Exam Question 2:
Critically analyse the key aspects and features of the ‘neoliberal city’.
An ideology derived from rejections to egalitarian liberalism, and a selective return to
classical liberalism on individual autonomy, neoliberalism can be known as a “polycentric
and multiscale geopolitical and geo-economical project”, in which placates the needs and
wants of individuals through an unregulated, non-interventionist market-orchestrated system
(Brenner and Theodore, 2002). In response to the contingencies and systematic crisis-
tendencies associated with its Fordist-Keynesian predecessor, politico-economic reform was
needed to reflect a growing ‘glocalised’ utopia and increasing decentralised governance. A
neoliberal city can be said to reflect focal spatial arenas of which can be challenged as the
‘urbanisation of neoliberalism proceeds’ (Brenner and Theodore, 2005). This can be shown to
illustrate the hybrid-mutant nature of neoliberal cities, and their ability to adapt to changing
political rhetoric. As such, this essay will explore the contingent link between uneven spatial
development and speculative investment - a central feature in the building blocks of the
megalopolis landscape in Glasgow, Palma, and Machala.
In the transition from a state of government to governance and in adopting ‘actually existing
neoliberalism’, an evolving consensus stood; urban bureaucracies needed to become
progressively ‘commercial, pioneering and innovative’ (Harvey, 1989). To reach a state of
optimal performance, neoliberalism requires complete liberty; unrestricted by regulatory
framework, revisiting a ‘laissez-faire’ agenda. This will allow a “utopia of unlimited
exploitation” (Bourdieu, 1998), where it can act upon socio-spatial dynamics, and the
interactions of intraregional, local-urban competition algorithm. Following on from Harvey,
it is clear that the power and control neoliberalism could possess was severely
underestimated, infesting global institutions such as the ‘General Agreement on Tariffs and
Trade (GATT), World Trade Organisation (WTO), the World Bank and the International
Monetary Fund. The presence of neoliberalism has brought structural adjustment and
pressurised, fiscal austerity programs to third-world countries. This reflects the speculative
nature of neoliberalism, and its ability to engrain institutional frameworks who embody and
represent billions of individuals.
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(a) Glasgow:
Known to be a ‘model laboratory’ in the procedure of both urban regeneration and
deindustrialisation, Glasgow is an example of ‘actually existing neoliberalism’, where
historically, under a Keynesian, Labour-led political establishment, the primary, economic
tax base left the city in the creation of new towns, having the opposite effect in dismantling
the dystopian nightmare plaguing inner-city regions. To alleviate stagnant economic
conditions, it was clear the city would need to adopt a “post-industrial service economy”
(Boyle, McWilliams and Rice, 2008), facilitating neoliberal forces. In 1990, the city council
pronounced Glasgow to be worth around £2.5 billion, separating it from its not too recent
past. However, the distribution of this development was unclear. After further investigation, it
was shown a ‘dual city’ was being created, as key concerns began to arise surrounding social
polarisation; a common consequence of the ‘trickle-down’ philosophy. This is a central facet
of speculative investment, confirming its undeniable precarious nature of which assumes
investment or benefits for corporations and the wealthy in one area will congregate within
others. This assumption is challenged within recent Scottish governments statistics,
illustrating that Glasgow City has deprivation levels of 44% (Gov. Scot, 2020). The majority
of investment was procured primarily within the city centre, which became increasingly
diluted the further out from the CBD. This highlights the ephemeral nature of neoliberalism,
bringing what Harvey describes as more, ‘chaos and destruction than the benefits it seeks to
achieve or create’ (Harvey, 2005). It is often argued that the state government is responsible
for this - largely because they unequivocally provide the conditions for neoliberalism to
spread. However, it can also be pointed to local governments, particularly the Labour Party in
the 1990s, where they were scrutinised for their contribution in marketing the city against
working-class wishes to satisfy private interests and investment. This reflects an apparent
juxtaposition: despite neoliberalism demanding ‘free-market’ capitalism conditions and an
unregulated state of governance, it requires the support of bureaucracies across intranational
arenas to survive and accumulate (Moody, 1997).
(b) Palma:
Furthermore, in the Balearic Islands, the city of Palma is regarded as ‘one of the world’s
leading tourist destinations’, a product of neoliberal policy framework. This can be shown
through the exponential increase of housing stock parallel to phases of significant tourism