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Polycentric Urban System Between State Regulation and Market Economy—The Case of Slovenia Read chapter Read first chapter

2012 | OriginalPaper | Chapter

Urban Restructuring in the Grip of Capital and Politics: Gentrification in East-Central Europe

Authors : Erika Nagy, Judit Timár

Published in: Development of the Settlement Network in the Central European Countries

Publisher: Springer Berlin Heidelberg

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Abstract

The causal relationship between global economy, neo-liberal urbanism and gentrification transforming urban landscape to an increasingly large extent has been identified in a number of studies conducted at various places all over the world. This paper strives to outline how one-time “socialist” or “controlled” gentrification in post-socialist countries has been integrated and stimulated further by the urban restructuring of global capitalism. Our international studies reviewing the revitalisation of small and medium-sized towns reveal that the now independent local policies in East-Central Europe give green light to capital, thus helping market-driven gentrification, in the same way as their counterparts in the ‘West’. Within economic, social and political interconnections, at both local and global scales, a special emphasis is given to gentrification in the towns of Veszprém, Oradea and Sopot.

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previous chapter On the Periphery of the Periphery: Demographic Trends and Development Differences in Hungarian Villages
next chapter Post-1990 Urban Brownfield Regeneration in Central and Eastern Europe: A Theoretical Concept
Footnotes
1
From among the numerous currently available definitions we have adopted Smith’s (2000, p. 294) definition. Accordingly, gentrification is ‘the reinvestment of capital at the urban centre, which is designed to produce space for a more affluent class of people than currently occupies that space.’
 
2
We relied, in part, on the results of previous empirical research and, in part, on the conclusions of an analysis of nearly three dozen interviews and a focus group discussion conducted with developers, architects, mayoral office staff, social workers, directors of various institutions, senior officers at municipalities in charge of the town and the neighbouring settlements. We would like to seize the opportunity to acknowledge the contribution of all our interviewees and also the financial support of the National Scientific Research Foundation (OTKA 043510 FT2 Hungarian project), the Bolyai Research Foundation, the National Office for Science and Technology (INNOTÁRS-Határtalan városrégiók’ project), and the INTERREG IIIB CADSES (Hist. Urban), and the SEE EU (SEE-ViTo) programmes.
 
3
2004 was the first year when towns outside regions of capital cities appeared in major transnational property agencies’ websites as potential target areas, primarily for logistics, industrial parks and retail investments.
 
4
It has been an ongoing process in Hungary since the early 1990s (Becsei 1991; Beluszky and Timár 1992; Nagy 1999; Kovács 1999; Csapó 2005; Kozma 2005), nevertheless, our interviews suggested that it was a widespread process throughout ECE.
 
5
Simultaneously, and later a further 4–5 streets.
 
6
According to the concept, the proceeds from the sales were to finance the compensation to be paid to the Gypsies.
 
7
‘Professional developers’ purchase and redevelop property and sell it for profit. ‘Occupier developers’ purchase and redevelop property, where later they live. ‘Landlord developers’ rent out rehabilitated property (Smith, 1996:69).
 
8
Restitution raised problems, such as transferring ownership to foreign citizens who had no interest in and for renovation, or just lacked capital for that; in many cases, ownership rights were disputed and taken to the court; or as a result of privatization, mixed tenant/owner-occupier blocks emerged that blocked common actions.
 
9
The two competitors, Cluj Napoca and Timisoara are both seats of NUTS II regions and were scenes of major investments in manufacturing during the last decade. Meanwhile, Oradea was targeted by less large scale projects and dominantly, by service providers (e.g. by logistic companies).
 
10
The worse are the conditions of the (historical) building the higher is the property tax. Thus, cultural heritage policy (a local initiative) is used as a device for supporting gentrification.
 
11
Professional developers are supported by providing municipal land, extending urban infrastructure and planning land use at regional level for which, municipalities with more than 200.000 inhabitants have an opportunity (Metropolitan Zone, including the area within 30 km). National housing policy that targeted primarily young couples and the poor, largely supported the process, nevertheless, the budget was heavily cut back due to the crisis.
 
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Metadata
Title
Urban Restructuring in the Grip of Capital and Politics: Gentrification in East-Central Europe
Authors
Erika Nagy
Judit Timár
Copyright Year
2012
Publisher
Springer Berlin Heidelberg
Book
Development of the Settlement Network in the Central European Countries

Print ISBN: 978-3-642-20313-8

Electronic ISBN: 978-3-642-20314-5

Copyright Year: 2012

DOI
https://doi.org/10.1007/978-3-642-20314-5_9