GOVERNING IN AND AGAINST AUSTERITY: INTERNATIONAL LESSONS FROM EIGHT CITIES - Professor Jonathan S. Davies Director - Centre for Urban Research on ...
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GOVERNING IN AND AGAINST
AUSTERITY: INTERNATIONAL
LESSONS FROM EIGHT CITIES
Professor Jonathan S. Davies
Director - Centre for Urban Research on Austerity
De Montfort University, Leicester, UK
CONTENTS GOVERNING IN AND AGAINST
AUSTERITY: INTERNATIONAL
LESSONS FROM EIGHT CITIES
Governing in and against austerity: International lessons from eight cities 1
The Project Team 4 For decades, cities across the world have been is true of Dublin, where a centralising austerity
grappling with budget squeezes, public service government faces newly vibrant anti-austerity
Athens: The Centre of European Austerity 6 cuts and waves of institutional restructuring. For movements. Greece mounted a national
many, the 2008 financial crisis marked a new popular struggle against austerity centred on
Baltimore: An Iniquitous “Twin Track” City 10 and intensified phase, for which former British Athens, only for the anti-austerity government
Prime Minister David Cameron coined the term to capitulate in 2015, when confronted with the
The Return of the Left: Barcelona and the New Municipalism 14 “age of austerity”. The research discussed in this prospect of leaving the Euro. After decades of
report explores the myriad ways that the age of racially inflected austerity, and the 2015 revolt
Dublin: A Centralising but Contested Austerity Regime 18 austerity is experienced, interpreted, governed against police violence, Baltimore now has to
and contested in cities, framed by longer-term contend with Donald Trump’s overt hostility to
Leicester: A Case of “Austerity Realism” 23 crises of industrialism and the post-war welfare “sanctuary” cities. Yet Spain has witnessed a
state. We conducted our study in eight very renaissance in urban politics, with anti-austerity
Greater Dandenong, Melbourne: Restructuring and Revitalising a Diverse City 28 different cities: Athens, Baltimore, Barcelona, platforms governing four of its five largest cities,
Dublin, Leicester, Greater Dandenong including our case study of Barcelona. Here,
Montréal: A City in search of solidarity against Liberal “Rigour” 33 (Melbourne), Montréal and Nantes. In each city, the talk is of a “new municipalism”, linked to
we spoke to a wide range of people including the radicalisation of participatory democracy.
Nantes: The Promise of Co-governance? 36 elected politicians, public officials, business Nantes too seeks to radicalise participatory
leaders, voluntary and community organisations, governance, but in the very different context
services users, anti-austerity activists and trade of an energetically entrepreneurial governing
unionists. In this report, we discuss key findings strategy. With its own politics fragmented,
from each city. Montréal has to navigate a multi-tier system in
which the Federal government now professes
For some of our cities, a great deal has changed to have rejected austerity, while the province of
since we began – indeed our research has Quebec remains committed to it. Australia’s one
tracked important changes over time. Following attempt to pass a full-blooded austerity budget
the Brexit referendum in June 2016, the UK under former PM Tony Abbott came to nothing,
abandoned its paramount “age of austerity” goal but our case study city of Greater Dandenong
of rapid deficit elimination (currently rescheduled nevertheless operates in a fiscally conservative
for 2025). Yet, for British cities budget cuts and environment, with a variety of crises seen to
restructuring continue unabated. Although a be looming on the horizon as revenues fall and
badly weakened May government is wavering, demands on budgets increase.
the reality is that austerity goes on. The same
1
Diverse as they are, the case studies focus Key messages 6. A
usterity cuts are damaging to grant- 12. Crucially, there can be political alternatives
on a common problem: who defines, governs dependent local voluntary and community to austerity, even in cities severely affected
and resists austerity, its variants and cross- 1. T
he 2008 crisis hit cities very unevenly, groups. This finding reveals an austerity by spending cuts and fiscal centralisation.
currents? How do they do it, through what kinds even those at the European epicentre. Not paradox. Governments demand greater
of alliances between governmental and non- all recognise the language of “austerity” levels of citizen activism, while making it 13. Resistance to austerity is very uneven. Given
governmental actors? Are collaborative forms as applicable. harder to achieve. a felicitous alliance between electoral and
of governance between government, citizens grass-roots anti-austerity forces, a “new
and civil society viable in conditions of austerity, 2. A
s might be expected, austerity cuts, welfare 7. A
t the same time, austerity concentrates municipalism” is possible. However, the
or is this something only for “good times”? reforms and housing foreclosures hit the government resources in large third sector attempt to challenge austerity at the city
What potential do we see, despite austerity, worst-off hardest of all. In some cases, organisations, with little connection to level encounters hostility from national and
for just and emancipated cities? The following austerity hits the middle classes too. locality. The capacity of these larger regional governments, as well as corporate
vignettes capture some of the answers emerging organisations to campaign and influence and media forces.
in response to these questions. How cities 3. W
hat happens in cities matters. Cities policy is itself reduced.
respond will be crucial in shaping the future for affected by crisis and austerity respond in 14. Linking opposition movements and building
all of us. varied ways. Urban histories, economies, 8. A
usterity governance therefore tends to alliances between cities, social movements,
traditions, struggles, conflicts and be either hierarchical and state-centred, workplace and community organisations
Our purpose in this report is to capture the geographies make a big difference to or rooted in “elite” partnerships involving capable of challenging higher tiers of
urban experience internationally, in order to austerity politics. governments, business leaders and NGOs. government will therefore be crucial, if
provoke dialogue and exchange through which anti-austerity forces are to succeed.
local people can learn from what is happening 4. F
orms of collaborative governance vary 9. B
randing and place marketing is central
in different places. These are the challenges, widely on a continuum from those concerned to urban growth strategies for coping with We are exceptionally grateful to the British
opportunities and threats – for good or ill – with radicalising participatory democracy to and moving beyond austerity. Some cities Economic and Social Research Council
revealed through juxtaposition and comparison. those preoccupied mainly with managing selectively integrate cultural and ethnic (ESRC) for funding our study (award number
To this end, the report supports a series of austerity and maintaining state control. diversity into their branding. ES/L012898/1). Finally, we are indebted to
workshops in our eight cities over the next few more than 300 people, who gave up time to
months, designed to facilitate exchange and 5. F
or several locally distinctive reasons 10. However, growth alone cannot compensate participate in the study. Research is wholly
learning. We will report the outcomes from including political centralisation, social for austerity. There is an ever-present tension dependent on volunteers. We are immensely
these exchanges on the CURA website at alienation/public disaffection, institutional between the realities of urban development grateful to all of them.
http://cura.our.dmu.ac.uk, and on our twitter instability and organised resistance, austerity and the idea of a socially just, inclusive city.
feed @cura2015. We hope participants find weakens the prospect for building strong,
the report and key messages useful, especially inclusive and equitable social partnerships 11. Cities cannot avoid fallout from international
as a way of encouraging international dialogue between governments and citizens. crises and national austerity measures, but
and learning. some do adopt strategies that diverge from
those of regional and national governments.
2 3
Professor Brendan Gleeson Dr Madeleine Pill
University of Melbourne University of Sydney
Case study: Greater Dandenong Case study: Baltimore
E: brendan.gleeson@unimelb.edu.au E: madeleine.pill@sydney.edu.au
Twitter: @pillmad
Professor Steven Griggs Yuni Salazar
THE PROJECT TEAM De Montfort University Autonomous University of Barcelona
Case Study: Nantes Case Study: Barcelona
The project team comprises an international consortium of investigators and research assistants, E: sgriggs@dmu.ac.uk E: yunailis.salazar@uab.cat
representing eight countries and ten institutions. Twitter: @cura2015 Twitter: @ysalazar_m
Professor Jonathan Davies Dr Ioannis Chorianopoulos,
(Principal Investigator) University of the Aegean Professor Pierre Hamel Nisha Solanki
De Montfort University Case study: Athens University of Montréal De Montfort University
(Lead Institution) E: I.Chorianopoulos@geo.aegean.gr Case study: Montréal Project Administrator
Case study: Leicester E: Pierre.hamel@umontreal.ca E: nisha.solanki@dmu.ac.uk
E: jsdavies@dmu.ac.uk Twitter: @pierrehamel3
Twitter: @profjsdavies, @cura2015
Grégoire Autin Dr Mercè Cortina-Oriol Hayley Henderson Professor Helen Sullivan
University of Montréal De Montfort University University of Melbourne Australian National University
Case Study: Montréal Case Study: Leicester Case study: Greater Dandenong Case Study: Greater Dandenong
E: gregoire.autin@umontreal.ca E: merce.cortina-oriol@dmu.ac.uk E: hayley.henderson@unimelb.edu.au E: helen.sullivan@anu.edu.au
Twitter: @MerceCortina, @CURA2015 Twitter: @HelenCSullivan
Dr Ismael Blanco, Autonomous Dr Andrés Feandeiro Professor David Howarth Dr Naya Tselepi
University of Barcelona De Montfort University University of Essex University of the Aegean
Case Study: Barcelona Case study: Nantes Case Study: Nantes Case study: Athens
E:ismael.blanco.fillola@googlemail.com E: andres.feandeiro@dmu.ac.uk E: davidh@essex.ac.uk E: naya.tselepi@gmail.com
Twitter: @lblancof
Dr Adrian Bua Dr Niamh Gaynor Professor Roger Keil
De Montfort University Dublin City University York University, Toronto
Case study: Leicester Case study: Dublin Case Study: Montréal
E: Adrian.Bua@dmu.ac.uk E: niamh.gaynor@dcu.ie E: rkeil@yorku.ca
Twitter: @adrianbua, @CURA2015 Twitter: @rkeil
4 5
ATHENS:
THE CENTRE OF EUROPEAN AUSTERITY
The City of Athens is one of 66 municipalities Budget cuts severely undermine Historically, the governance of Athens has The new austerity governance in Athens is best
in the Attica region of Greece, with a central municipal governing capacities been very state-centred, and partnership understood as a form of “elite pluralism”.
population of approximately 660,000 and governance weak. As we explain below, this
metropolitan population of some 3.9 million. In the aftermath of the 2008 events, and to approach has changed significantly under Collaborating with NGOs in this way is seen as
The City Council is controlled by a pro-austerity avoid a solvency crisis, the government agreed a austerity, as the city opened up to the influence a pragmatic way to ameliorate social deprivation.
centre-left coalition, with the city mayor also series of loans with the European Commission, of corporate and elite third sector organisations. According to local politicians, the City Council
backed in the elections by the conservatives. the European Central Bank and the IMF. The is now the institution of last resort, obliged
The Mayor is the key figure in the Council, austerity-centered fiscal adjustment logic that to respond only when everything else fails. A
setting municipal policies with a relatively followed the loans, triggered a seven year councillor commented, “they moan because
free hand. long and ongoing recession, during which the Under Austerity, Athens is governed we work with NGOs. Ok, find us another
economy lost a cumulative 27 per cent of its through a new form of Elite Pluralism way. It’s not the memorandum or austerity;
Among all European cities, it is in Athens that GDP. Athens was disproportionately affected it’s necessity that drives us. […] We made a
austerity bites hardest. The global financial crisis by the crisis, and it has been disproportionately Under austerity, Athens has sought to choice! The municipality of Athens is taking
of 2008, and economic depression that followed affected by years of austerity too. Between develop new partnerships, particularly in care of 20.000 people. You can’t just ignore
had a devastating impact on Athens, leading to 2010-2017, the municipal budget has been urban regeneration, economic development that, or let it go by. […] If someone says I
population decline. The numbers of homeless slashed by over 20 per cent due to cuts in and social policy. These processes feature won’t do it because that’s not the right way
in the Athens metropolitan area rose to an national government grants and a significant transnational organisations, major corporations forward, well he/she is taking a risk, we don’t”.
estimated at 9.100, while the Region of Attica fall in tax revenues. As a public official put it, and NGOs as key partners, reflecting the rising
recorded the largest fall in household disposable “we had 12.000 employees and now we have prominence of “philanthrocapitalism” in the This context of elite pluralism, combined with
incomes anywhere in the EU. Municipal 7.000. […] What do you do in such a case? city. For example, the ‘Solidarity Hub’, the most EU and nationally mandated austerity, means
indicators show that a total of 26.1% of the Do you shut the municipality down? You have prominent municipal social policy scheme, is that the capacity of the municipality to develop
population subsist at income levels below the to react, for sure, but within a framework”. a venture with an NGO called Solidarity Now, a policy framework reflecting local interests
poverty threshold and a further 8.1% experience established in 2013 by George Soros’s Open is severely constrained. It is conditional on
severe material deprivation. In response, the municipality of Athens began to Society Foundations (OSF). Similarly, Samsung the extent to which local goals coincide
re-organize municipal administrative structures funds ‘Innovathens’, a municipal economic
The city centre is the fulcrum of the crisis. The and services in an attempt to cut costs. The development initiative in the tech sector. This
majority of street work with the homeless in the application of strict cost and revenue controls mode of governance has even influenced the
region is taking place in the centre, with the is visible in the City’s debt elimination scheme, way the City plans for its future. Athens bid
most powerful anti-austerity protests occurring expected to settle almost all municipal liabilities successfully for participation in the 100 Resilient
in the same places. This juxtaposition makes by 2019 via steadily increasing budget Cities (100RC) global network - sponsored
the city centre the focal point of both the human surpluses and new sources of income. As by Rockefeller Philanthropy Advisors - in an
crisis of austerity and the multiple forms of municipal fiscal responses go over and above attempt to gain access to experts and resources
resistance to it. bailout conditions for balanced budgets and to address the crisis. Thus, the “collaborative
limited debt exposure, austerity in the case of turn” in Athens occurs mainly among a limited
Athens is, to some extent, a political choice. range of “elite” corporate and NGO partners.
6 7
with the priorities of state funding bodies “During the last three years [2013-2016], small-scale schemes, run by a few people The 2015 national referendum made an already
and philanthropies – a common feature of grassroots initiatives in Athens more with all their energies focused on managing difficult relationship worse. Voters were asked
collaboration elsewhere in Europe and the USA. than doubled …. These are groups that the human crisis. Such traits impede the on whether to approve of the austerity-laden
In Athens, the rise of elite networks involving operate informally on principle, and only renewal of confrontational and transformative bailout conditions jointly proposed by the
city and NGOs has been neither progressive a few turn into NGOs. They don’t want to politics through this network. As one volunteer country’s creditors. The Mayor’s leading role in
nor democratic. This mode of governing have any dealings with the state or with put it, “…when the ‘what can we do’ issue the national campaign to accept EU demands
is forcefully rejected at the grass roots. handling funds. They just want to offer a comes up, the answer is ‘small things, small broke any remaining links. According to a
way out to the crisis” (VSO respondent). acts’, and the reason is a very pragmatic community activist, “the referendum wasn’t
one. We don’t have the time and the energy about the Euro or Grexit. It was about austerity.
The sheer diversity of goals and practices that for anything more; we try so hard on a You can’t stand out as the main proponent of
Athens has witnessed an characterize Athenian grassroots initiatives daily basis to simply make ends meet”. the ‘yes’ vote, as the mayor did, knowing that
explosion of Informal Grass Roots - from social medical centres and alternative what we stand for is negated by the ‘yes’ vote”.
Organisations against Austerity currencies to social cooperative enterprises
and community kitchens - makes classification In summary, seven years of austerity have
Athens’ compliance with austerity has spawned a futile exercise. Still, we find common traits, Anti-austerity networks reject demolished bridges between the local state
new forms of resistance. The city was the notably informality and antipathy to formal collaboration with the state and NGOs and citizen activists. In this situation, there can
focal point of mass anti-austerity struggles in structures and institutions associated with be no meaningful social partnership to govern
Europe for several years after 2010, centered austerity. Even groups that acquired a legal form Informality is one common trait among these austerity. Austerity has rather spawned new
on the organizing power of the trade unions to participate in fundraising bids operate along anti-austerity networks; rejecting communication elite networks, into which activists cannot be
and the political dynamism of Syriza, then an self-organised and voluntary lines. Informality and cooperation with the authorities is a absorbed. In Athens, civil society is increasingly
upcoming opposition party of the radical left. made sustainable by social media and the second. Unlike traditional struggles, for bifurcated: on one hand global NGOs in
However, this antagonistic movement has presence of dedicated web platforms, such as example those connected to formal politics partnership with the city and state, on the
lost much – though not all - of its momentum. “volunteer4Greece” and “solidarity4all”, which through the Communist Party, these activist other grass-roots organisations refusing to
Trade unions were deeply affected by communicate grassroots activities and needs networks studiously avoid agents, practices cooperate – but with little organizing capability.
austerity as high unemployment reduced their to an increasingly receptive public. Moreover, and institutions associated with austerity, even So far, unlike Barcelona, however, these
membership and undermined their organizing ‘volunteerism’ complements ‘informality’ as a the less radical elements. As a respondent grassroots forces have not crystallized into a
capacity. As commented by a trade unionist, key trait of grassroots’ mobilization, shaping from the network observed, “there’s this city-level or national movement, or made links
“during the last years we organized more a rebellious political stance that feeds on growing realization that we’re on our own, with more traditional – though increasingly
than 40 general strikes and … I personally ever-growing marginalization from formal under no protective umbrella of any formal episodic - forms of organised struggle.
think that because of the crisis, unionism structures and institutions. According to authority or institution. Not only that, but that
suffered a strategic defeat; we couldn’t offer a local activist, “volunteerism is a form of we’re actually against them. Hence the shift
an alternative to austerity, a way out”. resistance. It’s a statement, exposing the towards self-organisation. […] The election
absence of the authorities from where they of SYRIZA and the great disappointment
Disillusionment prevailed when Syriza took are needed; it’s a way to show and deal that followed it, shattered any remaining
office and the new government adopted with the problems the city is facing”. illusions that there’s a chance for a way out via
austerity in July 2015. Since then, new solidarity formal politics and institutions”. Not a single
networks have asserted themselves in the However, it is important to note that this grassroots’ group or network is participating
social and political landscape. More than 2.500 dynamic associational realm has not developed in any municipal collaborative arrangement,
grassroots schemes have emerged in Greek the kind of synergies necessary to mount a despite attempts by the City to reach out to the
cities, signifying the rise of a diffuse network counter-offensive against austerity. Athenian informal associational realm (see synAthina).
that has a prominent presence in Athens. social solidarity networks are predominantly
8 9pathways for the majority of residents to The primary goal is to de-concentrate
really access any opportunity, whether it be poverty through attracting and retaining the
schools or health or decent housing - and middle class to live in the city (gentrification)
obviously, they’re all interconnected”. combined with relocation (dispersal) and social
mobility initiatives for the poor (economic
inclusion). Investment decisions are based on
The ‘Triage’ Investment System: Investors a “triage” system, prioritising neighbourhoods
prioritise some neighbourhoods, deemed to have some existing potential for
BALTIMORE: while abandoning others development, while de-prioritising the most
distressed and the most prosperous areas.
AN INIQUITOUS “TWIN TRACK” CITY The City’s approach to decades of fiscal The most deprived neighbourhoods not
squeeze has been to try and increase revenues perceived to be economically viable, usually
and reduce public spending, as well as with majority African American populations, are
Baltimore’s population of 615,000 has declined As one interviewee explained, “inequality seeking to partner with local ‘ed and med’ ‘written off’ and ‘contained’, thus intensifying
by more than a third from its 1950 peak in Baltimore is so much grosser than it is institutions and philanthropies to integrate class and racial polarisation. In this context,
of 950,000. Household median income is in the nation as a whole… and it’s cut on development and spending priorities. This participatory mechanisms for grassroots
$41,000, compared to $74,000 for Maryland. racial lines, which makes it all the more approach has led to a highly selective focus organisations and citizens, such as negotiating
As of 2015, nearly a quarter of the city’s obvious and all the more oppressive’. on economic development, centred on the terms of relocation or community benefits
residents fall below the federal poverty level. the growth needs of ‘anchor’ institutions – agreements, have been scarce and tokenistic.
Those in receipt of Supplemental Nutrition major local employers, like Johns Hopkins More recently, economic inclusion strategies
Assistance Program (‘food stamp’) benefits University, that are strongly rooted in the city. seeking to harness local benefits from meeting
doubled from 11,000 in 2006 to nearly 22,000 Baltimore has been in the grip anchors’ employment and procurement
in 2013. At the beginning of 2008, Baltimore’s of “Austerity” for Decades needs are being rolled out across the city.
unemployment rate was 5.6%, rising to a post-
crisis peak of 11.4% at the start of 2011, which As the preceding employment indicators show,
by January 2017 had fallen back to 6.5%. The Baltimore was hit hard by the 2008 crisis.
city is economically and socially isolated from However, the fiscal squeeze started long before
its wealthier neighbouring counties in the Metro the latest crisis, and has continued unabated.
Baltimore region, population 2.7m. The region As one respondent commented, Baltimore “is
is on the upswing economically, but stability used to austerity and functions like that all the
and prosperity are distributed highly unequally time” The enduring ‘fiscal squeeze’, resulting
across spatial, racial and community lines. from a shrinking tax base, declining state and
federal grants, and increasing service needs
The city’s racial composition is 64% African is interpreted simply as a “harsh reality”. One
American, 32% White and 6% Hispanic/ Latin/ respondent captured the nature of Baltimore’s
Asian. Baltimore is a longstanding Democratic structural crisis in the following terms:
Party stronghold. Since election of its first
African American Mayor (Kurt Schmoke, in office “We don’t have an economy to support our
1987-99) all Mayors except Martin O’Malley citizens. We have a tremendous amount of
have been black women. Since the presidential racism institutionally in how we’ve been planned
election of November 2016, both the outgoing as a city, how our institutions function as a city,
and current city mayors have affirmed Baltimore and the lack of resources and leadership to
as a ‘welcoming city’ for immigrants and really do some reconciliation that’s necessary,
refugees, facing down Donald Trump’s threats but then also address the 50 plus years of
to withhold federal funds from ‘sanctuary delayed investment in, not only neighbourhoods,
cities’. However, despite this progressive gloss, but institutions of our government and our
Baltimore is deeply polarised along class and schools. And we have a huge human capital
racial lines, uniquely so among our cities. problem starting from birth on, and very few
10 11Baltimore is Governed started to work more collaboratively as a result: Our activist respondents talked a lot about a What’s Next? Local Action and
Opportunistically by Elites “businesses and philanthropic organisations “twin-track” mode of governance in Baltimore, Police Reform are Crucial
and the institutions are really stepping forward illustrated by the contrasting experiences of the
Baltimore is highly unusual by traditional and saying we’ve got to do more collectively’. Port Covington and Sandtown neighbourhoods. Yet, most respondents found reasons to be
European standards - both in terms of Others were more cautious: “it’s going to take Port Covington, the city’s current waterfront hopeful about the city’s future, though opinions
the opportunistic way in which policy is courage… because these are systematic, megaproject, has approvals for $660 million of diverge about the way forward. Some stressed
determined, and in terms of the elites that inequitable things that are so entrenched in tax increment financing, the biggest financing the need for consensus, “ways of partnering
wield governing power, comprising the City this city that we really have to blow this thing package in Baltimore’s history. Redevelopment in a positive manner”. Others, embedded in
Mayor and key officials, along with the city’s up and do it the right way”. However, it seems of this 80 hectare area of former rail-yards and the politics of resistance, stressed the need
anchors and philanthropies. The city is a that any impetus for social justice may already industrial land is envisaged as creating ‘a city for a more adversarial approach oriented
longstanding example of the “elite pluralist” be diminishing in the ebb-tides of the uprising. within a city’ of homes, offices, retail space and to thoroughgoing transformational change.
arrangement now emerging in Athens. parkland, housing 10-15,000 new residents. In The voice of black, young activists “trained
contrast, Sandtown in West Baltimore, one of outside of the local non-profit formula” has
This form of governance has created a stark From the Rhetoric of Change the city’s most stressed neighbourhoods and clearly become stronger since the uprising.
schism between Baltimore’s mostly white-led to Business as Usual?. the locus of the April 2015 uprising, now forms The strength of local action will therefore be
non-profit sector and its activist community, an initial focus for Project CORE, the State and a key determinant of what happens next.
who spoke of the city’s ‘non-profit industrial It is clear that while there has been some City’s demolition and redevelopment initiative
complex’. A government official accepted adjustment in style and tone, the goals and fixes which removed 400 blighted properties in 2016. Unsurprisingly, addressing the policing crisis
that the ‘whole infrastructure here of non- pursued in the city remain largely the same. One Some saw this approach as common sense, was seen as a prerequisite for other progressive
profits and others… co-opt community voice interviewee cautioned that ‘economic inclusion’ “when you allow that much disinvestment, changes in the city, as one interviewee
and say, this is what the community wants’. initiatives are “taking the pie and cutting out there’s no other choice but to take it down”, explained: “Police-community relations…
Longstanding activist and advocacy efforts have a slice for the groups that aren’t benefitting and as presenting new opportunities, such as I think everything else is so minor… that
been augmented by new social movements - it’s not pulling them in”. These initiatives for greening the city. Others saw it as business developer developing Port Covington don’t
and issue-based activism. Their primary focus contrast with “community wealth-building” and as usual, “insensitive of our community... not have absolutely nothing to do with my day-to-
is not the fiscal squeeze, as such, but rather ownership programmes, advocated by more even considering the issues that gave us day existence… But I’m getting those kinds of
the manifestation of injustice in the form of radical activist groups. This was presented as blocks and blocks of blighted properties… a conversations in my life all the time now - so
police violence and economic marginalisation. a “parallel structure, a parallel narrative… [a] slow gentrification process”. The riots have and so got shot the other day… Why would
vision of community empowerment from the led to a change in tone, but what else? As one anybody think those kinds of conversations in
grassroots up, as opposed to seeing black interviewee commented, “the conversation may America are acceptable? They have become the
folks as appendages of a neoliberal wave”. have changed but the systems aren’t changing” norm and I don’t want them to be the norm”.
Baltimore’s uprising: A Renewed
Demand for Social Justice However, many activists do not regard city The divided city of Baltimore is extreme by
government as being capable of providing the the standards of our other cities – even
In April 2015, Baltimore’s uprising, which necessary leadership. Their scepticism seems Athens. Ultimately, the research points to the
made global headlines, occurred after the reasonable, though there was some recognition critical need first to disclose and recognise
death following injuries sustained whilst in of efforts ‘to educate residents around the the iniquitous divisions afflicting the city, and
police custody of a young black man, Freddie role of city government today, that it is not then find equitable pathways to reconciliation.
Gray. All those interviewed acknowledged everything’. City budget workshops were cited Escaping the relentless fiscal squeeze, and
the uprising as an outcry against the city’s as ‘an example of at least having community the violence and destitution associated with
inequities, and saw it as heightening the need engagement that our police officers don’t do’. it, would be an enormous step forward.
for a more authentically inclusive form of The city is at a crucial tipping point.
governance. Some suggested that elites have
12 13neighbourhoods of the city, and achieving “The other crises did not exactly provoke a
particularly good results in the lowest- radical political change towards the left, but
income districts. Four of Spain’s five biggest this time, as a result of many factors, there
cities are now governed by anti-austerity has been a political change in the city and,
coalitions, including Madrid, with a significant relatively, a political and ideological change
influence on the tone of national politics. at the Catalan level (...)” (Journalist)
THE RETURN OF THE LEFT:
Lessons from Barcelona: There Cities Can Lead a Social and
BARCELONA AND THE NEW MUNICIPALISM is an alternative to Austerity! Political Renaissance
The emergence of Barcelona en Comú reflects The first two years of the BeC government
Barcelona is the capital of Catalonia, a accelerated a long and deep decline of PSC, both the intensity and the depth of the crisis have generated great expectations about the
region with a powerful national identity in evident since the 1990s. In 1991, the PSC affecting the whole of Spain, and the strength potential for building a new left political project
the northeast of Spain. With a population of won 21 of 41 seats on the City Council and of progressive social movements and political from the bottom-up, with cities playing a
1,608,746, it is the second biggest city in 42.95% of the total vote. By 2011, its share organisations rooted in urban life. We found central role. The political agenda of Barcelona
the country, after Madrid. Since the Olympic had declined to 22.14% and 11 seats, losing a widespread consensus that the 2008 crisis en Comú combines the classical political
Games in 1992, Barcelona has become a power for the first time since the foundational differs from previous crises, because of its principle of social and spatial redistribution
tourist hotspot. The strength of its tourist post-Franco democratic elections in 1979. In depth and its multi-dimensional character. with those of localism (municipalism), radical
sector, together with a highly diversified and 2015, the PSC experienced a further dramatic forms of coproduction and commoning
internationalised economy, makes it one collapse, winning only 9.63% of the vote and 4 “This crisis, as it seems to me, marks a (where “commons” refer to resources held
of the most prosperous cities in Spain. seats, finishing in fourth place. In its place, the ‘before and after’ for many people, in their in trust for, belonging to or affecting a whole
radical left has seen a dramatic revival, through perception of the economic system in which community, but not under direct state control).
The economic crash of 2008 hit the socio- the Barcelona en Comú coalition (BeC). we live and of the democratic system, the
economic structure of the city very badly, politics that we have lived” (Journalist) “ … (I’ve always felt) a strong commitment
provoking a sharp increase in poverty, with municipalism and with the idea that we
social exclusion and social inequalities. The The crisis has generated three main types do not only replace people in power, but also
unemployment rate rose to 18.6% in 2012 A New Chapter: The Indignados of political response in Spain: conservatism change the ways of doing things. We must open
(23.8% in Catalonia; 25% in Spain). The and the Rise of the New Left - a pro-establishment stance led by the old the institutions. If there is a place from where
at-risk-of-poverty rate reached 18.2 in 2011 conservative and social democratic parties; you can do this, it is the city” (Councillor)
(20.5 in Catalonia; 20.6% in Spain). Income The eruption of the Indignados movement separatism – the huge Catalan independence
inequalities rose sharply in the years of the (also known as the 15M movement) in movement; and the radical left, rooted in “The Commons aren’t spaces owned by
economic recession and the gap between the spring of 2011 began a process of the municipalist tradition, and reinforced by the public sector, but they represent a
the household disposable income of the resurgence and re-articulation of the left in the impetus of the Indignados movement shared and common wealth. The attributes
richest and the poorest neighbourhoods grew the city culminating in the electoral victory and related mobilisations against housing of universality, redistribution, accessibility...
rapidly at the same time. Despite signs of of Barcelona en Comú in the elections of evictions. The confluence of the separatist characteristic of the Public are missed in
economic recovery, the legacies of the crisis May 2015 and signalling the dawn of what and the radical left movements in Barcelona – many public administration projects. This
are ever-present in terms of job insecurity, some people call “the new municipalism”. with many points of intersection and conflict is why I think that the Commons are more
public sector retrenchment, housing exclusion between them – has made the city of Barcelona capable of acting as the Public than the public
and social and spatial polarisation. Barcelona en Comú is a radical left political perhaps Europe’s most significant stage for administration itself” (Government Official)
platform born in 2014 from a variety of old political resistance to the impact of crisis and
The politics of Barcelona have changed and new social movements and political austerity. In other words, the potential for an
dramatically since the start of the crisis. After organisations. Ada Colau, the former leader alternative politics is at its strongest in one of
32 years of centre-left city government led of the anti-housing eviction movement, is the cities worst affected by the 2008 crash.
by the Socialist Party of Catalonia (PSC), the the charismatic leader of this coalition and
local elections of 2011 brought a conservative the current City Mayor of Barcelona. In the
coalition to power, led by City Mayor Xavier elections of 2015, BeC obtained 25,1%
Trias (2011 – 2015). The 2011 election of total votes, wining in 53 out of the 73
14 15However, the Obstacles Facing to municipalities and investing surpluses and
the New Left are Formidable reserves rather than hoarding them (a demand
made by trade union activists in Leicester).
The first two years of the BeC coalition Another crucial strategy is to build political
show the enormity of the obstacles to radical alliances between cities, social movements and
change. First of all, BeC lacks a solid majority community organisations to confront and exert
in the City Council, forcing it into coalition pressure on upper tiers of government. We
with the electoral rump of the PSC. It also found that in combination, these approaches
faces resistance from within the municipal transform citizen perceptions of what is possible
bureaucracy, fiscal centralisation by the regional and makes political radicalisation infectious in
and national austerity regimes and a lack of and beyond the city, at the regional and
municipal power in key policy arenas - notably national scales.
housing. Larger constraints facing all cities to
a greater or lesser extent include the global Our conclusions are twofold. First, the
nature of economic and financial flows, and city council needs the movements and the
the pro-austerity ideology driven by the mass movements need the city council.
media and economic elites. As a member
of a community based organisation said: Second, to resist austerity imposed at
higher tiers of government, cities must unite
“The tools are very tiny and the expectations nationally and internationally, in a common
are great. How can the City Council of a city struggle. Mayor Ada Colau summed up
that is globally located on the map of the the place of Barcelona in this struggle.
relevant cities in the world, which attracts
migratory flows, capital flows… how can it “I believe that Barcelona is key to redefining
manage a power that it does not have? The politics and that municipalism is essential to
City Council does not have the power of the improving our democracy. This is the century
city. It is a very small portion of power” of women and the century of cities. And
there is no better way forward in this exciting
This reality means that while Barcelona’s new political moment than the new municipalism,
municipalism and commitment to radical co- where government is at its closest to the
production represents an important beginning, citizens. I can´t think of a better city than
it cannot be the end of the transformatory Barcelona, highly esteemed and followed
process. Urban struggles must gain traction with great international interest. This change
on the national and international stages. of political agenda has been implemented
through this mandate and it is delivering
results” (Nació Digital, 10/04/2017).
Cities must Unite Upwards and
Outwards to Defeat Austerity
At the same time, there is room for manoeuvre.
Our respondents highlighted a repertoire
of strategies that local governments can
use to promote radical political change. At
the institutional level, these include making
maximum creative use of the powers granted
16 17DUBLIN: A CENTRALISING BUT
CONTESTED AUSTERITY REGIME
Dublin, Ireland’s capital city has a population of Something of a political renaissance is
1.3 million and is home to a third of the country’s occurring across the city as individuals and
population. Economic activity in the Dublin communities become involved in diverse
region accounts for 47 per cent of Ireland’s practices of resistance, resilience,
GDP and it has the highest average disposable solidarity and support.
income per person in the country. Dublin is
now ranked third in the world for foreign direct Austerity hits the poorest hardest
investment (FDI). It serves as a hub for global
IT and software companies in particular, and There were eight austerity budgets in Ireland
several of the world’s largest IT firms have between the years 2008 and 2014 and their
their headquarters in Dublin. Consequently, impacts have been sharp and deep. There has
the city’s attractiveness to both domestic and been a significant rise in unemployment, the
international investors is one of the principal overall percentage of people in poverty has
driving forces of urban planning and policy. risen to 15.8 per cent, and inequality has risen
Commercial rates also form the principal source sharply. The significantly gendered nature of
of funding for Dublin City Council (DCC). austerity effects has also been noted. In Dublin,
where rates of deprivation have increased
significantly over the austerity years, rising
from 10.5 per cent in 2008 to 28.1 per cent
Dublin has used austerity to in 2013, there is broad agreement among our
consolidate pro-business policies participants that austerity has hit the poorest
hardest although the middle-classes have also
As many of our respondents noted, austerity in been severely affected. As one respondent
Dublin has therefore served as an ideology to noted, “The government did not stand up to
expand and consolidate many of the policies and the bullies. It chose to stand up to the weak.
programmes in place since the 1990s, which And so austerity and harshness was very one-
aim at making the city attractive to investors sided … They picked on the weakest people
and developers while ignoring or containing – subliminally as much as consciously” (Social
marginalisation and dissent. Indeed, as our Researcher). The injustice of this unequal
research indicates, austerity has provided an burden-sharing was highlighted by many
opportunity to further curtail and control the respondents. As another noted in the course
activities of civil society groups while targeting of one of our Focus Groups, “What strikes
cuts at the most marginalised. While, as the me with austerity is that it’s hugely unjust. It’s
Irish Finance Minister with an eye on the global hugely unfair. And that we’re being forced
markets likes to note, Ireland is certainly not to carry burdens for a class of people who
Greece and Dublin not Athens, public basically are financial speculators. And they
anger and frustration at the cuts meted speculated and lost. Instead of carrying their
out in the name of austerity is palpable. losses, they put them onto us” (Resident).
18 19There has been a drop of 21 per cent in mean As one official noted, “Austerity was a time, in Many respondents were adamant that this And most of the organisations were relying
disposable income across the city and the drop my view, to get reform, and a lot of the austerity represented a deliberate strategy on the part of on government funding. And so in a way, you
in the income of the unemployed is reported to was actually done under the heading of reform. the state. As another notes, “It felt like the civil were, you know, muzzled really.” (CBO).
stand at 22 per cent. Correspondingly, the rate It wasn’t. We got very little reform… I think servants were waiting in the long grass…. It
of unemployment rose from 38,000 in 2006 an opportunity was lost.” (Council Official). felt a bit like slash and burn… There was a bit,
to a high of 90,000 in 2012. Although this kind of, we’ll teach you a lesson, and protect
figure dropped to 75,000 in 2015, interview Many councillors were even more blunt. the core - the core being themselves, you Citizens respond to Austerity in diverse,
respondents highlight consistent difficulties in In the words of one, “We have all the talk know?” (Community representative). Another innovative and rebellious ways
meeting debt and bill payments, and poverty about political reform, but there’s no reform. commented that this constituted a government
and inequality remain widespread and pervasive. Reform means cuts.”. (Councillor) priority under austerity, “Certainly I think one “People are just incensed. Not because they
While the government constantly stresses that of the priorities in the present government, are the left-wing. Not because they are radical
core welfare benefits have not been touched they made no secret of the fact that when they revolutionists. It’s because they’ve been shafted.
in austerity budgets, the extensive cuts to came into power, the days of Partnerships and They can see that they do not have pensions.
support and services across a wide range of Austerity has consolidated a [community] Task Forces and this, that and They see no future for their kids” (Councillor).
sectors have indirectly affected many. As one state-led attack on civil society groups the other would - I think the phrase that was
of our Focus Group participants notes, “They often used, that they would clip their wings. While the logic and practices of austerity
don’t hit you straight on the thing, but all the As well as cutting back (while paradoxically And they did.” (Politician). For remaining governance in Dublin certainly resonate
supports have been taken away” (Resident). adding to the work of) the City Council, austerity groups, their activities are now limited to a with those of other cities within this project,
For example, funding to the programme tackling has also provided the opportunity to consolidate ’services only’ function (research and advocacy the various and diverse public reactions to
the growing drug epidemic in the city is the state’s move to ‘rationalise’ (cut) civil society are no longer funded) and their remit in this them highlight some particularities. The so-
reported to be down by 44 per cent and many groups and more closely align (subsume) has been greatly increased. For example, one called ‘water protests’ at the introduction of
other funding lines have ceased altogether. them to local government, through newly organisation we visited has gone from covering new water charges in 2014 have perhaps
established Local Community Development an area comprising 15,000 people to one received the most publicity. However, our
Committees. According to participants, these comprising 125,000 with no attendant increase respondents repeatedly emphasised that these
operate in an extremely formulaic manner, in personnel. When asked how they will now protests were never just about water. They
Austerity is a lost opportunity for leaving no room for deliberation or debate. manage to engage with communities, one of the were simply the final straw for a frustrated,
developing local democracy organisation’s employees wryly noted that “well, tired, angry populace who decided enough
Although moves to shut down civil society it’s necessarily going to be a superficial process’ was enough. As one of our respondents
Local government in Ireland is extremely weak groups began with reduced state support noted, “What people wanted, people wanted
and Irish governance is characterised by an to them around 2002, efforts to keep them The cuts to and control of civic organisations something to voice their concern. People
exceedingly high degree of centralisation. going were dealt a major blow over the has fed into communities in a number of ways. wanted something to voice their anger. And
Dublin City Council is no exception. The austerity period. Cuts are reported to have In addition to the obvious impact of reduced they saw this as mechanism. But it’s not
much touted local government reforms which, amounted to 35 per cent, with the smaller, services and support to communities, the narrow in any sense just about water.” (CBO).
as part of austerity, promised greater levels more politically active community organisations ‘no advocacy’ nature of state funding leaves
of local democracy, in reality manifested as bearing the brunt of these. According to organisations feeling silenced and communities Nor was this ever a single-tactic movement.
budget cuts (reported to be in the region of of our one respondents, “there were about without advocates. Thus, the important spaces Public marches caught the media headlines,
20-25%) coupled with increased responsibility 55,000 people working in the community that once existed for critique and dissent within but the movement adopted a wide variety
(for local community development). As sector, and, after austerity, there were about local communities have also been narrowed, of tactics and strategies. Two features, in
for any other reforms, there is broad 20,000 that were taken out of the mix. So, if not shut down. As one of our respondents particular, single out this movement as unique
agreement that these did not happen. there was just a massive cull, if you like, noted, “…you felt your voice was, you felt as in the history of the Irish state. The first is the
at that level.” (Community Activist). if you were strangled because you couldn’t diversity of people involved. A survey carried
actually actively criticize if you were getting out in 2015 of 2,556 people involved found
funding. You didn’t have an independent voice. that 54 per cent were ‘new activists’ – i.e. had
20 21LEICESTER:
A CASE OF “AUSTERITY REALISM”
never protested about anything in their lives Austerity governance in Dublin may well Leicester is a medium-sized city of some opposed to austerity in principle, not to be vocal
before; and the reasons cited by 60 per cent be remembered as much by its political, as 342,000 people in the East Midlands region. in challenging the UK government. We call this
of these was that “austerity has gone too far”. its economic and social impacts. As social Perhaps its most unique feature is its “super- approach “austerity realism”. By this, we mean
Moreover, many of our respondents observe and psychological costs escalated, the diversity”, with black and minority ethnic that while most of our respondents in the City
that a high proportion of those involved are city experienced something of a political groups on the cusp of becoming a majority Council detest austerity, they deliver it diligently,
women. Thus, rather than mobilising what one renaissance. While some of our respondents of the city’s population. It is a stronghold though reluctantly, for lack of a perceived
might regard as ‘the usual suspects’ – the echo mainstream framing of public resistance of the UK Labour Party, which dominates alternative. The preceding quotation highlights
‘angry mob’ as the mainstream media chose as ‘ugly’ and ‘anti-democratic’, the majority view Leicester City Council (LCC). Labour’s Sir just how weak British local government remains,
to present it - resistance to austerity has cut this as a positive development. Dublin may not Peter Soulsby has held the office of City and its political subordination to the centre.
across classes and neighbourhoods throughout be Athens or Barcelona, but nor is it Leicester Mayor since it was established in 2011, Apart from running down reserves, councils
the city. And, as a movement, it has grown with its ‘austerity realism’ (see below). A new winning two elections with 55% of the vote. cannot resist austerity without breaking the law.
and developed organically from the ground and diverse political class has emerged and
up. Although there are attempts by some left- one of the key lessons from the past few years Once known as a prosperous city that “clothed Austerity realism translates into a strategy for
wing parties to channel these ‘new’ activists is that public resistance cannot be controlled the world”, Leicester has long suffered acute managing and mitigating the worst effects of
into formal politics, our respondents report and contained. Authorities ignore it at their peril. deprivation linked to the collapse of key cuts to benefits and services, alongside an
that many prefer alternative political avenues The challenge for Dublin’s policymakers and industries in the 1970s and 1980s. Recent increasingly vigorous urban growth strategy,
in their quest for social justice. The challenge planners now is to learn from others how to government statistics show that in 2014, spearheaded by the City Mayor. The logic
now is to engage these new political actors balance the different interests across the city by Leicester had the lowest gross disposable of austerity realism means that governing
in innovative and non-traditional ways substantively engaging with these new political household income in the UK, a mere £12,071. energies are consumed, on the one hand,
actors. This will be no easy task given the huge Gross average weekly pay per worker stood at with trying to preserve public services as far
damage caused by austerity. It will require new just 81% of the national average, the 7th lowest as possible while providing a safety net amid
politics and practices of engagement, which in the UK. For many thousands of Leicester’s seemingly endless cuts and restructuring,
What Next? A new politics and break with historic practices of co-option citizens, paid work offers no escape from and on the other hand with enhancing the
practices of engagement is required and containment. And it will require time – to poverty. The city could ill afford David Cameron’s competitive position of Leicester. Although
rebuild trust and relations among angry and “age of austerity”, now in its eighth year. many respondents would like things to be
“I think there’s something fundamentally that’s disaffected communities across the city. different, visions for Leicester’s future were
changed in terms of people’s psyche in terms of largely confined by this dual imperative.
how they see the world. Where previously they
would have accepted it, a bit like the [Catholic] Austerity is Deeply Embedded By 2020, the UK government will have cut
Church. They would have accepted it. Now in Local Governance Culture Leicester’s budget for discretionary services
they say, ‘Hold on,’ you know. ‘The emperor – those it does not have to provide by law -
has no clothes’. And once you switch that on in “We are not happy making cuts but we cannot by 63%. Abolition of the central government
people, they start to see other things.” (CBO) set an illegal deficit budget. If we do Eric Revenue Support Grant to local authorities,
Pickles will simply come in and take over also by 2020, marks the end not of central
the running of the council” (Councillor). government control over local politics, but of
local fiscal equity. Cities with weak economies
It is striking just how deeply austerity politics are to be left reliant on meagre council tax
have become embedded in the governing
culture and political psyche of English municipal
elites. This is exemplified in Leicester, where the
City Council made a strategic decision, though
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