Easing spatial inequalities? An analysis of the anticipated effects of Urban Enterprise Zones in Brussels

Abstract

This paper offers an ex-ante policy analysis of the Zone of Economic Expansion (ZEE) in inner-city neighbourhoods of the Brussels Canal Area. It identifies the anticipated effects by scrutinizing the impact of a similar and already implemented Urban Enterprise Zone – the Zone Franche Urbaine – in the city centre Roubaix (Lille). The key question is whether the ZEE can be interpreted as a policy measure to effectively reduce spatial inequalities, or rather, as a measure that will stimulate private land rent valorization strategies with (industrial) gentrification effects. The ex-ante analysis suggests that synchronously implemented territorial policies that seek to enhance functional mixing, will undercut the ability to boost local job creation, yet will displace economic activity and reinforce uneven development within the metropolitan area. Observing this conundrum, the paper reviews the potential of policies that centre on foundational and/or ethnic economic activities that are more in tune with already existing local economic activities and labour markets, and may be more fruitful in achieving social mobility of the current residents.

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