Social And Economic Transformation Of Historical Neighbourhoods In Budapest

This paper examines the situation of inner‐city neighbourhoods in Budapest with particular reference to the post‐socialist transformation. After 1990 the political and economic transformation of the country generated far reaching changes in socio‐economic patterns within Budapest. Due to privatisation of housing, the liberalisation of the property market, and the growing presence of global capital, the inner‐city neighbourhoods have been rapidly changing their facades as well as their social milieux. Increasing concentration of corporate capital, a general decline of residential function, as well as the striking social polarisation of neighbourhoods have been the most important outcomes. This paper provides empirical evidence about socio‐spatial differentiation and the changing patterns of residential segregation in the inner‐city of Budapest. It is argued that social differentiation and polarisation of these neighbourhoods was not started by the transformation but existed before the collapse of communism. Extreme forms of segregation, including ghettoisation, are the outcome of neoliberal political and economic conditions and the weakness of the welfare state. The post‐1990 trajectory of some of these neighbourhoods and the dual character of the inner‐city strongly resembles patterns in US cities.