The Dutch sociologist paints a disturbing picture of what the current surge of international capital is doing to cities — and who benefits
From mid-2013 to mid-2014, writes Saskia Sassen, corporate purchases of existing properties exceeded $600 billion in the top 100 cities, and $1 trillion a year later – and this figure includes only major acquisitions. She describes a major surge of capital coming into real estate from corporate investors:
I want to examine the details of this large corporate investment surge, and why it matters. Cities are the spaces where those without power get to make a history and a culture, thereby making their powerlessness complex. If the current large-scale buying continues, we will lose this type of making that has given our cities their cosmopolitanism.
Indeed, at the current scale of acquisitions, we are seeing a systemic transformation in the pattern of land ownership in cities: one that alters the historic meaning of the city. Such a transformation has deep and significant implications for equity, democracy and rights.
A city is a complex but incomplete system: in this mix lies the capacity of cities across histories and geographies to outlive far more powerful, but fully formalised, systems – from large corporations to national governments. London, Beijing, Cairo, New York, Johannesburg and Bangkok – to name but a few – have all outlived multiple types of rulers and of businesses.
In this mix of complexity and incompleteness lies the possibility for those without power to assert “we are here” and “this is also our city”. Or, as the legendary statement by the fighting poor in Latin American cities puts it, “Estamos presentes”: we are present, we are not asking for money, we are just letting you know that this is also our city.
It is in cities to a large extent where the powerless have left their imprint – cultural, economic, social: mostly in their own neighbourhoods, but eventually these can spread to a vaster urban zone as “ethnic” food, music, therapies and more.
All of this cannot happen in a business park, regardless of its density – they are privately controlled spaces where low-wage workers can work, but not “make”. Nor can this happen in the world’s increasingly militarised plantations and mines. It is only in cities where that possibility of gaining complexity in one’s powerlessness can happen – because nothing can fully control such a diversity of people and engagements.
Those with power to some extent do not want to be bothered by the poor, so the model is often to abandon them to their own devices. In some cities there is extreme violence by police. Yet this can often become a public issue, which is perhaps a first step in the longer trajectories of gaining at least some rights. It is in cities where so many of the struggles for vindications have taken place, and have, in the long run, partly succeeded.
But it is this possibility – the capacity to make a history, a culture and so much more – that is today threatened by the surge in large-scale corporate re-development of cities.
Read the full article: