Exam #2 Study Guide - Urban Geography (Prof. Benjamin Smith)
Exam #2 Study Guide - Urban Geography (Prof. Benjamin Smith)
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Date Created: 01/11/15
Study Guide Exam 2 Urbanization in LDC 1 Overall Understand how and why rapid growth occurred in LDC cities and why the colonial and postcolonial context matters and how the eras differed 2 What fraction of urbanites live in the developing world What do the book s authors say drives LDC city growth vs developed country growth What is the impact of colonialism on LDC urbanization 9 Fraction more than 23 of urbanites in developing world 9 Authors say this is because demographic growth drives city growth in LDS s not economic change 9 Colonialism generally completely rearranged the on the ground offer 3 Where will most of the world s largest metros be by 2015 Developed or LDC countries 9 By 2015 all but 5 of 30 largest metros will be in less developed countries LDC 4 Why did China not have much urban development after the revolution What changed around 1980 Why not much urban development 9 Until mid19805 the pass system hukou that determines where you can live where children can attend school and even where you can buy food was strictly enforced 9 Thus rural people kept out of cities to the tune of 70 of population What changed 19805 9 The Party decided urbanization could unleash economic growth and they rolled back enforcement the number of urban dwellers doubled in 20 years 9 The number of Chinese cities with 500000 went from 16 to 92 5 How has Lagos s population changed since 1950 and where will it go in the future Lagos Nigeria 9 It was a loosely populated spread out shingport city of only 300000 in 1950 9 By 2000 a crowded fast paced if not that pretty commercial capital 87 million 9 By 2015 it will have 16 million meaning that its population will have increased 5600 in 60 years 6 What are factors promoting urban growth in LDC s there are ve bullets on this A In the developing world death rates have declined rapidly since 195 0 while birth rates have been slower to fall to meet the death rate 9 This means many more people born than dying meaning big population growth B A lot of the highest birth rates are in rural areas where there has not been a signi cant economic or agricultural transformation to absorb all these people 9 In Europe this demographic transition coincided with the industrial revolution and settler colonialism meaning there were many more opportunities for all the new people C Thus when young people come of age they undergo ruraltourban migration usually out of desperation mixed with hope though usually no rm job prospect D Furthermore because the new population in cities is so young these cities have high rates of natural increase meaning children born to someone already living in a place 9 Usually city dwellers have fewer children than rural dwellers but still it turns 2 people into 4 E Besides the dynamics of population growth environmental damage and con ict can send people pouring into cities 7 Do urban theories from the core necessarily work in the periphery Urban theories like cumulative causation which is driven by industrial location and agglomeration and which posits that new important centers emerge because of spread effects of the need to service the core could not explain huge growth absent industrial location Also modernist development economics theories like Rostow s allegedly based on the improvement in agricultural efficiency and export were proved wrong by history What have been some conditions necessary for core urban theories to work that are not met in LDC s Theories from the core do not necessarily work in periphery Conditions necessary from the core 1 Industrial location and agglomeration 2 Agricultural efficiency and export 8 Do world systems theory and dependency theory believes that it is a coincidence that the periphery is poor and the core is rich Why or why not What are satellite relationships Many thinking coming from periphery argued that it was not just coincidence that Europe was rich and its former colonies were poor 9 In fact it was the unequal terms of trade low wages and profit ight but in under colonialism that helped impoverish these countries World system theory and dependency theory shared the idea that places were linked in satellite relationships where a big world metropolis would control several smaller national and international satellite cities which oversaw a group of small towns which oversaw families which oversaw individual people 9 On this chain wealth and profits owed up towards the top and control owed down the chain 9 Describe the process driving Gilbert and Gugler s Model of Peripheral Urbanization Gilbert and Gugler s Model of Peripheral Urbanization Meant to explain how global production and trade impacts cities and urban systems in LDC s 9 Rural to urban migration increases as commercial agriculture spreads taking away land taxes increase in rural areas and cheap imports overrun local crafts 9 As production expands in rural areas get new market centers in the interior while national capitalmaj or port grows rapidly as processing center 9 In large cities state encourages manufacturing government bureaucracy grows and highincome groups emerge 9 Workers move to large cities hoping for employment add to the economy of the large cities through their presence 9 State tries to support industry through infrastructure investment and the population through social services 9 Private sector begins outward development from the central cities to avoid rising traf c and rents both sprawling low rent areas and new elite suburbs 10 What type of international division of labor was put in place under colonialism What are gateway cities What are the two types of them What type of architectural and planning styles were used in these cities Even under colonialism get the beginnings of the international division of labor although a much simpler periphery raw materials amp core manufacturing 9 To get out raw materials and establish control colonizers established gateway cities 9 Act as links between one country or region and others 9 Emerged in the colonized periphery where goods from the hinterland usually one or two commodities only were collected and exported and where nished European goods entered 9 Two types A New city Site chosen by colonizers in spite of on the ground order planned with ceremonial spaces of ces depots barracks for soldiers and housing for colonists Later on neighborhoods for locals begin to emerge as they come seeking jobs Mumbai Kolkata Ho Chi Minh City Hong Kong Jakarta Manila and Nairobi all of this type B Graft onto existing settlement Taking an already urbanized place with a dense population and creating a new colonial district usually at the center of town or in a new spur off of downtown with churches palaces of ces all in colonial architectural style 9 Mexico DF Shanghai and Delhi all of this type Architectural planning Most especially the colonizer s preference for singlefamily homes over extended family compounds 11 Describe in detail King s model of colonial city contextualization King s model helps to contextualize colonial cities in terms of their time period and internal amp external relationships Consists of 6 scales 9 The city internal dynamics form function technologies 9 Region production systems transportation systems internal trade 9 Colonized society the mix of old and newly introduced forms of social strati cation and cultural attitudes 9 Metropolitan power relations with the colonizer s capital city 9 Colonial empire the role of the city in the wider Empire strategic administration transport etc and the nature of that Empire at that point in time 9 World economic system place in the evolving global system of cities 12 Describe Delhi before the British from 18031857 from 18571911 from 19111947 18031857 Delhi was just a regional outpost for the British in a stable territory so only a few hundred Brits who took up residence near the Palace in the old elite housing 9 They lived not that differently from the locals but did not mix with them From 185 7191 1 Following the Mutiny military control increased 9 Free re zones cleared around the palacefort and the city walls the military occupied the Northern 13 of the city 9 British moved north of the old city beyond the railroad to the Civil Lines with open spaces gardens and new imperial buildings locals con ned to the crowded but still viable walled old city which was increasingly being hemmed in by railroad lines From 19111947 Delhi became centralized capital of India with the district of New Delhi to be the administrative center 9 It was planned and sprawling with tree lined boulevards designed to be traveled by a moderate number of cars 9 Whole area put into a hugely complex zoning scheme that combined British Indian civil and military categories that dictated everything from garden size to the distance from the district Government House 13 What are the six stages of the colonial timeline 9 Eve of Colonialism 9 Mercantile Colonialism 9 Industrial Colonialism 9 Late Colonialism 9 Early Independence 9 Neocolonialism 14 What was the rest of the world doing during the European Dark Ages 9 ArabIslamic in uence in SW Asia from 7th century on Mecca Damascus Baghdad from 11th to 16th century to both the north and south of the Sahel and along the East coast Mombasa Dares Salaam Zanzibar Mogadishu 9 They get supplanted by the Ottoman Turks who rule from Istanbul for 1453 until the end of WWI taking most of SW Asia and SE Europe 9 West African cities as the end of the transSaharan and thus silk road trade Mali Gao Timbuktu Jenne Southern African cities were cultural iron smelting commerce centers Great Zimbabwe Bulawayo 9 Ming Dynasty of 15th and 16th century an incredibly advanced civilization as was Angkor in Cambodia 9 In the Americas Aztecs Tenochtitlan and Incas Cuzco had highly organized and strati ed societies with great infrastructure roads and terraced fields 15 What starts mercantile colonialism What was the purpose Was it private companies or governments Were there a lot of settlers Why did this phase end 9 Starts with individual entrepreneurs and eventually trading companies eg British East India Dutch East India etc going to seek products 9 At first gold and silver but later valuable items not grown in Europe like sugar spices and silk Because companies were businesses only could afford to settle a few Europeans mostly in small districts in existing cities although new cities like Cape Town Lima and Manila were exceptions Over time as profits reinvested armies are bought to take over and manage supply areas transport and warehousing is constructed 9 But still impacts on the existing urban system were relatively small But m by 1800 Napoleonic wars had Europe s attention big profits could be made domestically in industrialization the old trading companies were failing under the debts caused by running a colonies and independence movements sprouted in the Western Hemisphere 9 Thus Europe stopped wanting colonies for a while 16 What starts industrial colonialism Was it private companies or governments How were gateway cities segregated Were these cities ports Who controlled what parts of the economy Starts Industrialization and rising incomes cause demand for raw materials and food grow in Europe 9 So this time the governments got more involved in organizing colonial territory and production within it With it came major changes to the urban systems of colonized countries In these gateway cities segregation by ethnicity continued with railroads parks race tracks and other open spaces physically separating Euros from everyone else 9 Control Europeans dominated foreign trade nonEuropean expatriates often control distribution and retailing within the colonies Indians in much of Britain39s empire The service and commercial sectors grow while industrialization was sti ed to prevent competition 17 Why and how were costs cut during late colonialism What are garden cities and who were they built for Why and How Because of two World Wars and weak demand in between many colonies cut costs by looking towards economies of scale 9 That meant probusiness land reform and mechanization which forced out small famers They came to cities in rural to urban migration where the menial service sector could not accommodate them all 9 European planners allowed the first squatter settlements to emerge during this time 9 Also garden cities were built for elite and middle income expatriates who arrived in one last surge due to limited opportunities in Europe Their presence all kept newly educated locals from obtaining middle class standing through commercial or administrative positions 18 During Early Independence what is there a big wave of Who dominates ownership Who migrates to European cities Why did Europe like this Why did the colonies like it Why did it backfire on the colonies Though Independence had come to the Americas minus some of the Caribbean in the 1800 s it came to Africa and Asia in the 1950 s and 60 s 9 This brings another wave of rural to urban migration as locals come in hoping to fill vacuum in administration left by Europeans However the Europeans still often dominate ownership the commercial eXport sector which was weak bc of weak demand from postwar Europe 9 Since there was an overall lack of j obs in the former colonies and the former colonizers needed unskilled labor big migrations occurred between colonial cities and European cities Initially it was the colonized going to their colonizer Algerians to France Indians to UK but eventually other poor nearby countries like Turkey started sending massively 9 For Europeans these new workers were cheap and nonunionized for their home governments they helped relieve urban crowding while sending back remittances It back red for former colonies as many of the best young workers left and they did not receive many useful skills while a lot of remittances went to building small shops and houses 19 What happened in terms of industrialization in the NeoColonialism era What helped bring about the international division of labor 9 For the first time beginning in the late 1960 s industrialization in the form of lowwage labor intensive processes comes to the periphery thanks to the new international division of labor and transnational corporations 9 Wages had risen since WWII in the core but in the periphery the steady stream of ruraltourban migrants and the reserve labor pool that was the informal sector kept wages low 9 Containerization and improved communication technologies made branch plants more efficient and responsive even if located far from headquarters 20 What are NIC s What is FDI and did it go to urban or rural areas Was the new middle class large in LDC s Why women in the workforce How does the state s role shift NIC Newly Industrialized Countries especially South Korea and Taiwan got in early and rapidly improved their incomes later Thailand Malaysia and Indonesia got in on it though without quite the income gains Cities received the bulk of this FDI foreign direct investment or money invested by transnational corporations meaning they got even more ruraltourban migration A small conservative middle class began to emerge but an even larger mass of poorer people ooded the informal sector For the rst time women enter the workforce in large numbers partially because they are favored as workers in assembly plants because they are seen as less likely to unionize or stay long term with the company The states role shifts 9 Spending money to attract FDI means loans were taken out for airports conference centers and free trade zones This led to debt which led to IMF mandated structural adjustment programs which led to cuts in urban services and social welfare leaving many without hope of getting basic services from the shrunken government apparatus 21 What are the biggest problems of overurbanization What are megacities What are the one s currently in LDC s What is primacy and centrality Are they in the top tier of world cities Problem in many LDC s is overurbanization or that populations grow more rapidly than iobs and housing 9 These new cities of 10 million are called megacities Include Jakarta Cairo Sao Paulo Bangkok Beijing Kolkata Dhaka Lagos Manila Mexico DF New Delhi Shanghai and Tehran 9 All are bigger than more than 100 UN member countries 9 They tend to have both primacy in that they are several orders of magnitude bigger than any other city in the country as per rank size rule and centrality a concentration of most economic political and cultural activity within one city 9 They often do not fall in the top tier of world cities but perform intermediate functions between world markets and primary producers or function as branch plant locations Urban Form and Land Use in LDC s Part One 1 Big Picture Understand the commonalities and differences between cities in different areas not just the first question but look throughout for yourself 2 What are commonalities all LDC urban areas share Does that make them all alike Lectures go region by region minus former Soviet Union to look at urban land use and form 9 Although every city is different ruraltourban migration the world economic system the presence of an informal economic sector squatter settlements and a highly unequal division of income are commonalities most of these urban areas share However impacts and results of these processes differ because of culture society environment previous land use patterns and history 3 What was the Laws of the Indes What is a zocalo What were streets and blocks like in the colonial Latin American city Who lived where What were the Spanish about Were Portuguese cities just like Spanish ones How were Portuguese port cities divided The Spanish towns in the new world were designed according to the Laws of the Indes which in turn drew on Roman and Arab urban in uences on Spain 9 The basic unit was a central plaza called a zocalo almost always with a cathedral and government palace and market nearby with a gridiron street pattern 0 Streets were narrow blocks contained long narrow lots Spanish settlers near the center indigenous were at the periphery of town along with slaughterhouses and cemeteries 9 Spanish were about conversion and raw materials especially gold putting people into cities and towns made both conversion and turning them into wage laborers easier Portuguese had no similar guidelines so it was more piecemeal The ports in particular were divided between a lower city with the ports and market and the upper city with the fort church and wealthy 4 What are the 8 parts of Ford s Latin American city model know especially what a commercial spine zone of accretion and sector of disamenity is Are zoning codes well respected in much of the world In order to find some commonalities in current Latin American cities Larry Ford developed this model A Downtown is CBDmarket with elite neighborhoods and a road network that feeds into it B There is a commercial spine that extends from CBD along the main transport artery excellent urban amenities like tree lined boulevards golf courses parks restaurants office buildings usually there was a mall at the edge of the spine C An industrial sector wedge that follows a highway or railroad and ends in an industrial park D Zone of maturity which is middle income and has urban services regular power schools sewers E Zone of accretion where lower income neighborhoods are moving towards maturity Because of periodic hyperin ation many lower income households invest all money in their house adding oors and rooms sometimes to take on boarders leaving rebar sticking out in case of future expansion F Edge squatter settlements few services housing made of cheapest scavenged materials like timber and corrugated iron G Sectors of disamenity along industrial sectors and polluted rivers that also have squatter settlements H There is also a peripheral ring road connecting mall and industrial park but unlike US because there is not enough money to update infrastructure don t get the same upper income edge cities But these models are just generalized because there is a strong disregard for what little zoning regulation existed 5 What additional features are included in Crowley s model What is the Maquiladora Zone Crowley s Model 9 He includes zones for informal sector the existence of dispersed retail serving people without cars grocery furniture clothing housewares restaurants strip malls along highways dispersed small factories throughout the city low income throughout Maquiladora Zone Model using low cost Mexican labor and no import duties to build exports for US markets 9 Core hugs the border including a small tourist districts commercials strips radiate out from CBD domestic industry near periphery maquiladoras near border housing gets worse further out in general although there are elitemiddle class suburbs following the commercial spine 6 What is happening to some Latin American megacities like Sao Paulo and DF Why What is Cuernavaca Porto Alegre Some of the megacities in the region especially Sao Paulo and Mexico DF are seeing nearby smaller cities get a lot of the new investment 9 In Sao Paulo new investment is within a polygon of smaller cities including Belo Horizonte Porto Alegre and Sao Jose dos Campos These have been where Brazil gets high tech development they are called growth poles 9 In Cuernavaca is probably the clearest example although mostly still for commuters Why 9 Agglomeration diseconomies crime prices traf c in the megacity and increasing agglomeration economies in emerging economic sectors in the growth poles However these only happened because Sao Paulo already had so much investment and the seeds of these industries 9 Government spending in the growth poles to provide infrastructure and scal incentives 7 Is Africa a country or a continent Is it diverse Why is it different from Latin America Africa continent diverse place with diverse histories so one model hardly ts all 9 For example there are 2000 languages spoken and some 40 languages with more than 1 million speakers 9 Latin America on the other hand had primarily two colonizers who completely remade the landscape after most of the original population had died of disease Most people speak a pair of languages Still book points to six types of cities 8 Describe the six types of African cities Indigenous city Administrative centers for various empires but also craft and trade functions Examples Ibadan Yoruba SW Nigeria Addis Abeba 9 Islamic City Founded by Arab Muslims or African Muslims important religious sites and trade centers had the typical main square with the mosque school baths and a suq market radiating out from the square Kano Northern Nigeria DaresSalaam Merca Somalia 9 Colonial Administrative City Founded in late 19thearly 20th century for colonial administration and trade were ports with rail lines into the interior and extreme residential segregation Dakar and Freetown Senegal 9 European City Designed to be settled by large numbers of Euros and serve as urban service centers and commercial centers for Euros in the surrounding rural areas Used European planning norms Europeans were considered the permanent residents and Africans only temporary Nairobi Harare formerly Salisbury Zimbabwe Lusaka Zambia most major cities of South Africa 9 Dual City When a second colonial city grew up near an existing city but both develop separately Kano has two districts Khartoum was built across the Nile from Omdurman 9 Hybrid City Some were old settlements taken over by Euros that took new courses after independence Accra Ghana is an example which interestingly had the rich congregate around the periphery instead of the core opposite most other African cities where the rich don t commute 9 What two enclaves do most African cities now have Why Most African cities have two enclave areas poor marginalized population and a small elite an unusually large percentage by world standards of whom are expatriates Why The formal sector is the smallest of any world region although Southern Africa compares more favorably so there is a big disconnect between the poor and rich with the result being a small middle class most of whom are tied to government administration 9 Also along with North AfricaSW Asian cities African cities have comparatively little formal sector industry although a fair amount of informal craft shop and small industry Local clothing food processing cement are common items Lots of countries have one primate city that gets an overwhelming percentage of the rural to urban migrants Very hard for infrastructure to keep up 10 In South Africa what districts existed even before apartheid What did Apartheid change How were neighborhoods separated What is a homeland How were townships treated Has apartheid ended segregation Is South Africa economically stronger than other African states Districts before Apartheid White CBD 0 Secondary Indian or Chinese CBD White owned industrial districts with multiracial employees as sectors along transport lines from core White residential core itself segregated by class though all had at least basic amenities 0 IndianChinese VIixed Ancestry Coloured near the CBD in older districts 0 African barracks in the industrial zone Apartheid changed made this informal practice of segregation a strict rule the 1950 Groups Act made segregation of the four groups mandatory Whites Asians Coloureds and Blacks 9 These neighborhoods were physically separated by Green Belts roadways railways industrial strips or even vacant land Homeland state or area set aside to be a state for a people of a particular national cultural or racial origin 10 homelands Bantustans which covered only 14 of the country and the most barren 14 were given to the 70 of the population that was African 9 The Pass Laws allowed African males to come to the city for one year to work but then forced them to return to their homeland to await their new pass The segregation of society was total included not just cities but the countryside and even individual buildings The African townships nearest the cities grew most rapidly Soweto near JoBurg and were not invested in at all by the white government Even after Apartheid ended the segregation remains largely in place with whites in elite neighborhoods and poor Africans in squatter settlements 9 However South Africa has the most diverse and strongest economy in all of Africa 11 In North AfricaSW Asia did colonialism impact the urban system strongly Why or why not Here European colonialism had the smallest impact on the urban system although they still changed internal urban form 9 Cities were already well established for centuries AND they are a limited number of environmentally proper sites for dense human settlement all of which were occupied Most cities in this region as well as many in Africa Central Asia and Southeast Asia and Moorish Spain are heavily in uenced by Islam 12 What does the Quran emphasize in terms of living in community What types of design features did cities in the region feature What is a Jami Medina Kasbah Suq 3azaar How was the suqbazaar organized 9 The Quran does not give speci c zoning codes it does emphasize that living in community should emphasize family privacy communal wellbeing and on interiors vs exteriors not to mention the hot climate in which these cities developed Design features Thus for privacy culdesacs to cut traf c doors on small streets not across from each other angled entrances narrow windows above eye level outdoor space within courtyards For climate narrow angled streets provide shade as do lattice work on windows and courtyards Jami Heart of the city is the Friday Mosque Jami fronted by a central plaza 9 The old city medina is surrounded by a wall with gates somewhere within it is the Kasbah which is citadel fortress that also contained the palace Running from the central plaza out to the wall was a covered market called a suq or bazaar 9 The closest to the center the cleanermore prestigious the business calligraphybooks perfume jewelry prayer mats dirtier more common items butchers grain sellers potspans sellers nearer the wall Each item has its own alley cluster of shops within the bazaar 13 What is a quarter and how could they be organized Were SW AsiaNorth Africa cities diverse Residential areas in old city were by quarter ahya which had gates of their own 9 Could be based on occupation on ethnicityreligion on villagetribalregional origin 9 These cities were amongst the most diverse cities in the world where most groups were allowed to follow their own religiousfamily customs 14 What was built in these cities in the colonial era Postcolonial era What is happening to agricultural land What are new cities for In the colonial era late 19th century to early 20th new districts were built in European style sans the mosque and bazaar with government buildings hotels department stores and wide streets In the postcolonial era colonial city gets surrounded by highrise commercial and apartment residential with international hotels universities 9 And beyond this the inevitable squatter settlement although many of the walled cities still receive large numbers of rural to urban migrants As the major cities get larger they are eating up small agricultural villages as they expand 9 Egypt and Saudi Arabia have also tried building entirely new cities to try relieving crowding in the older cities 15 Describe the four transects that make up Zeigler s model Zeigler also framed a similar set of issues around transects or slices of the city as it changes from core to periphery 9 Social transects old city has been abandoned by the wealthy for the postcolonial and even suburban districts and even tourists stay in hotels outside of it 9 Housing transect old city was two story courtyard homes multistory apartment blocks now dominate 9 Commercial transect old city has fully functional suqs and family owned small industry and craft production wealthy parts of postcolonial district has all the international brands 9 Transport the old city is for donkeys and taxis the postcolonial city is for automobiles with roads gas stations and parking spaces all areas have horrible traffic 16 Why are Gulf cities different from other cities in the region Describe their urban form The Gulf cities are very different from the other cities in the region because they are newer settlements that were not significant until the 1960 s and 1970 s 9 They have a small core with a fort and port some old elite houses 9 Radiating out are various areas of apartment blocks usually for the middle class or working class expatriates from South Asia SE Asia the rest of the middle East and Europe commercial towers eventually becoming villa suburbs for locals Europeans and elite South Asians with shopping malls and golf courses These cities have lots of greenery which comes from hugely expensive desalinized water 17 What are Dutt s two types of South Asian cities What typi es each pay special attention to native town maidan civil lines Dutt notes two types colonialbased and bazaarbased 1 colonialbased Port facility is the center for both trade and military also processed raw materials to ready them for export Walled fortmilitary outpost Western style CBD with government commercial entertainment and retail buildings Native town beyond the fort was unplanned and inadequately serviced for those who worked for admin and fort European town on opposite side of city from native town with low density bungalows apartment houses planned boulevards urban servicesamenities Maidan which was a big open space between European town and port used for military parades and cricket 2 Bazaar based These were the cities in the South Asian urban system before colonialism 9 Retail concentration at the major crossroads called the chowk where wealthy and merchants lived 9 Bazaar is dominated by necessities of food clothing and shelter especially food and clothing Lots of sidewalk merchants Overtime the bazaar divided into areas of specialization like tailors jewelers bakers and fruitvegetable sellers which people visited everyday when they did not have refrigeration 9 A ring of wealthy residences around the inner core 9 Beyond that the ring of poor without service provision 9 Beyond the poor the colonizers and now the middle class and some elites were in the civil lines where the police courts hospital etc were 18 Were there planned cities in India What are the three Indian megacities What are the Indian technopoles Why did they develop and what located there Is it all foreign companies There have also been planned towns in India Since independence all these cities have hybridized with international elements and the megacities of India Mumbai Delhi Kolkata are beginning to form extended metropolitan regions as their heart areas experience agglomeration diseconomies 9 The biggest change to India s urban system since independence is the emergence of South Indian technopole of Bangalore along with Hyderabad and Chennai Taking advantage of the good Indian university system and the prevalence of English as a second language call centers back office centers routine computer coding financial and legal consulting and medical analysis has located here in the phenomenon of offshoring 9 At first it was branches of foreign companies but now there are many strong Indian firms like Infosys 19 What about the level of global connection for South Asian cities Are they elite and middle class pockets in all of them What do they do 9 Most of the other cities in India and all those in Pakistan Bangladesh and Sri Lanka remain much more peripherally connected to the global economy There are elite pockets in all of them and middle class people connected to the government and domestic economy but just a fraction of the external links the Indian megacities and techno poles have Urban Form and Land Use in LDCs Part Two 1 What are the two historical types of Southeast Asian cities What were some big European gateway cities in the region Were they ports Two historical types Sacred City and Trading City 9 Sacred cities were places of spiritual authority for inland agricultural areas eg Angkor Wat They were located and laid out by cosmologists but their success was tied to the conquests of their rulers 9 Trading cities were on rivers or coast part of a trade network extended to both South and East Asia with walled interiors where trade was done and elite lived Europeans upended the precolonial order through the establishment of their portgateway cities usually on the site of a much smaller settlement like Batavia now Jakarta Saigon now Ho Chi Minh City and Singapore 2 Why are Southeast Asian cities so complex What are the typical zones and is there a traditional CBD Southeast Asia is a true crossroads region with strong local cultures but South Asian and East Asian in uence 9 Thus its cities even its colonial cities are extraordinarily complex Zones 9 Port Zone The heart of the colonial era city 9 NO CBD with all functions combined but instead a group of interconnected zones divided by function and ethnicity A government zone Western commercial zone with foreign banks department stores and of ce towers Colonial elite residential near the government zone 9 Middensity kampungs urban villages some for different ethnicities or regional backgrounds are slowly transforming to middle class as they receive more services 3 What is market gardening Where and why does it locate What is another name for it Market gardening zones historically occurred around most cities world wide it is an area of farms that specialize in fruits and vegetables which perish quickly especially without refrigeration 9 These tend to bring higher prices per unit of land area than grain which is produced in a belt further out from the city Also called truck farming 4 What is the importance of the Chinese commercial zone in Indonesian cities Who funded the international commercial zone What is a gated community What is a kampung Preservation 9 Chinese commercial zone straddles the old colonial district and newer mixed commercial zone has both two story specialist shops and newer shopping plazas 0 These districts connect Indonesia to Chinese manufactures 9 Mixed commercial zone ethnically mixed with many international brands as well as traditional markets 9 International commercial zone this where the highrises upscale malls and hotels are largely funded by Japanese investors 9 Elite residential near government zone and along the highways in the form of the gated community This is becoming increasingly common all over the world but especially in Middle East and South Asia 9 Kampungsvillage Oldest ones closest to port are overly dense mid city ones are becoming middle class thanks to kampung improvement schemes rural ones are self contained squatter kampungs in pollution or industrial zone 5 What is Jabotabek What is a desakota and what typi es it 9 Emerging megacity regions like Jabotabek Jakarta surrounding cities with large suburbanrural fringes within commuting distance of the various downtowns 9 Mixed among these are desakotas something between a village and a town the following features Large small farmer population Increasing nonfarm activity including suburban residential cottage industries and industrial estates which employ large numbers of female laborers Lots of movement around the area by motorbike bus and truck 6 What were some differences between communist and capitalist East Asian cities in the Post WWII era In the initial Post WWII era differences emerged between cities in the communist countries China North Korea Mongolia and capitalist system in South Korea Taiwan Hong Kong and Macao 9 Capitalist cities were defined by private land ownership more social stratification and earlier mass adoption of the automobile 9 Communist cities were defined by the elimination of retail at the core replaced by political cultural admin functions standardized housing and the idea of the selfcontained neighborhood concept to go along with the general policy of local and national selfsufficiency 7 How and why were traditional East Asian cities laid out How was commerce viewed in East Asia before the mid1800 s What changed after communist revolutions What is the importance of the mass square 9 Traditional cosmologically designed East Asian cities would have a square shape with a series of walls and moats 9 Three gates in each wall resulting in three major streets that ran north south and 3 more running east west through the old city Before the mid1800 s in East Asia being involved in trade or commerce was not seen as prestige profession in fact in Japan traders were basically considered outcasts until the late 19th century After revolutions more broad streets added to the core everything renamed after revolutionary heroesevents 9 The new street grid created walled selfcontained neighborhood units which were subdivided into residential off1ce service and other functions Most buildings were boxlike 9 A mass square for political gatherings was made at the city center along with party HQ revolutionary museums and entertainment complexes 8 What four cities in East Asia did colonial rule have the biggest impact What economic activity is Macao known for What was the concession systemOpen door policy What urban form typified this era Biggest impact Shanghai and Tianjin Hong Kong and Macao which were under British and Portuguese rule 9 Chinese port cities were rst opened up to the British after the 1842 Treaty of Nanjing by 1911 some 90 coastal and river ports as well cities in Manchuria had been opened to Europeans by the Open Door policy Under the concession system cities changed structure 9 A concession zone with docks and military bases along coastriver eventually got warehousing factories of ces and elite Western residential After the revolution this area goes for party of ces and housing party bosses workers go into highrises at the periphery 9 Chinese residential zone which was the old city designed on old cosmologic principles 9 Buffer zone between the two which became the location for the Chinese elite who had businesses worked for government or for the foreign corporations 9 What changes in Chinese urban form after the late 1970 s Are supertall buildings common in East Asia Once market reform begins in China in the late1970 s its urban form begins to quickly converge with the capitalist countries of East Asia with the following features Ring roads to channel increased autotruck traf c around cities Satellite towns near larger cities Renovationcomplete remake of central city commercial and residential districts Preservation districts for a memory of percolonial past Super tall buildings common Some of world s largest buildings are in East Southeast Asia including Petronas Towers KL Taipei 101 World Financial Center Shanghai all of which will be dwarfed by Burj Khalifa 10 What is China s largest metropolitan area Was it manufacturing before independence What did the communists do to it What is the name of the new post1980 zone What did the special economic zones offer What types of businesses are now there Is it a city of uniform incomes What are some of its problems Shanghai is China s largest with 17 million in the metro area 9 Even before independence it was one of the world s leading manufacturing centers and busiest port in Asia 9 The communists taxed industrial activities in Shanghai to the tune of 75 in order to fund the rest of the government initiatives Almost nothings was reinvested the city became rundown 9 But in 1980 the new leadership wanted to unleash economic development so they created the Shanghai Economic Zone and the Pudong New Area the latter from a patch of low density farm land to the East of the city These development zones offered tax breaks and infrastructure to attract investment new bridges and ring roads were built along with subway sewers and a second international airport 9 Shanghai is a city of extreme wealth and extreme poverty but is also a World City Other problems include the large role played by FBI and the lack of technology transfer rising wages for factory workers which is pushing investment elsewhere long commute times and two nancial districts competing for foreign banks by offering sweet packages of goodies to outdo each other 11 What body of water is Hong Kong on What are some other cities sharing this location What economic sectors does Hong Kong have What is one country two systems policy What is front shop and back shop What does being an Open Economic area allow Will there be more growth Pearl River Delta which Hong Kong sits at the edge of is one of fastest growing urban areas of world 9 Also includes Macao and Guangzhou Hong Kong has world class financial industry manufacturing and trading firms plus the world s busiest port 9 Hong Kong was under the British until 1997 from l980onward Chinese government began pouring investment in Guangzhou preparing Hong Kong still holds elections under the one country two systems policy 9 China located two of its key export processing zones aka Special Economic Zones Shenzhen and Zhuhai in the Pearl River Delta Now Hong Kong does Front shop work like design marketing purchasing inventory control and Chinese subcontractors in the EPZ s do manufacturing with their low wage work forces 9 Whole delta now a Open Economic Area which allowed farmers to either migrate to factories or diversify their crops from rice to include market gardening livestock and fish farming Means even more growth will happen with more resorts tech parks and industrial parks emerging in formerly small towns Urban Problems in LDC s 1 BIG PICTURE Poverty Housing Services Transportation Environmental Degredation are the problems We talk briefly about some responses 2 What is the root of urban poverty in LDC s Where does that come from What are push factors Pull factors What is the difference between unemployment and underemployment Is underemployment a problem Roots unequal land tenure lack of job opportunities and too many people for too few opportunities 9 These are called push factors which send people out of rural areas 9 Pull factors are those which make the city attractive but those matter little since the rural populations have no other choice barring emigration When rural migrants get to the city they are faced with outright unemployment but also with underemployment which is when you work less than full time but would like to work more 9 In LDC s between 3050 of the employed workforce is considered to be underemployed 3 What have cities tried to attract in order to ght poverty since the 1970 s Why didn t most countries succeed Where did FDI go One major way cities attempted to deal with poverty since the 1970 s was to try to attract Foreign Direct Investment FDI from TNC s 9 But not many countries had cheap labor costs plus a sizable decenth educated workforce quality transport network and reliable services Unfortunately most FDI went into the largest cities increasing problems of primacy and uneven development 4 What is the informal sector What disadvantages do informal sector workers have Is it large or small in LDC s Is it disproportionately female and child Informal Sector 9 This is work that is done outside of government regulation usually by workers as a last resort to get some sort of income 9 Often those working in this sector are disadvantaged by education formal training recognized qualifications and rigid divisions of labor based on gender race and ethnicity 9 It is huge in most of the poorest LDC s it makes up between 13 and 23 of employment The informal workforce is disproportionately female and has a large share of child labor since every family member must contribute 5 How does the formal sector rely on the informal sector What are the four main informal sector activities The formal sector relies on the informal sector both to get around regulations or carry out grev activities but also because a large informal sector reduces cost of living for formal sector employees by providing cheap services that come directly to their door 9 Four main informal sector activities Subsistence activities like clothing child care and repairs that are done primarily done for household maintenance occassionally for extra money Small Scale producers and retailers they are selfemployed and include street traders artisans food vendors and those who do piece work garment assembly Petty capitalists who want to avoid regulations minimum wages and work place safety requirements some of whom subcontract for formal sector businesses Criminalsocially undesirable activities like drug dealing smuggling theft extortion and prostitution 6 What are some factors that have produced an unfavorable position for women in the urban workforce in many LDC s 9 Reproduction links women to domestic work and periodically removes them from the workforce hurting chances for advancement 9 The idea of male breadwinner which in some places is indigenous but in others was introduced by colonialism 9 The prejudice that women are lower skilled 9 Women seen as passive and less likely to unionize 9 The stereotype that women are dexterous and take easily to repetitive tasks 7 What are some options households have in the face of urban poverty 9 Increase resources by adding more household members starting a business growing own food scavenge for food or recyclables or rent out rooms to tenants 9 Limit consumption no more new clothes less meat and prepared food cheaper clothes and food withdraw children from school avoid medical treatment postpone household repairs or improvements reduce social events 9 Change Household consumption Postpone children increase household size with married children migrate 8 What are the three broad types of low cost housing in LDC s Which one is the largest Do government built estates usually have much impact What are the three sub categories of popular housing Why is there so much overcrowding in popular housing What is aided selfhelp 9 Private includes owner occupied rentals and employer provided units which can range from a nice apartment or townhome to barracks or a trailer at the building site This makes up a small 9 Public These can be small just to make the government look like it is doing something or can be mammoth like a large housing estate or a whole new town or something like a hostel which gives new arrivals a place to crash until they nd their footing These can be done purely with government money or through publicprivate partnerships 9 Popular By far the most common category includes slums older areas of the urban fabric that have declined in value squatter settlements land seized sold to people without clear title or government support and street sleepers Governments have increasingly turned to aided selfhelp where they provide some support to help regularize already existing squatter settlements 9 Where are squatter settlements located What is the infrastructure like What are the building materials Sq uatter settlements built on very poor land that is derelict poorly drained on a 9 Usually have open sewers no running water and a lot of wood burning Thus disease runs rampant impacting the young especially asthma diarrhea and getting water becomes very expensive Shacks made from any available material like corrugated iron planks mud thatch tar paper cardboard 9 Different names all over the world like callampas mushrooms in Chile favelas in Brazil gecekindu in Turkey literally built overnight bustees in India villas miserias in Argentina Before the current trend towards accommodation and seeing the usefulnessrationality inevitability of these settlements the primary government squatter policy was bulldozing something recommended by outside policy experts as well 10 What was the major policy for dealing with squatter settlements prior to aided self help What did Seoul do Why does the bulldozing policy usually not work Before the current trend towards accommodation and seeing the usefulnessrationalityinevitability of these settlements the primary government squatter policy was bulldozing something recommended by outside policy experts as well Seoul is famous for the scale of the evictions and bulldozing that hit several hundred thousand individuals in each city Done for various reasons like opening desirable land up for private speculation public works urban renewal major events like the Seoul Olympics which saw a record 750000 evictions and making the city more appealing to tourists 9 Not surprisingly once bulldozed which ruined anything the household had built up the people simply built a new squatter settlement elsewhere in the urban fringe 11 What are the pros and cons of providing title to squatters 9 Pro is that it gives them something to borrow against makes liquid an illiquid asset instantly creating wealth for many within these communities plus gives legal recognition 9 Q is that people can then lose these houses which is often all they have 12 Is the informal sector taxed What does this do to LDC budgets The informal sector besides being unregulated is also untaxed meaning cities do not have money to provide services Water is a huge issue 9 Only 50 of residents of LDC cities are connected to sewers those that do often drain untreated into lakes rivers or oceans sometimes into the very drinking supply the water comes from 13 What are some problems associated with water and sewers in LDC s cities How is solid waste collection Even in places with communal taps the water usually does not run all day and sometimes for as little as 20 minutes leading to huge lines and rationing when it does Many cities only collect 13 of their solid waste the rest is done by informal sector recyclers or waste disposers or just dumped or left to rot 14 What are some current health problems associated with cities Why are cities key transmission sites for HIVAIDS 9 As LDC cities age the current problems of communicable respiratory diseases diarrhea and early childhood conditions will be accompanied by noncommunicable diseases like heart conditions depression and traffic accidents 9 LDC cities also have problems that LDC rural areas face like malnutrition and poor sanitation plus unique problems like stress from overcrowding and noise and workplace hazards 9 Cities are key transmission sites because of high densities prostitution 15 What do LDC cities spend most of their budget on Has it help reduce commute times Does building highways help Have policies to reduce the number of cars on the road worked well Many LDC cities spend almost the entirety of their budgets on transportation but they ultimately fight a losing battle trying to keep up with rapid growth 9 Meanwhile congestion has turned into outright gridlock and since people no longer live where they work the result is people spending 3 to 5 hours a day commuting Building new highways has not helped much because they simply funnel more cars from the outskirts into a downtown which was usually designed for pedestrians or pack animals 9 This has major economic consequences in Bangkok traffic delays cost the country 2 of its GDP There are no easy answer since metros are expensive and regulations meant to decrease car traf c often backfire 16 What are some issues with air pollution in cities What are some facets of the relationship between poor environmental health urban poverty and poor housing conditions 9 Cars especially are not subject to pollution controls like in many US and European cities so lead sulfur oxides petrochemical oxidants and others get into the air along with charcoal wood and kerosene exhaust 0 This leaves 11 billion in cities breathing dangerously unclean air in Bangkok traf c and air pollution related illness costs even more than traf c and 3 of GDP There is a close relationship between poor environmental health urban poverty and poor housing conditions It includes 9 A greater incidence of sickness and death in housing that is crowded poorly built built in unsafe areas near hazards and with inadequate watersewerwaste disposal This includes near industrial eras where major accidents can kill hundreds or thousands as in Bhopal 9 Poor quality housing is often dilapidated semiopen to the elements and reprone 9 Low incomes combined with rising land prices lead to homelessness and overcrowding 9 Insecure land tenure discourages people from making improvements 9 Poorest in society are least able to articulate their environmental concerns and access powerful people who can do something about it 17 What are being looked at as ways to bring about urban sustainability in terms of economy Environment Society Demographic Situation Political Sphere What is the particular importance of making rural areas and smaller cities more attractive for LDC s Economy Find ways to make the city into the a node that links the regional national and global economy while strengthening them all 9 The keys here are the regional and national economy stronger regional economies are needed to begin to get horizontal linkages and larger markets a stronger national economy outside the major city can help stem the ow of rural to urban migration or at least migration to the primate city While nurturing entrepreneurship in the informal sector nd ways to increase formal sector activity so the government can capture revenues to help improve urban services Environment Focusing on key areas like air pollution water quality land degradation and hazardous livingworking conditions Society 9 Some societal needs are citywide and have to be provided by government like schools and hospitals Governments also have the responsibility to make sure rights are protected 9 But also enabling communities with resources to improve their own neighborhoods through public space parks youth centers public toilets showers etc is key as well 0 Demographic Situation 9 Both the initial ruraltourban migration and subsequent babyboom hamper the city government s ability to extend necessary infrastructures Political Sphere 9 The city government needs to establish democratic institutions and an open planning process which takes seriously community feedback especially from the poorest in society 18 In terms of changing urban governance how have decentralization and reform been attempted Participation in planning Why have women been so effective at organizing community groups New Question not on last update Decentralization and government reform This is the trend towards giving more authority to urbanregional governments vs the national government to tackle the problems they face Within the metropolitan area problems are beginning to get their own agencies such strategic planning economic development urban services crimeprevention and environmental degradation Governments can also set aside formal forums for access to underserved and underrepresented groups Bolivia has done so for indigenous minorities India by reserving seats on local councils for women Participation of local communities in planning 9 Increasingly it is recognized relevant models will have to emerge from within LDC communities because local context and knowledge is so important Urban Development Process 1 Big Picture Understand theories of rent and investment amp understand the city makers and the role each plays 2 Do investors weigh investment in the built environment against the universe of other possible investments Investment in the built environment depends on an interplay between private capital and government intervention 9 Must realize that investment in the built environment is weighed against the entire universe of other possible investments so if other options are more lucrative that is where capital will go 3 Explain the relationship between interest rates and housing supply ie high rates w high supply high rates w low supply low rates w low supply and low rates w high supply In a time of high interest rates relative to returns on construction investment there is a disincentive in general for lenders to provide capital for the built environment 9 If housing is abundant this will drive rents down since renters and potential buyers have choice 9 If there is a shortage of housing rents will rise to the point that the potential pro ts will attract speculators willing to accept the high interest rates In a time of low interest rates relative to returns on construction investment capital will be readily available 9 If there is a shortage a boom will continue until inevitable overbuilding kills pro t and vacancy rates go up especially among older housing stock 9 But oddly if the interest rates are low compared to returns on built environment even if there is no shortage there can still be a speculative boom which has the potential to drive up all housing costs even for existing units as happened during the recent housing bubble and may be happening again where international investors are active 4 What does it mean that submarkets vary by degree of capital investment What is a rent gap Why is this uneven development important Can a large development set the tone of future building near it Also varying within the city is degree of capital investment how much moneytimeexpertise is sunk into site quality 9 If a new large wellcapitalized development dominates a submarket it will set the tenure of growth around it leaving few options This difference between what a site captures as is vs what it could capture if redevelopment happened eg turn an old waterfront into a festival marketplace is called a rent gap This uneven development with many niche markets is important because it drives constant investment as money goes to chase lower costs and bigger returns 5 What is ground rent and why is it of limited use Then hat are absohrte rent 1 l i l 2 6 What are the four types of investment in land and property outlined by the text and what typifies each Types 9 Bazaar These owners happen to get a hold of a property and any gains in rent or sale price are incidental to their original motives They use the land personally or to improve their status This leads like a bazaar to a diverse complex mix of urban land uses 9 Organism When a planner makes a long term plan for land Paid for with public revenues to improve the underlying socioeconomic condition 9 Jungle When a owner looks to collect annual rent occurs especially when land is taken out of primary production and offered for the built environment 9 Circus These are speculators using a money gathered and borrowed from differ 7 Why is the circus type increasingly important How did it get to be so Circus type of property holding is increasingly important and that land is being seen as a liquid nancial asset and less as something with special prestige or sociallyredemptive value This situation developed bc of 9 Globalization creating more extralocally accessible property markets thus increasing competition for prime locations and greatly separating them from the mass of other available locations 9 Rapid reorganization of land use 9 Better advertisingmarketing which attracts a wider number of potential investors 9 Loosening of planning controls 9 Involvement of nontraditional investors like TNC s hedge funds etc with new real estate investment professionals 9 The deregulation of nancial market 8 Who starts the process of city making What are the three types What in uence do they have on the process Landowners They start the process and come in three varieties 9 Landed estates aka old money more than others they value social and historical ties amp are willing to take a very long term view Speculators Want to buy land a low price just before it skyrockets and sell as close to peak as possible Developers They decide on the nature of new projects plat large parcels into smaller ones install infrastructure and sell lots to builders literally the act of subdivision 9 Many now also do construction marketing land speculation etc 9 Thus because they decide probably the single most important group of city makers 9 What are speculators in this context What are the three types Erendipitous entrepreneur who happens to control land for some other purpose and then discovers it speculative value 9 Active entrepreneur who is a small or medium investor individually trying to play the market using local information networks to profit from the moves of big players 9 Structural speculator the big players who do not just try to anticipate the market but change it through lobbying and their large projects 10 What are developers Do they only do development What are the preliminary development activities Why is so much development so similar to other development Are there more market segments now What are considerations taken into account when selecting a site What type of site makes good low cost housing What type for luxury What are industrial and commercial developers concerned with What is land banking Bird dogging Developers They decide on the nature of new projects plat large parcels into smaller ones install infrastructure and sell lots to builders literally the act of subdivision Preliminary development activities include site selection and project conceptualization which is followed by a feasibility audit to make sure it is worth it To reduce risk 95 of the building done is what is easy safe bet to get a return on investment 9 Thus very little innovative actually happens since that is harder to convince nanciers to fund or buyers to purchase In the 1960 s and 1970 s only one market segment was built for a nuclear family who was to live in a three bedroom house But now since most households are something other than a nuclear family divorced single retired no kids then get several standardized categories like condos townhomes lofts etc Sites are considered based on acreage cost location size access to infrastructure special building requirements and reactions of potential neighbors to the new project 9 Industrial and commercial developers are usually more concerned about amount of available land and location than cost which they can recoup 9 A lot of larger development firms engage in land banking where they buy land and use it minimally perhaps as a parking lot with the intent to develop later when conditions are more favorable The largest companies will also seek out land and buy it before it comes on market which is known as bird dogging 11 Do developers finance their own projects Who else is evolved in design besides architects When do developers turn a pro t Financing must be secured first it is the rare developer nowadays who finances their own projects beyond a small amount of equity which is usually leveraged heavily with loans from banks or other financial institutions who have the right to alter designs Marketing involves pro ling the customer base through research but also promoting the development well before it is completed or even before construction has started Design involves not just architects but also structural engineers landscapers and environmental impact designers construction is actually executing the project Often a profit is not turned until the facilities management stage which involves upkeep and filling the development with tenantsowners 12 Are developers specialized How Developers are often specialized into one type of development eg mall condo gated community commercial park etc and into a small number or just one metro areas 13 Who does the work for builders How do builders make a profit Sometimes the developers themselves will built but they almost always subcontract out to general building contractors In smaller markets builders may speculate on land and develop it as well 9 Builders in turn hire subcontractors to do specific jobs wiring roof1ng plumbing drywall driveway etc Builders make their money by purchasing materials in bulk finding eff1cient subcontractors retaining a team of specialists in accounting marketing purchasing site management that adds more value than they are paid even if paid well getting federal subsidies 14 What is the role of consumers Are consumers in real estate just home buyers Do most people get to build whatever they want Why or why not Consumers 9 These include households for residential commercial for retail wholesale office servicerepair warehouse and industrial manufacturers 9 Within metropolitan areas for all but the bestfunded consumers they have to choose from existingplanned structures provided to them by developersbuilders planners Hard to nd new small pieces of land most farms that sell land do so in large chunks and even if a parcel is found zoning is a limit though variances can be granted Can go the route of buy structure land then tear down the structure and replace with a new structure but that adds a lot of cost 9 So even though a comparative few make the decision for what the built environment entails in terms of building type citizens groups as well as lobbyists representing businesses can apply pressure and bring about change 15 Who are the key gatekeepers of neighborhoods Why 9 Real gatekeepers of neighborhoods are realtors and f1nancers since they ultimately fill the structures with tenants owners 9 Real gatekeepers of neighborhoods are realtors and f1nancers since they ultimately fill the structures with tenants owners 16 What type of projects are local governments most likely to carry out since the 1980 s have they always worked well What do local governments control Since the 1980 s most major US local government developments have been publicprivate partnerships meant to create a agship retailentertainmentconference space using public resources and legal powers to aid private developers 9 Not always worked well Local governments sometimes control utility services but always zoning building codes tax rates and abatements and along with the chamber of commerce promotion of the city 9 Where as they would own public housing in the past they have moved to publicprivate partnerships in this arena as well to provide lowincome housing 17 Is the US federal government heavily involved in real estate compared to other countries What impact does the federal government have State governments 9 Unlike in almost all other countries the federal and state government takes a much more limited role 9 The federal government though can make macro decisions like allowing the mortgage interest taX credit which encourages home ownership and building highways 9 States can impose building codes much of Florida has one regulate property insurers set property taxes 18 Have big developers become more important Who are the big players in Malls and which of them owns Dadeland and Aventura The role of large developers has increased greatly since the 1980 s 9 Shopping malls and department stores are a prime example we already mentioned the role of FederatedMacy s department stores In shopping malls the big players include Westfield Group an Australian Firm General Growth Properties recently eld largest real estate bankruptcy in the US having taken on a lot of debt acquiring companies like Rouse and Simon Property Group owns Aventura and Dadeland along with dozens of others 19 Explain the factors leading to the housing bubble including subprime mortages and CDO s and what eventually led to the bubble popping As housing prices globally began to grow much more rapidly than incomes both people 1 seeking to buy homes and 2 speculating to make quick pro ts from ipping had to take out larger loans 9 Since people s incomes didn t increase magically that means they had to take out larger loans than they could afford 9 Because this debt is risky ie subprime borrowers would charge higher rates Due to nancial innovation some loans were offered with low rates that would reset to higher rates later to make it people able to afford the loans for a short period of time 9 However even people with good loans overpaid due to the bubble atmosphere as well as people who re nanced based on high prices They took the loans and instead of keeping them sold them to be bundled 9 The bundler would then take a group of loans and sell Collateralized Debt ObligationsCDO s which are divided into various riskreward levels based on the income stream from the pile of loans 9 Credit rating agencies were laxnegligent in correctly labeling the risk in these even the low risk levels were actually junk In 2007 the bad home loans made to individuals began to be defaulted on because they could not really afford the loans which means the revenue streams didn t exist which means the CDO s were junk 9 The bank owned houses in foreclosure lead to oversupply which was added to by builders who sold primarily to investors which depresses prices of all homes making even more people owe more than what their homes are worth making even once good bank assets worthless 9 There was an almost complete halt in real estate spending and construction putting more people out of work meaning they do not spend money or pay tax which puts more people out of work Many many people who refinanced or bought since 2005 are underwater owing more than their home is worth Neighborhood Change 1 Big Picture Understand Neighborhood Lifecycles Private Ownership and Public Housing Why and How Households Move and Gentri cation 2 What is a depreciation curve What is obsolescence How does the composition of neighborhood s population change over time The desirability of housing stock is a major factor in neighborhood change 9 All buildings or long term purchases for that matter have a depreciation curve in that they have a limited life span over which they deteriorate barring reinvestment and repair Approximately 60 years would be an average building s life expectancy though that varies depending on initial build quality and how much regular maintenance is done 9 Another factor is obsolescence where in a building is built for an era that no longer exists For example houses built in 1910 lack off street parking garages bathroom early suburban stand alone mansions with maid quarters and bedrooms for 5 children do not suit many current family s needs Also the composition of the neighborhood s population is a factor 9 There is the initial colonizing group which tends to be quite homogenous but over time most of those people leave as major life changes take place leaving a few long term residents and new residents usually a step or two down the socioeconomic ladder The process is called filtering As more time passes it is more likely there will be bigger gaps between the initial residents and the new cohorts in terms of income and cultural attributes 3 What types of investments reach a neighborhood over their lifetime Which investments can change a neighborhood s market position Why is there deliberate disinvestment sometimes Redevelopment and Reinvestment Most neighborhoods attract a certain amount of investment in terms of improvements decks pools garages additions new roofs etc over their lifetime 9 Some places also are sites of deliberate disinvestment where repairs are put off and much property is either for sale or abandoned But it is not just places of disinvestment which are ripe for redevelopment for example a stable but lowincome neighborhood could be targeted for demolition if a shopping mall or condo development would prove to be more lucrative 9 But it is not always so extreme sometimes small changes and investments like conversions from rentals to condos or warehouses to residential lofts can change a neighborhood s market position greatly 4 Explain the 5 stages of the neighborhood lifecycle What type of neighborhoods are unlikely to be redeveloped Which ones are prime targets for gentri cation 5 stages Subumization Low density single family homes occupied by relatively welloff families In lling Multifamily and rentals are added on vacant lots adding new socioeconomic groups to the mix Downgrading The longest phase as housing stock ages and turnover begins to increase Thinning Out Very rapid turnover typi ed by lowincome rentals Some demolition and conversion of older units The beginning of the end Renewal or RehabilitationGentri cation Since by now the city has grown a lot the neighborhood is probably centrally located so some sort of new higher density structures are put in place or the houses themselves get rehabilitated by a wealthier class than those currently living there Neighborhood Lifecycles cont This lifecycle leads to several neighborhood types 9 Sometimes neighborhoods especially pre WWII or immediately post WWII low and middle income neighborhoods don t redevelop at all and just remained scared shells see Detroit Gary and Youngstown which have lost signi cant population bc of de industrialization Though sometimes this is where public housing can step in and get the remaining people into better places than they currently have Higherquality built neighborhoods suffer uneven fates 9 The large homes of merchants and industrialists pre1920 have almost always been subdivided to get past their obsolesce Depending on location this can either be a neighborhood for young or recently retired hipsters or poor renters 9 Well built medium and small homes usually with nice touches or some architectural distinction are often on of the prime targets for gentri cation as the scale of the restoration is not so large that either people can tackle it themselves or pay a contractor to do it 5 What is happening to inner ring suburbs What are the problems with recent exurbs Neighborhood Lifecycle cont The Post1960 suburbs still contain a few of the initial colonizing residents and the oldest one s are just now reaching the thinning out phase as some units are lost to road or commercial improvements 9 What will happen to these innerring suburbs is still very much up in the air some are struggling as they get disinvested others are seeing renewalredevelopment as people are becoming more interested in living close to cities but with suburban amenities like yards At the exurban fringe are the most recent developments just entering the cycle 9 However there has been a widely acknowledged general decline in build quality since the 1990 s and a lot of newer housing stock seemed to deteriorate in value rapidly during this last crisis since it is both a maintenance bomb waiting to happen AND has a horri c location 6 What are some use values and exchange values housing fulfills in US society Housing Markets Housing ful lls many functions in our society 9 Use values which are valued differently by different households Providing shelter and privacy Satisfaction and status having to do with house s size design and location Creating environmental quality both the physical environment in terms of trees gardens etc AND the social environment in terms of neighborliness Providing accessibility to work education shopping recreation social networks 9 Exchange value its worth in the market place Equity which is the gap between the market price and what is owed on the mortgage 9 In the US up to 250000 of this or 500000 for a married couple is tax free upon the sale of the home provided it is your main home and you have lived in it for two years Thus real estate is a major source of potential wealth for people in times of economic upturn 7 Why has there been a rise in home ownership following WWII What does it have to do with af uence Social benefits Economic and political benefits The Rise of Homeownership In earlier eras home ownership was relatively uncommon In the mercantile era many employees lived in the home of their owners Most of the rest rented accommodation from merchants or rural landowners who had built housing for such a purpose In turn most of these renters would take on a border to make sure they had some steady income In the industrial era factory owners began by providing housing to attract people from the countryside a mixed blessing for the tenants in that they actually had a place to live but they were completely dependent on their bosses for everything But over time their were too many immigrants and a lot of job switching so a generalized housing market unconnected from work emerged The turning point for owneroccupiers was the street car suburbs built speci cally for those types of individuals It has been rapidly uphill in the US since then until the 70 number was reached which is about the ceiling Rise of Homeownership cont Reasons why increasing home ownership Increasing af uence of a wider section of society following WWII combined with economies of scale achieved by housing developers to keep costs down Increasing bene ts including The social status that comes with home ownership and being part of the American Dream which is centered on having your own piece of property Achieving residential segregation Building equity to move up the nancial ladder 0 Performing a family lifestyle Rise of Homeownership cont Increasing economic and political bene t of homeownership Banks like it because the down payment provides capital to reinvest the interest provides a revenue stream and it leads to all sorts of other purchase like furniture and home improvements Under Keynesianism stimulating home construction could help grow the economy To this end the government insures mortgages to help get more written and allows people to deduct mortgage interest from their income pretaX People with mortgages are interested in social and political stability so their investment does not decrease 8 Why has there been a decline in rental profitability Decline in rental profitability More codes got rid of the shoddiest units Renter s low income means it is hard to raise rents Rent control legislation The deteriorating quality of rental stock Decrease in demand because of rising home ownership Taxation policies which make improving rentals unattractive 9 How long has housing affordability been an issue for cities Why Why the particular bad crises in affordability in the 1980 s and early 2000 s What are subprime lending and exotic mortgages Housing Affordability Finding decent housing at a decent price has been a major issue for city dwellers since the industrial revolution This is because unlike in rural areas land is a more finite commodity In recent decades the early 1980 s and the mid 2000 s had the biggest crises of affordability This again was a combination of rising commodity prices more households high interest rates and slow economic growth During this era homeowners were spending 36 of income on home ownership delaying other types of consumption including having children in order to be house poor The idea was that prices would continue to rise and big sums of money could be made soon By the end of the 1980 s the end of in ation plus a wave of foreclosures saw prices dip With low interest rates and lower prices home ownership was only taking 20 of income in the 1990 s Housing Affordability cont Until the current recession the exchange value of real estate began to surpass all of its other uses driving home prices up to the point where only the richest 20 of the population could afford the median home in some markets like Miami and almost all of California Here in Miami some households were spending 50 of their income on homeownership Since the 1990 s there has been tremendous growth in sub prime lending lending to people with weak or bad credit histories and exotic mortgages usually with teaser rates or interest only options It did broaden home ownership but came with higher rates and fees that left many upside down when home prices dipped below the value of their mortgages Turns out a large chunk of the subprime mortgages were purposefully given to people who could have got better rates because sales people received higher commissions for them For the poorest the rental market takes a big chunk of their income while providing sub standard housing especially since there is comparatively little public housing in the US 10 Does the US have as much public housing as other rich countries Why or why not What is Section 8 and what are the two ways of administering it Public Housing Most other wealthy countries have 1020 of units in public housing US has only 15 most of which involve Section 8 vouchers issued by HUD Essentially Section 8 is where the government pays the difference between 30 of a household s income and the fair market rent Two methods of administration project based a whole private building or development where section 8 designated households can move in either renovated or newly constructed or voucher based where the tenant is given a voucher and finds a private landlord who accepts them Section 8 housing is annually inspected for quality if a tenant damages the property they get booted from the Section 8 rolls During the depression there was a push to build public housing and by some estimates nearly 13 of central city families still need help but the following factors have prevented it here An especially strong free enterprise ethic Racial bias since the perception is that minorities would bene t most even though white nonHispanics make up the majority of Section 8 recipients Wellfunded opposition from builders banks and the US Chamber of Commerce The extremely severe cost limits put on public housing which guaranteed it would be crappy for example units did not come with toilet seats to save money It was also strictly means tested so that if you started doing better economically you were booted out This meant no one cared about the long term maintenance and only the poorest of the poor were put there This meant that it was always going to fail That being said in most places public housing is far from lovely and often suffers from obsolescence 11 Describe the six restrictions that help shapeprice housing markets All cities have submarkets Six constraints that help shapeprice urban housing submarkets 9 Supply restrictions some types of housing such as historical housing or lowcost downtown housing cannot be reproduced 9 Accessibility restrictions some houses have a unique location either positive walking distance to shopping or negative superfund site 9 Neighborhood restrictions Small areas become can become attractive or superunattractive and result in premiums or discounts on rents 9 Institutional restrictions Including redlz39ning districts where mortgage brokers won t originate loans and zoning 9 Racial ethnic and class discrimination This keeps certain people out of certain areas 9 Information restrictions Different households have different information on the housing market and opportunities within it 12 What is the most common type of accommodation in urban Europe What was public housing like in Europe immediately Post WWII Later on Was there much 19th century annexation in Europe Public Housing cont 9 Overtime went for more prefab apartments of lower quality especially in East Europe and more tower blockshousing estates grands ensembles out in the suburbs These declined in attractiveness quickly even more so once maintenance problems became apparent 9 Starting in the 1970 s new supply began to dry up in 1980 s much of it sold to long term residents as in UK or given to community groups There is more neighborhood stability in Europe as people move far less and the rich never left the central cities in great numbers 9 In fact high urban taxes kept most of the poor towards the periphery in many cities The largest cities annexed many smaller towns near them during the course of the 19th century which have formed the core of shopping districtsdistinct neighborhoods 9 London is the perfect example of this with its patchwork of neighborhood High Streets shopping streets 13 Do Americans or Europeans move more frequently Who tends to move and who tends to stay put What type of move is more common intraurban or inter urban There is more neighborhood stability in Europe as people move far less and the rich never left the central cities in great numbers In fact high urban taxes kept most of the poor towards the periphery in many cities The largest cities annexed many smaller towns near them during the course of the 19th century which have formed the core of shopping districtsdistinct neighborhoods London is the perfect example of this with its patchwork of neighborhood High Streets shopping streets Residential Mobility In any given year one out of every 12 households in US metropolitan areas move Renters more likely to move than owners central city more likely to move than suburbs Some people middle age and youngold working to middle class suburbanites tend to be stayers the young and both the very rich and very poor tend to be movers 23 of moves are intrametropolitan within the same metro area 13 are inter metropolitan rural to urban in migrants and direct immigration Rural to urban used to be more prominent in US and Europe Low income inmigrants and immigrants go to central cities as well as 1St or 2nd ring suburbs Middle and upper income people who come in tend to come with a new job and little time to search for a house try to pick homes with decent resale value in case they move again and tend to locate in newly built areas on the fringe for the first few years where everyone else in the neighborhood is new until they get a sense of the city 14 What are some characteristics of intraurban moves Why do people make forced and induced moves Why do they make voluntary moves According to Brown does everyone who is dissatisfied with their neighborhood move What do they do instead Residential Mobility cont lntraurban moves A decent number is the first move of a recent migrant and caused by family status change but also Most moves are short distance about 16 of city diameter to stay close to social networks especially the schools and friends of children Most moves involve going to a very similar neighborhood with very similar housing Most moves within same sector or quadrant because they know it well and have places they like to shopsocialize They pick up rapidly during better economic times Residential Mobility cont Reasons to move Between 1525 of intraurban mobility are forced moves due to eminent domain demolition eviction home loss A further 15 are induced meaning moving made sense because of lifecycle event especially marriage and divorce job change retirement The rest then are voluntary moves driven push and pull factors Feeling the household lacks sufficient space is the number one cited push factor Other push factors include anticipated high maintenance costs obsolescence and neighborhood change Number one pull factor is change in employment Accessibility to shoppingamenitiesfriends good schools and moving from renting to owning are all pull factors 15 What are awareness space action space and information space Why do the poor have a more limited aware space What type of house do people usually buy Does neighborhood or house quality win out Interior or exterior space 9 Thus people search within their awareness space which is a combination of action space where they move around and information space what they learn about The poor tend to have a much narrower awareness space partly because of lower information consumption partially by lack of private transport When it comes time to move even if they have clear aspirations for what they are looking for most settle for what they consider a good deal since they can only buy houses that are on the market 9 In terms of what wins out neighborhood quality especially school quality wins out over house quality interior space and appearance wins out over exterior design and appearance 16 What is the role of exchange professionals in neighborhood change What is the special role of realtors What is steering Is there still discrimination by realtors What is block busting Housing Market Gatekeepers Exchange professionals determine the direction of neighborhoods after the city builders have brought them into existence Include realtors mortgage brokers insurance agents appraisers and landlords They have the power to direct both people and capital In the past they practiced active segregation now they continue the process of segregation but likely without the same level of intentionality Realtors for example work on commission so want neighborhoods with high prices and high turnover By working for buyers and sellers within the same market illegal in some countries they also have a command view Thus they are reluctant to do anything that would jeopardize a neighborhood s home prices Housing Market Gatekeepers cont In the past and still in some pockets today steering take place where realtors won t show properties in neighborhoods with high value to poorminority buyers Now thanks to paired testing done by HUD where one minority and one white with identical income occupations etc inquiry about housing we know that whites are 1 more likely to be shown homes in whitedominated neighborhoods 2 they are shown the insides of more homes 3 are treated with more enthusiasm and 4 are given more help with obtaining nancing There have been slight declines over time for discrimination faced by African Americans especially among potential home owners but it has not declined for Hispanics who started with less discrimination than African Americans A related horrible practice is block busting where real estates actually try to drive down prices so they can buy themselves to sell high later either to an incoming group or as a unit to a developer seeking a large lot Have included tactics like encouraging minority families to move into white blocks buying houses only to leave them derelict putting up false For Sale signs and paying someone to vandalize nearby properties 17 What type of mortgage did middle class families get Other families 18 What is redlining and what are its consequences Also used to be high risk neighborhoods that would not have loans written in them called redlining Now some neighborhoods more likely to receive crappy loans than others instead of outright denial Gatekeepers cont Redlining can have a series of cascading consequences Starts with making cheap housing less affordable due to high rates then worst dwellings are left vacant beginning blight then even home improvement loans get hard to get more blight and harder to get property insurance that causes businesses to leave followed by people leaving the poorest and eldest The city also loses big as it loses sales and property tax revenues Government tried through Civil Rights Act Home Mortgage Disclosure Act Equal Opportunity Credit Act But even the FHA rejects a higher number of nonwhite applications Insurance Agents They for a while were using racial composition as a category to decide coverage and rates they cannot do that now supposedly You have to have the insurance to get a mortgage thus the gate keeping function 19 What is gentri cation Where is it done now Why does it get a decent amount of support What is needed for gentrification to take place Gentrification It is when 1 Middle income or high income people move into a working class or twilight neighborhood 2 Physically renovate deteriorating housing stock to meet the new owner s requirements 3 Raising property values and thus taxes 4 Forcing the old inhabitants out It was once just in the top tier of world cities then regional nodal centers and now has gone completely global both to small cities and cities in the developing world to the extent they have old cores to renovate even tourist areas where old hotels turned into boutiques In the US it displaces about 900000 households a year It often nds some left and right support left like that it rehabilitates historic structures and often brings about alternative retail spaces right likes it because it is urban renewal with little cost to government For gentri cation to take place need A pool of potential gentri ers which means well paid people in administrative managerial medical and producer services in the CBD A supply of potentially gentri able urban housing which cities like Dallas and Phoenix lack although there can still be a movement towards downtown in these cities just in new construction A critical mass of people and businesses who see gentri cation as a desirable lifestyle choice 20 What explain the humanistic approach to explaining gentrification The structural approach What is the revanchist era Gentrification cont It is one of the most looked at urban processes by geographers and several different approaches have developed David Ley developed the humanistic approach which emphasized social cultural and occupational shifts in bringing about gentri cation Essentially more professionals working downtown with postmodem sensibilities want something human scale and diverse near their work so high rises and suburbia won t do They choose historic stock use their large incomes to secure it and then begin to work on city politics from a position of strength Neil Smith emphasized the role of economics in a structural approach He emphasized the rent gap that had developed in the area between the CBD and the suburbs that was undervalued As the drivers of the process he put developers ownerdevelopers and landlord developers He framed it as part of neoliberal governance where the poor are left to the mercy of the market sometimes with a push from government Called it the revanchist era where the powerful got revenge for the gains of the 1960 s 21 What does gender have to do with gentrification What is the role of GLBT communities Gentrification cont Liz Bondi and Alan Warde have emphasized that gender is a major component of gentri cation That many gentrifying couples are dual income both working downtown and can afford private schooling Larry Knopp and Mickey Lauria emphasize the role of GLBT especially gay men who have higher wages in gentri cation Without children generally did not have to worry about schools Overrepresented in high skill high wage professions located in cities The heteronormativity of suburbs made it suck to GLBT but in cities could get a concentration and community Sharon Zukin and Rosalyn Deutsche emphasized changing taste under postmodemism and the increasing acceptance ofavant garde as quasimainstream Thus gentri cation is both economic and cultural but it is important to understand to what degree it is which since only by understanding it can policy be effective
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