How Gentrification Exacerbates Poverty
Gentrification can be described as the process whereby the character or demographic of a neighborhood is altered, typically through an influx of wealthier, more affluent individuals or businesses. This typically involves some sort of transformation of a location, through altering the infrastructure or amenities of the area. Whilst the development is commonly perceived as a positive activity, there are often disregarded spillover effects on the previous residents of the area, frequently low-income groups. More often than not, gentrification causes the displacement of poorer communities, thus generating wide inequality gaps and exacerbating poverty.
Some argue that there are positive effects originating from gentrification. For example, as a more affluent demographic begins to infiltrate an area, crime rates tend to decrease, and homeowners can benefit from higher property values. As the increasingly wealthy move to an area, consumption will also typically increase, which benefits local businesses and generates additional job opportunities. Investment increases, due to increased construction of modern homes and large boulevards. Rapid development may occur as a result of increased investment, generating success for any given area, which is typically construed as a net positive for society. Others may argue that this is not the case.
Gentrification in Developing Nations
Rapid development is highly sought after in any developing country, due to the exponential benefits to be reaped. Investment in capital and infrastructure is a major accelerator to development, typically leading to higher levels of GDP growth. However, the benefits of growth are not reaped equally, and rapid development can often be an opportunity for income and wealth inequality.
In developing nations, where absolute poverty is already a prevalent issue, high levels of inequality and decreasing social mobility can act as a major barrier to poverty reduction. The displacement caused by gentrification can affect an individual’s access to basic necessities such as healthy food, education and health care. For those living on less than a dollar a day, gaining access to these amenities is more important than ever in poverty reduction efforts.
Impacts of Gentrification: Mozambique and Brazil
Mozambique is a nation affected by a type of social polarization or rather a rich-poor divide. This is fortified by the dual socio-spatial structure of some of its regions — for example, Maputo, which is sometimes referred to as a segregated city. This originated in the colonial period in the 16th century, when the colonialists and the colonized were segregated, creating a harsh divide between society.
Socio-spatial patterning in divided areas may sometimes mean that amenities of a city are located at the center, typically surrounding more affluent areas and excluding those with low or no income. This results in the creation of densely concentrated areas of poverty. This social stratification increases the divides between different socioeconomic groups. Restricted opportunities and unbalanced wealth, compounded with reduced social mobility, create a cycle of intergenerational poverty.
Brazil is another area that has been impacted by gentrification. A type of area known as a ‘Favela,’ which translates to ‘slum’. This area is often found in the outskirts of Brazilian cities, more prominently in Rio. Favelas are known for their high-density, compact organization, but can sometimes be described as less than liveable, with conditions in these areas sometimes being dysfunctional and destitute. In this scenario, the increasing popularity of locations such as Rio has meant that many have suffered from displacement, being confronted with rent increases and forced evictions to higher-risk locations.
As a result, many previous residents may find themselves relocated to the outskirts of the city, suffering from worse conditions and less access to basic necessities. Once again, this exacerbates poverty for those already on low incomes, creating a cycle of intergenerational inequality.
Policy as the Solution
Policy is the key to mitigating the negative consequences of gentrification. The main frameworks that could be implemented include managing rent affordability, preventing tenant displacement and strengthening participation from residents in general society. Gentrification can be a net positive when taking place under the correct conditions — that is, while ensuring that society’s most vulnerable are protected. To prevent the creation of wide inequality gaps, policy should aim to ensure economic equality of all residents, thus ensuring that low-income residents do not suffer and ultimately slip into poverty.
– Hannah Bugeja
Photo: Flickr