With the emergence of the real estate market since 1990, the operation Beijing's economy has led to a re-shaping of its inner city. By reviewing the Old and Dilapidated Housing Redevelopment (ODHR) programme in Beijing in the 1990s, this paper seeks to uncover the forces that led to the prevailing large-scale urban redevelopment which induced serious environmental and socioeconomic problems. By analysing conflicts between major stakeholders of the ODHR programme, the paper finds that the root cause of these problems was embedded in the 'mismatch of plan and market' by which local officials and local developers utilised their privileges inherited from a planned economy to benefit from the emerging real estate markets. As a result, the hidden agenda of local elites was facilitated during the urban redevelopment process.
This study compares urban renewal in the United States in the 1950s and 1960s with inner-city redevelopment in China since the late 1980s. It finds that both programs use government authority and subsidies to make large-scale private or quasi-private investment attractive in the name of ameliorating living conditions. Cautiously applying Logan and Molotch’s “growth coalition” concept to China, the authors assert that a “growth machine” has formed during China’s economic decentralization processes. Despite the similarities, America’s urban renewal was an ill-fated federal program in which the local government and downtown business interests cooperated to boost declining inner-cities that were competing with burgeoning suburbs. In contrast, China’s redevelopment has been propelled by emerging local elites using decentralized state power to pursue fast growth in rising real estate markets. Greater insights into urban redevelopment can be gleaned through this comparative analysis.
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