N-AERUS Annual Seminar Paris, 15-17 May 2003 BEYOND THE NEO-LIBERAL CONSENSUS ON URBAN DEVELOPMENT: OTHER VOICES FROM EUROPE AND THE SOUTH BACKGROUND PAPER

BACKGROUND PAPER OF THE SEMINAR: BEYOND THE NEO-LIBERAL CONSENSUS ON URBAN DEVELOPMENT: OTHER VOICES FROM EUROPE AND THE SOUTH The Network-Association of European Researchers on Urbanisation in the South (N-AERUS) was formed in 1996 by a multi-disciplinary group of European researchers and experts on urban development. Creation of N-AERUS was based on three beliefs: Cities and towns are increasingly contributing to the general development process; Any intervention has to take into account the social dimension of urban development and the cultural diversity of urban areas; European research capacities and experiences in the urban sector are presently under-utilised. During the years 1999-2001, with the support of the European Science Foundation, significant progress has been made in the evaluation of the diversity and the potential of European research institutions regarding urban development policies and North-South co-operation in the urban sector. In international meetings, analysis of the concepts and paradigms of urban management in the context of developing countries (Venice, 1999), critical approaches to the concept of sustainable urban development (Geneva, 2000), and analysis of responses to illegality and informality in human settlements (Leuven, 2001) have emphasised the potential for innovative European approaches to urban development co-operation policies with developing countries. One of the paradoxical lessons learnt from this collective initiative is that European research on urban development in the South is increasingly dependent on neo-liberal concepts, models and objectives, in a global context where these neo-liberal orientations have shown their limits, and where the gap between discourse and practice regarding key issues such as social justice, governance, sustainability and poverty alleviation is steadily widening. Yet, despite their rich and diverse experience regarding urban development management and co-operation with developing countries, European research institutions seem unable to propose alternative models, and are increasingly tending to hold to hypothesis and methodologies defined and imposed by international finance institutions under the influence of leading Northern bilateral co-operation and aid agencies. So far, European Union institutions involved in co-operation programmes with the South have shown limited interest in urban issues of developing countries. In the name of consensus, their co-operation strategies reveal a high level of dependency on neo-liberal approaches. Most of their co-operation programmes are based implicitly on neo-liberal urban development models which are a mixture of poorly analysed success stories and ideological statements. However, cultural and urban diversity are systematically under-valued. More often than not, legitimate criticisms about the counterproductive role and inefficiency of government administrations have been turned into arguments against any form of State intervention, thus paving the way for accelerated deregulation programmes whose efficiency is often questionable and whose effectiveness is usually assumed. It is clear that the constant repetition of the same statements about privatisation, deregulation and decentralisation regarding urban management have had series of negative impacts. Correcting measures and safety net programmes cannot dissimulate any longer the widespread failure of approaches based exclusively on neo-liberal premises. For political, organisational, administrative and financial reasons, European research institutions are increasingly dependent on thematic orientations and methodologies based on these models. This jeopardises the emergence of an independent research capacity in Europe that can best serve the formulation and implementation of development policy. Therefore, N-AERUS proposes to focus its 2002 annual seminar on the neo-liberal consensus on urban development, placing emphasis on research from Europe and the South that is creating new options. The seminar intends to draw the attention of European Commission institutions as well as of bilateral European co-operation and aid agencies to alternatives to neo-liberal approaches to urban development in Europe and in the South. The following questions will be debated in the seminar: What are the main characteristics of neo-liberal hypothesis and paradigms regarding urban development and management in the South that need to be challenged? How strong are the empirical and/or ideological foundations on which these hypotheses have been defined? How have neo-liberal approaches to urban development and management been evolving during the last decade: topics, means, resources, co-operation procedures and policies? What have been the main impacts of economic liberalisation on urban development, giving particular attention to the provision of housing and basic services. What can be concluded from analysis of the contradictory objectives of the two flagship programmes promoting liberalisation policies in the urban sector: good governance and poverty alleviation. Why are European bilateral aid agencies usually unable to transfer their own countries' experiences and practices regarding urban management in their co-operation programmes with developing countries? To what extent do the European Commission approaches to urban development in the South differ from those promoted by international finance institutions and development aid agencies and from those wanted by cities and towns of the South? What alternative approaches are emerging from European research, especially that performed with Southern partners? What are the topics that need to be researched and the research methods to be used in order to further develop these alternatives or to create new ones? How does interaction between international finance institutions, development aid agencies, and research institutions in Europe and the South shape the identification of research topics and the implementation of research programmes on urban issues in the South? What are the expectations of research institutions in the South towards co-operation with European Commission and European research institutions?

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