http://www.citymaking.com/wp-content/uploads/2009/02/istanbul-presentation

Urban Development Under Structural Adjustment: Istanbul, Turkey Dr Savvas Verdis

(Perez 2003)

(Cecen, A. Suut Dogruel, and Fatma Dogruel 1994)

Relative Unit of Labour Cost

OECD

Agricultural Support

OECD

GDP

OECD

Unemployment Rate by Region

OECD

Population Increase

GINI Regional Disparities

OECD

Difference of per capita GDP of metro regions to their national level (2002)

OECD

Distribution of the Banking Sector in Istanbul

(Ă–zdemir 2002)

(Ocakci 2000)

OECD

OECD

OECD

OECD

OECD

(Alper and Saglam 2001)

Defining the Illegality of Gecekondus

Built on public land, typically belonging to the Treasury Constructed on private property, not belonging to homeowner Built on shared title land Constructed without occupancy or construction permits

Government Approaches to Gecekondus

1940's

Demolition of structures by State and Municipal Authorities

1960's

State accepted them as inevitable due to rapid urbanisation. As part of five year developmental plan in 1963, State accepts amnesties and legalises large areas.

1980's

Legalised areas allowed to redevelop into apartments. First generation gecekondu owners could now get increased rents from new waves of migration.

1990's

State demolitions of new gecekondu districts. Provision of services to legalised areas.

2000's

Densification of legalised gecekondus, with increases strain on infrastructure.

(Baharoglu and Leitmann 1998)

(Baharoglu and Leitmann 1998)

(Baharoglu 1996)

(Baharoglu 1996)

Esenler: Rent Gaps & Rent Relationships

(Erman and Eken 2004)

The Politics of Sultanbeyli

OECD

Gokkafes Building

Financing Public Projects Developer Pays Characteristics Financing municipal bonds or developer investments through increased taxes, based on property values

Tax Incremental Financing

Examples Chicago TIF areas, USA

Community incentives with recapture agreements • Clawbacks • Recision • Recalibration

Supply-side economics to maximise jobs & tax-base.

- Recover all subsidy costs.

- Cancel subsidy agreement.

- Adjust subsidy to reflect changing business condition.

Pay for impact costs of development • Impact fees • developer exactions (infrastructure or services) • developer constructed off site infrastructure

Burden of finance to groups not yet present in the area - Internalising the social costs of marginal development - Based on negotiation - Spreading benefits to fringe areas

Land Leasing (Long term occupancy & development rights)

Ending the free/ cheap use of land resources. Capturing land value increments due to public investments

Guangdong, China

Revenue earmarked to finance contracts

Goias, Brazil

Large Scale projects that can typically pay for themselves

TfL, London

Invest early at times of low prices

Shanghai Chengtou Corporation

Public Private Partnerships

Section 106, UK Section 106, UK

Public Financing Bond Issuance Government Fiscal Input Enterprize Zones

Navi SEZ Mumbai, India

Revolving Loan Funds Amalgamating tax bases

South African Townships

Cross border joint ventures Acquiring Land

Local Authority Service Procurement- UK CPO, Government Offices Relocation

Rural Land Acquisition, China

Catalyst Financing Public Attraction Projects Brownfield Projects

High initial costs

Retail Finance

Westfield, London

Private Financing Bank Credit on Municipal Asset collateral

Typically involves Land assets

Joint Ventures Venture Capital

UK Housing Associations – Private Developers Private ownership stake of public services

(Peterson 2007; White, Bingham, and Hill 2003; Chapman 2008)