Spatial insights of land dispossession in the urban ...

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production of surplus value, and so threaten the capacity to realise surplus value in the market, or keep effective demand strong in the market by empowering ...
Spatial insights of land dispossession in the urban and rural Greece Balaoura Olga Velegrakis Giorgos (1)Introduction Since 2010, Greece became the epicenter of the global crisis. The implementation of extreme unpopular austerity measures lead to the deterioration of working conditions and the massive privatization of public and social assets. These developments caused the de-valorisation of private and public land including landrelated resources. This paper uses the examination of two pivotal Greek cases of land dispossession, during the crisis period, to uncover how this process is currently taking place in the country.  The first case examines the process of speculative land dispossessions, in terms of size and value in the inner city of Athens. It investigates the interest in land investments after 2000, how such land grabs take place and what the role of land in central urban areas may be in crisis-ridden Athens.  The second study refers to Halkidiki where local communities are mobilizing against the transformation of their land into an open cast gold extraction mine. By deploying two different case studies of land grabbing in the urban and rural Greek territory, we aim to reveal the key role of space at different scales into the “liquid” conjuncture we live today. Some theoretical insights (2)According to Harvey (2014): “As capital flows, it passes through two major checkpoints where its performance in achieving that quantitative increase which lies at the root of profit is registered. in the labour process or its equivalent, value is added through work. But this value added remains latent rather than actual until it is realised through a sale in the market. The continuous circulation of capital depends upon the successful passage (with success measured as the rate of profit) through the two moments of, first, production in the labour

process and, second, realisation in the market. The unity that necessarily prevails between these two moments within the circulation process of capital is, however, a contradictory unity. (…) Capitalism as a social formation is perpetually caught in this contradiction. it can either maximise the conditions for the production of surplus value, and so threaten the capacity to realise surplus value in the market, or keep effective demand strong in the market by empowering workers and threaten the ability to create surplus value in production.”

This dualism or contradictory unity shows the importance of the realization of value which is always geographically oriented and determined. This is how geography, space and especially land come into the game. According to Swyngedouw (2012) land rent is one of the most powerful and contradictory aspects of the political economy of capitalism: “Not only does it pit landed capital against productive and interestrating capital (and its associated intra-class conflicts) but it also shapes the conflicts between land for reproductive use (in housing or subsistence agriculture), land for resource exploitation (or ecological reserve), land as a form or capital investment (for landowners), land as a productive asset (comparable to other means of production) and land as a form of fictitious capital that circulates as a purely financial asset (for financial capital)”. (3)These starting theoretical points bring us to the current situation

where: 1. Global decline of wage share in output (= increase in profit+rent share). Where does all this money capital get placed? – In some places > mineral extraction – elsewhere > manufacturing production – elsewhere > pursuit of rent through land and property ownership or development, reinforced with debt 2. Capitalism is in its “rentier phase”, where land is not used for production but speculation and financialisation? (Wedekind, 2015) (4)Crisis, austerity and land dispossession in Greece

Crisis Statistics during the last years in Greece are unequivocal and show the huge recession of economy and its impact on the society within the debt crisis. The indicies shows that austerity works largely as a strategy to squeeze the direct, social, and differed wage in benefit of both domestic and international capital. Hadjimichalis (2014) comments ironically that the only success story of austerity in (5)Greece has been the de-valorization of land and land-related resources, besides that of labour power. As a result, land dispossession is becoming widespread. On one hand, this became possible due to the current crisis in which land and housing lost 20–35% of their commercial value since 2008 (Hadjimichalis, 2014); On the other hand, it was due to the permanent conditions of exception introduced by Memoranda, which imposed massive public land privatizations. So, to sum up within the crisis framework austerity policies have been implemented not as an irrational policy repertoire but as a receipt to facilitate capital accumulation over labour cost with specific spatial implications. We here argue that austerity as a governing strategy of the current crisis has been a catalyst for  land dispossession and  the exacerbation of socio-ecological problems and conflicts. (6)Athens Before the recent global recession and more precisely during the 2004 Olympics, the Greek state adopted an aggressively speculative land policy, withdrawing government regulations and restrictions, shrinking the public domain while at the same time denying access to the commons. To ensure investments, the state proceed into a “fast track” legal framework ignoring social and environmental regulations, promoting intensive development schemes that lead to a boom in the construction sector of the period. The key large-scale projects of this period were either contradicting the Metropolitan Plan (i.e. Olympic infrastructure), or they were later integrated into it. Athens became a cultural and residential industry, an optimal location for high-value businesses, a touristic (destination) occupied by the demands of a ravaged property market. Moreover, the

neoliberal ethics and the police suppression harmed collective values like those of citizenship and democracy. Since the beginning of the current debt crisis, inequalities have multiplied affirming and reproducing previous patterns of uneven geographical development. The previous neoliberal narrative, is currently articulated around the "debt repayment" project and the promise of "development" as the ultimate national target. Consequently, the new notion of debt repayment justified any kind of institutional adjustments and direct interventions of the Troika, the domestic and international economic interests in the restructuring of the spatial process: Numerous laws and planning instruments were designed for a controversial planning framework aiming directly towards a flexible body with unconditional terms for investments abolishing at the same time the public interest, the planning structures and the environmental protection. Such instruments as the “Special Plans of Spatial Development for the Public Property” (ΕΣΧΑΔΑ) and the Special Plans for Spatial Development for the Strategic Investments (ΕΣΧΑΣΕ) provide among others, land use and density regulations for the development of all state owned real estate property. (7)The key role to the readjusted institutional system and massive land dispossession processes was held by the Hellenic Republic Asset Development Fund (HRADF- TAIPED). TAIPED, imposed and supervised by Troika, was established in 2011 in order to comply the fiscal targets of the adjustment programs as repayment of the national debt. The fund, has been substantially formed for the privatization of public land, state-owned assets, infrastructure, public companies, airports, coastal fronts and, in some cases, even islands. At the same time, privatizations and potential developments are facilitated with the introduction of a special planning law which revises existing planning regulations and restrictions by releasing trespassing, declassification of protected areas/buildings, changes in land uses, decrease in the thresholds of land segmentation, etc.). Land Grabbing in Athens (8)In Athens, a major part of its cultural and economic heritage is situated (or included) in TAIPED’ s asset clearance program. TAIPED’ s portfolio includes important building stock (listed buildings, ministries, public tax agencies, the general laboratory of the state and police headquarters, buildings of great architectural and

historical importance). (9)28 of these buildings were leased- back to funds, under such scandalous processes, that the court of Audit suspended the deal. The funds have managed to significantly increase the value of their asset portfolio because of this deal, while in reality they have been endowed by the Greek state in order to boost their profitability. (10)Whatever its particular source, uneven geographical development is a contributing factor to the creation and maintenance of individual and collective inequalities and hence to social and spatial injustices (Fainstein, 2009; Soja, 2010). Along with the massive privatization of assets and the readjusted institutional system the neoliberal agenda triggered the last years numerous attempts for the inner- city’ s regeneration. These attempts took place during the imposition of a vast austerity policy, promoting a beautification of the city, at the time that the uneven spatial developments created inequalities regarding the exclusion of the most valuable social groups. These developments have caused the decline of integrated communal participation and the corrosion of social cohesion. The axion- plan for Athens and the latest Integrated Urban Intervention Plan, although are presented as an “integrated state intervention that aims to reinsure the right to a safe, sustainable, attractive and lively city for its inhabitants and visitors” it’s basic axis are the “re-conquest” of the center by the “desirable” social groups; The revitalization of the central districts by facilitating real estate projects at central devaluated areas; while the majority of the new measures are about police suppression. The Halkidiki case study The exploitation of land, but also of natural elements linked to it such as water, forests, the subsurface and biodiversity - nowadays comprise investment targets for local and international speculative capital at some unprecedented extent, intensity and geographical spread. The areas grabbed may be smaller than corresponding ones in the global South, yet they comprise an application of the same international practices, adjusted to Greek society's local characteristics. Such an attempt is being materialized at the moment in Halkidiki, northern Greece. Halkidiki is known for its wonderful beaches, which attract millions of visitors from around the world. Yet it is also historically known for its gold and silver extraction mines - and from 1950 up to the

present date, consecutive companies continue the extraction of gold in caves; despite numerous environmental problems, mining activity was tolerated by local communities, as it created employment locally. Yet the present case is different.The previous Greek governments, agreed to long-term contracts with a the Canadian company, El Dorado for the exploitation of the gold deposits for a ludicrously small sum-ceding 31.000 ha, ignoring both the devastating impact upon the environment and the health of the residents from the open cast mining. These irreversible and negative consequences have mobilised thousands of residents who protested, tried to occupy the premises of the company, clashed with the Riot Police, all the time while villages encountered tear-gas for the first time and while tens of school pupils were accused of being "terrorists".

Project data and transfer: Land grabbing at a different scale In December 2003, the assets of Cassandra Mines of TVX Hellas S.A., were transferred by law, ratified by the greek parliament, to the greek state for 11 million euros. They were sold the same day to Hellas Gold S.A. for the same price without prior economic assessment of the assets and without an open competition. The assets include:  mining and exploration concessions covering 317 square kilometers,  310 homes,  11,000 square meters of urban land,  2.5 square kilometers of land,  30,000 square meters of offices and industrial buildings,  underground mines with shafts and underground tunnels,  pumping systems,  two ore-treatment plants,  vehicles and mine machinery. The concession exempts the company from any transfer tax or other taxes and relieves it in advance from any financial obligations concerning environmental damage resulting from previous operation of mines. The european commission has decided that the terms of the contract amount to an illegal state aid in favor of the company equivalent to 15.3 million euros. The greek government immediately appealed for an annulment of the decision while the hearing of the appeal is pending to date. In March 2012, 4.1 square kilometers of

public forest was conceded for the company to begin the implementation of the mining projects. This is essentially a transfer of social surplus from the state to the company In 2007, European Goldfields ltd acquired 95% of Hellas Gold S.A. In december 2011 European goldfields ltd sold its share to the canadian mining company Eldorado Gold. corp. at the price of 1.8 billion euros. According to the greek Mining regulation the mining company has full possession of the minerals contained in the concessions granted and there are no royalties for the state.

Social mobilisations: Only some insights In March 2012, thugs hired by Hellas Gold S.A. and 30 police attacked a post set up by people who tried to protect an old-growth forest from being cut for gold mining. Fifteen people were badly injured, eight had to go to hospita and one conservationist struggled for his life. In the night of 16 to 17 February 2013, an arson attack took place on the worksite of mining company Hellas Gold (controlled by the Canadian company El Dorado) in the Skouries forest in NorthEastern Halkidiki. Equipment and vehicles were set on fire. On 7 March 2013, more than 200 fully armed riot policemen invaded Ierissos. The police used teargas in the local High School - injuring one student by a tear gas cartridge, while tens of others received first-aid. Later in the afternoon, when the house searches had been completed, the police attacked once again, with excessive use of chemicals. An 11 month old baby was hospitalized for several days with symptoms of poisoning. A demonstration of over 15.000 people followed in Thessaloniki - with the Canadian consulate as target.  

The model of socio-ecological struggle in Greece in crisis The most intensive and resilient social movement in crisis o following the methods and the content “Syntagma square movement” o Villagers accused of being terrorists o From “decent women” to “rebels” o Production of a new democratic space? o Attempt for a production of radical

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Beyond the local struggle Professor Giorgos Kallis: “What Greece experiences today is a regression from a developed to an extractivist state, similar to the process many Latin American countries underwent in the 1980s. Extractivist is a State whose sole function is to provide the global economy with cheap raw materials, often at the cost of its own people and its own development.” Kallis says it is not a coincidence that the gold - which has always been there - is dug out in this time of crisis. The crisis lowered costs by reducing the cost of labour (25%) and reducing the monetary cost of externalities: the health, visual or environmental impacts are no longer valued thanks to the troika conditions to skip the EIA. Furthermore state oppression and police violence is being legitimized in times of crisis or “exception”. Kallis: "Economic crises are necessary for creating new exploitable territories when limits have otherwise been reached. They achieve it by the devaluation of economic, social and environmental capital." Τhe hole is only the half of it (Bridge, 2009) Understanding why gold mining remains such a lucrative business activity in the first instance entails looking at how these existing gold reserves—which hold greater sway on gold’s price and supply— have circulated, and how these have changed. This means setting our sights on the political and social mediation of actors and institutions located in places far from where physical extraction takes place, and perhaps rethinking the extractive complex beyond the “hole in the ground” towards other scalar configurations that prop up gold’s extraction. (de los Reyes, 2015) New political-economic and ideological order (Svampa, 2003) The internationalisation of the state (Brand, 2013)

Conclusions This presentation leads more to open questions rather than conclusions on both political and epistemological grounds. Furthermore it brings up the issue of action and practices against land dispossession among different scales.

As Hadjimichalis (2014) points out: “Land dispossession in Greece did not commence with the crisis— and it shall not end with the exit from the Memoranda. It comprises a timeless characteristic of Greek society, with the thousands of grabbings of public land by individuals, businesses, the church, monasteries and municipalities through all sorts of illegal constructions, the invocation of nonexisting ownership titles and the timelessly severely lacking interest in the safeguarding of public interest in public property.”

Grabbings of public land and public space take place at multiple scales, enjoy an extended presence all over Greece and affect political mentalities and the everyday ethics of citizens and authorities alike, at all levels. It also affects the development and planning of Greek cities—with the constant legalisation of illegal construction and the stretching of city plans, with a parallel attempt to put to order previously dispossessed areas. Yet, whatever the intensity and scale of land dispossession in the urban and rural space is, the process will take extreme dimensions especially after the latest agreement which legitimizes further land privatizations and land dispossession mecanisms.