Category Archives: Corporate control of development

Participatory democracy: right-to-vote, right to participatory development, and the right of government to prevent foreclosure

Right to vote in Hong Kong

Assuring democracy in countries which claim democratic governments is already difficult! What about countries which make no qualms about non-democratic systems of government? The current struggle in Hong Kong for voting rights in Hong Kong’s upcoming election is just that. Residents of Hong Kong are demanding that they have representative vote of their region’s interest in the new chief executive-governing leader- and have been ignored by the powerful government bodies of China and Hong Kong. (1) In response students in Hong Kong have taken to the streets and occupied them, initially called Occupy Central. This has expanded to the general public now called ‘the Umbrella Revolution or Movement’. Their intention is to gain support for their demands for some form of participatory democracy. This past weeks’ demonstrations witnesses this struggle and has garnered solidarity across the globe-from US to Germany, Australia to Belgium, UK to Canada. (2) In spite of such massive turnouts and show of people power protesters have met with violence from the police authority as well as anti-democratic thugs. The occupation of public space continues today with people camping on streets as Hong Kong demands public / human rights to determine their lives-participatory democracy. (3)

Right to equal participation in development in DC and Baltimore:participatory development

In the District of Columbia, public housing residents have been organizing and demanding that the city government and housing authority stop development which threatens their displacement and continue gentrification. OneDC, a local grassroots organization has led the momentum for resident-owned and -driven development for many years. Now they confront city officials to demand that they are part of all development plans which involve their community. (4) Such a demand, representation in decisions that affects your life, seems quite reasonable and certainly would be an assumption for those in power. But for these same individuals who make decisions for public housing residents, their exclusion of residents from planning seems to suggest that these rights should not be afforded to low-income and of-color communities. Such blatant discrimination in housing and community development and urban planning in the US is meeting greater challenge as evidenced by OneDC’s challenge to the powerful stakeholders’ deciding the faith of public housing residents in the ‘People’s Platform’. (4) They are demanding participatory development.

In Baltimore, RHA (Right to Housing Alliance) and residents have led the charge to assure HUD’s recent program to privatize public housing (RAD, Rental Assistance Demonstration) does not leave residents with no rights. While some have called for minimizing or removing private capital from this demonstration project, Baltimore has demanded that residents remain a direct party in the decision-making between management and tenants. (5,6) Even though everyone would expect such a right, HABC appears to feel that public housing residents should relinquish their rights to decision-making in their homes. Such discrimination by Baltimore’s city leaders, supported by neo-liberal policies and programs of the US continue to assure that those without power remain separated from and at the mercy of those with power. RHA has organized and rallied in support of more transparent decision-making and negotiation on contracts being formulated for private developers-demanding participatory development. (6, scroll down for full article by Cohen).

The development for community equity has not found a foothold in Baltimore as yet, but we have hope that participatory development will rise up in Baltimore. The recent project announced in Sharp Leadenhall could potentially lead to more gentrification or equity: dependent on resident’s organizing and assuring a place at the decision-making table with a Community Benefits Agreement in hand for negotiation. (7) Anything else would leave too much dependence on the developer to make a ‘good-faith’ effort to accomplish in regard benefit to existing community. In the past, these ‘good-faith’ efforts, whether in legalize or verbal, have amounted to nothing. This is evidenced by the current Hopkins/EBDI/Casey development in East Baltimore which continues to project moderate and market rate housing, more Hopkins buildings, a school to attract higher income residents, a hotel and a park intended to benefit new residents while affordable housing or permanent employment for local residents remain missing. East Baltimore residents may well heed West Baltimore’s lead in suing the state of Maryland for development of transit-Red Line train system- which excluded their participation in deciding on a route which will disrupt their community and cause harm. (8) All of these development projects continue to receive large government subsidies in the form of new market tax credits, state grants and loans, TIFs, and PILOTs. The city of Baltimore could easily assure that these government subsides make their way back into the pockets of residents by legislating affordable housing in each development is assured for 99 years, a living wage is paid by all new businesses which receive government subsidies, and mandating local/co-op business ownership in each development area. New York City recently legislated a realistic living wage mandate for development and businesses which receive more than $1 million in city subsidies. (9) The current wage of $7.25/hr required by law in the state of Maryland will do absolutely nothing to lift working class people out of poverty, if they benefit from employment in new or ongoing development projects-some ongoing development projects are exempt from recent local-hiring mandates exempting major developments that have benefitted unfairly from public subsidies such as the Hopkins project in East Baltimore. Until we revolutionalize the accepted unjust and neo-liberal policies and practices governing housing, community, and economic development in Maryland we will continue to grow the health and wealth disparity gap in Baltimore, already ranked in the top 10 (of 50 big cities) in regard income inequality. (10)

Government can prevent foreclosure

Across the US citizens affected by the foreclosure crisis-an outcome which was enabled by the banking industry and real estate groups- are demanding their rights through legal strategies. Several cities are challenging the courts to allow city governments to use eminent domain to take late or default mortgages and negotiate with residents for a more affordable rate. For example, New Jersey admits that this strategy may force banks to negotiate with owners for fear of their mortgages being taken by the city through eminent domain. (11) Richmond, California has already implemented eminent domain to seize mortgages greater than the value of homes with San Francisco pending a decision next week on similar strategies. The two cities are considering pooling resources and promoting a national movement toward taking underwater mortgages back from lenders and offering home owners a more affordable mortgage. (12) The use of eminent domain in this way forces lenders who participated in driving up the housing market through loans based on ghost collateral to re-negotiate in more just ways with those they offered credit. City governments willing to stand up for public rights welcome in a new era of democratic participation through public offices. Cities which continue to document foreclosure challenges, like Baltimore, would benefit from similar strategies for participatory democracy. (13)

participatory democracy

1. Live stream from Occupy Central / Umbrella Revolution in Hong Kong
2. Solidarity for Hong Kong across the world
3. Ongoing coverage from Hong Kong news sources
4.People’s Platform for an Equitable DC
5. Rental Assistance Demonstration Program
6. Right to Housing Alliance, RHA
7. Proposed mega-project in Sharp-Leadenhall get tentative support
8. W. Baltimore homeowners sue state to block Red Line
9. DeBlasio to raise living wage
10. Gentrification, inequality, and the paths toward housing equity.
11. New Jersey Mayor address foreclosure problems
12. San Francisco to decide on eminent domain to prevent foreclosures
13. 2007-2013 foreclosure data in Baltimore, MD

Corporate dollars can control development, health, and justice, until we organize and investigate

A victory against gentrification in NYC

Artwashing gentrification

Brooklyn: before and after gentrification

Walmart closes in the midst of union demands, judge rules unfair

Millionaire supreme court justices

Labor department targets Hopkins doctor for denying workers compensation…

…and the investigation that revealed the corruption

US Health System spends the most on health/capita and ranks last among eleven countries on measures of access, equity, quality, efficiency, and healthy lives

Holding Power Accountable: It’s a human rights issue

As privatization in development moves ahead in Baltimore, and government continues to pay tribute to private developers’ bottom line through public:private partnerships and tax subsides to the powerful, Baltimore and Maryland simply reflect a global trend-development which violates the human rights of individual citizens to participate and assure equitable benefit. Recent projects include the plan for privatization of public housing-subsidized by HUD- and transportation in the form of the Red Line in Baltimore and the Purple Line in the International Corridor (1, 2, 3, 4). Both are subsidized by federal and state dollars aimed at appeasing corporate power and threatening displacement and gentrification. This trend of public:private partnerships was highlighted at recent UN meetings on post-2015 sustainable development and the role of private power in drowning the voice of civil society, violating their human rights (4). They brought front and center the critical need to stop continued privatization and public:private partnerships which diminish democracy and minimize citizen participation, in its attempt to grow the profit of corporations.

In Maryland and nationally we continue to witness this same trend in non-sustainable development and public:private deals which drown out democracy and assure political and economic inequity. And just as the international civil sector demands greater accountability and transparency of public:private partnerships, tax subsidies, corporate profiteering, and lack of community participation, we demand the same. Specifically, the criteria offered to the UN to assure sustainable development post-2015 is an insightful framework for us to adapt in our call for public-lead development with a human rights-based ethic (5). Such criteria would investigate the powerful actors negotiating on their behalf while positing themselves as benefiting the local, national, and global economies and communities. The five criteria question:

– whether the private actor has a history or current status of serious allegations of abusing human rights or the environment, including in their cross-border activities;
– whether the private actor has a proven track record (or the potential to) deliver on sustainable development commitments emerging from the post-2015 process;
– whether the private actor has previous involvement in acts of corruption with government officials;
whether the private actor is fully transparent in its financial reporting and fully respecting existing tax responsibilities in all countries it operates, and not undermining sustainable development through tax avoidance;
– any conflicts of interest in order to eliminate potential private donors whose activities are antithetical or contradictory to the UN Charter, the Universal Declaration of Human Rights, and the SDG [sustainable development goals] framework (6).

Locally we can adapt similar criteria in discovering who’s at the table negotiating on their profit-making behalf and the extent to which public dollars subsidize unequal benefit for private developers-growing the health and wealth gap. The future of sustainable development requires an assurance that equitable partnerships exist going forward and previous corrupt corporate entities and their affiliates do not lead development or benefit disproportionately from public contracting or sub-contracting (7).

Baltimore can begin with an analysis of past developments to include amount of tax subsidies and ratio of benefit to developers and local communities, amount of benefit in the form of local hire, economic growth, local business ownership, live-able wages and benefits provided by new developments, affordable products for historic communities, affordable housing, presence of historic communities in revitalized areas, health of communities displaced and in the revitalized areas. An entity exists in Baltimore to conduct such an investigation, the Baltimore Development Corporation (BDC). BDC’s mission “is to make doing business in Baltimore, Maryland beneficial for the business community and the workforce so we can support continued economic growth, job creation and revitalization in Baltimore City”. In order to accomplish this mission they must evaluate the way development has occurred to assure future developments benefit all of Baltimore. We would like to see a report card. The departments of housing and community development, economic development, planning, transportation, health, parks and recreation can do similar assessments of impact of past and current development on their benchmarks. Such assessments would benefit from community participation.

Other ways to assure future development is participatory and respecting human rights include realistic community engagement at all levels of planning, implementing, and evaluating. Government funding for community leadership development and community organizing to ensure community leaders are informed and ready to participate would help to guarantee democratic participation. A city planning department with community organizers on staff working directly with neighborhood organizations to increase community engagement and social capital would begin to prepare residents for decision-making roles in current and future developments (8). If the city of Baltimore could do this in the 1960’s with some success, where is the political will to implement such community engagement practices in 2014?

Activism by citizens and community organizations remain key in assuring human rights is front and center of all development. Baltimore and Maryland is waking up to activism. Those still in by-stander activism mode can switch to engaged activism. We can vote elected officials out of office who maintain heads of departments who continue the same tried and true policies that support corporate welfare. We can publicly demand that such department heads who continue policies and practices which results in inequity in housing, economic, and community development, planning, health, transportation, public safety, parks and recreation, and education be placed on notice to show different outcomes in a specific period. We can be updated on these outcomes through annual report cards from these departments. We can call and email our public representatives each time we see the same patterns of development continue with inequitable outcomes.

Such opportunities for organized activism are upon us today. The Maryland Commission on Civil Rights offered a symposium last week on ‘Gentrification and Revitalization’. In regard an investigation of developer Johns Hopkins Medical Institutions’ expansion in East Baltimore over the past 60 years, HUD’s Baltimore office offered the audience direction in pursuing this. In a few weeks Baltimore’s Public Justice Center is hosting a discussion on residents’ demand for inclusion in housing policy and practices being administered through HABC and HUD’s Rental Assistance Demonstration (RAD) project-“Democratizing Development” (9, 10). Casa de Maryland continues to seek support to combat displacement of immigrant businesses and residents because of the expansion of the Purple Line in one of Maryland’s most diverse immigrant community (3). It’s Our Economy is hosting a wealth-building conference to address poverty in Baltimore in May (11). Johns Hopkins Hospital service workers will rally for a livable wage on May 10 after the hospital neglects to return to the negotiation table (12). The recent announcement by Baltimore Development Corporation and Housing Authority of Baltimore City inviting proposals for development of a portion of the Old Town neighborhood in East Baltimore offers us an opportunity to practice with the criteria listed above (13). Why? There exists an organized group of local community leaders and stakeholders who have been meeting, organizing residents, and drafting a community-informed master plan for almost 10 years for this area-Change-4-Real (14). They have done the hard work of building a democratic and community participatory model supporting equitable benefit through community-focused economic development. Whether they receive the contract for development of this area will speak volumes to the use of the above mentioned international criteria for sustainable development with human and civil rights agendas. Baltimore and Maryland must begin to hold public:private power accountable through participatory development that respects the dignity of every individual. Anything else is a violation of all our human rights.

1. Privatization of public housing
2. The power of public:private partnerships
3a. Corporate welfare
3b. The greed of power
4. Purple line in the International corridor
5. Post-2015 development criteria
6. Sustainable Development Goals
7. Private developers benefit from public subsidies
8. Baltimore Sun. December 15, 1968. Renewal with a difference
9. Rental Assistance Demonstration project
10. Democratizing Development. Public Justice Center May 6
11. It’s Our Economy
12. Hopkins workers rally for livable wage
fly_mem_201404_Hopkins_May10_Allies_FINAL (1)
13. City announces plan for Old Town development
14. Change-4-Real