in 2005 when Thomas Friedman was suggesting the world was flat, U of Toronto professor Richard Florida countered by saying, no, it's spiky. (an argument also put forward by John Raulston Saul in The Collapse of Globalism) In a new article in the Atlantic Monthly, Florida talks about How the Crash will Reshape America...
Every phase or epoch of capitalism has its own distinct geography, or what economic geographers call the “spatial fix” for the era. The physical character of the economy—the way land is used, the location of homes and businesses, the physical infrastructure that ties everything together—shapes consumption, production, and innovation. As the economy grows and evolves, so too must the landscape.
To a surprising degree, the causes of this crash are geographic in nature, and they point out a whole system of economic organization and growth that has reached its limit. Positioning the economy to grow strongly in the coming decades will require not just fiscal stimulus or industrial reform; it will require a new kind of geography as well, a new spatial fix for the next chapter of American economic history.
Florida, in the spirit of fellow Torontonian Jane Jacobs, goes on to suggest several possible scenarios -- the right spatial fix -- to emerge in North America, post this present crisis...
- The solution begins with the removal of homeownership from its long-privileged place at the center of the U.S. economy.
- we need to encourage growth in the regions and cities that are best positioned to compete in the coming decades: the great mega-regions that already power the economy, and the smaller, talent-attracting innovation centers inside them
- we need to begin making smarter use of both our urban spaces and the suburban rings that surround them—packing in more people, more affordably, while at the same time improving their quality of life.
- we need to be clear that ultimately, we can’t stop the decline of some places, and that we would be foolish to try.
lots of other good stuff in the article (although US focused of course)
interesting ideas for those of us who believe that the recovery of shalom involves recovering neighbourhood and relationships based on proximity
the myths of the "informal sector"
in international development circles the notion of the "informal sector" plays large. The thinking is that "there has been a proliferation of rudimentary informal activities which provide means of survival to the urban poor." That is, even is people are not employed in the formal employment sector, they are still managing to thrive in a kind of free-market competition within the informal sector. Dutch social scientist Jan Breman however has suggested that upward mobility in the informal economy is largely a myth inspired by wishful thinking.
The De Soto bootstrap model has a simple recipe for the informal sector: get the state out of the way, add micro-credit for micro-entrepreneurs and land titles for squatters, then let the markets take their course to produce the transubstantiation of poverty into capital.
In Planet of Slums, social theorist Mike Davis gives some specific responses to this notion.
1. Formal and informal is too simplistic; within the informal sector there is a reservoir of dynamic entrepreneurs and the community of the poor -- which contains a large body of residual and under-employed labour.
2. Even "entrepreneurs" in the informal sector, with some basic examination, will be found to be working directly or indirectly for someone else.
3. Informal employment is essentially the abscence of formal contracts, basic rights, regulations and bargaining power. Petty exploitation is the basic building block of the informal sector.
4. Informality ensures extreme abuse of women and children.
5. The informal sector does not create new jobs, but only fragments existing work, thus subdividing incomes. 5 people get a piece of one person's work who was employed at a living wage.
6. Desperate conditions cause people to turn to the "third economy" -- gambling, pyramid schemes, lotteries and other quasi-magical forms of wealth appropriation (including preachers who say give to me and God will bless you)
7. micro-credit and cooperative lending have little macro impact on the reduction of poverty. They aid micro-accumulation so as to enable "treading water." people can survive, but not thrive. which may be enough for many.
8. Encouraging competition within the informal sector depletes social capital and dissolves self-help networks which are essential for the survival of the very poor.
9. Extreme competetion in the informal sector, in the absence of enforced, regulated labour rights and practices often exacerbates ethnoreligious differentiation and sectarian violence.
Posted at 03:01 PM in Social justice commentary, urban issues | Permalink | Comments (0)
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