Nash Thesis Revised A
Total Page:16
File Type:pdf, Size:1020Kb
Fields of conflict: journalism in the construction of Sydney as a global city 1983–2008 by Chris Nash A thesis submitted for the award of Doctor of Philosophy in the School of Social Sciences and International Studies University of New South Wales July 2010 Acknowledgements I would like to acknowledge and thank my supervisors Dr Paul Jones and Dr Jocelyn Pixley for their generous support and excellent contributions to what has been a most rewarding intellectual journey. Originality Statement I hereby declare that this submission is my own work and to the best of my knowledge it contains no materials previously published or written by another person, or substantial proportions of material which have been accepted for the award of any other degree or diploma at UNSW or any other educational institution, except where due acknowledgment is made in the thesis. Any contribution made to the research by others, with whom I have worked at UNSW or elsewhere, is explicitly acknowledged in the thesis. I also declare that the intellectual content of this thesis is the product of my own work, except to the extent that assistance from others in the project’s design and conception or in style, presentation and linguistic expression is acknowledged. 2 Abstract This thesis examines the relationship between media reporting and Sydney's construction as a global city over the period 1983-2008. Following Friedmann, Sassen and others it views globalisation as a process of consolidation in command and control functions in the global economy, financed through the massive creation of liquidity via expanding debt, and enabled by producer services located in a network of ‘global cities’. Theoretically, it considers major debates in urban sociology and the sociology of journalism and seeks to reconcile approaches in the two fields to achieve a theoretically coherent framework for analysis that can encompass the changing political economy of Sydney and the ways in which media representation is related to this process. In globalisation studies it examines the meta-theoretical post-industrial/ network society arguments associated with Bell and Castells, and compares them with the neo-Marxist spatiality theses associated with Harvey and Arrighi, and Foster and Magdoff on financialisation. It then discusses the global cities literature in the context of Australian urban studies. In media sociology it starts with the debate about source-journalist power relations. Following Schlesinger and Benson, it offers a critical evaluation of Bourdieu's field theory. It then adopts a framework drawing on Bourdieu, together with Harvey and Lefebvre on spatiality and Gell on temporality, to consider the complexity of dynamic power relations between journalists and other sources of power. There follow two complementary empirical case studies of communication contests over (i) debt-induced growth in the Sydney residential real estate market and (ii) the demutualisation of the largest Australian general insurer, NRMA Insurance Group Ltd. The case studies examine the differing field relations of journalistic reporting and investigation of those activities in select newspapers. It argues that the journalism was deeply engaged with and/or influenced by the interests and activities of its sources in the primary field of concern, with power being exercised in both directions but overall in the structural interests of powerful sources, though not necessarily in their personal interests. The thesis concludes with an assessment of Bourdieu's field theory in the light of the analyses, and advocates a more reflexive understanding of relations within and among fields, particularly with respect to orthodoxy/heterodoxy, autonomy/heteronomy and symbolic violence. 3 Table of Contents Chapter 1 Introduction 6 Sydney – Australia’s global city 14 Chapter 2 Globalisation and global cities 27 The meta-theoretical debates 28 Critiques of Bell/Castells 33 The political and economic response 36 Situating David Harvey’s project 37 Globalisation and global cities 44 Chapter 3 Communication contests 52 Journalists and their sources 53 Bourdieu’s contribution 62 Chapter 4 Space, time and fields 74 Introducing the empirical case studies 84 Chapter 5 Reporting real estate: the background 87 The historical context of the Sydney property market 92 Chapter 6 Media coverage of the 1997–2003 real estate boom 101 Media Overview 101 Methodology 104 House Prices 1996 107 House Prices 2003-2004 111 Housing Affordability and First Home Buyers 116 Taxation: Capital gains and Negative gearing 121 Household Debt 125 Homelessness 129 Discussion 130 4 Chapter 7 Demutualisation of NRMA Insurance Group Ltd 143 Methodology 145 Background 148 Demutualisation: 1996 – 2001 154 Discussion 171 Chapter 8 Conclusion 180 Bibliography 187 5 Chapter 1 Introduction The research task for this thesis is to understand the relationship of journalism practice to a process of rapid and major social change in the activities and role of a major city in its international context. It is a task that has multiple facets and levels of engagement. What is the nature of “rapid and major change”? This is a meta-theoretical question. Are we – author and reader – looking for epochal change akin to the agricultural and industrial revolutions, as some scholars and many media pundits have suggested? If so, where do we look for the evidence to test the claims for that level of change, and if not, is the change a continuation, albeit intensified, of forces and processes at work in the current epoch of industrial and post-industrial capitalism, and what evidence is adequate to test those claims? Beneath the meta-theoretical level, at the level of disciplinary theory, how do we reconcile the concepts and debates in urban studies and geography on the one hand, with those in journalism and media studies on the other, to get a coherent analysis linking the two? What we need is a rigorous interdisciplinarity capable of responding to the conceptual requirements of both disciplines – urban studies and journalism studies – to generate empirical methodologies that are coherent, complementary and cogent in examining different aspects of the question. Finally, at the level of empirical research and analysis, out of the myriad range of activities that make up the life of a large city, what are the case studies that sit at the crux of the processes underway, and how do we deal methodologically with the different dimensions of the processes in a way that is theoretically coherent? Most importantly, how do we account for the relationship between large structural change at a global level, and the actions of individual agents doing what they think is most appropriate thing to do in the situations that confront them individually and collectively. All of this, in a situation where the changes are rapid and oftentimes contradictory. These are big questions, and Sydney is a relatively minor player in the socio-economic changes at work in globalisation. Nonetheless, hopefully an examination of the Sydney experience will throw some modest light on the larger processes at work, and at the same time clarify some theoretical points that might assist further research. 6 On March 11, 1983, a new Labor government was sworn into office in Canberra following the Federal election six days earlier. It was the first of five successive electoral victories, an unprecedented record of electoral success at the national level for Labor. The new Prime Minister was Bob Hawke, and his deputy, Paul Keating, became Treasurer. Together they were to lead a process of radical restructuring and change in the economic field that contrasted with the stability of office they maintained in the political field. While in Opposition under Bill Hayden, Hawke's predecessor as leader, the Australian Labor Party (ALP) had vigorously opposed the recommendations of the Campbell Report (Committee of Inquiry into the Australian Financial System, 1981), which argued for the rapid and far- reaching deregulation of the Australian financial system. However, on December 12, 1983, without consulting Cabinet, the Treasurer with the support of the Prime Minister announced the overnight floating of the exchange rate for the Australian dollar. Thus began a period of radical deregulatory change in the structure of the Australian economy (Edwards, 1996: 206-232; Jaensch, 1989). A quarter of a century later, in July 2007, the collapse of two hedge funds associated with the Wall St investment bank Bear Stearns precipitated the onset of a financial crisis in the US economy that quickly spread to the international level. However, perhaps underestimating the local implications of the Global Financial Crisis (GFC) that was unfolding, the Reserve Bank of Australia (RBA) continued to lift interest rates until March 2008, “in order to contain and reduce inflation over the medium term” (Stevens, 2008a), and later that month even defended further rate rises by the commercial banks in the belief that “Australian banks remain well- placed to weather the sub-prime storm” (Stevens, 2008b). By early September, the RBA’s view had shifted markedly, and it began a series of rate cuts that brought interest rates to record low levels. On 15 September, 2008, the long-established Wall St investment bank Lehman Brothers filed for bankruptcy. In an act of high drama, Federal Reserve Board Chairman Ben Bernanke and Secretary of the Treasury Henry Paulson appeared before Congress on the evening of September 18, 2008, during which the stunned lawmakers were told, in the words of Senator Christopher Dodd, “that we’re literally days away from a complete meltdown of our financial system, with all the implications here at home and globally.” (Foster and Magdoff, 2009: 112) 7 Confirmation that the hegemony of deregulatory neo-liberalism was open to serious challenge was confirmed the following month with the admission of failure by its leading champion, Chairman of the US Federal Reserve Dr Alan Greenspan, in testimony before the US Congress on October 23, 2008: “This modern risk-management paradigm held sway for decades,” he said.