Entrepreneurialism in the Globalising Cityregion Of

ENTREPRENEURIALISM IN THE GLOBALISING

CITY-REGION OF TANGIER, MOROCCOtesg_622 346..360

MIGUEL KANAI & WILLIAM KUTZ Department of Geography and Regional Studies, University of Miami, Florida, USA. E-mails: [email protected]; [email protected]

Received: November 2009; revised May 2010

ABSTRACT This paper inspects the territorial and state restructuring of the globalising city-region of Tangier. It argues that recent economic growth and transnational connections follow new forms of entrepreneurial development that aggravate social and spatial inequalities. The analysis shows that these forms of urban and regional management are embedded in the neoliberalised, yet monarch- centric Moroccan state. Analysis of local governance arrangements demonstrates the pivotal importance of an elite cadre of urban managers within the monarchic power structure. Fieldwork evidence documents the emergence of megaprojects as preferred vehicles for entrepreneurial development through site observations, indepth interviews and archival research. The Tanger City Center project presents a case that illustrates the social and spatial implications of a restructuring territorial economy and the effects of new polarities being overlaid on existing urban and regional geographies. The paper concludes with a reﬂection on the comparative and relational lessons that can be drawn from Tangier’s restructuring.

Key words: urban globalisation, Morocco, case study, entrepreneurialism, city-regions, megaprojects

INTRODUCTION ing of metropolitan areas and emergence of new urban geographies of inequality and exclu- The discourse of urban globalisation provides a sionary built forms (Soja 2000; Graham & central explanation to complex transforma- Marvin 2001; Grant & Nijman 2002); and tions evidenced in contemporary cities. It (c) the socio-political management of such shows that globalisation-led urban and regional transformations carried through under the change encompasses multiple and interrelated hegemony of various forms of neoliberal economic, political, cultural and physical pro- entrepreneurialism that economic and state cesses in a world increasingly integrated elites have embraced (Harvey 1989; Moulaert through capitalist norms and practices. While et al. 2003; Ong 2006). initial studies focused on the economic struc- Contributing to this body of research, the tures and social proﬁles of a handful of global paper analyses the linkages between the institu- cities in the capitalist core, the ﬁeld has tional and territorial transformations that are expanded to incorporate a wider scope of reshaping Tangier, which this paper concep- topics into its research agenda. These include tualises as a globalising city-region. Though not the following: (a) the opportunities and pre- located in a core country for the global capital- dicaments for globalising cities in non-core ist economy, Tangier is increasingly showing a regions (Grant & Short 2002; Machimura 2003; transnational orientation in its economic Robinson 2006); (b) the territorial restructur- dynamics and political logics (Scott 2001; Grant

Tijdschrift voor Economische en Sociale Geograﬁe – 2011, DOI:10.1111/j.1467-9663.2010.00622.x, Vol. 102, No. 3, pp. 346–360. ©2010TheAuthors Tijdschrift voor Economische en Sociale Geograﬁe © 2010 Royal Dutch Geographical Society KNAG Published by Blackwell Publishing Ltd., 9600 Garsington Road, Oxford OX4 2DQ, UK and 350 Main Street, Malden, MA 02148, USA ENTREPRENEURIALISM IN THE GLOBALISING CITY-REGION OF TANGIER, MOROCCO 347

2009, pp. 11–16). We argue that central to the The paper consists of three sections. The first city-region’s dynamism and shortcomings is the section assesses socio-spatial inequalities rooted reliance on large-scale initiatives for territorial in Tangier since early stages of modern growth development and urban megaprojects. These in the early twentieth-century. During the colo- are the preferred vehicles to harness the per- nial period (1923–1956) growth under foreign ceived benefits of globalisation though foreign domination produced a cosmopolitan city with investment, trade promotion and tourism- a transnationally-oriented economy, as well as a related revenue generation. Such an entrepre- physically fragmented and socially unequal neurial approach to development and structure. Regional tensions in the mid- and redevelopment has imbued the consolidating late-twentieth century resulted in Tangier’s city-region with economic momentum and is neglect by the developmentalist impetus of the reshaping Tangier’s urban and regional geog- newly independent Moroccan state. Since raphies. But entrepreneurialism has fallen 1983, novel forms of economic growth and short of addressing inherited regional uneven- regional development have emerged after a ness and urban fractures. It has been neglectful period of crisis-generated restructuring and of basic social needs and its selective focus on ensuing globalisation. strategic sites and projects is deepening exclu- The second section focuses on state restruc- sion and producing new spatial injustices. turing by noticing a redefinition of governmen- In order to be properly understood this tal and market roles that has occurred under process must also be located within the recon- King Mohammed VI, who continues to hold figured institutions of the city-region and both administrative and political power, and Moroccan state. Both have arisen from has promoted neoliberalisation as an active complex interactions between multiple exter- state project (Catusse 2008, p. 49). Under the nal pressures and localised case-specific tutelage of his monarchy, new development responses. A new elite cadre of entrepreneurial agencies and public-private partnerships have urban managers has emerged comprising gov- been created to steer the entrepreneurial glo- ernmental and private, Moroccan and transna- balisation process and expand the increasingly tional actors. They are all invested with integrated city-region. Priorities have shifted development objectives and prerequisites from (a) earlier forms of state-led regional unique to the current globalisation era. Within development through import-substitution the logics of a re-scaled state (see second industrialisation to (b) reliance on strategic section), planners and officials operate within nodes to territorialise transnational flows into an array of territorially dispersed and adminis- the urban fabric. Hence, policies now focus on tratively fragmented agencies that nevertheless the construction of megaprojects such as the are centrally chartered and controlled by Tanger-Med Port and the Tanger Free Zone. Morocco’s monarchy. Such arrangements only Pressing needs such as deficient basic infra- feature limited mechanisms for democratic structure and generalised lack of access to accountability. Necessitated by the imperatives adequate housing remain unheeded. of exogenously-driven entrepreneurial growth, The third and final section examines new pivotal roles for international developers the role of foreign city-builders in Tangier and real-estate firms have emerged in the plan- through a case study of the Tanger City Center ning and implementation of projects. Pro- initiative. After the bankruptcy of a previous duced spatial forms and architectural contractor, this high-profile project of over typologies hence respond to imported models 175,000 square metres has been entrusted and cater to foreign users while simultaneously to Inveravante, a transnational conglomerate ignoring the everyday lives, needs and claims of based in Spain and active throughout Europe, local populations. In order to support these Latin America and Morocco. Inveravante claims, the analysis employs evidence from is expected to deliver an internationally- fieldwork observations (June–August 2009) marketable product that will attract investors including interviews and local governmental and visitors. Envisioned as the new core of secondary sources (policy reports, maps and Tangier’s urban life, this project is however architectural blueprints). inaccessible for most residents. Its location on

©2010TheAuthors Tijdschrift voor Economische en Sociale Geografie © 2010 Royal Dutch Geographical Society KNAG 348 MIGUEL KANAI & WILLIAM KUTZ the outer edge of the modern city deepens exports increasing almost nine-fold and added longstanding divisions with the relegated value quadrupling. The data also show the medina. Concluding remarks touch upon the external orientation of Tangier’s economic comparability of this singular case of entre- dynamism and large productivity gains allowing preneurialism to broaden research agendas output to grow almost twice as fast as total on globalising cities and regions (Short et al. employment. 1996). There is also a call for further scrutiny Yet not all have benefited, a social statistics of the socio-political negotiation and contesta- show that for the past decade the officially dis- tion of urban development. closed unemployment rate has hovered around 10 per cent, while the cost of living has OLD AND NEW URBAN INEQUALITIES increased steadily particularly in basic categories such as food (which increased by a factor of Tangier is a rapidly globalising city-region in approximately 25%), clothing, transportation North Africa strategically placed at the western and housing (Direction de la Statistique 2010). entrance to the Strait of Gibraltar, which links Moreover, this economic expansion has argu- the Mediterranean to the Atlantic Ocean (See ably been accompanied by deepening social Figure 1). Fuelled by aggressive investment inequalities and more visible forms of uneven efforts and market-oriented governmental and fragmentary regional development. actions, Tangier’s economy has experienced Entrepreneurial policies and transnationally- high growth rates and stronger linkages to the oriented economic expansion produce novel global economy since the early 1980s, when it fractures that compound inherited spatial began recovering from long-term stagnation injustices in the built environment. This section experienced during Morocco’s period of situates Tangier’s transformation within neolib- import-substitution industrialisation (ISI). eral globalisation in Morocco. The context Table 1 shows employment doubling (1994– drawn here informs later discussions on the 2006); investment and production tripling; role of local planners and transnational devel-

Figure 1. The globalising city-region of Tangier. Source: Own drawing based on multiple schematic images from Tangier Urban Agency (Agence Urbaine de Tanger) and Tangier Mediterranean Special Agency.

Table 1. Industrial economic indicators, Tangier-Tétouan, 1994–2006.

Year Total employment Production Investment Exports Added value (permanent and (1,000 dh) (1,000 dh) (1,000 dh) (1,000 dh) seasonal)

1994 31,552 4,178,604 307,467 1,142,732 1,363,421 1999 38,019 5,158,771 665,130 2,371,566 2,083,082 2004 53,264 10,150,576 776,827 6,079,169 – 2006 63,281 13,741,082 1,053,665 8,950,577 4,058,935

Source: Own tabulation based on Direction de la Statistique (1994a, 2000, 2005, 2007). opers in managing and shaping the territorial ditions, however, only hint at much larger restructuring of the city-region. housing shortages and urban fractures dis- It is first important to remark that, as in other cussed below. less-developed economies undergoing late- Uneven regional development, lack of met- twentieth-century neoliberalisation, economic ropolitan coherence and territorial fragmenta- growth and employment expansion paralleled tion have been pervasive characteristics of the worsening of labour conditions and a Tangier since early modern days. In 1923, colo- seemingly paradoxical rise in unemployment nial and imperial powers established a militarily throughout Morocco (Cohen & Jaidi 2006). neutral and legislatively autonomous International Zemni and Bogaert (2009) explain that guided Zone around the city while the rest of Morocco by international institutions, such as the Inter- was divided into French and Spanish protector- national Monetary Fund (IMF), Morocco ates (Dalton et al. 1993a). Sharing the Zone sought to create a flexible labour market were Europeans (French, Spanish, British, through reduced public sector employment, Italian, Belgian, Dutch and Portuguese), the deregulated minimum wage and dismantled United States and a local mandoub, or represen- social services. These actions made it a competi- tative of the Sultan (1923–1956). Tangier was tive supplier of cheap labour in the global econ- governed in an ad hoc laissez-faire manner that omy even though ‘unemployment, poverty, created problems with overlapping jurisdic- marginalisation and exclusion more and more tions and administrative disjuncture. Free from constitute the face of Moroccan cities and rural international exchange controls, the city areas alike’ (Zemni & Bogaert 2009, p. 94). attracted a large in-flow of financial capital. In places with free trade zones (FTZs) the Evidence of this special status is the large expansion of a vulnerable low-wage population amounts of foreign gold deposited in local adds to this complex array of precarious labour banks immediately after the Second World conditions. With the largest FTZ in Morocco, War (Ingérop 2002). A transnational class of Tangier is a paradigmatic case. Established in bankers and merchants settled in and gener- rapport to a legal minimum wage in the public ated unprecedented wealth. These financial discourse wages, in the FTZ are fair when com- elites coexisted with a unique cultural mix pared to the rest of society – even high for the of colonial elites, social outcasts, wandering unskilled workers coming from informal artists, diverse Arab, Jewish and Berber locals employment in rural areas. But these wages (in (Pennell 2001). Table 2 shows that on the eve cases less than a Euro per hour) have created of Moroccan independence foreigners made situations of working poverty, particularly in up almost a quarter of Tangier’s population – the context of a rapidly rising cost of living. though this ratio declined dramatically in the Evidencing this new form of exclusion, infor- second half of the twentieth century. Concen- mal settlements have emerged in the outskirts trations were even higher in the central city. In and interstices of the FTZ; precarious shacks the mid-1950s, two thirds of the population for workers are juxtaposed to modern and glo- (60,000 residents) was foreign-born (Ingérop bally linked factories and facilities. These con- 2002, pp. 7–8).

As a consequence of numerous, unco- tricts in the European ‘new town’ and more ordinated and competing planning efforts of recent informal settlements lacking formal international administration, Tangier devel- infrastructure. Furthermore, upgraded settle- oped a fragmented urban structure of uneven ments (the ‘new medinas’) were only marginally population densities and scattered enclaves of serviced by ad hoc utilities (DGUA 1997). wealth. Also absent from Tangier is a well- Figure 2 shows high levels of fragmentation delimited Jewish quarter (mellah) such as those and heterogeneity even within districts. As is found in Fez and Meknès (Dalton et al. 1993b). the case in other globalising cities, villas and Nevertheless, years of unregulated urbanisa- informal shelters commonly co-exist in the tion created a split between well-serviced dis- same neighbourhood, if not side-by-side. Behind these fractures and juxtapositions is the post-independence exodus of wealthy expatri- Table 2. Population, Tangier, 1952–2004. ates and the subsequent Moroccan Jewish population. Their assets had been frozen Year Population Foreign Foreign (%) but they still held ownership on urban land, population which remained undeveloped or was informally occupied (DGU 1980). 1952 172,000 42,000 24 Tangier underwent a prolonged period of 1960 164,232 34,508 21 stagnation after Moroccan independence and 1971 286,142 9,611 3 the fall of the Statute in 1956. Several factors 1982 436,227 4,157 1 contributed to economic decline during the ISI 1994 627,963 3,022 0.5 2004 756,964 3,094 0.4 period lasting until the early 1980s. First, in the aftermath of nationalisation and loss of special Source: Own tabulation based on Dalton et al. international status gold deposits were mas- (1993b); Direction de la Statistique (1971, 1982, sively withdrawn; banks and trading houses 1994b, 2004, 2008). closed; and skilled workers erstwhile employed

Figure 2. Central Tangier. Source: Own drawing based on multiple schematic images from Tangier Urban Agency (Agence Urbaine de Tanger) and Tangier Mediterranean Special Agency.

©2010TheAuthors Tijdschrift voor Economische en Sociale Geografie © 2010 Royal Dutch Geographical Society KNAG ENTREPRENEURIALISM IN THE GLOBALISING CITY-REGION OF TANGIER, MOROCCO 351 in the financial and trade sectors left en masse rate of 2.5 per cent between 1971 and 1981, the (Dalton et al. 1993b). In summary, the urban southern periphery, home to the large infor- and regional economies were stripped of the mal settlements at, for example, Bni Makada, colonial growth pillars. Second, few local ben- recorded growth of nearly 19 per cent (DGUA efits came from nationalisation and ISI efforts 1997, p. 8). In the face of such rapid expansion of the Moroccan state (rather weak compared public authorities proved increasingly over- to other MENA countries, such as Nasser’s whelmed and ineffective in establishing Egypt). Industrialisation-based urban growth adequate plans and controls, to address the was incompatible with Tangier’s economic growing crisis in housing, infrastructure and profile. In contrast to Casablanca, Tangier’s general service needs (DGUA 1997, p. 6). Northern Region received scanty public indus- Aggressive actions have been taken in the trial investments during the reign of Hassan II past two decades. As part of ambitious national for seemingly political reasons and disputes, housing plans, Tangier was able to upgrade and which remain unclear to this day (Oxford formalise many settlements (see e.g. MHU Business Group 2005). Lastly, the few industrial 2007 on the ‘Cities without Slums’ initiative projects carried out through the 1970s were that King Mohammed VI inaugurated in 2004). limited in scope, unco-ordinated and pollutive Unlike most cities in the less-developed world, (Ahassad 1988; DGUA 1997). Morocco has a unique case of informal settle- Vigorous demographic growth provoked dis- ment relocations that exceeds political rheto- orderly urban expansion in the midst of ric. Yet ongoing in-migration mars planning regional economic stagnation. Rural popula- and development efforts and has led to the tions from throughout the Northern Region emergence of new informal settlements as settled on the urban periphery tripling Tangi- older ones are upgraded.1 Furthermore, policy er’s population since the 1970s (See Table 2). priorities have noticeably shifted with neoliber- Uncontrolled growth occurred largely outside alisation. In the fields of housing and urban the core because in-migrants chose to settle on infrastructure (e.g. water supply), the impulse lands deemed unsafe for development rather to harness globalisation’s economic benefits than risking eviction in centrally located vacant prompts urban managers to privilege free- lots (DGU 1980). Yet due to large-scale popula- market and speculative entrepreneurialism tion in-flows Tangier did not only expand over subsidised service-oriented interventions outward. It also densified. This distinguishes (de Miras et al. 2007). The following section Tangier from its surrounding region and analyses the institutional context of this shift, makes it one of Morocco’s densest urban areas which both parallels and departs from transi- (See Table 3). Urbanisation and densification tions to entrepreneurialism previously studied also had a highly uneven distribution between in cities of advanced industrial economies central districts. While the city centre with a (Harvey 1989). The third section discusses formal European-style urban layout grew at a large-scale development projects now seen as a panacea for reintegrating the fragmented city and allocating urban economic and social Table 3. Urbanisation rate, Tangier, 1982–2004. benefits.

Urbanisation Density STATE RESTRUCTURING AND THE RISE OF URBAN ENTREPRENEURIALISM Tangier Morocco Tangier 2 (%) (%) (Hab/km ) Contemporary patterns of territorial restructuring respond to specific plans and interventions 1971 71 35 – by an elite cadre of entrepreneurial urban man- 1982 71 43 525.00 1994 84 51 668.00 agers, who intend to harness economic globali- 2004 92 55 861.00 sation’s perceived benefits by capitalising on transnational investment flows, trade and Source: Own tabulation based on Direction de la tourism-related revenues. Understanding these Statistique (1982, 1994a, 2004, 2008). practices is crucial to any robust explanation of

Tangier’s urban transformation. But it must ments. The Moroccan state was thought to lack also be understood that entrepreneurial man- a cadre of competent and skilled administra- agers operate within a framework of recali- tors capable of effectively communicating and brated state institutions that enable and even fulfilling developmental demands. The 1981– necessitate their actions. Such an explanation 1985 Economic and Social Plan (1981 Vol. I, p. of shifts in urban and regional governance 58) states the following: cannot be subsumed to mainstream accounts of Indeed, the need for human and financial administrative decentralisation. Reforms must resources made it impossible to direct nec- rather be related to the neoliberal project to essary studies and devise a prospective vision re-scale the territorial state apparatus and for state territorial development. Now, thereby promote and support new forms of lacking a formal vision articulating the transnational capitalist articulation. From this spatial distribution of economic activities, perspective Tangier mirrors other experiences human resources and infrastructures, of neoliberal restructuring in Morocco, the it is difficult to engage voluntary and Middle East and North Africa region and across co-ordinated action in development. the contemporary world (Brenner 1999; Catusse 2008). Yet this case is also unique due Since the 1980s political and economic crises to its specific political context and Morocco’s have fed off one another and allowed the King troubled history of urban and regional devel- to entrench his power through local represen- opment policies. The crown has played a tatives expected to address the state of national central role in the re-scaling of the Moroccan emergency (Cherkaoui & Ben Ali 2007). state, refocusing developmental energies and Administrative decentralisation was paired with concentrating investments in a handful of cities privatisation, economic transnationalisation expected to act as global nodes. Yet, economic and increased adherence to international prioritisation came at the cost of further side- norms and free-trade agreements. King lining local accountability. Hegemonic institu- Mohammed VI has assumed a fundamental tions and officials are controlled by King role in this process by brokering local and tran- Mohammed VI. Therefore, the concept of snational interests. A new set of institutions was neoliberalisation is necessary but not sufficient created under his tutelage and the influence of to understand this specific process of state external investors and donors (primarily from restructuring. Global trends are hybridised and the United States and the European Union), even transformed by interactions with vernacu- which promote globalisation through entrepre- lar traditions, institutions and localised power neurial urban development, particularly in stra- relations. tegic spaces such as the expanding city-region Mounting post-independence development of Tangier. challenges help explain the emergence of both The entrepreneurial organisations that have Tangier’s entrepreneurialism and centralised emerged to manage urban globalisation state power consolidated in the hands of the respond to a broad range of external demands King and his representatives. In the early for adjustment such as state decentralisation period of nationalist development that lasted and participation. Free-market ideology argues until the late 1960s, plans for economic growth that a large public sector discourages entrepre- paid little attention to economic and social dis- neurship, fuels the informal and black market parities across regions. Industrial development economy, facilitates corruption and obfuscates depended on ISI (DCEP 1958, 1960, 1965). But which regulations need apply to different econ- the strategy failed and was soon replaced by omic activities (Cherkaoui & Ben Ali 2007). a more geographically-nuanced approach Indeed, the central government expanded seeking to take into account vastly differing after independence and was plagued by regional needs. Actions remained centrally bureaucratic inefficiencies and corruption. planned and royally dictated (DCEP 1968; Though marred by human and technical DPDR 1973; Direction de la Planification 1978, resource deficiencies, regional planning 1981). This regionalism also encountered bar- attempts sought to decentralise urban and riers, giving way to state-failure types of argu- regional economic growth management. In

©2010TheAuthors Tijdschrift voor Economische en Sociale Geografie © 2010 Royal Dutch Geographical Society KNAG ENTREPRENEURIALISM IN THE GLOBALISING CITY-REGION OF TANGIER, MOROCCO 353 contrast, contemporary entrepreneurial insti- To democratise and co-ordinate planning, tutions are nested within so-called participatory the urban agency is legally mandated to liaise frameworks that equate democracy to ‘good with the governor (representing state interests) governance’ and rely on forms of admini- and the communal council (representing local strative rather than political decentralisation interests). The agency appears to mediate that give selective preeminence to managerial between the two, but it is in fact both arbiter elites. and part since the urban planning director is The three institutions at the forefront of also a representative of the central government. urban management in Tangier are the super- Furthermore, a representative of the Interior prefectural governorship (Wilaya), the urban Ministry monitors the communal council. agency (agence urbaine) and the communal Hence, three individuals are vested with the council (conseil communal). The Wilaya was ini- central government’s authority to locally safe- tially implemented ad hoc in Casablanca fol- guard its interests and make decisions for lowing the city’s riots in 1981, but it has now nearly one million inhabitants. Unveiling evolved as a mechanism for regional metropoli- power relations in the governmental architec- tan governance for the country’s largest urban ture problematises notions of contemporary areas. King Mohammed VI employs a select state decentralisation and democratisation. group of politically loyal techno-walis (techno- The reconfiguration of urban institutions governors) proven in private enterprise to also evidences a shift in managerial practices promote neoliberal urban globalisation. Man- from a focus on the provision of basic services agers are circulated where they are most for locals to speculative entrepreneurialism tar- needed, which promotes merit-based accom- geting foreign investors (CRI 2009; DGCL plishments and presumably reduces corrup- 2004). The latter include an increased reliance tion. (Catusse et al. 2007; Catusse 2008). The on privatisation and fiscal incentives. Created appointment of Mohammed Hassad to the in the post-1983 adjustment period, these insti- Tangier-Tétouan region is exemplary. Known tutions have the mission to make the city less for leading a tourism renaissance in Mar- dependent on state interventions. As illustrated rakech, Hassad is seen as a crucial figure to in the following section, economic globalisa- steer Tangier toward a similar socio-cultural tion is in fact directed by and catered to an and economic resurgence. Hassad has jurisdic- entrepreneurial elite of state managers who tion over both Tangier-Assilah and the wider have assumed conspicuous roles in the plan- economic region, which leaves him in control ning and implementation of large-scale devel- of both the regional and prefectural budgets opment plans and megaprojects. Noticeably, and executive functions. several of these actors have transitioned directly A 1993 royal decree established urban agen- from the newly empowered private sector to cies – though Tangier’s was created later in prominent elected and appointed offices 1998. Their primary role is the planning and (Catusse 2008, p.137). Urban managers rely on elaboration of general plans or schémas direct- special purpose agencies such as the Tangier- eurs. This gives agencies the authority to con- Mediterranean Special Agency and the Société ceptualise and shape physical growth in Marocaine d’Ingénierie Touristique (SMIT) to accordance with local social and economic run megaprojects. These are generally char- development goals. Their plans determine the tered as public-private partnerships or publicly- intensity and extent of development, where owned private firms. They are characterised by growth shall occur, and which specific sectors their top-down approach and emphasis on gov- will thereby benefit. In contrast, communal ernance procedures rather than direct demo- councils are still comprised of a democratically cratic accountability (TMSA n.d.). elected body of local representatives. But since The largest megaprojects have emerged in the 2002 reforms, they explicitly aim to recent years including: (a) the Tanger-Med promote and encourage private investment via Port (Tan-Med I); (b) an economic free zone; infrastructure development, economic activity and (c) new towns developed beyond the edges zones and local business climate enhancement of older built-up areas. Located 40 km east of (DGCL 2003, Art 36.2). Tangier, Tan-Med I was inaugurated in 2007.

With total capacity for three million containers, omic livelihoods (Borthwick 2009). Moreover, a surface area of 80 hectares, and an investment by continuing to prioritise external economic of over 7.5 billion Euros, the completed port imperatives over historic, local needs, entrepre- will be among the largest in the world. A port neurial megaprojects aggravate inequalities extension (Tan-Med II) is also projected for and create new forms of social polarisation and 2015. It will increase total container capacity to territorial splintering. eight million (TMSA n.d.). The Tanger Free Zone was established in 1997, 10 km to the southwest of Tangier. It occupies a joint area of TANGER CITY CENTER nearly 40 hectares and employs over 40,000 persons in more than 300 companies. Between The Tanger City Center (TCC) initiative encap- 1999 and 2007 investment increased to over sulates central dynamics at play in the territo- 500 million Euros (CRI 2009). Last, the new rial and state restructuring of Tangier, as well as towns play an important role in the expan- the entrepreneurial and even speculative char- sion of the globalising city-region. They are acter of these intertwined processes. TCC is a intended to provide the social infrastructure major redevelopment project of 175,000 m2 servicing main economic industries and to and an estimated global cost of 1.98 billion respond to systemic housing crises. They are dirham. The case provides insight into the also expected to transform the existing urban range of implicated public and private urban geography radically. For instance, the new town managers and the generally collaborative yet of Gzenaya Al Jadida near the Ibn Battuta occasionally conflictive nature of their mutual Airport (the only one to have moved beyond an relations and respective interests. Contrasts are initial planning stage thus far) is projected to also drawn between intended functions for the develop 12,000 housing units and ancillary site in the globalising city-region and likely con- facilities for an expected population of 60,000 sequences of this project for the existing urban residents. Less than 700 households lived on fabric. the original site according to the 2004 census Located on the eastern edge of the colonial (CRI 2009). urban grid built during the International Megaprojects are primarily intended as Statute, TCC represents a new centrality for mechanisms for economic globalisation cata- the expanding city-region. The project will pulting the city-region to competitive positions house the city’s first Western-style mall, a busi- within urban networks throughout the Middle ness centre, apartments, and two four- and East and North Africa (Stanley 2005). Yet urban five-star hotels. At three stories and 30,000 m2, managers are also challenged to leverage econ- Tanger City Mall will also be the first to cater omic dynamism with the goal of overcoming to internationally recognised name-brand bou- Tangier’s historic territorial fragmentation and tiques. The site was conceived as offering ‘the uneven development.2 Figure 2 shows that ability to wander and dine in perfect peace megaprojects are planned as integrative base within the most refined ambiance’ (TCC n.d, points for regional circulation and exchange. p. 7). It will have direct access to the hotels and Nevertheless, while these new projects offer vast train station. Tanger City Business will provide economic prospects, they also fail to adequately over 10,000 m2 of office space. The develop- address the basic needs of the current city’s er’s expected future users and tenants include inhabitants. The Tanger Free Zone employs firms engaged with command and control thousands of local workers, yet unskilled labour functions. The exact number of expected is paid a mere 0.87 euro per hour (TFZ n.d.). employment generation remains undisclosed, New towns such as Gzenaya Al Jadida are but previous studies show this form of growth expected to increase the stock of desperately generates a bifurcated labour demand in needed housing, though many have voiced which highly skilled, high-pay positions are concerns that mortgage costs will be prohibi- filled by transnational expats while the remain- tively expensive for those in need. Little atten- ing ‘ancillary’ low-wage workforce is composed tion has been paid to how the housing typology of disadvantaged local populations (Sassen may be compatible with popular forms of econ- 2001).

TCC is considered a key location in the jurisdiction by overseeing developments for the emerging city-regional geography. In addition entire Northern Region. A general assembly to producer service functions, TCC will be of shareholders elects a supervisory board who linked to megaprojects throughout Tangier- then choose directors. The latter supervise Tétouan – such as, the Tanger-Med Port, to regional offices in Tangier and Agadir. which there is direct train access less than 200 SMIT’s mission is to implement the Plan metres away.3 The Tanger City Residences will Mada’In (cities plan), a subsection of Vision be composed of over 800 seaside apartments. 2010 specifically seeking to upgrade existing This housing component is expected to repre- destinations through additional capacity for sent a new image of urban living, yet also carry receptive tourism and the development of new a premium cost in a city where housing is tourist zones. Other guidelines include already unaffordable to most of its population. regional tourism development plans, which In Tangier, 40 per cent of residents build their reflect efforts to diversify tourist offerings and homes themselves while an additional 20 per reposition destinations. Tangier, Tétouan and cent live in an inherited property (AREA 2003, Agadir are envisioned to specialise as ‘seaside p. 11). Last, with roughly 40,000 m2 Tanger resorts’, while other places such as Fez, Ouar- City Hotels are designed to ‘qualitatively and zazate and Casablanca will act as ‘cultural des- quantitatively reinforce the city’s hotel capacity tinations’ (MTA n.d., p. 11). But SMIT projects and consolidate its tourist and business objec- are also expected to play complementary roles tives’ (TCC n.d, p. 11). Hence, image is almost to economic development initiatives and mega- as important as capacity. Architecture is mobi- projects seeking to globalise the city-region. lised to emphasise international appeal at the This distinguishes the current drive from piece- heart of a globalising city-region, but has little meal tourist-oriented initiatives undertaken to contribute to essential local needs. between the mid-1960s and early 1990s. Today, TCC is under the remit of the Societé proactively subsidising projects is part of the Marocain d’Ingénierie Touristique (Moroccan agency’s core actions – such as the 75 m Tourism Engineering Company). SMIT is dirhams directly contributed to TCC. More a government-owned corporation (société importantly, SMIT assembles and transfers land anonyme à capital public) focused on tourism to developers in the form of below-market price development and capitalised at 41 million ‘symbolic offers’.4 dirhams. SMIT’s mission centres on the study, TCC must meet two diverging objectives. On promotion, negotiation and implementation of the one hand, the project must embody dis- tourism development projects. Compliant with tinctly Moroccan qualities to render the site King Mohammed VI’s Vision 2010, SMIT seeks unique and marketable in highly competitive to bring 10 million tourists to Morocco and tourist circuits that are based on place differ- increase hotel capacity to 230,000 beds (MTA entiation (TCC n.d., MTA n.d.). On the other n.d., p. 10). Results thus far, show national hand, urban and architectural forms need to tourism arrivals from 2001 to 2008 have reflect Tangier’s rising importance of as a increased from 4.4 to 7.9 million tourists. node within global economic flows. A SMIT Created in 2008, SMIT consolidated three for- representative assigned to the project asserted: merly separate development agencies: the ‘We want the Bay of Tangier to become the Société Nationale d’Aménagement de la window to Africa and the gateway to Europe.’5 Baie de Tanger (National Bay of Tangier Devel- Hence, TCC must provide a space to opment Company, SNABT), the Direction co-ordinate activities, such as a cosmopolitan des Aménagements et des Investissements central business district with direct access to (Development and Investment Office) and the the port, airport and free-trade zones of the Société Nationale d’Aménagement de la Baie city-region. However, in order to achieve a d’Agadir (National Bay of Agadir Development unique urban aesthetic marketable to global Company). Unlike local urban planning agen- audiences, SMIT must appeal to transnational cies and communal councils, Morocco’s Minis- developers with expertise in delivering try of Tourism directly manages SMIT. It has imported urban models. It therefore promotes also expanded SNABT’s former more limited the Bay of Tangier proactively at international

©2010TheAuthors Tijdschrift voor Economische en Sociale Geografie © 2010 Royal Dutch Geographical Society KNAG 356 MIGUEL KANAI & WILLIAM KUTZ real estate conferences in Europe, the Middle space of dependency limits capacity to engage East and East Asia.6 in highly competitive global markets for real Moreover, SMIT’s development plans face estate investments and projects (Cox 1988). both internal and external constraints. Inter- SMIT hence retains control over the symbolic nally, the agency finds a guiding lesson in the (morphological) and managerial aspects of the historic inability of its predecessor (SNABT) to project yet it is forced to provide large fiscal plan, co-ordinate and develop the bay. A lack incentives and tax exemptions to the developer of qualified human resources to staff projects so that the project remains lucrative and attrac- is often mentioned. Externally, cases of over- tive. SMIT’s local centrality is contingent upon building such as southern Spain’s Costa del its capacity to successfully mediate with such Sol region advise against the consequences external actors and maintain an in-flow of of pursuing uncontrolled, speculative develop- foreign investments. By the same token, this ment. They inspire Tangier’s managers to position makes it more impervious to residents’ formulate strict guidelines and procedures to demands or any concerns to extract wider protect the bay region from abusive overdevel- community benefits or planning gains from opment and to create frameworks for the pres- the project. ervation of a local aesthetic in the central city. The resulting consequences of such redevel- Yet, SMIT must also confront the reality that if opment are manifold for the existing city. TCC regulations are too strict and incentives too and other real estate projects appeal to a privi- weak, private foreign developers will not find leged minority with the means to shop at the location attractive. In practice, the agency Western style luxury malls that remain prohibi- requires little more than a minimum invest- tive to most others. While a national and urban ment commitment of 200 million dirhams housing crisis continues, state resources are and a 36-month project deadline from private spent on attracting foreigners rather than criti- investors. cally assessing or addressing basic needs of resi- The developer contracted for TCC is Invera- dents. TCC will anchor a new city-regional vante, an international real estate development transportation infrastructure linking globalised and industrial investment group based in La economic nodes, but it will peripheralise Coruña, Spain. Created in 2007, Inveravante has already disadvantaged areas such as the old adiversifiedinvestmentportfolioinenergy,agri- medina by moving the city’s core further to the business and commercial and entertainment- east. While this is part of a generalised infra- oriented real estate. Its geographical realm of structure upgrading, including road construc- operations is broad and particularly focused on tion and improvement, little investment is emergingmarketsinEurope,LatinAmericaand put on enhancing the mobility of those without North Africa. A company representative men- means. For example, residents of populous yet tioned that Tangier’s investment appeal lay in its peripheral areas such as Bni Makada depend taxincentiveseventhoughtheregulatorysystem on public transportation even though the was as complex as in other parts of Morocco, and sector receives a fraction of the local budget. market size smaller than places such as Casa- In a recent infrastructure upgrade, public blanca.7 transportation was allocated only 80 million To develop TCC, both SMIT and Invera- dirhams, or 3 per cent of Tangier’s total budget vante face heightened risks. Inveravante must (CRI 2009, pp. 24–25). conform to SMIT’s specific development guide- Furthermore, though no major evictions lines and architectural regulations. These occurred at the TCC site, the pursuit of a sani- threaten the firm’s ability to maximise its tised modernity that it embodies also leads to desired profit margin as a global developer. the neglect and displacement of existing popu- Building codes may promote unmarketable lations and activities. For instance, in the design features, add unnecessary costs to the medina, tourism-oriented public expenditures project and may not allow the firm to supply a on renovating the Kasbah’s façade and walls product that is in greater demand elsewhere. (100 million dirhams) largely exceeded For its part, SMIT maintains a preeminent posi- funding of programmes for settlement reloca- tion in Tangier, yet its highly territorialised tions (20 million dirhams).

CONCLUSIONS AND the specific regulations and politics of Arab FURTHER RESEARCH states in the Middle East and North Africa (Stanley 2005). Yet, Tangier can also be com- This paper explored the manifold implications pared to other sites ‘marginal’ to Europe, to the territorial and state restructuring of which despite enhanced articulations remain Tangier over the past decades in a context peripheral and are increasingly placed under of urban entrepreneurialism and neoliberal the regulatory scrutiny of the European Union globalisation. The analysis showed impressive (e.g. due to issues of unauthorised migration). economic dynamism, demographic growth, Furthermore, Tangier may fit urban categories regional expansion and deepening transna- such as those of the border, gateway and tional connections. Tangier is transforming entrepôt city. The comparative realm could itself into a global city-region with a Mediter- then be extended to places such as Tijuana and ranean insertion. With such restructuring Panama City or even Miami and Singapore. embedded in the wider transformation of the Finally, Tangier may be seen as an erstwhile Moroccan state and urban system, a new era has colonial/international and now globalising emerged. Current dynamics are distinct from city-region. Aspects of external relationality post-independence developmentalism and and domestic positioning would then make it rather echo characteristics of the transnational comparable to cases with similar historical tra- enclave under colonial rule. Yet the new growth jectories such as Shanghai. impulse has not been able to overcome social Regarding mounting challenges of inscrib- and spatial challenges inherited from the city’s ing collective meaning into the built environ- colonial past. Furthermore, such a growth ment, insightful comparative examples can be model generates novel social inequalities and found in globalising cities of Latin America. spatial ruptures that aggravate problematic These have undergone similar processes of urban conditions. crisis-generated restructuring and ensuing In many ways, Tangier’s story is one known to globalisation after unsuccessful attempts of numerous cities around the world. This restruc- import-substitution industrialisation. Myers turing has been particularly scrutinised in the and Dietz (2002, p. 24) argue that state- context of advanced industrialised nations in sponsored city development initiatives are now North America and Western Europe (See e.g. less effective in inscribing collective meanings Brenner & Theodore 2002). However, the and civic values into built environments. Hence intrinsic value of this case study is its adoption it has become more difficult to instrumentalise of some general dynamics within its very local such interventions as sources of political legiti- and regional specificities. While stated goals, macy. The research presented herein indicates modalities and outcomes of urban develop- that in Tangier this difficulty has less to do with ment follow the former, the latter is evidenced the subject matter being textualised than the by a monarch-centric governance system and multiplicity of local and extra-local audiences complexsubordinaterelationstomultipleecon- and stake-holders to whom entrepreneurial omic, political and cultural hegemons. There- urban managers must now respond. This con- fore, while the main concern of this study was junction renders the deliverance of a clearly the specific urban and regulatory transforma- localised narrative almost impossible but at the tions of Tangier, the process of city-regional same time it reaffirms the strong nexus between restructuring presented here also contributes urban development and state power, which towards a comparative and relational urban now rather derives from the ability to articulate research agenda. interventions with polyvalent and glocalised sig- This agenda can be advanced through mul- nifiers. Further comparative and relational tiple controlled comparisons intended to research could help disentangle the factors further dissect the generalisable particularities intervening in such tensions and their localised of Tangier (Soja 2000; Brenner 2001; Nijman resolutions and outcomes. 2007). Comparative ranges may be established Additional comparisons between Moroccan regionally. The case may be seen as one path cities and those in Latin America can be made towards urban globalisation taking place within in terms of the particular roles that growing

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