This essay discusses the extent to which neo-liberalism and city planning are compatible or not within Reykjavík´s different political administrations. Observing the city and describing its spatial changes are the tools used to examine this compatibility. Building a city is not just a physical act but the materialization of our decisions and/or aspirations, which happen in a cultural, economic and social framework. City planning and neo-liberalism are two different politics (Chang 2010). Asking how and in what extent they are compatible is like asking whether the Republican Party politics is compatible or not with the Democratic one. The final aim is the same for both: to improve society, but the tools chosen may differ for each of them. The point that is important to make is that both parties are parts of a bigger picture that is called democracy. In a democratic state the power belongs to the people who have the right to vote and therefore to elect their representatives. Equally, neo-liberalism (also known as free-market capitalism) and city planning are parts of a bigger economic system that is called capitalism. There are many ways to intend capitalism, neo-liberalism is just one (Chang 2010). The relation between state and market in a democratic state is a relationship of power and distribution of duties, and it has been changing through the years reflecting our value, morals, beliefs and our understanding of the world.
Reykjavík
“Nothing is more dangerous than an idea – if it is the only idea” Émile-Auguste Chartier (1868-1951)
Intro
This essay discusses the extent to which neo-liberalism and city planning are compatible or not within Reykjavík´s different political administrations. Observing the city and describing its spatial changes are the tools used to examine this compatibility. Building a city is not just a physical act but the materialization of our decisions and/or aspirations, which happen in a cultural, economic and social framework. City planning and neo-liberalism are two different politics (Chang 2010). Asking how and in what extent they are compatible is like asking whether the Republican Party politics is compatible or not with the Democratic one. The final aim is the same for both: to improve society, but the tools chosen may differ for each of them. The point that is important to make is that both parties are parts of a bigger picture that is called democracy. In a democratic state the power belongs to the people who have the right to vote and therefore to elect their representatives. Equally, neo-liberalism (also known as free-market capitalism) and city planning are parts of a bigger economic system that is called capitalism. There are many ways to intend capitalism, neo-liberalism is just one (Chang 2010). The relation between state and market in a democratic state is a relationship of power and distribution of duties, and it has been changing through the years reflecting our value, morals, beliefs and our understanding of the world.
Neo-liberalism
“Neo-liberalism is in the first instance a theory of political economic practices that proposes that human well-being can best be advanced by liberating individual entrepreneurial freedoms and skills within an institutional framework characterised by strong private property rights, free-markets, and free trade. The role of the state is to create and preserve an institutional framework appropriate to such practices.” (Harvey 2005, p. 2)
Neo-liberalism in Iceland started to gain ground in politics from the early 1980s . “this involved a growing belief in the benevolence of unfettered markets, privatization, reservations about the role of government in the economy, tax favours to firms and investors and a laissez-faire attitude towards the role of government in finance and the economy in general” (Olafsson & Kristjansson 2010, p. 2).
Neo-liberalism is a choice, a way to intend capitalism (Chang 2010). A city that chooses a neo-liberal policy trusts market forces to make the right decision for its economic growth. The main theorist of the neo-liberalism ideology was the Austrian political philosopher Friedrich von Hayek, he wrote in 1960 a fundamental text on neo-liberalism: “The Constitution of Liberty”. Hayek argued that “the battle for ideas was key [...] The battle was not only against Marxism but against socialism, state planning, and Keynesian interventionism. “ (Harvey 2005, p. 21)
Within these assumptions the free-market is envisioned as the strongest generator of wealth and growth. Free-markets represent the most important factors for delivering higher wealth standards for everyone: “a rising tide lifts all boats” and as a consequence poverty can be eliminated (the trickle-down effect). More than fifty years have passed since these first neo-liberal ideas were formulated. Today we have facts that show us that things do not function this way. “The market fails in the ability to provide stable economic growth and an adequate standard of living for all of society’s members” (Klosterman 1985, p. 91), it fails because we are not always rational creatures and our understanding of reality is limited (Chang 2010) also, it fails because the word freedom is a very slippery one, powerful, important but also equivocal.
Frequently asked questions
What is the main topic of the essay?
The essay discusses the compatibility of neo-liberalism and city planning in Reykjavík under different political administrations. It uses the city's spatial changes as a tool to examine this compatibility.
What is the author's view on building a city?
The author views building a city as more than just a physical act. It's the materialization of decisions and aspirations within a cultural, economic, and social framework.
How does the author relate city planning and neo-liberalism?
The author sees city planning and neo-liberalism as two different political approaches, similar to Republican and Democratic party politics. While both aim to improve society, they use different tools.
What is the author's understanding of the relationship between the state and market?
The author sees the relationship between the state and market in a democratic state as a relationship of power and distribution of duties that evolves over time, reflecting values, morals, beliefs, and understanding of the world.
How is neo-liberalism defined in the essay?
The essay defines neo-liberalism as a theory of political economic practices that believes human well-being is best advanced by liberating individual entrepreneurial freedoms and skills within an institutional framework characterized by strong private property rights, free markets, and free trade. The state's role is to create and preserve this framework.
When did neo-liberalism start gaining ground in Iceland?
Neo-liberalism started gaining ground in Icelandic politics from the early 1980s.
What are some of the beliefs associated with the rise of neo-liberalism in Iceland?
Beliefs included a growing faith in unfettered markets, privatization, reservations about the role of government in the economy, tax favors to firms and investors, and a laissez-faire attitude towards government finance and the economy.
Who is Friedrich von Hayek, and what is his significance to neo-liberalism?
Friedrich von Hayek was an Austrian political philosopher and a major theorist of neo-liberalism. His book "The Constitution of Liberty" is considered a fundamental text on neo-liberalism.
How is the free market viewed within the neo-liberalism framework?
The free market is envisioned as the strongest generator of wealth and growth, leading to higher wealth standards for everyone (the "trickle-down effect") and poverty elimination.
What are some criticisms of the free market?
The market is criticized for failing to provide stable economic growth and an adequate standard of living for all members of society. This is due to factors like irrational human behavior, limited understanding of reality, and the ambiguous nature of freedom.
What does Karl Polanyi say about freedom?
Karl Polanyi pointed out that the meaning of freedom is contradictory, consisting of "one good and the other bad," noting the freedom to make inordinate gains without commensurate service to the community.
What does the essay say about individual freedom and social justice?
The essay states that values of individual freedom and social justice are not necessarily compatible, as the interests of one person may differ from the interests of the community.
- Arbeit zitieren
- Massimo Santanicchia (Autor:in), 2011, Reykjavík Spatial Environment, München, GRIN Verlag, https://www.grin.com/document/212650
