Declining Suburbs in Europe and Latin America

Volume 36.2 March 2012 226–44 International Journal of Urban and Regional Research DOI:10.1111/j.1468-2427.2011.01093.x Declining Suburbs in Europe and Latin America IVONNE AUDIRAC, EMMANUÈLE CUNNINGHAM-SABOT, SYLVIE FOL and SERGIO TORRES MORAES Abstract ijur_1093 226..244 Suburban shrinkage, understood as a degenerative urban process stemming from the demise of the Fordist mode of urbanism, is generally manifested in a decline in population, industry and employment. It is also intimately linked to the global restructuring of industrial organization associated with the rise of the post-Fordist mode of urbanism and, more recently, the thrust of Asian industrialization. Framed in the discourse of industrial urbanism, this article examines the first ring of industrial suburbs that developed around large cities in their most rapid Fordist urbanization phase. These industrial suburbs, although they were formed at different times, are today experiencing specific mutations and undergoing profound restructuring on account of their particular spatial position between the central area and the expanding peripheries of the postFordist metropolis. This article describes and compares suburban decline in two European cities (Glasgow and Paris) and two Latin American Cities (São Paulo, Brazil and Guadalajara, Mexico), as different instances of places asymmetrically and fragmentarily integrated into the geography of globalization. Introduction Although the history of European and Latin American suburbanization is very different, postwar metropolitan change in both regions has become increasingly susceptible to economic restructuring associated with the global industrial and commercial shift from the North Atlantic Seaboard to the Western Pacific Rim (Dicken, 2003). This global shift, which has privileged some regions, has had profound consequences in both industrialized and newly industrialized countries (NICs). Intra-metropolitan regions connected to the global circuitry of economic flows (i.e. foreign direct investment and finance, high-tech industries, and advanced producer services) have generally prospered, while those with high concentrations of blue-collar industries have stagnated and declined (Sassen, 1994; 2001; Castells, 1996; Lo and Marcotullio, 2000; Harvey, 2005). The ascent of neoliberalism and trading blocs, widespread deindustrialization, international and domestic immigration, postwar demographic transitions and new rounds of technological restructuring have had dramatic implications for European and Latin American suburbs usually embedded in expanding metropolitan regions. Suburban shrinkage, which we define as a combined process of population loss, economic downturn, employment decline and social crisis, is today intimately linked to local and regional economic growth processes brought on by global investment and trade, and by global restructuring of industrial organization (Gereffi et al., 2005). The European part of the work was supported by ANR (National Research Agency, France) under a ‘young researcher grant project’, Shrinking Cities, ANR-06-JCJC-0058. © 2012 Urban Research Publications Limited. Published by Blackwell Publishing, 9600 Garsington Road, Oxford OX4 2DQ, UK and 350 Main St, Malden, MA 02148, USA Declining suburbs in Europe and Latin America 227 Framed within the discourse of industrial urbanism (Soja, 2000), this article analyses and compares suburban decline in two European cities (Glasgow and Paris) and two Latin American cities (São Paulo, Brazil and Guadalajara, Mexico), as different instances of places asymmetrically and fragmentarily integrated in the geography of globalization. In Paris, the article examines the ‘red-belt’suburbs; in Glasgow, the Govan area. The Parisian case traces the suburban evolution from thriving industrial periphery in the 1960s to current inner suburban cités (tower block ensembles), well known for the 2005 riots. The Govan case1 tracks the area’s evolution from a world-leading shipbuilding centre in the nineteenth and early twentieth century to the postwar demise of its main industry, together with today’s regeneration efforts. In Mexico we focus on Guadalajara’s shrinking ‘Silicon Valley’, and in Brazil on São Paulo’s São Caetano suburb in the ABC region (the three original constitutive towns of Santo André, São Bernardo do Campo and São Caetano do Sul). The Latin American cases exemplify the role of transnational corporations (TNCs) and the real estate industry in linking and delinking places from the geography of globalization and their concomitant effect on the growth and decline of suburban areas. In these different contexts the article analyses the common process of deindustrialization and restructuring brought on by post-Fordist urban transformations. Industrial urban peripheries under three modes of industrial urbanism According to economic geographers, the distinctive feature of the current phase of globalization is the expansion, diffusion and networking of industrial urbanism and capital on a global scale (Soja, 2000). Fundamental changes in the technology and organization of industrial production, from the nineteenth-century factory system to the current post-Fordist era, have been the drivers and shapers of cities and their peripheries (suburbs, exurbs and urban regions). Rather than viewing suburbanization as essentially the outcome of an expanding middle class moving beyond the city limits to consume more space, as surmised by the Chicago School, geographers of industrial urbanism — some associated with the California School of Urban Geography (Storper, 1997; Scott, 1998; Soja, 2000) — privilege the dynamics of industrial production of goods and services, including information, entertainment and culture, as fundamental explanations of urban restructuring. The sociospatial unravelling of these dynamics in specific urban contexts is industrial urbanism’s focus of study. Industrial urbanism seeks to understand the generative and degenerative urban forces stemming from changes in capitalism, which are evident during historical moments of crisis-generated restructuring. Borrowing from Kondratieff and Schumpeter’s economic cycles, Scott (1995, cited in Soja, 2000) identifies three major global-restructuring cycles, each associated with different modes of industrial urbanism, which serve to frame historically the three types of suburbs profiled in this article (see Figure 1). The factories and mills of the first half of the nineteenth century correspond to the first mode of industrial urbanism epitomized by industrial cities like Glasgow in Scotland and their peripheral industrial burghs like Govan, which thrived on dye works, silk mills and early shipbuilding, and the Paris ‘red-industrial suburbs’ like Saint-Denis, whose economies were dominated by the textile and chemicals industries. The second mode of industrial urbanism dates to the 1920-to-1970 Fordist period of mass production symbolized by Detroit and the automobile industry in the US. However, the period also includes the spread of this industry in Latin America via TNCs. In Brazil, as in most of Latin America, the Fordist period coincided with the take-off of 1 Govan is now included in the Glasgow city limits. The term suburb still applies to Govan if we use the definition given by Domingues (1994). Domingues defines the suburb first of all in terms of ‘social’ rather than spatial or geometric distance from the city centre. The suburb is a territory that is viewed by the centre as being ‘subordinate’, hence ‘dependent’, within the complex urban space. International Journal of Urban and Regional Research 36.2 © 2012 Urban Research Publications Limited 228 Ivonne Audirac et al. Note: Each era arises from crisis-generated industrial shifts and restructuring processes operating at all scales of the capitalist economy from the local to the global Figure 1 Contemporary effects in suburbs of the North and South in three eras of industrial urbanism (source: authors’ construct; data on eras derives from Soja, 2000) International Journal of Urban and Regional Research 36.2 © 2012 Urban Research Publications Limited Declining suburbs in Europe and Latin America 229 modernization under import substitution industrialization (ISI).2 American and European car manufacturers agglomerated in the São Paulo industrial ABC suburban region.3 The Fordist metropolis is the urban form of the period, characterized by mass suburbanization impelled by new rounds of industrial and technological restructuring and facilitated by massive investment in roads, communications and public infrastructure supporting car, truck and air transport in the US and Latin America, while in Europe a greater emphasis was given to rail transport. The third industrial urban mode corresponds to the post-Fordist period from the 1970s, characterized by the shift from large industrial complexes — organized for mass production and consumption — to globally dispersed and deeply networked flexible and lean systems of production. Facilitated by new information and communication technologies (ICTs) and the global ascent of neoliberal political and economic regimes (Gereffi, 2005; Harvey, 2005), these new industrial global complexes — spearheaded by TNCs — take advantage of a new international spatial division of labour and geographic arbitrage. The resultant geography of manufacturing, off-shoring and outsourcing, buttressed by flexible and lean production, materialized first in the emergence of rapid industrializing regions in the global South, followed by deindustrialization of former Fordist industrial cities and regions in both the global North and South. However, China’s global rise in manufacturing and trade marks a new era of industrial restructuring (Henderson, 2008) with repercussions felt throughout the world. These effects were particularly severe among Latin American NICs such as Mexico, where suburbs and the metropolitan peripheries of cities like Guadalajara, the 1990s’ recipients of new industrializing growth in electronics, saw their fortunes vanish as the industry globally reorganized to capitalize on Asian global competitive advantages (Dussel, 2005; Gallagher and Zarsky, 2007). In the current post-Fordist global era, the leading industries — be they high-technology, aerospace, electronics or financials — are globally organized and selectively localized depending on the relative global and regional competitive advantage that each place offers. This glocalization of production has brought about an unprecedented expansion in the scale and scope of metropolitan regions, which renders increasingly anachronistic Fordist monocentric models of city and suburbs not only in the US but also in Western Europe and Latin America (Aguilar and Ward, 2003; Pacione, 2009). The multifarious naming of the post-Fordist metropolis (from post-suburbia to postmetropolis) continues to this day and emphasizes the regional scale of a polynuclear industrial urbanism in which the binary metropolis of central city and suburbs explodes into ‘a regional carpet of fragmented communities, zones and spaces’ (Graham and Marvin, 2001: 115). Glocal growth of new industrial production — typically in wealthy or amenity-endowed ‘premium networked’ spaces — coexists with declining Fordist industrial districts, ports and suburbs as well as with new crisis-generated restructuring of peripheral places (Soja, 2000; Pacione, 2009). These declining places are increasingly rendered redundant by virtue of their exclusion from glocal networks of production and consumption (Castells, 1996; Graham and Marvin, 2001). In cities of the global North, declining places — dubbed ‘shrinking cities’ — concentrate the very poor and homeless, often immigrant and elderly populations, and characteristically contain crumbling infrastructures, vacant deteriorating housing and heavily polluted environmental 2 ISI is an economic policy devised to increase a country’s economic self-sufficiency through the growth of domestic industries. The development theory behind ISI, formulated by Latin Americans Raúl Prebisch and Celso Furtado, was influenced by Keynesian ideas of state-induced industrialization via large public spending. The policy was adopted in Latin America from the 1930s until the 1980s. During the 1980s, induced by Latin America’s debt crisis and IMF structural adjustment policies, ISI was abandoned for free trade, export-driven development, deregulation of foreign investment and privatization. 3 The ABC region is a powerful industrial agglomeration whose strong labour unions fought against the military dictatorships in the 1970s and 1980s. International Journal of Urban and Regional Research 36.2 © 2012 Urban Research Publications Limited 230 Ivonne Audirac et al. wastelands; in the global South, deindustrializing Fordist places may be undergoing industrial reconversion, remaining idle and dilapidating, or are being absorbed into sprawling squatter settlements. In this glocal context, the three types of industrial suburbs examined here, which developed around large cities in their phase of most rapid urbanization, are today experiencing specific mutations. Although they formed during different time periods, these territories are today undergoing profound restructuring on account of the aforementioned urban transformations. The four European and Latin American cases offer specific instances of ‘shrinkage’. ‘Shrinking cities’ is an umbrella term used here to denote the scope of the negative externalities inherent in new growth processes associated with post-Fordist modes of industrial urbanism in the global North and South. European and Latin American suburbanization From one continent to another, the process of suburbanization has been very different and has resulted in different characteristics. In Europe, the expansion of industrial suburbs began before the turn of the twentieth century, and was linked to the process and rapid pace of industrialization. Faced by growing pressure for development on limited land, industries were forced to move to peripheral areas where land was available at more competitive rates and better served by the expanding rail network. At the same time that factories, especially those of the most heavily polluting and land– hungry kind, were established in the suburbs, a growing working-class population predominantly from city centres moved into these areas (Faure, 1986; Magri and Topalov, 1989). Compared to the American model of car-based, postwar whitemiddle-class residential suburbs, Fordist industrial European suburbs are workingclass areas of which the Parisian ‘Red Belt’ is an archetype. Since the 1970s, industrial and working-class areas in inner ring suburbs have undergone marked restructuring (Malézieux, 1991; Beckouche et al., 2001). First, the restructuring of the Fordist metropolis led to new patterns of social segregation and increasing sociospatial polarization between affluent and poor neighbourhoods, while the post-Fordist conversion of local production systems into regional production poles accentuated these territorial imbalances (Soja, 1996; 2000; Pacione, 2009). Today, some privileged areas are regrowing at a fast pace, while others are still sites of unemployment and increasing poverty (Bacqué and Fol, 2000). In Latin America, the process of suburbanization ran close to the European one, but the unequal socioeconomic context of Latin American urban development through the first part of the twentieth century and, later, the impact of globalization imprinted a quite different morphology onto the suburbs. During the period of import substitution industrialization (ISI), Latin American suburbs grew due to the establishment of industries in areas relatively distant from the metropolitan centre, along railways. However, along with these formal industrial and residential suburbs, a spontaneous growth occurred in the metropolitan peripheries, characterized by illegal occupation and rapid expansion of an enormous informal economic sector, which to this day defies North American and European suburban growth models (Domingues, 1994). In Brazil, the explosion of sprawling low-income settlements occurred due to intense urbanization and rural-to-urban migration during the 1960s and 1970s. Nowadays, many former industrial suburbs in megacities like São Paulo have evolved into a metropolitan ring of municipalities with their own suburbs and problems. These early suburbs have tried somehow to overcome the decay and decline resulting from post-Fordist industrial decentralization and dispersion occurring as a result of post-ISI economic restructuring and economic globalization (Campolina and Diniz, 2007). While natural demographic increase and in-bound migration to Mexican primate cities (Mexico City, Guadalajara and Monterrey) characterized the bulk of the ISI Fordist period (the 1950s to the 1970s), by the end of the 1980s central city populations had International Journal of Urban and Regional Research 36.2 © 2012 Urban Research Publications Limited Declining suburbs in Europe and Latin America 231 declined as a result of urban demographic transition4 and industrial and commercial decentralization.5 The ecology of Latin American suburbanization can be characterized by a series of affluent urban wedges whose income gradients increase toward the periphery. These wedges are embedded in a larger system of nucleated ring zones of poor and workingclass areas whose income and population gradients decrease toward the periphery. Periurban expansion typically happens through informal settlement accretion (ChavezGalindo and Savenberg, 1996; Ward, 2004). Post-Fordist transformations in the industrial and working-class suburbs of Paris and Glasgow Playing a significant role in the development of the Parisian urban region, the municipalities that make up the inner suburban ring around Paris have afforded both privileged sites for the establishment of industry and residential areas for their working populations. Among these nineteenth-century territorial patterns, the ‘red suburb’ (Fourcault, 1986; Bacqué and Fol, 1997) is the most typical example. However, by the 1960s, industry had begun to move progressively away from the capital city and the inner suburbs, further out into the Parisian urban region (Beaujeu-Garnier and Bastié, 1967; Savitch, 1988). The loss of industrial jobs was at first compensated by the creation of jobs in services.6 However, in working-class territories, an ever-increasing gap between the skills demanded by the new jobs and residents’ qualifications led to structural unemployment, which greatly affected the towns in the former ‘red’ suburbs. The town of Saint Denis, once a symbolic location in the royal history of France,7 developed as an industrial suburb at the end of the nineteenth century, with the establishment of large enterprises from the metallurgic, textile and chemical industries. Saint-Denis is one of the most densely populated towns in the Parisian inner suburban ring. Situated on the northern border of Paris, its early industrialization resulted from good transport facilities along with ample land available in the border zone of Paris (known as the Plaine Saint-Denis). The population of Saint-Denis increased rapidly, approaching 100,000 towards 1950. In Saint-Denis the move of business away from the area began earlier than in the rest of Paris, and it affected the dominant heavy industry, which was the town’s economic mainstay. However, not all local economic sectors were affected by this relocation, since new service-sector business set up in Saint Denis over the same period, triggering a full-scale reshaping of the town’s economic landscape.8 Govan’s position, on the banks of the River Clyde four kilometres from Glasgow’s city centre, favoured a shift from a mere rural fishing village to the ‘shipbuildingest burgh in the world’ (Macdonald, 1951). Rapid industrial development, at first based on textiles and coal mining, was dramatically boosted by the arrival of the first shipyards in the 1840s. The population rose from 2000 inhabitants in 1836 to 60,000 in 1891 and grew to 91,000 in 1901 (Brotchie, 1938). At the turn of the century, Glasgow finally annexed the burgh of Govan, then peaking in prosperity and population. As one of the cradles of Scottish labour militancy stemming from the shipyards’ earliest trade unions, Govan has 4 Latin America is going through the different stages of demographic transition. The urban populations of countries such as Brazil and Mexico are in the second stage and moving into the third stage — characterized by lower fertility and mortality rates (Lustig, 2000). 5 Increased integration between the Mexican and US economies through the North American Free Trade Agreement (NAFTA). 6 In Saint-Denis between 1968 and 1982 industrial employment fell from 44% to 30% while employment in services rose from 45% to 61%. 7 The Basilique de Saint-Denis was the royal necropolis where French kings were buried. 8 Between 1958 and 1962, 22 firms moved from Saint-Denis, removing 6,700 jobs. In 1971, 6,000 jobs had replaced these, mainly in services. International Journal of Urban and Regional Research 36.2 © 2012 Urban Research Publications Limited 232 Ivonne Audirac et al. since maintained a particularly strong and militant local working-class identity. However, by the 1960s and within two decades (1965–1985), the world-renowned Clydeside shipbuilding industry saw most of the shipyards closed down, followed by the demise of many of their subcontractors. Govan, at the heart of the shipyard industry, then experienced massive unemployment, a drastic drop in population, and took on something of the appearance of a ghost town, with the multiplication of empty lots and shops. Saint-Denis’ economic restructuring and shift towards services without offsetting the number of industrial-job loses9 became even more pronounced from the 1970s on. Between 1975 and 1992, the number of industrial workers decreased by about two thirds. Changes in the local job market exacerbated the problem of skill mismatch: in 1999, executive and managerial jobs represented 21% of local jobs but only 8% of these jobs were held by residents. Conversely, blue collar jobs and low-grade white collar jobs represented respectively 21% and 27% of the jobs on offer, while workers in these categories accounted for 30% and 37% of the working population. This mismatch resulted in a hike of more than 20% in the unemployment rate of the working population. Unemployment and precarious employment most frequently affected young people and immigrants. Changes in employment patterns were accompanied by profound demographic changes and in the transformation of the town’s social structure. Between 1968 and 1999, despite a high birth rate, the population fell from 99,000 inhabitants to less than 86,000. This change was linked to increasing numbers of residents moving away.10 From a high of 60% in the 1954 census, the blue-collar workforce fell to less than 30% in 1999. The share of non-French populations, representing 12% of the total population in 1954, rose to 26% (22,500 inhabitants; INSEE, 1999). In Govan, the history of the demographic, economic and social effects of post-Fordist restructuring is more difficult to decipher on account of recurrent redefinitions of territorial boundaries. Thus, statistically speaking, only the last 10 years can be accurately estimated. However, given its mono-industrial status, decline in Govan was undoubtedly more severe than in Saint-Denis. Over the last 30 years more than 60 Govan shops have closed and 70% of its tenements have been demolished for sanitary reasons with replacement council housing built in distant large developments. This led to a sudden, unprecedented decline in population, school closures, loss of social infrastructures, and the break-up of the historical community. In the space of 10 years (1991–2001) the three wards of Govan, Ibrox and Drumoyne along the Clyde, making up the former Greater Govan industrial quarter with 21,393 inhabitants, lost 18% of their population. The population remaining in Govan today is particularly poor, since 51% of adults of working age are unemployed (twice the Glaswegian average), and among these 40% have not worked in the last 5 years. Adaptation of local policies in Saint-Denis and Govan In the Paris area, as in the Glasgow area, local territories have entered into fierce competition for investment, which is characteristic of contemporary forms of globalization (Boland, 2007; MacLeod et al., 2003). Some of them have mutated from declining industrial, working-class towns into shining examples of a dynamic mode of local development based on international investments and the promotion of leading activities such as high-tech and ITC industries or high-level producer services (Fol and Sabot, 2003). In Glasgow, former industrial areas are the locus of considerable investment, via the conversion of abandoned industrial premises (where there are still communities with high rates of unemployment) into recreational consumer spaces and 9 The town lost 17% of its jobs between 1970 and 1983. 10 While nearly 10,000 inhabitants left Saint-Denis between 1968 and 1975, the number of out-migrants reached more than 11,000 between 1975 and 1982, 9,000 between 1982 and 1990 and almost 14,000 between 1990 and 1999. International Journal of Urban and Regional Research 36.2 © 2012 Urban Research Publications Limited Declining suburbs in Europe and Latin America 233 luxury residential real estate (Sabot, 1999; Cunningham-Sabot, 2007a). In the former ‘red’ suburbs of Paris, Saint-Denis and its neighbours have seen a much more ambivalent evolution: while investment and economic activity are progressing at a sustained rate in the best locations (Halbert, 2007) accompanied by moderate levels of gentrification in certain quarters (Bacqué and Fol, 1997), parts of these territories, especially the cités located at the periphery of these suburban towns, are growing markedly poorer. Unlike the situation that arose from Glasgow’s municipal policies towards Govan (demolition and dismantling of social/council housing, see Hall and Cunningham-Sabot, 2007), Saint-Denis, initially a socialist and then a communist municipality, has maintained a social and political identity specific to the ‘red’ suburbs. In the immediate postwar period, the red suburbs embarked on local housing policies centred on the mass-production of public housing characteristic of the ‘red’ belt (Bacqué and Fol, 1997). Between 1952 and 1975, 12,000 public housing units were built in Saint-Denis, 70% of which were undertaken by municipal agencies. The town today comprises 43% public housing, a significant amount of which is in large projects, the (in)famous cités that were the scene of riots in 2005. Although policy implementation has been different in Govan and Saint-Denis, the same processes of ‘out-migration’ and impoverishment of the remaining populations in the surviving housing estates, has occurred. A study published by the Glasgow Housing Association (GHA) (2004) confirms that 81% of GHA tenants were on unemployment benefit or without work, a third of the tenants were classified as ‘permanently sick’ or disabled, and 60% were one-person households. Likewise, Saint-Denis has been prone to pauperization among tenants in its local public housing. This housing, initially designed for a diverse population of workers and middle-class employees, was progressively abandoned by the better-off, who moved out to become homeowners on the periphery, while the less well-off, often immigrants and second-generation tenants, moved in. Although public housing policy in terms of household income limits did not change, increasing unemployment and economic difficulties rendered the occupants of this housing more and more socially and economically vulnerable. In this context, Saint-Denis municipal decision-makers were torn between two objectives: responding to the difficulties experienced by the least privileged households, or restoring and preserving the social mix. The latter objective was a response to fear of the social fragmentation of the city, and to the desire to market a new city image by appealing to other more affluent social groups. Saint-Denis’ large urban projects, such as the renovation of the centre and the redevelopment of the Plaine Saint-Denis, were situated in the most attractive urban sectors and targeted populations that were notably different from those living in the rest of the town, particularly from residents of public housing estates (Bacqué and Fol, 2005). A far more radical policy of gentrification has been established by the Glasgow municipality (Cunningham-Sabot, 2007a). A series of high-rise luxury flats line the river or the former docks converted into marinas. Property prices there are the highest in the city. Some are already complete and lived in, others are still on the drawing-board, and this is mobilizing the inhabitants of Govan who are proposing alternatives entailing a more mixed offer of housing, with building heights more in harmony with the rest of the quarter, and opposing the creation side by side of two worlds, the haves and have-nots, each in their own ghetto. In the 1960s, the French municipalities in the ‘red’ suburbs adopted economic policies aimed at protecting the industrial sector. However, by the 1980s these policies shifted to promoting and maintaining economic activity. The priority was to retain economic wealth and jobs by finding realistic and, if possible, prestige-generating development opportunities. Saint-Denis attempted to attract enterprises in the research and development sector. The former industrial site of la Plaine Saint-Denis, after a period of deep crisis due to deindustrialization, modernized and became more and more serviceoriented. Today run-down areas, with widespread poverty, can still be seen near brand new office buildings constructed during the last few years. Presently, this territory faces International Journal of Urban and Regional Research 36.2 © 2012 Urban Research Publications Limited 234 Ivonne Audirac et al. development pressures on a regional scale11 on account of its high real-estate prices and economic potential related to its exceptional location on the fringes of Paris. In Govan only one shipyard, under constant financial threat, remains today. The shipyard employs highly qualified engineers and technicians, whose skills are far above those of the local population. Post-Fordist restructuring of the shipyards and heavy industry’s allied economic activity has left in its wake huge areas with a shrinking economy surrounded by a scattering of fragile islets of prosperity. These prosperous sites stand out as exceptions conforming to Castells’ (1996; 2002) dual-space economy of the information society. Social gaps in access to global networks render those spaces sidestepped by globalization ‘black holes’, while the future of those able to remain globally connected is constantly uncertain. The evolution of the shipyards in Govan is an instance of the local transitory nature of post-Fordist industrial urbanism, seemingly susceptible to changes in the global organization of production.12 The other industrial wastelands, like the docklands left behind by the closure of the shipyards, have slowly been rehabilitated under the authority of the City of Glasgow and economic development agencies. Numerous prestige-industry zones have been created close to the city centre, but except for janitorial and security jobs they have not had much to offer in terms of local employment. The Glasgow municipality, in conjunction with its economic development agency, in order to make the site as a whole more attractive, cleaned it up and built recreation infrastructure that was both impressive and costly (the Scottish Exhibition, the Conference Centre, the Science Centre, the Millennium Tower. Private enterprise invested only when the risk was nil, and guaranteed profits at a maximum (Cunningham-Sabot, 2007b). Urban planning and economic regeneration as conducted thus far have not solved the problem of unemployment at the micro-local level. Indeed, the Govan community is experiencing an inexorable population decline, and, above all, equally inexorable social and spatial imbalances that are setting in and being reinforced by the policies now in place. With the departure of the middle and working classes, only the most underprivileged have remained in situ along with a trickle of the well-off living in luxury high-rise flats and marinas by the River Clyde. In other words, one challenge for Glasgow is to cease treating Govan as a jet-set ghetto, a renovated industrial suburb, a declining suburb without a future, and even a waste-tip suburb all at the same time,13 since these attitudes overall merely accentuate the tendency to increasing polarization between the areas inhabited by the rich and those inhabited by the poor. The growth and decline of Latin American peripheries The territorial dynamics of Latin American cities cannot be understood without bearing in mind their enormous socioeconomic inequality generated by longstanding, economic and political processes. The economic transformations in the last three decades and the adoption of neoliberal reforms in Brazil, Mexico and most of Latin America need to be taken into consideration in order to build a comprehensive framework for understanding industrial and demographic shrinkage on the continent. The process of the liberalization of the Brazilian economy in the 1980s played a significant role in the loss of the economic power of the São Paulo Metropolitan Region. Foreign direct investment (FDI) had impacts on other regions in the state and in the country with less skilled population 11 The outline plan for the Ile de France region sees it as a strategic element in the evolution of the Paris urban area. 12 Such as the ‘vertical disintegration of trans-national corporations, which are redefining their core competencies to focus on innovation and product strategy’ (Gereffi et al., 2005: 79). 13 In 2003 a waste processing plant involved in the transportation, crushing, reprocessing, bulk storage and redistribution of demolition waste and related materials, which would have created 30 foot high mountains of rubble and brought around 700 daily convoys of heavy trucks onto the streets of Govan, was successfully rejected by the local community. International Journal of Urban and Regional Research 36.2 © 2012 Urban Research Publications Limited Declining suburbs in Europe and Latin America 235 in a process named ‘reverse polarization’14 (Rodríguez-Pose and Tomaney, 1999). The relative economic stability reached in the late 1980s and the economic macro policies, which dismantled ISI and attracted FDI, favoured a relative dispersion of economic activity from the metropolis outward into the hinterland and a migratory flow of capital and jobs toward southeastern states (Perillo and Perdigão, 1998). The Metropolitan Region of São Paulo is a striking example of this process as it had a negative migratory balance caused by the dispersion of economic activity towards the hinterland of the state. The urban crisis, the lack of economic opportunities, social inequality and its territorial consequences ended up pushing out the population from the central metropolitan areas (Brito, 2006). In spite of the urban crisis, the land market has always played an important role in establishing a pattern of occupancy and mobility in Brazilian cities. Many sub-centres in the metropolitan area of São Paulo, including the city of São Paulo itself, have watched their city centres decay since the 1970s. Meanwhile an active real estate market has shifted to the metropolitan periphery inducing relative outward mobility of the economic elite. In developing countries like Brazil or Mexico, the complexity of the deindustrialization phenomenon cannot be simplified by drawing direct parallels with developed countries, such as the UK or France, where deindustrialization has been accompanied by a shift to services, and where the informal sector plays a negligible role. Campolina and Diniz (2007) analyse the evolution of territories such as the ABC region as ‘productive restructuration’. The reduction of industrial activity was not accompanied by a strong loss of productivity and the economy has been sustained by other sectors. However, other authors (Rodriguez-Pose and Tomaney, 1999) suggest that producer services such as financial, real estate and, above all, business services and those serving industries are clearly underdeveloped. They also notice that, between 1980 and 1983, the municipalities hosting the largest industrial complexes in the ABC region of São Paulo’s metropolitan area have lost much of their gross value added (GVA) to the rest of the state (Rodriguez-Pose et al., 2001). For them, the tertiarization of the economy, much of it absorbed by the informal sector, is not sufficient to compensate for the loss of well-paid industrial jobs. The case of São Caetano do Sul, one of the ABC municipalities discussed later, illustrates different industrial restructuring phases spearheaded by automobile TNCs during and after the ISI period. Latin American metropolitan areas, such as São Paulo and Guadalajara, which developed strong industrial sectors during the ISI period, experienced accelerated restructuring processes with shrinking metropolitan cores and fast expanding peripheries after neoliberal macro-economic reforms took place in the 1980s (Aguilar and Ward, 2003; Caravaca and Méndez, 2003; Roberts, 2005; Ramirez, 2006). Through the 1990s, newly industrializing metropolitan fringes and their hinterlands were the preferred recipients of industrial FDI. The feared Latin American deindustrialization resulting from China’s global presence and the flooding of local markets with Chinese manufactured goods is affecting countries like Mexico, which is losing manufacturing competitiveness to Chinese exports and facing diversion of US electronics manufacturing FDI to China (Dussel, 2005). Plant closures and job losses in export production, due to relocation to Asia, are instances of suburban deindustrialization and economic shrinkage, as witnessed in the recent boom and bust of Guadalajara’s electronics industry. Located in the city’s outer suburbs, it earned Guadalajara its sobriquet of ‘Mexico’s Silicon Valley’ in the 1990s. However, between 2001 and 2003 the city lost more than 45,000 jobs to Asia and particularly to China (Dussel, 2005; Jenkins et al., 2006). 14 In Latin America, ‘secondary cities and towns on the outskirts of large metropolitan regions have been more successful in attracting new investment than larger cities . . . Thus the region has experienced reverse polarization as high land and labor costs have created urban diseconomies in the largest cities and forced manufacturing plants to relocate beyond the main metropolitan boundaries’ (Cohen, 2004: 41). International Journal of Urban and Regional Research 36.2 © 2012 Urban Research Publications Limited 236 Ivonne Audirac et al. Post-Fordist restructuring in São Caetano do Sul São Paulo Metropolitan Area is Brazil’s strongest link to the globalized economy. Within the metropolitan area, the southeast sector, specifically the ABC region, hosts a concentration of the automobile industry, mainly old plants built in the ISI period. Here, the city of São Caetano do Sul stands out as a prime example of the effects of deindustrialization in Brazil. In the 1930s General Motors pioneered Fordist industry in Brazil, establishing its first plant in São Caetano, adjacent to the railroad that led to the biggest Brazilian port, Santos. Later, mainly under the Juscelino Kubitsheck government (1956–61), the ABC region attracted several international automobile enterprises, such as VW, MercedesBenz and Ford, and became the major Brazilian industrial centre. During this Fordist period, macro-economic policies expanded the national road system, which began to displace railroads as the principal transportation mode in the country. Within this context, several important industries (General Motors among them) which originally chose to locate in the city because of its proximity to the railroad moved away in the 1960s to be closer to newly developed highways (Klink, 2001). This first industrial relocation had a significant impact on the urban areas along the old railroads, and may be considered the beginning of the emptying and degradation of vast portions of the territory adjacent to former railroad corridors. Despite possessing the country’s most highly skilled workforce, the ABC region watched automobile TNCs relocate or start new plants in less expensive and less unionized regions of Brazil (e.g. Minas Gerais, Rio de Janeiro). Large industrial complexes and the network of small and medium-sized enterprises that developed around them in the ABC region became less competitive as a result of high wages and the development of urban structural bottlenecks associated with congestion, lack of space, strong and conflict-prone trade unions and an overall low quality of life (Rodríguez-Pose et al., 2001). In the 1970 census, São Caetano’s demographic growth was already lower than other municipal districts in the area. Since 1980, the city has experienced an absolute and constant decrease in population — from 163,282 inhabitants to 137,277 in the 2000 census. In the 1980s, the growth of commerce, services and industrial diversity helped the municipal district achieve increases in high-income professionals, which in 2003 resulted in the largest index of human development (IHD) being registered of all cities in the country. Meanwhile the population between 1991 and 2000 recorded a negative annual growth of almost 1%; there has also been a surge in apartment building construction, inaccessible to blue-collar residents. Given the costs of land and housing, São Caetano’s high level of quality of life is not affordable to the majority of residents. High housing costs and low birth rates are considered to be among the primary causes of the city’s population loss. The population is aging, becoming wealthier and having fewer children (Medice, 1993). Adaptation of local policies in São Caetano do Sul In the present Brazilian context, city administrations have rebranded vacant industrial areas as new sites of opportunity with images of prosperity effacing past industrial crises. In this sense, the former industrial areas are symbolically being transformed into the new urban landscape of a dynamic globalized society. Concomitantly, the deregulation of Brazilian land markets has attracted substantial foreign and domestic investment in real estate, which has flowed into the construction of new big commercial and residential developments in these locations. Within this urban dynamic, São Caetano has succeeded in keeping its economy afloat, changing its economic base to commerce and services. Since 2005, the city has tried to attract new technology industries through public–private partnerships with the intention of building a new technopole. Additionally, it has promoted high-income, gated residential condominiums on an old, unused industrial area. However, even though a International Journal of Urban and Regional Research 36.2 © 2012 Urban Research Publications Limited Declining suburbs in Europe and Latin America 237 technopole might revive the city’s economy, it might also increase social inequality through gentrification. Thus, it is important to highlight that São Caetano’s wealth has not reached everyone in the city. The poor continue to lack access to housing and, consequently, they continue to be expelled to the edge of the metropolis. In many cities of the ABC region, including São Caetano, the Statute of the City15 has facilitated the creation of public–private partnerships in support of infill development of vacant lands. Unfortunately, administrations have failed to take advantage of these new opportunities due to a resilient land oligopoly, the lack of public resources, and their own inadequate use of legal tools. Despite the Statute of the City legally requiring municipal administrations to reserve land for low-income housing in areas served by public infrastructure, the City’s new master plan (Prefeitura Municipal de S. Caetano do Sul, 2006) overlooks the requirement, revealing the clear intention of the city’s administration to promote the gentrification process. Guadalajara, Mexico’s shrinking Silicon Valley During the ISI period (1940–80), Guadalajara, the capital city of the State of Jalisco and the second largest city in Mexico, concentrated most of its heavy industry in several industrial parks located along railroad infrastructure in the municipio16 of Guadalajara, which is now the core of a metropolitan region, spanning more than six jurisdictional entities. However, an electronics and IT industry that emerged in the mid-1960s, beginning with Motorola and Burroughs’ Mexican affiliates locating plants near middleclass residential neighbourhoods at the edge of the city, was followed in the 1970s and 1980s by Kodak, IBM, Hewlett Packard, Wang and Tandem, all of which opened plants further out in periurban locations to take advantage of easy road access to the airport, ports and major highways. By 1993, as Mexico joined NAFTA, liberalizing trade and deregulating ISI requirements on TNCs,17 IBM and Hewlett Packard began outsourcing their manufacturing functions and spearheading the creation of an industrial cluster of domestic suppliers and contractors.18 More than 40 firms made up this cluster, which, during its heyday at the end of the 1990s, reached 320 (Audirac, 2003). It generated close to 100,000 jobs and more than two and a half billion dollars in exports (Dussel, 1999). During this period, a series of new industrial parks housing domestic and foreign electronics firms populated Guadalajara’s exurban periphery along the metropolitan ring road (Audirac, 2003).19 However, the global electronics industry was meanwhile being reconfigured. All leading US-based TNCs were pulling out of manufacturing and outsourcing it to a handful of giant global contract manufacturers (CMs)20 (Gereffi et al., 2005). Thus, by the end of the 1990s, practically all Mexican CMs and suppliers of Guadalajara’s TNCs had been displaced by global CMs like US-based Solectron and Flextronics, Jabil Circuits and others. The accession of China to the WTO in 2001, with 15 The new federal law (#10257/2001) known as Statute of the City promotes land reform in urban areas in order to change the elitist nature of previous policies and programs in Brazil. The law incorporates constitutional provisions that have legitimized a broad array of new grassroots claims for social welfare policies and reinforced the principle of a ‘social right to the city’. 16 A municipio is similar to a county. 17 Liberalization removed restrictions on TNCs over domestic market access and foreign ownership of domestic firms, as well as the requirement under ISI for FDI that a percentage of TNC content in production be of domestic origin. 18 Mexican contract manufacturers of printed circuit boards (Encitel and Mextel), computers and peripherals (Unisys), hard drives (Compuworld) and suppliers of cables and harnesses (Electronica Pantera). 19 In the municipios of Zapopan, Tlaquepaque and Tlajomulco. 20 US-based global contract manufacturers control a significant share of the world’s electronics manufacturing capacity by selling manufacturing services to lead TNCs like IBM, Hewlett Packard and Nortel. International Journal of Urban and Regional Research 36.2 © 2012 Urban Research Publications Limited 238 Ivonne Audirac et al. its four-times-cheaper hourly wages and the size of its market, beckoned several of Guadalajara’s US-based CMs. From 2002 to 2004, Guadalajara’s electronics industry contracted by more than 50% (Palacios, 2006) reverting to assembly and subassembly production. With little hope of recovering its former ‘Silicon Valley’ lustre, Guadalajara’s electronics industry is a vivid case of domestic industrial bust strongly influenced by the US dot.com financial debacle in the early 2000s and by the restructuring of global production networks. As China’s world-wide manufacturing dominance grew, locating global CMs21 in Guadalajara was intended to take advantage of Asian industrial upgrading and world-wide economies of scale in ICT manufacturing. However, rather than helping the existing Silicon Valley grow, this neoliberal bid for a place in the global ICT industry confined Guadalajara’s electronic manufacturing suburbs to a struggling low-wage assembly enclave (Gallagher and Zarsky, 2007). Industrial shrinkage and swollen growth Guadalajara’s urban core and inner suburbs have lost population while the periphery has grown rapidly since the 1980s. However, during the 1990s, the growth of the suburban municipios (Zapopan and Tlaquepaque) that host the bulk of the suburban and periurban electronics industry slowed down, with the exception of the more exurban municipio of El Salto — an ISI-period industrial corridor where decades later IBM, NEC and Hitachi located their plants. This municipio is one of the poorest in the metropolitan region with a paucity of public services, infrastructure and schools and obsolete and dilapidated industrial facilities. During the 1990s it received the highest influx of low-income population in search of cheap housing and low-skilled jobs; yet in 2007, Hitachi, the latest electronics TNC to leave Guadalajara for Asia, laid off 4,500 El Salto workers, increasing the swollen unemployment numbers of this industrial sector (Rodríguez–Bautista and Cota Yáñez, 2006). Whereas laid-off workers in industrialized countries may find a temporary — yet diminishing — welfare safety net during unemployment, their Latin American counterparts have no other alternative than to temporarily or permanently seek refuge in informal sector jobs.22 Despite the slowdown in population growth in the oldest Guadalajara municipios, federal housing programs, which in the 1990s restructured to provide mortgages to qualified workers leaving homebuilding and development to the private sector, contributed to the production of low-income housing in the periphery of these suburbs. Informal settlements — a major path to homeownership — are typically found interspersed among tracts of elite residential development and affluent gated communities as well as large swathes of working class, low-income housing. The expansion of this ‘social-interest’ housing sector corresponded with the boom of Guadalajara’s electronics industry. However, in spite of an increase in homeownership during this period, as in the case of São Paulo’s suburbs, the resulting suburban landscape is highly fragmented, segregated according to income and social characteristics, poorly served by public infrastructure and lacking in amenities (Harner et al., 2009). Despite the strong pronouncements and lofty sustainable development goals found in state and local planning documents, these remain wish lists of public administrations whose policies are fundamentally oriented to attracting FDI. Hence, urban and regional planning activity at the state and the municipio levels is characteristically focused on managing the land use and infrastructure systems that help, on the one hand, secure local and international investment and, on the other, promote the city and the region internationally as a unique place. After Guadalajara’s Silicon Valley declined, the City 21 Contract manufacturers’ profit margins rely on low-labour-cost production sites, a flexible labour policy, short-term employment contracts, a high degree of standardization in process technologies, and a low-wage feminized labour force (Gereffi et al., 2005). 22 In Guadalajara, more than 50% of the workforce depends on the informal economy (Cota Yáñez and Guerrero Aviléz, 2006). International Journal of Urban and Regional Research 36.2 © 2012 Urban Research Publications Limited Declining suburbs in Europe and Latin America 239 and State began promoting a new and more diversified industrial cluster intended to attract ICT, biotechnology, medical equipment and aerospace international companies. It has also embarked on intense global city marketing initiatives like the failed attempt at housing a new Guggenheim Museum and the successful bid for the 2011 Pan American Games. Yet, all the while, local governments in the Guadalajara metro area, have been ineffective in managing the growing number of informal settlements, many in extreme poverty, that have proliferated since the 1980s along the metropolitan periphery (Mungía-Huato, 2006; Venegas-Herrera and Castañeda-Huizar, 2006). Conclusion Drawing on Scott’s (1995) and Soja’s (2000) three modes of industrial urbanism, this article uses the term ‘shrinking cities’ to denote the urban ravages associated with the demise of the Fordist mode of urbanism in the evolving post-Fordist metropolis. The European and Latin American industrial suburbs and peripheries examined here provide a glimpse of the global — North and South — scope of the current post-Fordist mode of industrial urbanism and an overview of the differences and similarities of its glocal restructuring manifestations. Industrialized countries like the UK and France have had to cope with the negative effects of the growth of new industrial spaces — the hallmark of restructuring economic space under post-Fordist urbanism. They have shed manufacturing from Fordist industrial suburbs to NICs in the global South. Meanwhile, NICs like Brazil and Mexico have abandoned their Fordist-ISI industrial sites in favour of the urban peripheries and hinterlands receiving off-shored or outsourced manufacturing. Working-class suburbs on both sides of the Atlantic, from the Parisian ‘red’ suburbs to São Paulo’s ABC region, despite originating in different time periods, were built under Fordist modern ideals of mass production and consumption supported by some form of corporatist economic alliance between workers, capital and government. However, with the rise of post-Fordist urbanism a radical reorganization of the modern Fordist city–suburb dichotomy has taken place. Today the four suburban cases in this article show that, from the earliest Parisian steel and textile suburb of Saint Denis and Glasgow’s shipyard burgh of Govan, to São Paulo’s São Caetano automobile industrial suburb and El Salto, Guadalajara’s first industrial suburban corridor, one can see many similarities: varying levels of shrinkage and growth spurred by competition for foreign investment; resultant gentrification and displacement from the pressure to redevelop the most profitable sites; unemployment from deindustrialization with a dwindling public welfare safety net; declining support for public housing and provision of affordable housing; and relatively large populations of poor immigrants attracted by cheap or dilapidated housing. In the Latin American case, accretion of informal and squatter settlements often accompanies the urbanization of industrial suburbs. These blatant differences between affluent and growing and pauperized and shrinking neighbourhoods, constitute new ‘metropolarities’ (Soja, 2000) of the post-Fordist metropolis in the US and Western Europe. However, in Latin America, given entrenched social and economic inequality, their incidence is ubiquitous and exacerbated by postFordist industrial restructuring. Lastly, both Govan’s shipyard decline and the recent boom and bust of Guadalajara’s Silicon Valley in the second phase of globalization marked by China’s role in global manufacturing points to the vulnerability of postFordist industrial urbanism to new restructuring crises. In this new spatial, social and economic configuration, the future of the older industrial suburbs is as yet uncertain. Some may draw advantage from their proximity to urban centres that have remained dynamic or that are being revitalized, or from connections with new development ‘poles’. Others may find themselves caught up in a downward spiral of falling investments and decline. Thus, the territories of the former industrial and working-class towns are gradually breaking up into quarters that are caught up in a process of growing pauperization, and quarters that are gaining value and gentrifying fast because of the economic and real-estate market pressures deriving from International Journal of Urban and Regional Research 36.2 © 2012 Urban Research Publications Limited 240 Ivonne Audirac et al. their proximity to the city centres. Urban policies have a critical impact on the evolution of inner suburban rings: in the context of globalization, these territories are probably more sensitive to change and local policies may accentuate or mitigate the effects of real estate and private investment’s pressure. In Brazil, the economic decline of the 1980s and 1990s, the rise of globalization, the retreat of social policies, and an elitist and incomplete welfare state contributed to more recent increases in income inequality. Brazil’s territorial patterns have replicated this dynamic of socioeconomic inequality. The long-term process of deindustrialization and the strong speculative high-end land market combined with a lack of housing policies for low-income populations contributed to urban shrinkage. As a result of these trends, city cores have been losing population and becoming more gentrified and expensive, while blue-collar residents have migrated to the outskirts of the city, illegally occupying fragile environmental areas. Public–private partnerships’ efforts to revitalize declining areas — as in the case of Santo André and São Caetano — have set in motion patterns of development that will continue to gentrify large urban areas by promoting the construction of gated residential communities and ‘big box’ development. Although the lack of a long-term strategic Mexican industrial policy is often blamed for the failure to anticipate global trends, the boom and bust of Guadalajara’s electronics industry suggest support for the contention about globalization’s immiserating growth (Kaplinsky, 2008). The kind of post-Fordist industrialization fomented by regional trade agreements (e.g. NAFTA) has resulted in premature deindustrialization and shrinkage of domestic productive capacity (Csaba, 2001; Dasgupta and Singh, 2006; Sader, 2008) in industrial sectors unable to compete with Chinese industrial might and global scale. Post-Fordist urbanization in Europe has been associated with the weakening of the welfare state and fiscal devolution to cities, and with decline of central cities and first tier suburbs, coupled with the growth of footloose industries, edge cities and restive metropolitan expansion. Latin America’s urban evolution parallels a similar pattern, although, as discussed, a pattern driven by a dissimilar yet related set of factors. One of these is Mexico’s institutional weakness vis-à-vis deepened reliance on TNCs and FDI in export-led development. Another factor is the change of the global system of production in which nation states, such as those in Asia, have strategically leveraged their industries to take advantage of global value-chain restructuring (Mesquita Moreira, 2007), while TNCs have taken advantage of their freedom to relocate activities regionally and internationally. Jessop and Sum (2000) contrast this glocalization process with strategic ‘glurbanization’, a process whereby cities enhance their place-based competitive advantage in the world economy to procure and retain FDI. In Europe as well as in Latin America, the interplay of these two processes is occurring territorially at the metropolitan fringe with high-end, elite development and new technopole schemes. However, as the four suburban cases suggest, the post-Fordist metropolis is being shaped by the industrial and commercial global shift from the North Atlantic to the Pacific Rim. The pervasive neoliberal reorganization of industrial activity across the world subsumed under the notion of economic globalization (Harvey, 2005) continues to make redundant both industrial space and large sectors of the labour force whose skills and numbers are mismatched with the new suburban service economies of the North and with the streamlining and reconfiguring industrial economies of the South. This reorganization is as much economic as sociospatial and in its wake, as the case studies in this article suggest, old European industrial suburbs, which have undergone three eras of industrial transformation, and newer Latin American industrial suburbs, which are transitioning to new forms of global industrial subcontracting, are splintering into metropolarities: glocal premium-network spaces (Graham and Marvin 2001) and zones of private consumption, exclusivity and wealth, juxtaposed to shrinking areas permanently or temporarily disconnected from infrastructure or other flows of capital. These shrinking areas gather the urban poor and the redundant production space and workers — the global labour force — who bear the brunt of the degenerative processes stemming from the latest realignments in the global organization of industrial production. 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Elle est aussi intimement liée à la restructuration globale de l’organisation industrielle associée à la montée du mode post-fordiste de développement urbain et, plus récemment, à la poussée de l’industrialisation en Asie. Fondé sur les approches de l’urbanisme industriel, cet article examine la première couronne de banlieues industrielles qui s’est développée autour des grandes villes dans la phase la plus rapide de l’urbanisation fordiste. Ces banlieues industrielles, bien que formées à différentes périodes, connaissent aujourd’hui des mutations spécifiques et des restructurations profondes liées à leur position particulière: entre les villes centres et les périphéries en expansion de la métropole post-fordiste. Cet article décrit et compare la décroissance des banlieues dans deux villes européennes (Glasgow et Paris) et deux villes latino-américaines (São Paulo au Brésil et Guadalajara au Mexique), comme différents exemples de territoires intégrés de manière asymétrique et fragmentée dans la géographie de la globalisation. International Journal of Urban and Regional Research 36.2 © 2012 Urban Research Publications Limited