Chapter 8 Built Capital

Introduction to Built Capital

• Inhabitants in rural impoverished areas face significant infrastructure issues.

• Sara Johnson's Water Trouble in Knott County, Kentucky:

  • Sara struggles with her local water system, which is often dysfunctional.

  • Consequences: She must buy bottled water and drive to a laundromat, incurring extra costs and losing time.

  • The local water system's ownership changed multiple times: initially by a coal company, now by a private entity from another state.

• Carl Jones in Hebron, Nebraska:

  • Expands his delivery route by forty miles due to a collapsed bridge, adversely affecting his vegetable business.

  • Hesitation about the county's plans for bridge replacement increases costs and burdens his income.

• Emily Bailey and Jim Smothers in Scottsburg, Indiana:

  • Moved from Chicago to enjoy rural life, but face challenges with inadequate dial-up internet, hindering their business capabilities.

  • Major telecommunications providers do not find sufficient profit in rural expansion, leaving residents without modern services.

Challenges Connected to Built Capital

• Economic implications: Extra expenses (for water and travel) threaten individual financial independence.

• Communities face challenges:

  • Knott County struggles to attract businesses due to lack of basic services.

  • Hebron’s vegetable farmers can't efficiently market their produce due to infrastructure issues.

  • Scottsburg falls behind technologically, unable to capitalize on new opportunities.

• Definition of Built Capital:

  • Refers to community infrastructure such as water systems, roads, and technology that affect daily life and economic health.

  • Quality and availability of this capital play a vital role in how communities function in the new economy.

Built Capital Dynamics

• Impact of Built Capital and Social Capital:

  • Concentrating on just built capital while neglecting social capital can lead to issues like rural gentrification, making it unaffordable for long-time residents.

• Case study from upstate New York (1990s):

  • Built capital investments in tourism negatively impacted local communities if community capacity to strategize and adapt was ignored.

• Government and Private Investments:

  • Rural towns incentivized construction of ethanol plants and prisons as economic strategies without guaranteed local benefits.

  • Job creation and economic growth promises are frequently unfulfilled, as observed in Rush City, Minnesota, where a prison did not support local businesses.

Issues Related to Boomtowns and Built Capital

• Example from McKenzie County, North Dakota:

  • Fast population growth due to oil boom complicates the need for adequate water supply and housing.

  • Strain on existing infrastructure leads to high costs for living and essential services.

Built Capital Definition

• Definition of Built Capital:

  • Comprises permanent physical installations and facilities necessary for productive community activities.

  • Includes infrastructure like transportation systems, utilities, water supply, public buildings, and recreational spaces.

• Role of Built Capital in Economic Health:

  • Infrastructure must support actual economic needs for communities to thrive; mere presence is not sufficient.

Access and Consumption

• Two key dimensions in Built Capital:

  • Access: Can be exclusive (limited access) or inclusive (available to all).

  • Consumption: Can be joint (multiple users simultaneously) or rival (one user limits use by others).

• Examples:

  • Exclusive access: Utilities like water and electricity.

  • Inclusive access: Public parks.

  • Joint consumption: Public goods like streets; rival consumption: clean water.

Types of Built Capital

• Classification of Built Capital:

  • Four categories based on access and consumption:

    • Private Goods: Exclusive access, rival consumption (e.g., landfills).

    • Toll Goods/Services: Exclusive access, joint consumption (e.g., toll roads).

    • Common-pool Goods: Inclusive access, rival consumption (e.g., schools).

    • Collective Goods: Inclusive access, joint consumption (e.g., public parks).

• Community Choices:

  • Decisions on providing built capital reflect the community's values, economic capabilities, and priorities.

Public vs. Private Provision

• Differences in Provision:

  • Built capital can come from public or private sectors, affecting control and access.

  • Local governments often provide essential services to maintain public health and safety—like water supply and waste disposal—but may also partner with private entities.

• Challenges with Monopolies:

  • Issues arise with monopolies controlling services, potentially leading to inefficiencies and lack of competition.

Provision Types of Built Capital

• Public vs. Private Delivery:

  • Each has implications for how services are provided and funded.

  • Private firms aim for profitability, which may limit access in lesser populated areas.

Solid Waste Management Challenges

• Solid Waste as Built Capital:

  • Includes collection and disposal; often sees a shift from public to private control due to increased demand and profit opportunities.

• Economic Ventures in Waste Disposal:

  • Increased participation of private firms leads to potential conflicts with local residents over health risks and environmental pollution.

Common-Pool and Collective Goods

• Only the Public Sector Typically Provides:

  • Collective goods, as they are universally accessible and not profitable to private entities.

  • Common-pool goods can be exclusive if a fee is imposed, limiting access.

Community Choices and Values

• Community Decision Making:

  • Reflect the values of local decision-makers regarding public and private sector roles.

  • Emphasizes both profit-driven (formal rationality) and values-based (substantive rationality) perspectives on infrastructure choices.

Water Systems as Public Good

• Public perception of Water Access:

  • Expected to be available as a right; can be manipulated by market forces.

• Maintenance of Aging Systems:

  • Many rural water systems are decades old and require updates; estimated funding needed exceeds budgets available.

Water Quality Concerns

• Quality Issues in Knott County:

  • Contamination of water supplies from industrial runoff and poor infrastructure leads to health risks for residents.

Wastewater Treatment and Challenges

• Wastewater Complexity:

  • The treatment process is critical for community wellness and environmental standards; rural areas struggle with outdated systems.

Community Involvement in Water Quality

• Citizen Advocacy:

  • Local groups push for better management practices for water quality improvement and enforcement of clean water laws.

Local Responses to Waste Management

• Community Definitions of Waste Management:

  • Various local groups attempt to negotiate their waste disposal needs against rising costs and environmental concerns.

The Hidden Costs of Landfill Operations

• Case Study on Dunlap Road, Georgia:

  • Reports from local residents on health impacts and environmental risks reveal ongoing community hazards due to poor waste management practices.

Municipal Solid Waste Statistics

• Generation and Recycling Data (2010):

  • Increase in recycling efforts, yet solid waste generation remains problematic and requires systemic change.

Waste Disposal as an Economic Venture

• Utilization of Abandoned Lands for Landfills:

  • Examples illustrate both the profitability and risks associated with developing landfills in rural settings.

Environmental Responsibility and Waste Management

• Financial vs. Environmental Costs:

  • Private companies face incentives to minimize their financial responsibilities while communities shoulder the long-term costs.

The Ongoing Evolution of Waste Management

• Community Responses to Waste Disposal:

  • Opportunities for communities to organize against private waste management decisions and advocate for local control.

Rural Communities and State Support

• Policies Affecting Built Capital:

  • Rural areas increasingly rely on state and federal support amidst declining local tax revenues, challenging the sustainability of rural infrastructure.

The Importance of Transportation Infrastructure

• Transportation Critical for Rural Economy:

  • Issues folks face regarding bridges and roads impact accessibility for transporting goods and services.

Public Transportation Decline

• Transportation Deregulation Effects:

  • Deregulation has hurt access to public transport, leading to economic isolation among rural residents.

Telecommunications and Connectivity Challenges

• Internet Access Disparities:

  • Rural areas lag significantly behind urban areas in broadband access, leading to economic disadvantages.

Federal and Community Roles in Telecommunications

• Government Intervention Critical:

  • The public sector must step in to support telecommunications infrastructure in rural communities.

Funding Infrastructure Projects**

• Local Governments' Financial Challenges:

  • Rural areas often lack the economic base to support necessary infrastructure investment.

Collaborative Approaches to Infrastructure Funding

• Examples of Successful Partnerships:

  • Creating special districts or shared resources can alleviate some financial burdens on small, rural communities.

Motivation for Local Infrastructure Development

• Community Engagement and Advocacy:

  • Communities must actively engage in seeking improvements for essential services.

Built Capital Summary

• Built capital encompasses infrastructure supporting community productivity (e.g., roads, utilities).

• Infrastructure must be maintained and developed to ensure long-term community viability.

Types of Built Capital

• Four types are identified: Private, Toll, Common-Pool, and Collective—each with unique access and consumption characteristics.