“In assisting the gentrification process, the state incentives and offers various forms of support to private developers, giving birth to state-sponsored gentrification under market transition” (He, 2007, p.177). A strong statement posted by He, stating gentrification in Shanghai is motivated by the State institution, and also, part of the local economic and urban growth regime. This academic article is slightly differed from other studies that they are, usually looking at the detail socio-economic aspect change. The author argues urban redevelopment in Shanghai will not happened without the policy intervention of the state in regards to mobilizing certain resources (such as partially exempted land use fee) to attract land and housing investment ( due to the high revenue return). There are few interesting data in the article showing some general large urban regeneration information such as – (1) the institutional change under market reformations, (2) similarities of strategies in both case study of redevelopment project developed by private developer, (3) the amount of residential relocation and housing demolition in Shanghai, (4) and also, the whole rapid urban image renewal in new infrastructure and green space investment. Most of the revealed information are traced back from the period of rapid urban change, which are between year 1995 to 2005. At the end of the article, He demonstrated an interesting comparison between two models of gentrification, which are advanced market economies, and market transitional in China.
Figure 1. Selling the Culture of the Old Shanghai – Location of Taipingqiao. Source extracted from the article State-sponsored Gentrification Under Market Transition The Case of Shanghai (He 2007)
Figure 2. Reimaging the Waterfront – Location of Zhongyuan Liangwangcheng. Source extracted from the article State-sponsored Gentrification Under Market Transition The Case of Shanghai ( He, 2007)
For further readings, please see State-sponsored Gentrification Under Market Transition The Case of Shanghai by Shenjing He in Urban Affairs Review 2007 vol. 43(2): p.171-198.