Analysis of Affordable Housing in London

Analysis of Affordable Housing in London 1.1 Arguments and Discussions A report published recently by the Greater London Authority on the problem of affordable housing in London in June 2005, revealed that the issue of â€Å"affordable housing† (Karn and Wolman, 1992; p.16) was the most pressing matter Londoners wished to see dealt with in terms of improving London as a place to live (Greater London Authority, 2005; Section 2.3). The Barker Review of Housing Supply, not only supported this viewpoint, but it identified housing as a basic human need (Barker, 2006; p.1). Affordable housing in London is therefore a controversial and highly topical subject at the moment (Karn and Wolman, 1992; p.16) (Barker, 2006; p.7). The debate surrounding it is underpinned by various political, sociological, economic and financial factors (Greater London Authority, 2005; Karn and Wolman, 1992; p16 (Rugg,1999; p.19). This thesis will examine why there is an affordable housing shortage; who really would benefit from affordable housing and what sectors of the population are affected by problems associated with affordable housing. The concept of affordable and who really wants it will be examined in detail, since the notion of affordability is essentially so subjective that it is open to interpretation on many levels. Affordability as a concept, will therefore be examined from an ethical point of view; from an economic point of view and finally from a sociological and political point of view, since these viewpoints will all constrain and influence the ultimate interpre tation of what it means to be affordable.    The thesis will attempt to discover if any agency or individual may be blamed for problems associated with affordable housing in London and the policy context this relates to. Historical factors such as Thatcher’s ‘Right to Buy’ policy (Evans, 2004; p.20) will be examined as well as contemporary initiatives such as equity loans for certain keyworkers’ schemes (Greater London Authority, 2005; Sections 5.16). Where historical issues have impacted the contemporary manifestation of issues connected with affordable housing, these will be analysed. Specifically, the thesis will examine contemporary and historical issues relating to affordable housing through two in depth case studies. One will be on the subject of the ‘Right to Buy’ policy introduced by Thatcher and the other will relate to the definition and depth of debate contained within the idea of affordable housing. These two in depth case studies will be examined qualitatively and will be referred to throughout the thesis. There will also be an economic analysis of the problem of affordable housing, and ideas such as artificially controlling the prices of houses in London will be considered. In this sense, there will be a theoretical evaluation of who really wants affordable housing, as the research will specifically ask if it would be desirable to advocate the imposition of affordable housing upon the London housing market.   The thesis will also consider various issues which are related to the problem of affordable housing such as social and economic policies within the city itself and the social problems which are themselves shaped by shortages of affordable housing in London. Therefore various themes will be drawn out during the course of the thesis and these will include social exclusion, poverty, salary concerns amongst professional and semi-professional sectors, house prices, population and demographic cleavages, anti-social behaviour and crime (Greater London Authority, 2005, Section 5.16 ). These themes will be drawn together to ultimately address the question of ‘Who really wants affordable housing?’. 1.2 Conclusions and Recommendations At this stage the conclusions and recommendations of the chapter are that given the issues which have been highlighted above, an argument can be made that affordable housing is a controversial issue which warrants further investigation. These investigations will attempt to shed more light on the concept of affordable housing and who really wants it. The next chapter will look at the methodology   for the thesis, which will set out the means through which this may be achieved.    CHAPTER TWO: METHODOLOGY 2.1 Overview This section will explain the definition and nature of qualitative research and how it will be used in the thesis inquiry. It will outline the research methods which will be used in the research and what framework these methods will be used within. The research will be based upon a qualitative analysis of two case studies; one contemporary which will be based on the concept of affordable housing itself, and the other historical and this will centred on the ‘Right to Buy’ policy introduced by Thatcher in 1980. These case studies will be derived from examination of published texts within the field of economic and politics. These texts have been identified as an appendix to the thesis. Where quantitative information is relevant to the thesis this will be looked at, but evaluated qualitatively, since the basis of the research will be mainly qualitative in nature. Primary evidence in the form of interviews was also used. 2.2 Hypothesis There are two hypothesises which will feature in this thesis. The first is that affordable housing is needed and wanted by the economically disadvantaged within London, and these groups include the poor, the disabled and specific sectors of workers who do not earn enough money to buy their own houses within London. Another hypothesis of the study is that affordable housing is a problem which comprises many interrelated and intersecting issues; all of which may be seen as sociological, economic and political. It follows that any credible proposals in relation to lessening the problem of affordable housing must take this into account, and simultaneously address economic, political and sociological problems. The essence of this hypothesis is therefore that this is the best why to understand and to approach the description and evaluation of the problem of affordable housing in London and who really wants it. These hypothesises will be tested throughout the thesis. 2.3 Aims and Objectives Specifically, the primary aim of the study is to examine whether the above mentioned hypothesises can be supported. Overall the aim of the study is to examine the concept of affordable housing in London, and who really wants it. Primary qualitative data in the form of interviews with key workers and London residents affected by the affordable housing problem, will also be conducted in order to achieve a better understanding of the problem of affordable housing in London. Another aim of the study is to present and interpret these results. Various perspectives on the problem of affordable housing; its possible solutions and impacts will be advanced and discussed by the writer on the basis of these investigations. The study will aim therefore to use this discussion in order to achieve a more full understanding of the problem of affordable housing in London; who really wants it and related sociological, economic and political issues. Ultimately the thesis will aim to add original literature to the research pool in relation to the problem of affordable housing in London, providing a detailed and holistic overview of the problem; who it affects and how its adverse effects may be lessened. 2.4 Arguments and Discussions Definition of Qualitative Research/Explanation of Why Qualitative Research is Appropriate    There are two main categories of research methods; qualitative methods (Bryman, 1995: p20) and quantitative methods (Bornat, Chamberlayne and Wengraf, 2000; Chapter One). The best way to define one is by reference and comparison to the other since the paradigm of research enquiry is mainly split between these two different research rationales (Bryman, 1995; p95 and 20).   Qualitative research aims to explain concepts and phenomena (Bryman, 1995; p95). Specifically the concept of affordable housing will be addressed in this research. As we have seen explained above, the focus of the research will be mainly qualitative in nature. However, in what ways is a qualitative research enquiry more appropriate to this question relating to affordable housing? Qualitative research tends to be more holistic (Knowles and Sweetman, 2004; p.12) than specific which means that it seeks to understand a topic ‘in the round’ (Bryman, 1995; p.20). On the contrary, quantitative methods value specificity and outcome linked methods of research (Trout, 1998; p.113). This holistic characteristic of qualitative research fits the wider aim of this thesis enquiry, as the problem of affordable housing, its causes, purpose, its critique and its improvement are all topics which, too, must be understood and approached ‘in the round’. Therefore, while quantitative work tends to predict and hypothesise (Trout, 1998; p.113) about possible outcomes, the qualitative researcher will often embark upon their research enquiry with an open mind (Bryman, 1995; p.20), researching malleable conclusions as the enquiry unfolds. This open ended research framework therefore fits the infinitely complex dynamics of affordable housing more appropriately ( Greater London Authority, 2005; Section 1-5).   This open-ended research aim (Knowles and Sweetman, 2004; p.12) relating to qualitative research may be contrasted with the aim of quantitative research which usually seeks to be confirmatory (Trout, 1998; p.113), rather than (and also more so than) explanatory (Harrison, 2001; p.68). In this context, qualitative research may be understood as inductive (Bryman, 1995; p.20) whereas quantitative research tends to be more deductive in nature. This type of research (qualitative) tends to be situational in nature and tends to reflect given cultural and theoretical mores (Knowles and Sweetman, 2004; p.12). This imbibes qualitative research methods with a level of subjectivity which would not be appropriate in a quantitative or positivist study, since the processes under examination (Greater London Authority, 2006; Sections 1-5) often cannot be pinned down by or encapsulated within a quantitative research framework. Again these characteristics of qualitative research fit the enquiry into af fordable housing more appropriately since the levels of subjectivity involved in the arguments and theories connected with affordable housing are vast (Greater London Authority, 2006; Sections 1-5).   Differences between qualitative and quantitative research may also be explained by arguing that qualitative research is process related (Bryman, 1995; p.20) with a relative lack of control (Knowles and Sweetman, 2004; p.12) over the various processes which are to be understood, whereas conversely variables are strictly controlled within the framework of a quantitative research framework (Trout, 1998; p.113). Others have explained the differences between qualitative and quantitative enquiries by arguing that the former is anthropological in nature (Bryman, 1995; p.20) (since it has a focus on society and sociological forces), while the latter; quantitative research being more ‘scientific’ (Trout, 1998; p.113). Qualitative research methods are also appropriate to this enquiry into affordable housing since they are unstructured (Knowles and Sweetman, 2004; p.12) and discursive (Bryman, 1995; p.20), allowing a researcher room to analyse possible outcomes/rationales/explanations (Knowles and Sweetman, 2004; p.12) as well as the ones which will potentially be accepted as the most credible. Colloquially, this characteristic of qualitative research leads many to regard it as a ‘soft’ subject’ area (Bryman, 1995; p.20) which lends itself well to the area of social science research as opposed to ‘hard’ subject areas such as maths or physics which may be described as more tangible (Trout, 1998; p.113). However, this particular dichotomy between qualitative and quantitative research methods discredits qualitative research for no better reason than those who critique qualitative research in these terms fail to understand that concepts and phenomena which may be described in tangible, or ‘scientific’ terms do not take precedence over research enquiries into what is not tangible. Simply because a concept may be difficult to understand in isolation, as qualitative subject matter often is does not mean that it is not capable of being understood credibly. Simply because qualitative subject matter may be understood credibly in different ways by different people does not strip each differing rationale of validity simply because another explanation may be pointed to. It must also be remembered that the objectivity of quantitative research often precludes the existence of other explanations of research phenomena, not because there are no valid alternative explanations but because the nature of quantitative enquiry is not always equipped to cope with multi-faceted concepts, whose existence and form may only be conjectured upon and not encapsulated within a given explanation. Concepts and phenomena are not always thoroughly understood through mere extrapolation, which is what makes the pragmatic and open-ended nature of qualitative enquiry universally important and specifically pivotal to this thesis enquiry into affordable housing.   These points should however, in no way, be interpreted as a critique of quantitative methods. Indeed, quantitative statistics and studies will be widely consulted as a vital part of the thesis enquiry (Greater London Authority, 2005; Sections 1-7). It just happens to be the case that qualitative research is a more appropriate means to seek to explain the particular context and rationales underpinning the issue of affordable housing in the context of this particular study. The points, mentioned above regarding the qualitative/quantitative aspects of the wider research paradigm are therefore merely a defence of the qualitative method which will form the main bedrock of this research design. 2.3 Sources and Framework  Ã‚   This thesis will rely upon   primary data gathered through interviews with interested parties and stakeholders in the area of affordable housing. Specifically, groups such as local residents and key workers in London will be interviewed and an interview with a Housing Association in Notting Hill will be conducted. The methodology for this thesis will also rely on sources, such as Government reports and current debates, reports/sources from interested parties in the non-profit making sector, case-studies and contemporary and historical books. These sources will all be used to contextualise the two case studies which, as has been explained previously, form a pivot of the thesis. Archival research in the form of retrieving and consulting relevant press publications and speeches through these means will also be important. The research will therefore be primary and secondary in nature, and it will mainly make wide reference to qualitative/phenomenological material. Reference will also be made to quantitative and empirically derived data. Examining the range of sources which have been explained above will ensure that the research engages the subject with the necessary degree of depth and theoretical perspective. 2.4 Conclusions and Recommendations The conclusion of this chapter is that qualitative research is ultimately more compatible with the overall research aims and objectives.   Primary and secondary qualitative research will be used to gather the information needed to comment on the validity of the hypothesises outlined above.     CHAPTER THREE: LITERATURE REVIEW PART ONE: DEFINITIONS; AND THE PROBLEM OF AFFORDABLE HOUSING IN LONDON 3.1.a Arguments and Discussions What Does the Concept of Affordable Housing Refer to? Affordable Housing has been defined by Plymouth City Council as: ‘Low cost market, and subsidised housing..that will be available to people who cannot afford to rent or buy houses generally available on the open market†¦.that definition should be framed to endure for the life of the plan, for instance through reference to the level of local incomes and their relationship to house prices or rents, rather than to a particular price or rent applicable at that one point in time (http://www.plymouth.gov.uk ).   Affordable housing causes particular demographic cleavages such as the inaccessibility of certain areas of London to what are referred to as key or essential workers such as teachers, nurses, police officers and employees of the health and social services (Greater London Authority, 2005; Section 5.16) (Karn and Wolman, 1992; p.16). This problem of inaccessibility means that these groups are ‘priced out of the market’ which means that on the salary that is typically earned by people in their jobs, it is difficult to find a house which is affordable (Karn and Wolman, 1992; p.16).  Ã‚   The problem of affordable housing has also defined as ‘infrastructure needs’. These needs have been elaborated on in the following way: ‘The changing face of London’s population has immediate implications for every aspect of London life-education.transport and infrastructure.employment and employability, competitiveness and culture†¦Housing provides a useful example..London has 42 per cent of England’s most overcrowded households..’ (Greater London Authority, 2006; Section 2.8).  Ã‚  Ã‚   Affordable housing therefore refers to a situation where there are not sufficient numbers of houses being built to satisfy the level of demand there is for these types of houses and accommodation in general (Greater London Authority, 2006; Section 5.17 and Karn and Wolman, 1992; p.16) (Barker, 2006; p.7). This situation (some would say artificially) increases the price of property within certain areas affected by affordable housing shortages. These are essentially the mechanics of affordable housing. This definition therefore goes to the heart of what the concept means in practical and real terms. However, this definition does not encapsulate how malleable this concept of affordable housing can be when it is viewed from particular standpoints. The concept of affordable housing is particularly linked with certain social and economic problems, such as social exclusion, poverty and crime (Pacione, 1997; p.7 and Rugg, 1999; p.19). This is also supported through the primary research findings of the writer. An interview with Kate Bond revealed that she was suspicious of the social problems which are associated with affordable housing developments and is reluctant to allow her children to play in these areas (Interview One, 2006; p.1). Affordable housing can therefore also be interpreted from a purely ethical standpoint, in which case it would refer to the wider problem of housing shortages being linked to problems such as poverty, crime and low wages for certain sectoral groups. In terms of economics (and this will be looked at in more detail in the next section) this ethical perspective it somewhat suspended from the analysis and the problem becomes one which is defined in terms of how certain factors such as supply, demand, resources and money shape the concept of affordability in terms of the housing sector. These issues of definition are important to an analysis of affordable housing since, if one is to examine the question of who really wants affordable housing, it is imperative to extrapolate the concept in sufficient detail. Therefore, the problem of affordable housing and its theoretical underpinnings and context will be examined alongside a discussion of what the concept essentially means to different people, as the next section, an economic analysis of the problem of affordable housing and who really wants it, will elucidate. 3.1.b Economic Analysis of the Problem The price of housing in a free-market economy is determined by supply and demand. The supply of houses increases, other things equal, as the price of housing rises. The reason for this is that as the price of housing rises, other things equal, producers will find it profitable to allocate more resources to the production of houses relative to the production of other things they might otherwise produce. However, as the price of housing rises, other things equal, the demand for housing falls. The reason for this is that as the price of housing rises, other things equal, consumers will find it advantageous to substitute away from the consumption of houses towards the consumption of other goods that are now relatively cheaper to purchase. The price of housing, known as the â€Å"equilibrium† price, is the price at which these two forces, demand and supply are equal. This is how economists’ typically analyse markets (Landsburg, 2002; ch.1). How does the price of housing adjust to ensure that â€Å"equilibrium† is reached? If demand exceeds supply, then there is more demand for housing at the existing price than producers are willing to supply at that price. In such circumstances, economists say that purchasers of houses are â€Å"rationed† – not everyone who wants to buy a house at the existing price can get one. These potential purchasers start competing with one another by offering suppliers a slightly higher price for a house than was the case in the market initially. This has two effects; first of all, the higher price induces more supply, and secondly, the higher price lowers demand. This means that the â€Å"excess demand† in the market that existed initially falls as a consequence of competition between rationed purchasers. Naturally, this process of competition will continue until prices have been bid upward sufficiently to ensure that demand and supply are equal. At this point, no-on e is rationed and excess demand falls to zero. Of course, this process can be reversed.   Imagine that at the existing price the supply of houses exceeds the demand. Now it is the producers of houses who are â€Å"rationed† – not everyone who wants to sell a house at the existing price can. As before, these potential sellers start competing with one another by offering purchasers a slightly lower price for a house than was the case in the market initially. This has two effects; first of all, the lower price induces less supply, and secondly, the lower price raises demand. This means that the â€Å"excess supply† in the market that existed initially falls as a consequence of competition between rationed sellers. Just like the previous case, this process of competition will continue until prices have been bid downward sufficiently to ensure that demand and supply are equal. At this point, no-one is rationed and excess demand falls to zero (Landsburg, 2002; ch.7). What are we to make of this analysis from economics? Economics helps us to understand how prices are determined. They are determined by the forces of supply and demand operating through the mechanism described above. But can this give us some insight into the concept of â€Å"affordability†? Not really. The notion of â€Å"affordability† is one that does not make sense within the discipline of economics. This might be a weakness of economics, but it might also be that the concept itself is meaningless. Let me explain. In economics, the equilibrium price of housing (also known as the â€Å"market† price) is the price that is desirable from a social point of view. It can neither be too high or too low. Provided that the housing market is a so-called â€Å"competitive† market then the equilibrium price is the one that society ought to want (Landsburg, 2002; ch.8). How does economics reach this surprising conclusion? It does so from noting that at the equilibrium price, all gains from trade in the market are maximised (Landsburg, 2002; ch.8). In other words, despite claims that economics is a â€Å"positivist† subject, it is committed to a specific normative theory of good (Hausman and McPherson, 1996; Ch. 1 and 8). That theory says that what is socially desirable maximises the gains from trade. What does this mean? Let us return to the excess demand example mentioned above. Imagine that at the initial market price, purchasers of houses are â€Å"rationed† – not everyone who wants to buy a house at the existing price can get one. It is simple to demonstrate that at this price, the increase in price needed to induce producers to build just one more house is strictlyless than what potential purchasers would be willing to pay a producer in order to build that house (Landsburg, 2002; ch.8). Given that this condition is satisfied, it is always possible for a mutually beneficial trade to occur between a potential buyer and a potential seller.   To illustrate this, imagine that a producer of houses (a builder, say) needs the price of houses to rise from  ¿Ã‚ ¡100,000 to  ¿Ã‚ ¡118,000 in order to find it profitable to build 11 houses as opposed to 10. If there is a situation of excess demand in the market whenever the price of a house is  ¿Ã‚ ¡100,000 then it is always possible to show that the maximum price someone would be willing to pay in order to induce the producer to build the additional house is strictly greater than  ¿Ã‚ ¡118,000. If that price is, for example,  ¿Ã‚ ¡150,000, then the two parties can trade to their mutual advantage. Imagine that the potential buyer offers the producer a price of  ¿Ã‚ ¡125,000 in order to build the house. This is a price the producer will happily accept. He or she would have built the house for  ¿Ã‚ ¡118,000 but instead gets  ¿Ã‚ ¡125,000 – the producer is better-off by  ¿Ã‚ ¡7000. Economists say that â€Å"producer surplus† rises by  ¿Ã‚ ¡7000 (Lands burg, 2002; Ch.8).   Similarly, the buyer gets the house for  ¿Ã‚ ¡125,000 but was willing to pay  ¿Ã‚ ¡150,000 for it. The buyer is better-off by  ¿Ã‚ ¡25,000. Economists say that â€Å"consumer surplus† rises by  ¿Ã‚ ¡25,000 (Landsburg, 2002; Ch.8). An important insight from economics, as seen in this example, is that mutually advantageous trade is possible. Trade is not necessarily a zero-sum game. How does this relate to the idea that the equilibrium price is the socially desirable one? It does so in the following way. As the excess demand in the market is gradually eliminated through upward movement in prices, the scope for mutually advantageous trade between buyers and sellers shrinks. Remarkably, when the excess demand for houses vanishes and the market is in equilibrium, no more mutually advantageous trades are possible. The price that would induce a producer to build an additional house is equal to the maximum price someone would be willing to pay for it – neither consumer surplus nor producer surplus can rise if this trade takes place. At the market equilibrium, all gains from trade have been realised and no more are possible. Economists refer to this state as one of â€Å"economic efficiency† or â€Å"Pareto efficiency†. (Landsburg, 2002; Ch.8). The above analysis is the main reason why economists (admittedly with some caution) advocate the use of free markets. If a market is competitive then it will produce on its own devices an equilibrium that is socially desirable (if one accepts the principle of economic efficiency). Adam Smith referred to this general idea (albeit in a different context) as the â€Å"Invisible Hand†. He said â€Å"Every individualgenerally, indeed, neither intends to promote the public interest, nor knows how much he is promoting it. By preferring the support of domestic to that of foreign industry he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention† (Smith, 1776; p.243). Smith’s idea is that people acting in their own self-interest may produce unintended consequences which, surprisingly, can serve the social good. In the example above, individuals through competition with one another push the market price towards its equilibrium value, and this value is socially desirable. However, to do this was not the intention of the individuals involved. They were just competing with one another and trading with sellers for their own private benefit. How does this analysis help with the problem of â€Å"affordable housing†? From an economic point of view, affordability is a meaningless concept. It is simply not a social objective for things to be affordable, rather the government should seek to promote competition in the housing market and then leave the market to its own devices. This conclusion of economics is striking and quite at odds with other perspectives on this problem. I will argue that affordability is an important problem, and that something fundamental is missing from the economic approach to housing. Within economics what is missing is some notion of â€Å"equity†, or a concern for how the gains from trade are distributed across different people. To illustrate this point, imagine that the equilibrium price of a house in a competitive housing market is  ¿Ã‚ ¡200,000. Then those who are willing to pay  ¿Ã‚ ¡200,000 or more for a property will get one, and the situation will be efficient from an economic point of view. However, this might not be the â€Å"ethically appropriate† way to allocate houses to people. The reason is fairly obvious. What someone is willing to pay for anything is constrained by their income. A rich person might be willing to pay more for a house than a poor person, but this does not mean that it is better th at the rich person gets the house as opposed to the poor person. This is sometimes referred to in economics as the â€Å"equity-efficiency† trade-off. This is the idea that less efficiency is the price we have to pay sometimes if we want to ensure a more equitable distribution of goods across people (Landsburg, 2002; Ch.8). Policies designed to promote affordable housing fall into this category. The people who will gain the most from them are people on low income, who cannot guarantee that they will be allocated a house through the market mechanism. 3.1.c How is the Problem of Affordable Housing Addressed? Various policy initiatives have been introduced to ameliorate the problem of affordable housing in London. These will be discussed in this section. These policies and whether they have a positive impact upon the community will also be evaluated in this section.   One such policy   takes the form of Section 106 of the Town and Country Planning Act 1990 (which became operative in 1947 (Jackson, J., 1963; p.18 ), which seeks to address the problems which may arise in relation to affordable housing and the provision of local services (Monk, S. et al., 2005; p.24-27).   Where a major developer wishes to obtain planning permission for a development in a given area, it is the case that such developments will put pressure on local services such as schools or hospitals this Act seeks to ensure that some of the cost of such developments are borne by the developers who wish to develop the area (Monk, S. et al., 2005; p.24-27). Section 106 of this statute therefore provides that agreements may be reached between local planning authorities and developers in relation to planning permission, where the developer is required to make financial contributions towards the local services in the areas where the planned developments are to be built (Monk, S. et al., 2005; p.24-27). However, this statute has been criticised, especially by Kate Barker (2006; p.11), as being in drastic need to reform to make it more simple and certain. The Barker Review also recommended in relation to Section 106, that it be scaled back to address the direct impacts of developments (Barker, 2006; p.11). Also, Housing Associations in London such as the Keystart Housing Association, Tower Homes, Metropolitan Home Ownership and London Str Analysis of Affordable Housing in London Analysis of Affordable Housing in London 1.1 Arguments and Discussions A report published recently by the Greater London Authority on the problem of affordable housing in London in June 2005, revealed that the issue of â€Å"affordable housing† (Karn and Wolman, 1992; p.16) was the most pressing matter Londoners wished to see dealt with in terms of improving London as a place to live (Greater London Authority, 2005; Section 2.3). The Barker Review of Housing Supply, not only supported this viewpoint, but it identified housing as a basic human need (Barker, 2006; p.1). Affordable housing in London is therefore a controversial and highly topical subject at the moment (Karn and Wolman, 1992; p.16) (Barker, 2006; p.7). The debate surrounding it is underpinned by various political, sociological, economic and financial factors (Greater London Authority, 2005; Karn and Wolman, 1992; p16 (Rugg,1999; p.19). This thesis will examine why there is an affordable housing shortage; who really would benefit from affordable housing and what sectors of the population are affected by problems associated with affordable housing. The concept of affordable and who really wants it will be examined in detail, since the notion of affordability is essentially so subjective that it is open to interpretation on many levels. Affordability as a concept, will therefore be examined from an ethical point of view; from an economic point of view and finally from a sociological and political point of view, since these viewpoints will all constrain and influence the ultimate interpre tation of what it means to be affordable.    The thesis will attempt to discover if any agency or individual may be blamed for problems associated with affordable housing in London and the policy context this relates to. Historical factors such as Thatcher’s ‘Right to Buy’ policy (Evans, 2004; p.20) will be examined as well as contemporary initiatives such as equity loans for certain keyworkers’ schemes (Greater London Authority, 2005; Sections 5.16). Where historical issues have impacted the contemporary manifestation of issues connected with affordable housing, these will be analysed. Specifically, the thesis will examine contemporary and historical issues relating to affordable housing through two in depth case studies. One will be on the subject of the ‘Right to Buy’ policy introduced by Thatcher and the other will relate to the definition and depth of debate contained within the idea of affordable housing. These two in depth case studies will be examined qualitatively and will be referred to throughout the thesis. There will also be an economic analysis of the problem of affordable housing, and ideas such as artificially controlling the prices of houses in London will be considered. In this sense, there will be a theoretical evaluation of who really wants affordable housing, as the research will specifically ask if it would be desirable to advocate the imposition of affordable housing upon the London housing market.   The thesis will also consider various issues which are related to the problem of affordable housing such as social and economic policies within the city itself and the social problems which are themselves shaped by shortages of affordable housing in London. Therefore various themes will be drawn out during the course of the thesis and these will include social exclusion, poverty, salary concerns amongst professional and semi-professional sectors, house prices, population and demographic cleavages, anti-social behaviour and crime (Greater London Authority, 2005, Section 5.16 ). These themes will be drawn together to ultimately address the question of ‘Who really wants affordable housing?’. 1.2 Conclusions and Recommendations At this stage the conclusions and recommendations of the chapter are that given the issues which have been highlighted above, an argument can be made that affordable housing is a controversial issue which warrants further investigation. These investigations will attempt to shed more light on the concept of affordable housing and who really wants it. The next chapter will look at the methodology   for the thesis, which will set out the means through which this may be achieved.    CHAPTER TWO: METHODOLOGY 2.1 Overview This section will explain the definition and nature of qualitative research and how it will be used in the thesis inquiry. It will outline the research methods which will be used in the research and what framework these methods will be used within. The research will be based upon a qualitative analysis of two case studies; one contemporary which will be based on the concept of affordable housing itself, and the other historical and this will centred on the ‘Right to Buy’ policy introduced by Thatcher in 1980. These case studies will be derived from examination of published texts within the field of economic and politics. These texts have been identified as an appendix to the thesis. Where quantitative information is relevant to the thesis this will be looked at, but evaluated qualitatively, since the basis of the research will be mainly qualitative in nature. Primary evidence in the form of interviews was also used. 2.2 Hypothesis There are two hypothesises which will feature in this thesis. The first is that affordable housing is needed and wanted by the economically disadvantaged within London, and these groups include the poor, the disabled and specific sectors of workers who do not earn enough money to buy their own houses within London. Another hypothesis of the study is that affordable housing is a problem which comprises many interrelated and intersecting issues; all of which may be seen as sociological, economic and political. It follows that any credible proposals in relation to lessening the problem of affordable housing must take this into account, and simultaneously address economic, political and sociological problems. The essence of this hypothesis is therefore that this is the best why to understand and to approach the description and evaluation of the problem of affordable housing in London and who really wants it. These hypothesises will be tested throughout the thesis. 2.3 Aims and Objectives Specifically, the primary aim of the study is to examine whether the above mentioned hypothesises can be supported. Overall the aim of the study is to examine the concept of affordable housing in London, and who really wants it. Primary qualitative data in the form of interviews with key workers and London residents affected by the affordable housing problem, will also be conducted in order to achieve a better understanding of the problem of affordable housing in London. Another aim of the study is to present and interpret these results. Various perspectives on the problem of affordable housing; its possible solutions and impacts will be advanced and discussed by the writer on the basis of these investigations. The study will aim therefore to use this discussion in order to achieve a more full understanding of the problem of affordable housing in London; who really wants it and related sociological, economic and political issues. Ultimately the thesis will aim to add original literature to the research pool in relation to the problem of affordable housing in London, providing a detailed and holistic overview of the problem; who it affects and how its adverse effects may be lessened. 2.4 Arguments and Discussions Definition of Qualitative Research/Explanation of Why Qualitative Research is Appropriate    There are two main categories of research methods; qualitative methods (Bryman, 1995: p20) and quantitative methods (Bornat, Chamberlayne and Wengraf, 2000; Chapter One). The best way to define one is by reference and comparison to the other since the paradigm of research enquiry is mainly split between these two different research rationales (Bryman, 1995; p95 and 20).   Qualitative research aims to explain concepts and phenomena (Bryman, 1995; p95). Specifically the concept of affordable housing will be addressed in this research. As we have seen explained above, the focus of the research will be mainly qualitative in nature. However, in what ways is a qualitative research enquiry more appropriate to this question relating to affordable housing? Qualitative research tends to be more holistic (Knowles and Sweetman, 2004; p.12) than specific which means that it seeks to understand a topic ‘in the round’ (Bryman, 1995; p.20). On the contrary, quantitative methods value specificity and outcome linked methods of research (Trout, 1998; p.113). This holistic characteristic of qualitative research fits the wider aim of this thesis enquiry, as the problem of affordable housing, its causes, purpose, its critique and its improvement are all topics which, too, must be understood and approached ‘in the round’. Therefore, while quantitative work tends to predict and hypothesise (Trout, 1998; p.113) about possible outcomes, the qualitative researcher will often embark upon their research enquiry with an open mind (Bryman, 1995; p.20), researching malleable conclusions as the enquiry unfolds. This open ended research framework therefore fits the infinitely complex dynamics of affordable housing more appropriately ( Greater London Authority, 2005; Section 1-5).   This open-ended research aim (Knowles and Sweetman, 2004; p.12) relating to qualitative research may be contrasted with the aim of quantitative research which usually seeks to be confirmatory (Trout, 1998; p.113), rather than (and also more so than) explanatory (Harrison, 2001; p.68). In this context, qualitative research may be understood as inductive (Bryman, 1995; p.20) whereas quantitative research tends to be more deductive in nature. This type of research (qualitative) tends to be situational in nature and tends to reflect given cultural and theoretical mores (Knowles and Sweetman, 2004; p.12). This imbibes qualitative research methods with a level of subjectivity which would not be appropriate in a quantitative or positivist study, since the processes under examination (Greater London Authority, 2006; Sections 1-5) often cannot be pinned down by or encapsulated within a quantitative research framework. Again these characteristics of qualitative research fit the enquiry into af fordable housing more appropriately since the levels of subjectivity involved in the arguments and theories connected with affordable housing are vast (Greater London Authority, 2006; Sections 1-5).   Differences between qualitative and quantitative research may also be explained by arguing that qualitative research is process related (Bryman, 1995; p.20) with a relative lack of control (Knowles and Sweetman, 2004; p.12) over the various processes which are to be understood, whereas conversely variables are strictly controlled within the framework of a quantitative research framework (Trout, 1998; p.113). Others have explained the differences between qualitative and quantitative enquiries by arguing that the former is anthropological in nature (Bryman, 1995; p.20) (since it has a focus on society and sociological forces), while the latter; quantitative research being more ‘scientific’ (Trout, 1998; p.113). Qualitative research methods are also appropriate to this enquiry into affordable housing since they are unstructured (Knowles and Sweetman, 2004; p.12) and discursive (Bryman, 1995; p.20), allowing a researcher room to analyse possible outcomes/rationales/explanations (Knowles and Sweetman, 2004; p.12) as well as the ones which will potentially be accepted as the most credible. Colloquially, this characteristic of qualitative research leads many to regard it as a ‘soft’ subject’ area (Bryman, 1995; p.20) which lends itself well to the area of social science research as opposed to ‘hard’ subject areas such as maths or physics which may be described as more tangible (Trout, 1998; p.113). However, this particular dichotomy between qualitative and quantitative research methods discredits qualitative research for no better reason than those who critique qualitative research in these terms fail to understand that concepts and phenomena which may be described in tangible, or ‘scientific’ terms do not take precedence over research enquiries into what is not tangible. Simply because a concept may be difficult to understand in isolation, as qualitative subject matter often is does not mean that it is not capable of being understood credibly. Simply because qualitative subject matter may be understood credibly in different ways by different people does not strip each differing rationale of validity simply because another explanation may be pointed to. It must also be remembered that the objectivity of quantitative research often precludes the existence of other explanations of research phenomena, not because there are no valid alternative explanations but because the nature of quantitative enquiry is not always equipped to cope with multi-faceted concepts, whose existence and form may only be conjectured upon and not encapsulated within a given explanation. Concepts and phenomena are not always thoroughly understood through mere extrapolation, which is what makes the pragmatic and open-ended nature of qualitative enquiry universally important and specifically pivotal to this thesis enquiry into affordable housing.   These points should however, in no way, be interpreted as a critique of quantitative methods. Indeed, quantitative statistics and studies will be widely consulted as a vital part of the thesis enquiry (Greater London Authority, 2005; Sections 1-7). It just happens to be the case that qualitative research is a more appropriate means to seek to explain the particular context and rationales underpinning the issue of affordable housing in the context of this particular study. The points, mentioned above regarding the qualitative/quantitative aspects of the wider research paradigm are therefore merely a defence of the qualitative method which will form the main bedrock of this research design. 2.3 Sources and Framework  Ã‚   This thesis will rely upon   primary data gathered through interviews with interested parties and stakeholders in the area of affordable housing. Specifically, groups such as local residents and key workers in London will be interviewed and an interview with a Housing Association in Notting Hill will be conducted. The methodology for this thesis will also rely on sources, such as Government reports and current debates, reports/sources from interested parties in the non-profit making sector, case-studies and contemporary and historical books. These sources will all be used to contextualise the two case studies which, as has been explained previously, form a pivot of the thesis. Archival research in the form of retrieving and consulting relevant press publications and speeches through these means will also be important. The research will therefore be primary and secondary in nature, and it will mainly make wide reference to qualitative/phenomenological material. Reference will also be made to quantitative and empirically derived data. Examining the range of sources which have been explained above will ensure that the research engages the subject with the necessary degree of depth and theoretical perspective. 2.4 Conclusions and Recommendations The conclusion of this chapter is that qualitative research is ultimately more compatible with the overall research aims and objectives.   Primary and secondary qualitative research will be used to gather the information needed to comment on the validity of the hypothesises outlined above.     CHAPTER THREE: LITERATURE REVIEW PART ONE: DEFINITIONS; AND THE PROBLEM OF AFFORDABLE HOUSING IN LONDON 3.1.a Arguments and Discussions What Does the Concept of Affordable Housing Refer to? Affordable Housing has been defined by Plymouth City Council as: ‘Low cost market, and subsidised housing..that will be available to people who cannot afford to rent or buy houses generally available on the open market†¦.that definition should be framed to endure for the life of the plan, for instance through reference to the level of local incomes and their relationship to house prices or rents, rather than to a particular price or rent applicable at that one point in time (http://www.plymouth.gov.uk ).   Affordable housing causes particular demographic cleavages such as the inaccessibility of certain areas of London to what are referred to as key or essential workers such as teachers, nurses, police officers and employees of the health and social services (Greater London Authority, 2005; Section 5.16) (Karn and Wolman, 1992; p.16). This problem of inaccessibility means that these groups are ‘priced out of the market’ which means that on the salary that is typically earned by people in their jobs, it is difficult to find a house which is affordable (Karn and Wolman, 1992; p.16).  Ã‚   The problem of affordable housing has also defined as ‘infrastructure needs’. These needs have been elaborated on in the following way: ‘The changing face of London’s population has immediate implications for every aspect of London life-education.transport and infrastructure.employment and employability, competitiveness and culture†¦Housing provides a useful example..London has 42 per cent of England’s most overcrowded households..’ (Greater London Authority, 2006; Section 2.8).  Ã‚  Ã‚   Affordable housing therefore refers to a situation where there are not sufficient numbers of houses being built to satisfy the level of demand there is for these types of houses and accommodation in general (Greater London Authority, 2006; Section 5.17 and Karn and Wolman, 1992; p.16) (Barker, 2006; p.7). This situation (some would say artificially) increases the price of property within certain areas affected by affordable housing shortages. These are essentially the mechanics of affordable housing. This definition therefore goes to the heart of what the concept means in practical and real terms. However, this definition does not encapsulate how malleable this concept of affordable housing can be when it is viewed from particular standpoints. The concept of affordable housing is particularly linked with certain social and economic problems, such as social exclusion, poverty and crime (Pacione, 1997; p.7 and Rugg, 1999; p.19). This is also supported through the primary research findings of the writer. An interview with Kate Bond revealed that she was suspicious of the social problems which are associated with affordable housing developments and is reluctant to allow her children to play in these areas (Interview One, 2006; p.1). Affordable housing can therefore also be interpreted from a purely ethical standpoint, in which case it would refer to the wider problem of housing shortages being linked to problems such as poverty, crime and low wages for certain sectoral groups. In terms of economics (and this will be looked at in more detail in the next section) this ethical perspective it somewhat suspended from the analysis and the problem becomes one which is defined in terms of how certain factors such as supply, demand, resources and money shape the concept of affordability in terms of the housing sector. These issues of definition are important to an analysis of affordable housing since, if one is to examine the question of who really wants affordable housing, it is imperative to extrapolate the concept in sufficient detail. Therefore, the problem of affordable housing and its theoretical underpinnings and context will be examined alongside a discussion of what the concept essentially means to different people, as the next section, an economic analysis of the problem of affordable housing and who really wants it, will elucidate. 3.1.b Economic Analysis of the Problem The price of housing in a free-market economy is determined by supply and demand. The supply of houses increases, other things equal, as the price of housing rises. The reason for this is that as the price of housing rises, other things equal, producers will find it profitable to allocate more resources to the production of houses relative to the production of other things they might otherwise produce. However, as the price of housing rises, other things equal, the demand for housing falls. The reason for this is that as the price of housing rises, other things equal, consumers will find it advantageous to substitute away from the consumption of houses towards the consumption of other goods that are now relatively cheaper to purchase. The price of housing, known as the â€Å"equilibrium† price, is the price at which these two forces, demand and supply are equal. This is how economists’ typically analyse markets (Landsburg, 2002; ch.1). How does the price of housing adjust to ensure that â€Å"equilibrium† is reached? If demand exceeds supply, then there is more demand for housing at the existing price than producers are willing to supply at that price. In such circumstances, economists say that purchasers of houses are â€Å"rationed† – not everyone who wants to buy a house at the existing price can get one. These potential purchasers start competing with one another by offering suppliers a slightly higher price for a house than was the case in the market initially. This has two effects; first of all, the higher price induces more supply, and secondly, the higher price lowers demand. This means that the â€Å"excess demand† in the market that existed initially falls as a consequence of competition between rationed purchasers. Naturally, this process of competition will continue until prices have been bid upward sufficiently to ensure that demand and supply are equal. At this point, no-on e is rationed and excess demand falls to zero. Of course, this process can be reversed.   Imagine that at the existing price the supply of houses exceeds the demand. Now it is the producers of houses who are â€Å"rationed† – not everyone who wants to sell a house at the existing price can. As before, these potential sellers start competing with one another by offering purchasers a slightly lower price for a house than was the case in the market initially. This has two effects; first of all, the lower price induces less supply, and secondly, the lower price raises demand. This means that the â€Å"excess supply† in the market that existed initially falls as a consequence of competition between rationed sellers. Just like the previous case, this process of competition will continue until prices have been bid downward sufficiently to ensure that demand and supply are equal. At this point, no-one is rationed and excess demand falls to zero (Landsburg, 2002; ch.7). What are we to make of this analysis from economics? Economics helps us to understand how prices are determined. They are determined by the forces of supply and demand operating through the mechanism described above. But can this give us some insight into the concept of â€Å"affordability†? Not really. The notion of â€Å"affordability† is one that does not make sense within the discipline of economics. This might be a weakness of economics, but it might also be that the concept itself is meaningless. Let me explain. In economics, the equilibrium price of housing (also known as the â€Å"market† price) is the price that is desirable from a social point of view. It can neither be too high or too low. Provided that the housing market is a so-called â€Å"competitive† market then the equilibrium price is the one that society ought to want (Landsburg, 2002; ch.8). How does economics reach this surprising conclusion? It does so from noting that at the equilibrium price, all gains from trade in the market are maximised (Landsburg, 2002; ch.8). In other words, despite claims that economics is a â€Å"positivist† subject, it is committed to a specific normative theory of good (Hausman and McPherson, 1996; Ch. 1 and 8). That theory says that what is socially desirable maximises the gains from trade. What does this mean? Let us return to the excess demand example mentioned above. Imagine that at the initial market price, purchasers of houses are â€Å"rationed† – not everyone who wants to buy a house at the existing price can get one. It is simple to demonstrate that at this price, the increase in price needed to induce producers to build just one more house is strictlyless than what potential purchasers would be willing to pay a producer in order to build that house (Landsburg, 2002; ch.8). Given that this condition is satisfied, it is always possible for a mutually beneficial trade to occur between a potential buyer and a potential seller.   To illustrate this, imagine that a producer of houses (a builder, say) needs the price of houses to rise from  ¿Ã‚ ¡100,000 to  ¿Ã‚ ¡118,000 in order to find it profitable to build 11 houses as opposed to 10. If there is a situation of excess demand in the market whenever the price of a house is  ¿Ã‚ ¡100,000 then it is always possible to show that the maximum price someone would be willing to pay in order to induce the producer to build the additional house is strictly greater than  ¿Ã‚ ¡118,000. If that price is, for example,  ¿Ã‚ ¡150,000, then the two parties can trade to their mutual advantage. Imagine that the potential buyer offers the producer a price of  ¿Ã‚ ¡125,000 in order to build the house. This is a price the producer will happily accept. He or she would have built the house for  ¿Ã‚ ¡118,000 but instead gets  ¿Ã‚ ¡125,000 – the producer is better-off by  ¿Ã‚ ¡7000. Economists say that â€Å"producer surplus† rises by  ¿Ã‚ ¡7000 (Lands burg, 2002; Ch.8).   Similarly, the buyer gets the house for  ¿Ã‚ ¡125,000 but was willing to pay  ¿Ã‚ ¡150,000 for it. The buyer is better-off by  ¿Ã‚ ¡25,000. Economists say that â€Å"consumer surplus† rises by  ¿Ã‚ ¡25,000 (Landsburg, 2002; Ch.8). An important insight from economics, as seen in this example, is that mutually advantageous trade is possible. Trade is not necessarily a zero-sum game. How does this relate to the idea that the equilibrium price is the socially desirable one? It does so in the following way. As the excess demand in the market is gradually eliminated through upward movement in prices, the scope for mutually advantageous trade between buyers and sellers shrinks. Remarkably, when the excess demand for houses vanishes and the market is in equilibrium, no more mutually advantageous trades are possible. The price that would induce a producer to build an additional house is equal to the maximum price someone would be willing to pay for it – neither consumer surplus nor producer surplus can rise if this trade takes place. At the market equilibrium, all gains from trade have been realised and no more are possible. Economists refer to this state as one of â€Å"economic efficiency† or â€Å"Pareto efficiency†. (Landsburg, 2002; Ch.8). The above analysis is the main reason why economists (admittedly with some caution) advocate the use of free markets. If a market is competitive then it will produce on its own devices an equilibrium that is socially desirable (if one accepts the principle of economic efficiency). Adam Smith referred to this general idea (albeit in a different context) as the â€Å"Invisible Hand†. He said â€Å"Every individualgenerally, indeed, neither intends to promote the public interest, nor knows how much he is promoting it. By preferring the support of domestic to that of foreign industry he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention† (Smith, 1776; p.243). Smith’s idea is that people acting in their own self-interest may produce unintended consequences which, surprisingly, can serve the social good. In the example above, individuals through competition with one another push the market price towards its equilibrium value, and this value is socially desirable. However, to do this was not the intention of the individuals involved. They were just competing with one another and trading with sellers for their own private benefit. How does this analysis help with the problem of â€Å"affordable housing†? From an economic point of view, affordability is a meaningless concept. It is simply not a social objective for things to be affordable, rather the government should seek to promote competition in the housing market and then leave the market to its own devices. This conclusion of economics is striking and quite at odds with other perspectives on this problem. I will argue that affordability is an important problem, and that something fundamental is missing from the economic approach to housing. Within economics what is missing is some notion of â€Å"equity†, or a concern for how the gains from trade are distributed across different people. To illustrate this point, imagine that the equilibrium price of a house in a competitive housing market is  ¿Ã‚ ¡200,000. Then those who are willing to pay  ¿Ã‚ ¡200,000 or more for a property will get one, and the situation will be efficient from an economic point of view. However, this might not be the â€Å"ethically appropriate† way to allocate houses to people. The reason is fairly obvious. What someone is willing to pay for anything is constrained by their income. A rich person might be willing to pay more for a house than a poor person, but this does not mean that it is better th at the rich person gets the house as opposed to the poor person. This is sometimes referred to in economics as the â€Å"equity-efficiency† trade-off. This is the idea that less efficiency is the price we have to pay sometimes if we want to ensure a more equitable distribution of goods across people (Landsburg, 2002; Ch.8). Policies designed to promote affordable housing fall into this category. The people who will gain the most from them are people on low income, who cannot guarantee that they will be allocated a house through the market mechanism. 3.1.c How is the Problem of Affordable Housing Addressed? Various policy initiatives have been introduced to ameliorate the problem of affordable housing in London. These will be discussed in this section. These policies and whether they have a positive impact upon the community will also be evaluated in this section.   One such policy   takes the form of Section 106 of the Town and Country Planning Act 1990 (which became operative in 1947 (Jackson, J., 1963; p.18 ), which seeks to address the problems which may arise in relation to affordable housing and the provision of local services (Monk, S. et al., 2005; p.24-27).   Where a major developer wishes to obtain planning permission for a development in a given area, it is the case that such developments will put pressure on local services such as schools or hospitals this Act seeks to ensure that some of the cost of such developments are borne by the developers who wish to develop the area (Monk, S. et al., 2005; p.24-27). Section 106 of this statute therefore provides that agreements may be reached between local planning authorities and developers in relation to planning permission, where the developer is required to make financial contributions towards the local services in the areas where the planned developments are to be built (Monk, S. et al., 2005; p.24-27). However, this statute has been criticised, especially by Kate Barker (2006; p.11), as being in drastic need to reform to make it more simple and certain. The Barker Review also recommended in relation to Section 106, that it be scaled back to address the direct impacts of developments (Barker, 2006; p.11). Also, Housing Associations in London such as the Keystart Housing Association, Tower Homes, Metropolitan Home Ownership and London Str

Butler’s Tourism Lifecycle Model Essay

Butler developed a model which shows how any tourist resort may grow. A resort may start off from being a small, low key, destination. He suggests that all resorts go through the same sort of process. The seven stages of tourist development A graph of Butler’s resort life cycle model 1. Exploration – a small number of tourists visit the area. The area is unspoilt and few tourist facilities exist. 2. Involvement – local people start to provide some facilities for tourists. There starts to become a recognised tourist season. 3. Development – the host country starts to develop and advertise the area. The area becomes recognised as a tourist destination. 4. Consolidation – the area continues to attract tourists. The growth in tourist numbers may not be a fast as before. Some tensions develop between the host and the tourists. 5. Stagnation – the facilities for the tourists may decline as they become old and run down. The numbers of tourists may decline too. 6. Rejuvenation – investment and modernisation may occur which leads to improvements and visitor numbers may increase again. 7. Decline – if the resort is not rejuvenated (stage 6) then it will go into decline. People lose their jobs related to tourism. The image of the area suffers. The Butler model is a generalisation, and so not all resorts will follow this process. Application of Butler’s Tourism Lifecycle Model to Calafell & Sitges, Spain (MEDC) Sitges and Calafell are approximately equal-sized settlements lying to the south west of Barcelona. Both rely on tourism as a major source of income and employment and the study aims to compare the relative success of tourism, in its various forms, by employing the Butler Model. 1. SITGES Sitges – a brief history Sitges is a town of approximately 25,000 people and is located about 30 km south of Barcelona. Originally occupied by the Romans on a defensive headland looking out to sea, Sitges’ port was used to trade products from the Penedà ¨s region and other places from the Roman Mediterranean. Despite its direct contact with the sea, the town had more peasant farmers than fishermen, with vineyards being the main economic activity. In the 18th century Catalonia obtained permission to trade directly with the West Indian Spanish colonies and by 1833 more than 27% of the Catalans trading with Cuba were Sitgetans. The fortunes made were invested in the purchase or repair of the town’s old houses. Sitges, although located close to Barcelona, was still hard to access at the time, but began to develop as a summer resort for taking the waters. As early as 1879, there are records showing that baths were already being used as medicinal therapy and spa enthusiasts directly became beach ent husiasts. However, it was not until 1881, with the arrival of the railway line from Barcelona, that tourism in Sitges really began to develop. With the arrival of Santiago Rusià ±ol in 1891 – one of the architects of Modernism – Sitges became the cultural centre of the modernists. In 1909, Sitges was visited by Charles Deering, a North American millionaire who converted a street in the historic core into a palace, the Palau Maricel. This palace and Rusià ±ol’s residence helped launch Sitges to tourist fame. In 1918, the Terramar garden city and the Passeig Maritim or Esplanade were constructed. Atraccià ³n de Forasteros (Tourist Attraction Company) was created in 1928 and the Tourist Information Office in 1934. From then on, Sitges would become a European tourism standard setter. Aerial view of Sitges’ historic core The Butler Model applied to Sitges 1. Sitges Discovery Sitges was discovered early by people from the city of Barcelona. It later began to attract many artists and intellectuals such as Rusià ±ol. Many wealthy Catalans also built second homes in Sitges to escape a much polluted Barcelona. Much of the early wealth of Sitges was based on trade with the West Indies and Cuba in particular. The houses on the southern part of the Esplanade reflect this Cuban influence. 2. Sitges Growth and Development The local tourist industry remained in place until the developments of the 1960’s when tourism from overseas first began to filter into the town. The development of the package holiday whereby passengers booked flights, transfers and accommodation all in one booking made places such as Sitges accessible to people from Northern Europe. Furthermore, the use of jet aircraft made such perceived epic journeys now possible in under half of a day. Sitges responded to these developments with the construction of large hotels such as the Terramar and Calipolis on the sea front. Other smaller hotels were also built, often in converted Cubanesque houses. Restaurants, shops and bars also opened to cater for the needs of the increased number of tourists who visited in the main season extending from mid-May until the end of September. 3. Sitges Success Sitges is now a major tourist resort, perceived as high status and catering for more affluent visitors. It has a wide range of 36 hotels and 12 pensions, totaling 2,540 rooms. It is popular with the gay community, many of whom holiday in Sitges during the summer season. This has added to the success of the town and is further reflected in the range of high status shops and restaurants found there. There are over 150 clothes shops and 175 bars and restaurants, four times more than expected in a town the size of Sitges. Sitges has also attracted many migrants not just to work in the tourist industry but also others to live in the town. These include wealthy people from elsewhere in Spain, as well as others from around the world. The migrants comprise of 63% from Europe and 30% from Latin America. Many of the Europeans are living permanently in Sitges while others own second homes in the town. Proximity to Barcelona airport and the advent of low-cost airlines such as Easyjet and Ryanair have been an added boost to Sitges in attracting people on short breaks. Today large numbers of the tourists are independent travellers, making all of their own holiday arrangements via the internet rather than using a High Street travel agency. This has been especially important since the economic downturn as the majority of visitors are here for short breaks only. 4 Sitges Stagnation Tourism trends change. Many of the early tourists to Sitges now looked for cheaper alternatives to places they may have visited before or become tired of. New resorts opened as the Mediterranean countries of Greece, Turkey, Cyprus and others developed their tourist potential and more established resorts such as Sitges saw a fall in their traditional client base. This phase saw holiday companies such as Thompson remove Sitges from their holiday brochures. 5 Sitges Decline or Rejuvenation The fall in the traditional tourist base has led Sitges to try to develop more sustainable strategies. Many environmental improvements are in progress and the resort has been rebranded as an all-year destination. To this end the calendar of events that Sitges offers extends well beyond the traditional holiday season. The extension of the season has been promoted with the production of a DVD with the theme ‘Sitges the art of living’. This appeals to high income professional groups to make Sitges a permanent base for multiple short breaks in the Mediterranean sun. Sitges has capitalised on its proximity to Barcelona to become one of the main destinations for Business and Conference tourism in Catalonia. Its specialised hotels in this sector include the Dolce Sitges, with over 30 meeting rooms and the Melià ¡ Sitges, with a conference hall seating more than 1,300 delegates and 16 meeting rooms. Furthermore, the Sitges Council is embarking on a project called ‘QUALIA Sitges’ to enhance tourism by exploiting what is called the ‘creative economy’. This refers to the development of activities relating to creativity, art and culture which will compliment Sitges’ tourist based economy. It aims to build upon the earlier role of Sitges as a centre of art and cu lture based upon the works of the artist Rusià ±ol in the late nineteenth and early twentieth centuries. It aims to encourage and promote cultural and artistic tradition with new technology. The project is a long term plan covering the next ten years and will see the development of a state of the art campus with a school of music and dance, a University of the Performing Arts and a Design Centre. These facilities will bring in to Sitges up to 2,000 students a year as well as a further 2000 jobs including academic staff and other professionals working in the QUALIA facility. It has been estimated that each student will spend approximately 750â‚ ¬ per month in Sitges of which 150â‚ ¬ will be on tourist and leisure facilities. Added to this are the family and friends of the students coming to see them who are expected to add a further 25,000 guest nights in Sitges and the use of the town’s tourist facilities. Therefore, Sitges can be seen as moving forward in its plans to remain a major leisure destination by diversifying to ensure long term sustainability. 2. CALAFELL Calafell – a brief history Calafell has a population of approximately 25,000 people and lies 50 km south of Barcelona. It owes its origins to a castle and occupied a defensive site on an inland hill. The name Calafell means ‘small castle’ and the earliest reference to it dates from 999AD. For years the economy of Calafell was devoted to agriculture and fishing. Like Sitges, the arrival in the late 1880’s of the railway from Barcelona led to a change in its economic fortunes. Calafell became more accessible and the development of second homes around the railway stations flourished with the 1947 Garden City project known as the Quadra de Segur. At first people lived there only during holiday periods, but now the majority of the population are permanent residents. It was not until the 1960’s that tourism began to develop strongly in Calafell, especially along the 5km of uninterrupted beach where numerous apartment buildings and hotels were constructed. With the blessing of successive city councils, a huge speculative boom in the 1970’s led to an endless row of 6-storey apartments facing the sea. Later regulations prevented excessive vertical growth whilst inland the prohibition of building over two and a half floors led to more green space and a lower population density. Today, the town of Calafell is delimited into three very distinct areas. To the north, narrow streets surround the castle and the old church. To the south, and disconnected from the historic core, the former seafront fishing village has been converted into tourist area. And to the east is Segur de Calafell, a former Garden City of second homes developed on farmland surrounding the railway station. | Calafell castle: the historic core of Calafell is disconnected from the seafront beach resort| | Calafell seafront: 6-storey apartments facing the sea| The Butler Model applied to Calafell 1. Discovery Calafell, like Sitges, benefited from the opening of the railway line but because of its greater distance from Barcelona, there was very slow development until a huge speculative boom in the 1970’s. Developers constructed hotels and apartments to take advantage of the resort’s greatest asset – its long and wide beach. 2. Growth and Development The construction of the promenade and the completion of the sea front apartments and hotels attracted families from Madrid and northern Spain, particularly in the summer months. New businesses opened to cater for the needs of these people. 3. Success The 5 km stretch of coastline comprising the beach resort of Calafell became fully occupied during the high seasons of the 1970’s and 1980’s. However, Calafell never attracted the package tour operators in the way that Sitges has done and the range of hotels is very limited. 4. Problem – Stagnation The speculative boom of the 1970’s and 1980’s resulted in the destruction of nearly all of Calafell’s original seafront. The fishing cottages were replaced by an endless row of 6-storey apartments facing the sea. As a result, the seafront lacks character and charm and with the economic crisis and competition from other resorts in Spain and overseas, the number of hotel rooms has decreased by 17% in the last decade (from 1,690 in 1996 to 1402 in 2006). The immigrant population now represents 20% of the total population of Calafell, having grown rapidly in recent years. However, Calafell has not attracted large numbers of wealthy people from elsewhere in Spain and Europe in the way Sitges has. Instead, approximately 50% of the immigrants are from North Africa, settling in the area of Segur de Calafell. Calafell thus seems to be in stagnation or decline mode. Calafell: only one cottage from the original seafront remains today 5. Decline or Rejuvenation Like Sitges, the fall in the traditional tourist base has led Calafell to try to develop more sustainable strategies. Many environmental improvements are in progress and the resort has been rebranded as an all-year destination. However, tourism in Calafell has taken a rather different path to Sitges. The family-orientated nature of the resort has been promoted, with Calafell earning the ‘Family Holiday Destination certificate’ from the Catalan government in 2007. This recognised the family-oriented accommodation, restaurants and a range of leisure activities provided. Calafell has a Children’s Club in the summer months and, like Sitges, has a tourist train running along the sea front and a second linking the beach area with the historic core inland. Calafell has helped pioneer the trend for more active holiday pursuits and in 2008 became the first resort in Spain to offer Nordic walking. This, together with trekking and mountain biking are provided free of charge, with certified guides. However, despite adopting the slogan ‘Calafell tot l’any’ (‘Calafell, all year’), the resort has struggled to extend the tourist season as effectively as Sitges. Calafell’s 2009 Municipal Urban Plan (POUM) seeks to stop the uncontrolled urban growth of the town, protect the natural and historical heritage and maintain and enhance the tourism that forms its economic base. Calafell needs to widen its tourism offer and new economic activities need to be attracted to diversify its economy if it is to avoid becoming a dormitory town for Barcelona. It can therefore be seen that both Sitges and Calafell cater for tourists but are two very different towns. The proximity of Barcelona has enabled Sitges to grow much more rapidly and diversify its tourism more effectively than Calafell with the result that the two towns have developed and evolved in different ways.

Practice Final Exam Eng-092

Practice Final Exam Eng-092 Part 1: In this section of the final exam, you will be asked questions about Active Reading Strategies. You will need to know the definitions of each one in order to answer the questions on the final exam. As a way of preparing, test your knowledge of each strategy by defining or describing each one in the space below. Prediction – making educated guesses; guessing about thoughts, events, outcomes, and conclusions. Predictions are confirmed or denied, and the reader makes new predictions.Questioning/Wondering – ask questions based on material in the text. Read with an eye toward finding answers to questions. Summarizing – putting a text’s main ideas and main supporting points into one’s own words. Visualizing – words and ideas on the page trigger mental images that relate directly or indirectly to the material. Making Connections – relate existing knowledge to new information in the text Part 2: Read the fol lowing passage in the left column. In the Think-Aloud section in the right column, read the thoughts of someone who has already read this passage.Next, in each blank, identify the reading strategy this reader activated while reading the passage, â€Å"Chicago and Cleveland. † Chicago and Cleveland (1) Chicago, at the southern tip of Lake Michigan, is a port city. (2) It is also an important commercial (3) and industrial center of the Midwest. It is well known for its educational, cultural, and recreational centers. Chicago draws thousands to its concert halls, art museums, and sports arenas. (4) Cleveland, on the south shore of Lake Erie, is also a port city and a commercial and industrial center important to its area (5). Feature Article Fin 486 Final ExamLike Chicago, it has several important educational, cultural, and recreational centers. It has colleges and universities, and a distinguished (6) symphony orchestra. It has one of the finest art museums of the world, and many recreational centers. The location of the two cities contributed to their growth, but this similarity is not enough to explain the wide social diversity(7) (8). [Adapted from Smith, Breaking Through, 7th edition, p. 191] Think-Aloud (1) As I read the title, I ask myself if it’s a passage about how Chicago and Cleveland are alike. – PREDICTION 2) I can imagine ships docking at the ports. – VISUALIZING (3) Does â€Å"commercial† mean â€Å"business†? – QUESTIONING/WONDERING (4) I have been to many of the concert halls, museums, and sports arenas in Chicago. – MAKING CONNECTIONS (5) It seems like the author is going to compare Chicago and Cleveland. – PREDICTION (6) What does the word â€Å"distinguished† mean? – QUESTIONING/WONDERING (1) I’m confused by the words â€Å"social diversity. † I reread the sentence, and realize the author is not just comparing the locations, but the social opportunities in both cities. – QUESTIONING/WONDERING (2) 3) This passage explains how these two cities have so much in common. It’s not only their locations that make them alike, it’s also their social diversity. – SUMMARIZING (4) Part 3: In this section, while reading the following passage, record the reading strategies you apply in order to construct meaning in the Think-Aloud column. Identify and explain each of the strategies you apply and indicate the number of the paragraph in which you apply each strategy. Write notes in the margin and underline parts of the text as you read, to help show your strategies. Beauty and the BeefWhen was the last time you opened a carton in a fast food restaurant and found a hambur ger as appetizing as the ones in the TV commercials? On television the burger is a magnificent piece of flame-broiled beef. It is topped with crisp lettuce, bright and delicious red tomatoes, tangy onions, and plump pickles. All of this is between two halves of a gigantic sesame seed bun. But of course, the real-life Whoppers can’t compare to what you see on TV. (Par. 1) When making a Burger King commercial, an advertising agency spends at least one full day filming the food.A food stylist prepares the frozen beef patties for the camera. The filming crew first spends two hours setting up lights that will flatter the burger. The stylist begins burning â€Å"flame broiling stripes† into the hamburger patties by using a special branding iron. The stylist then paints the stripes with a dark steak sauce. Next, the stylist sprinkles salt on the burger so that when it passes over the flames, natural juices will rise to the meat’s surface. (Par. 2) Once branded, retouch ed, and juiced, the director films the burgers from different angles as they move along a conveyor-belt broiler.When the meat is broiled, blood rises to the surface in small pools. The stylist dabs at the bubbling blood with a Q-tip so that is doesn’t look undesirable to TV viewers. (Par. 3) Before the patty passes over the flame a second time, the stylist maneuvers a small electric heater about an inch above the burger. This heats up the natural fatty juices until they begin to steam and sizzle. Otherwise, puddles of grease will cover the meat. (Par. 4) Think-Aloud (page one) (Par. 1) PREDICTION (Par. 2) VISUALIZING (Par. 3) QUESTIONING/WONDERING (Par. 4) MAKING CONNECTIONSIf you look at a real Whopper closely, you’ll discover that the flame-broiling stripes are only on the top side of the beef patty. Hamburgers are sent through the flame-broiler once and never flipped over. But on television commercials, the beef patty is fetchingly covered with flame-broiled stripes . (Par. 5) The camera crew has five or ten seconds to capture a good, sizzling, beef patty on film. After that, the hamburger starts to shrink quickly. Out of one day’s work, an agency hopes to get five seconds of film footage. Most of the time the patties are too raw, bloody, greasy, or small. (Par. ) In the final shot of the filming, the stylist has carefully nudged and manicured the ingredients so that they sit just right on the top of the burger. The lettuce and juicy red tomatoes are cut, trimmed, and then piled on top of a cold, cooked hamburger patty. It is then sprayed with a mist of glycerin to make it glisten. Finally, the hamburger is topped with a sesame-seed bun. The stylist positions each seed on the bun. He dips a toothpick in glue and, with a tweezers, places about 300 seeds, one by one, onto a bun. When it’s over, the crew packs up the equipment, and seventy-five hamburgers are dumped in the garbage. Par. 7) [Adapted from Smith, The Lifelong Reader, 20 04, pp. 163-165] Think-Aloud (page two) (Par. 5) MAKING CONNECTIONS (Par. 6) VISUALIZING (Par. 7) SUMMARIZING Part 4: Thesis Statement and Main Idea. Reread the passage on Beauty and the Beef. This time, however, you will first identify the stated or unstated main idea of each paragraph. Second, state the thesis statement of the passage. Beauty and the Beef When was the last time you opened a carton in a fast food restaurant and found a hamburger as appetizing as the ones in the TV commercials?On television the burger is a magnificent piece of flame-broiled beef. It is topped with crisp lettuce, bright and delicious red tomatoes, tangy onions, and plump pickles. All of this is between two halves of a gigantic sesame seed bun. But of course, the real-life Whoppers can’t compare to what you see on TV. (Par. 1) When making a Burger King commercial, an advertising agency spends at least one full day filming the food. A food stylist prepares the frozen beef patties for the camera. The filming crew first spends two hours setting up lights that will flatter the burger.The stylist begins burning â€Å"flame broiling stripes† into the hamburger patties by using a special branding iron. The stylist then paints the stripes with a dark steak sauce. Next, the stylist sprinkles salt on the burger so that when it passes over the flames, natural juices will rise to the meat’s surface. (Par. 2) Once branded, retouched, and juiced, the director films the patties from different angles as they move along a conveyor-belt broiler. When the meat is broiled, blood rises to the surface in small pools. The stylist dabs at the bubbling blood with a Q-tip so that is doesn’t look undesirable. Par. 3) Before the patty passes over the flame a second time, the stylist maneuvers a small electric heater about an inch above the burger. This heats up the natural fatty juices until they begin to steam and sizzle. Otherwise, puddles of grease will cover the meat. (Par. 4) If you look at a real Whopper closely, you’ll discover that the flame-broiling stripes are only on the top side of the beef patty. Hamburgers are sent through the flame-broiler once and never flipped over. But on television commercials, the beef patty is fetchingly covered with flame-broiled stripes. Par. 5) The camera crew has five or ten seconds to capture a good, sizzling, beef patty on film. After that, the hamburger starts to shrink quickly. Out of one day’s work, an agency hopes to get five seconds of film footage. Most of the time the patties are too raw, bloody, greasy, or small. (Par. 6) In the final shot of the filming, the stylist has carefully nudged and manicured the ingredients so that they sit just right on the top of the burger. The lettuce and juicy red tomatoes are cut, trimmed, and then piled on top of a cold, cooked hamburger patty.It is then sprayed with a mist of glycerin to make it glisten. Finally, the hamburger is topped with a sesame-seed b un. The stylist positions each seed on the bun. He dips a toothpick in glue and, with a tweezers, places about 300 seeds, one by one, onto a bun. When it’s over, the crew packs up the equipment, and about seventy-five hamburgers are dumped in the garbage. (Par. 7) [Adapted from Smith, The Lifelong Reader, 2004, pp. 163-165] A. Identify the main idea of each paragraph. (Par. 1) There is a difference between what we see in TV commercials and reality when it comes to fast food. Par. 2) â€Å"When making a Burger King commercial, an advertising agency spends at least one full day filming the food. † (Par. 3) Great effort is made during filming to remove anything that the TV viewer would find unappetizing. (Par. 4) Great effort is made during filming to ensure that the food’s worst characteristic—fat—is removed from the commercial. (Par. 5) The biggest difference between TV and reality is that the real burgers have grill marks on only one side because r eal burgers are never flipped, while the commercial shows the burger being flipped over an open flame. Par. 6) The agency hopes to get five seconds of footage, but most of the time, the burgers show their true nature: they’re too raw, bloody, greasy, or small. (Par. 7) While huge efforts are made to make the burger look as delicious as possible, at the end of the day, a massive amount of food waste is the main result of making a TV commercial. B. State the thesis of this passage. TV commercials for fast food use hours of studio time, specialized techniques, and nearly one hundred real burgers to create an unrealistically ppetizing image of a fatty, greasy product: it’s all about appearances, while reality is ugly and filming is wasteful. Part 5: Answer the following comprehension and vocabulary questions by circling a, b, c, or d. 1. The author explains that most of the work on the burgers being filmed in the commercials is done by a a. professionally trained food styl ist. b. chef. c. make-up artist. d. special-effects person. 2. The author explains that, while salting the patties encourages natural juices to rise to the meat’s surface, it also a. makes the burgers inedible. b. darkens the meat. c. auses blood to rise to the surface in small pools. d. dries out the meat. 3. The author’s point of view seems to be that a. advertising is an exciting field, requiring the work of many specialists and experts. b. the making of a fast-food commercial is expensive, wasteful, and not particularly honest. c. Burger King’s ads are works of genius. d. people should not eat hamburgers, no matter how good they look on TV. 4. The author explains that the hamburger in the final shot looks so perfect for all of the following reasons except a. the ingredients are put onto the front part of the burger. . the food stylist has carefully glued each sesame seed on the bun. c. burger is sprayed with glycerine. d. the burger is actually made with 50% more beef. 5. Hundreds of beef patties are wasted during the filming of a commercial. a. True b. False c. Can’t tell from the information given in the passage. 6. â€Å"and found a hamburger as appetizing† (Par. 1) In this sentence, appetizing means a. tempting b. nutritious c. large d. shiny 7. â€Å"Thus branded, retouched, and juiced† (Par. 3) In this sentence, retouched means a. dabbed b. made-up or improved c. cooked d. andled 8. â€Å"the food stylist maneuvers a small electric heater† (Par. 4) In this sentence, maneuvers means a. encounters b. designs c. purchases d. moves into place 9. â€Å"fetchingly covered with flame-broiled strips† (Par. 5) In this sentence, fetchingly means a. completely b. attractively c. visibly d. carefully 10. â€Å"carefully nudged and manicured the ingredients† (Par. 7) In this sentence, manicured means a. handled b. repaired c. painted with polish d. carefully trimmed Part 6: Answer the following multip le choice questions by circling a, b, or c. 1. â€Å"Who’s† is a. ossessive case of root word, showing that third person owns or possesses something b. contraction of root word and â€Å"is† c. possessive pronoun, meaning that second person owns or possesses something 2. â€Å"Wear† is a. past tense of â€Å"are† b. in what place? c. to have on one’s body 3. â€Å"Their† is a. contraction of root word and â€Å"are† b. possessive pronoun, meaning that a third person owns or possesses something c. location 4. â€Å"Cite† is a. sense of vision b. a place or location c. to credit a source 5. â€Å"Since† is a. because b. money or change c. to feel, hear, taste, see, or smell somethingPart 7: Write a thesis statement, including your main supporting points, for the following topics: (Answer Key Note: Student should write an argumentative thesis statement that, crucially, includes several supporting points explaining hi s/her stance. ) 1. The United States should/should not place a â€Å"fat tax† on foods that have a low nutrition-to-calorie ratio. The United States should place a â€Å"fat tax† on foods that have a low nutrition-to-calorie ratio because people who eat those foods often are at a greater risk for terminal diseases, so paying more for the food might help them to make better choices for their health. 2.Physician-assisted suicide should/should not be an option for terminally ill people. Physician-assisted suicide should be an option for terminally ill people because our prohibition on end-of-life choice is based on religious superstition and denies free, conscious adults a basic right to dictate how they live their lives until the end of life. 3. Every country in the world should/should not enforce a two-child limit on parents. Every country in the world should enforce a two-child limit on parents because the human population is growing out of control and humans are destr oying the environment for all other creatures—and ourselves.Part 8: Read the following sentences and decide how you can order them in order to create a strong organization for a paragraph. 1. To illustrate, a French male is likely to stand closer to you than a British male, even if they had equally positive attitudes toward you. 2. A set of useful guidelines has been developed for estimating how close to stand to another person (at least in many cultures). 3. Cultural differences must be kept in mind in interpreting nonverbal cues. Answere: 3, 2, 1

Dr. Martin Luther King Jr. - 1284 Words

For as long as groups of people found the need for leaders, whether it was in armed conflict or for managing the needs of the community and organizing the activities of a business, scholars and others have sought to identify what qualities make for good a leaders. Many believe that they know a great leader when they see them but they may be unable to say why in some cases. Across time there have been many leaders, who by dint of the charisma, were able to marshal millions people for follow them in their cause as was the case for Dr. Martin Luther King Jr. or Mohandas Gandhi. Most began with the trait approach which sought to identify which characteristic great leader had. Later study moved to an assessment of the skills required for good leadership which could then be taught to others who were assigned leadership positions. 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