Economics of Urban Renewal

Abstract

Urban renewal is an integral aspect of sustainable development. While it involves desirable programmes designed to rebuild and redevelop urban slums it goes with it undesirable effects on the already poor slum dwellers. This paper shows that Urban renewal constitute cost to existing urban communities in terms of displacement and dislocation which brings with it some period of inactivity and resultant declining productivity. Also urban renewal diverts funds from core welfare issues to slum clearance and rebuilding. On the positive side urban renewal promotes tourism and also serve as a precondition for take-off to self sustained growth through agglomeration of economies of scale accmable to urban centers. Be that as it may urban renewal must be made to have a human lace in order to rehabilitate its bad reputation. Its policies must be reviewed to embrace less destniction and more renovation, rehabilitation and investment.