N-AERUS Annual Seminar
Paris, 15-17 May 2003


BEYOND THE NEO-LIBERAL CONSENSUS
ON URBAN DEVELOPMENT:
OTHER VOICES FROM EUROPE AND THE SOUTH

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Fernando Murillo
CRISIS AND GLOBALIZATION: THE SEARCH FOR ALTERNATIVE MODELS FOR TERRITORIAL MANAGEMENT IN BUENOS AIRES

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Abstract

The current financial crisis in Argentina seems to be associated to the Neo-liberal policies applied during the last two decades, in the management of Buenos Aires. Different researches explain the territorial transformation of strategic areas through renewal projects; and on the other hand, the growing socio-territorial fragmentation process of vulnerable communities as results of the application of neo-liberal city management policies -Ainztein, 1998-

Since Buenos Aires assume its legal status of autonomous city, in 1996, the urban environmental plan (Plan Urbano Ambiental) has been looking to combine neo-liberal principles, such as improving the competitiveness of the city investing in strategic projects with social-environmental orientated ideas, such as providing housing for low income people, promoting public transport or creating new public green areas. The experience allows to discuss the viability of such alternative models, in the context of a deep and virulent local crisis and a global economy.

Some important shifts in the urban policies can be discover already mainly as results of the current crisis. The privatization of services, one of the basic principles of neo-liberalism, has tends to be rejected by the public opinion, as results that after the devaluation of the local currency (peso), the prices for the services increase in relation with the dollar price, while the salaries of the population remain the same. The local government looking to go back from the privatization paradigm has decide to subcontract some crucial urban services, such as garbage collection, to low income groups micro-business and not international big enterprises, as it was done before. The priority to generate employment and income for low income groups is top, at the moment, but the obstacles and resistance to implement such "alternative" ideas for privatization are still important and resisted by many sectors. The same happens with many ideas of concentrating small and micro business in strategic areas, with the idea of returning back in the idea of modern urbanism removing out of the city all industrial activities, settle in industrial parks. But in an scenario of depression, the need to protect employment move the plan to encourage industries in certain zones. However, the interest of the real estate investors to make carry out profitable business in certain zones, create an important pressure to keep the neo-liberal paradigms of urbanism in power.

Other programs targeted in housing and services for low income groups are promoted by the urban-environmental plan but with serious financial obstacles. The idea of subsidizing social housing, in the framework of urban revitalization programs, in strategic areas, like the case of " La Boca", arise many discussion around its social, urban and financial sustainability.
New finance strategies of revitalization include more and more cross subsidizing operations. Such strategies are closely associated to the ideology of the Plan to harmonize competitiveness and equity in the context of sustainability. But the implementation of such programs tends to involve public-private partnerships to make it financially viable, that in practice imply the transference of resources and business opportunities from the public to the private sector, with high social externalities and limited benefits for the low income groups. The case of the southern area, characterized by the high percentage of poor population, shows the important limitations of the " alternative model" to achieve results, under the current circumstance of Buenos Aires.

The comparative impact of such programs and projects in the context of the territorial changes transformation investigate the potential of the different approaches proposed to become a real alternative model to the unique neo-liberalism paradigm. In order to check such hypothesis, it was mapped the territorial changes of Buenos Aires according to four main typologies: Areas oriented to the global market; areas concentrating micro and small business mixed with residential uses, zones in deterioration process and neutral areas without transformation. This four typologies create a particular context defining the suitability of the different programs proposed in each particular case: Renewal, orientated to increase competitiveness, and revitalization, orientated to equity.

Being Buenos Aires a city deeply influenced by European urbanism from its early development, populated by European descendants, the role of European academics in the past and in the preparation of the present urban-environmental plan has been and is of paramount importance. The new paradigms of territorial management in the European Union, combining neo-liberal principles of city network for metropolitan development and strategic investment for increasing urban competitiveness with social welfare strategies such as subsidies, typical of traditional planning, impact profoundly in the ideas sustained by the urban environmental plan of Buenos Aires.

Firstly, the paper consider how the different programs to renew and revitalize the southern zone of the city, in the framework of the principles promoted by the Urban Development Plan, contribute an specific territorial management based on alternative model to neo-liberalism. Secondly, it is investigate how the current European experience influence the search for alternative models, in the context of the gap between north and south are crucial question included in the research. Thirdly and finally, the paper focus on the role of the crisis as a main driving force to reshape an alternative model or in the contrary, it frozen any possibility for sustainable changes.

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N-AERUS Annual workshop - Paris, 15-17 May 2003

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