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Becoming Global and the New Poverty of Cities

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Becoming Global and the New Poverty of Cities USAID FROM THE AMERICAN PEOPLE BECOMING GLOBAL AND THE NEW POVER Comparative Urban Studies Project BECOMING GLOBAL AND THE NEW POVERTY OF CITIES TY OF CITIES This publication is made possible through support provided by the Urban Programs Team Edited by of the Office of Poverty Reduction in the Bureau of Economic Growth, Agriculture and Trade, U.S. Agency for International Development under the terms of the Cooperative Lisa M. Hanley Agreement No. GEW-A-00-02-00023-00. The opinions expressed herein are those of the Blair A. Ruble authors and do not necessarily reflect the views of the U.S. Agency for International Development or the Woodrow Wilson Center. Joseph S. Tulchin Woodrow Wilson International Center for Scholars 1300 Pennsylvania Ave., N.W. Washington, DC 20004 Tel. (202) 691-4000 Fax (202) 691-4001 www.wilsoncenter.org BECOMING GLOBAL AND THE NEW POVERTY OF CITIES Edited by Lisa M. Hanley, Blair A. Ruble, and Joseph S. Tulchin Comparative Urban Studies Project Woodrow Wilson International Center for Scholars ©2005 Woodrow Wilson International Center for Scholars, Washington, DC www.wilsoncenter.org Cover image: ©Howard Davies/Corbis Comparative Urban Studies Project BECOMING GLOBAL AND THE NEW POVERTY OF CITIES Edited by Lisa M. Hanley, Blair A. Ruble, and Joseph S. Tulchin WOODROW WILSON INTERNATIONAL CENTER FOR SCHOLARS Lee H. Hamilton, President and Director BOARD OF TRUSTEES Joseph B. Gildenhorn, Chair; David A. Metzner, Vice Chair. Public Members: James H. Billington, The Librarian of Congress; Bruce Cole, Chairman, National Endowment for the Humanities; Michael O. Leavitt, The Secretary, U.S. Department of Health and Human Services; Condoleezza Rice, The Secretary, U.S. Department of State; Lawrence M. Small, The Secretary, Smithsonian Institution; Margaret Spellings, The Secretary, U.S. Department of Education; Allen Weinstein, Archivist of the United States Private Citizen Members: Joseph A. Cari, Jr., Carol Cartwright, Robin Cook, Donald E. Garcia, Bruce S. Gelb, Charles L. Glazer, Tami Longaberger WILSON COUNCIL Bruce S. Gelb, President; Elias F. Aburdene, Jennifer Acker, Charles S. Ackerman, B. B. Andersen, Russell Anmuth, Cyrus A. Ansary, Lawrence E. Bathgate, II, Theresa Behrendt, John Beinecke, Joseph C. Bell, Steven Alan Bennett, Stuart Bernstein, Rudy Boschwitz, A. Oakley Brooks, Donald A. Brown, Melva Bucksbaum, Richard Burnham, Nicola L. Caiola, Albert V. Casey, Mark Chandler, Peter B. Clark, Melvin Cohen, William T. Coleman, Jr., David M. Crawford, Jr., Michael D. DiGiacomo, Sam Donaldson, Beth Dozoretz, Elizabeth Dubin, F. Samuel Eberts, III, I Steven Edelson, Mark Epstein, Melvyn J. Estrin, Susan R. Farber, Julie Finley, Joseph H. Flom, John H. Foster, Charles Fox, Barbara Hackman Franklin, Norman Freidkin, John H. French II, Morton Funger, Gregory M. Gallo, Chris G. Gardiner, Alma Gildenhorn, David F. Girard-diCarlo, Michael Goldberg, Roy Goodman, Gretchen Gorog, William E. Grayson, Ronald Greenberg, Raymond A. Guenter, Cheryl F. Halpern, Edward L. Hardin, Jr., John L. Howard, Darrell E. Issa, Jerry Jasinowski, Brenda LaGrange Johnson, Shelly Kamins, Jim Kaufman, Edward W. Kelley Jr., Anastasia D. Kelly, Christopher J. Kennan, Willem Kooyker, Steven Kotler, Markos Kounalakis, William H. Kremer, James Langdon, Raymond Learsy, Dennis LeVett, Francine Levinson, Harold O. Levy, Frederic V. Malek, David S. Mandel, Jeffrey A. Marcus, John Mason, Jay Mazur, Robert McCarthy, Linda McCausland, Stephen G. McConahey, Donald F. McLellan, Charles McVean, J. Kenneth Menges, Jr., Kathryn Mosbacher, Jeremiah L. Murphy, Martha Twitchell Muse, John E. Osborn, Paul Hae Park, Gerald L. Parsky, Jeanne L. Phillips, Michael J. Polenske, Donald Robert Quartel, Jr., Bruce Ratner, Larry D. Richman, Carlyn Ring, Edwin Robbins, Juan Sabater, Roger Sant, Alan M. Schwartz, Timothy R. Scully, J. Michael Shepherd, George P. Shultz, Raja W. Sidawi, Kenneth Siegel, Ron Silver, John Sitilides, William A. Slaughter, James H. Small, Shawn Smealie, Gordon V. Smith, Thomas F. Stephenson, Norma Kline Tiefel, Mark C. Treanor, Anthony Viscogliosi, Christine M. Warnke, Ruth Westheimer, Pete Wilson, Deborah L. Wince-Smith, Herbert S. Winokur, Jr., Paul Martin Wolff, Joseph Zappala, Richard S Ziman, Nancy M. Zirkin ABOUT THE CENTER The Center is the living memorial of the United States of America to the nation’s twenty-eighth president, Woodrow Wilson. Congress established the Woodrow Wilson Center in 1968 as an international institute for advanced study, “symbolizing and strengthening the fruitful relation- ship between the world of learning and the world of public affairs.” The Center opened in 1970 under its own board of trustees. In all its activities the Woodrow Wilson Center is a nonprofit, nonpartisan organization, sup- ported financially by annual appropriations from Congress, and by the contributions of founda- tions, corporations, and individuals. Conclusions or opinions expressed in Center publications and programs are those of the authors and speakers and do not necessarily reflect the views of the Center staff, fellows, trustees, advisory groups, or any individuals or organizations that pro- vide financial support to the Center. TABLE OF CONTENTS Acknowledgements vii Introduction 1 Lisa M. Hanley,Blair A. Ruble, and Joseph S.Tulchin Part 1: Latin America Chapter 1: The Myth Of Marginality Revisited: 9 The Case Of Favelas In Rio De Janeiro, 1969–2003 Janice E. Perlman Chapter 2: Transnational Migration and the 55 Shifting Boundaries of Profit and Poverty in Central America Patricia Landolt Chapter 3: The New Poverty in Argentina 79 and Latin America Gabriel Kessler and Mercedes Di Virgilio Chapter 4: The Hound of Los Pinos and the 119 Return of Oscar Lewis: Understanding Urban Poverty in Mexico William Beezely Part 2: Former Soviet Union and Eastern Europe Chapter 5: Welfare Capitalism After Communism: 139 Labor Weakness And Post-Communist Social Policies Stephen Crowley | v | Chapter 6: Designing a “Scorecard” to Monitor 165 and Map Social Development of Municipalities in Tomsk oblast (Russia) Anastasstia Alexandrova and Polina Kuznetsova Chapter 7: Those Left Behind: Trends of 193 “Demodernization” and the Case of the Poor in Post-Communist Hungary Júlia Szalai Contributors 217 Appendix A Agenda: Perspectives on Urban Poverty 223 in Latin America Agenda: Spatial Dimensions of Poverty 225 in Eastern Europe and the Newly Independent States (NIS) | vi | ACKNOWLEDGEMENTS e are grateful to the Urban Programs Team of the Office of W Poverty Reduction in the Bureau of Economic Growth, Agriculture, and Trade, U.S. Agency for International Development for making the workshop and this publication possible. We would also like to thank Meg Ruthenburg for copyediting the papers and Karl Fallstrom and Karen Towers for their assistance. | vii | INTRODUCTION LISA M. HANLEY,BLAIR A. RUBLE,JOSEPH S. TULCHIN lobalization has had a peculiar impact on cities all over the world, as much in the developed world as in the developing G world. The accelerating flow of capital, information, goods, and people has tended to reduce the value of assets linked to place, such as harbors, and privileged such characteristics as adaptability and flexibil- ity. By the mid-1990s, cities nearly everywhere were competing for money, people, goods, and knowledge just as corporations once did (and do). Bond-ratings mattered more than unemployment ratings. At the same time, cities were subjected to increasing pressure from more tradi- tional factors, such as in-migration, increasing demands on a deteriorat- ing infrastructure, and the need to maintain a viable system of governance that took into account a growing diversity of population spread over an ever-increasing space. And this at the time when the state everywhere and at all levels was shrinking, losing resources. Globalization turned out to be an assault on the urban middle class. As the state shrank while the migration into the city continued, competition with the city together with the competition among cities increasingly became a race to the bottom. Professionals and entrepreneurs of all sorts found themselves cut loose as the public institutions, which often sup- ported their success evaporated under the pressures of macro-economic stabilization. Many among the world’s urban middle class relocated in response to shifting labor markets; many others simply fell into increas- ingly severe struggles to retain past life styles, hanging on for too long to what economists were telling everyone had become obsolete jobs and neighborhoods. The opening of markets and the drastic reduction of internal state controls over the economy also meant that many in the working class lost their jobs or had their wages cut, so that the percent- ages of those living below the poverty line soared, again, in developed countries as often as in developing countries, with the difference that in developing countries there was no tradition of social welfare and no fab- ric of sturdy institutions to deal with the indigent. | 1 | Lisa M. Hanley, Blair A. Ruble and Joseph S. Tulchin The process of a hollowing out of the global urban middle class and the degradation of the working poor was perhaps most visible in Latin America and socialist East Europe, regions in which moderate prosperity had become inexorably linked to the state. Structural readjustment in Latin America and post-socialist marketization in Eastern Europe created new winners and new losers. In many cities throughout both regions, a new poverty emerged in which previously
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