Tag Archives: economics

What’s a city without shops?

The words kauppa (shop, commerce, market) and kaupunki (town, city) are of course related. Towns grew up around commerce. Then they took shape, at least in this part of Europe, very much around their shops, in Finland usually built into the stone foundations of a building, hence known affectionately as kivijalkakauppa (stone-footed shop [we invented that, by the way, hee hee]).

So now they’re in trouble, according to Helsingin Sanomat. And you’d exepct them to be. Not just because of the recession or, as so may writers and decision makers seem to make us want to believe, because we “vote with our feet/wallet” and buy cheaper elsewhere or online. Actually, they’re going because it’s so unbelievably difficult to compete against the darling of the Helsinki decision makers: BIG.

Shopping centres/malls tend to prefer to give “representation” to big brand names rather than support small traders, even if they do make a profit. (Which is an odd way of expressing it, since the word “representation” in connection with urban government used to have something to do with democracy, as in people electing a few well-informed individuals to represent them to the rest. So it goes in our topsy-turvy political world.)

Then there’s the other aspect of this thing. That you (er, the city) help build enornmous amounts of floorspace like in Kamppi, where only the big chains will be able to operate (actually, you probably stitch up a deal before hand, working together, after all, with the “stakeholders”), and you put it, for good measure, where a sizeable proportion of the public HAS to walk past (twice?) every day – the bus station. (“Convenience store” thus defined from the point of view of the commuter, the lynchpin, one supposes, of the innovation economy and who thus has to be managed with care, i.e. offered services that make work-ife easy.)

And if you forget something you were going to get from here – or if you aren’t actually a commuter after all – you might be able to get it somewhere like here. This particular example of shameful greater Helsinki retail architecture is from Mankkaa.

Of course, you can just choose to love the places that, for a short time at least, were “Finland’s/Europe’s/the world’s” largest shopping centre (Itäkeskus, below).

Which wouldn’t be a problem (maybe) for cities if it weren’t for the impact on the street. Hmm, on which note, maybe urban planners and designers should just get rid of the street altogether. As cars recede into history (as they surely won’t. Ed.) and as people retreat into anxious privacy anyway, maybe cities can grow to look like something totally different from what we’ve got used to living in and loving over the last 100 to 200 years.

Funny thing though. In Helsinki, flats located in the old fashioned urban street and particularly the street near the shops, have the biggest price tags – decade after decade (as published in this pdf by City of Helsinki Urban Facts).

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Helsinki runs out of space for its children…

Protagonist: When I was a kid the world was like a balloon. I was getting bigger but then so was everything else. Each time we moved house, we got more space. When I started paying attention to things around me, I saw that everything was bigger and better than it had ever been before. The ferries to Stockholm got bigger, lorries and buses got bigger, Christmas dinners, ice cream helpings, motorway service stations and my school bag got bigger by the year. Then I discovered that the economy also always got bigger, which was good because we could get more of these bigger things and the poor would have education and welfare and good stuff so they wouldn’t have to stay poor.

Narrator: Don’t stop. You’re on a roll.

P: OK. Things didn’t just get bigger, they got better. Like this playground, which was always good, got fancier every few years.

N: I know the one, next to Agricola Church.

P: Yup. And by the way, they were turning the playing field into an ice rink yesterday and today – fantastic, it’s cold enough that even those places without underground cooling can get and skate – for free. In my day there was no fence around it. And the hoses were probably smaller. Still, probably nicer for the guys doing the work.

Anyway, I think the world is now becoming smaller – like, there’s been loads of wealth creation everywhere but there’s this constant need to cut public services – even from before the recession. What’s driving me crazy right now is that Helsinki’s politics seems to be giving plenty of space for what rich people want while its chipping away at the stuff that helps everyone live good lives. So anyway, there’s good news and bad. The good news is that Jack Little Willow’s stupid list of service cuts has been buried.

N: Huh?

P: Littlewillow (Jussi Pajunen, the mayor you know, if you think of ‘paju’ as willow and ‘nen’ as the diminutive…)

N: In a name it means that a place, as in, the willowed place. Stick to the point. What happened?

P: I’ve tried to find out exactly what’s going on here, but it’s kind of hard to track down exactly the right information and documents online. And I don’t want to rely on Hesari but they have given the most succinct version yet of what happened. THE LIST IS BURIED. Yippee!!

N: The library closures and other measures that were supposed to save the city from certain ruin?

P: Yes, the 80 libraries, day care centres, health centres, youth clubs etc. Anyway, that list that raised so many eybrows not to mention tempers, has been shredded and the City Board is going to have to think again about where to make the savings it needs. In the mean time, the Left Alliance-sponsored website keeps folks up to date, and suggests action to influence the next meeting.

N: Of the City Board?

P: Well, this is confusing. The list was drawn up, it seems, by a committee appointed to do just that, the Palveluverkkotyoryhma. But this group was dismantled two days ago, at least according to the City’s website. It doesn’t seem to give you the results of their 6 months work or tell you any more about the list, the financial situation that precipitated it or the reason why, when the City Board meets again in January, it should have anything else to offer.

Kaupunginhallituksen 22.6.2009 asettama palveluverkkojen kehittämisen valmistelua ohjaava ja seuraava työryhmä päätti maanantaina 14.12.2009 työnsä. [The working group set up 22.6.09 to direct and monitor the progressing of development of service networks (yes, that’s pretty much what it says) finished its work on Monday]

… toteaa keskusteluissaan painottaneensa tilojen yhteiskäytön ja uudelleenkäytön mahdollisuuksia, alueellisen tarkastelun tarpeellisuutta sekä asukkaiden ja asiantuntijalautakuntien näkemyksien tärkeyttä. [… it has emphasised shared use and reuse of facilities, the need for regional assessment and the importance of residents’ and expert panels’ perspectives]

N: Hang on a minute, what is the monitoring or whatever of progressing of developing networks?

P: You asking me?

N: And the bad news?

P: Generally speaking that progress has been reversed, the air is going out of the balloon. Well, not quite, it’s an uneven process.  The list includes only addresses in parts of town that rely on public services, i.e. where people don’t have the resources to go private. And secondly, as an addendum (according to that website) it notes that space standards per child in public day care are reduced from 9m2 to 8m2.

From the Peliseis website, here’s the list.

Aino Acktén huvila
Alppilan yläaste
Apollon lukio
Drumsö Klubblokal
Eläintarhan huvila
Ensiopetusryhmä Kaarelan raitti 1
Etu-Töölön vanhusten asuintalon yht.tilat
Fysioterapia, Meripihkatie 1
Haagan peruskoulu
Haagan peruskoulu sivukoulu 2
Harakan saari, taiteilijatyötilat
Hietalahden venesataman huoltotilat
Hiidenkiven peruskoulu, sivukoulu 1
Itäkeskuksen terveysasema
Kampin vanhusten asuintalon yht.tilat
Kannelmäen peruskoulu sivukoulu 1
Kivelän sairaala rakennus 9
Koivusaaren veneilyn tukikohta
Korttelitupa Kotipirtti
Koskelan sairaala, 2 toipilasosastoa
Koskelan sairaala, rakennus A
Koskelan sairaala, rakennus G
Koskelan sairaalan hammashoitola
Koskelan terveysasema
Kotinummen ala-aste
Käpylän peruskoulu
Laajasalon ala-aste
Leikkipuisto Kiikku
Leikkipuisto Laurinniitty
Leikkipuisto Savela
Leikkipuisto vallila
Länsi-Helsingin lukio
Maatullin ala-aste
Malmin avokuntoutus
Malmin virkistyskeskus
Malminkartanon ala-aste
Malminkartanon kirjasto
Mellunmäen hammashoitola
Munkkiniemen nuorisotalo
Myllypuron hammashoitola
Nordsjö-Rastis
Nuorisotalo, Harju
Nuorisotalo, Kumpula
Nurkkatien ala-aste
Paloheinän terveysasema
Pelimannin ala-aste
Pienryhmäkoti (Kumpula)
Pitäjänmäen kirjasto
Pohjoinen omahoidon toimintakeskus
Pohjois-Haagan vanhusten asuintalon yht.tilat
Psykiatrinen poliklinikka, Malmi
Psykiatrinen poliklinikka, Oulunkylä
Psykiatrinen päiväsairaala, Kulosaari
Puistolan ala-aste
Puistolan terveysasema
Pukinmäen kirjasto
Päiväkoti Satama
Päiväkotiryhmä Köydenpunojankatu
Päivätoiminta Kaisla
Rintinpolun hammashoitola
Roihuvuoren ala-aste
Roihuvuoren kirjasto
Ruoholahden kuntotalo
Ruukinrannan (Laajalahden) venesatama
Ryhmäperhepäiväkoti Loki
Ryhmäperhepäiväkoti Venho
varakoti Saattajapalvelu,
Työvoiman palvelukeskus (Sörnäinen)
Siilitien peruskoulu
Siltamäen ala-aste
Soinisen koulu
Taidekeskus (Sörnäinen)
Talin golfkentän rakennukset
Tapulikaupungin kirjasto
Työvoiman palvelukeskus
Töyrynummen ala-aste
Vallilan kirjasto
Vermon raviradan maa-alue
Vuosaaren vanhusten asuintalon yht.tilat
Yhtenäiskoulun lukio

Päiväkotien tilamitoitus muutetaan nykyisestä 9 m2/lapsi pienemmäksi eli 8 m2/lapsi.

(Lisäksi listan tekstissä esitetään lopetettavaksi myöhemmin vielä tarkemmin määrittelemättömät 3 terveysasemaa ja 5 hammashoitolaa lisää.)

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Cheaper Food and the power of being bigger

Today the afternoon papers are all about cheapening food, even the dailies are surveying where a shopping basket (as if!) is cheapest, in which giga, mega, jumbo or biggie, in K or in S. (K=Kesko, S=S-ryhmä – if you persevere with this blog you’ll know more soon enough). Here, obviously K holds the territory.Ruoholahti shop sign

Whatever the long-term effects of the reduction in value added tax which is bringing this about, the effects may well become visible in towns through impacts on food retail and on restaurants. Their fate has been a visible aspect of the public debate on the new budget, with more than one commentator complaining that the largely monopolised food and restaurant businesses in this country will see to it that the current generation of kids will think that a restaurant is that place where you go and eat pizza and kebab (both of them soggy). I can barely believe it, but I don’t have a picture to show you of this striking feature of all Finnish towns.

Meanwhile, here are the main points as presented in The Usual (though possibly not unless you subscribe – here‘s a related non-sub link).

Ruoan arvonlisävero laskee 1. lokakuuta 17:stä 12 prosenttiin. (VAT on food to drop from 1 October from 17 to 12 percent)

Ensi heinäkuussa ruoan arvonlisävero nousee 12:sta 13 prosenttiin. Samalla kaikki muutkin arvonlisäverot nousevat yhden prosenttiyksikön ja ravintolaruoan arvonlisävero laskee 22:sta 13 prosenttiin. (Next July VAT on food to rise from 12 to 13 per cent, VAT on restaurants to be reduced from 22 to 13 per cent)

Makeisvero palautetaan käyttöön heinäkuussa 2010. Veron määrää ei vielä tiedetä. Makeisvero poistui vuonna 1999. (Tax on confectionary to be reinstated July 2010. Its size unknown as yet. It was removed in 1999.)

Myös virvoitusjuomavero nousee heinäkuussa 2010. Korotuksen suuruudesta ei ole vielä tietoa. (Tax on soft drinks also to rise July 2010.)

The predictably convoluted repercussions in actual shops are laid out in the English-language version of  the usual, here.

Lidl (which should really be called Bigl) has apparenlty taken the opportunity afforded to giants in the retail world to reduce its prices ahead of the actual tax cut.

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A certain scepticism

I have several themes to think about today, and here I’m going to try to stick to just two. I hope it will still make sense. If you’re not interested in my thinking by writing, please scroll down to the first picture and take it from there. That will be about Helsinki rather than yours truly.

Theme 1: scepticism, cynicism and the possibility of pink being blue, of “good” actually being “bad”. In an age of spin and image-mongering, this theme is likely to crop up again and again in relation to the built environment. Today it’s particularly in my face since I’ve had a couple of people tell me that I shouldn’t be so surprised that things are so bad in the world. Just one example, while I am puzzled by the way that Finns don’t seem at all interested in campaigning against their monopolising food retailers, despite both chatter and media coverage of the shortcomings of the food retail system, the locals (indegenes or “kanta-asukkaat”) seem to find no mystery at all in this. “Of course”, they say, “this is how the world is. How naive of you to think otherwise”, I hear the unspoken reprimand. But then my thoughts are drawn to the somewhat surprising contrast of the usually so complacent Brits who have been rising against their tescopolies and sainsburies for decades now, up and down the country. But though Finns I talk to agree with me that urban life is blighted by these monopolies, they will not engage in a discussion about why things are as they are, beyond observing that there’s always been monopolies and that corporatism (also glossed as old-boys networks) is alive and well in this country.

Why is this part of theme 1? Because it’s about asking whose version of reality gets transformed into material things. (Consensus, Finnish readers may not realise, is never neutral. Fortunately, here endeth the lesson.)

Theme 2: Who are cities for? Who is Helsinki for? This, I hope, is self-explanatory. Just in case it’s not, this writer sees more than enough worrying signs even in consensus-loving Finland’s cuddly little capital city, of the city being built as if good things came into the world through the actions of those at the top of the social ladder whilst bad things actually originate at the bottom.

(Does this link to theme 1: who is most likely to suspect the veracity and usefulness of this story? Those at the top? At the bottom? Finns who grew up with the sacredness of consensus?)

Whilst there’s no doubt that the beautiful buildings of Töölö or Eira (that I waxed lyrical about earlier) were built for those who could pay, their construction was accompanied by the arrival of other, more public spirited projects, both before and after Finnish independence in 1917. The patriarchal patronising of the poor wasn’t pretty then either, but its legacy, well, it is. OK, this workers’ housing is from Tampere, but in intent (charity of sorts) and aesthetic (the care lavished on its design and execution) in its context, it is definitely “good” and, to make the point, in no way “anti-social”.

Tampere wood building

By the turn of the millennium, a rather narrow definition of economics and the economy had ended up equating it with business in ways that benefitted those with money and power, and somehow urban decision making ended up reinforcing the power of those with money and the freedom to travel. The financial classes (let that be my shorthand for now, hope you’ll bear with it) had managed to get the idea rooted in decision making of all kinds that “the market” knows best yet must be propped up at all cost with poor people’s taxes, if necessary. Never mind that in 2008 their innovations with poor people’s money turned out to be disastrous for everyone, the physical legacy of this orthodoxy is with us around the world, from smaller towns no longer able to “attract” inward investment to mega-cities where poverty and super-wealth lay themselves out in a jigsaw of enclaves with more or less sharp boundaries between them.

Sorry, this is getting a bit academic. I hope to make it clear somehow, maybe in later posts. The point is, that Helsinki is not immune to these trends, and its decision makers and many of its people have apparently come to take it for granted that polarisation in income and thus in society is inevitable, and this will be visible in the townscape, however regrettable that is. The new buildings in Eiran Ranta, all for top-of-the-range private buyers and with a definite exclusive atmosphere complete with underground car-parking and a total absence of services or signs of anything as vulgar as economic activity (ironic, no?), were built within this new paradigm. A very rough straw-poll suggests that many are unhappy with them, they symbolise “new” wealth and a brashness that does not, so some say, suit Finns. But these are new times, needing new solutions. And by international comparisons, this is hardly radical. It may obscure the views of some previously privileged folks (well, to live in Eira they must still be pretty lucky) and gives little indication of any sense of being integrated into the rest of the neighbourhood, but, hey, it’s just another luxury development. Shame it’s no prettier, I suppose.

Eiran Ranta

Meanwhile Jätkäsaari is one of the many harbour areas in the city left to developers now that the new harbour in Vuosaari is operational. In late August we heard that the construction of 250 flats for the use of 400 students had been approved by the city, and were shown a series of images of the dense, urban fabric to be built. The dominant national rag, HS, published an article too, with a couple of images, and sparked animated online debate about whether or not the plans were really “high rise” (there was some wrangling over definitions and lack of clarity about whether at 8 stories high, the buildings qualify). Elsewhere I came across praise for the city for actually giving over the waterside location to students and not merely to the traditional super-rich whose habit of hogging water-side developments has wrought so much ugliness not just in Eiran Ranta but also in London (which I know well enough to comment) and around the world. And not that I’m suggesting a competition for the ugliest buildings (plenty of august institutions are keeping up that particular tradition, all-too easily catered to with remarkably ugly waterside-developments in London).

And, to make my day even more confusing, I’m now aware that the city (Helsinki, or someone) has gone some way towards reassuring us more critical readers that not only is the new development to house real people living in real homes reproducing real society (as opposed to developing ever more fiendish schemes to make money grow out of nothing … er, other people’s effort, more like) that is STUDENTS, but it is concerned that the area should have REAL SHOPS TOO. Built into the residential blocks, that is, not down the road in a mall. We have been made aware.

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