Lisbon After the Crisis: From Credit‐fuelled Suburbanization to Tourist‐driven Gentrification

This article examines Lisbon's post‐crisis transition from a once dominant process of suburban expansion enabled by abundant credit to one of ongoing gentrification of its historic centre. In my research, I draw on quantitative and qualitative data to illustrate the remarkable growth of the metropolitan area's population and dwelling stock until the global financial crisis—which affected the Portuguese economy in the course of a process of financialization that relied heavily on the housing industry—and the intensity of urban rehabilitation in subsequent years. However, there is evidence that the latter has not halted nor reduced the loss of long‐term residents in the historic centre, as tourists and other international gentrifiers occupy the upgraded dwelling stock amid an escalation of house prices and rents. The specific contribution of this research lies in the link that it establishes between Lisbon's ongoing process of inner‐city gentrification and the lack of suburban expansion after 2007. By showing that the credit crunch triggered a shift in the geographic location of real‐estate capital that materialized in a new urban development model, this research adds an empirical layer to the study of the spatial effects of the crisis and contributes to the literature on the subsequent restructuring of southern European housing markets.     

Suburbanization of the Self: Religious Revival and SocioSpatial Fragmentation in Contemporary Poland

In this article, I trace the elective affinity between planetary suburbanization and emergent forms of radical religiosity. I show how the centuries‐long spatial hegemony of the Catholic Church in Poland has recently been undermined by the ‘fundamentalist' broadcaster Radio Maryja—the bellwether of the Polish right‐wing nationalist resurgence. I describe the twentieth‐century suburbanization of both the state and Catholicism in Poland, supported by an analysis of a village‐cum‐suburb in one of Poland's largest agglomerations. I show how the latest wave of suburbanization, triggered by Poland's opening up to global flows of capital in 2004, ran parallel to the emergence of a ‘post‐secular', ‘individual' and ‘intellectual' strain of faith. I tie these in with the life stories and changes in gender and labour regimes of two key informants. I also show that the surge of right‐wing nationalism should not be understood as a backlash against neoliberalization, but that it represents instead a project of regime change and new elite formation.     

Financialization of Housing in Brazil: New Frontiers

The financialization of housing has been increasingly identified as an important driver of social and economic change in contemporary capitalism. Focusing on the Brazilian context, this article considers the extent to which recent changes in housing regulations, policies and markets confirm or challenge narratives about the financialization of housing in the international academic debate. I argue that while many of the trends stressed in the literature are apparent, more extreme processes of financialization within the Brazilian housing sector remain limited––not only because of institutional and regulatory constraints, path dependence or political resistance, but also because of fundamental structural conditions of Brazil's position as a peripheral economy. Three different but mutually reinforcing processes are scrutinized in order to evaluate the financialization of housing and its limits in Brazil: the re‐regulation of the real estate financial sector initiated in the 1990s; the changing funding patterns among real estate companies since the mid‐2000s; and the increasing commodification of housing induced by a large‐scale and heavily subsidized housing program launched in 2009.     

Negotiating ‘solidarity’ and internationalism: the response of Polish trade unions to migration

In the context of massive outward migration after Poland's accession to the EU in 2004, this article explores the possibilities for cross‐border collaboration by Polish trade unions. The findings are based on interviews with the two main trade union/trade union federations, Solidarity and Ogolnopolskie Porozumnie Zwi?zków Zawodowych: All‐Poland Alliance of Trade Unions, at national, regional and sectoral levels. Examining the issues and challenges faced by Polish trade unions in terms of loss of membership and social capital, the article also evaluates the significance of Poland's status as a country of some inward migration. It is argued that cross‐border trade union collaboration has become an even more urgent project as the economic crisis intensifies competition in the labour market and increases the potential for xenophobia.     

‘Asset Price Urbanism’ and Financialization after the Crisis: Ireland's National Asset Management Agency

The impact of the global financial crisis on cities is the subject of an important body of research. One aspect which has received surprisingly little attention is the urban dimension of government interventions in the financial sector, particularly given the integration of finance and real estate is widely understood as a key driver of the crisis. This article examines one such intervention, the National Asset Management Agency (NAMA), a ‘bad bank' established by the Irish government to acquire and manage ‘toxic' real estate loans from the banking sector. Although envisaged as an intervention in the financial sector, the relationship between finance and real estate is such that the agency has a significant impact on urban development and, at the same time, that the management of urban space plays a key role in resolving the financial crisis and restoring the flow of credit in the economy. The article develops the concept of ‘asset price urbanism' to capture the way in which urban space and its relationship to finance is managed to bolster the relationship between real estate and credit, and theorizes this as a significant aspect of contemporary accumulation. The article thus makes an empirically grounded conceptual contribution to literature on the urban dimension of financialization.     

Diversification by Urbanization: Tracing the Property‐Finance Nexus in Dubai and the Gulf

This article explores the role of liberalized real estate markets in shaping financial‐sector development in the Arab Gulf region. Since 2001, record oil revenues and the inflow of repatriated wealth into the region have generated immense demand for new, productive destinations for surplus capital. Gulf Cooperation Council states have subsequently undergone rapid growth that is intimately tied to the regulatory transformation of urban real estate markets and the circulation of surplus capital from oil rents to the ‘secondary circuit’ of the built environment. With an emphasis on the city of Dubai, we employ the notion of diversification by urbanization to trace the re‐regulation of real estate markets and highlight how these strategies have subsequently shaped Gulf financial markets. Through an examination of the impacts of real estate mega‐project development on local banking credit, equities and Islamic financial markets, we reframe recent urbanization in the region as a process of financial re‐engineering, and identify the emergence of capital groups whose accumulation activities are tightly connected to both the real estate and financial circuit.     

How Did Finance Capital Infiltrate the World of the Urban Poor? Homeownership and Social Fragmentation in a Spanish Neighborhood

When working‐class localities in developed countries are in question, social fragmentation is often analyzed along ethnic lines. Instead, this article claims that it is more critically fruitful to explore fragmentation in terms of people's relations with the state and different forms of capital. It does this by considering housing in Spain as a key resource that connects state policies both with the forms of reproduction and (dis)organization of the disadvantaged, and with the development of real estate and finance capital. First, it unfolds the historical formation of the Spanish ‘homeownership culture’ and the construction–finance complex. Second, starting from an in‐depth ethnography of a peripheral neighborhood in Barcelona, it emphasizes the embeddedness of recent financialization in the livelihood strategies of poor households. Finally, it shows how the process led to a commodification and erosion of those social relations on which it partially depended, thereby exposing problems for class reproduction and fracture lines among the urban poor.     

Grabbed Urban Landscapes: Socio‐spatial Tensions in Green Infrastructure Planning in Medellín

Cities confronted with unsustainable development and climatic changes are increasingly turning to green infrastructure as an approach for growth and climate risk management. In this context, recent scholarly attention has been paid to gentrification, real‐estate speculation and resident displacement in the context of sustainability and green planning in the global North. Yet we know little about the environmental‐justice implications of green infrastructure planning in the context of self‐built settlements of the global South. To what extent do green infrastructure interventions produce or exacerbate urban socio‐spatial inequities in self‐built settlements? Through the analysis of a greenbelt project, an emblematic case of green infrastructure planning in Medellín, we argue that, as the Municipality of Medellín is containing and beautifying low‐income neighborhoods through grabbing part of their territories and turning them into green landscapes of privilege and pleasure, communities are becoming dispossessed of their greatest assets—location, land and social capital. In the process, community land is transformed into a new form of aesthetically controlled and ordered nature for the middle and upper classes and for tourists. By contrast, communities’ planning alternatives reveal how green planning can better address growth and climate risks in tandem with equitable community development.     

Demolishing the Present to Sell off the Future? The Emergence of ‘Financialized Municipal Entrepreneurialism’ in London

This article introduces a new mode of urban entrepreneurialism in London through a study of the state‐executed, speculative development and financialization of public land. In response to an intensifying housing crisis and austerity‐imposed fiscal constraints, municipalities in London are devising entrepreneurial solutions to deliver more housing. Among these ‘solutions’ can be found the early signs of the state‐executed financialization of public housing in the UK with the use of speculative council‐owned special purpose vehicles (SPVs) that replace existing public housing stock with mixed‐tenure developments, creating ambiguous public/private tenancies that function as homes and the basis for liquid financial assets. Drawing together parallel literatures on the financialization of urban governance and housing, and combining these with original empirical research, we situate these developments in contrast to earlier modes of governance, identifying a distinct mode of entrepreneurial governance in London: financialized municipal entrepreneurialism. The local state is no longer merely the enabler—limited to providing strategic oversight of the private sector—but financializes its practice in a reimagined commercialized interventionism, as property speculator. This article concludes that while the architects of this new mode of entrepreneurialism extol the increased capacity and control it provides, any such gains must be set against longer‐term financial, democratic and political risks.     

Food Deserts and Real‐Estate‐Led Social Policy

Since the early 2000s in the United States, food deserts—neighborhoods in which households have limited geographic access to full‐service supermarkets or grocery stores— have become conceptually central in public policy research on food security. Analyzing this phenomenon from a ‘policy mobility’ perspective, this article traces the food desert's emergence in policy discourse, locating it within an entrepreneurial social policy paradigm that privileges real estate development over direct economic relief. In the context of property‐led anti‐poverty efforts, the identification and mapping of food deserts catalyzes a logic that leads to subsidy to grocery store development in low‐income areas (or ‘fresh food financing’), while at the same time officials are cutting programs such as the Supplemental Nutrition Assistance Program (food stamps), which directly supplements household food budgets. The article contributes to widening critical discussion of the food desert paradigm and the policy interventions with which it is associated. It calls on urban researchers and practitioners to reframe discussions of food access and nutrition around the shortage of basic income and a need for higher wage floors.     

New Geographies of Residential Capitalism: Financialization of the Turkish Housing Market Since the Early 2000s

The post‐2001 financial crisis era in Turkey gave rise to twin booms in housing construction and credit markets, both of which suffered from the subsequent debt crisis. The financial transformation of the economy in conjunction with state‐led urban legislation reform had significant effects on the housing market in terms of commodification of housing, countrywide construction activities and substantial increases in household debt and construction company loans. The changing role and function of the state as a direct provider of housing can be regarded as actually existing neoliberalism providing favourable conditions for financialization, as it ushered in the commodification of housing. The Turkish government, together with the government‐backed housing agency, metropolitan municipalities and publicly owned real‐estate investment company, has been active in nationwide housing construction and urban regeneration projects. This article argues that there is a lack of synchrony between the commodification of housing and the financialization of the household sector owing to the institutional setting of the mortgage system and structural macroeconomic problems. Rather, housing commodification has been accompanied by the financialization of the corporate sector through a steep rise in the external debt burden of construction companies.     

Three Dimensions of Capital Switching within the Real Estate Sector: A Canadian Case Study

This article analyzes capital switching practices in the real estate development sector. The leading practitioners in Canada, the Canadian‐based real estate companies, are the subject of this inquiry. The tradability and divisibility of real estate properties enhance the growing similarity between real estate properties and other financial assets. It is appropriate to talk about portable real estate portfolios because companies constantly rearrange their property composition. This article emphasizes the ‘three dimensions of capital switching’. These dimensions unpack significant corporate considerations in the deployment and redeployment of capital, namely, mode of operation, property type and location. With respect to office development, the trajectory of the major real estate companies over the last 20 years has accommodated two notable shifts. First, these companies have focused on larger and newer properties, disposing of their smaller and older assets. Second, they have funneled a growing share of their capital assets into the top‐tier cities of the Canadian urban system, reducing investment in other metropolitan areas and disinvesting in the small‐to‐medium sized cities.     

Women managers in Poland and the United States: a comparative analysis

This paper compares women managers in Poland and the United States in the context of their contrasting political and economic systems—the socialism of Central and Eastern Europe and the liberal democratic tradition of the West. We discuss the two political philosophies and their impact on gender roles and labour markets, and then compare this theory to the reality of Poland's transition. Finally, this background is used to analyse differences between Polish women managers and their American counterparts.     

A Real‐Assets Model of Economic Crises: Will China Crash in 2015?

Loosely derived from Henry George's theory that land speculation creates boom‐bust cycles, a real‐assets model of economic crises is developed. In this model, land prices play a central role, and three hypothesized mechanisms are proposed by which swings of land prices affect the entire economy: construction on marginal sites, partial displacement of circulating capital by fixed capital investment, and the over‐leveraging of bank assets. The crisis of 2008 is analyzed in these terms along with other examples of sudden economic contractions in U.S. history, recent European experience, and global examples over the past 20 years. Conditions in China in 2014 are examined and shown to indicate a likely recession in that country in 2015 because its banks are over‐leveraged with large‐scale, under‐performing real estate loans. Finally, alternative methods of preventing similar crises in the future are explored.     

Financing China's Suburbanization: Capital Accumulation through Suburban Land Development in Hangzhou

China's rapid urbanization has resulted in substantial suburbanization over recent decades. However, limited research has been conducted into how land‐based capital is mobilized, accumulated and circulated within the circuits of the capital accumulation process, or how land‐based capital is used to finance massive investment in suburbanization by China's local governments, especially since the trend in land commodification during the 2000s. We examined the capital switching experience in the city of Hangzhou and our findings indicate that local governments have attempted to simultaneously strengthen housing development and industrial growth. In contrast to experiences of suburbanization in Western countries, a real estate boom during the early days of suburbanization in Hangzhou was not necessarily the result of diversion of excess capital from over‐accumulated investments in the manufacturing industry. Rather, it was a consequence of capital accumulation facilitated by land‐reserve systems and land‐based financing of infrastructure orchestrated by local government. Local governments and their affiliated land‐reserve centers and local investment platforms have acted as entrepreneurs by using profits from suburban property development to subsidize industrial investments and fund the infrastructure‐supported expansion of outer suburbs. These findings highlight the potential risks of land‐centered accumulation and provide important reflections upon the theory of David Harvey in the context of urban China.     

Residential Enclosure,Power and Relationality: Rethinking Sociopolitical Relations in Southeast Asian Cities

As in many other areas around the globe, enclosed residential spaces have proliferated in Southeast Asia since the 1990s. Recent publications have presented such gated communities as ‘porous enclaves', implying multiple socio‐spatial dynamics of movements through gates and walls. However, the enclave model does not suffice for analyzing the relational dynamics generated by enclosed residential estates. The concept of ‘ecotonal space' and social geography are used to show, in the case of Cambodia's capital Phnom Penh, that the enclosure and its borders are producers and products of multiple social, spatial, economic and political relations, both symbolic and material. Property developers assert their position as an emerging elite in the city's society and politics, a process based on different types of everyday relations they have with the inhabitants of their residential estates and territorial institutions. The enclosed residential estate can serve as a resource for deploying new power relations. Consubstantial with the neopatrimonial nature of the Cambodian economy and politics, this process is a response to the opacity and uncertainty of real estate markets and urban development.     

Conflict and Commensuration: Contested Market Making in India's Private Real Estate Development Sector

Newly constructed high‐rise housing and malls, soaring land prices and violent confrontations over land testify to the massive urban transformations underway in India today. Having secured an expanded role in urban development from the state, the private sector helps to shape urban restructuring; however, few scholars have studied private real estate development in India or revealed the factions that underlie an analytically unitary ‘private sector’. This article sheds light on private sector real estate industry members' efforts to develop an internationally familiar real estate market in India. Foreign investors and consultants have been collaborating with Indian real estate developers, who are now active intermediaries in the flow of capital into India. Drawing on participant observation and data from interviews, this article finds, however, that foreign financiers and Indian developers struggle to form partnerships on account of differences on issues like land valuation. The outcome of such conflicts will define the contours of Indian real estate development and its integration with international markets in the future.     

Engineering the Financialization of Urban Entrpreneurialism: The JESSICA Urban Development Initiative in the European Union

Urban entrepreneurialism and neoliberal urban governance are assuming new forms under finance‐dominated accumulation. We examine and contribute to theorizing the mechanisms through which urban governance is financialized, taking as a case study JESSICA, one of the European Union's initiatives to implement an ‘urban sensitive’ policy for sustainable and integrated development. Like other initiatives promoting financialization, JESSICA deploys the logic of finance to select and fund urban social initiatives and development projects on the basis of their potential return on investment (ROI). Understanding this process requires placing questions of political economy—how urban governance is shaped by the broader political‐economic context—with questions of governmentality—how stakeholders are enrolled in and come to take for granted new governance initiatives. Following the multi‐scalar institutional infrastructure is crucial to understanding how this works. Taking a relational multi‐scalar approach, we trace how changes at the supranational scale filter down to shape urban policy selection and performance in Sofia, Bulgaria, where we document how ROI calculations conflict with social welfare priorities. Contrasts between the trajectory of financialization of urban governance in the European Union and the United States demonstrate how this is geographically variegated, shaped by the broader context/conjuncture within which such financialization is embedded.     

Planning à la Carte: The Location Patterns of Gated Communities around Buenos Aires in a Decentralized Planning Context

The spectacular growth of gated communities around Latin America’s largest cities has been widely noted. In Buenos Aires, after the upgrade of the northern highway in the 1990s, the number of gated communities along the road more than tripled, reaching 500 by the year 2001. Yet, the geographic distribution of these communities was uneven, with the majority concentrated in municipalities with the highest percentage of poor households. Why, given similar land prices, land availability, access to infrastructure and distance to the city’s core, did developers build gated communities in the poorest municipalities? This article argues that the decentralization of planning controls contributed to these patterns of distribution. While wealthier municipalities used this prerogative to enforce tighter controls on land use, the less affluent ones relied on their capacity to modify planning codes to lure real estate developers. Unlike well‐serviced municipalities, who perceived the gated communities’ privatization of services as a potential danger to their fiscal tax base, the municipalities that lacked urban services in most of their territory saw gated communities as a fast and inexpensive way of increasing local economic activities in less productive lands. As a consequence, after decentralization of planning capacities, the development of gated communities clustered in less affluent municipalities, hence deepening the social polarization in these jurisdictions.     

‘Post‐Third‐World City' or Neoliberal ‘City of Exception'? Rio de Janeiro in the Olympic Era

This article considers processes of urban development within the context of mega‐event preparations in Rio de Janeiro. We begin with a brief overview of these development processes, highlighting their connections to political and economic change in recent years. Proponents of these mega‐event‐led initiatives argue that Rio is undergoing a period of inclusive growth and integration: a perspective we call here a ‘post‐Third‐World city' narrative of urban renewal. Critics, however, contend that urban officials are harnessing mega‐events (e.g. the 2014 World Cup and the 2016 Olympic Games) to push forward a neoliberal agenda of socially unjust policies benefiting the interests of capital and marginalizing the city's poor and especially its favelas (i.e. the ‘city‐of‐exception' thesis). In this article we explore the insights of these two perspectives and consider why they have grown popular in recent years. Though we side generally with the city‐of‐exception thesis, we argue that important geographic and historical particularities must also be accounted for. Without carefully situating analytical perspectives empirically—in particular, cases in which theoretical models are drawn from European and North American contexts—urban researchers risk concealing more than they reveal in analyses of rapidly developing countries like Brazil.