Urban regeneration: focus on “software”

Abstract

Urban regeneration is not only a matter of “hardware” or infrastructure; it is also a question of “software”, of defining the right operating rules to make cities functional and sustainable.
Modern society faces a lot of challenges and they are most visible at the level of a city. This is especially true for the economic ones. After WWII, industrial activities were moved out of the cities. In a second stage they were transferred to low cost countries.  This resulted in massive global trade flows that eventually translated into huge traffic jams in and around our cities. It must be noted that the cost price differences between regions are relatively small in comparison to the level of the final retail prices. This phenomenon resembles a butterfly effect: a relatively small variation in initial data translates into huge negative environmental and social effects.
To counter this, Europe needs lower taxes on labour and, in parallel, much higher taxes on transport and waste. This new fiscal framework will give a boost to the urban economies.  Indeed, technology is there to allow the reintegration of industrial activities into our cities: new production methods limit emissions and favour efficiency. Making labour less expensive  will help cities to become real service hubs. Cities will become more “inclusive”, because there will be employment opportunities for everyone. Cities will also become more “supportive”, because there will be a very broad range of affordable services on offer. Negative butterfly effect described in the previous paragraph could be replaced by a positive one. Availability of affordable services can give citizens an impulse to go for partial dematerialization. It will help them to adopt a lifestyle built around personal development rather than geared towards accumulation of goods. Citizens with sustainable lifestyles will help to make cities more sustainable and vice versa. Occurrence of stress-related diseases should diminish tremendously. Ambition of this paper is primarily to promote a vision. Research should validate the statements about the economic butterfly effects described in this paper.