The Process of State Intervention in the Urban Space Economy

Abstract

<p> This paper focuses on the process of state intervention in the urban space economy. The circulation of capital in and its effect on urban space provide the context for the analysis of the intervention process. Particular attention is paid to the circulation of property capital and urban finance capital which are directly involved in capital formation in urban space. The model of the state formulated by Claus Offe forms the basis for establishing the relationship between the function and internal operation of the state and the conditions arising from capital circulation. By linking the model of capitalist urbanism with the model of the capitalist state a framework was created for the analysis and evaluation of state action. The components of the framework are capital circulation, the logic of urban planning and mechanisms governing the internal operation of the state. Socialized management and collective production are intervention strategies analyzed within the framework, and are shown to be sources of contradiction and crisis.</p>