Building a grounded city region - Inclusive Economy Liverpool
Building a grounded city region Julie Froud, Colin Haslam, Sukhdev Johal Karel Williams Foundation al thinking and building the grounded city Foundational Economy = book + website foundationaleconomy.com = a new way of thinking
FE changes how we see, what we do in a city like Liverpool FE adds vision: grounded city (not competitive city or developer led regeneration) Identifies challenges before (re) building can start 1. Find new metrics of liveability 2. Develop a new foundational planning 3.
Master political alliances The FE vision of a grounded city Foundation al vision: the grounded city Grounded city takes responsibility for the well being of its citizens:
eg Vienna: travel pass for 1 euro a day, 50% of housing is social + fair rents are enforced Collective provision of affordable, everyday essential goods and services for all citizens: housing + transport material infrastructure of utility pipes and cables providential services of health, education and care Manage social conflicts over land use which take various forms in different cities eg Brussels: developers vs city centre builders yards, car repair shops etc; Barcelona out of control tourism feeds short term lets via airbnb policy
frame: the competiti ve city Competitive city captures jobs and growth through business friendly policies eg Liverpools knowledge quarter or the competition for Channel 4 HQ Capture mobile investment gain high VA activity; GVA/GDP as the metric of success Tradeable, competitive industries are the basis; hi tech, creative industries are valuable Agglomeration is the internal dynamic; privileges big cities
Policy = improve transport infrastructure and skills When business friendly reaches city planning: developers get permission to build whats profitable with little payback for the majority of citizens Outcome: developer led regenerat ion Whats profitable varies by city eg in London, Thames side flats for the rich; in Northern UK cities it is 1-2 bed buy to let flats for
25-34 year old professionals eg of DLR in Liverpool: 2002-15 Liverpool city centre population 9,800 to 25,800 and nearly 10 k were young professionals with 1 bed flats at 750 per month Monoculture ex more of the same with little section 106 compensation; symbolised by Baltic Triangle development of 500 flats in 4 towers of 8-18 storeys with 1.4 million of section 106 funding waived because Lacie was providing open space. At a time when the city council is facing yet another accumulating funding gap. NB Salford research shows little connection or spill-over from islands of prosperity; and outer Liverpool like Huyton? Lacies
Baltic Triangle 18 storey tower: shiny, shiny Huyton town centre 7 miles and a world away How do we (re) build the grounded city ? (defeat competitivity + developer led regen) Meet three challenges/
establish the prerequisites for change (1) Map the city with new metrics (2) Get expertise behind the foundational agenda (3) Manage foundational alliances Going beyond conflicts eg about the Mayors borrowing of 200 million for road repairs Next steps after successful re-municipalisation of bins;
park services; IT, HR + payroll ; highways services (1) new metrics for foundational liveability (old = GDP and GVA) Old metric: GDP and GVA= Liverpools failure (by a dodgy measure)
GDP + GVA adds up everything according to market value; bigger is better per capita, growth is good Liverpool is unsuccessful + not closing the gap : GVA per capita fairly steadily around 75% of UK average Dodgy measure in two ways: Breaching planetary limits : with consequences from global warming to NoX + particulates in city air Adding up apples and pears economic outputs are heterogeneous; well being critical + essential outputs like health care vs fast fashion; inescapable first charges on income eg housing and transport New metric: foundatio nal
liveability = economic and social Foundational liveability has econ and social dimensions (1) residual household income measured by subtraction of essentials gross income taxes = disposable disposable housing and transport = residual (2) social infrastructure ie parks, libraries community centres for free or cheap social activity revealed social demand of citizens in replies to
our Swansea questionnaires New metric: changes gaps + problems eg London vs regions Residual income gap much smaller than gross income gap; per capita Londoners spend 10k more than in West Midlands but 7k of that goes on more expensive housing Household type + tenure is as or more important:
owner occupier vs private rented vs social plus age, one or two incomes, place in the income hierarchy London is like Brechts LA: heaven for the rich and hell for the poor ex unaffordable housing; first time buyer households need income of 89k + 140k cash deposit to buy a 436k Wealth effects are as important as income gaps: mortgages buy an appreciating asset with no tax on capital gains; average price of London dwellings increases by 195k 2008-18 = the average owner occupier makes unearned nearly 20k per annum (2) New expertise: foundational planning with
citizen participation (old = facilitating business) 20th century expertise: 1940s town planners + 1990s business facilitators Town planning 1940s-70s = public employees do 2 dimensional zoning; housing + shopping + employment adapted for cars eg modernist
British New Towns By 1990s expertise means facilitating business as corporate business is released from its social duties and gains rights: public employees in economic development and regeneration find out what business wants and make it easier eg inward investment; most lawyers, accountants + urban planners are privately employed to help firms avoid social obligations 21st century expertise: foundation al planning
as a public service Liveability is not enough; because residual income + social infrastructure could encourage a socialised version of the right wing line about low taxes + money in your pocket Needs back up of expert foundational planning: 3 dimensional environmental planning about air, water, energy, housing and food Innovative new foundational services eg care for an ageing population Foundational planning like PEMB is starting with Barcelona 2020..
Not more technocracy: foundation al planning with citizen participatio n Expertise with a new kind of citizen participation; not more town hall planning but a new model of engagement with bottom up needs and wants Foundational service challenges now are different from electrification or free
hospitalisation where technocrats rolled out networks and branches eg Negotiate on services like older care where we have to balance bio medical and social needs Legitimate services used by minorities eg public transport in smaller towns formatted around car use like Swansea where 85% have access to a car and 40% never use the bus A Swansea citizens jury on care (3) New politics of foundational alliance (old = capturing
power) grounded city in 20th century: red cities + the organised working class 20 th century red cities 1920s Vienna , 1970s Red Bologna + heroic towns eg 1930s Llanelli + Ebbw Vale Red political base in organised working class:
social democrats/communists/ labour = unions + mass party win electorally + as permanent party of government press foundational agenda through state action Echoed faintly in the Labour dominance of major UK cities: 75 of 90 Liverpool City Councillors are Labour; but with volatile electorate eg Labour won in 2010 from Lib Dems who in 2007 had 51 seats Limits on UK local authorities logic of foundation
al alliance Hostile environment ex continuing financial squeeze: austerity cuts + uncertainty on post 2020 funding; Osborne plan for LAs from 80 % locally funded to 100% self funded; hurting Liverpool and other cities with a limited business rate base Loss of LA management capability to design, build, operate and maintain complex systems; with stock transfer, academisation + outsourcing of care, LA officers are paid more to do less Ferment in civil society: weaker working class + new rainbow coalitions of progressives, ngos + autonomous institutions (amidst justified doubts about whether government is benign or competent).
We need a new politics of foundational alliances; recognising that permanent parties of government which do it all are in the past Foundation al alliances? public civil partnership s = PCP the big idea of local authority as the partner state eg the greens in Ghent; beyond binaries of state or citizens and of state vs market
PPP = a disaster as gov. loses control of services with PLCs and fund investors targeting high returns + providing inflexible services PCP = the challenge of managing without top down control; enlisting citizen initiatives + autonomous organizations about activities in the local park or what kind of adult care with public funding. And civil society includes grounded small business: if the state builds care homes, why shouldnt mom and pop firms run them? NB our objection is to financialised providers with 10% return targets i.e. Amey and all the rest So, what can Liverpool do?
Others are now moving: Barcelona, Ghent, Wales Grounded city is like a fruit machine; nobody has lined up the three lemons but we can learn from those who have one or two lemons up Barcelona strategists are doing foundational planning Ghent greens are doing public civil partnerships Welsh Assembly is talking the talk + allocating
1.5 million for experiments Vienna is asking what next after resisting demunicipalisation FE academic collective has presence in UK, Italy, Austria, Belgium + new measures coming up? and, Liverpool? Twin track: analysis + engageme nt Can you meet the 3 challenges? 1. Can you map the city with new metrics to guide policy?
2. Can you mobilise foundational expertise + citizen participation? 3. Can you engage by sponsoring public civil partnerships?
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