Immigrant Entrepreneurship and Urban Competitiveness2nd OECD World Forum on ‘Statistics, Knowledge and Policy’, Istanbul, Turkey, June 27-30, 2007

Jan RathUniversity of Amsterdam, Institute for Migration and Ethnic Studies (IMES)

http://users.fmg.uva.nl/jrath

Economic transformations Decline of agricultural and manufacturing industries Growth of service and knowledge industries Relocation of industries to low-wage countries International migration of both low-skilled and high skilled

people Economic and demographic processes are associated,

and: alter the opportunity structures shape and reshape forms of inclusion and exclusion add new dimensions to the already existing economic,

social and cultural diversities

Political challenges Economic prosperity and social cohesion--esp. position

of lower-class third-world immigrants--are matters of serious political concern

National and urban governments (in Europe) have developed a wide range of approaches fostering the incorporation of these immigrants in the host society

Many have embarked on increasingly tougher integration policy, placing increasing emphasis on native norms, values and behaviour, and disciplining the Other

Contestable issues Political focus has shifted from socio-economic to socio-

cultural issues The idea has taken root that:

assimilation--and spatial dispersion--is the only way the government is the only force capable of shaping

these complex social processes

But… At the same time, governments are reaching out to high-

skilled immigrant professionals—amongst other—to work in the cultural industries and to boost the urban economy

Cultural industries have become the motor of economic development, esp. in so-called creative cities

Their development is contingent--amongst other--on open social climate and exuberant urban diversity

City governments give priority to supporting cultural industries and invest large amounts of money in sports, culture and entertainment, hosting of hallmark events, architectural fireworks, and other flagship projects. This helps attract high-skilled professionals and international investors.

Contradiction Urban diversity is embraced as an economic resource…

but, oddly enough, urban ethno-cultural diversity is looked upon differently

Yet, it is obvious that ethno-cultural diversity holds great attraction for a broad public.

Immigrant entrepreneurs play a key role here.

Cultural diversity offers opportunities Rise of immigrant/ethnic entrepreneurship in particular

neighborhoods: local opportunity structure favorable for development of SMEs

Commodification of cultural diversity offers social and economic opportunities (entrepreneurship, neighborhood revitalization, tourism and leisure industry) – diversity dividend Food Music, entertainment Clothing Fun shopping Experiences -- Ghetto as tourist attraction

These are market-led developments

Cultural diversity offers opportunities A lasting development?

travel guides and Internet shopping guides locations of festivals and parades destinies of ‘city safaris’ embedded in place marketing programmes

Conditions The ‘right’ supply of ‘familiar exotica’ (‘cultural markers’,

neighborhoods as nodal point of ethnic social networks, varies per ethnic group)

Connected to larger urban tourism and entertainment industry (festivalization of urban space)

Favorable regulation (development of inter-ethnic growth coalition, accessibility, cleanliness, safety, civic boosterism)

Marketing – role of entrepreneurs and ‘critical infrastructure’

Risks and perverse effects Multiculturalism reduced to consumption of ‘sanitized

ethnic Other’ Gazing at the ethnic Other, enhancing ethnic stereotypes New differences and even conflicts within and between

ethnic groups (gentrification) Cultural diversity becomes dull and predictable Disruption of ‘natural’ economic-geographic processes

(fossilization of urban landscapes)

Conclusions Tourism and leisure are one of the fastest growing sectors of

the new service economy, providing opportunities to high and low-skilled immigrants of both genders

These industries, esp. the entrepreneurs, can form a powerful interface between local immigrant communities and the wider knowledge economy

The commodification of immigrants’ ethnocultural resources contributes to the making of the cosmopolitan city, and strengthens the social and economic integration of immigrants

Equally important, it enhances the city’s potential to attract domestic and international knowledge workers and business investors.

Further reading… Bodaar, A. & J. Rath (2005) ‘Cities, Diversity and Public

Space’, Metropolis World Bulletin, 5, pp. 3-5. Rath, J. (2005) ‘Feeding the Festive City. Immigrant

Entrepreneurs and Tourist Industry’, pp. 238-253 in E. Guild & J. van Selm (Eds.), International Migration and Security: Opportunities and Challenges. London and New York: Routledge.

Rath, J. (Ed.) (2007) Tourism, Ethnic Diversity and the City. London and New York: Routledge.

web http://users.fmg.uva.nl/jrath

e-mail j.c.rath@uva.nl