- Turning Creative Destruction into Creative Economy   click here to open paper content302 kb
by    Halim, Deddy | deddy@planologi-untar.or.id   click here to send an email to the auther(s) of this paper
Short Outline
Urban Space is a battle which is greater in Jakarta. The poor and the rich are claiming economic spaces one another. One occupies public spaces illegally while the other embraces law to remove them out. Social-Capitalism is the solution!
After the Asian crisis 1998, what can the urban poor expect from this country facing globalization? None! In the era of capitalism today when money has an absolute role in the name of “structural adjustment” regarding economic recovery programs, there is no space for the poor to get any parts offered: privatizations are taken by the rich, bank loans are given for the people with collaterals, and productions are imported since the local cost became higher. As for the consequences: unemployment increases to the level we never imagined (over 40 millions people), banking scandals arise and corruptions spread out all over the country.
The battle was begun when the rich with their money power apply “creative destruction” (Schumpeter, 1989) for their property business philosophy and ironically supported by the “urban founders”. For the poor, the only way to survive in the city is by approaching the crowd in public spaces which at the present day “owned” by the rich. In every new shopping malls that built over the past five years, there are also exist illegal stalls around. Both of them, the malls and the illegal stalls competes one another. The weapons of the mall are air conditioner, granite floors, elevators, and branded items that creating deluxe images while the illegal stalls are having negotiable price, cheap brands, free parking, and time-saving shopping for their own guns to win the war.
Along with the efforts to survive in Jakarta, slum areas are created, informal sectors increased and street vendors marked their territories in the public spaces. It is because the government, one of urban founders, does not provide access to the poor for proper economic space in strategic locations. Therefore, the slum areas operate automatically with their marginal capitalism concept, which is illegal “commodification” (Burke, 1996). This paper offers the model to stop the war because of money circulation and capital accumulation of the poor is very significant to be reconsidered.
Case of Jakarta
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