Metropolis 2011 Acores

How blessed are Diverse Inner Cities?

The Hague Case Study

Surrendra Santokhi

Outline Presentation

• Policy Vision: Netherlands & City of The Hague• The Hague: Social-Economic Profile• Two Major Projects• Policy Results• Conclusion:

a. Does Policy Work?

b. Theoretical Insight

c. Understanding Immigrant Entrepreneurship

Dutch Policy (1)

• Mass Migration: Sixties & Seventies

• Motive: the Need of Low Skilled Labour

• Policy Approach: Migrants will Return to their Homelands

• Investments: Labour Protection, Preserving Own Language, return migration

• The Reality Changed

Dutch Policy (2)

• Temporary Workers became Permanent Settlers

• Netherlands: an Immigration Country• 1,5 Million Immigrants out of 16 Million• 70% live in the Randstad: 4 Major Cities Area• Ethnic Concentrated Areas• Cheap Housing Stock• Active Social Networks

The Hague: City Profile

• 500,000 residents, 50% foreign born

• Ethnic Diversity: > 130 Nationalities

• Surinamese 10% (former Dutch Colony); Indonesians

• Turks, Moroccans, Mediterranean's, Chinese

• Diverse Inner City: > 90% Immigrant Districts: Transvaal, Painters District.

• The Suburbs are following: 30% Immigrants

Percentage Hagenaars van niet-Nederlandse afkomst per buurt in 2006

Bron: DHIC/Gemeente Den Haag/Dienst Publiekszaken

< 15,0

15,0 < 30,0

30,0 < 45,0

45,0 < 60,0

>= 60,0

NVT

Onder drempelwaarde

Major Cities Policy Programme: mid 1990’s

• Major Cities Netherlands in Decline: Challenges

• High Unemployment

• Low Education

• High Crime Rates

• Social Cohesion under Pressure

• Bad Social Image of Ethnic Diverse Districts

The Hague in Action: 1995-2010

• National Financial Support

• Eradicate Social-Economic Divide

• Vision: Integrated Approach

• Combining Social, Economic and Infrastructural Measures

• Focus: Inner City, Ethnic Concentrated Areas

The Hague Economic Investments

Two Major Projects:

1. Business Start-Ups: Jobless Residents, Aspirant Business Starters

2. Economic Branding of Ethnic Districts:

a. Development China Town

b. Development of Avenue Culinaire

The Hague Business Start-Ups:Policy Measures

1. Stabij Foundation: From Intake to Start-up2. Policy Contents:a. Orientation on Marketsb. Learning Business Skills (Government Subsidy)c. Making Business Plan & Bookkeepingd. Business Loans (Up to € 160.000,00)e. Financial Fund Business Startersf. One Year Support After Business Start-Upg. Less Rules for Entrepreneurs

The Hague Business Start-Ups:Policy Results?

• 5,100 Business Starters Annually (was 1200)

• Number of Immigrant Entrepreneurs Tripled past 10 years

• 75-80% after 5 Years Still Active (was 50%)

• Failure Rate First Year 6% (was 17-23%)

• Linear Business Growth: Diverse Inner City

• Correlation: Number Ethnic Population, Level Immigrant Entrepreneurs

The Hague Economic Investments: Ethnic Branding Districts

1. Development China Town/Avenue Culinaire: vision

a. Fighting Unemployment, Crimes, Pollution

b. Fighting Negative Social Image Diverse Districts

c. Active Role Government

d. Embeddedness in Generic Tourist Policy

e. Consensus Chinese Community

f. Subproject: Inner City Tours, Opening the Inner City

The Hague Economic Investments: Policy Results

a. Number of Chinese Businesses Doubled b. China Town: Part of the Central Shopping Areac. Economic Revival Adjacent Area: 60% more

Businessesd. Better Understanding Chinese Communitye. Growing Number Shoppers and Guided Toursf. Increase of Expensesg. 60% visitors: I’ll be back!

Conclusions (1)

• Government Policy Successful on the Level of Projects.

• In General the Increase of Immigrant Entrepreneurship is due to the Efforts of Immigrants

• Factors:1. Business Ambition2. Own Boss3. Blocked Social Mobility4. Active Social Network: Support and Clientele

Conclusions (2)

• Policy assessed from two sets of arguments.

1. Welfare-Economic Argument:a. Government on a Distance, Judicial

Equality, no Target Group Policy2. Social-Structure Argument:b. Active Government, Social-economic

Equality, Target Group Policy

Conclusions (3)Welfare-Economic Argument seems more

correct.

The Market did it. The Project Results are

to Small to Explain the Tremendous

Growth of Immigrant Entrepreneurs in

Ethnic Districts.

The Diverse Inner City is Blessed!

Theoretical Point of View:Market potentials

Local-ethnic market:

• Low threshold markets

• Etnic-cultural resources:

• Co-ethnic clientele;

• Ethnic management; employing family members;

• Ethnic territory,

• Saturated markets: dead end strategies.

Local-non-ethnic

• Midlemen minority:

• Low-value-chain products;

• Poor White areas; native clientele

• Harsh competition;

• Racism.

Non-local-ethnic

• Top quality ethnic-products;

• Unlimited areas;

• Clientele: cultural counterpart;

• Jewellers;

• Bridel shops;

Non-local-non-ethnicmarket

• Mainstream market; mainstreamproducts• Geographically open market;• High-value-Chain goods;• High percentage native costumers;• Indian restaurants serving native

costumers;• Non-ethnic areas;• Se Gerard Street Toronto.

The case of The HagueSector in % in The Hague 1989 1990 1995 2000 2005 Nationwide 2005

Agriculture/Forestry/Fishing 6 7 6 10 7 1

Industry 2 2 3 2 4 5

Construction 1 2 3 5 7 5

Car trade/repairs 2 2 2 3

Wholesale 12 12 14 11 10 13

Retail trade 24 23 22 16 16 14

Catering 30 28 20 15 11 17

Transport 3 3 3 2 4 4

Leasing 3 3 3

Financial services 1 2 2 26 1 1

Other business services 7 7 11

Consultancies 7 8

Facilities services 15 10

Personal services 9 10 10 9 7 7

General services 4 4

Corporate management 6 10

Other 0 0

Total 100 100 100 100 100 100

Transitions in markets (1)

• A minority of 22% serves only clients from their own ethnic group;

• 18% serve mainly or exclusively clients from outside their own ethnic group;

• 60% said they have clients from both within and outside their own ethnic group.

Transitions in markets (2)

• Thirty percent have manly clients from The Hague;

• 53% from the region, the Randstad area, the Netherlands or abroad;

• Seventeen percent of the immigrant entrepreneurs said that most of their clients are from their local neighbourhood.

Location, product differentiation, clientele

A. The establishment of a company in an ethnically concentrated area (local market, A1) or in a non-ethnically concentrated area (non-local market, A2).

B. Mainly ethnic items (ethnic product, B1) or non-ethnic items (mainstream-product, B2) are sold.

C. Businesses have a mainly ethnic clientele (ethnic/co-ethnic clientele, C1) or a mainly non-co-ethnic clientele (non-ethnic clientele, C2).

Mainstream markets in concentrated districts

• Specialized branches;

• High-value-chain products;

• Visitors from outside;

• No dead-end strategies

New potential markets

Ethnic

Product

B1

Non-ethnic

product/

mainstream

product

B2

Ethnic

Product

B1

Non-ethnic

product /

mainstream

product

B2

Non-local market

(the whole city,

region)

A1

open ethnic

market

=

selling ethnic-

products to

co-ethnic clientele

in non-local

market

(jewellers, India

bridal shops)

A1/B1/C1

mainstream

market

=

selling non-

ethnic products

to non-co-ethnic

clientele

(hotel owner)

A1/B2/C2

Middlemen

market

=

selling ethnic-

products to

non-co-ethnic

clientele in non-

local market

A1/B1/C2

niche market

=

selling mainstream

products to co-

ethnic clientele

(mortgages,

insurances)

A1/B2/C1

Local market

(ethnic

concentrated

area)

A2

ethnic (non-open)

market

=

selling ethnic

products to

(co)-ethnic

clientele

in local market

(small retailers,)

A2/B1/C1

A1+A2/B2/C2

Multicultural

tourism market

=

selling ethnic-

products to

non-ethnic

clientele in local

market

(Chinatown)

A1/B1/C2

A1+A2/B2/C1

(Co)-ethnic

clientele

C1

Non-ethnic

Clientele/

mainstream

clientele

C2

Non-ethnic

Clientele

/mainstream

clientele

C2

(Co)-ethnic

clientele

C1

M

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