To what extend are the arguments of porters critics applicable To Rotterdam South?
(Blakely and Small, 1996 and 2fdck) consider it unlikely to lift the underclass out of poverty through welfare reductions and I agree. Dutch social benefits does substantiate local demand. Its consequence should increase the positive process of gentrification.
Whilst mitigating the negative effects. The substantial local demand induced by the welfare state creates a direct incentive. For businesses to serve a high density population guaranteed of income.
Only then, a rise in rent price as a consequence of gentrification will have less detrimental effects. As a basic income is guaranteed and rent subsidies are common for the lower income.
In order to invest in communities without displacement, besides rent subsidies and social benefits other strategies through policies.
And programs need to be implemented. In order to facilitating cheaper housing whilst preserving the affordable housing stock.
Which strategies can be used to reduce the displacement costs associated with gentrification specifically in the south of Rotterdam?
At first glance Porter’s thesis makes a lot of sense, in theory social welfare benefits does undermine the efficiency of a market.
Plus in theory stimulating the business environment for region to attract profitable businesses with a true competitive advantage is an economic efficient way to revitalize social economic marginal neighborhoods. However the most economically efficient way is often not the most socially desired.
A pertaining problem persists, a rise in rent prices as the inner city gets more attractive negatively affect the poorest people the most, as a consequence many people cannot afford their rent and need to move out, merely shifting the problem to another area, after all, these people need to go somewhere.
Social benefits Rotterdam
Even though Rotterdam’s case suggests social benefits. And rent subsidies slowing down the process of gentrification it also mitigates its negative effects, displacement. The process of gentrification is affected by the level of social benefits. Downsizing social benefits while incorporating supply side policies for promoting gentrification.
Without facilitating and preserving cheap housing, ought to be scrutinized; not gentrification itself.