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Linking cultural industries and regeneration : a policy framework based on lessons from Europe Cain, Helen 2004

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LINKING CULTURAL INDUSTRIES AND REGENERATION: A Policy Framework Based on Lessons From Europe by H E L E N C A I N B.A. (Hon.) in Art History, University of Alberta, 1993 A T H E S I S SUBMITTED IN PARTIAL FULFILLMENT OF T H E R E Q U I R E M E N T S F O R T H E D E G R E E OF M A S T E R OF A R T S (PLANNING) in T H E F A C U L T Y OF G R A D U A T E STUDIES School of Community and Regional Planning T H E UNIVERSITY OF BRITISH COLUMBIA December 2004 © Helen Cain, 2004 I ii •i i A B S T R A C T Hall (1998) has identified the 'cultural city' as a global trend in urban marketing. Post-industrial cities falling under this label aspire to>be identified with flagship projects, e.g. museums, and/or beautification schemes tied to reusing old buildings, especially empty warehouses or factories, located in former industrial zones close to the central business district (Brown et al 2000; Evans 2001; Post' 1999). Some European cities such as Manchester, UK, and Bilbao, Spain that experienced catastrophic de-industrialisation during, the 1970s and 1980s are investing fresh economic, as well as aesthetic, value on regenerating old industrial areas of the inner city around the notion of 'cultural industry quarters' (CIQs) (Brown et al 2000; Fleming 1999; Vicario and Martinez Monje 2003). There is an emerging pattern of small- and medium-sized enterprise (SMEs) aligned with culture (e.g. designers) gathering in the inner city, or its fringe. In their choice of location, 'cultural industries' that constitute what I acknowledge as the 'new cultural economy' after Scott (1999, 2000, 2001) have an affinity for heritage structures, especially industrial, and land use zones. Thus, governments in Europe are encouraging cultural SMEs to cluster in inner city heritage districts called 'cultural industry quarters'. This thesis is a literature review that identified economic, spatial and social inclusion, or community development, policies for forging linkages between cultural SMEs and urban regeneration around the concept of CIQs. Three questions are addressed: 1. What policies could achieve cultural industry growth in the inner city? 2. What policies could meet the space needs of cultural S M E s , and other inner city users? 3. What policies could protect and advance social inclusion in CIQs? Concluding with a strategic policy framework, themes, objectives, goals and indicators are defined for the cultural economic, spatial and social inclusion roles of regeneration led by cultural SMEs. The framework is the outcome of reviewing academic literatures on the geography of cultural economy, related gentrification processes, and cultural SME led regeneration. Other information sources were government studies, websites dedicated to the encouragement of cultural industry and seven example CIQs, mostly UK, useful as reference points. Lessons learned from Europe could inform local authorities, particularly spatial planners, who are interested in design, implementation, monitoring and evaluation of cultural industry quarters. iii T A B L E O F C O N T E N T S I I i Abstract ii Table of Contents > iii Acknowledgements... v i 1 1. Introduction - New Cultural Economy and Old Industrial Cities 1 I. Introduction 1 II. Objectives of the Thesis 1 III. Scope of the Thesis 2 IV. Problem Context: Competition and the Cultural Image of Old Industrial Cities 3 V. Problem Definition 4 VI. ' Research Questions ' 5 VII. Methodology 7 a. Approach... 7 b. Personal/Subjective Location 9 VIII. Thesis Overview 10 2. Planning Theory - Regeneration as a 'Social Contract' 11 I. Introduction , 11 II. Theoretical Context - The 'Interpretative Turn' in Urban Policy 12 III. State Planning 15 a. Social Contracts 15 b. A Theory of Justice. 16 IV. Conclusion - Defining 'Regeneration' 17 a. Concept of Development Planning 17 b. Regeneration as a 'Soc ia l Contract' 17 3. Economic Background - A Creative Economy and Cultural Industries. 19 I. Introduction -19 II. Economic Context: Significance of the Creative Economy 19 a. Structural Change 19 b. Occupational Change 20 III. Definition o f 'New Cultural Economy' 21 IV. Conclusion: State Interest in Culture and Economy 25 4. Planning Background - Linking Cultural Industries and Regeneration 26 I. Introduction 26 II. Planning Context: The Political Economy of the Cultural Economy 27 iv a. Culture as Economic Policy . — ... 27 b. Cultural-Economic Policy and Regeneration . . . . . . . . 2 9 III. Conclusion: Planning Culture-Led Regeneration 31 a. 'Culture' as Ontology 31 b. Cultural Model of Regeneration.. 32 5. Strategic Policy Framework - Cultural Industry Quarters: Lessons From Europe 34 I. Introduction ... 34 II. Scope and Limitations of the Policy Framework 35 III. Regeneration Roles and Themes 37 a. Cultural Economic Role .37 i. Theme #1 - City Image and Regeneration... .37 ii. Theme #2 - Spatiality of the New Cultural Economy... 38 iii. Theme #3 - Governance of Cultural S M E Growth .45 iv. Conclusion - Cultural Economic Policies 47 b. Spatial Role.. . . . . . . . . .49 i. Theme #4 - Built Environment for Cultural S M E . 49 ii. Theme #5 - Competition for Inner City Space .52 iii. Conclusion - Spatial Policies 54 c. Social Inclusion/Community Development Role ...56 i. Theme #6 - Symptoms of Gentrification... 56 ii. Theme #7 - Building Community in CIQs 59 iii. Conclusion - Social Inclusion Policies 60 6. Conclusion - Future Research Directions 63 Bibliography 67 A C K N O W L E D G E M E N T S I am indebted to my supervisor, Dr. Thomas A. Hutton, for his ongoing encouragement and steadfast support over the course of this thesis, and reanimating my love for culture. My second reader, Michael Gordon of the City of Vancouver, was a valuable source of insight on the feasibility of local area policies that is appreciated. I am also grateful for the philosophical spirit and thoughtful questions raised by my external examiner, Peter Boothroyd. Thank you to my parents for being supportive. To my friends, Helen Chan, April Lawrence and Andrew Young, I am so happy to have shared so many wonderful conversations. Thank you for believing. I couldn't have done it alone. Chapter 1 New Cultural Economy and Old Industrial Cities > 1 1 | INTRODUCTION New Cultural Economy and Old Industrial Cities I. INTRODUCTION This thesis is part of the SSHRC-funded, "The New Service Economy of the Inner City: An International Comparative Study", supervised by Dr. Thomas A. Hutton of The University of British Columbia's Centre for Human Settlements (CHS). The Inner City project has sought to address critical theoretical and normative issues associated with the spatiality of the new economy, i.e. its attraction to inner cities, through innovative research approaches and conceptualisations of production districts. As a modest contribution, I defined a comprehensive and integrated strategic framework of micro-level economic, spatial and social inclusion policies that approach what can be called 'new cultural economy' growth as a mechanism for reinventing industrial zones as 'cultural industry quarters' (CIQs). Regeneration of the inner city or its fringe around the notion of CIQs is a complex arena of development planning that involves normative economic, cultural and socio-political issues in theory and praxis. II. OBJECTIVES OF THE THESIS Despite latent developmental potential, governance of the cultural economy of cities, including associated spatial planning issues, is largely unexplored in urban studies (Jeffcutt and Pratt 2002; Scott 2003). This thesis is a literature review that identified economic, spatial and social inclusion policies for forging linkages between cultural small- and medium-sized enterprise (SME) and the regeneration of former industrial zones of the inner city or its fringe around the concept of 'cultural industry quarters' (CIQ) (Brown et al. 2000). The thesis set out to accomplish the following objectives: 1. To theoretically justify a comprehensive approach to 'regeneration' that protects and advances the interests of vulnerable populations in micro-level economic, spatial and social inclusion policies; 2. To synthesize issues identified in urban economic and social geography as well as planning literatures on regeneration led by cultural economics with special reference to European 'cultural cities'; Chapter 1 New Cultural Economy and Old Industrial Cities 2 •i i 3. To draft a strategic policy framework for cultural S M E led regeneration, integrating economic, spatial and social inclusion objectives and measures based on identification of issues and sample CIQs from Europe. III. S C O P E O F T H E T H E S I S i i Regeneration is an arena of urban policy that involves complex trade-offs between local area improvement and state protection of low-income populations susceptible to displacement and social exclusion from the rehabilitated inner city. T considered theoretical and practical development planning issues. First, assumptions about how planners should approach regeneration were adapted from political theory: 'development' is conceived as an urban 'social contract' that should protect and advance an equitable standard of living for the most vulnerable persons in society. Specifically, I translated the political moral principles of the well-known social contract theorist, John Rawls, detailed in A Theory of Justice (1971) into planning theory. Second, these principles framed and shaped the consolidation of emergent academic literature on the geography of cultural economy, the intellectual and political history of approaches to 'culture' in European state policy, gentrification processes, and available analyses of cultural SME led regeneration. Information was also taken from government studies, websites dedicated to the encouragement of cultural industries and seven CIQs developing in European cities, mostly UK, which served as useful reference points. CIQs arguably exist in Canada (e.g. Vancouver) and the U.S. (e.g. San Francisco), but most of the recently documented examples of de-industrialized inner cities planned to incubate cultural SME are from Europe. Similar scholarly and public sector research on comparable areas of New York, for example, were not available, despite the often-cited past case study of SoHo by Zukin (1988). Hutton's (2000) study of design services in the reconstructed metropolitan core of Vancouver, Canada and Parker and Pascual's (1998) look at clustering of ICT sector work/live spaces in San Francisco's South Market inner city fringe are notable exceptions. The strategic policy framework presented in the conclusion to my thesis is intended to inform local authorities, particularly spatial planners, in the design, implementation, Chapter 1 New Cultural Economy and Old Industrial Cities 3 monitoring and evaluation of cultural SME led regeneration projects. However, it must also be noted that municipalities alone cannot accomplish regeneration. Partnerships with senior governments as well as co-operation and co-ordination between economic, land use and social policy constituencies that can address urban structural change are necessary for success (Carter 2000 after Hall 1997). Achieving regeneration objectives will also require a level of financial investment exceeding municipal budgets. Most of the European examples referenced are the outcome of collaboration with respect to funding sources for 'culture', industrial expansion and social development. At the same time, institutional arrangements were outside my scope of study as these are best uniquely defined for each context-specific regional and national structure of governance. IV. PROBLEM CONTEXT: Competition and the Cultural Image of Old Industrial Cities Our present moment of urban development is characterised by profound changes in the functions and forms of cities regardless of situation in the Third or First World (Martinotti 1993). Restructuring as nations shift from industrial to service economies is accompanied by radical transformations in the spatial patterns and built environments of cities. One recent trend is the regeneration of decayed and redundant inner city districts as cultural industry quarters by land use policies with strongly economic, and cultural, rationales (Brown et. al 2000; Evans 2001; Fleming 1999; Helbrecht 1998; Hutton 2002). Typically, the driver of such governmental reinvestment is interurban competition. While globalisation has fostered mutually supportive interurban bonds in the growth of 'network society' (Smith and Nairn 2000), competitive urbanism is fast becoming a central fact of both international relations and metropolitan economic development strategies. Moreover, as cities across the world bid for foreign attention, they do so relatively independently of parent nations, prompting some commentators (e.g. Evans 2001) to claim a renaissance for the city-state. Greater economic autonomy in the development of cities is evident, for instance, within the current policies of the Federation of Canadian Municipalities (FCM). Because competition for capital investment, firm relocation, and high-skilled economic migrants will only intensify in the future global Chapter 1 New Cultural Economy and Old Industrial Cities > 4 i • ' i • hierarchy, old industrial cities seek to reconstruct unattractive and outdated images (Short et. al 1993) Hall (1998) has identified the 'cultural city' as a global form of urban reinvention. Post-industrial cities falling under this label aspire to be identified with flagship projects, e.g. museums, and/or beautification schemes tied to recycling old buildings, especially empty warehouses or factories, located in former industrial zones close to the central business district (Brown et. al 2000; Evans 2001; Post 1999). However, Scott (2003) cautions that cultural cities should expand their economic base to aesthetic and symbolic commodities (e.g. fashion, the music industry) in addition to tourism and growth that result from drawing investors and professionals to cultural assets (i.e. flagships). Some first and second-tier cities that experienced catastrophic de-industrialization during the 1970s and 1980s are placing new economic, as well as aesthetic, value on the regeneration of industrial heritage landscape as production spaces (e.g. Scott 2001; Yeoh and Peng 2000). Alongside facilities such as performing arts theatres or metropolitan galleries, often in the downtown core, there is an emerging pattern of SMEs aligned with urban culture (e.g. designers) within the inner city, or its fringe. In their choice of locations, 'cultural industries' and 'design services' such as furniture, jewellery and architecture that constitute what I will acknowledge as the 'new cultural economy' after Scott (1999, 2000, 2001) share a common affinity for heritage structures (especially industrial) and land use zones. Urban development planning is therefore encouraging the agglomeration of cultural SMEs in areas of the inner city designated 'cultural industry quarters', or 'design districts'. V . PROBLEM DEFINITION Numerous commentators have explored the geography of cultural economic production (Helbrecht 1998; Hutton 2000; Ley 2003; Post 1999; Pratt 1997; Scott 1999, 2000, 2001). Previous research has found that cultural industries are characterized by a generalized preference for industrial heritage buildings and land use zones in the metropolitan core. There is, moreover, an observable dependence on inner city location because many cultural SMEs need to be near clients in the central business district (also see Brail 1994). Thus, micro-level planning issues are key factors in the design of policies to expand the new Chapter 1 New Cultural Economy and Old Industrial Cities .•' 5 cultural economy of cities. In the spatial context of rundown and redundant inner city localities, securing linkages between cultural industry growth and physical regeneration normatively also requires social inclusion, or community development, goals. Cultural SME led regeneration policies should integrate political and social interests in the rebirth of the inner city as new production space, i.e.'cultural industry quarters'. My thesis concerns local governance of the new cultural economy as an instrument to restructure redundant zones of the inner city and the image of old industrial cities. Problems and government decisions falling under this broad topic could be cast at varying levels of generality. The diagram on the next page illustrates a hierarchy of decisions that framed the research undertaken here (Figure 1.1). It also shows Rawls' political and social principles in A Theory of Justice were applied to state planning and thus development policy. In the synthesis of the review of literatures including seven European reference cases of linkages between cultural industries and regeneration policy, I addressed the problems of planning at the second lowest level of questions defined. VI. RESEARCH QUESTIONS One image guiding the restructuring of old European centres of industry is 'cultural city'. Presently, national and local governments in Europe are approaching cultural industries, an advanced service economy sector, as a mechanism to radically transform redundant inner city or inner city fringe districts into a new form of urban production space: 'cultural industry quarter'. Coordinated development of CIQs requires a strategic policy framework that can govern three overlapping areas of policy: (1) cultural production, (2) spatial planning and (3) social inclusion. Specific objectives and goals for regeneration strategies led by cultural industries were identified in my research by answering the below questions: 1. What policies could achieve cultural industry growth in the inner city? 2. What policies could meet the space needs of cultural S M E s , and other inner city users? 3. What policies could protect and advance social inclusion in CIQs? Chapter 1 New Cultural Economy and Old Industrial Cities 6 Figure 1.1 Decision Hierarchy What kinds of cities do we want to plan? What is the ideal relationship between urban spatial policy v and new cultural economy? ^ UJ O CO D ~ 3 LL O o UJ X I -< What are ideal linkages between de-industrialized inner city areas and cultural industries? What economic, spatial and social inclusion policies most strongly support the regeneration of the inner city or its fringe around the concept of cultural industry quarters? What policies could achieve cultural industry growth in the inner city or its fringe? What policies could meet the space needs of cultural SMEs; and other inner city users? What policies could protect and advance social inclusion in CIQs? Chapter 1 New Cultural Economy and Old Industrial Cities 7 Primarily, the purpose of the literature review was to identify a comprehensive and integrated set of policy innovations for directing structural change in the inner city, or its fringe, through the concept of transforming land use zones and buildings into cultural industry quarters. Because I adopted normative principles of distributive justice, regeneration was conceived holistically. Thus, my second goal was to approach cultural industries as a strategy both to achieve economic and physical improvements in inner city areas and protect and advance the social inclusion role of regeneration, i.e. community development. VII. METHODOLOGY a. Approach Contemporary policy analysis, like the social sciences in general, has taken the hermeneutic or 'cultural' turn. Data collection now extends beyond quantitative studies to interpretive methods such as interviewing, surveys and textual analysis drawing on a wealth of theories and praxes, e.g. philosophy, anthropology, sociology, political science and cultural studies. As discussed in Chapter 2, "Planning Theory: Regeneration as a Social Contract", urban policy is intimately related to post-empiricist geography. Accordingly, I incorporated political and social philosophy into economic ^ography and planning literature reviews for the purpose of identifying policy innovations. Figure 1.2 shows the research steps in summary. Journal articles, books, monographs, policy reports, websites on cultural industry and seven reference cases from Europe were subject to analysis and synthesized. Numerous windows of opportunity exist for using qualitative methods in policy formulation and implementation (Rist 2000). For example, studies of target populations, physical locations or institutions draw attention to issues can well define the interests of actors, causes of problems and available policy options. Academic researchers are in a unique position to contribute because they do not face the same timelines and political accountability demands of government policy-making (Lynn 2001; Rist 2001). Public decision-makers place a premium on scholarship that can address tasks Chapter 1 New Cultural Economy and Old Industrial Cities 8 i i Figure 1.2. Research Process literature review ^ i j ^ I i i political and social phi losophy cultural policy, spatial planning and community development economic and social geography reference cases : analysis/synthesis strategic policy framework (objectives + measures) research directions' Chapter 1 New Cultural Economy and Old Industrial Cities * 9 such as problem definition, community profiling, assessments of prior initiatives and policy innovation, which is the purpose of this literature review. In keeping with post-modern epistemological justifications for qualitative approaches to knowledge formation, interpretation and context are now pivotal factors in policy studies (Linder and Peters 1998; Lynne 2001; Parsons 1995) including the role o f the investigator. Intractability of bias is a significant aspect of any research conducted. b. Personal/Subjective Location Poststructuralist social science marks the impossibility of researcher's objectivity in relation to objects of study, whether human actions or texts. That is, the researcher's subjective motives, intentions and autobiography are acknowledged to be present in the production of knowledge. To aid transparency, it is necessary early in the research process to make one's orientation explicit. M y academic background was peculiarly suited to the topic at hand. A s an undergraduate student, I majored in the History o f Art and Design with an honours emphasis on postmodern media and theory including philosophies of art and interpretation. I am also a former Philosophy masters' student who specialised in legal, political and social theory, ethics and aesthetics. Out of these studies developed a strong conviction that governance should prioritise human rights, and a concern with the flourishing of human beings, as individuals and in communities of the polis. Furthermore, I have long been occupied with questions in the continental tradition o f philosophy, captured in the title of Gauguin's triptych, 'Where Do We Come From? What Are We? Where Are We Going?1 The progress of human beings theoretically drives my current interest in development policy and planning. On a personal note, I am passionate about design and friends in the creative sector have influenced me. M y grandmother was an industrial weaver in the North of England, one o f the foci o f this research, and as I left the U K in the early 1980s at the age o f 12, the social exclusion o f Thatcher's Britain as well as the experience of life in an old industrial city have left an 1 Paul Gauguin, 1897. Museum of Fine Arts, Boston, Arthur Gordon Tompkins Residuary Fund. Chapter 1 New Cultural Economy and Old Industrial Cities ^ 1 0 i i emotional imprint. It is therefore natural that the biases from which I began researching were ones of empathy with cultural workers, and a broad ethics of care. VIII. THESIS OVERVIEW Following this introductory chapter, Chapter 2 begins by surveying the 'cultural turn' in social science, its implications for economic geography and urban policy and conceptions of justice. Adapting Rawl'Sv4 Theory of Justice to planning, 'development' is defined as a 'social contract', which theoretically justifies a comprehensive approach to 'regeneration' linking local area economic and physical improvements with social inclusion objectives. Creativity as a significant source of competition in advanced service economies is the topic of Chapter 3 with special emphasis on growth of the new cultural economy and the 'cultural city'. Chapter 4 briefly looks at the intellectual and political history of European cultural policy behind a 'culture led regeneration' model that I used to identify policy innovations. Lessons learned from the review of existing literatures on the geography of cultural economy, related gentrification processes, available analyses of cultural SME led regeneration and seven reference cases in Europe are synthesized into a strategic policy framework in Chapter 5. Lastly, future research directions are suggested in Chapter 6, which concludes my thesis. I Chapter 2 Regeneration as a 'Social Contract' > 11 •i PLANNING THEORY ' Regeneration as a'Social Contract' I. INTRODUCTION Chapter 2 justifies a social inclusion role for regeneration through applied philosophy. Qualitative methods have become widely accepted as valid in the social sciences, which emphasize context and researchers' intentions in knowledge about the human condition. However, the idea that research is based solely on context or perspective does not provide justification for social and political actions. If we embrace relativism, public decisions become arbitrary regardless of historical or cultural setting and geographical location of i experience. Although we interpret behaviour, texts and artefacts through beliefs, values, . motivations, and interests, it is possible to reach a common understanding of phenomena. Thus, the purpose and value of the human sciences lies in their ability to compare and rank interpretations of populations studied in disciplines like urban geography that inform development policy. Policy involves the normative analysis of social and political goals. Conceptions of 'justice' are fundamental to society because they determine the scope and limitations of state planning. Ideas about the 'public good' in Western legal and political systems originate in the philosophical tradition of social contract theory, i.e. Locke, Rousseau and Kant. In my thesis, I applied Rawls' A Theory of Justice (1971) to development planning. Rawls argues that parties to any imagined social contract would mutually consent to two basic principles: (1) equal liberty for all citizens and (2) raising the lowest socio-economic position to the highest level possible. These are ground rules of social institutions and administrative functions. Throughout my literature review on cultural SME-led renewal, 'regeneration' was conceived as a contract that protects and advances the status of economically vulnerable persons through social inclusion, or community development policies. Chapter 2 Regeneration as a'Social Contract' 4>' 12 II. THEORETICAL CONTEXT: The 'Interpretative Turn' in Urban Policy Over the last two decades, there has been extensive academic dialogue over appropriate goals and means of inquiry in the social sciences, generating the 'quantitative vs. qualitative' methods debate. Schwandt (2000) has identified three epistemic paradigms vying for position as potential justifications for pursuing qualitative research: interpretivist philosophies (i.e. phenomenology, Wittgenstein), philosophical hermeneutics (Gadamer, Bernstein) and social constructivism (i.e. deconstructionism, critical theory, neo-pragmatism). Schwandt accepts the intersubjective nature of observing phenomena and human understanding in post-empiricist social science is inescapably interpretive, but rejects the claim that knowledge is solely the outcome of social processes. He disagrees with the stance of strong social constructivists that the human condition can be 'improved' in some sense despite the incommensurability of language games and their complete denial of ontological reality. The argument put forward is that if constructivism was accurate there could be no epistemic gain, or loss, from engaging in research and thus, in extension, no justification for choosing any social or political action decided through processes of governance. One decision would be as good as the next regardless of historical or cultural setting and geographical location of experience. Rather than social constructivism, Schwandt argues Gadamer's (1970, 1975, 1981) position that knowledge is negotiated through shared experience is the most warranted and useful justification for research in the human sciences. Gadamer conceives understanding as a continuous hermeneutic logic of question and answer wherein the knower can only interpret actions and text through background beliefs, values, and interests but the purpose of inquiry is nevertheless to grasp 'things-themselves?. Instead of believing that everything is constituted by interpretation, i.e. adopting the strong sceptic or nihilistic view implicit in constructivism that knowledge is wholly determinal by one's perspective or context, Gadamer's claim is that we always already see things through interpretation. The researcher's self-understanding (beliefs, values, motivations, interests) shapes and informs interpretation, alongside the intentions of these observed, but the attachment of meaning(s) to action or text is not arbitrary. Using the method of Chapter 2 Regeneration as a'Social Contract' > 13 philosophical hermeneutics, it is possible to normatively compare and rank various i I interpretations of phenomena (e.g. populations studied) based on information derivable from empirical observation, practical reasoning and epistemic norms of internal coherence. Bernstein1 (1991) has given the label 'non-foundational pragmatic humanism' to social science theory that has strong confidence in the cognitive capacity of embodied and engaged subjects to judge the legitimacy of interpretations. Thus, the hermeneutical version of the 'interpretive turn' in social science research implies the purpose and value of inquiry is to negotiate shared understandings of behaviour and artefacts informed by many perspectives that become increasingly coherent, i f never quite complete. This epistemological stance in the social sciences is important for urban policy linking cultural industries and regeneration because the latter will be a practical outcome of theoretical geography steeped in hermeneutics. Trevor Barnes (2001), in a recent publication, observes that most contemporary economic geographers approach the study of place through a hermeneutical lens instead of assuming quantitative methodologies mirror post-industrial, or industrial, economies. Barnes calls the intellectual current in economic geography the 'cultural turn', contrasting the earlier 'quantitative turn' of the late 1950s and early 1960s which upheld empiricism and logical positivism as the only valid framework for geographical research. Data collection is now open to interpretation from multiple points of view, including both historical, cultural, and political context and the influence of researchers' intentions and identities on processes of inquiry and meanings given to findings. Moreover, sources of information have substantively expanded to qualitative methods such as: in-depth interviews; questionnaires and surveys of attitudes, behaviour or values; personal stories; mass media; and a wealth of theories and praxes, including philosophy, anthropology, sociology, political science and cultural studies. Importantly the distinction between economic geography and its use in urban, policy is a shift from the standard description and explanation functions of social science to the normative analysis of developmental goals. In recent years, planning theorists2 1 Schwandt (2000) refers to Bernstein. 2 E.g. John Forrester, John Friedmann, Patsy Healey Chapter 2 Regeneration as a'Social Contract' •!» 14 have popularised Habermas' sociological theory of communicative rationality as the most inclusive, and thus ethically justified, conceptual framework for governance in democratic societies. Putting the ubiquity of Habermas aside, in the absence of ontological and epistemological reasons to justify choices of actions, communicative rationality can merely function as a formal schema of governance not a substantive, or even pragmatic, decision theory. Without the belief there are 'things-themselves' to grasp, i.e. ontological reality, the content of any policy that is 'reasoned' through decision-making frameworks, such as multi-stakeholder processes, is not justifiable. Put another way, the radical relativism of a constructivist spin on the 'interpretive' or 'cultural' turn in social sciences is not practical in the public domain. Adopting the stance of Derrida'sbricoleur, it is reasonable to assert communicative rationality ought to incorporate hermeneutics, after Gadamer, to provide a solid basis for the possibility of normative justification in public decisions. Policy negotiated through communicative rationality is politically and ethically justified with sufficient evidence from empirical observation, practical reasoning and epistemic internal coherence. Procedural and substantive justice, essential to the functionality of the state, is a policy goal of any society. Acceptance of hermeneutics as the best justification for the 'cultural turn' in urban policy makes it possible to define conceptions of justice, albeit through many avenues of political and legal tradition. No matter how conceived and institutionalised, concepts of justice structure the scope and limitations of state planning decided through social rationality and give teleological direction to decision-making frameworks and processes. Ideas behind government intervention in modern Western democracies can trace their conceptual origins back to the 18th century notion of a 'social contract'. One contemporary social contract theory, Rawls' A Theory of Justice has directly influenced a generation of public policy in theory and praxis mostly notably through his student, Robert Nozick, a well-known theorist of libertarianism. I used the Rawlsian concept of 'justice as fairness' as the normative framework for regeneration policies in this study. I Chapter 2 Regeneration as a'Social Contract' <• .15 III. STATE PLANNING ' a. Social Contracts I began my study from the normative position that urban studies should advance policies and programs that are ethical and just (House 1980). Governments necessarily make assumptions about when and to what extent state intervention is justified predicated on conceptions of the public good. Western legal systems, and therefore planning law and regulatory frameworks, are founded on jurisprudential interpretations of political liberalism in the philosophical tradition of Locke, Rousseau and Kant, i.e. social contract 3 v theorists. Broadly speaking, the latter conceive of social and political relationships as a i contract between stakeholders in a geographic community maintained for the sake of mutual benefits (e.g. protection of property) with a definitive scope and limitations. For example, the right to private ownership of land and property is guaranteed by the laws of constitutional democracies but were not legally recognized by centrally planned regimes in Eastern Europe and the U.S.S.R. Acceptable parameters of public intervention are bound by theoretical and applied principles. Political philosophy labels opposing ends of the spectrum 'individualism' versus 'communitarianism' which, put simplistically, respectively identify a policy concern with the individual versus a collective whole. The degree to which the state is justified in interfering in private lives for the public good depends on local beliefs about the relative responsibilities of civil society and government. On the right of the philosophical and political spectrum, libertarians support a minimalist state that guards citizens against loss of life and theft of property by criminal and civil law and guarantees political rights (i.e. voting) but does not provide other goods such as public healthcare, social housing or subsidized cultural programs. On the left, communitarians, who typically see a tension between individual interests and the common good, advocate wider intervention (through taxation) permitting state provision of goods that are conceived as universal 'positive rights' (e.g. food security, education). 3 For a convincing argument that Kantian ethics and political morality is a type of contractarianism, see DAJ Richards (1986) Toleration and the Constitution. New York, Oxford University Press. Chapter 2 Regeneration as a 'Social Contract' J>" 16 Western leaders have borrowed from philosophers since Machiavelli's advice to King James, but theories of justice did not directly inform their policy and statecraft until the 1970s with the publication of two highly influential books: Rawls' A Theory of Justice (1971) and Nozick's Anarchy, State and Utopia (1974).4 By adopting Rawls' ideas in my thesis, I followed a major school of thought and praxis in modern policy studies (e.g. see Parsons 1995). b. A Theory of Justice In the opening chapter of A Theory of Justice, Rawls argues that justice is the first virtue of social institutions and the most basic principle of political morality (enacted through public policy) is the equitable distribution of 'primary' social goods.5 The latter refers to equally accessible rights and duties, opportunities and power, wealth and income as well as freedom to pursue 'the good' broadly speaking, based on communitarian ideals, personal goals, and so on. Rawls' conception of justice approaches how to decide which principles should form the normative framework of institutions as a social contract. The question examined is 'what are the fundamental terms of civic and political association to which free and rational persons would consent?' In its most general form, the answer given is the only acceptable structure for public institutions is one that equally distributes social goods, unless an unequal distribution is universally advantageous. Thus, social injustice occurs when an unequal distribution of goods does not benefit some persons: Underwriting this conception of justice are two principles that Rawls conjectures would be unequivotably acceptable. First, every person in any society has a right to civil liberties, e.g. freedom of speech and private property rights. Secondly, the basic social structure will be just when no distribution of goods other than the status quo could make some persons better off without also worsening the circumstances of others6, 4 It is beyond the scope of present discussion to examine distinctions between Rawls and Nozick here. What is important in the current context is their common concern with placing priority on issues of justice in government policy. 'Primary social goods' is Rawls' language. 6 The latter is the economic principle of Pareto optimality applied to social theory. The Pareto principle states that the configuration of a system is efficient when it is impossible to alter inputs is such a way that more of one commodity is produced without producing less of another. Adapted to the design of society, Rawls argues that public institutions are efficient, and just, when ho distribution of social goods could make one person better off without at the same time worsening the circumstances of others. Chapter 2 Regeneration as a'Social Contract' 17 presupposing equal liberty. As such, distributive justice prioritises improving the conditions and achieving the goals of those citizens most disadvantaged in socially prescribed conceptions of the public good. Rawls defines 'equal liberty' and 'optimising the lowest socio-economic position' as the ground rules for institutions and administrative functions. These principles constitute fairness, and therefore justice. IV. CONCLUSION: Defining'Regeneration' a. Concept of Development Planning Throughout this literature review, I adopted Rawl's theory of justice in planning by conceiving of 'development' as a social contract in which shared ideas about the public good compete to shape the nature and extent of state intervention. Nations with market economies will attempt to encourage the private sector as well as satisfy the needs of civil society, while maintaining good governance through procedural and substantive justice in social institutions and frameworks. Balancing market and non-market imperatives involves divergent and sometimes incommensurable policy objectives and values. I assumed that development policy, through which the state enacts distributive justice, would function as inclusive, i.e. democratic, in spirit but prioritise protecting and advancing an equitable standard of living for low-income persons. Public officials can draw attention to critical issues by asking the 'right' (i.e. context-sensitive) normative questions (Forester 1993). Thus, planners should ask, 'who is represented in development?' to reveal the tensions, and synergies, within urban economic and spatial change. Regeneration of the inner city has been a contested concept and praxis in European cities. b. Regeneration as a 'Social Contract' Smith (2003) has recently noted that 'regeneration' is becoming a continent-wide movement in Europe spanning from Britain to Denmark, as indicated by efforts in the year 2000 to launch a EU strategic policy. However, as Smith further observes, the new rash of programs consistently fails to address, or even acknowledge, the phenomena of Chapter2 Regeneration as a'Social Contract' 4» 18 displacement and social exclusion, which typically occur whenever the private and public sectors reinvest in the inner city. Effectively, 'regeneration' is in fact equivalent to 'gentrification', i.e. 'colonization' of rundown and impoverished local areas by middle class settlers (Ley 1986, 1996; Slater 2003). Thus, social and political tensions are well entrenched in European regeneration policy. Given my normative position that development ought to be planned as an equitable, and always democratic, 'social contract', strategies to renew the inner city should include a social inclusion, or community development, role in regeneration in addition to economic and spatial planning objectives. Roberts (2000, p. 17) provides a useful definition: , Urban regeneration is a comprehensive and integrated vision and action which leads to the resolution of urban problems and which seeks to bring about a lasting change in the economic, physical, social and environmental condition of an area that has been subject to change. Planning the cultural economy of cities in all dimensions - productivity and employment, land use and industrial heritage preservation - involves numerous actors including local authorities, cultural SME owners, public and private intermediary services (e.g. job placement/recruitment agencies), the 'new middle class' (Ley 1996 and low-income groups (Hillier 1998; Ley 2003; Mill 1998; Smith 2003). Because I assumed Rawlsian principles of justice are normative guideposts in the forging of linkages between cultural industries and regeneration, those persons vulnerable to negative impacts from the development of cultural industry quarters were a major consideration. Accordingly, the strategic policy framework at the end of my study incorporates social inclusion policies in the forms of broad input into the planning of CIQs, work training in cultural industry fields, subsidized access to infrastructure and social housing to partially ameliorate displacement. Strategic approaches to regeneration are addressed in greater detail in Chapter 5. Before taking a cursory look at the politics of policy interpretations of 'culture' in Europe informing a model of regeneration, Chapter 3 establishes an economic rationale for old industrial cities to encourage the growth of cultural SMEs. Chapter 3 A Creative Economy and Cultural Industries > 19 ECONOMIC BACKGROUND , A Creative Economy and Cultural Industries I. INTRODUCTION Chapter 3 defines the significance of creativity in the new economy including a developmental role for cultural industries in global competition between 'creative' or 'cultural' cities. Structural change is evident in Florida's (2002) research on the 'creative economy' that indicates a much greater proportion of labour in the United States is generating intellectual property than 40 years ago, representing a larger share of GDP. Florida,anticipates this phenomenon will become global in the near future. 'New cultural economy' or 'cultural industries' is a sub-sector of the creative economy characterized by overlaps of innovations in technology and design, and experiencing considerable growth. As a result, economic planning at the global, national and local level is starting to base new 'creative' or 'cultural' city identities on cultural SME performance (e.g. see Scott 2000, 2003). State interest in the new cultural economy also extends to the capacity of SME to lead spatial change in the inner city or its fringe in the form of a new urban production space: cultural industry quarters. II. ECONOMIC CONTEXT: Significance of the Creative Economy a. Structural Change Ever since Castell's (1989) published his 'informational city' theory, development planners have grown aware of an economic transition occurring at the global, national and local scale similar in scope and magnitude to the industrial revolution. Profound economic change is the outcome of new technologies, technical processes, and techno-organizational systems. That is, the world has entered the 'new economy', which Scott (2003, p. 3) defines as the "collection of manufacturing and service sectors whose operating features involve considerable degrees of organizational and technological flexibility, transactive intensive inter-firm relations, and the production of design-intensive outputs". Major productive sectors of the new economy extend from high-technology manufacturing, to business and financial services, to my focus of discussion: 'cultural industries'. Chapter 3 A Creative Economy and Cultural Industries J> 20 Creativity is widely believed to frame the new economy (Hall 1998; Jeffcutt and Pratt 2002; Thosby 2001; Scott 1999, 2000, 2001). In The Rise of the Creative Class, Florida elaborates: Powering the great ongoing changes of our time is the rise of human creativity as the defining feature of economic life. Creativity has come to be valued - and systems have evolved to encourage and harness it - because new technologies, new industries and new wealth and all good economic things flow from it. And, as a result, our lives and society have begun to resonate with a creative ethos. An ethos is defined as 'the fundamental spirit or character of a culture.' It is our commitment to creativity in its varied dimensions that forms the underlying spirit of our age (2002, p. 21). Florida identified an intimate relationship between economics and innovation in his research on sectoral shifts in the U.S. economy and occupational distribution. He first points to the work of economist John Howkins who, in a 2000 issue of Business Week, applied the concept of 'creative economy' as the label for 15 classes of industries that specialise in intellectual property (patents, copyrights, trademarks and proprietary designs), e.g. research and development, publishing, software, and film (p.46). Florida notes Howkins' study revealed the 1999 worldwide revenue of these sectors was $US 2.24 trillion dollars, of which the U.S. share totalled more than 40 percent. Adding evidence to the relative weight of 'creative industries', Florida's own data (pp. 45-46) indicates U.S. research and development investment rose over 800% from 1953 - 2000, patents increased by 250% during the period 1950 - 1999, and the number of professional 'bohemians' (full-time artists, writers, performers) had gained by 375% since 1950. Parting from Howkins, but like Bell (1973) and Ley (1996) before him, he defines 'creative' (i.e. intellectual property based) economic activity by classifications of occupation. b. Occupational Change Though there is extensive language in the literature on advanced economies that captures new social groupings, norms, and values1, Florida presents a case for a new term, the 'creative class'. The function of this socio-economic group is to generate new ideas, technology and/or content, therein adding value to outputs through creativity. His concept 1 Two well-known examples are Brooks' term 'Bobos' which identifies the merging of bourgeoise and bohemian lifestyles and the 'new middle class' which Ley coined to denote managerial and business service professionals whose values and preferences are central issues in urban geography and planning literature. Chapter 3 A Creative Economy and Cultural Industries 21 includes two sub-groups: 'super-creative core' and 'creative professionals^ Florida ranks the former as high-order creative because they regularly1 develop new forms 6r design that are easily transferable and widely used, for example, musical compositions, scientific theorems and product-model prototypes. A long list (p. 69) of workers are included: scientists, engineers, designers, architects, professors, actors, entertainers, artists, poets, novelists, cultural figures, non-fiction writers, think-tank researchers, policy analysts and public opinion-makers. By comparison, the work performed by 'creative professionals' is unoriginal. Rather than contributing novel products or methods, these are highly formally educated workers whose routine tasks demand a great deal of judgement, i.e. their role is one of creatively solving problems. Standard categories of occupation include: management, business and finance, law, healthcare, specialized technicians and high-end sales. After conducting a rigorous survey of U.S. national statistics and 200+ 'metropolitan statistical areas' (MSAs) across the country, Florida theorises that the creative class is gaining in socio-economic status relative to blue-collar and service sector workers. Based on U.S. Census 'standard occupational classifications' and available historic statistics from 1900 to the present, the in-depth demographic analysis reveals those employed in manufacturing, construction arid transport shrank from the 1920 peak of 40% to 27% in 1999, but the creative class rose from 10% at the turn of the century to 30% by 1999, with projected continued growth. Indicating structural change, the super-creative core's portion of the workforce gained to 12% from 2.5% during the period 1900-1999. Furthermore, even though the service class held 43% of total occupations by 1999, much of their employment is outsourcing for the creative class whose time-demanding work and moderate to high earnings often lead them to purchase domestic services usually provided within the family. Thus, there is mounting evidence the creative class is a prime source of economic growth in the U.S.A., a phenomenon that Florida hypothesizes will occur across the developed and developing world. One expanding sub-sector of creativity is the 'new cultural economy', or 'cultural industries'. III. DEFINITION OF 'NEW CULTURAL ECONOMY' Throughout the global shift from manufacturing to the information economy, cities have in part approached 'culture' as an asset and commodity (Hall 1998; Scott 2000). What is Chapter 3 A Creative Economy and Cultural Industries > 22 different and compelling in the contemporary context is the hypothesis that a convergence, of innovative art, design and technology will soon drive the new economy (Hall 1998; Scott 2003) alongside high-end business services, personal services, the tourism industry, education, and health services. Internet, broadband communications and multi-media technologies are expected to stimulate growth in print and electronic media and arts, culture and entertainment, industries I label as 'new cultural economy' for the purpose of this thesis. As post-industrialism spreads globally, national and metropolitan economic planning strategies are now looking to 'culture' as both a commodity and production type as manifest in cultural tourism and industry (Evans 2001). The 'cultural economy', 'cultural industries' and 'creative industries' have each been deployed to capture this emergent sector conceptually. Scott (2001) broadly defines 'culture' as those production forms of (post) modern capitalism that cater to consumer demand for ornamentation, pleasure and amusement and whose outputs are high in creative, aesthetic and semiotic content relative to utilitarian purpose. Cultural products are thus outputs of craft, fashion, media, entertainment and service industries that include furniture, jewellery, clothing, magazines, books, films/video, digital content publishing, sound recordings, visual communications, multimedia, television/radio and architecture. Moreover, the commercialisation of symbolic goods also extends to artefacts of 'collective cultural consumption', e.g. museums and galleries'that draw inward and overseas tourists. Perhaps somewhat overzealously Scott has declared the cultural economy one of the most dynamic and expanding frontiers of 21st century capitalism. A more conservative estimation will acknowledge cultural production constitutes a relatively small share of national employment and GDP (Evans 2001) but its expected trajectory is growth. Britain's 'creative industries', for example, grew by 16% from 1997 to 1998 compared to a mere 6% for the nation's overall economy; exports of cultural products contributed 10.3 billion pounds to GNP and accounted for over 5 percent of GDP (DCMS 2002). Avoiding the methodological criticism that the signs, symbols, images and values traded through cultural economy are hard to quantify (Evans 2001), the U K Department of Culture, Media and Sport (DCMS 2002, p. 5) inventories 'creative industry' activity under categories of Scott's 'cultural products'. Namely these include "advertising, Chapter 3 A Creative Economy and Cultural Industries > 23 architecture, the art and antiques market, crafts, design, designer fashion, fjlm and video, interactive leisure software, music, the performing arts, publishing1, software and computer services, television and radio". Beyond their aesthetic and semiotic appeal, the value of Britain's industries "which have their origin in original creativity, skill and talent" is clearly developmental "potential for wealth and job creation through the generation and exploitation of intellectual property." 1 Other governmental and scholarly definitions of cultural economy have alternatively grouped creative industries into sectors branded 'Arts, Culture and Entertainment' (ACE) or 'Publishing, Media and Culture'. Post (1999) following Pratt (1997) plassifies publishing, broadcasting, film/video, digital media, sound reproduction I i and news agencies as PMC. Mandated to set'strategic land use policies, London's Planning Advisory Council (1990) widened consideration to not only the economic but governance and social dimensions of cultural production with its conception of A C E as: A complex range of creative, enlivening and recreational activities; ranging from fine arts to ice shows, publishing to the theatre, photography to steel bands. They may be actively creative or passively responsive. They contribute to the intellectual, artistic and social quality of life of those living, working or visiting London. Some require specifically allocated spaces or facilities, others take place in shared buildings or public spaces. They may be public or private, non-profit making or commercial or professional, be independent entities in their right or form part of other activities. They are heavily inter-linked and interdependent with other activities, including sport and recreation; and manufacturing, business and service industries - filming, television, advertising, fashion, retailing, catering, publishing. 2 No matter how defined the emergent cultural approach to economy marks a considerable shift within governmental urban development policy. As the modern welfare state matured, first in Europe then North America, arts and culture amenities (i.e. galleries/museums) became publicly funded goods rather than primarily outcomes of religious or commercial patronage. By contrast contemporary state support of arts-as-amenity is losing ground against competitive economic strategies favouring cultural industry and cultural tourism in democratic resource allocation and development planning (Evans 2001). Driving this move is the increasing pragmatic, as well as theoretical, 2 LPAC (1990) Strategic Planning Policies for the Arts, Culture and Entertainment, Report No. 18/90. London, UK: London Planning Advisory Committee, cited in Evans (2001, p. 129). Chapter 3 A Creative Economy and Cultural Industries 24 conviction that a robust arts and culture sector enhances first- and second-order cities across their roles as regional, national and international centres. Put another way, most nations, regions and cities fear that a poor showing in both non-profit sub-sectors such as the performing arts and cultural production will repel highly skilled employees and firms, not least cultural workers, part of the 'super-creative core', who are seeking 'quality of life' (Sassen 1994). Inside the cultural economy, a significant theme of recent scholarship (Hutton 2002; Jeffcutt and Pratt 2002) is the convergence of culture and information communications technology in the value-added products of advanced urban economies. Crossovers of industry between the 'new economy' and the 'cultural economy' are variegated and fairly sweeping. Scott (2001) assumes that small- and medium-sized enterprises engaged in the creative and innovative production of cultural outputs are technologically savvy. Thus industries that integrate creativity, design expertise and technology intensive communications and production skills are essentially 'hybridised firms' (Hutton 2003). The inter-relationship between technology and culture within the knowledge economy is tripartite (Jeffcutt and Pratt 2003). First, the propensity for media/information service industries to merge with arts/cultural productive systems belays the inter-sectoral nature of what I will call the 'new cultural economy' or 'cultural industries'. Second, divergent domains of creative endeavour, e.g. magazine publishing and visual art, come together as inter-professional explorations of new opportunities to apply digital media technologies. Third, a complex network of stakeholders, from departments of culture to industry, trades, professions and educational bodies, each significantly invested in new cultural economy means that inter-government and/or inter-agency policy will direct the sector's maturation. Cultural production that overlaps the new economy excludes those industries that are not based in technology, i.e. traditional crafts, art media and performing arts as well as associated services such as suppliers and antique markets. Therefore it can be reasonably asserted that the new cultural economy includes all other creative sub-sectors potentially belonging to both A C E and PMC economic classifications. Together these are designer fashion, industrial design, interior designers, architecture, visual communications, film and video, sound recording, television and radio, digital media, Chapter 3 A Creative Economy and Cultural Industries .25 p u b l i s h i n g , c o m p u t e r i m a g i n g , a n d m u l t i m e d i a serv ices F o r the foreseeable future, cu l tural industries can b e expected to cont inue p l a y i n g a deve lopmenta l ro l e i n nat iona l a n d u r b a n e c o n o m i c p l a n n i n g . T h u s , there is c o m p e t i t i o n a m o n g countries and cit ies for v a l u e - a d d e d 'creat ive' or ' cu l tura l ' images . IV. CONCLUSION: State Interest in Culture and Economy F l o r i d a anticipates post - industr ia l nat ions around> the w o r l d w i l l undergo a trans format ion a k i n to the creative e c o n o m y u n f o l d i n g i n the U n i t e d States. C u l t u r a l industries h a v e a s igni f icant deve lopmenta l ro le i n this e c o n o m i c structural change at the internat ional , country a n d l o c a l l eve l . T h i s is not least because the n e w cultural e c o n o m y straddles t w o s o u r c e ' o f prof i t -generat ing i n n o v a t i o n i n a d v a n c e d service economies - t e c h n o l o g y a n d culture - thus c o n j o i n i n g two (post) m o d e r n facets o f the 'creative c i ty ' ( H a l l 1995, 1998; L a n d r y and B i a n c h i n i 1995). H o w e v e r , u r b a n e c o n o m i e s that base 'creat ive' or ' cu l tura l ' c i ty images o n S M E g r o w t h are o n l y a recent p h e n o m e n o n i n E u r o p e . H i s t o r i c a l l y , cul tural and e c o n o m i c po l i c i e s exh ib i ted v a r y i n g degrees o f crossover . G o v e r n m e n t s v i e w e d aesthetic a n d semibt i c p r o d u c t i o n as a p u b l i c g o o d , a f o r m o f c o m m u n i t y deve lopment , or a source o f t o u r i s m i n c o m e i n the case o f f lagships l i k e m u s e u m s and metropo l i tan gal leries , c h a n g i n g i n l ine w i t h the i d e o l o g y o f the state over the last twenty years. C h a p t e r 4 p r o v i d e s a b r i e f h i s tory o f po l i t i ca l interests i n 'cul ture' i n E u r o p e i n f o r m i n g a m o d e l o f regenerat ion used i n C h a p t e r 5 to ident i fy issues addressed b y the p o l i c y framework. S o m e cities that underwent de- industr ia l i sat ion i n the 1970s and 1980s are n o w f o c u s i n g o n the capac i ty o f cul tural S M E s to re invent the inner c i ty or inner c i ty fr inge areas as cul tural industry quarters. t Chapter 4 Linking Cultural Industries and Regeneration J> 26 4 | PLANNING BACKGROUND [ Linking Cultural Industries and Regeneration I. INTRODUCTION Chapter 4 identifies the politics of European polity interpretations of 'culture' framing its use to lead regeneration. State policy with an exclusively economic perspective fails to acknowledge what Scott (2000, p. 205) calls 'the political economy of the cultural economy' encompassing "political and social interests that are intertwined within the cultural economy and their condensation in the image". The political economic strength of nations, cities and enterprise is expected to increasingly depend on marketing new images complementary to the geographical pull of natural resources, physical location, and historical reputation (Landry and Bianchini 1995). Image is projected in two ways: through the 'economy of signs' (e.g. the 'modernity' of Milan fashion design) and the 'economy of space' (e.g. tourism facilities) associated with a city (Bianchini 1993a; Lash and Urry 1994; Zukin 1995). 'Culture' has long been a source of identity for cities (Evans 2001; Zukin 1995). Historically, cultural outputs were not primarily conceived as commercial in Europe. Thus, cultural policy was distinct from economic development, largely restricted to state subsidization of public goods, theatre for example, or a form of community development, rather than financial or other support to industry. However, in the mid-1980s, European national and local governments began to approach culture as a productive sector, targeting galleries and museums as sources of tourism revenue, assets to attract investment and highly skilled workers and a mechanism for regeneration. The shift in policy direction represented a change in political agendas. A handful of planners and geographers (e.g. Evans 2001; Scott 2003) propose that cultural policy should expand its purview to governance of the new cultural economy as a stimulant for regeneration around the notion of cultural industry quarters. If we assume regeneration is a democratic 'social contract', CIQ projects would require a cultural planning model that respects and incorporates local values and ways of life with the state's political and economic interests. That is, strategic Chapter 4 Linking Cultural Industries and Regeneration > 27 plans for regeneration should link cultural SME to community as well as physical development. II. PLANNING CONTEXT: The Political Economy of the Cultural Economy a. Culture as Economic Policy In the history of ideas, there is a long tradition of staying an intellectual divide between 'culture' and 'industry', resisting appreciation of the formers' value in economic terms (Jeffcutt and Pratt 2002). During the mid-to-late 19th century, the Romanticism movement pervaded all European thought. The 'Romantics' promulgated the belief that society should ideally be led by an artistic elite untainted by commerce and were passionately opposed to mass (i.e. 'low') cultural products, perceived to threaten the sanctity of 'high' culture. A century later, the Frankfurt School of Critical Theory (Adorno, Horkheimer) evoked a similar distaste towards cultural outputs of Fordist production systems because they did not fit the criteria for 'authenticity' (Evans 2001; Jeffcutt and Pratt 2002; Scott 2000, 2003; Throsby 2001). This anti-commercial spin on 'culture' was absorbed into the cultural policies of Western European nations. Before the late 1960s, government normally conceived of culture as divorced from material production (Bianchini 1993a, Evans 2001; Kong 2000) and generously granted public support to 'high' pre-electronic arts, i.e. non avant-garde theatre, music, theatre, and so on. Cultural forms of expression were not, essentially, equated with industrial goods or exchange value. Such a view can be traced back to the time when mass production on a widely mechanized scale was unavailable to early cultural cities like mid-15 century Florence, where an active, but not strictly speaking 'industrial', book-printing trade had evolved slowly over time (Evans 2001). Sharply opposing critical theorists, and the Romantics before them, cultural economic geographer Allen Scott (2000) has suggested it is no longer possible to arrest the international flow of commercial (i.e. 'mass' or 'pop') culture. In this view, cultural policy is now a localized developmental path of global capitalism. Scott rejects the assumption that the logic of capitalism and cultural authenticity are antithetical. Rather, I Chapter 4 Linking Cultural Industries and Regeneration J> 28 •i post-Fordism is seen to avoid banality, dreaded by the FrankfAirt School and can arguably invoke creativity due to the structural pressures of specialization and innovation (Florida 2002; Jeffcutt and Pratt1 2002; Scott 1999, 2000). Also, commodification is not necessarily negative: cultural commodities can be deployed for political and social purposes, including resistance to unwanted foreign influences (Scott 2000). Despite concerns about possible damaging effects of globalization on cultural diversity (Throsby 2001),'there is reason to believe that 'global' is not necessarily the descriptor of a hegemonic force. In the transnational exchange of goods, domestic consumers reinvent the meanings of imported products (Kong 2000; Scott 2000). What is more, local cultural production has the capacity to catalyze social cohesion (e.g. see Bloomfield 1993). r ( Additionally, linkages between 'culture' and 'economy' are mutually constitutive in post-industrial systems (Kong 2000; Scott 2000). Put in basic terms, the dynamics of • 2.1st century capitalism are generating cultural outputs ever more commercialised, i.e. supplied by profit-making agencies in decentralised markets (Scott 2000). Conversely, the processes of production are yielding more goods of aesthetic and symbolic form and content. These artefacts invested with exchange value can define the image of a city. Consequently cultural economics - which analytically and statistically divides symbolic and aesthetic goods from non-symbolic and/or non-aesthetic ones - is now a leading policy interpretation of culture in Europe and elsewhere, especially the United States (Jeffcutt and Pratt 2002; Scott 2000; Throsby 2001). Nevertheless, economists do not have a monopoly of perspective on 'culture'. Rather, the concept is complex (Jeffcutt and Pratt 2002). Conceptual territory between 'culture' and 'industry' cuts across multiple disciplines, including organisational theory, critical anthropology, consumer behaviour analyses, media and cultural studies. Thus, research into 'culture' as an industry extends far beyond theoretical and applied areas of cultural and economic policy. Furthermore, culture has a political dimension that over the last twenty years has become associated with its capacity to lead urban regeneration. Chapter 4 Linking Cultural Industries and Regeneration >' 29 b. Cultural-Economic Policy and Regeneration Governance is a major challenge facing development of the new cultural economy (Bianchini and Landry 1995; Jeffcutt and Pratt 2002; Hutton 2003; Scott 2003). National and municipal governments would benefit from well-defined strategies for the sector's growth. Political vision is particularly important in policies that forge linkages between cultural SMEs and the regeneration of old industrial cities around the concept of CIQs because the inner city is a complex and socially sensitive arena of development planning. Cultural economic development is partially determined by political context (Bianchini 1993a). European policy decisions about marketing and producing cultural goods used to fall primarily under federal-level jurisdiction (Bianchini 1993a; Evans 2001; Kong 2000). National approaches to cultural production broadly corresponded with ideological agendas that viewed their value as aesthetic and/or expressive (apolitical), socio-political (left-wing) or economic (right-wing). Departing from the aesthetic and expressive biases of the 1960s, 'culture' gained in political value throughout the 1970s (Bianchini 1993a). Inspired by post-1968 social movements that blurred conventional lines distinguishing 'low' and 'high' cultural outputs and also co-opted creativity into political action, left-wing administrations1 managed culture from a newly utilitarian point-of-view. Cultural media were conceived as useful catalysts for social rebuilding at the local-area level involving disengaged citizens and self-expression. Thus, 'culture' first became the instrument of inner city regeneration in a community-based socio-political sense (Bianchini 1993a; Evans 2001; Jeffcutt and Pratt 2002). Nonetheless, there are historical precedents for enlisting cultural industry as a contributor to economic development as indicated, for example, by the 18th century formation of Britain's Royal Society for the Encouragement of Arts, Manufactures and Commerce (Evans 2001). Despite potential, the economic utility of aesthetic and expressive form was not a priority of 20 th century policy until the late 1970s and early 1980s. Squeezes felt in municipal expenditures when most of Western Europe underwent 1 Two examples that Bianchini (1993a) discusses are Rome's 'new left' politicians and the UK Labour administration controlling the Greater London Council (GLC) Arts and Recreation Committee in the early 1980s. Chapter 4 Linking Cultural Industries and Regeneration 30 a profound shift to conservative political agendas and laissez faire economics were first accompanied by defensive measures to preserve existing funds for non-profit cultural programmes (Bianchini 1993a). Governments chose to improve governance and service delivery, monitored cultural resources, invested in private-public partnerships and launched 'cultural city' marketing agendas. Sooii afterwards, those parties holding power in Europe (e.g. Thatcher) transformed 'cultural city' mandates into aggressive campaigns to harness synergies between cultural, economic and spatial development policy by financing cultural flagship projects. The economic rationale was, and continues to be, the conviction that large-scale amenities would develop the tourism industry and attract foreign, investment as well as highly skilled workers, capturing a global or regional competitive edge for first and second-tier cities.2 1 At the time of these early inner city projects anchored by cultural facilities, the political decentralisation that was the end result of the overwhelming political move to the right largely transferred economic and cultural jurisdiction to local authorities. Thus, cities were brought to the fore as critical actors in the newly global cultural economy (Bianchini 1993a; Evans 2001; Scott 2000, 2003). Statutory powers and responsibilities for urban development vary with the degrees of autonomy and financial reserves open to enact 'economic' or 'cultural' policy. Since the mid-1980s, regeneration has been achieved through public-private partnerships with EU agencies, banks, foreign and domestic corporations and developers to finance flagship buildings, hard infrastructure (e.g. workspace) and new technology sectors (e.g. cable, video) necessary for production (e.g. see Booth and Boyle 1993; Brown et. al 2000; Fleming 1999; Montgomery 1995). However, Scott (2003) suggests the new cultural economy must now become more identified with aesthetic and semiotic products rather than merely tourism or the employment and income growth that indirectly come from drawing investors and professionals to a city's attributes. In other words, cities should be associated with cultural assets other than flagships. Cultural industries are already targets of political and media attention in some European nations. Economic development policy has begun to 2 Booth and Boyle's (1993) paper, 'See Glasgow, see culture,' is an excellent illustration of this regeneration rationale. Chapter 4 Linking Cultural Industries and Regeneration J> 31 concentrate on cultural industries apparent, for instance, in the UK's attentiveness to the 'creative industries' (DCMS 2001) and the fervour around the Third Italy. Moreover, localities are eager to declare themselves international 'design', 'cultural' and 'creative' capitals. This is as true of global city-regions (e.g. London) as second-tier metropolitan areas like Vancouver, Canada (Evans 2001; Hutton 2000; Scott 2003). Finally, a number of old industrial European cities, e.g. Dublin, Rotterdam and Nottingham, are using cultural SME growth to lead the regeneration of rundown buildings and redundant inner city land, sometimes particular sub-sectors as is the case in Nottingham with its fashion industry (see Brown et al. 2000; Crewe and Beaverstock 1998; Fleming 1999; McCarthy 1999; Montgomery 1995). Forging linkages between cultural industries and regeneration requires policies that anchor the new cultural economy to community development. The comprehensive and integrated policy framework I present in Chapter 5 is based on a 'culture led regeneration' model for urban stewardship that incorporates social values, identities and inclusion into local area planning, and thus CIQ initiatives. III. CONCLUSION: Planning Culture-Led Regeneration a. 'Culture' as Ontology In his paper on the reinvention of Temple Bar district in Dublin as a cultural industry quarter, Montgomery (1995, p.7) has defined 'culture' in ontological terms: namely it is, 'the means by which cities express identity, character, uniqueness, make positive statements about themselves, who they are, what they do and where they are going'. Conceived broadly, culture is thus a 'way of being' unique to a place articulated through values and meanings in art and education praxes and the overall outcome of social transactions and institutionalisation: (Culture) encompasses the way people eat, talk, think, meet others, engage in transactions, spend their free time, during the day and night. In this light, cities can be seen as places where space is provided for all these activities, the expression of culture, to occur. This means that rather than simply being an add-on to the serious concerns of economic development and the built environment, culture has both helped shape and continues to develop in the streets, spaces and buildings of the city...we can only do justice in planning and laying out Chapter 4 Linking Cultural Industries and Regeneration > 32 i strategies for the future of cities if we understand and in part build thermaround the peculiarities of place and the relationship between place and culture (p. 2). In Montgomery's concept, ,the purpose of local development planning is to capture social values and construct identities through the praxis of 'urban stewardship' involving 'a process of looking after and respecting a place, and helping it to help itself (p.2-3) become a 'good city'. Therefore, his version of 'cultural planning' proposes 'ways of being', as a guiding principle for city design and1 management. Applied to the context of cultural SME led regeneration, urban stewardship would require the incorporation of social and political interests in the rehabilitation of former industrial zones of the inner city or its fringe around the notion of GIQs. i 1 i b. Cultural Model of Regeneration Similar to Montgomery, Bianchini (1993b) has argued governmental policy should prioritise an anthropological understanding of 'culture' as 'ways of life'. In line with this idea^ he envisioned 'regeneration' to involve the integration of cultural, political and social strategies into the usual economic, land use and urban design plans. Consistent with Rawlsian political philosophy and the spirit of social contract theory generally, his culture led regeneration model is based on the ideal of an inclusive city. Bianchini has suggested the rehabilitation of de-industrialised inner cities, as physical and economic entities, ought to balance stakeholders' interests and ensure public input into planning. He favoured a return to the 1980s role of cultural policy as a means to achieve political ends by promoting the self-expression of marginalized groups in the inner city, which can renew a sense of community based civic pride. However, unlike previous arts interventions that were primarily concerned with public welfare and capacity-building goals, Bianchini emphasized the economic potential of cultural production in regeneration as well. In particular, ethnic, gay and lesbian, bohemian and low-income communities are targeted as potential cultural SME owners and participants in planning processes, decisions and outcomes behind the formation of CIQs. Thus, rather than simply focusing on a capitalist rationale for inner city regeneration, his vision combines 1990s growth with 1980s socio-political imperatives. Chapter 4 Linking Cultural Industries and Regeneration > 33 Assuming regeneration is a democratic 'social contract', CIQ projects require this kind of cultural planning model to link the economic role of regeneration to 'ways of life': who people are, what they do and where they are going. Thus, I deployed 'culture' (social values, activities) to forge linkages between cultural SME and community as well as physical development (Kong 2000). Furthermore, the socio-economic position of the most vulnerable populations in the inner city was prioritized in this holistic approach by targeting low-income persons in the social inclusion role of the strategic framework, which Chapter 5 presents. Chapter 5 Cultural Industry Quarters: Lessons from Europe > 34 5 | STRATEGIC POLICY FRAMEWORK Cultural Industry Quarters: Lessons From Europe I. INTRODUCTION Recent structural changes in the functions and forms of cities associated with linkages between innovations in technology and cultural production indicate that national and local governments will benefit from targeting the new cultural economy in development policy. One sign of urban change is the emergence of strategies that approach the growth of cultural small and medium-sized enterprise observed to cluster in the inner cities of old industrial centres as a vehicle for regeneration. Recently, a number of de-industrialised European cities, especially in the UK, have constructed new images as 'cultural cities' by linking cultural industries and regeneration around the notion of 'cultural industry quarters' (CIQs). However, such experiments had not been synthesized into a conceptual or operating policy framework.1 Chapter 5 is the outcome of a consolidation of the academic literatures on the geography of cultural economy, related gentrification processes, and cultural SME led regeneration. Further information sources included government studies, websites dedicated to the encouragement of cultural industry and seven examples of CIQs, mostly UK, useful as reference points. The chapter concludes with a comprehensive and integrated set of policy objectives and measures for local authorities, in particular spatial planners, interested in the design, implementation, monitoring and evaluation of CIQ initiatives. Given my theoretical approach to development planning, the normative assumption of the framework is that planners should conceive of inner city regeneration led by cultural SMEs as a 'social contract' that protects and advances an equitable standard of living for the most vulnerable persons. Moreover, cultural SME led regeneration must acknowledge and balance diverse political and social interests in the 1 Landry and Bianchini (1995) drew together an impressive list of strategic goals for embedding creativity in urban and regional development from their extensive survey of urban policies and initiatives. However, these illustrate the immense scope of the task rather than objectives for intervention at the local-area level and are not specific to the roles of economic, physical and social regeneration. Chapter 5 Cultural Industry Quarters: Lessons from Europe. 35 •i inner city for CIQs to be developed as authentic 'articulated moments iri networks of social relations and understandings' (Hillier 1998) capturing 'who people are, what they do, and where they are going'. I focused on the objectives of municipal authorities, cultural producers, cultural industry intermediaries (e.g. job placement services), 'new middle class' users (Ley 1996) and low-income populations. Six areas of common ground emerged from the literature review: Table 5.1 Themes in Cultural SME-Led Regeneration Regeneration Role j Regeneration Themes Cultural economic i 1. City image and regeneration; 2. Spatiality of the new cultural economy; 3. Governance of cultural S M E growth; Spatial planning 4. Built environment for cultural S M E ; 5. Competition for inner city space; Social inclusion/community development 6. Symptoms of gentrification; 7. Building community in CIQs. Before these themes are examined at length, a few overall qualifications need to be made about the policy framework. II. SCOPE AND LIMITATIONS OF THE POLICY FRAMEWORK Patterson (1996) has defined the goals in Table 5.2 as best practice guidelines for strategic approaches to urban regeneration: Table 5.2 Regeneration Framework Criteria i Policy Element Intervention Objectives j 1 Policy Goals or Mechanisms • Have a clearly articulated vision and strategy; • Specify how chosen mechanisms and resources would help to achieve the long-term vision; • Clearly integrate the different economic, environmental (physical) and social priorities of the regeneration strategy; • Link explicit regeneration policies to wider mainstream programmes in housing, education, transport, health, and finance constituting the implicit urban regeneration strategy; • Specific the relationship between short, medium and long- • term goals. Monitoring and Evaluation j • Establish economic, physical and social baseline conditions before the policy intervention to assess change over time; • Have agreed milestones of progress; • Monitor the outputs and outcomes of the strategy and Chapter 5 Cultural Industry Quarters: Lessons from Europe J> 36 [ evaluate their impact. '' Actors | 1 | 1 • Identify the intended beneficiaries of the strategy and the ways in which they will benefit; • Identify the level of public, private and community resources, financial and in kind, that would be committed over defined periods of time; • Specify the role and contribution that the public, private and community partners would make to regeneration; • Integrate, vertically and horizontally, the policies, activities and resources of partners in a comprehensive; strategy. Adapted from Carter (2000) after Patterson (1996) In my identification of objectives and measures, I was sensitive to the necessity of partnership in strategies for regeneration and developing a thriving cultural industry sector (Carter 2000; Fleming 1999). Most of the initiatives cited here are the outcome of collaboration not least because of piecemeal and unpredictable funding sources for 'culture' and social policy. For instance, Manchester's Cultural Industries Development Service (CIDS),is considered a model of excellence for metropolitan services supporting new cultural economy, including the sector's rebirth of inner city fringe areas (Fleming 1999). However, institutional arrangements were beyond the scope of the conceptual and analytic framework I defined. Roles and responsibilities of actors are highly specific to context, as are their respective policies, capacities, activities, and politically earmarked financial commitments. For this reason, cooperation and co-ordination goals outlined by Patterson and criteria for assessing their achievement across policy sectors, government departments, agencies, private enterprise and the voluntary sector have to be determined by local, regional and national governments. On a related note, the comprehensive framework does not attempt to define ideal linkages between economic, physical and social regeneration policies and other programme areas, though some housing and education objectives and measures are recommended. Finally, the framework is not directed at 'beneficiaries'. While concrete benefits are the desirable outcome of public intervention, decision-making theories and models that utilise the democratic language and stance of multi-stakeholder processes are more suited to the spirit of regeneration partnerships. 2 It must be noted that local governments cannot deliver a CIQ project unilaterally. Regional and/or national government support is essential for financing and the successful achievement of policy objectives falling under more than one jurisdiction. Chapter 5 Cultural Industry Quarters: Lessons from Europe J> 37 Accordingly, I chose to adopt social contract theory, specifically Rawls' theory of justice pre-established as a school of thought and actual approach to practice in public policy studies. i These caveats aside, the complete policy framework lays out a common purpose. The comprehensive vision of economic, spatial planning and social inclusion objectives that resulted from this literature review could structure short, medium and long-term plans for cultural SME led regeneration. It may also serve as a tool for monitoring and evaluation of baseline conditions and progress towards local' area goals based on economic, spatial and social impact assessments unique to each CIQ endeavour. .i III. REGENERATION ROLES AND THEMES a. Cultural Economic Role i. Theme #1 - City Image and Regeneration In the climate of global inter-urbanism, city image has become a critical marketing strategy over the last decade (e.g., Evans 2001; Landry and Bianchini 1995; Scott 2003; Short et. al 1993). A number of municipal authorities in Europe suffering from catastrophic de-industrialisation in the 1970s and 1980s re-packaged themselves as 'cultural cities' throughout the 1990s (Bianchini and Parkinson 1993; Evans 2001; Landry and Bianchini 1995; Scott 2003). One highly publicized arena for urban centres to showcase their talents is the annual 'European City of Culture' competition. Glasgow, winner in 1990, focused on cosmopolitan high-arts facilities and resident groups, e.g. Royal Glasgow Concert Hall and the Scottish National Orchestra, along with a year long array of international calibre events attracting considerable tourism revenue (Booth and Boyle 1993). Taking a quite different path, Dublin, European City of Culture 1991, highlighted the historical and cultural value of transforming its formerly industrial Temple Bar district into a CIQ hosting cultural SMEs, and anchored by an arts/cultural centre (McCarthy 1998; Montgomery 1995). 'Cultural city' branding has since become a trend. For example, the image of Bilbao, Spain, is now synonomous with the Gehry-designed Guggenheim Museum, and the City hopes to capitalise on a nearby incipient 'bohemian quarter' in the inner city fringe to deepen its post-industrial identity (Lorente 2000; Vicario and Martinez Monje 2003). Chapter 5 Cultural Industry Quarters: Lessons from Europe 38 Bilbao is the latest cultural city to emerge in Europe that is forging linkages between cultural production and regeneration by planning and developing CIQs. Other notable examples are Nottingham's Lace Market, home to fashion design, and two music industry agglomerations in Manchester (Northern Quarter) and Sheffield (Cultural Industry Quarter) (Brown et. al 2000; Crewe and Beaverstock 1998; Fleming 1999). Table 5.3 provides an illustrative profile of seven CIQs, primarily in old industrial UK cities. Success of regeneration areas like these depends in part on the spatiality of cultural SMEs. ii. Theme #2-Spatiality of the New Cultural Economy As a post-Fordist system, cultural production is tightly bound to industrial geography. Scott (1999, 2000, 2001) has drawn attention in the literature on new economy to the tendency of inter-dependent firms for location in close proximity due to substantial benefits gained from clustering. These may include: reduced costs of exchange (e.g. transport); accelerated rates in circulation of capital and information between firms; and increased collaborative interactions that underpin and largely determine creativity and innovation in post-Fordism. The latter point underscores the necessity of dense networks of social capital for production to yield increasing returns, indicating that innovation is more probable in the context of traditional city-regions, i.e. ones with high population density (Hall 1998). Agglomeration facilitates the sharing of specialised materials, technical expertise, information and knowledge bases. In his extensive research, Scott has observed that post-fordism is characterised by the exchange of traded and non-traded3 inputs in transactions between individuals and firms with variegated areas of specialisation, e.g. the integration of metal physics and material and process engineering in the fabrication of digital cameras. What's more, industry-specific labour markets and education and training institutions follow the clustering of productive functions, therein forming pools of talent and resources that can further encourage innovation. Perhaps more importantly, the flow of inputs between SMEs, job search/recruiting intermediaries and educational bodies can foster industrial communities and business cultures. Acknowledging Marshall's (1919) concept of TNon-traded inputs are transactions in which goods are exchanged (e.g. business expertise) without monetary payment. Chapter 5 Cultural industry Quarters: Lessons from Europe - ^ 3 9 'industrial atmosphere', Scott (2000) contends the agglomeration of industry, support services and research and development frequently results in socially constructed business culture attributes. Typical assets are professional vocabularies,, mature transaction processes that continuously generate learning effects, knowledge, and performance boosting governance structures (e.g. urban and regional economic councils). Thus, the significance of social capital is emphasized in the literature4. Furthermore, Scott (2000) has concluded that innovations are the result of spatially dependent systems of organisation. Creativity occurs at three spatial levels through: intra-firm collaborative labour; inter-firm transactions exchanging traded and non-traded inputs; and industrial communities transformed into 'learning regions' wherein the continuous circulation of knowledge encourages creativity which, in turn, generates novel products. Innovation in new cultural economy is the outcome of this general reliance on spatiality. Agglomeration enables collaboration between production fields, e.g. web-site design and on-line publishing, characteristic of the cultural industries. Achievement of optimisation can only occur through face-to-face processes of creativity essential for cultural product innovation that can provide a competitive edge in international trade (Hutton 2000, 2003; Jeffcutt and Pratt 2002; Scott 1999, 2001). Moreover, the response of SMEs to external pressure for new aesthetic and symbolic goods hinges on their capacity to combine and recombine technical information, expertise, talents and material inputs, i.e. the exchange of 'cultural capital'. The latter makes possible the execution of projects reliant on a cadre with specialised skills and knowledge, e.g. the production of a recording artist. Other forms of social capital such as sharing information about market opportunities can also minimize risk and build trust (Lovatt et al. 2000; Scott 2001). Furthermore, interpersonal relationships are a conduit for communications between industries about networks of talent. For instance, a recent study by Brown et al. (2000) indicates that Manchester, UK, is a 'networked city' in which information about jobs 4 For instance, Scott points to literature on production practices in Italian ceramic tile industries that indicate interactions between firms at different levels in the social division of labour are critical to innovation. See Russo, M. (1985) 'Technical change and the industrial district: the role of inter-firm relations in the growth and transformation of ceramic tile production in Italy1, Research Policy, 14, 329-43. Chapter 5 Cultural Industry Quarters: Lessons from Europe > 40 Table 5.3. Seven Examples of Inner City CIQs in Europe CULTURAL INDUSTRY QUARTER City Description References j Northern Quarter (NQ) Manchester j I | Description: • Between main retail core and inner city residential area; • 'Working quarter' of small, independent traders making high quality, unusual products; • Cultural SMEs focused on music industry: studios, retail stores but also includes clothing boutiques, older pubs, leisure outlets and textile warehousing & manufacturing; • Affordable residential and business & office spaces; • Flagships: alternative music venues and bars; • Funded by European Structural Fund, City sponsorship of workspace, national Enterprise Allowance in social security. Actors: 1. Manchester City Council: commissioned a consultina firm. Urbanistics, to draft Northern Quarter Regeneration Strategy (1993). The City recently had the NQ local area plan updated in 2003. 2. Northern Quarter Association (NQA): A local community organization consisting of traders, residents and workers formed to improve NQ's economic, social, cultural and physical environment. Created in 1993, later disbanded. 3. Northern Quarter Network (NQN): Currently active organization promoting the clustering of cultural SMEs and virtual networking in the cultural industry sector; 4. Music Industry Network (MIN): now defunct lobby aroup advancing the national and global success of this sub-sector; | 5. Cultural Industries Development Service (CIDS): laroe-scale intermediary set up by the City's Economic Initiatives Group. Its role is to act comprehensively as a gateway of information I on cultural SMEs, a public-private broker and the 'cultural chamber of commerce'. Mandate and activities are ongoing. http://www.DODtel.orq.uk/nqn / httD://www.manchester.qov. uk/reqen/northernqtr/ Brown et. al, 2000. Fleming, 1999. Chapter 5 Cultural Industry Quarters: Lessons from Europe > 41 I 6. Manchester Institute for Popular Culture (MIPC): cultural studies think-tank at Manchester Metropolitan University. Commissioned by City Council in 1999 to conductan inventory of local cultural S M E s for a new action plan. '' I Cultural Industry Quarter (CIQ) ! ! . . • : l ' I Sheffield | i Description: | • Inner city fringe district close to railway station; • Music venues, bars and nightclubs, film, TV, video & radio, \ new media design, arts, crafts and traditional industries, e.g. | metalwork. | • Also hosts some science & technology activities; • Office and commercial space in heritage buildings; • Affordable selection of housing including live/work, student flats, mixed-use buildings, Victorian and Georgian properties preserved and refurbished; • Flagships: The Workstation, Red Tape Studios, Showcase Cinema, the National Centre for Popular Music (NCPM); • Funded by Sheffield City Council, The European Regeneration Development Fund (ERDF), UK's Single Regeneration Budget (SRB) and the National Lottery Fund. Actors: - -1. Sheffield City Council: initiated CIQ action plan & owns flagships; stewards Townscape Heritage Initiative (THI) in j partnership with CIQ Agency; 2. CIQ Agency: intermediary non-profit managing local area. http://www.ciq.orq.uk/ http://sccpluqins.sheffield.qo v.uk/urban desiqn/quarters cultural.htm Brown et al, 2000. Fleming, 1999. The Custard Factory I i • Birmingham | I Description: • 5 acres of riverside factories built 100 years ago by Alfred _ | Bird, the inventor of custard; • Home to 500 artists and cultural SMEs , antique shops, art | galleries, a dance studio, cafes, a bar and nightclub, shops, j restaurants, meeting rooms, support services; • Flagships: Scott House (workspace), historic library, theatre; • Future plans: live/work, small luxury hotel, exhibit space; • Funded by private owner, English Partnership fund, European Structural Fund. www.custardfactorv.com Fleming, 1999 j I Chapter 5 Cultural Industry Quarters: Lessons from Europe > 42 1 Actors: 1. Birmingham Citv Council: supports SPACE reaeneration plan; 2. Society for the Promotion of Artistic and Creative Enterprise (SPACE): orqanization set up by private owner of site. I Nottingham Lace Market 1 Nottingham Description: • Southern fringe of city centre, late 19th-mid 20 th century hub for global lace industry; • Designated a Conservation Area by City in 1969; • Redevelopment hastened from 1989 onwards; • Fashion designers & boutiques; arts & media, architecture, independent scene shops, art-house cinema, clubs, services; • Also residential and office developments; • Flagships: Nottingham Fashion Centre, media centre & cinema; ' • Funded by private sector, Nottingham City Council, European Structural Fund. Actors: 1. Lace Market Development Company (LMDC): a partnership ! between Nottingham City Council and the private sector that j plans and coordinates the area's redevelopment. j Crewe & Beaverstock, 1998. i Fleming, 1999. Temple Bar Dublin Description: • 28 acres in heart of Dublin City; heritage & archeological site; • Temple Bar Area Renewal and Development Act (1991); • Physical redevelopment completed by 2001; • Home to 500 cultural SMEs & 2500 residents; • Flagships: 14 cultural centres dedicated to film, music, theatre, design, visual arts and children's cultural activities; • Funded by Dublin City, private sector investment & national government sponsorship. Actors: 1. Temple Bar Renewal Ltd: policv makinq bodv established by Prime Minister's office with legal powers to grant land use permits and allocate tax-based incentives; httD://www.temple-bar.ie/index.aso Fleming, 1999 Montgomery, 1995 Chapter 5 Cultural Industry Quarters: Lessons from Europe >' 43 2. Temple Bar Properties Ltd.: manages all publicly owned .1 property assets; j 3. Traders in the Area Supporting the Cultural Quarter: community group providing input into area action plan. -The Chocolate Factory ) (Wood Green Cultural Quarter) i i London Description: | • Part of 'Haringey Heartlands' 50 acres of de-industrialized | land; 1 • Refurbished Bassetts sweets factory; | • Contains artists, designers, film-makers, a large photography 1 studio, recording facilities, support services; • Flagships: Wood Green Cultural Quarter hosts a large gallery, a school of fine arts; a theatre school and the Chocolate Factory; • Funded by private developers, Haringey Borough Council, European Structural Fund. Actors: 1. Harinqev Metropolitan Borough Council: manages local area; I 2. Private developers: own and regenerated the Bassetts \ project. Fleming, 1999. I i j Bilbao La Vieja i ! Bilbao 1 i Description: • Incipient 'bohemian quarter' in area adjacent to new j Guggenheim Museum • Cultural quarter is major focus of regeneration plan; j • Artists, designers, ethnic and working class groups; | Actors: 1. Bilbao Citv Council: quidina area renewal; hoping to link new I 'cultural city' image partly to bohemian community & district; [ Vicario and Martinez Monje, 2003 | Chapter 5 Cultural Industry Quarters: Lessons from Europe 44 contacts, and funding avenues is passed between interested professionals affiliated with the music industry from retailers to magazine publishers, journalists and photographers. Networking is further enhanced in the frequent collapse of work and leisure in the new cultural economy including capital channelled through the night economy (nightclubs, bars, restaurants and cafes), when business is conducted while associates are also socialising (see Crewe and Beaverstock 1998). Additionally, development of a 'learning region' may occur in the cultural industry sector once producers become anchored geographically. Two examples of communities of learning that Scott (2000) cites are the artistic/intellectual circles Of late 19th/early 20 th century Paris and the 'film colonies' in Hollywood converging writers, actors, directors and skilled technicians. Close proximity of industry-specific labour markets and education/training institutions can create an 'industrial atmosphere'. For instance, film schools institutionalise a normative structure for the apprenticeship of fledgling screenwriters etc. by perpetuating professional traditions, standards, and conventions but also encourage creativity through social learning. The CIQs referenced by this study developed in cities with support from universities and technical colleges. Nottingham, a growing UK centre for fashion industry boasts an acclaimed Fashion and Textiles department at the local university and Nottingham Fashion Centre, a government-owned training institution. Elsewhere in Britain, Sheffield's Northern School of Media promotes local linkages between the educational and economic development of the city by its regular input of well-trained personnel into print media, design, film, television and multi-media fields of production. Manchester has a strategic approach to expanding SMEs built on research and development. Manchester Institute for Popular Culture, a cutting-edge think-tank at Manchester Metropolitan University, was commissioned by City Council in 1999 to execute an in-depth inventory of local cultural enterprise as a background study for the drafting of an action plan to develop the sector. Norms and practices initiated by the various forms of developmental infrastructure are institutionalised by informal, small and iterative collaborative exchanges that structure the new cultural economy, i.e. through sub-sector synergies and linkages. Social dynamics are essential to keep an atmosphere of creativity, i.e. a Chapter 5 Cultural Industry Quarters: Lessons from Europe J> 45 •i 1 'creative buzz', alive in communities of cultural workers, and are strongly dependent on a governance structure which can facilitate cultural SME growth. iii. Theme #3 - Governance of Cultural SME Growth Development of the cultural SME sector and quarters is often structured and supported by intermediary agencies, networks and governance frameworks. Small- and large-scale services play a pivotal role in encouraging cultural industry growth, and reconstructing the image of old industrial cities as vital centres of culture. Services have been regional, citywide and/or industry-specific in their scope of functions. Some are privately financed and run by non-profit organisations with ties to enterprise; others are government arms, or public-private partnerships. Activities range from placement and business advice to property development to stewardship of strategic plans linking cultural SMEs and regeneration. Intermediary services at the most basic level are available to cultural industries in UK cities. Two examples are the delightfully named Gustard Factory (Birmingham) and Chocolate Factory (Greater London). Seeing the Light (STL), a development agency under the roof of the former complex, is a public-private partnership offering information on Survival strategies, professional development, industry events and publications (Fleming 1999). A group called the Learning and Exchange Centre, part of the Chocolate Factory, also delivers training and support programmes and its mandate uniquely targets socially excluded persons (i.e. unemployed, ethnic minorities) in the new cultural economy. Similar facilities are specific to industries. Brighton's Lighthouse, a training and production centre specialising in media provides courses and digital-arts workspaces to artists, photographers and video-makers. This project is co-runded by a local and national arts council, the British Film Institute and the City of Brighton. Nottingham Fashion Centre is also an example of industry-specific support services. It is as an intermediary for the region-wide development of the fashion industry through the provision of courses, communal machinery and a resource library and database (Crewe and Beaverstock 1998). Finally, Liverpool Design Initiative, an analogous facility, is a 'one-stop-shop' for design SME delivering everything from advisory sessions on sources of financing to a skills database and slide library of local and regional designers (Fleming 1999). Additionally, it houses an innovative service called Chapter 5 Cultural Industry Quarters: Lessons from Europe 4> 46 the Moving Image Touring and Exhibition Service (MITES), co-funded by Liverpool City Council and the regional arts board. MITES, supports shows around the country, trains artists, curators and gallery staff in state-of-the-art exhibition technologies for digital arts and the moving image, and gives subsidised access to technical equipment as well as installation expertise. Large-scale intermediary bodies have strategic economic objectives. For example, the cities of Sheffield and Manchester have established organisations to manage the vision and action plans for their respective music districts, Cultural Industry Quarter and Northern Quarter (Brown et al. 2000; Fleming 1999). Sheffield's Cultural Industry Quarter Agency (CIQ Agency) has no designated powers to manage the CIQ strategy but does function as a broker between public and private actors to facilitate achieving desired goals. Public-private partnerships are directed toward six broad economic and land use policies: competitive business; adequate workspace; visitor experience (tourism campaigns and CIQ physical improvements like architectural detailing); strengthening a community of learning through developing linkages between education/training institutions and cultural SMEs; transit and transport (i.e. access to the CIQ); and urban strategies (e.g. supporting networking, marketing Sheffield as a 'cultural city'). In Manchester, the Cultural Industries Development Service (CIDS) has more teeth. Developed by Manchester City Council's Economic Initiatives Group, partnered with other municipal agencies and departments, arts boards, higher education and a private sector economic development group, this intermediary has a complex role. CIDS has served comprehensively as a gateway for information, a public-private broker and a cultural chamber of commerce working to raise the profile of cultural SME across the region and advocating strategies for continued growth. It is a citywide support service of a network of outreach centres each with a sub-sector or thematic specialisation, e.g. new media and popular music, maintained as a cohesive framework to prevent the isolation of agencies to SME groupings or geographic locations. For example, Manchester's Music Industry Network (MIN), a now defunct lobby group that promoted national and global linkages to local musicians to access job opportunities and attract investors, benefited from the networking capacity of CIDS. This has also been true for a voluntary group of residents Chapter 5 Cultural Industry Quarters: Lessons from Europe - ^ 4 7 •i and businesses that guided stewardship of Manchester's music district, through an integrated plan "...to seek, on behalf of local traders, workers, residents and users, to substantially improve the i economic, social, cultural and physical environment of the Northern Quarter" (after Fleming 1999). The agency ran a business support and training centre, like smaller-scale intermediaries above, but also functioned as a regeneration instrument. It linked cultural industries to land use issues, through measures ranging from local design of street furniture to protection of cultural SMEs in property development, including affordable housing for producers. This spatial role of regeneration is the second focus of discussion. iv. Conclusion - Cultural Economic Policies I began this literature review on cultural SME led regeneration with a set of three research questions. The first asked: • What policies could achieve cultural industry growth in the inner city? Based on the above narrative, we can conclude the following cultural economic policies will greatly assist local governments in developing the cultural industry sector sufficiently to lead regeneration around the concept of CIQs: 1. Cultivate a 'cultural city' image associated with cultural SME growth and inner city CIQs; 2. Incubate the agglomeration of cultural SME and encourage an 'industrial community' or 'community of learning; 3. Establish a governance structure for cultural SME growth. Accomplishing these objectives will require a number of goals and short, medium and long-term policy research for monitoring and evaluation purposes. Cities interested in CIQ initiatives must consider their capacity to: (a) market a new 'cultural city image'; (b) develop strategic and action plans to manage cultural SME growth; (c) attract sufficient investment; (d) produce or import a wide range of cultural workers; (e) offer training and education for employment in the sector; (f) support research and development; (g) facilitate a night economy in downtown areas; (h) acquire and develop property to house cultural industries; (i) co-ordinate and deliver services to support cultural enterprise; (j) enter into public-private partnerships; (k) participate in a 'cultural chamber of commerce'; (1) lobby for sponsorship of cultural industries in regional and national Chapter 5 Cultural Industry Quarters: Lessons from Europe > 48 Table 5.4. The Cultural Economic Role of Cultural SME-Led Regeneration: Objectives, Goals and Indicators CULTURAL ECONOMIC Mechanisms POLICY [Objectives] [Goals] Monitoring and Evaluation [Indicators] I • Cultivate a 'cultural city' image 1 associated with cultural SME j growth and inner city CIQs I . • Launch 'branding' marketing campaigns; • Cultural industry share (%) of urban economy; • Cultural S M E sector revenue in dollars per year; • Number of CIQ facility users (e.g. media centres, recording studios, galleries, museums, nightclubs); • Incubate the agglomeration of cultural SMEs and encourage an 'industrial community' or 'community of learning' i • Attract investment; • Recruit highly skilled workers; • Build educational/training infrastructure (e.g. universities, design schools, film institutes); • Utilise research and development capacity; • Build sub-sector synergies and linkages; • Secure a night and day economy (nightclubs, restaurants, cafe-bars, late shopping, etc.); • Level of investment in dollars per year; j • Number employed in cultural industries; • Number of institutions educating in cultural fields; • Number of programmes to train cultural workers; • Number of cultural industry research activities; • Input regarding information, materials, skills and knowledge passed through networks (surveys, etc.); • Number of subcontracts for other cultural S M E ; • Number of venues to consume activities/goods; • Establish a governance structure for cultural SME growth | • Identify a vision and action programme; • Organise cultural industry intermediaries; • Deliver services to cultural S M E workers; • Partner with voluntary and private sectors; ; • Broker public-private-third sector partnerships; ; • Set up a 'cultural chamber of commerce'; • Lobby on behalf of cultural producers. • Development policy, strategic and project plans; • Number and variety of intermediary agencies; • Number and variety of cultural S M E services; • Level of public investment in dollars per year; • Number and variety of partnerships brokered; • Level and range of cultural S M E membership • Amount of promotional literature, events attended, meetings organised. Chapter 5 Cultural Industry Quarters: Lessons from Europe > 49 i i deve lopment p lann ing . W i t h o u t the abi l i ty to secure relevant mechani sn i s o n this list, munic ipa l i t i e s w i l l fai l i n attempts to incubate S M E s i n o l d industrial zones and f o r m C I Q s . i , b. Spatial Planning Role i. Theme #4 -Built Environment for Cultural SME Strategic p lans for cul tural S M E l e d regenerat ion w i l l depend o n m o r e i n f o r m a t i o n about spatial, p h e n o m e n a than the cul tural e c o n o m i c geography o f cities. L a n d - u s e p l a n n i n g systems h a v e a l i m i t e d capaci ty to i n d u c e p r o d u c t i v i t y , but they c a n support cul tural S M E s t h r o u g h regulatory and b u i l t env ironments that encourage i n n o v a t i o n b y fac i l i ta t ing agg lomerat ion , and industr ia l c o m m u n i t i e s . A pattern o f cu l tura l S M E s spec i f i ca l ly c lus ter ing i n the inner c i ty heritage districts o f F ir s t a n d T h i r d W o r l d industr ia l cities is d o c u m e n t e d as o c c u r r i n g over the last decade ( E v a n s 2001; H e l b r e c h t 1998; H u t t o n 2000; Post 1999; Scott 2000 , 2001; S m i t h 2003 , Y e o h a n d P e n g 2000) . T h e r e appears to be a var ie ty o f reasons w h y . F i r s t , m a n y cul tural S M E s need premises near cl ients i n the central bus iness district so as to meet tight deadl ines ( H u t t o n 20p0 , 2003; Post 1999). S e c o n d , a p p l i e d des ign services , e.g. architects a n d inter ior des igners , seek out o l d industr ia l b u i l d i n g s (e.g. e m p t y warehouses o r factories) or p o s t - m o d e r n repl icas o f h i s tor ica l per iods as m e d i a t h r o u g h w h i c h to showcase their sk i l l s and p r o v i d e the k i n d o f bu i l t e n v i r o n m e n t their c l ientele prefer ( B r a i l 1994; H e l b r e c h t 1998; H u t t o n 2000; Y e o h a n d P e n g 2000). C o n s e q u e n t l y , the g r o w t h o f cul tural S M E s is rel iant o n a f lex ib le attitude towards industr ia l l a n d use a longs ide p r o v i s i o n o f c h o i c e t h r o u g h a m i x t u r e o f d iverse w o r k s p a c e opt ions ( E v a n s 2001) . F o r example , a L o n d o n S c h o o l o f E c o n o m i c s paper (Post 1999) o n inner c i ty i n c u b a t i o n o f cul tural industries i n L o n d o n , U K , reported space needs s p a n n i n g f r o m n o n - g o v e r n m e n t sponsored co-operat ives to rented m a n u f a c t u r i n g (e.g. furniture des ign) faci l i t ies to private o w n e r s h i p o f w o r k / l i v e studios. Spat ia l pol ic ies that protect heritage b u i l d i n g s and landscapes are also cr i t i ca l , a l though the recons truct ion o f o l d into m o d e r n spaces s h o u l d integrate h i s tor i c structures w i t h c o n t e m p o r a r y des ign and architectural deta i l ing to evoke a l ive , not m u m m i f i e d , cu l tural spaces ( L a n d r y a n d B i a n c h i n i 1995; M c C a r t h y 1999; M o n t g o m e r y 1990, 1995). Chapter 5 Cultural Industry Quarters: Lessons from Europe >' 50 In Europe, zoning has permitted the agglomeration of cultural SMEs in industrial heritage districts of the inner city or its fringe. The Custard Factory Quarter and Chocolate Factory are two illustrative examples. The first is the single largest hub of cultural industry in Europe located in and around an old Birds custard factory in an under-populated inner city area (Fleming 1999). A public-private partnership, it was planned as a comprehensive economic, physical and social regeneration project. The landmark building is preserved to host use that includes design and recording studios, a fine arts university programme, placement and business advice services for graduates and student flats. Similarly but on a smaller scale, the second is a rebuilt Bassetts sweets factory leased to artists, designers, filmmakers and photographers alongside training/business start-up information centres and venues for food and entertainment. Where industrial zoning is flexible, a highly effective way to sustain the 'creative buzz' of CIQs is to invest as much capital as possible into physical development thus protecting buildings that cultural SMEs prefer (Crewe and Beaverstock 1998; Montgomery 1995). Tax incentives and public subsidies to cultural SMEs and real estate developers can help to capture, and to maintain, entrepreneurial interest. When Ireland's national government rehabilitated Dublin's Temple Bar, large tax incentives were applied to renovations and new construction for cultural industry leasing production, office and commercial space and property owners (Montgomery 1995). Cities across the UK have brokered European Structural Fund subsidies for capital projects including property development to support cultural industries as a whole or certain sub-sectors (Fleming 1999). SMEs in the incubation stage have greatly benefited from local and national government loans and grants that cover start-up rental costs, or ongoing subsidies for workspace. The city of Bologna, for instance, funded the wages of young avant-garde designers doing internships with firms during the 1970s and 1980s, and France has a long history of state-sponsored studios for artists (Bloomfield 1993; Evans 2001). From the late 1980s onwards, cultural entrepreneurs in Manchester have taken advantage of the U K Enterprise Allowance Scheme, a grant that is tied to personal social security for newly self-employed persons trading from premises and indirectly secures tenure for SMEs (Brown et al. 2000). 1 Chapter 5 Cultural Industry Quarters: Lessons from Europe J> 51 Local authorities or cultural industry intermediaries can also invest in property acquisition and development. Sheffield is heavily involved in protection of space for cultural SMEs. Not only did their City Council co-develop The Workstation, a five-storey complex of offices, workspaces and exhibition space that hosts new media, design, film and TV companies and recording studios but owns Red Tape Studios, a( music facility which offers reduced equipment rentals for new artists and training courses. Showcase Cinema, a large art-film venue, and the National Centre for Popular Music (NCPM), a flagship development that features interactive exhibitions, education projects, a live music venue and cafe-bars, are each financially backed by Sheffield City Council (Brown et al. 2000; Fleming 1999). These four government-assisted initiatives are the backbone of the 1 i Sheffield Cultural Industry Quarter. i Intermediary services that purchase and develop property have been public and private. On one hand, the Custard Factory and the surrounding industrial lands were bought by a private agency, The Society for the Promotion of Artistic and Creative Enterprise (SPACE), although the project was partly funded by the national government. On the other, two state-owned companies oversaw the regeneration of Temple Bar, namely Dublin Temple Bar Renewal Ltd. (TBRL) and Dublin Temple Bar Properties Ltd. (TBPL) (for details see McCarthy 1998; Montgomery 1995). The former, a policy-making body, was established by the Prime Minister's Office. TBRL was legally armed with discretionary powers to grant land use permits for appropriate mixed-use (e.g. cultural enterprise, tourism services) and allocate tax-based incentives. TBPL has the purview to acquire, service, develop and release property in Temple Bar for the purposes of rehabilitation, conservation and redevelopment and to cross-subsidise any cultural SMEs in need of leasing or renovation cost reductions. Temple Bar Renewal Ltd. Board steered the project, which included members from Dublin Corporation (city), the tourism board, national government departments and cultural SMEs trading in the local area. A general danger to the incubation and long-term success of cultural industry quarters is that rises in rental costs and property values follow public and private sector reinvestment in old industrial zones. This threatens the stock of production, office and commercial space available to cultural entrepreneurs unable to afford high leasing prices or Chapter 5 Cultural Industry Quarters: Lessons from Europe •> 52 ownership (Montgomery 1995; Ley 2003; Post 1999; Zukin 1988). Competition with other types of enterprise, e.g. finance, real estate and insurance firms, for inner city space is possible as a source of friction, but there is no data in the literature on CIQs that demonstrates this is true. What is evident is middle class demand for affordable housing near the central business district is competitive with use of inner city or inner city fringe districts for cultural economic activity. ii. Theme #5 - Competition for Inner City Space Competition over the reconstructed landscapes of the metropolitan core may be an obstacle to the feasibility of CIQs. Liberal professionals (e.g. social workers, educators, journalists), rich in cultural capital (Ley 2003; O'Connor 2000), and/or who idealise the social cohesion of working-class communities (Butler 2003; Hamnett 2003) tend to choose the inner city as a place to live. Evidence for this tendency has a long history beginning with Ruth Glass's seminal 1964 book, London: Aspects of Change, that recorded social geographic impacts of the arrival of a new 'urban gentry' on rundown and impoverished Victorian and Georgian residential areas of inner London. Another compelling reason for the middle-class to occupy inner cities is the low cost of severely devalued land and property (Smith 2003). Movement of Ley's 'new middle class' (1996) into depreciated areas of the central city is not always the manifestation of intellectual or political liberalism. Caroline Mill's (1998) analysis of the meanings attached to a regenerated section of the inner city fringe of Vancouver, Canada, found the settlement of upwardly mobile groups was distinctly compelled by the lure of 'urban living' or an 'urban lifestyle'. Similarly, a UK research study (Butler 2003) of Barnsley, London, reports that the decision of middle-class families to live in a working-class inner city location, full of 'character' houses, was motivated by the quest for a 'metropolitan habitus', i.e. spatial intimacy to the energy, excitement and culture (e.g. galleries) the downtown core of a cosmopolitan city offers. Not surprisingly, relatively affluent renters and homeowners also covet heritage buildings for aesthetic reasons (Butler 2003; Glass 1964; Hamnett 2003; Post 1999; Smith 2003). Demand in some cities is phenomenal. For instance, stratification of older houses into flats was the single largest source of new dwellings in Greater London by the late 1980s, Chapter 5 Cultural Industry Quarters: Lessons from Europe J> 53 prompting many developers to begin converting unused warehouses, factories and offices into high-end residential properties (Hamnett 1989; Hamnett and Whitelegg 2000; Post 1999). This pattern continues in that global city-region (Hamnett 2003). As new middle-class move into the inner city, the value of efficiency that drives property development regularly clashes with non-economic attachments to place of low-income5 and ethnic populations (Butler 2003; Zukin 1995). First of all, those already marginal frequently become financially blocked from lease and ownership of buildings and in some cases, e.g. the homeless, from access to public space (Kilian 1998; Zukin 1995). While social costs are under-researched (Atkinson 2003; Slater 2003), there is a consensus that many poorer residents with leased tenure are consequently displaced, often without other realistic options for housing. The most troubling social rationale behind displacement is captured by Smith's (1995) notion of the 'Revanchist City'. This theory hypothesizes that the middle classes perceive the inner city as an uncivilized place rife with serious crime, violence and danger associated with the 'otherness' of minorities, vagrants, unemployed and working class people and queer culture. Thus, they think their control of devalued territory is justified. The notion of human existence in the inner city 'frontier' as solitary, poor, nasty, brutish and short, to appropriate Hobbes' turn of phrase, is, however, perhaps more familiar to the ghettos of the United States Smith researched than a European policy context. 'Culture' can also be a source of tensions. Some 'ways of life' may be encouraged at the expense of others in the process of rehabilitation and reconstruction. Architectural policies (e.g. preservation of standard Victorian structures but not 'ethnic' ones) are potentially conflictive. Less transparent are conflicts over images associated with locales by planners and developers versus citizens, or even cultural producers. Though the former tend to look at urban land as simply space to develop for profit, users see the same location as a 'home' and 'community' (Hillier 1998). The economic threat of rising property prices that can damage social cohesion in CIQs is manifest in urban structural change that is similar in its characteristics to 'gentrification'. 5 This is not at all to disregard the pressing economic reasons (e.g. cheap rent, proximity to work and public services like job placement agencies) for which socially excluded groups locate in the inner city. Chapter 5 Cultural Industry Quarters: Lessons from Europe 54 iii. Conclusion - Spatial Policies My second 1 question regarding linkages between cultural industries and regeneration around the concept of cultural industry quarters was concerned with land use and urban design: • What policies could address the space needs of cultural S M E s , and other inner city users? Based on the above narrative, we can conclude the spatial policies below will help to direct local government efforts to balance political and social agendas in regeneration of the inner city, including the new middle class and low-income groups, cultural SME and support services: 1. Design a regulatory and built environment protective of the spatial needs of cultural S M E ; 2. Meet the spatial needs of other users of the inner city in CIQs. Accomplishing these objectives will be challenging for municipal authorities because difficult trade-offs between the interests of competing inner city users will be necessary. Solutions will depend on each set of political, social, cultural and historical circumstances. However, we can generally assert that cities interested in CIQ initiatives should be prepared to: (a) establish a legal entity to administer a ClQ strategic plan, as requisite; (b) adopt flexible, mixed use zoning; (c) zone CIQs heritage districts and include inner city properties as designated sites (d) protect a diversity of architectural styles; (e) mix modern and historic building and street design; (f) offer loans, subsidies, tax incentives and grants for workspace leasing, renovations and construction; (g) own and operate cultural SME facilities (e.g. workshops); (h) control industrial-to-residential conversions; (i) build a stock of social housing in CIQs; (j) give housing stipends to low income persons; (k) permit the homeless access to public space. Cultural SME led regeneration will not entirely stop the process of displacement, but can grant basic needs subsidies as compensation. Chapter 5 Cultural Industry Quarters: Lessons from Europe > 55 Table 5.5. The Spatial Role of Cultural SME-Led Regeneration: Objectives, Goals and Indicators SPATIAL POLICY [Objectives] Mechanisms [Goals] Monitoring and Evaluation [Indicators] • Design a regulatory and built environment protective of the spatial needs of cultural SME • Adopt a flexible attitude to industrial land use; § • Maintain availability of a range of space types; • Designate inner city areas as heritage districts; • List some inner city property as heritage sites; j • Adopt local area policies to mix preservation | and contemporary exterior, interior and street ' design; | • Provide tax incentives and grants for renovation j and construction purposes; 1 • Offer loans and subsidies for workspace | leasing; | • Engage in government property acquisition and development to house cultural S M E ; • Own and operate cultural S M E facilities; • Set up legal entity to oversee physical planning; • Amount of residential, commercial, office and institutional use permitted for industrial zones; • Inventory of affordable live/work, production, commercial and office space open in the inner city; • Mapping of appropriate space needed and satisfied; • Official plans for CIQs including heritage districts, mixed use zones, preservation goals, design guide; • Inclusion of inner city buildings in heritage registry; • Number of incentives and grants in dollars per year; • Number of loans and subsidies in dollars per year; • Amount of publicly owned properties to host S M E ; • Number of state S M E a n d support service facilities; • Scope and range of discretionary powers approved; • Meet the spatial needs of other users of the inner city in CIQs • Control the conversion of heritage buildings, especially industrial, into high-end residences; • Protect a diversity of architectural styles; • Build a stock of rental and non-rental social housing in the inner city; • Give housing subsidies to low-income persons; • Permit the homeless access to public space. • Number of permits for industrial-to-residential space conversions and high-end properties; • Number and range of representative buildings; • Number of affordable rental and non-rental units; I • Demand for social housing (surveys, reports, etc.); • Amount in dollars per month and year; • Police statistics on vagrancy complaints in local area. Chapter 5 Cultural Industry Quarters: Lessons from Europe 4> 56 c. Social Inclusion / Community Development Role i. Theme #6-Symptoms of Gentrification A culture led planning model of regeneration intends to harness the expression of 'who people are, what they do, and where they are going' through social transactions in the inner city context. This interpretation of cultural planning in particular targets the inclusion of marginalized groups, ethnic, gay and lesbian, bohemiah and low-income communities, in regeneration. Unfortunately, progress in steps toward the rehabilitation of inner city and inner city fringe areas often exhibits the symptoms of gentrification, a phenomenon that has absorbed urban analysts for forty years, beginning with Glass's pioneer research on inner London. Though geographers have conducted extensive empirical and theoretical studies that circumference the contours of its process (e.g. change in occupational structure, gender or race), these have fall under two recurring patterns. Gentrification is defined by (1) class-based colonisation of inexpensive residential districts and (2) rehabilitation of housing stock (Atkinson 2003). Most of the literature filters cases through what is referred to as the 'classic stage model' (Clay 1979; Gale 1980) describing a succession of early, middle or late stages of gentrification or early-stage and late-stage 'gentrifers' (van Criekengen and Decroly 2003). The typical series of events first involves artists and others with 'alternative lifestyles' (e.g. gay and lesbian cohorts) moving into impoverished, and thus affordable, neighbourhoods, but steadily the number of wealthy newcomers increases. Eventually, pre-existing low-income residents are displaced along with first wave of less affluent, subculture gentrifers. Economic and cultural explanations for gentrification are acknowledged in theoretical geography (Slater 2003). Leading economic or 'production-side' arguments, Smith's (1979, 1987) rent-gap theory hypothesizes reinvestment in the inner city is tied to the spatial movement of capital. Developers will enter a property market when the value of land parcels is far lower than potential 'higher and better use'. On the side of cultural or 'consumption-side' arguments, Ley's (1986, 1996) thesis on the role of 'new middle class' agency is the most influential. Movement to inner city locales by the new middle class is motivated by their preference for residences close to urban amenities, e.g. theatre, galleries, up-scale shopping, and a desire to be near the workplace Chapter 5 Cultural Industry Quarters: Lessons from Europe - ^ 5 7 i in the central business district. Findings in the cases of Vancouver, Canada and Barnsley, UK, already noted are part of a widespread trend. At the same time, gentrification is known to be a differentiated process, i.e. it unfolds in different ways in different cities and in different local areas in those cities, and involves a variety of actors: that is, there is 'a geography of gentrification' (Lees 2000). Historically, geographers have assumed the influx of middle class residents into low-income neighbourhoods inevitably leads to complete colonisation. However, very recently, Van Criekengen and Decroly (2003) developed a typology that distinguishes gentrification from other processes of urban renewal. They argue gentrification is restricted to global city-regions (see also Hamnett 2003), and less likely in cities lower down the advanced services hierarchy. In their framework, the phenomenon is conceived as distinct from 'marginal gentrification', a term they adopt from Rose (1984) to capture the movements of young professionals who only live in inner city locations until they can afford to reside elsewhere. According to Van Criekingen and Decroly, this process differs from the classic model because incoming 'marginal gentrifiers' replace those relocating outside the inner city not middle classes cohorts. Furthermore, the latter is separated from 'upgrading' and 'incumbent upgrading'. 'Upgrading' denotes cases of relatively affluent inner city local areas experiencing a slight downturn prompting homeowners to renovate older structures which may, or may not, involve an upward trajectory of class. In 'incumbent upgrading', long-term inner city dwellers, many who are moderate-income, renovate their houses but a process of population, or class, displacement is not consequential. Because gentrification is conceived as residential encroachment through all the available literature including the insightful Van Criekingen and Decroly schema, on the surface linkages between cultural industries and regeneration policy around the concept of CIQs do not fit this term. In the UK, CIQs are typically the reinvention of underused 19 th century industrial zones on the central business district fringe (Brown et al. 2000) Thus, as Vicario and Martinez Monje (2003) explain in regards to Bilbao, gentrification is not obviously an issue because low-income populations have never occupied the city's abandoned waterfront that is now hosting high-end residential towers and retail Chapter 5 Cultural Industry Quarters: Lessons from Europe .J>' 58 complexes surrounding the Guggenheim Museum. On the other hand, those neighbourhoods adjacent to the de-industrialised docks are becoming 'desirable' despite poverty and reportedly violent conditions. CIQs may not match standard definitions of gentrification but are, in fact, at risk from the same kind of class pressures that residential areas witness. Zukin (1988) was the first to make this observation in her analysis of the role of 'cultural capital' in the gentrification of SoHo, New York City. After artists pioneered abandoned lofts during the 1960s and 1970s, middle class homebuyers who wanted to self-identify with a creative and/or aesthetic lifestyle began to invest in similar properties, and gradually displaced cultural workers (see also Ley 2003). Lorente (2000) lists the succession of interests that more recently unfolded in CIQs such as Temple Bar, Dublin (McCarthy 1998). Cultural SMEs are attracted to cheap live/workspace in the inner city or its fringe. Galleries, and other infrastructure (e.g. new media centres), follow. Business owners compound the critical mass of culture by opening fashion boutiques, cafe bars, and nightclubs. Soon afterwards, heritage buildings are renovated, and new homes constructed, for new middle class who want to live near areas rich in urban culture. Rent inflation and rising property prices then ensue, slowly exiling less-affluent artists and designers. Moreover, incipient CIQs will likely be typified by a 'rent-gap'. Thus, urban economics can rob cultural SMEs of their prime location in industrial heritage landscapes of the inner city, leading to the breakdown of linkages between cultural industries and regeneration policy. CIQ can be considered to experience a unique form and symptoms of gentrification. Zukin (1995), Post (1999), Lorente (2000), Butler (2003) and Smith (2003) each elucidate the geographic problem of displacement for cultural industries and/or low-income persons from the 'regenerated' inner city when confronted with prohibitively high rent, building and land prices. In addition to measures such as public ownership of workspace or social housing, the incubation and sustainability of CIQs as socially inclusive projects can be advanced through community development. Goals should include: enshrining diversity in land use policy, encouraging the input of CIQ occupants and users in planning and decision making processes, and targeting Chapter 5 Cultural Industry Quarters: Lessons from Europe > 59 marginalised and vulnerable groups in local, regional and national cultural economic growth. ii. Issue #7 - Building Community in CIQs . Addressing public policy and social justice issues surrounding the phenomenon of gentrification (Smith 2003) is new territory for social geography literature and planning theory and practice. In a special issue of the journal Urban Studies (November 2003) dedicated to gentrification research, humanist geographers (Atkinson 2003; Butler 2003) advocate people-relevant effects, i.e. social polarisation, displacement and exclusion, should become a serious focus of new social science inquiry. Turning towards normative issues in gentrification processes will require micro-level policy innovations that advance social inclusion in areas of the inner city and inner city fringe experiencing economic and physical improvements. To counter exclusion, local area policies should anchor the growth of cultural SME growth to community development. Atkinson (2003) observes that some Northern England regional cities, e.g. Sheffield (see Brown et al. 2000), heavily emphasize social diversity in planning ordinance. This is a pragmatic strategy because cultural SME attracted to inner city industrial heritage landscapes also strongly desire nearness to culturally and socially diverse groups. For instance, census tract data analyses and ethnographic interviews conducted by Ley (2003) persuasively demonstrate that artists, like designers, have a distinct preference for an inner city habitus especially 'socially tolerant' places that include poverty groups. Indeed, the imminent loss of diversity is perceived as the greatest threat to an incipient cultural industry quarter in Bilbao. The latter is facing the potential out-migration of ethic and working-class populations in the wake of gentrification which is feared will destroy what makes the inner city fringe's atmosphere 'different' and, thus compelling, for that city's cultural producers (Vicario and Martinez Monje 2003). Input into local area planning for CIQs is also highly advisable from a practical, as well as normative, perspective (Bianchini 1993b; Montgomery 1995). Warning against pitfalls of property-led regeneration in strategies for incubating and maintaining CIQs, Montgomery (1995, p.6) has strongly advised the avoidance of "schemes and entire renewal projects where involvement and participation in development proposals by Chapter 5 Cultural Industry Quarters: Lessons from Europe ••" 60 residents is limited, whether as part of the decision-making process, or as users or as owners of shops and businesses." When this is not done, authorities risk losing sight of what various stakeholders value, especially cultural SME (e.g. inexpensive space) and low income persons (e.g. social housing). Planners could even damage the 'creative buzz', or avant-garde spirit, in a CIQ, all of which to some extent occurred in the case of Dublin's Temple Bar district (Lorente 2000; McCarthy 1998). Though not an example of CIQs, some lessons can be learned from McCarthy's (1999) study of Rotterdam. As part of its inner city renewal strategy during the 1970s and 1980s, local government delivered home renovation grants and social housing by forming community renewal project groups with residents of affected local areas who oversaw program implementation (McCarthy 1999). Through this approach, the City managed to protect a wide social mix and attain community development goals in its re-imaging and beautification vision. Social inclusion policies would ideally incorporate all persons in a geographic community in local and regional economic development and spatial planning. Because CIQs have emerged in residential areas (e.g. Manchester's Northern Quarter), the displacement and exclusion of poorer populations can be a critical issue in cultural SME led regeneration. Municipalities in some UK 'cultural cities' have partnered with the voluntary sector to deliver social inclusion initiatives, especially job training in cultural industry fields that can reduce the vulnerability of those marginalized to displacement. Examples include subsidized access to recording equipment and sound facilities in Sheffield, machinery for fashion production in Nottingham, and a wealth of state-sponsored training and services provided under the roof of the Chocolate Factory, in Haringey, Greater London. iv. Conclusion - Social Inclusion Policies My third and final question concerning linkages between cultural SMEs and regeneration around the concept of cultural industry quarters focused on social inclusion: • What policies could protect and advance social inclusion in CIQs? Building community in CIQs affects their success as economic and physical improvement areas, and is normafively required to suspend social polarisation and displacement from the inner city. Based on the above narrative, we can conclude the I Chapter 5 Cultural Industry Quarters: Lessons from Europe J> .61 • i i following community development policies could assist local governments to achieve politically and socially inclusive regeneration strategies: 1. Alleviate the symptoms of gentrification; 2. Develop socially inclusive CIQs. Protecting^ advancing and balancing the political and social interests of stakeholders, especially low-income and other vulnerable groups, is likely to be the greatest challenge facing' authorities in any scheme to rehabilitate the inner city, whether presently residential, or industrial, land use. Some goals that would help to sustain a balance of cultural economic, physical and community renewal in the inner city context include: (a) setting iquotas for middle class home ownership in CIQs; (b) prioritize production, commercial and live/work in local area plans; (c) protecting non-market properties; (d) enshrining social diversity in planning ordinance; (e) encouraging local input into policy and planning decisions and outcomes; (f) targeting poor and marginalized persons in cultural SME growth. Implementation of such mechanisms will largely depend on the political, social, cultural and historical set of circumstances shaping the future development of aspiring 'cultural cities'. , Chapter 5 Cultural Industry Quarters: Lessons from Europe > 62 Table 5.6 The Social Inclusion Role of Cultural SME-Led Regeneration: Objectives, Goals and Indicators SOCIAL INCLUSION POLICY [Objectives] Mechanisms ! [Goals] Monitoring and Evaluation [Indicators] r j • Alleviate the symptoms of \ gentrification ! j j • Set quotas for new middle class residences in CIQ; • Balance market and non market property sales; • Protect (and use tenure of cultural entrepreneurs; • Prioritize production, commercial and live/work use in local area plans; 1 • Official plans for CIQs including target goals in %; • Official plans for CIQs including public or third sector property ownership goals; • Number of privately owned buildings as % of CIQ; • Mapping of cultural SME business and residential leasing and purchase patterns; • Official plans for CIQs including land use priorities and target goals in %; | • Develop socially inclusive CIQs • Enshrine social diversity in planning ordinance; • Encourage local input into policy and planning; • Target vulnerable groups in cultural SME growth. | • Official plans for CIQs with diversity principles; | • Number and variety of social groups in CIQ area; 1 • Number and length of public inclusion processes; | • Number of job training programs in cultural fields; i • Number of placement services for low-income & other marginalized groups; | • Number and variety of subsidized or free resources for persons-in-need. Chapter 6 Future Research Directions 63 6 j C O N C L U S I O N Future Research Directions Overall strategy is critical for the success of regeneration initiatives. Roberts (2000: 23) puts it this way: A system for the strategic management of urban regeneration should place emphasis on the need to create clarity regarding the intended outcomes of regeneration, the provision of a framework within which specific plans and projects can be designed and implemented, establishing and maintaining links between the policy systems involved, identifying the roles and responsibilities of the actors and organisations involved in regeneration, and generating a sense of common purpose and co-operation. As a strategy for regeneration, cultural industry growth must address the root causes of urban decline to stimulate economic, spatial and social structural change. Carter (2000) observes that Hall (1997) has recommended a focus on 'outward-looking policies' in all sectors relevant to regeneration. These are objectives that find solutions to local area problems by adducing factors in the external environment integral to a broad-based vision for cities. Carter (p. 39) lays out the requisite themes and strategic actions Hall suggests as shown in Table 6.1. Table 6.1 Outward-Looking Policies Policy Aspect I Policy Focus Institutional arrangements Emphasis on region-wide partnerships; emphasis on horizontal and vertical linkages between institutions. Spatial scale - - - — - •* Linkages between areas of deprivation and potential; region-wide strategic planning frameworks. Economic development Education, recruitment and placement; linking local to city and regional development; attracting inward investment. Social cohesion j i Measures aimed at overcoming stigmatisation and social exclusion. Environment, access j Overcome physical isolation of declining areas; transport I Chapter 6 Future Research Directions > 64 and amenity j planning; improved amenity to attract outsiders., Housing Improve housing to attract new residents; attention to region-wide housing allocation processes. Carter (2000) after Hall (1997) Cultural SME led regeneration guided by distributive justice could obtain all of the above policies through strong linkages between the concept of 'cultural city' and reinvention of the inner city as a cultural industry quarter. Urban strategies supporting cultural-economic growth while creating new production and consumption landscapes connect the inner city to regional development by locating employment and income in disinvested areas. CIQs are often enhanced by cultural amenities (galleries, museums, new media centres) that draw tourist and business visitors as well as inward investment (Brown et al. 2000; Montgomery 1995). Situating education, recruitment and placement institutions, agencies and programs in CIQs cultivates a closely supportive environment for intra- and inter-firm synergies and linkages between skills, processes, products and the management of culture in general (e.g. curatorial training). Other local area improvements such as transit and pedestrian access to the inner city, rehabilitation of buildings and public space and residential projects decrease physical and social isolation by linking rundown districts to flourishing parts of the city. However, given the spectre of gentrification, inclusion must be central to the economic, spatial and social roles of regeneration led by cultural SMEs. Social housing provisions allocated to CIQs, along with protection of community services especially job/ business training and access to cultural industry facilities (e.g. design studios, new media) are countering exclusion in a number of UK cities reconstructing old industrial images. However, so much public and private sector optimism now rides on the latent potential of cultural industries to jump-start old industrial zones of the inner city or its fringe that local governments run the risk of seeing the sector as a developmental panacea, in the same vein as over-investment in high-tech firms during the 1980s and 1990s (Scott 2003). Any government wishing to pursue the strategic policy framework for cultural SME led regeneration identified in my thesis, illustrated by Figure 6.1, must carefully weigh local, regional and national capacity to achieve the necessary policy objectives. Future research directions should consider social, political, cultural and historical factors hat Chapter 6 Future Research Directions J> 65 influence whether it is possible to pursue a regeneration strategy led by cultural SMEs. Studies could focus on the provision of information that will fill in gaps on knowledge about mechanisms and indicators presented in Chapter 5. 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