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Thursday, March 22, 2012

Creative Class vs Native Class


In the article ‘Cities and Creative Class’, the author Richard Florida seeks to identify the rise of the ‘Creative Class’ , a new social class which are basically knowledge workers, whose economic function is to create new ideas, new technology and/or creative content. Richard Florida argues that the character of the cities is defined by this creative class and reverses the traditional approach of Urban development by propagating that it is the ‘place’ rather than ‘corporation’ that matters to this creative class people. Florida’s hypothesis is substantiated by many regions of the world where urban forms are dominated by the small cities which are not historical in nature and have origin which is recent in nature and dominated by technology and talent attracting large capital investment by Multi-National Corporations e.g. Silicon Valley and Orange County in California and Bavaria in Germany. Rise of such cities have brought into focus the concept of creative cities and policies in many parts of the world are so directed to generate such creative magnets for talent pool and foster economic growth. Deindustrialization of the western manufacturing cities, the rise of the service industry and globalization of the world all account for the growth of such creative cites and the dependence on technology and Innovation for economic growth make them significant in the history and geography of the world. In strict technological sense the parameter of creativity of such cities is judged by the number of patents registered by the Companies and creative people residing in the city.
Since creativity is created by the created by the individuals, the natural corollary is that innovation can take place anywhere especially in the present age of technology, but from Richard Florida’s point of view Creativity needs an environment to thrive, that is Creativity is cultural and contagious, so cities invests in urban interventions to attract the creative souls of the world. The counter argument is put by Glaeser, Kolko and Saiz, 2001 who state that instead, the productive advantage that one area has over another is driven mostly by the people. Urban success comes from being an attractive “consumer city” for high skill people[1]. Their advice for the mayors of the cities is to focus on the basic commodities desired by those with skills rather than creating a funky, hip, gay friendly bohemian town.
Taking the Creative Class argument to the next level, Richard Florida in his 2006 book, ‘The Flight of the Creative Class’, states that this global competition for creative talent will be the defining economic issue of the 21st century[2]. Florida argues that post 9/11 American policies have become less supportive for attracting this creative class which can have serious consequences for the US in terms of their economic growth and global supremacy. In the latest book ‘The Great Reset’, Richard Florida states that the economic recession in America calls for new policies to foster economic growth in cities by working on the ‘spatial fix’, an idea he borrowed from the economic geographer, David Harvey. He calls Americans to shun their love for home ownership and argues for rent based urban form that can have more creative class mobility. Richard Florida says “The places that thrive today ,are those with the highest velocity of ideas, the highest density of talented and creative people, and the highest rate of metabolism[3].”
Top Down or Bottom Up
One wonders, how this City Doctor, Richard Florida’s prescription of top down approach towards the development of cities, with focus on the elite creative class, will affect the health of the cities. What can be the potential side effects of this Creative class therapy?  Does focusing too much on the culture of creativity and high influx of creative immigrants make the cities and their real estate markets unrealistically high making the cities unsustainable in the long run. If the issue is the attractiveness of cities, Do people rank this creative class space as the top priority in deciding the cities to live in or Are interested in more fundamental factors such as security, health, education, infrastructure and political environment.
Native Class
In my opinion governments should focus on the ‘Native Class’ rather than the Creative Class for the simple reason that the native people make the city not the immigrants and cities should not be designed for the mobile creative class. Creative class people are disloyal to the cities in the sense that if the cities fail to excite them then they move to new cities resulting in the flight of capital and creative people, so why concentrate so much on this class? Secondly the mandate to govern is not given to the government by the immigrants but by the native class so policies should be tailored as per the aspirations of the native class. An Indian Banker who is not loyal to India cannot be loyal to USA, so the moment he sees a recession he is the first person to leave US and return to India, so why focus on him? Why make policies to attract him? His only motive is to earn money and he will do it where he sees opportunity. So why ‘create’ Creative cities for such opportunist creative class?



[1] Review of Richard Florida’s The Rise of the Creative Class, Edward L. Glaeser
[3] http://www.fastcompany.com/1637457/richard-floridas-creative-destruction, accessed 14 March, 2012.

Monday, March 12, 2012

Market Imperfections of Global Cities


In the article by Fainstein ‘Inequality in global city-regions, the writer talks about the growing inequality in the global cities in the world. This inequality is quite paradoxical in the sense that this tag of global city in a sense based on high economic growth which the Capitalism aspires for, but the fruits of this Capitalism are not distributed among the cross section of the population. It is not this growth makes poor more poor rather the rich become rich at a fast race compared to the poor which results in the vast inequality seen in the Global cities.
The notion of ‘Global Cities’ was put on the global map by Friedmann (1986), Castells (1989) and Sassen (1991, 1994) based on the notion of that these cities function as nodes in the global economy with London, New York and Tokyo cited as prime examples. Derudder’s (2006) summary of the Global Cities literature lists corporate organization and infrastructure as the two key empirical criteria for Global City status[1]. Fainstein makes a very important point that apart from these common characteristics, these global cities show growing income disparity in the population of these cities with the middle class shrinking and the bottom class growing which has serious bearings on the character of these cities.  Another important point that the author makes is the importance of the nation-state against a growing popular belief that the nation-state has become redundant in this age of globalization. The vulnerability of the poor and the disadvantaged becomes more pronounced as the economic growth takes place, calling for the state to have better equitable policies.
The Global city tag is on the top of the wish list of many city managers and Mayors, primarily seeing it as panacea for all urban ills. This notion of global city capitalism emphasizes the role of knowledge, information, global networks and global finance for capital accumulation and profit generation. This new phase of capitalism represents a transformation from country-based economic systems to city-based ones[2]. The knowledge economy of these global cities makes the poor living there more vulnerable in terms of income, job opportunities and job security. One of the major alarming consequences of this divided dual cities is the fact that this social and economic polarization of the population results in the spatial polarization in the urban form of these global cities with clear cut division where the rich live and where the poor live, resulting in the ‘Gated Communities’.
Economist measure income disparities in population by ‘Gini Coefficient’, which is a number between 0 and 1, where 0 corresponds with perfect equality (where everyone has the same income) and 1 corresponds with perfect inequality (where one person has all the income — and everyone else has zero income). What is surprising is that some of the developed countries of the world have a high score in Gini coefficient implying greater income inequality in their cities. One of the plausible reasons for the high income inequality is the presence of headquarters of large multinational corporations especially financial firms, where the executives draw huge salaries but even if that fact is discounted the bottom half of the population does not get the equal fruits of economic growth compared to the upper half.

Inequality, growth and Cities
This presence of inequality of income in both the developed national and developing or under developed nations raises doubts about the effectiveness of the development in the rich countries and leads to many questions “What bearings does the income inequality has on the growth of cities? What is the casual relationship between the level of income inequality and the pace of economic growth? Is the USA’s low GDP growth due to large income inequality in its Cities? Or Income inequality is a market imperfection that the market takes care in the long run and what are its implications for public policy especially in the Urban Planning?






[1] ‘Global Cities in the South: Deepening social and spatial polarization in Cape Town’, Charlotte Lemanski 2006

[2] Social Polarisation and Poverty in the Global City The Case of Hong Kong, Kim-ming Lee, China Report January 2007 vol. 43 no. 1 1-30                             


Friday, March 9, 2012

Corruption in India-Jan Lok Bill


The Jan Lokpal Bill was introduced in the parliament on August 4, 2011. The Bill provides for the establishment of an Ombudsman or Lokpal for enquiring into complaints of corruption against certain public servants. In a country where there are more than 34,700 laws, do we need a new law to fight Corruption? What about even if we pass the Jan Lokpal Bill and there is no proper implementation? These questions need to be answered in order to dig deep on the issue of corruption in India. Can Jan Lokpal Bill be a panacea for all ills?  Presently there are anti corruption agencies like Lokayuktas, Central Vigilance Commision (CVC), Central Bureau of Investigation, etc who are doing a fine job and needs to be strengthen and not bulldozed by a oligarchic structure of Lokpal institution. Booker Prize winner Arundhati Roy calls Jan Lokpal Bill a very regressive kind of law which concentrates the power in the hands of few members which she calls a ‘Parallel Oligarchy’. Corruption is a manifestation of temptation and what if the members can’t resist the temptation and become corrupt themselves. In a country of 1.3 billion where everyone wants to be a God and Hero, concentrating power can have dangerous authoritarian consequences. Another point to be emphasized is that Corruption needs to be defined in a more broader concept against the prevelant westernized definition. In the land of Gandhi, anyone taking more than his need, is in a way governed by Greed and is therefore corrupt. The private sector needs to brought under the ambit of anti corruptions measures.
Why suddenly the issue of Corruption and Jan Lokpal cropped up now? Was there not corruption before? The interest the corruption rhetoric is generating needs to be probed further. In the last 2 years the conviction and jail of big fish in the corruption field is a phenomenon not seen in India before and when things are rolling in the right direction why this movement against corruption in the form of Jan Lokpal Bill. Booker Prize winner Arundhati Roy says that these movements are funded by NGOs who are funded by the Western agencies like Ford Foundation, Rockefeller Foundation and World Bank for further penetration of International Capital. I would like to quote from an article in Frontline by Prabhat Patnaik- “The transition from democracy to what some have called “corporatocracy”,…. which is an integral part of the rise to hegemony of globalised finance capital. The Hazare group's assault on parliamentary institutions and exclusive emphasis on corruption within the state machinery, to the exclusion of the corporate sector and civil society groups, could well turn out to be, albeit unwittingly, a part of this agenda of converting our democracy into a ‘corporatocracy’.”[1]
Does so called ‘Team Anna’ represents the whole India? Its certainly not a peoples movement, many people came to see a kind of a reality show and feeded by RSS and Bhartiya Janata Party cadres. One of main consequences of this Hindu right wing open support to the Anna Andolan has been that the Muslims have boycotted this movement. This is going to do a major damage to the Secular fabric of the country and the issue of Corruption. Muslims who by nature of their poor representation in the Services and their low education profile are in fact more potent victims of corruption than their Hindu counterparts. Imagine what harm this movement has done that now Hindus and Muslims are divided on the issue of fighting corruption in India.



[1] ‘Fuzzy Movement’, Prabhat Patnaik, Frontline Vol.28, Issue 19, 2011