Neoliberalism and the City: Or the Failure of Market Fundamentalism

The global financial crisis of 2008 called into question the previous 30 years of economic policy in the major western economies, especially those committed to the neoliberal project. The crisis has shattered that paradigm and opened up an opportunity for progressive debates and policies to emerge, not least in the urban arena, since it is in the city that the failures of market fundamentalism are most obvious and the case for planning, in the broad sense, most persuasive. This paper attempts to support that claim and provoke useful debate on why cities are at the forefront of any attempt to construct a progressive policy agenda in the post-GFC world. The paper is divided into several sections. First, the defining characteristics of neoliberalism are noted. Second, the mainstream or orthodox economic theories that have been used to justify neoliberal policies – and to rule out alternatives – are outlined and critiqued. Finally, the implications are drawn for understanding the nature of the urban process and the prospects for progressive improvements.