The 23rd Edge Debate: 4th January 2005

People or place

Can the concept of physical capital help determine what makes a great neighbourhood?

Background

The ODPM and Treasury have been considering how to measure the benefit of public investment in the Urban Renaissance and Sustainable Communities - who benefits and how. ODPM, Yorkshire Forward and CABE held a workshop on the Economic Case for Investment in 'Quality of Place' on 25 November 2004. CABE commissioned two think pieces from Geoff Mulgan and Francois Matarasso (Comedia), which formed the basis of this debate. Chris Murray presented thoughts from the Matarasso paper.

Issues that arose during the debate:

1. Is there no such thing as an intrinsic value eg Biosphere?
2. Most metrics are based on classical economics which show the value people put on something, not its inherent value
3. The 'quality of place' could be measured through a balance of outcomes, experiences and social trust; but these may change over time which makes it difficult for politicians eg hostility to the Angel of the North turned into support.
4. Physical capital is not just economic
5. New housing is not valued unless it comes with the social infrastructure eg schools
6. Richard Florida ('The Rise of the Creative Class') suggests that we are not measuring the right things
7. We need to consider the role physical capital plays in our wider economic objectives. If a large proportion of growth has come via the creative class, physical capital plays an important role in terms of the economic output of this class. We understand too little about this relationship.
8. United States C. 20th prosperity is a function of attracting creative class from rest of the world but the war on terror has thrown this process into reverse. The UK is in a position to appeal to the migratory 'creatives' no longer going to the US. The quality of the physical capital is part of our appeal. We need to think holistically about immigration, economic growth and the built environment.
9. Florida looks at the single professional whereas Peter Hall's study of Manchester and Leipzig suggests that families and their sub-urban needs (eg public space) may be the key to urban regeneration.
10. Is physical capital more useful to Central Government or Local Authorities?
11. Local Authorities need some metrics to discuss regeneration with local businesses and communities. Value maps might help.
12. How do you evaluate the success of the urban task force in promoting regeneration? The impact of the Tate on St Ives is clear but does it impact on Truro?
13. How do you evaluate the benefit to the private owners surrounding the 'public good'?
14. Does not the quality of the elevations of the surrounding buildings sets the quality of the public place?
15. Places are more successful than buildings because they have been negotiated with a wider range of stakeholders
16. Transportation is a key element
17. Transience makes it difficult eg. Manchester is only sustained by international migration; so when do you decide to invest?
18. We need much more comprehensive neighbourhood research over time; ODPM says there is no such systematic research.
19. Success can be measured but it needs a huge effort; need to bring EPSRC, ESRC and AHRB funds together to support longitudinal research.