Tag Archives: The Economy of Cities

Do Cities Really Want to Change?

Maybe Saskatoon doesn’t change because it is afraid of it.

The civic world is obviously more complex than this simple joke. But given the persistent failure to change the trajectory of so many places despite the enormous time and energy — not to mention vast sums of taxpayer money — spent on it, it’s worth pondering the possibilities.

Problems are problems, but they are also sometimes solutions to certain sets of questions. One of these is how to mobilize, allocate, and deploy community resources and power. Fighting decline has become the central organizing principle in many places.

As a friend of mine from the IT industry once put it regarding what he termed “rackets”: “A racket is when folks have something they complain about and commiserate about but don’t fix. Upon delving into the roots of a racket one finds that the folks don’t really want it fixed — the subject of the racket is a unifying force that if corrected will remove the common complaint and thus the unifying force. The cultural changes that would ensue from the change in practices that ‘no one wants’ are not acceptable to [the complainers]. In corporate organizational behavior, it is important to break the rackets. It is also difficult. But, I imagine, far easier in a company with some semblance of common objectives than it would be in an each-man-for-himself city.”

In short, economic struggle can be a cultural unifier in a community that people tacitly want to hold onto in order to preserve civic cohesion.

Jane Jacobs took it even further. As she noted in The Economy of Cities, “Economic development, whenever and wherever it occurs, is profoundly subversive of the status quo.” And it isn’t hard to figure out that even in cities and states with serious problems, many people inside the system are benefiting from the status quo.

They have political power, an inside track on government contracts, a nice gig at a civic organization or nonprofit, and so on. All of these people, who are disproportionately in the power broker class of most places, potentially stand to lose if economic decline is reversed. That’s not to say they are evil, but they all have an interest to protect.

Consider one simple thought experiment: If a struggling community starts booming, that would eliminate a big part of the rationale for subsidized real estate development, which constitutes the principal form of economic development in all too many places, and which benefits a clear interest group. It might also attract highly motivated, aggressive people from out of town, folks who are highly likely to agitate for better than the current inbred ways of doing business. This would inherently dilute the positions of the current powers that be.