IMPUESTOS IBEROAMERICA 2013 Impuesto sobre transacciones financieras

The forces that enable the revitalisation process are simultaneously responsible for identifying communities vulnerable to gentrification. The changing socio-economic and political structures of city neighbourhoods are a result of the relationship between supply and demand that is necessitated by the public, as well as a result of the changing social, economic, and political status quo of a region. Additionally, inner city neighbourhoods do not follow a predetermined course of growth or decline. The growth or decline of a city is dependent on a wide range of factors that are themselves in a constant state of flux, some of which include the following: employment opportunities, economic status, access to the city, level of crime, and availability of services and amenities etc. It must be noted, however, that a city experiencing declining growth may reverse its direction at any point owing to economic reinvestment in the region, and simultaneously begin a period of revitalisation (Pacione, 2005).

Areas vulnerable to gentrification are identifiable by a range of characteristic traits. Revitalisation primarily occurs in regions characterised by low-income households and people of colour. These regions are typified by high levels of concentrated poverty where individuals hope that the revitalisation which occurs within the region will improve their quality of life. These low-income households are generally headed by either a single female or a single elderly person (Kennedy et al, 2001). Additionally, these low-income residents are further vulnerable to gentrification as they lack the knowledge and understanding to recognise the phenomenon in its wake, and because they lack the unity to stand firm against the phenomenon. The declining inner city of vulnerable low-income households is typically surrounded by neighbourhoods that are low-income or shifting to low-income occupancy (Pacione, 2005). These residents are vulnerable to an adverse range of economic and political decisions that will severely impacts their quality of living for an extended period of time (Aka, 2010).

Furthermore, these regions are typically characterised by high crime and drug levels as well as vandalism, hence gentrifications is seen as a way to reduce these negative factors. The high crime rates in these regions vulnerable to gentrification are typically associated with high levels of poverty (Kennedy et al, 2001). It’s a vicious cycle whereby increased poverty leads to increased criminal activity, and drug use comes into play as a means to escape these

46 destitute living conditions. As a result the inner city becomes crime-ridden and is dominated by drug use, vagrants and street hawkers (Visser et al, 2008). Gentrification is therefore seen as a means to reduce the crime, poverty and blight within the inner city, thereby improving the quality of life of residents in the city centre. However, it is often these residents who don’t experience an improved quality of life as they are displaced from the newly gentrified region (Kennedy et al, 2001).

Buildings in areas vulnerable to gentrification are typically extremely old, with poor designs and no historical value or significance, making it easier for developers to demolish (or rejuvenate) and rebuild the inner city. A vast proportion of these buildings house more residents than they should, leading to the over-crowding of small spaces. These regions typically have low-owner occupancy rates, absentee owners, and high vacancy rates, all of which lead to building decline in the inner city. Thus, buildings within a city vulnerable to gentrification are typically old, derelict and either vacant or over-crowded (Pacione, 2005). Furthermore, in a city prone to experience gentrification, a significant proportion of buildings in the inner city are abandoned, for which there are a wide range of contributing factors. ‘White flight’, the out-migration of white people from the inner city to the suburbs, is a major occurrence in these regions. The physical deterioration of a building and the lack of housing demand in neighbourhoods encourages abandonment. The reduced paying capability of low- income tenants as well as the increase in municipal real-estate taxes has resulted in the inability of residents to pay rent and therefore increases the amount of abandoned buildings. Furthermore, the withdrawal of investment from a region as a result of redlining by banks will exacerbate the amount of abandoned buildings within the inner city (Pacione, 2005). Disinvestment by landlords is then accompanied by disinvestment of financial institutions, adding to the deterioration of the region (Smith, 2013). And lastly, the introduction of stringent rent controls has reduced the ability of landlords to repair and maintain buildings, which then leads to abandonment (Pacione, 2005).

Although these regions typically show a strong sense of community cohesion with a range of social networks, individual community members are typically disempowered and thus there are very few or no strong community organisations to stand firm against the negative impacts of gentrification (Pacione, 2005). Hence, with little fight put up by the locals, developers have few obstacles standing in their way when attempting to gentrify the inner city. Even though

47 strong social networks and connections are formed within a community, the lack of empowerment and knowledge within the region allows for a city centre that is weak at the hands of politics, developers and gentrification. Additionally, fuelling the high rates of disempowerment are the lack of institutions (educational, for example) and desirable amenities (entertainment, for instance). The supply of resources available for the advantage of residents is severely lacking in the underprivileged areas of society.

Moreover, these regions are characterised by heavy traffic, especially large trucks, on residential streets (Kennedy et al, 2001). A major characteristic of an area ripe for gentrification are the major traffic flows and increased congestion in the inner city (Kennedy

et al, 2001). Frustrations increase with the extended commuting time associated with high

levels of congestion. This adds to the declining city and thus to the decline of the quality of life for residents who reside in this congested region (Kennedy et al, 2001).

Therefore, an area prone to gentrification is typically inner city where severe capital depreciation has occurred. The physical and economically deterioration of the environment is primarily owing to the operation of the land and housing market. Furthermore, the neglect in the city centre combined with disinvestment initiates a long period of decline and deterioration as a result of reduced capital investment in the region (Smith, 2013). This then enables a city to become entrenched in the characteristics ripe for reinvestment and thus gentrification. Therefore, to sum it up, the characteristics of a city centre vulnerable to gentrification include: low-income households; a city entrenched in a vicious cycle of crime, vandalism, poverty and drugs; a city surrounded by local income neighbourhoods; old and derelict buildings with no historical significance; a rapidly dwindling inner city population as well as low-owner occupancy; few robust community organisations; high vacancy rates and abandoned buildings; and heavy vehicles and congestion on residential streets (Pacione, 2005). Areas vulnerable to gentrification will have two sets of individuals, namely those who stand to gain from the process and those who are excluded from the benefits of a newly gentrified area.

48