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“Mega-Projects: The Changing Politics of Urban Public Investment” Response

The book, Mega-Projects: The Changing Politics of Urban Public Investment, discusses different methods of funding public projects. In all honesty, I really didn’t understand the private investment aspect. What I got from it is that American cities fight for private investors’ money in order to support the projects necessary to revitalize them. If that is correct, then I find it pretty awful that cities have to compete for these things. It appears that the government refrained from helping because it received negative feedback when it did so, but I don’t see why. This is something that I think is the government’s responsibility, so I don’t understand why people wouldn’t want the help. It’s actually not the government’s fault, but having the cities battle it out for investors is just ridiculous.

However, it seems that cities are perfectly capable of attaining this funding. Once that happens, the main focus becomes the actual construction. Recently, cities have been building expressways in areas with little to no urban development. As expected, there has been criticism: it encourages the expansion of cities and increases traffic. However, people also dislike when expressways are built through areas that are already urbanized. Somebody is unhappy either way, but I think it’s best to build the expressways before the urbanization occurs. In the long run, it works out better for everyone to grow a city around this central structure instead of forcing it into the middle of something that is already established and functions well. This complies with the “do no harm” paradigm, and its potential problems probably would’ve happened anyway.

Something that violates the “do no harm” rule, on the other hand, is the renovation of the Woodrow Wilson Bridge. It involves the displacement of 300 residential apartments, but it services a lot of people and companies. This brings up the question of if it’s okay to sacrifice a little in order to gain a lot. It sounds reasonable, but I’m sure that the people being moved out of their homes don’t feel that way. I think the “do no harm” clause is great. There must be other ways to go about building or rebuilding structures that avoid harming people in the process. This “do no harm” concept can definitely be followed, so it should absolutely be enforced.

The criticisms of these mega-projects really made me think about how cities avoid expansion. With New York City, the population has steadily risen over time, yet the allocated space for the city has hardly increased, and not nearly at the same rate if it has at all. This would mean that cities just have to recycle their land over and over again whenever they start to run out of space. How do planners come up with new ways to do this all the time? Will there ever be a point where they can’t continue? Is there a backup plan for when that happens?

This book focuses on the mega-projects of the twentieth century. Now in the twenty-first century, there don’t seem to be as many. This is mostly because they have become increasingly expensive, but I also think it has to do with the fact that so many things have already been built. There isn’t really a need for another airport or highway in most American cities; they are all doing just fine with what they have as of now. Since we no longer need new transportation facilities, we have turned to creating space intended for living and recreation. Mega-projects have just changed in nature, and they are fortunately still happening profusely.

Altshuler – “Mega-Projects: The Changing Politics of Urban Public Investment” || Response

In “Mega-Projects: The Changing Politics of Urban Public Investment”, Altshuler focuses on urban politics and public policy by addressing mega-projects. But what exactly are these mega-projects? He uses this term to describe highways, airports, and rail transit systems, which were endowed by federal programs and federal funding. In Chapter Nine, Altshuler pays close attention to the developments of the twenty-first century and the future of these mega-projects.

At the very beginning of the chapter, Altshuler states how these mega-projects are becoming “increasingly marginal” (270). It seems as if everything is just too expensive to be constructed. The economic recession, decrease in tax revenue, decrease in tourism revenue and decrease in airport, highway, and airline revenues also played a role. I found it surprising that tourism revenue is used to fund sports facilities and convention centers. With the available funds the government does have, beefing up and maintaining security remains a top priority (especially after 9/11). Additional things that are hindering the growth of mega-projects are federal programs that help the poor and elderly.

One thing I found particularly interesting was the “do no harm” imperative. I understand that it is important to not negatively impact businesses or residents in an area where a mega-project will be constructed. Altshuler brings up the example of the expansion of the Woodrow Wilson Bridge, which will displace approximately three hundred residential apartments. It violates the “do not harm” norm. The expansion however, is seen to have more pros than cons to better serve the future.

This reminds me of Willets Point, which is home to many auto-body repair shops, scrapyards, and businesses of the same sort. Bloomberg’s Willets Point Redevelopment Project will certainly “do harm” to the workers and business owners of that area. They are forced to relocate and find new jobs. This brings a few questions to mind – to what extent does the “do no harm” imperative apply? Is it okay as long as the benefits outweigh the damages? Is it okay as long as there are government programs to assist in the relocation and training of displaced workers?

Despite the decline in mega-project growth, Altshuler concludes that he does believe the era for them is not over. It may not be like it was during the late twentieth century. There are many shortfalls, but the government is slowly but surely funding new mega-projects. I would have to agree with Altshuler. Examples today are the Barclay’s Center, the Willets Point Redevelopment Project, Hudson Yards, and Atlantic Yards.

The Atlantic Yards

From its inception, the Atlantic Yards megaproject was shrouded in controversy between developers and residents. Some residents are pleased with the inclusion of affordable housing in the project’s 22 acres of redevelopment. However, the government’s continued emphasis on central planning has caused many to raise concerns.

To begin, I found it surprising that the Atlantic Yards project even catered to housing and environmental needs in the surrounding communities. The 22 acre redevelopment project is centered around the Barclay’s Center. However, some land has also been set aside for residential use. About 4,500 units of rental housing will be provided, half of which will serve low, moderate, and middle income families. In addition, the demolition and construction of the new site was planned with the environment in mind. About 75% of materials will be recycled and efforts have been made to reduce noise and air pollution during the process. Altogether, it seems that the residents were given enough reason not to oppose the project.

Furthermore, the Atlantic Yards developer, FCRC (Forest City Ratner Companies), signed a community benefits agreement that seemed to appease many parties. The agreement promised that contractors would hire part of their workforce from people in the community, with an emphasis on minority and women workers.  In addition, affordable housing for seniors, the development of a health center, and the provision of other amenities were signed into contract. It seemed unthinkable that developers would even agree to such terms. However, after more research, it became clear that FCRC used the agreement as a means of stifling opposition towards the project. Community activist groups such as ACORN were used to fighting losing battles for the sake of their residents. Consequently, when the Atlantic Yards project came along, they were swayed by the written agreement that considered low-income residents in the neighborhood. Hence, despite the existing issues of repossessing land, bypassing of Brooklyn officials, and excessive government planning, community groups were satisfied with the promises made in the CBA.

The concerns regarding land repossession and continued central planning are of most importance to residents who still adamantly oppose the Atlantic Yards project. To begin, the government can exercise its 5th amendment right to take property for public use if the land is considered “blighted.” The problem with this classification is that there is no standard for what is considered blighted land. According to Nicole Gelinas, in the 1930s “blighted” was equated to “families and children dying from rampant fires and pestilence.” Today the term is used in a much looser sense, typically signifying cracked sidewalks, graffiti, and underutilization. Hence, government can deem practically any good piece of land blighted if they desire to repossess it for development. Furthermore, by refusing to put in place proper infrastructure, they can also expedite the process of property becoming “blighted.” As a result, many citizens believe that the hand of government should be removed from projects like Atlantic Yards and allow private markets to dictate conditions for redevelopment.

On the surface, the Atlantic Yards project appears to provide a supreme benefit to the low-income residents of its surrounding neighborhoods by offering job development, affordable housing, business contracting, and community amenities. However, when researched further, it becomes clear that the megaproject was actually a product of overt government influence and planning. Although there is reason to celebrate the inclusion of some residents, it is important to acknowledge that surrounding communities were only given consideration as a means of gaining approval of the Atlantic Yards project and not for the overall benefit of the people.

Mega Projects-Altshuler

Mega-projects is a topic that I have been exploring ever since the beginning of my fall semester this year. My previous IDC class, science and technology in New York, delved into this topic, so reading this introduction by Altshuler was relevant to my previous studies. Mega projects in my opinion are always two sided, because ultimately any public development project has to have some financial incentive so that the government can keep going. In his introduction, Alshuler seems to highlight both the business and public side of megaprojects.

Altshuler breaks down the benefit of mega projects to either the major investors or the public. Ever since the 1950’s there has been a trend of focusing more on tactics to “lure major investors” rather than focusing on public infrastructure development. There wasn’t enough information to understand as to why the 1970’s resulted in more difficulty for the government to pass mega projects, however I would like to explore that time frame. I really liked the way Altshuler broke down the concept of interjurisdictional competition by explaining that the government needs private/business investors to continue on this growth coalition. I didn’t realize that governments don’t make profit from essential public facilities such as mass transit and convention centers, and that is why they focus often on more profitable public facilities such as sports arenas.

The issue with government taking profit from mega projects is that there is a thin line of actually serving the community or servicing companies. For instance, in my previous class we looked into hydraulic fracturing for natural gas across America. While gaining natural gas is great for the US economy and is often backed by the US government, this heavily influences the residents of the area where the fracturing takes place. We watched a documentary called Gasland in my class and it was shocking to see the negative health effects this process had on the residents and how little the government and companies did to help/minimize the situation at hand.

However of course there is a non-cynical view, which looks at government growth initiatives as benefit to the public and not for public profit. For instance the public housing project in St. Louis, Missouri called Pruitt-Igoe, was a megaproject that was originally intended to help the people, however as we learned in class it wasn’t a successful project.  While the government had only intentions to help the lower class out and to rid St. Louis of the slums, but not having any business/private investors giving them money back, the government stopped the funding of this project causing it to go to shambles and breaking down the city of St. Louis. I believe there needs to be a fair mix between investors and public infrastructure development in this government

Overall, this was a well-written introduction that was easy to follow and applied to all of the things we have learned this semester. In a democratic government there are a lot of players when it comes down to the decision making process, so often I feel the original intent to help the public is lost to corporations that infiltrated our government system. I am interested to see what course my research on Times Square goes.

 

 

 

 

The True Underclass

In the excerpt we read by Katz he writes that the underclass transformed, in it of itself it is now coming to be defined as entrepreneurs. Katz means by this that the people who were previously seen as poor and underprivileged were now more hopeful where they are waiting for an opportunity and then be able to capitalize on it and thereby become successful. Personally, I believe that what Katz is saying holds some truth to it but, it is not completely true, furthermore putting them to this standard may have some repercussions.

During the beginning of Katz’s excerpt my first thoughts were complete disagreement. My first thought was that you have to explain what underclass means, which he does by saying it has many societal factors. But, he proceeds to give an example of a teenage girl who gets pregnant out of wedlock and then ‘mooches’ off society. That sounds a bit underclass, this is not implying that all people who take money from society are underclass, quite the opposite. The differentiation I’m trying to emphasize is that being poor doesn’t necessarily make one underclass. Rather, if one chooses to accept themselves as being poor and being less than everyone else they are underclass, not because they are any worse than anybody else, but because they don’t believe enough in themselves to succeed. And in my opinion that’s the true meaning of underclass.

Regarding what Katz said about the concept of the ‘underclass’ being considered entrepreneurs (again I hold this to mean the poor, as not all poor are underclass) this holds some truth where they just need an opportunity as he says. Take Steve Jobs, when he was founding Apple he built the first computer in his parents’s garage. In fact Steve’s parents couldn’t really afford to pay for his higher education, so he audited a lot of classes and slept on the floor in his friends’ dorm rooms. However, he soon became one of worlds greatest entrepreneurs of the 21st century. But, I guess it refers back to what Katz said, he waited for an opportunity and seized it, for him it was Apple the company he helped cofound and he did a great job at it.

Finally, one has to be careful by putting the poor/underclass in a way where one is claiming they are Entrepreneurs. The reason for this is that on the one hand you set them up for failure, but on the other hand you are setting them up for greatness. By placing them in this light one of two situations may occur, either the people will use this as a motivation and will accept there’s more to them than meets the eye. Or they might think the bar is set too high and since they will never make it they might as well not try. I guess this refers back to my definition of the underclass, where here there is a clear distinction. Those who will use it to fuel their drive are simply poor, while those who will just give up because of it, those are the true people who are underclass.

Finally, after an analysis of how Katz introduces the topic of underclass meaning entrepreneurs I have to disagree. I think that the poor has the potential to become entrepreneurs (as does everyone else) but, the true underclass are those who don’t choose to act on this.

Katz Response

As I was reading the Katz piece, the idea of how the poor became poor changed. When the Philadelphia Guardians said that those dependent on charity and public assistance were synonymous to the “undeserving poor,” I really thought these people had no minds. To me, it is so clear that some people simply couldn’t go up the social ladder because of their background. It is not necessarily their fault that they became dependent on it. Because of how they are dressed and the areas they live in, they were not given the opportunities to improve their lives as much as others. I don’t know who the Philadelphia Guardians are but I can’t help but think if they are educated people or not.

I was very surprised to read that racism was not the reason association with poverty was with black people. I did not know that it was actually the massive immigration of Africans after World War II were the cause. Since I live in the modern times, the ghettos are where most people associate poor black to be but at one point the country was still rural. Black people at that time still lived in rural areas and the ghettos in the cities were very small. While racism is a strong, driving force against black people, it is not always racism that makes us associate black people for certain qualities.

It sort of amazes how a term can transform so much over the course of time. Poverty was thought properly to be something caused by a poor person’s actions. People then were able to talk about the “deserving” and “underserving.” Then people started to divide the two categories into two, creating four total distinctions of certain levels of poverty. It is fascinating how much a word can change.

As I read the term “culture of poverty,” it seems very similar to “rape culture.” Both seem to blame the victims for what happened to them. Honestly, I never understood how some people could blame others for something like that. It isn’t like a poor person can suddenly become rich if he tries. There are certain obstacles in the way preventing him from doing so.

It is interesting how social programs at first were actually fueling the culture of poverty. The social programs themselves weren’t providing new opportunities for the underclass. It was simply helping them maintain the same way of life that generations of their families have lived. It kind of surprises me that writings about this did not draw to this conclusion faster. It isn’t straightforward but with more effort, I feel like the connection would have been seen sooner.

Katz’s “From Underclass to Entrepreneur: New Technologies of Poverty Work in Urban America” and the doom of gentrification

In Katz’s “From Underclass to Entrepreneur: New Technologies of Poverty Work in Urban America,” gave me another reason to think that harmony is the hardest substance to achieve in the midst of urbanization.

Gentrification, even though has been explained to me back in the days of IDC 3001, still seems relatively “alien” to me, mainly because I have lived in areas where gentrification went by unnoticed. Gentrification, the idea that new people coming into the neighborhood and changes the whole dynamic of the place, seems unrealistic to me. Idealistically, gentrification is used as a dominant force of revamping one neighborhood through the interaction between insiders and outsiders and somehow this interaction fuses the two groups together in “harmony” and brings in new culture and fresh perspective into the group. As a psychology major, I remain skeptical since “in-group, out-group” psychology generally prevents encroachment of outside perspectives into the existing environment, creating more discrimination and conflicts and promoting disruption of the community. Especially since little has been explored about the feeling of the existing neighborhood toward the wave of incoming gentrifiers, I expect, from a totally human point of view that at best, interaction will be little, since the existing residents themselves do not really interact with each other that much, let alone with the new people and even if they do, the quality of the interaction will be decreased since the same amount of interaction will happen with an increasing number of people in the neighborhood.

In short, gentrification, practically speaking, destroys the tightness of the community, if the tightness even exists to begin with. Yet the “theory” about the benefit of gentrification keeps extoling that having middle class people moving into a neighborhood will increase social ties. Maybe there has been something that I’ve been missing all along or that I am just that pessimistic. My view kept being echoed over again as I kept on reading the excerpt. The existing residents of the neighborhood are the driving force behind changes around the neighborhood rather than the new residents. Again, competition among in-group and out-group for the reign of the neighborhood will erupt and not cease to exist unless one group gains control and excludes the other faction from the throne. It’s just human nature.

The hostility, though mild in effect, becomes a driving force keeping the neighborhood from becoming gentrified. A classical example is given in the piece, about a black gentrifier named Jennifer, who, after moving into an existing resident of the neighborhood, was called “white” by another in-group resident. She is of course, not “white” in race, but “white” in the fact that she has the status of an outsider.

From a policy-maker point of view, gentrification may make the neighborhood more attractive in terms of real estate value and marketable for people who are looking to move in, but the neighborhood itself decreases in intrinsic, community value that really makes a neighborhood what it is. Depending on the outcome striven for, I really think policy makers should separate between “bettering a neighborhood” and “enriching a neighborhood.”

“Underclass to Entrepreneur” – Response

During a summer College Now class in high school, I was exposed to the idea of “poverty as pathology” – the idea that the poor are doomed to remain poor due to their own lack of motivation, focus on instant gratification and lack of initiative. In my opinion, this is a very simplistic and convenient explanation for a pervasive social problem. The strategy of “blaming the victim” is a recurrent theme in many debates about various social justice issues. Michael Katz’s discussion of 19th and 20th century attitudes towards poverty show that this attitude was the foundation of theories regarding urban poverty. It can be easily argued that this outlook on poverty is still highly prevalent in society. By determining poor people to be the cause of their own poverty, society can dissolve itself of any responsibility in trying to solve the problem.

This is the reason why the idea of the “underclass” became so easily accepted into mainstream theories about poverty, it was an idea that was legitimized by media – it appeared in Times magazine and other leading publications, as Mr. Katz mentions repeatedly – and it was palatable to the extent that policy makers didn’t have to see poverty as a consequence of failed social structures. The main problem with this, as Mr. Katz points out is the resulting image of the undeserving poor as being fundamentally different and therefore beyond the reach of solutions offered to those who were merely experiencing temporary financial difficulties. But, Mr. Katz makes several comparisons which show that the activities observed in poor neighborhoods and demonized by researchers and policy makers – such as drug dealing – were simply substitutes for mainstream market activities.

It was a really interesting connection to make that drug markets and markets for other illegal activities thrived in certain neighborhoods because mainstream markets such as the housing market did not exist in these neighborhoods. I wonder if Mr. Katz was suggesting that it was the natural entrepreneurial spirit at work here and with no legal means available, people turned to available markets as a way of getting ahead. In any case, the idea of creating markets in poor neighborhoods is a valid idea. But as exemplified by programs implemented during the Reagan and Clinton administrations, even programs that tried this approach have often failed.

The article identifies, with reference to the work of Michael Porter, the reason or the failure of these programs was that they treated inner city neighborhoods as being “different” and separate from their surrounding neighborhoods and economies. Instead of treating them as being lesser than other markets and desperately incentivizing businesses to invest, it would be a better idea to portray them as places with advantages such as their “strategic location,” yet-to-be saturated local demand, and vast wealth of untapped human resources.

The article goes on to discuss current programs in place, many of them involving public-private partnerships. This reflects, in my view, the general popularity of social entrepreneurship in recent times. Social entrepreneurship and public-private initiatives weren’t invented in this generation but such projects have certainly reached new and great heights in the past few years. I think there is great potential in the ideas discussed by Mr. Katz, particularly micro financing and the focus on education. With a growing understanding of the causes of poverty and destigmatization of the “underclass,” solutions to poverty can and should involve more than just food stamps and unemployment benefits.

Katz Response

Michael B. Katz’s “ From Underclass to Entrepreneur: New Technologies of Poverty Work in Urban America,” begins by talking about how in the late 1970s to early 1990s, “underclass” meant poor, black people, who were in the midst of the crumbling core of the nation’s inner cities. However, by the early 21st century, no one really talked or wrote about the “underclass” anymore, but they instead “celebrated the entrepreneurial energy and talent latent within poor people who were waiting for the spark of opportunity to transform their lives.” I thought this was interesting because I never really heard or read people say this, and I don’t think this really applies to everyone who is poor. There are of course differences, as is discussed in the chapter amongst those in poverty, and while there are those who are trying to get work, but there just no opportunities, I think most people tend to focus on the “undeserving” poor, which is quite sad since this would tend to lead to a negative about those who receive government assistance.

In the chapter, Katz talks about the categorization of the poor into the deserving poor, those who are clearly helpless, and those who suffered circumstances beyond their control and proved to be willing to work for anything, even small things, and the undeserving poor, which includes those who committed crimes and did drugs or were dependent on the government, without really trying to get out and live on their own.  While is can be useful to separate the poor in such a way when talking about who should get benefits and such, a kind of separation like this can also be incorrect because it just looks at the surface.

For example, many people who commit crimes and do drug, may simply be a product of the environment they were in. If a person is around such activity from a young age, and they don’t really see much else, there is a big chance that is what they will do as well because that’s all they really know. In a situation like this, they were really deserving poor when young, and in addition to that, there could be so many other factors that lead to their lifestyle when older, and simply categorizing them as underserving poor isn’t really right or helpful. There should be an emphasis on helping people get out of poverty to prevent this type of thing, which I believe education is a large part of, as was also mentioned.

The War on Poverty emphasized opportunity, not by focusing on the labor market, but by improving individual skills through education and job training. I think this is a really important thing to focus on when helping the poor. Of course money is important, but by improving their skills would have a more profound and lasting impact and would allow them to stand on their own two feet and not depend on the government. It’s also important for the education system to help the young people in poverty so they have a way out and can do more for themselves.

Something that caught my eye was about Muhammad Yunus and how he began to lend poor women small amount of money to start their own businesses. I’ve read about various types of programs like this, some that allow people to loan to the poor all over the world to start business, and also others that are more community based and have women who form a group and decide who to lend money to. I think this is a really good way to help the poor who have skills and want to work and get out of poverty, but just don’t have the means to. This not only helps the poor, but also society as a whole, with more entrepreneurs and less people dependent on the government.

Response to Katz “From Underclass to Entrepreneur”

In “From Underclass to Entrepreneur,” Katz brings up the term “underclass” and goes into length defining the term and describing the connotations. It surprised me that this term was used recently in the 70s and 80s though I had never heard the term used in such a way before. What is more surprising is how much New York City has changed since then. Underclass, used to describe New York’s urban inner city areas, “conjured up a mysterious wilderness in the heart of America’s cities; a terrain of violence and despair.” The New York now, with it’s much lower crime rates, doesn’t seem to resemble the dangerous urban area filled with the “underclass” as it used to be.

It was interesting to read about Brace’s 1854 report about how “the growing density of America’s cities had eroded the character of their inhabitants.” Unlike Jane Jacobs’ ideas of how a bustling city would be a safer one, Brace argued that the density and over crowding was “corrupting” others around those areas. Housing reformers from the 1900s had similar reactions to slums, labeling them as “viruses infecting the moral and physical health of the city districts that surrounded them.” Poorer districts were considered to be an infection of the city and were avoided in order to prevent contamination.

From such an attitude towards the slums grew the distinction between the “deserving and undeserving poor.” Those whose misfortunes came about accidentally, such as in the case of a widowed women, were labeled the deserving poor. Unskilled, minority, or unwilling to work men, especially alcoholics, were considered undeserving and “sentiment … did not shift in [their] favor.” Thus campaigns were run to deplete such people from relief programs.

Michael Porter brought up several very interesting points regarding these inner-city neighborhoods. He spoke about the potential of these areas to “create wealth.” I agree with his point that policies should get out of the “trap of redistributing wealth,” which doesn’t create any real value, and instead work with an economic model to develop profitable businesses that would benefit the people and the communities. Porter claimed such areas had four concrete competitive advantages such as a “strategic location” in the middle of the city, high “local market demand” in an unsaturated market, “potential for integration,” and vast “human resources” of people who are eager to work. The policies of the government and other sectors mainly needed to provide a “hospitable environment” to allow for such businesses to grow. Porter was successful with some of his theories after developing the Initiative for a Competitive Inner City and opened up thousands of jobs in small businesses for people in inner-city areas.

A more recent program to help out such neighborhoods included Bloomberg’s Opportunity NYC. Not particularly effective, the program was said to award the “undeserving poor” by providing incentives for “parents who had not been sending their children to school regularly.” I don’t think any similar programs can be effective since there may always be a population to take advantage and be incentivized to do less in order to receive benefits. Something that encourages people to invest in themselves and the surrounding community may be more effective but the question remains of how to implement such a program without too much policy involvement.