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Home , Manuel Castells

MARXIST AND MARXIST URBAN Marxist Political EconoInY and Marxist

A Review and Elaboration of Recent Developments

Kieran McKeown Social Research Centre National Institute/or Higher Education Limerick, Ireland

Palgrave Macmillan ISBN 978-1-349-18569-6 ISBN 978-1-349-18567-2 (eBook) DOI 10.1007/978-1-349-18567-2 o Kieran McKeown, 1987 Soficovcr rcprint of thc hardcovcr 1st edition 1987 978-0-333-41382-1 All righLSreserved. For inronnation. write: Scholarly& Referern:z Division, St. Martin·sPress, Inc., 175 Fifth Avenue, New York, NY 100[0 First published in the United Statcsof America in 1987 ISBN 978-0-312-51794-6 Library of Congress Cataloging.in.Publication Data McKeown. Kieran, 1951- Marxist political economy and Mar:l:ist urban sociology. Bibliography: p. Includes inde:l:. 1. Marxian . 2. Business cycles. 3. Marxianschoolofsociology. 4. Sociology, Urban. i. Title. HB97.5.M365 [987 335.4 86- [5544 ISBN 978·0-312-51794-6 To Grace, Calm, Clara and Catriona Contents

List a/Tables and Figures Xlll Acknowledgements xv

General Introduction XVll

PART I MARXIAN POLITICAL ECONOMY

1 Marx's Labour Theory of Value 3 1.0 Introduction 3 1.1 Marx's Labour Theory of Value 3 1.2 The Transformation Problem 7 1.3 Marx's Solution to the Transformation Problem 9 1.4 The Errors in Marx's Transformation Solution 12 1.5 The Correct Solution to the Transformation Problem 14 1.6 The Sraffian Approach to Prices and Profit 18 1. 7 Conclusion 23

2 Marxian Crisis Theory 24 2.0 Introduction 24 2.1 The Law of the Falling Rate of Profit 26 2.1.1 Introduction 26 2.1.2 Marx's Formulation ofthe Law 27 2.1.3 The Possibility of a Fall in the Maximum Rate of Profit 29 2.1.4 The Possibility of a Fall in the Actual Rate of Profit 30 2.1.5 Technical Change and the Rate of Profit 33 2.1.6 Conclusion 35

vii viii Contents

2.2 Realisation Crises 35 2.2.1 Introduction 35 2.2.2 The Possibility of a Realisation Crisis 36 2.2.3 Realisation Crisis Caused by Absence of Macroeconomic Planning 38 2.2.4 Realisation Crisis Caused by Technical Innovation. 42 2.2.5 Realisation Crisis Caused by Variable Weather Conditions 44 2.2.6 Realisation Crisis Caused by Scarcity of Labour 46 2.2.7 Conclusion 47 2.3 Crises Caused by Rising Real Wages 47 2.3.1 Introduction 47 2.3.2 The Difference between Labour Power and a Commodity 48 2.3.3 The Mechanism Regulating the Level of Wages 50 2.3.4 The Long-term Trend in Wages 50 2.3.5 The Role of Trade Unions in Wage Determination 53 2.3.6 Conclusion 54 2.4 Conclusion 55

3 Marx's Theory of Rent 56 3.0 Introduction 56 3.1 Differential Rent I 58 3.2 Differential Rent II 61 3.3 Monopoly Rent I 64 3.4 Monopoly Rent II 67 3.5 Conclusion 68

4 Marx's Theory of Productive and Unproductive Labour 70 4.0 Introduction 70 4.1 'Definition I' of Productive and Unproductive Labour 70 4.2 'Definition II' of Productive and Unproductive Labour 72 4.3 Conclusion 76 Contents IX

PART n FRENCH MARXIST URBAN SOCIOLOGY: THE CASE OF MANUEL CASTELLS AND JEAN LOJKINE

5 The Different Marxist Traditions of CasteUs and Lojkine: Althusserianism and State Monopoly Capitalism 81 5.0 Introduction 81 5.1 The Althusserian Framework 81 5.2 The Theory of State Monopoly Capitalism 85 5.3 Conclusion 88

6 The Marxist Urban Sociology of Manuel Castells 89 6.0 Introduction 89 6.1 The Critique of Urban Sociology 90 6.1.1 Introduction 90 6.1.2 Science' and 'Ideology' in Urban Sociology 90 6.1.3 92 6.1.4 Urbanisation 94 6.1.5 Conclusion 95 6.2. Collective Consumption 95 6.2.1 Introduction 95 6.2.2 Defining an Urban Area as an Area of Collective Consumption 96 6.2.3 The Effects of Collective Consumption 98 6.2.4 Conclusion 101 6.3 The Urban System 101 6.4 Urban Politics 104 6.5 105 6.5.1 Introduction 105 6.5.2 The Typology of Urban Actors 106 6.5.3 The Causes of and Constraints upon Urban Planning. 106 6.5.4 Conclusion 108 6.6 Urban Social Movements 109 6.6.1 Introduction 109 6.6.2 The Definition of an Urban 109 6.6.3 A Framework for the Analysis of Urban Social Movements III 6.6.4 Conclusion 113 6.7 Empirical Research 114 6.7.1 Introduction 114 x Contents

6.7.2 Research on Industrial Location in the region 115 6.7.3 Research on Urban Renewal in Paris 118 6.7.4 Research on Protests against Urban Renewal in Paris 121 6.7.5 Research on Urban Protests in Montreal 123 6.7.6 Research on Urban Development in Dunkirk 125 6.7.7 Research on Immigrant Workers in Western Europe 134 6.7.8 Research on Urban Protests in Paris 136 6.7.9 Conclusion 138 6.8 Conclusion 139

7 The Marxist Urban Sociology of Jean Lojkine 141 7.0 Introduction 141 7.1 The Definition of an Urban Area 142 7.2 The Collective Means of Consumption 143 7.2.1 Introduction 143 7.2.2 The 'Collective' Nature of the Collective Means of Consumption 143 7.2.3 The 'Unproductive' Nature of the Collective Means of Consumption 144 7.2.4 The Unprofitable Nature of the Collective Means of Consumption 147 7.2.5 The 'Durable', 'Immobile' and 'Indivisible' Nature of the Collective Means of Consumption 148 7.2.6 Conclusion 149 7.3 The Three Problems associated with Capitalist Urban Development 150 7.3.1 Introduction 150 7.3.2 The Problem of Financing Urban Expenditure 150 7.3.3 The Problem of the Locational Strategy of Capitalist Firms 154 7.3.4 The Problem of Urban Land Rent 154 7.3.5 Conclusion 159 7.4 Urban Planning 160 7.5 Social Movements 163 7.6 Empirical Research 167 7.6.1 Introduction 167 7.6.2 Research on Urban Policy in Paris in the Period 1945 - 72 167 Contents xi

7.6.3 Research on Urban Policy in Lyon in Period 1945~ 72 174 7.6.4 Conclusion 179 7.7 Conclusion 180 PART 01 AN ALTERNATIVE APPROACH TO MARXIST URBAN SOCIOLOGY

8 From Marxist to Post-Marxist Urban Sociology 185 8.0 Introduction 185 8.1 The Marxist Urban Sociology of Manuel Castells and Jean Lojkine 185 8.l.l Introduction 185 8.1.2 The Definition of an Urban Area Contained in the of Caste lis and Lojkine 185 8.1.3 The Analysis of Collective Consumption in the Writings of Castelis and Lojkine 187 8.1.4 The Analysis of Urban Planning in the Writings of Castelis and Lojkine 189 8.1.5 The Analysis of Urban Movements in the Writings of Caste lis and Lojkine 190 8.1.6 Conclusion 191 8.2. A Conflict Approach to Urban Sociology The Constrained-Actor Model 192 8.3 Urban Areas and Urban Processes: The Field of Urban Sociology 195 8.4 The Production of Urban Areas: The Process of Property Development 196 8.5 State Property Development 197 8.6 Private Property Development 200 8.6.1 Introduction 200 8.6.2 Constraints upon the Interests of Private Property Developers 200 8.6.3 Constraints upon the Interests of Landowners 204 8.6.4 Constraints upon the Interests of the State Planning Authority 205 8.6.5 Summary 207 8.7 Production in an Urban Area 208 8.7.1 Introduction 208 8.7.2 The Supply of Labour in an Urban Area 208 8.7.3 The Demand for Labour in an Urban Area 211 8.7.4 Summary 213 xu Contents

8.8 Consumption in an Urban Area 214 8.8.1 Introduction 214 8.8.2 A Typology of Consumption Goods 215 8.8.3 The Spatial Dimension of Consumption 217 8.8.4 The Dwelling Unit 220 8.8.5 Tenure Groups and Changes in the Site Value of Dwelling Units 222 8.8.6 Individual and Collective Reaction to Changes in Consumption 223 8.8.7 Resignation 225 8.8.8 Migration 225 8.8.9 Collective Action 226 8.8.10 Summary 229 8.9 Conclusion: New Directions for Marxist Urban Sociology 229

Notes 231 Bibliography 253 Name Index 274 Subject Index 277 List of Tables and Figures

TABLES 4.1 Marx's 'Definition I' of productive and unproductive labour 73 4.2 Marx's 'Definition II' of productive and unproductive labour 75 6.1 Castells's concept of the urban system 103 6.2 The sub-elements in Castells's urban system 104 6.3 Castells's typology of urban actors 106 6.4 Castells's typology of practices and their effects 110 6.5 Castells's typology of industrial establishments 117 6.6 The index of differentiation for 23 renewal areas in Paris on selected variables 119 6.7 Correlations between the areal size of renewal operations and selected variables in Paris 120 6.8 Some characteristics of Dunkirk and the Nord Region according to Castells 128 6.9 Castell's description of the fractions of the capitalist class and their interests in Dunkirk 130 6.10 Castells's description of the fractions of the working class and their interests in Dunkirk 131 6.11 Castells's typology of urban protests in Paris, 1968-1973 137 7.1 Lojkine's analysis of different types of rent in different urban situations 156 8.1 The constraints and conflicts generated in the process of private property development: sources of constraints on actors in the development process 202 8.2 A typology of consumption goods 216 8.3 A typology of the reactions of residents to a negative consumption good in their area 224

Tables in Notes

Nl Number of citations per year of the works of Manuel Castells and Jean Lojkine and the average number of citations of each cited author in the Citation Index (1969-84) 231 N2 A typology ofland 238 N3 A typology of private and public goods 250

xiii XIV List of Tables and Figures

FIGURES

1.1 The relationships between physical value and price quantities 22 2.1 The relationship between wages and profit for different techniques of production 34 2.2 The shares of profits and wages in net output 51 2.3 Marx's view of the effect of an increase in net output upon the shares of profits and wages 53 3.1 The relationship between output and type ofland 59 3.2 The relationship between output, type ofland and rent 61 3.3 The relationship between output, technique of production and rent 63 3.4 The incidence of monopoly rent I on different types ofland 65 6.1 The determinants of urban culture according to Castells and Wirth 93 8.1 The process of property development 197 8.2 The externality gradient of a negative communal consumption good 218 8.3 The externality field of a negative communal consumption good 218 8.4 The externality gradient of a consumption good with both positive and negative effects 219 8.5 The externality field of a consumption good with both positive and negative effects 219

Figures in Notes

N I The growth of population and resources according to Malthus 237 N2 Reasons for household relocation 249 Acknowledgements

I am very grateful to Chris Pickvance of the University of Kent at Canterbury for his painstaking and constructive comments on earlier drafts of this book. He is not, of course, responsible for any errors that remain nor does he necessarily share all the views expressed in it. I would also like to thank Mary O'Malley for her careful typing at every stage in the preparation of the book.

KIERAN McKEOWN

xv General Introduction

Marxist urban sociology, though a relatively recent development, is currently a major school within urban sociology (see Lebas, 1982, for a comprehensive bibliography of the literature constituting this school). The school emerged in the late 1960s largely as a result of growing academic disenchantment with the prevailing approaches to urban sociology. The new approach - sometimes referred to as 'the political economy approach' (Harloe, 1979, p. 5; Lebas, 1981, p. xi; 1982, p. 20)­ is now entering its second decade and this is an appropriate time to evaluate it. This book focuses upon the writings of Manuel Castells and Jean Lojkine, who have made centrally important contributions to this new body of literature while at the same time representing different approaches within it. Thus their work represents, to some extent, both the unity and the diversity of the new school. Manuel Castells and Jean Lojkine are sociologists whose has attempted to apply a Marxist perspective to the analysis of urban areas. Throughout the 1970s and early 1980s their writings have generated considerable and growing interest within the social sciences generally. I In the present study their writings will be analysed and discussed in detail. Their work will be located in their respective traditions of and evaluated from the point of view of Marx's political economy. Having identified inadequacies in their understanding and application of Marx's political economy, the book will attempt to provide an alternative to the approach of Castells and Lojkine. This will be done by redefining the field of urban sociology in terms of three basic processes, namely, the process by which urban (that is, built-up) areas are produced, the process by which they are used for the production of commodities and the process by which they are used for final consump­ tion. These three processes will be analysed using a constrained-actor model of society. This results in an analysis of urban processes which, although it is not strictly Marxist, nevertheless maintains the Marxian emphasis upon the role of interests and conflicts in social interaction. The critique of the work of Castells and Lojkine which is presented in this book is made from a particular point of view based upon the premise that the validity of a Marxist analysis of urban areas is ultimately dependent upon the validity of Marxism itself. Since, in turn, the validity of Marxism is dependent upon Marxist political economy, the critique of Castells and Lojkine will focus upon the major issues of political

xvii XVlll General Introduction economy which are suggested, implicitly or explicitly, by their work. The book is written in three parts. Part I, containing Chapters I, 2, 3 and 4, provides an overview of Marxian political economy. Marx's theories of value, crisis, rent and productive labour are analysed in detail. It will be shown that significant difficulties exist with virtually every substantive aspect of Marx's political economy. This finding will be the basis for appraising the way in which Castells and Lojkine use this political economy. Part II, containing Chapters 5, 6 and 7, examines the French Marxist urban sociology of Manuel Castells and Jean Lojkine. The examination begins in Chapter 5 by locating the work of Castells and Lojkine within their respective traditions of Marxism. In the case of Castells that tradition is normally referred to as 'Althusserianism' and in the case of Lojkine it is 'State Monopoly Capitalism'. The purpose ofthis chapter is less to evaluate these traditions than to provide the reader with the necessary background and terminology for understanding the work of Castells and Lojkine. The main thrust and focus of the critique is contained in Chapters 6 and 7 where the entire works of Castells and Lojkine are discussed successively. In each ofthese chapters the strategy is to outline and evaluate the conceptual framework of each author and follow this with an assessment of his empirical research. Part III, containing Chapter 8, presents an alternative approach to Marxist urban sociology. This alternative, which avoids the major difficulties associated with the work of Caste lIs and Lojkine, begins from the premise that urban areas are essentially built-up areas. A con­ strained-actor model of society is then applied to understand how these built-up areas are produced in a capitalist society and how, in turn, they are used both for the production of commodities and for final consumption. This new formulation of the field of urban sociology contains an analysis of urban space which tries to advance our understanding of the constraints and conflicts generated by the production and use of urban areas in a capitalist society.