487
18.2.1 The Private Sector and the Economy in Cities
In almost all societies in the world today, the private sector is one of the main drivers
of the FEW nexus. The private sector can be conceptualized as the portion of the
economy that is not under direct government control, generally regarded as being
composed of individuals and companies, and characterized by the intention of producing a profit. As a state-controlled economy, Cuba is the main counter-example of
strong private sector involvement, and as a result, the FEW nexus in Havana is very
distinctive. In this chapter, any example from a state-driven economy will be clearly
specified.
In most contemporary societies discussed in this chapter, the physical (and to some
extent intellectual) means of production are privately owned; the social relations of
production result from private transactions in a labor market; inputs to the production
of goods and services are bought and sold in private transactions; and the goods and
services produced are sold in private transactions. In some highly industrial and postindustrial societies, the government is a significant supplier of inputs and a significant
purchaser of goods and services, but the majority of the economy is private.
Finally, whether a society is characterized by classical capitalism, welfare state
liberalism, or neoliberalism, the driving impetus of the owners and managers of
extractive, industrial, commercial, and financial capital is to make monetary profits
and accumulate monetary wealth.
18.2.1.1 Food Systems
Food systems (see Sect. 2.3) in cities are dominated by national and transnational
food corporations. This means that decisions about food production (what, how, and
where) and distribution are heavily influenced by the profit motive and are made by
actors often spatially and socially distant from the city. It also means that food systems are characterized by very heavy physical and social infrastructures (Criterion 2).
In cities where decisions about where to locate are made exclusively by food
wholesalers, and grocery retailers are motivated only by profit, urban areas with a
high concentration of low-income individuals may have limited access to affordable
and nutritious fresh foods. Such areas are often called food deserts and are characteristic of many US cities. They are important because they violate the criteria of
criticality and affordability (Criteria 1 and 3). In some cases, research shows that
urban areas are shunned by grocery retailers despite market strength due to challenges posed by lack of suitably sized parcels, permitting, a more diverse inventory
relative to suburban standards, and the perception and reality of crime.
Further, many of the connections between FEW components occur distant from
the city under consideration. The resulting FEW Nexus interactions may occur
across an urban-rural continuum with product life cycle costs that include substantial transportation inputs, carbon footprint, and greenhouse gas emissions, giving
rise to the concept of “food miles.” While the miles food travels is not a complete
18 Cities at the Nexus
18.2.1 The Private Sector and the Economy in Cities
In almost all societies in the world today, the private sector is one of the main drivers
of the FEW nexus. The private sector can be conceptualized as the portion of the
economy that is not under direct government control, generally regarded as being
composed of individuals and companies, and characterized by the intention of producing a profit. As a state-controlled economy, Cuba is the main counter-example of
strong private sector involvement, and as a result, the FEW nexus in Havana is very
distinctive. In this chapter, any example from a state-driven economy will be clearly
specified.
In most contemporary societies discussed in this chapter, the physical (and to some
extent intellectual) means of production are privately owned; the social relations of
production result from private transactions in a labor market; inputs to the production
of goods and services are bought and sold in private transactions; and the goods and
services produced are sold in private transactions. In some highly industrial and postindustrial societies, the government is a significant supplier of inputs and a significant
purchaser of goods and services, but the majority of the economy is private.
Finally, whether a society is characterized by classical capitalism, welfare state
liberalism, or neoliberalism, the driving impetus of the owners and managers of
extractive, industrial, commercial, and financial capital is to make monetary profits
and accumulate monetary wealth.
18.2.1.1 Food Systems
Food systems (see Sect. 2.3) in cities are dominated by national and transnational
food corporations. This means that decisions about food production (what, how, and
where) and distribution are heavily influenced by the profit motive and are made by
actors often spatially and socially distant from the city. It also means that food systems are characterized by very heavy physical and social infrastructures (Criterion 2).
In cities where decisions about where to locate are made exclusively by food
wholesalers, and grocery retailers are motivated only by profit, urban areas with a
high concentration of low-income individuals may have limited access to affordable
and nutritious fresh foods. Such areas are often called food deserts and are characteristic of many US cities. They are important because they violate the criteria of
criticality and affordability (Criteria 1 and 3). In some cases, research shows that
urban areas are shunned by grocery retailers despite market strength due to challenges posed by lack of suitably sized parcels, permitting, a more diverse inventory
relative to suburban standards, and the perception and reality of crime.
Further, many of the connections between FEW components occur distant from
the city under consideration. The resulting FEW Nexus interactions may occur
across an urban-rural continuum with product life cycle costs that include substantial transportation inputs, carbon footprint, and greenhouse gas emissions, giving
rise to the concept of “food miles.” While the miles food travels is not a complete
18 Cities at the Nexus