Rethinking Development: Rethinking Development: Any role Any role for Cities?for Cities?

Saskia SassenSaskia SassenColumbia UniversityColumbia University

www.saskiasassen.comwww.saskiasassen.com

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The The UnescoUnesco Project on Development:Project on Development:Opening up a strategic space for Opening up a strategic space for developing new categories, instruments , developing new categories, instruments , variables through which to understand variables through which to understand ““developmentdevelopment””. .

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The analysis and the data presented here The analysis and the data presented here are developed fully in Saskia Sassen are developed fully in Saskia Sassen ““A A Savage Sorting of Winners and Losers: Savage Sorting of Winners and Losers: Contemporary Versions of Primitive Contemporary Versions of Primitive AccumulationAccumulation”” GlobalizationsGlobalizations, March, March––June June 2010, Vol. 7, Nos. 12010, Vol. 7, Nos. 1––2, pp. 232, pp. 23––50.50.

.What are the norms wired into .What are the norms wired into current current ““developmentdevelopment””

Norms are wired into many of the Norms are wired into many of the processes we call development, and since processes we call development, and since the 1980s , these norms are often about the 1980s , these norms are often about privileging certain sectors (finance, for privileging certain sectors (finance, for instance) and certain notions about what is instance) and certain notions about what is growth. growth.

The resultThe result

A sharp emphasis on modes of growth A sharp emphasis on modes of growth that produce extreme inequality, an that produce extreme inequality, an impoverishment of the middle classes, and impoverishment of the middle classes, and a sharp growth of the poor in the a sharp growth of the poor in the worldworld…………

How does the city fit in?How does the city fit in?

How does the city help to constitute How does the city help to constitute processes that have new types of norms processes that have new types of norms and ethics wired into them.and ethics wired into them.Wired into the actual process Wired into the actual process –– not just not just depending on leaderships insisting on depending on leaderships insisting on them, talking about them. them, talking about them. Problem is in good part structural Problem is in good part structural ––what is what is seen as seen as ““developmentdevelopment””, growth is the , growth is the problem.problem.

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It is often thought that It is often thought that ““development development ““ is is the the ““problemproblem”” of poor countries. I think this of poor countries. I think this is incorrect. Our current model of is incorrect. Our current model of development is producing what we might development is producing what we might call call ‘‘underdevelopmentunderdevelopment’’ and we then call and we then call for for ‘‘developmentdevelopment’’. A high GDP growth rate . A high GDP growth rate is seen as automatically good. But the is seen as automatically good. But the question is what kind of distribution and question is what kind of distribution and what content.what content.

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The interaction of structural processes, The interaction of structural processes, policy and distributive outcomes can be policy and distributive outcomes can be illustrated with data for the US.illustrated with data for the US.GRAPH 1. Shows how Keynesian policy GRAPH 1. Shows how Keynesian policy made a difference from 1942 to 1987: made a difference from 1942 to 1987: reduced the % of national income taken in reduced the % of national income taken in by top 10% of earners. This meant: it by top 10% of earners. This meant: it allowed a middle class to grow.allowed a middle class to grow.

Income Share of top 10% earners, Income Share of top 10% earners, USA 1917USA 1917--20052005

*Income is defined as market income but excludes capital gainsSource: Mishel, L. 2004. “Unfettered Markets, Income Inequality, and Religious Values.” Viewpoints. May 19, 2004. Economic Policy Institute. Retrieved July 26, 2008 [ www.epi.org/content.cfm/webfeatures_viewpoints_moral_markets_presentation.]

% Growth in After% Growth in After--Tax Income, Tax Income, USA 1979USA 1979--20072007

Is the subIs the sub--prime mortgage crisis prime mortgage crisis also a logic of expulsion?also a logic of expulsion?

9 millions households lost their homes to 9 millions households lost their homes to foreclosures from 2006 to 2010 (USA)foreclosures from 2006 to 2010 (USA)Hundreds of neighborhoods devastated: Hundreds of neighborhoods devastated: empty homes, abandoned gardens, empty homes, abandoned gardens, streets and public spaces.streets and public spaces.Not clear what this empty land will be used Not clear what this empty land will be used for.for.

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Rate of Subprime Lending by Race in Rate of Subprime Lending by Race in New York City, 2002 New York City, 2002 -- 20062006

2002 2003 2004 2005 2006White 4.6% 6.2% 7.2% 11.2% 9.1%Black 13.4% 20.5% 35.2% 47.1% 40.7%Hispanic 11.9% 18.1% 27.6% 39.3% 28.6%Asian 4.2% 6.2% 9.4% 18.3% 13.6%

Source: Furman Center for Real Estate & Urban Policy, 2007. [http://furmancenter.nyu.edu/documents/FurmanCenterHMDAAnalysis.pdf ] Retrieved 26 July 2008.

Analytic Tactics.Analytic Tactics.

To address the challenge of this To address the challenge of this conference, conference, A. Recognizing that conditions we might A. Recognizing that conditions we might think are given, or functions of some think are given, or functions of some superior factor, or inevitable, are actually superior factor, or inevitable, are actually mademadeB. The importance of B. The importance of destabilizingdestabilizing what what have become stabilized meaningshave become stabilized meanings

A. The making of histories

An analysis that seeks to recover how a condition, a system, a subject, were made. The diverse elements that got assembled to make that condition or that subject. Example: Immigration is partly shaped by the immigration spaces made through policy, vested interests

The current period and its multiple immigration spaces

The spaces (institutional, ideational, tactical) for producing the migrant subject can be very diverse: E XAMPLES:- the new transnational class of professionals - the contract-labor worker entering for seasonal work under specific short-term conditions- the business-visa immigrant - the family-dependent immigrant- the green card immigrant- the high-tech visa worker

B. Making stable meanings B. Making stable meanings unstableunstable

ExamplesExamplesPowerlessness/complexityPowerlessness/complexityRemittances: Usually understood as $ Remittances: Usually understood as $ received by poor countries from their received by poor countries from their emigrants in rich. When we take a global emigrants in rich. When we take a global perspective on main recipient countries of perspective on main recipient countries of remittances we see that 5 rich countries remittances we see that 5 rich countries are among the top 10 recipients.are among the top 10 recipients.

Billions of dollars

Billions of dollars

1. India 21.7 11. Serbia 4.12. China 21.3 12. Pakistan 3.93. Mexico 18.1 13. Brazil 3.64. France 12.7 14. Bangladesh 3.45. Philippines 11.6 15. Egypt, Arab Rep. 3.36. Spain 6.9 16. Portugal 3.27. Belgium 6.8 17. Vietnam 3.28. Germany 6.5 18. Colombia 3.29. United Kingdom 6.4 19. United States 310. Morocco 4.2 20. Nigeria 2.8

Source: Author’s Calculations Based on IMF BoP Yearbook, 2004, and World Bank Staff estimates.

Top 20 remittance-recipient countries, 2004 (US$ billions)

The City.The City.

A space for the making of the social, the A space for the making of the social, the political, the economic, political, the economic, And a lens to understand larger processesAnd a lens to understand larger processesTo address some of the larger normative To address some of the larger normative questions organizing this congress, we questions organizing this congress, we need to understand not just the rapid need to understand not just the rapid growth of the urban population but also growth of the urban population but also some of the sources of this growth some of the sources of this growth

One case: people expelled from One case: people expelled from their land and villagestheir land and villages

massive expulsion of small farmers, whole massive expulsion of small farmers, whole small villages, small rural based factories. small villages, small rural based factories. What we refer to as What we refer to as ““land grabs: 70 mil land grabs: 70 mil hectares of land bought/leased by foreign hectares of land bought/leased by foreign firms (incl. financial) and governmentsfirms (incl. financial) and governments……Mining: long after it is done leaves a Mining: long after it is done leaves a poisoned earth and water behind. poisoned earth and water behind. Active making of displaced/Active making of displaced/””surplussurplus””peoples peoples ––where can they go? To citieswhere can they go? To cities……

The City in the Project of The City in the Project of Rethinking DevelopmentRethinking Development

The complexity of the city makes it also a The complexity of the city makes it also a critical space for understanding and critical space for understanding and implementing some of the aim of implementing some of the aim of rethinking development of this rethinking development of this conference.conference.

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What are some of the features of the city What are some of the features of the city that might help in developing a new that might help in developing a new approach to development, to constitute approach to development, to constitute processes that have new types of norms processes that have new types of norms and ethics wired into them and ethics wired into them –– not just not just depending on leaderships insisting on depending on leaderships insisting on them, talking about them.them, talking about them.

Makes visible the making of Makes visible the making of inequalityinequality

The city makes the juxtaposition of high The city makes the juxtaposition of high growth , high price redevelopment of growth , high price redevelopment of certain areas visible, and the certain areas visible, and the displacement/impoverishment.displacement/impoverishment.In this process also makes visible the In this process also makes visible the people and modest shops displaced by people and modest shops displaced by luxury developmentluxury development

Urban Politics. The Right to the Urban Politics. The Right to the CityCity

In this visibility lies a politics, or at least the In this visibility lies a politics, or at least the possibility of a politics. It is one element. possibility of a politics. It is one element. TahirTahir Square, Tel Aviv and other Israeli Square, Tel Aviv and other Israeli cities. Earlier the anticities. Earlier the anti--gentrification gentrification struggles.struggles.In poor areas: Urban Violence as a form of In poor areas: Urban Violence as a form of speechspeech

Making presenceMaking presence

The city gives the possibility to the poor The city gives the possibility to the poor and disadvantaged to become present to and disadvantaged to become present to power, and, as important, to each other. power, and, as important, to each other. The making of a multitude. The making of a multitude. Making presence as a form of politics.Making presence as a form of politics.

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New social media, the power to convokeNew social media, the power to convoke——a poor powerless person can also convoke a poor powerless person can also convoke a crowd through social media.a crowd through social media.This takes on its full magnitude in cities, This takes on its full magnitude in cities, more so than rural areas..more so than rural areas..

The Urbanizing of Global The Urbanizing of Global Governance ChallengesGovernance Challenges

when we consider the fact that most global when we consider the fact that most global governance challenges become concrete governance challenges become concrete in cities, we can say that changing some in cities, we can say that changing some of the core norms embedded in current of the core norms embedded in current development models, must also take place development models, must also take place in cities. in cities.

APPENDIXAPPENDIX

Here some slides about expulsions from Here some slides about expulsions from rural areas that feed urban growth.rural areas that feed urban growth.We cannot simply focus on urban growth We cannot simply focus on urban growth and not consider these expulsions of and not consider these expulsions of millions of people from smallmillions of people from small--holder holder farming, small rural based factories, whole farming, small rural based factories, whole villages, etc. (see articles on my website villages, etc. (see articles on my website www.saskiasassen.comwww.saskiasassen.com

Shift from National Territory to Shift from National Territory to Global Commodity/JurisdictionGlobal Commodity/Jurisdiction

The Repositioning of Territory in the The Repositioning of Territory in the Global Division of Functions.Global Division of Functions.Making alternative jurisdictions: going Making alternative jurisdictions: going beyond older forms of extraterritoriality.beyond older forms of extraterritoriality.Making parallel geopolitical circuits.Making parallel geopolitical circuits.

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One instanceOne instance

From 2006 to 2010: 70million hectares of From 2006 to 2010: 70million hectares of land in land in AfriAfri ,,LatAmLatAm, Cambodia, Ukraine , Cambodia, Ukraine bought/leased by rich bought/leased by rich govts,firms,fingovts,firms,fin firmsfirmsThe land is now more valued than the The land is now more valued than the people or activities on it people or activities on it The active making of surplus populationsThe active making of surplus populationsNovel assemblage of Novel assemblage of Territory/Authority/RightsTerritory/Authority/Rights

A second instance: MiningA second instance: Mining

Displaces people, small holder agriculture, Displaces people, small holder agriculture, smsllsmsll factories, villages directly and factories, villages directly and indirectly through the poisoning of air, indirectly through the poisoning of air, water and earth. water and earth.

Colombia: Anglo Gold Ashanti Colombia: Anglo Gold Ashanti

..versus the people of Tolima..versus the people of TolimaOpen mining Open mining ––which will take 250,000 which will take 250,000 liters of water for one hour of work.liters of water for one hour of work.Wants to mine there for 15 yearsWants to mine there for 15 yearsThe area (Potosi) is a natural forest The area (Potosi) is a natural forest reserve, that includes a watershed reserve, that includes a watershed ecosystem protected by law ecosystem protected by law Area has 161 water springs (sources ) Area has 161 water springs (sources )