What’s the point of Outer London?

I left today’s LSE/Demos Outer London seminar scratching my head. What is ‘Outer London’ for? It doesn’t make much sense – except as a voting bloc. Given we’re less than a year from Mayoral elections, though, perhaps that’s the point.

Here are some brief thoughts from the day. (Disclosure: I’m affiliated with Demos’ new Centre for London, but these views are my own.)

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There are different ways of thinking about cities. Planners focus on systems and zones. Economists think about markets, and clusters of people and firms. Sociologists look at communities, neighbourhoods and relationships. In practice, we need all of these lenses to understand real world places.

London has many distinctive features. For now let’s pick two. First, it’s a ‘city of villages’ – over time, the capital has emerged from dozens of small centres merging in a single urban mass. Second, it’s a mega-city-region. London’s economic system spills over political boundaries and across much of Southern England.

Given this, drawing lines around bits of London is a bit of an arbitrary exercise. Using official definitions of ‘Inner’ and ‘Outer’ London to make policy is actively unhelpful. 

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This became very clear during the morning. Demos’ Paul Hildreth took a classic systems approach, tracing links between Outer London and the rest. But his slides demonstrated just how hard this is to do. Data on people flows, industry mix, residence types and productivity all show how interconnected the London system is. 60% of Londoners live in the outer Boroughs, but most don’t stay there: commutes within Outer London make up less than a third of total journeys. 

Alan Mace from LSE London took a communities angle, presenting some very rich data on three outer boroughs. These showed some classic suburban features – stable populations and a strong sense of belonging. But it’s not clear these neighbourhoods are distinctively different from inner suburbs like parts of Hackney or Islington – or that similar to other outer communities. In the Q&A, it became obvious how heterogenous ‘Outer London’ neighbourhoods actually are.

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 As Scottish law would say, Outer London is ‘not proven’ – either as an economic space or a state of mind. But it does work in political terms.

Boris won the 2008 Mayoral election largely on the basis of outer boroughs’ votes. Ken, learning from past mistakes, began his 2012 comeback bid in Croydon. No surprise that Boris is re-launching the Outer London Commission less than a year before the vote, with £10m to spend on Outer London town centres before May (and £40m after).

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What does this mean for policy? The political imperative means Outer London features heavily in the new London Plan, which launches on 11 July. Economic and social realities mean there are tensions in the Plan’s overall strategy, and in the gap between policymaking and impact on the ground.

On strategy, the Plan has a welcome focus on thinking across ‘mega-London’, and identifies high-growth development hotspots across the capital. But it then goes on to set out a number of Outer London-specific policies on the economy, transport and quality of life.

On impacts, OLC chair Will McKee rightly said at the seminar that planners can’t turn market forces around, and need to work opportunistically within the business cycle. So given the deep trends taking retail off high streets and onto the internet, what can the OLC’s £50m town centre fund actually do? It is unlikely to have more than a marginal effect on retail employment. Better, as Mary Portas suggests, to take a hard look at how shopping behaviour is changing – then intervene where sensible to help high streets adapt. 

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Outer London is driven by electoral realities, more than economic or social truths. Let’s hope the next Mayor, whoever they are, recognises which of these is the best basis for policy in the capital.

Londonism

 Die Zeit has just published a big feature on London as high-powered, on-trend, chaotic world city. There’s a quote from me, plus a cinematic passage in which the journalist and I wander around Hackney Wick before stopping off for a latte.

Also featured are Boris Johnson, Mark Kleinman from the GLA and a grumpy-sounding Hanif Kureishi. You can read the whole thing here. Or for non-German speakers, there’s Google Translate.

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ps more fame: in case you missed it, the Guardian have done a nice writeup of my Munich / Silicon Valley report.

The Triumph of the City

The Ed Glaeser roadshow has rolled out of town. Last week the great man spoke at LSE, ippr, Demos, Centre for Cities and Policy Exchange, also finding time for a Guardian podcast, CfC video and an FT op-ed. Phew! He didn’t even change blazer - here he is on the Daily Show wearing it again (at about 14:30).

Until now Glaeser has been a bit of an academic’s academic. With his new book, The Triumph of the City, he’s making a bid for public intellectual territory. Saskia Sassen, Peter Hall and Richard Florida have had this space to themselves for the past decade, so it’s good to see someone else step up.

 Here’s the podcast and video of his LSE lecture. Below, my quick notes.

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 1) Cities still matter because they’re ideas engines. In a knowledge-driven economy, products and services are getting progressively more complex. Cities help manage this by bringing people face to face, helping ideas spread, and cross-pollinating new ones. As the returns to skills increase, cities help people get smarter.

This is actually a very old argument, dating back to Jane Jacobs (1970) and Alfred Marshall (1918). Glaeser brings it to life with some terrific examples of ‘urban ideas chains’ – such as the birth of Detroit’s auto industry from shipbuilding (engines) and carriage works (wheels and bodies), and the growth of financial services in NYC.

2) Technology is making cities more important, not less. Rather than killing distance, social media and the internet are producing more immersive, interactive urban environments. Again, plenty of evidence (Bill Mitchell, Castells) says that online and offline are complements, not substitutes. Glaeser rightly plugs this into the development of smart cities and the internet of things. Adam Greenfield’s incoming book will tie a lot of this together.

3) We need to build cities up, not out. Glaeser thinks Jane Jacobs was right about cities, but wrong about neighbourhoods. Long term, planning controls in urban cores tend to price poorer people out of the city. Similarly, high density cities tend to be greener, but if they restrict space, people relocate to lower-density, car-dependent communities. The answer is to allow denser development and more high-rises. 

4) In the West, urbanisation is basically done. The cities of the future are happening elsewhere. 50% of the planet now lives in cities – but the biggest urban transformations are happening in South and East Asia. This is also where the need for sustainable urban development is highest. LSE’s green cities project for UNEP echoes much of this.

5) Cities are good for poor people. But we shouldn’t save failing cities. Agglomeration economies benefit everyone. Like Stewart Brand, Glaeser sees slums as hives of enterprise – but where public infrastructure and planning has failed. Glaeser also argues that in declining cities, policy should focus making the population more skilled and mobile – rather than improving decaying urban environments. 

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A few reflections. First, is there anything bad about cities? At LSE, Glaeser suggested diminishing returns don’t really matter. I’m not so sure. Above is a classic urban economics ‘net wage’ curve. Up to point B, agglomeration effects rise with city size. Diseconomies like congestion and pollution then start to kick in. At point C, in theory, everyone leaves. In practice, this doesn’t happen – but plenty of real world cities are probably between the two (Bangkok, Lagos, LA?).

Second, Glaeser’s prescription for struggling cities might be internally robust, but in the real world it’s a very hard sell – as he found out when encouraging the US Government to move people out of New Orleans post-Katrina. Glaeser’s right that declining places can’t be preserved forever. But as I’ve argued, it’s the job of elected city leaders to make these choices – not national government. 

Which brings me to devolution. Glaeser was surprisingly lukewarm on this. He argued that when central government is weak (e.g. in a failing state), then devolution is essential. But only central government can handle redistribution, or economies of scale in service provision. This chimes with my reading of the literature. Devolution doesn’t translate directly into economic growth – although it helps indirectly, by allowing city leaders more flexibility and room to innovate. As the Coalition pushes localism ever further, Ministers should keep these caveats in mind.

How did London get away with it?

A lot of people predicted London would be hit hard during the recession. In fact, London did better than the rest of the UK. Why?

Henry Overman, Director of SERC, delivered the answer at the first LSE Works lecture last night (with some help from me on numbers, trends and jokes). In case you couldn’t make it, here’s a post on LSE’s Public Policy blog which gives the main story.

LSE should be putting up a podcast in the next couple of weeks. Watch out for that here. Meanwhile, the next event in the series is CEP Director John Van Reenen, on ‘Where is Future Growth Going to Come From?’ That’s on 17 February.

In March we have both Lord Stern (on the low carbon economy) and Bruce Katz from Brookings Metro Program (on the ‘next urban economy’, some joint work with me and colleagues at LSE Cities).

Personal purdah

I’ve been working away on PhD stuff for a couple of weeks, preparing for conferences, and now I’m taking a few more weeks off.

Why? Well, the Civil Service Code‘s Election Guidance states that during campaigns, ‘the basic principle for civil servants is not to undertake any activity which could call into question their political impartiality or could give rise to the criticism that public resources are being used for Party political purposes. This principle also applies to non-civil servants working in Departments.’

I’m not a civil servant, but as someone working in CLG I clearly fall into the second category. My blogging isn’t overtly political, but I do often talk about a) Government policy and b) the parties’ stances. Talking to CLG colleagues, the precautionary principle feels the right way forward.

Appropriately, the Guidance now contains several paragraphs on social media. Ministerial and departmental blogging is out during purdah, as is updating Facebook and Bebo (!?) profiles. Factual use of Twitter, however, can proceed as normal.

See you all next month!