher in Abandoibarra’s adjoiningneighborhoods. And, while it cannot be said that land priceincreases in the city are exclusively related to Abandoibarra’sredevelopment, it is nonetheless certain that this scheme iscontributing significantly to this trend as well as to thealteration of housing prices differentials among differentneighborhoods across the city.

Brussels Due to the continuous demand for additional office space in theLeopold Leopold Quarter—a demand led by the EU institutions, but Quarter also by both national and international banking and insurance

sectors—rental values have systematically increased over thepast decades. Rents in the Leopold Quarter are now amongstthe highest in the country (up to 200 Euro per m2). Theincreasing demand for office space has also generatedspeculative activities in the area: remaining residential blocksare systematically bought by property developers and eventuallydemolished and replaced with offices, regardless of land-useplanning regulations. Other residential pockets have beenupgraded and made available for wealthy (international)residents, or are now de facto (and illegally) used as offices forsmaller organizations (for example, lobby groups and lawfirms). Globally operating real-estate agents (such as JonesLang Wootton and Healey & Baker) have come to dominatethe Leopold Quarter market, while construction and propertydevelopment remains mainly in Belgian (and French) hands.

574 Antipode

Table 5: Continued


Copenhagen In general, the prices in the housing market skyrocketed duringOrestaden the second half of the 1990s and the social geography within the

city has become more polarized. There still exists an importantsocial-housing sector, but the role of this sector has graduallydeclined, because housing construction subsidized by themunicipality and the state has almost stopped since thebeginning of the nineties. The municipal housing policy hasincreasingly been used as a tool to regulate the tax base ofCopenhagen, favoring the middle classes. The UDP follows this trend.

Lille Euralille and other UDPs in the Lille agglomeration did not Euralille lead to skyrocketing increases of land and housing prices.

However, inside the agglomeration, real-estate marketdynamics have produced a displacement of lower-middle-classand working-class population to “cheaper” areas. Gentrificationprojects in particular (first Vieux Lille, then Euralille,Wazemmes, and Moulins) with more offices, exquisite services,and middle- to upper-class housing estates, led to local pricerises, driving deprived population groups to otherneighborhoods, especially to the south of Lille or even outsidethe agglomeration. The UDP has contributed to this growingspatial differentiation of real-estate and rental values.

Vienna Rents skyrocketed in the second half of the 1980s and haveDonau-City been stagnating since then. This can be explained by a

contradictory movement. On the one hand, there still exists animportant public-housing sector. Housing constructionsubsidized by the municipality was intensive until 1996, andrestrictive rent laws were applied until 1982. On the other hand,liberal regulation is advancing: subsidies for construction ofhousing have been dramatically reduced over the last years.Furthermore, publicly subsidized housing is increasinglyoriented towards the upper middle classes. The UDP is aparadigmatic case illustrating these changes.

Naples During the 1980s, prices in the real-estate market grew Centro dramatically to reach record levels in 1991 and 1992, Direzionale particularly in selected central areas. They subsequently

declined almost as fast as they had previously risen, continuingto fall until 1997, when the first signs of recovery appeared andprices stabilized or began to increase again. Apartments in theCentro Direzionale di Napoli (CDN) became available at thepeak of the market price for prime location units and thus couldbe expected to yield quite significant returns. The developer,however, sold 90% of the residential units to a state-runpension fund for the employees of public companies andguaranteed his return. By law, only families working for stateagencies are entitled to rent those apartments, and rental pricesare set lower than the market price according to the rules of the


Table 5: Continued


1978 Fair Rent Act. This decision removed these units from thesale and rental markets, creating a separate segment that issomewhat insulated from market dynamics. The project hadalso a depressing effect on the value of building land for otheroffice projects in the city.

Dublin Property demand in both the housing and office markets, both Docklands within the UDP site and in the surrounding neighborhoods, has Development grown rapidly in the 1990s and land prices in the area have Project (with soared due to the presence of the IFSC. With companies IFSC as queuing to get into the successful IFSC site as the economy flagship) boomed in the 1990s, the intense demand for office space

squeezed other real-estate markets, most notably the provisionof social and affordable housing within and around the UDP.Average house prices tripled between 1989 to 1999, while theprovision of social housing evaporated due to the post-1986retrenchment of public-sector welfare spending. The housingsituation is particularly acute in the docklands UDP andneighboring areas. Local residents cannot compete withinvestors or the predominantly young professionals whopurchase or rent the limited supply of private residential unitsavailable in the area. The result has been gentrification of theinitial UDC site and the exclusion from the life of the area,through the property market, of many of the latest generationof the indigenous population.

London The real-estate market on the South Bank is subject to South Bank contradictory tendencies. On the one hand, the South Bank is

one of the most expensive spots in central London because ofits central location opposite the city and Westminster. In termsof real-estate prices, it is exceeded only by those two areas. On the other hand, the South Bank’s community developmentgroup, Coin Street Community Builders, owns 6.5 acres of landon the South Bank, which is designated for the construction ofco-operative housing schemes and public spaces. This has acertain downward effect on real-estate prices. However, therecently opened new underground line (the Jubilee Line) hassignificantly improved the South Bank’s connections with therest of Central London and will certainly have an upward effecton real-estate prices. Furthermore, the successful“reimagineering” efforts through public space improvementsand consistent place marketing, together with the opening ofmajor nearby attractions such as the new Tate Gallery, will alsohave an effect on real-estate prices. Meanwhile, the housingmarket remains strongly dominated by Local Authority housing(38%), housing co-operatives (28%), and semipublic institutions(17%). Only 15% of residents live in privately owned housesand 2% in privately rented flats. Another estimated 2000 adultslive in hostels, on the streets, and in other nonpermanentaccommodation (estimates for 1994).

takes place. Spatial labor markets become out of joint or are mis-matched. Targeted labor-market policies might remedy some of thisdisjuncture, but the sheer scale of labor-market restructuring oftenimplies prolonged stress on the labor market combined with painfulprocesses of adaptation and, frequently, a growing separation betweenremaining local communities and the incoming new workforce. Thisseparation is often accentuated through now-generalized processes ofderegulation of labor markets at national and EU levels. This leads toa double-edged dualization of labor markets. Increasingly, dual orsegmented labor markets are seen, with a group of highly paid andskilled executives on the one hand and large groups of less secure—often-informal—workers on the other, and many other categories in between. The segmentation of labor markets, which is facilitated by the national deregulation of labor-market rules and other changesin the national regulatory frameworks, becomes cemented in and ex-pressed by the socioeconomic composition of the UDPs. The inclusionof the existing labor pool proves difficult or impossible, while retrain-ing and targeted labor-market entry policies tend not to be verysuccessful, despite the prolonged support for such programs.

This socioeconomic restructuring, combined with a mosaic of newlyconstructed built environments with their associated increased rents,produces urban islands, a patchwork of discrete spaces with increas-ingly sharp boundaries (gated business centers, leisure, or communityspaces). This is re-enforced through a combination of physical, social,and cultural boundary formation processes. The overall result is theconsolidation of a fragmented city, which accompanies the reorgan-ization of the sociospatial fabric of the urban agglomeration (see alsoMacLeod this volume). In some cases, this mosaic takes the form ofsuburbanization of poverty, while internal differentiation accentuatessociospatial differentiation and polarization, a process that often takesoutspoken racialized forms (notably in Brussels, Berlin, Rotterdam,and Vienna).

Conclusion: Neoliberal Urbanism and Democratic DeficitUrban regeneration and development policies in the European city, inthe context of national and EU-wide tendencies towards the imple-mentation of neoliberal socioeconomic policies, brought about criticalshifts in domains and levels of intervention and in the compositionand characteristics of actors and agents, institutional structures, andpolicy tools. Over the last decade and a half, urban regeneration policyhas become an increasingly central component of urban policy. Forthe most part, urban regeneration schemes based on large-scale UDPshave emerged as a response to urban restructuring processes asso-ciated with the transformation of production and demand conditionslocally, nationally, and globally; they generally combine physical

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upgrading with socioeconomic development objectives. In particular,such projects have become an integral part of neoliberal policies toreplace more traditional redistribution-driven approaches. The searchfor growth and competitive redevelopment has become the leadingobjective of the NUP in an attempt to reassert the position of cities inthe emerging global economy. Enhancing the competitive advantageof cities is seen as largely dependent on improving and adapting thebuilt environment to the accumulation strategies of a city’s key elites.Therefore, physical reconstruction and economic recovery tend to gohand in hand and, very often, are perceived as quasi-simultaneousprocesses: megaprojects are viewed as providing a solid foundationfor fostering future growth and functional transformation. At thesame time, urban revitalization is projected beyond the cities’ limitsand linked to regional recovery and internationalization strategies.

How do the various UDPs reflect this NUP? Figure 1 already sum-marized various critical dimensions of this policy. Most UDPs havecaused increased physical and social fragmentation in the city. Notableexceptions include Kop van Zuid in Rotterdam, which established a physical-functional—but not a social—“bridge” with the rest of thecity, and Oerestaden in Copenhagen, which has—after prolongedprotest—recovered some housing and service functions that wouldotherwise have been lost. The other projects have primarily filled gapsfor the (higher) middle-class real-estate and consumption-goodmarkets, but not for other, usually poorer and/or immigrant sectionsof the urban population. While economic gaps have been “plugged,”greater social disparities and sociospatial fragmentation have beenproduced.

A central issue involved in urban regeneration policies is the relationof UDPs to existing planning instruments and regulations. Whilethese projects are generally inserted into existing statutory planningguidelines, the initial conception, design, and implementation lies at the margins of formal planning structures. The framework of“exceptionality” associated with these initiatives favors a more auto-nomous, if not autocratic, dynamic marked by special plans and pro-jects that relegate statutory norms and procedures to a secondary andsubordinated place. Many local authorities and national governmentsjustify the exceptionality of a UDP on the basis of different factors:scale, the emblematic character of the operation, timing pressures, the need for greater flexibility, efficiency criteria, and the like.“Exceptionality” is a fundamental feature of the new urban policy,based on the primacy of project-based initiatives over regulatory plansand procedures. These changes involve, among other things, theemergence of new policy tools, actors, and institutions, and they haveimportant consequences for urban policy-making in general and for local democracy in particular. These projects exemplify like no


other the trends towards a new local mode of regulation of urban(re)development and management shaped by the pressures of com-petitive restructuring and changing social and economic priorities, as well as by major political and ideological shifts. Indeed, theemergence of NUP rests significantly on the establishment of newforms of intervention at the local level that, to a large extent, con-stitute a rupture with traditional forms. Entrepreneurialism is aboutthe public sector running cities in a more businesslike manner, inwhich institutions of local governance operate like the private sectoror are replaced by private-sector-based systems. Indeed, the NUP isclosely associated with fundamental shifts from traditional govern-ment structures to a more diffused, fragmented, and flexible mode ofgovernance. The combination of different spatial and administrativescales in urban policy-making and the increasing fragmentation of competencies and responsibilities is one of its most striking aspects.In most cities, the full dimension of urban regeneration cannot beadequately apprehended without reference to the multiplicity ofagents, the articulation of spatial scales at which they operate, and thefragmentation of agency responsibility within the urban arena. Insome cases, this trend seems to be linked to a shift from hierarchicalrelationships (in terms of the traditional territorial hierarchy of statu-tory planning procedures) to a more collaborative and stakeholder-based, but often socially highly exclusive, scheme in which partnershipsbetween and networks of a variety of elites play a key role. However,at the same time, fragmentation and diversity are also accompanied bytendencies towards the exclusion of certain groups and collectivesfrom participating in the decision-making process. A democratic deficitemerges as a central element of this strategic approach.

The fragmentation of the mode of governance redefines the role and position of local authorities. Indeed, in the name of greaterflexibility and efficiency, these new institutions compete with andoften supplant local and regional authorities as protagonists andmanagers of urban renewal. In fact, the new governance structures ex-press the outcomes of an ongoing renegotiation between the differentlevels of government—local, regional, national, and European—andbetween public and private actors over competencies, decision-makingpowers, and funding. The establishment of these new structuresfrequently involves massive redistribution of policy-making powers,competencies, and responsibilities away from local governments tooften highly exclusive partnership agencies, a process that can bedescribed as the “privatization of urban governance.”

The fragmented character of many of the UDPs—which are oftenself-contained, isolated, and disconnected from the general dynamicsof the city—contrasts sharply with the strong emphasis on coordinatedaction of different actors, the encouragement of partnerships, and the

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building of networks and support coalitions. These are presented as providing a potentially superior form of urban management, moreflexible and efficient, and thus better adapted to the competitivetrends of global urban change. The trend towards a more flexible and network-oriented approach is often perceived as a validation of“bottom-up,” less hierarchical, and more participatory dynamics.However, participation is often limited to selected professionals—architects, planners, economists, engineers, and so on—who havebecome increasingly influential, while the nonprofessional sector andless powerful social groups are largely excluded.

In the same way, the shift from centralist, formalized, bureaucratized,hierarchical, top-down planning approaches to decentralized, morehorizontal, informal, flexibilized, bottom-up, and network planningapproaches has gone hand in hand with increasing inequality in accessto decision-making. The role of experts is strengthened at the expenseof a diminishing role of the public in general and of traditionalorganized groups in particular, with a consequent loss of democraticaccountability. Yet these new forms of governance are often legitimizedon the basis of their superior ability to offer a more inclusive, non-hierarchical, and participatory approach to planning. However, therealities of a network based on the primacy of the expert anddominated by the fusion of technical, economic, and political elitessuggest a selective exclusion of major sections of civil society in termsof access to decision-making processes.

As is succinctly summarized in the Viennese case study, “theadvantage of these personalized networks is mutual trust and highadaptability; its disadvantage is a decrease of public accountability, aweakening of civil society and an erosion of the existing parliamentarydemocracy.” In those cases in which neighborhood movementsreacted to the initial lack of local democracy (Rotterdam, Dublin),participation had to be partly restored, and neighborhood demands,as well as concerns about social issues, climbed a few notches up thepolicy priority list. Nevertheless, the limited and spatially targetedinterventions associated with project-based urban restructuringpolicies prevent these movements from transcending the localizedissues associated with a project’s implementation and from translatingthese social demands into more generalized policy models at higherspatial scales. This is arguably the most significant implication of the NUP. The downscaling of urban policies to place-specific inter-ventions in a context in which traditional redistributional policies are being reduced at higher-scale levels forces social movements tooperate through localized actions. This, in turn, militates against theurgent need to translate these place-specific actions and demands into more general social and economic programs articulated at thenational, EU, or international scale.


Acknowledgments and ReferencesThe analysis presented in this paper draws upon the results of a thirty-month research project on Urban Redevelopment and SocialPolarization in the City (URPIC). The support of the EuropeanUnion’s IVth Framework Program is gratefully acknowledged.

The project was co-ordinated by Frank Moulaert, ArantxaRodriguez, and Erik Swyngedouw. Although the present paper cannotprovide full empirical details on each of the thirteen city cases, detailedcase-study results have been published in the following journals:Journal of European Urban and Regional Studies 8(2) 2001, Geo-graphische Zeitung 89 (2 and 3), 2002, Rassegna Italiana di Sociologia41(4), 2001, and Ciudad y Territorio—Estudioas Territoriales (CiTET),November 2001 and forthcoming 2002.

Case studies will also be published in Urbanising Globalisation, by F Moulaert, A Rodriguez, and E Swyngedouw, Oxford UniversityPress, forthcoming 2002.

The project reports, images and further details on each of the pro-jects can be found on the World-Wide Web at http://www.ifresi.univ-lille1.fr (select Programmes de Recherche and then select URSPIC).

Many of the insights reported in this paper come from a largenumber of participants in this project. We would like to acknowledgeour debt in writing this contribution to all those who worked with us on this project. Their fieldwork, data collection, interviews, andsurveys provided the foundation and material and many of the insightsfor this project, and their thoughts and writings were used extensivelyin the preparation of this paper. We are very much indebted to:Serena Vicari and Lucia Cavoli (Naples), Pavlos Delladetsimas(Athens), João Cabral (Lisbon), Elodie Salin and Thomas Werquin(Lille), Elena Martinez (Bilbao), Guy Baeten (London and Brussels),Louis Albrechts (Brussels), Hartmut Hauserman and Katja Simons(Berlin), Andreas Novy, Vanessa Redak, and Johachim Becker(Vienna), John Anderson (Copenhagen), Brendan Bartley and KaseyTreadwell Shine (Dublin), Alan Middleton and Patrick Loftman(Birmingham), and Gerard Oude Engberink and Frank Miedema(Rotterdam).

We are also grateful to Neil Brenner and to Nik Theodore for theirsupport, editorial suggestions, and patience, and to the referees fortheir comments and suggestions. Of course, none of them should beheld accountable for the contents of this paper.

Endnotes1 This paper is based on a large number of research reports from the URSPIC project,written by more than twenty-five academics working on each of the thirteen cases. Thepaper presented here digests material that comes from all of these papers, and partswere actually written by one or another of our collaborators. References in the original

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research documents often come from our partners’ national sources (Danish, Greek,Italian, Spanish, German, and so forth). We considered including an exhaustive trans-national literature list, but this would have been unacceptably long and not all thatuseful for many people. Alternatively, we could have opted for inserting just a standardlist of mainly Anglo-Saxon references, but this would not do justice to the wide varietyof national insights on which we drew. Therefore, we chose not to have references at all, but decided instead on the following. The names of the individuals involved inthe project are listed in the acknowledgments. All project reports, individual casestudies, references, images, and other materials are available on the World-Wide Webat http://www.ifresi.univ-lille1.fr; select Programmes de Recherche and then selectURSPIC). In addition, five special journal issues (of which two are in English) and aforthcoming book (to be published in 2002) give detailed information on variousaspects of the research for many of the case studies (see Acknowledgments section for details). In fact, all of the case studies are covered in one way or another in thesepublications. People interested in particular details of and further information on anyof the case study projects and cities can consult either the Web site or these publications.

Erik Swyngedouw is University Reader in Economic Geography in the School of Geography and the Environment, Oxford University,and Fellow of St Peter’s College. He is also an Associate Fellow of the Environmental Change Institute. His research has focused on thepolitical-economy of the capitalist space-economy, on urban changeand globalization, and on the political-ecological of water. He iscoeditor of a forthcoming book on Urbanising Globalisation (OxfordUniversity Press, 2002) and another on Participatory Governance in theEuropean Union (Leske & Budrich, forthcoming). He has coedited(with Andy Merrifield) The Urbanisation of Injustice (London,Lawrence and Wishart; New York, New York University Press, 1996).

Frank Moulaert is a Professor of Economics at the University of LilleI, France. He is head of the European PhD program in Industrial andLabour Economics and Regional Development and coordinates tworesearch projects under the EU’s Framework V program. His latestbook (together with A Rodriguez and others) is Globalization andIntegrated Area Development in European Cities (Oxford UniversityPress, 2000). His current research focuses mainly on local develop-ment and social innovation.

Arantxa Rodriguez, Associate Professor at the Faculty of Economicsof the University of the Basque Country (Bilbao-Spain), focuses herresearch on the dynamics of socioeconomic restructuring and spatialdevelopment planning in the Basque Country. Since the mid-1980s,she has been directly involved in the production of several urban plansin that area. She has also carried out research on the articulationbetween physical, functional, and economic planning and local eco-nomic development strategies. She is coauthor, with Frank Moulaert,of Globalization and Integrated Area Development in European Cities


(Oxford University Press, 2000). Her other publications include“Nuevas políticas y nuevos instrumentos para la revitalización metro-politana,” in Encuentros de Desarrollo Local y Empleo (Coruña, 1998),and “Planning the Revitalisation of an Old Industrial City: UrbanPolicy Innovations in Metropolitan Bilbao,” in Local EconomicDevelopment in Europe and the Americas (edited by C Demazière andP Wilson, Mansell, 1996).

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“Neoliberal urbanization in Europe: Large scale urban development projects and New Urban Policy”