City as a social space —
Social aspects of the emerging urban landscape in Colombo
By S. T. Hettige
Professor of Sociology,
University of Colombo

City as a site of human habitation has a long history. Its beginnings can be traced back to the medieval times and beyond, when cities accommodated religious, political, trading and feudal landed eliter dependent on the surplus extracted from a mass of rural producers of agricultural and other goods. In more recent times, colonialism and industrialization generated unprecedented economic surpluses that formed the material basis for the emergence and growth of colonial and industrial cities. By the time the colonial domination came to an end, there had already emerged an international system of production and exchange relations, now guided by multinational corporations, international institutions and national governments.

The above, overarching, international system of production and exchange relations facilitated a particular pattern of urban growth in different parts of the world. This is not to underestimate the role played by intra-national forces in shaping the patterns of urbanization in different countries to varying degrees. The key point that needs emphasis here is that cities did not evolve autonomously; their size, structure, composition, and even outward appearance were decisively shaped by their relative position within the international system. It is this fact which led Manuel Castells to adopt the phrase ‘dependent urbanization’ to describe the pattern of urban growth in much of the non-Western World.

Colonial domination, however did not produce identical patterns of urbanization in colonial territories for the simple reason that the relationship between the centre and periphery varied considerably depending on various circumstances. In this regard, the distinction between ‘settler’ and ‘non-settler’ colonies has been critical. In the settler colonies where those who invaded the territory settled down as in the case of Australia, North America and New Zealand, much of the economic surplus generated was reinvested in the captured territories themselves. This resulted in a pattern of urban growth which was quite different to the pattern that prevailed in the non-settler colonies like Sri Lanka from where the surplus extracted was constantly transferred to the colonial centre.

The division of labour that emerged between the colonial countries on the one hand and the colonial possessions on the other had a decisive impact on the patterns of urbanization on a global scale. While this division of labour reinforced a pattern of unequal development facilitated by unequal exchange, urban centres located along the continuum between the centre and periphery tended to be hierarchically ordered in terms of wealth, power and prestige. The urban centres of the colonies were often moddled on the colonial centre in terms of key symbols and signs. Street names, architecture of key buildings, major land marks like parks, health and educational institutions, clubs, etc. were often ‘copied’ from the centre. Yet, the colonial centre was the ultimate destination for many of the upwardly mobile children of the colonial elites who lived in the national Capitals of the colonies. This is understandable because it was the colonial centre which ranked the highest in terms of wealth, power and prestige. These colonial centres, later attracted many people from the colonies creating sizable ethnic minorities in the cities of Western countries. Social and cultural pressure associated with the process of decolonization accelerated by anticolonial movements also contributed to the exodus of the members of the westernized elite. Nationalization of productive assets owned by Western companies and the change of official languages, etc. diversely affected the life chances of some of the established elite groups. At the same time, the same policies favoured nationally oriented elites such as indigenous businessmen and swabhasha - educated literati:

Decolonization and Third World Urbanization
Decolonization did not produce identical changes throughout the newly independent world. The changes varied depending on the composition of the indigenous elite that came into power and the type of socio-economic policies adopted following decolonization. These cities that came into being during the colonial period were affected by these and other factors. The composition and the size of the population of these cities changed dramatically after independence when more and more people from the countryside found the way into these cities looking for income and employment opportunities. The impoverished migrants often illegally occupied public space including land belonging to public institutions. The resultant expansion of the squatter population became a major factor in municipal politics. These municipal wards which had a majority of disadvantaged people elected councillors representing their own interests. These representatives could then influence the management of local affairs including the regularization of squatter settlements and provision of public utilities.

In most cities in the ex-colonial world, there emerged a dual economy comprising a firm centered, formal economy and a pervasive informal sector. The two sectors did not evolve independently of each other. In fact, the structure of the urban economy, in particular, the highly unequal distribution of rewards within the formal sector, has been a major factor contributing to the expansion of the informal sector. This is clearly evident from the social structure of the disadvantaged urban settlements where the lower rung employees of the formal sector firms and institutions co-exist with informal sector activists, the former providing a ready market for the cheap goods and services supplied by the latter. It is also noteworthy that various domestic and other services needed by even higher income groups are also provided by informal sector activists. (ef. Hettige, 1990)

As mentioned earlier, the social structure and the economy of the city in the non-settler colonies was determined to a great extent by the position it held within the colonial network of production and exchange relations. These cities emerged to serve certain specific functions. The very fact that they were built largely as transit points facilitating export-import trade points to the fact that they were oriented towards the outside world and depended very much on external forces for their structure, identity, and outlook. The city provided an enclave for the emerging colonial elite, both local and expatriate. Being very much oriented toward the outside world, the latter adopted life-styles and consumption patterns which were more akin to those prevalent at the colonial centre. The export- import economy permitted the importation of goods and services needed to sustain the above life-styles and consumption patterns.

The city thus became the most important site for private consumption of an elitist nature. Elite schools, private nursing homes, racing tracks, cricket grounds, tennis courts, shopping centres, social clubs, public parks, exclusive residential areas, etc., became important aspects of the city landscape. On the other hand, lower rung workers of public and private institutions such as the harbour, Municipal Council, hospitals, public parks, warehouses, etc. and their families were pushed into slum and shanty neighbourhoods in the city. The consumption patterns of these workers were quite different. They consumed cheap goods and services available in their own neighbourhoods, supplied by informal sector activists such as pavement hawkers. Their low incomes did not permit them to purchase urban property in the open market, so they illegally occupied whatever open-space they could lay their hands on. Later on, when democratic politics allowed them to throw up their own representatives in the context of Municipal and national politics, the urban poor managed to capture urban space for both public and private consumption i.e., schools, medical centres, play grounds, public toilets, etc. in disadvantaged neighbourhoods. These, in turn attracted more and more migrants to the city exerting great pressure on public utilities. Overcrowding at public hospitals, in public transport, shanty neighbourhoods, schools, etc. has been the inevitable outcome.

As mentioned earlier, decolonization did not produce identical conditions in different ex- colonial countries. In some countries, decolonization resulted in a major shift in the composition of the political elite and the policies pursued. It is also important to note that political independence set in motion a process of democratization in both national and Municipal politics. These, in turn had a major impact on the urban landscape. In the next few pages, an attempt is made to outline the major changes that have taken place in the city of Colombo as a result of the changes in economic and social policies, democratization of politics, and the changing composition of the urban population.

Granting of a measure of self-rule to the country then referred to as Ceylon look place in the early 1930’s giving the emerging native political elite an opportunity to influence the process of policy making. However, it was only after political independence in 1948 that the policy-making became the prerogative of elected local leaders. Yet, the transfer of power did not lead to an immediate shift in the economic policy of the country. It is this situation which led many people to argue at the time that political independence amounted to a shift of power from the colonial government to a privileged; native elite. It is these sentiments that eventually culminated in a major political campaign to dislodge the westernized, privileged elite from political power in the early 1950’s’ The social forces that backed this campaign included hitherto marginalized groups such as native physicians, Buddhist clergy, swabhasha educated school teachers, peasants and workers. Following the election of the MEP - Government led by S. W. R. D. Bandaranaike, steps were taken to address the grievances of these less privileged groups and provide opportunities to young people belonging to these groups.

The above changes were accompanied by a change in economic policy as well. The new policy was aimed at strengthening the role of the state in the management and the development of the economy. This naturally contributed to an expansion of the state-sector at the expense of the private, corporate sector. This pattern by and large continued till 1977 when the free-market oriented, UNP regime elected in that year took policy measures to reverse the above trend.

The state-led development policies implemented from the late 1950’s to the mid 1970’s had a major impact on the urban landscape. Expansion of the state bureaucracy and public enterprises in almost all sectors of the economy increased public consumption in the country. Given the fact that the vast majority of the people continued to live in the countryside, the tendency on the part of successive governments was to take productive investments away from the Capital. Meanwhile, the protectionist policies, encouraged by balance of payment difficulties in the 1960’s and 70’s, curbed imports, in particular luxuries, leading to a contraction of the private, consumer market.

Nationalization of private enterprises including commercial plantations no doubt had a major impact on the income and consumption opportunities of the privileged urban elite. Many of their assets were transferred to newly established public corporations the management of which came under public officials who were recruited from a wider cross section of society largely on the basis of educational qualifications. During this period, public consumption expanded at the expense of private consumption. This naturally had an impact on the urban landscape. The buildings that came up were mostly state-funded and were intended to house government offices and head offices of state enterprises. Construction of public housing, though limited, was far more visible than the construction of residential units by private investors.

Import restrictions prevalent at the time limited the number of private vehicles on city streets, which were used, mostly by public passenger vehicles. This drastically reduced the possibility of traffic congestion in the city. Limited availability of imported consumer goods restricted retail business by private traders and this helped reduce the movement of consumers from rural to urban areas. Limited business opportunities in the city also restricted the number of potential businessmen who migrated to the city.

The circumstances outlined above no doubt shaped the social structure of the city. Expansion of the state bureaucracy and other state enterprises would have resulted in a substantial increase in public officials over the years. The same cannot be said of the business elite. This would have dampened urban property prices, as salaried public officials cannot be expected to engage in speculative buying of property. In the absence of a vibrant market economy that offers various incorning me-ea opportunities to disadvantaged groups, rural -urban migration also remained at a low rate.

The situation that prevailed in the city of Colombo until 1977 began to change rapidly thereafter. Urban landscape has been altered dramatically from the late 1970’s. Open economic policies perused after 1977 assigned certain unprecedented functions to the Capital city. As a result, its economy, social structure, physical landmarks, and its relative position within the national and international setting, all have undergone remarkable change. Since open economic policies have relaxed barriers that restricted the movement of commodities, capital, labour and cultural goods across national boundaries, the changes that are taking place in the city are as much a result of the influence of external forces as those emanating from within the country. The changes in the city’s landscape thus have to be examined with reference to both exogenous and exadogenous factors. The next few pages are devoted for this purpose.

Economic Liberalization and Urban Transformation
As is well known, economic liberalization has allowed the market forces to operate freely in diverse fields thereby limiting the scope of the state machinery in its regulatory and management functions with respect to the distribution of life chances, the development and management of scarce resources, public and private consumption, etc. When the market forces operate freely, the competition for scarce resources inevitably becomes more intense. In real life situations, it is not just atomized, self- seeking individuals who compete with each other to have access to resources and life chances. Many people also tend to manipulate their social, political and cultural relationships in order to secure advantages over their rival competitors. It is also noteworthy that individual competition takes place within certain structural constraints, both national and global.

For instance those who have access to global capital, modern technology and seats of power naturally have a distinct advantage over those who do not have such access. So, in an increasingly globalizing economy, transnational forces tend to increasingly impinge on the lives and affairs of the people living in the cities which are closely integrated with the outside world. Colombo, being the capital of a country whose economy has already been liberalized, is exposed to diverse global forces as never before.

Continued tomorrow


India set to push key economic reform bills
By Narayanan Madhavan

NEW DELHI, Nov 29 (Reuters) - Electoral defeats have put a question mark over the Indian government’s ability to pass ambitious economic reform bills in a parliament session due to start on Monday.

Prime Minister Atal Behari Vajpayee’s government has vowed to launch a slew of long-awaited bills, but prospects for their passage through parliament dimmed after his Bharatiya Janata Party was worsted by its arch-foe, the Congress party.

In its first test of popularity since coming to power in March, the BJP lost two crucial states and seemed well on its way to conceding a third.

The bills’ passage through a turbulent, divided parliament will be far from easy.

With the session scheduled to run just three weeks, the government may have bitten off much more than it can chew in aiming for a host of new laws, government sources said.

"The probability is small. There are only 18 sittings," a government official, who asked not to be named, told Reuters.

Topping the pile of legislation keenly awaited by foreign investors is an insurance reform bill which got cabinet approval last week. It would permit 40 percent overseas foreign stakes in direct investment and fund holdings.

Pharmaceutical firms cheered up after the cabinet cleared the way for a patent law amendment to grant "mailbox" facilities for product patents — so far not recognised by India — with the promise of eventual introduction of product patents.

Stock markets are looking forward to a bill permitting companies to buy back shares. The permission has already been announced by a presidential ordinance, but parliament must approve it before it can acquire legal status.

Two bills already pending in parliament will also be among the crucial economic reform legislation.

One involves swapping a 25-year-old foreign exchange control for a liberalised Foreign Exchange Management Act.


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