Proceedings of 33rd International Business Research Conference
4 - 5 January 2016, Flora Grand Hotel, Dubai, UAE, ISBN: 978-1-922069-94-8
Istanbul: As the Capital of Mega Projects and Investors in
Global Context
Tuba Sari*
One of the major transformations caused by the industrial revolution,
technological developments and globalization is undoubtedly
acceleration of urbanization process. Globalization in particular is one
of the major factors that trigger this transformation. In this context,
globalization is compared to a multi-dimensional transformation
projects. The role of third world megacities in socio-economic and
cultural geography is highly important due to spatial economy in world.
On the other hand, in the framework of a global world, the
restructuring process that the third world economies enter have found
reflection in the practice of urban and architectural development. Third
world metropolises have become almost show stage of growth,
development, and demonstration. The changes observed in residential
architecture after 2000, while focusing on the character of the city of
Istanbul in third-world identity, economic and socio-cultural data will
attempt to read. In Istanbul, it is a fact that the urban development
accepting the superiority of economy and supporting investment in the
central business area is quite changed with the development of the
service sector. With unplanned population growth observed in urban
scale, different life styles and forms have emerged within the same
city. Entrepreneur plans and projects produced in the housing sector
is an important phenomenon encountered in developing countries,
especially in Istanbul. At first urban rents at the hands of small
entrepreneurs has been replaced by the interest of large capital in
recent years. After the period apartment living seen as a symbol of
life of luxury, especially for some rising living standards, proposing to
impose an ideal home conception, homogeneous and elite life in sites
far from the city close to nature seem to gain importance. So, the aim
of this paper is examining transformation forms of housing
development in Istanbul with the help of economic, social and cultural
parameters.
Field of Research: Economics
1. Introduction:
How the City of Istanbul is Globalized? : Rhetoric and Projects
Globalization has been interpreted as fluidization of goods, capital and knowledge on a
global scale by Sassen (2000) who connects theory of "Global Cities" to the two main
factors such as economic globalization and organizational structure of service sectorsfinance. On the other hand, there is an intense spatial competition to rise to top
positions in the global urban hierarchy and cities are ranked in a hierarchical order
global scale. Within the framework the encouraging socio-economic urban
development policies of central and local government, third world metropolises have
become almost demonstration stage of growth, development, and imagery. In this
respect, countries have changed the existing government programs and articulated the
network of economic, social, cultural and technological globalization with the projects
they produce. Since 1980s, with the influence of a rapid process of globalization, urban
*Res. Assist. Tuba Sarı, Department of Architecture, Istanbul Technical University, Turkey,
Email : tugsar@gmail.com
Proceedings of 33rd International Business Research Conference
4 - 5 January 2016, Flora Grand Hotel, Dubai, UAE, ISBN: 978-1-922069-94-8
studies have begun to be associated with the global economy. And, the work focuses
on the process of urban change has been constructed on a spatial plane take not
account of national boundaries (Friedmann, 1985). This first leg of globalization
experienced in the 1980s is followed by 1990s and 2000s with the unstoppable rise of
the service sector. In this respect, come to the fore in the global economy as a third
world capital, the city of Istanbul exhibits a dependency relationship especially with the
centers around the country. Considering the growth of vertical intense construction on
the theory of “Global Cities”, these structures reflect the qualities of entrepreneurial
project, as spatial results of the hierarchical structure created by the global economy
which is common in the world on the macro scale. Herzog admits the cause of this shift
in urban studies like that:
“Towards the end of the 20th century, it is understood that cities are deeply affected by
world system and cannot be perceived as a product of the national culture. As a result
of this change, to think the city as part of a wider system and especially to perceive it
as a complement of the process of globalization, has prevailed rather than to define the
city as only large population groups. In the last century, although not all on the
relationship between globalization and cities, several studies had been on cities having
large and distinct qualifications and many concepts are brought to the literature that
seeks to identify which of cities. Imperial cities, the primary cities (primantecities), large
industrial cities, millionaire city, international financial centers, the global capitalist
cities, mega cities, world cities or global cities are best known of these concepts
(Beaverstock vd., 1999:445)”.
Based on the hypothesis of Friedmann(1985), Douglass (1999) has been systematized
the followed process of becoming “world city” and revealed, with the help of a chart,
how the spatial size under the city’s control is expanding up to a global scale due to the
gained presence of various functions. Douglas (1999) firstly has ranked a variety of
functions that world cities should have.
- The function of finance (banking, insurance, capital, real estate),
- The function of being management centre to international companies,
- Global services (education, advanced technology etc.)
- The function of transport (active worldwide airport and ports, high-speed train),
- Information function (creativity / innovation, publishing, film),
- Political and ideological function (the perfection of the state-economy and society
relations),
- Cultural function (Cultural production and propagation),
- To host exceptional events (Olympics, world fair, music concerts, congresses).
Within the framework the encouraging socio-economic urban development policies of
central and local government,
third world metropolises have become almost
demonstration stage of growth, development, and imagery. In this respect, countries
have changed the existing government programs and articulated the network of
economic, social, cultural and technological globalization with mega projects and
rhetoric produced.
2. Literature Review:
Istanbul: As the Immutable Intersection of Vast Mobilities
In respect to Douglass theory based on some principles to become “World City”, the
function of finance (banking, insurance, capital, real estate) and the function of being
management centre to international companies are significant parameters in the global
framework. The most recent economic boom in Turkey has occurred between 2000
and 2009. The growth of Istanbul this time around has been much more planned and
Proceedings of 33rd International Business Research Conference
4 - 5 January 2016, Flora Grand Hotel, Dubai, UAE, ISBN: 978-1-922069-94-8
mostly through formal housing settlements developed by both the public and private
sectors en masse. The population increase is as substantial as the previous ones,
within ten years the city has grown from 8.8 million to 13 million. This period also marks
the full integration of Turkish economy to global markets. According to Urban Age
(2009) records, Istanbul is being called the immutable intersection of vast and diverse
mobilities. At first trend concerns the flows of capital: Istanbul is at the centre of
geography of capital flows that stretches both East and West (Figure 1).
Figure 1. Foreign direct investment and international firms in Turkey (Urban Age,
2009).
Istanbul: As Global Project of the Government
“In the context of Turkey’s accelerating membership negotiations with the European
Union, and the popularity of the neo-liberal outlook within AKP (Justice and
Development) government, a more confidently outward-oriented, globalising and
liberal-minded Istanbul has been emerging over the last decade (Urban Age,2009)”.
Especially after the successful liberalisation of the Turkish economy, it was understood
that the city served as the gateway to the country and perhaps to the greater region.
And this crucial role could not be jeopardised. Thus the new found understanding with
Ankara facilitated the transition from an informal, unstructured and insufficiently
institutionalised globalisation towards a more formal and deliberate platform which
invited agents of global networks into the city. Following the political ascendancy of
AKP to central government in 2002, the former Mayor of Istanbul (now the Prime
Minister) reinforced this strategy to position Istanbul on the global stage. Istanbul’s
political and ideological function reflects itself with some central governmental bodies
such as the Mass Housing Administration having direct links to the government. One of
the most important political figures in Turkey is the Metropolitan Mayor of the Istanbul
Metropolitan Municipality. In an effort to enhance coordination between the various
departments of the Metropolitan Municipality to help develop the city’s master plan, the
Mayor set up the Istanbul Metropolitan Planning and Design Center (Figure 2). It aims
increasing importance for the benefit of the country at the international level and growth
Proceedings of 33rd International Business Research Conference
4 - 5 January 2016, Flora Grand Hotel, Dubai, UAE, ISBN: 978-1-922069-94-8
and the creation of necessary functions and services in development of the metropolis
without losing their core values renowned by countries and world.
Figure 2. Turkey’s governmental structure on the urban development (Urban
Age,2009).
Figure 3. Istanbul’s administrative boundaries before and after 2004 (Urban Age,2009).
Istanbul: As Global Capital of the World
Istanbul, entering as “imperial city" into the 20th century, it appeared again in the 21st
century as a global city on the world stage after a long period of time vacillated. In 2010
list of GaWC, Istanbul is rated as alpha-cities (Figure 4). The position of the cities in
global economic network will be determined by the indicators of further service sector in
studies conducted by GaWC. Alpha cities that integrate large regional and national
economies into the world economy are described as significant world cities. By the
standards of neo-liberal globalisation, Istanbul is a success story. It is a business
platform for the transnational corporate elite as well as a playing field for the
Proceedings of 33rd International Business Research Conference
4 - 5 January 2016, Flora Grand Hotel, Dubai, UAE, ISBN: 978-1-922069-94-8
cosmopolitan consumers of global lifestyles. There are blocks of newly erected highrise office buildings, luxury residential compounds and towers, dozens of shopping
centres offering an exclusive shopping ‘experience’. The city has been successful in
showcasing its unrivalled cultural heritage, attracting a growing number of tourists. Its
central areas have been beautified to offer the trimmings of global lifestyles (Keyder,
2009).
Figure 4. Classification of Cities 2010: intensive and extensive globalization (GaWC,
2010).
Istanbul: As the European Capital of Culture and Activities
Official initiatives, such as a series of high-profile international meetings and
conferences, were an important dimension of this globalization project. More crucial,
however, was the government’s desire to attract global flows to the city since Istanbul’s
economic success would endorse claims for their liberal vision. Willing partners, the
city’s bourgeoisie benefited from business initiatives and land development, mobilising
a newfound interest in philanthropy. Ongoing series of art exhibitions, festivals of film,
theatre, jazz, and classical music, on a scale that rivals that of any large European city,
have been initiated by non-profit private foundations. Such endeavours have secured
the willing cooperation of both the central and city governments: the most recent
instance is the selection of Istanbul as 2010 Cultural Capital of Europe, the
achievement of yet another public/private partnership. Central and local authorities of
the AKP have instigated a number of key initiatives – for example, the Istanbul 2010
European Cultural Capital project – explicitly aimed at using Istanbul’s cultural assets
and resources to improve the global image of the city (and thereby the country). The
Proceedings of 33rd International Business Research Conference
4 - 5 January 2016, Flora Grand Hotel, Dubai, UAE, ISBN: 978-1-922069-94-8
Istanbul Metropolitan Municipality’s recently completed masterplan makes a great deal
of its competitiveness by investing in culture to project a contemporary image of the
city. Concepts about ‘city branding’ and ‘image marketing’ have thus entered into the
city’s political vocabulary. Neo-liberal strategists use culture as a tool for revenue
Central government has committed an investment equivalent to the Ministry of Culture
and Tourism’s annual budget towards the restoration and regeneration of the city’s rich
cultural heritage as part of the Istanbul 2010 programme. Istanbul’s bid to become a
global ‘open city’ involves transforming its image, creating what Mayor Kadir Topbaş
refers to as ‘a city with a different attitude towards the world (Esen, 2009).
3. The Methodology and Model
The research is based on some rhetoric and mega projects reflecting the globalization
project of Istanbul. The main question of the article is how the city of Istanbul
globalized. In this perspective, Douglas’s theory and principles direct the study related
to becoming World City in global context. Within this framework, there are five main
projects in Istanbul from different centres of location are evaluated in respect to these
principles and rhetoric dominating mega structure and investment areas. Convenience
sampling method (Fridah, 2003) is used while selecting the projects from different
residential areas in Istanbul. As well as literature research, it is benefited from
representation tools of the project such as maps, images, rhetoric and visual data.
4. The Findings:
Istanbul: As the Capital of Mega Projects and Investors
Today’s great metropolises constitute the main ring of power that is re-formed on global
and local axis. With the rise of neo-liberalism, large-scale urban projects have become
a powerful mechanism of urban policy. Creating spaces of neo-liberal urbanization
such as central business districts, tourism centers, gated residences and shopping
malls, large-scale urban projects play an important role in the shift of urban political
priorities towards the construction of neo-liberal hegemony. Developmental social
values (investment, competitiveness, and entrepreneurship) emphasize the exchange
value commoditizing spaces while alienating urban residents. According to Harvey
(1989), large-scale urban projects are entrepreneur urban policy mechanisms that
serve the interests of market forces due to inter-city competition conditions deepening
with the rise of neo-liberalism. Has the commoditizing, alienating, degrading, and
standardizing effects on everyday life, these projects are practices of capitalist
urbanization that produces designed space. With large-scale urban projects neo-liberal
discourse such as investment, entrepreneurship and competitiveness symbolizes
developmental social values and addresses sensitivities of different sections of society.
Ayşe Öncü, refers to the various projects that will be applied to create a global
metropolis representing Turkey's window, with the Turkish government's policy of
opening to foreign markets since 1980s. It is undeniable fact that monumental
architecture defining the skyline of the city has shaped with dominant power structures.
In respect to globalization, this intricate and multifaceted network of power relations reproduces itself in metropolitans as deepening re-emitted structure. The distribution of
glass sky towers cutting the urban pattern to world geography reflects the idealization
of the process in all over the world (Öncü, Weyland, 2007). In addition, Marcuse claims
that the residential is no longer focused on city center and it creates multi-centered
urban foci as a result of the globalization process based on service sector instead of
Proceedings of 33rd International Business Research Conference
4 - 5 January 2016, Flora Grand Hotel, Dubai, UAE, ISBN: 978-1-922069-94-8
based economy (Marcuse, 2000). The transformation from one focused city center to
multi-focused urban residential areas coincides with this theory, seen in recent years in
the city of Istanbul. Therefore, high buildings are placed not only in the axis of
Büyükdere-Maslak only business centers rising but also in different centre locations
such as Kartal, Maltepe, Ataşehir, Başakşehir, Şişli-Bomonti, particularly with the
growing interest to dense vertical construction in housing. There is no doubt that the will
and the need for decentralisation in Turkey accelerated with urbanisation. In last ten
years, the urbanization process of Istanbul is outstanding due to the relationships
between power and the city. With the process of creation of cloned cities similar to
each other, Automobile-centered campus-style urbanization model is experienced in
the city, which named “Dubaization” process of Istanbul by some authorities. They
mention the big challenge results from that the city is seen as an opportunity and a
potential area for power performances of directors and investors. Each empty space,
green space or any public space in the city is a profitable land for the actors of this
idea. Each structure, it is an area of investment to construct more efficient and flashy
one instead of it. A lot of information about these projects and images are shared and
all the various opinions are suggested on the project in the media. There are appeared
some “World City” rhetoric related to Istanbul and its mega projects on the media.
“Istanbul is Turkey’s passport into the European Union. It sees itself as part of a group
of cities on an axis running from Dubai to St. Petersburg. There are ambitious plans to
create linear sub centers, both on the east and the west sides of the city, allowing two
sections to function better. The one on the Asian side of the city, at Kartal, is being
shaped in its early stages by a dynamic master plan prepared by Zaha Hadid. Among
such privately financed developments, Istanbul has been investing heavily in its
infrastructure. A metro system is gradually taking shape, the trams are being
revitalized. There is a new rail tunnel under the Bosporus, which will allow the
realization of the ancient goal of one of Europe’s empires: to create a direct rail link
from Berlin to Baghdad (Urban Age, 2009)”.
Kartal MasterPlan by Zaha Hadid Architects, 2006, Istanbul
Where routes connecting Europe and Asia meet coastal highways, sea terminals and
rail links in an abandoned industrial area of Istanbul, the Kartal Pendik Masterplan is
taking shape- creating a new urban centre based on grid form and utilizing calligraphic
notions of topography to create truly responsive structures and spaces.
Figure 5. Kartal masterplan visual studies by Zaha Hadid Architects(2006).
The urban fabric comprises both cross towers and perimeter blocks. The image shows
the morphological range of the perimeter block type. Blocks are split into four quadrants
allowing for a secondary, pedestrian path system. At certain network crossing points
the block system is assimilated to the tower system: each block sponsors one of the
Proceedings of 33rd International Business Research Conference
4 - 5 January 2016, Flora Grand Hotel, Dubai, UAE, ISBN: 978-1-922069-94-8
quadrants to form a pseudo tower around a network crossing point. There is a global
convergence in recent avant-garde architecture that justifies the enunciation of a new
style, called Parametricism (Figure 5). It is particularly suited to large-scale urbanism as
exemplified by a series of competition-winning master-plans by Zaha Hadid Architects
(Schumacher, 2009). In addition to that, Kartal has been designed as a new Central
Business Area in the city. It leads to sustainable multi-centered settlements and decentralization of metropolis. Istanbul's urban transformation plan intends to create
multi-centered urban foci in the metropolis. In this context, Kartal Master plan project
aims to construct a new hub with a mega, reflecting campus life, where 100,000 people
will be employed, live, and shop and have fun with their families. On the other hand,
towers are rising in those new-developed areas of the metropolis and the newly
selected urban centers in the city are being transformed (Figure 6).
Figure 6. Kartal masterplan aerial view by Zaha Hadid Architects (2006).
16:9 Towers, Astay Real Estate, 2011, Istanbul
Figure 7. 16:9 residential blocks, skyline and aerial view (2013).
Proceedings of 33rd International Business Research Conference
4 - 5 January 2016, Flora Grand Hotel, Dubai, UAE, ISBN: 978-1-922069-94-8
In recent years, major housing investments are made to support coming back to the
city center. Height and speed have been the basic life amenities in today's Istanbul.
The image of the transition from horizontal to vertical life is able to read clearly via the
change in the city’s skyline. Another important criterion for these mega-projects is
physical and social impact of the project on the city and citizen. As one of the
controversial mega projects in Istanbul, 16:9 towers consisting of 27-32 and 36 storey
residence blocks, was highly debated in the newspapers related to its location at
historical peninsula (Figure 7-8-9). Although the owners of project had been warned
several times by the government and experts about the skyline, any improvement was
not made in the architecture. As a result of lawsuits, the court decided to the
destruction of the towers, but the project has finished and all apartments have been
sold, many of them are owned by foreign investors. Regarding the existing decision to
demolish, Mesut Toprak the director of Astay Construction has been declared that:
“Required a lot of money for demolition, there is no such source in the municipality for
this job. A compromise should be suggested by authorities (Wordpress, 2013)”.
Figure 8. Some ımages from newspapers talking about 16:9 towers(Astay, 2014)
Proceedings of 33rd International Business Research Conference
4 - 5 January 2016, Flora Grand Hotel, Dubai, UAE, ISBN: 978-1-922069-94-8
Figure 9. Some ımages from newspapers talking about 16:9 towers(Astay, 2014).
Istanbul Fınancial Center, Ağaoglu Group of Companies, 2008, Ataşehir
The vision of project was announced by Erdoğan Bayraktar, the former minister of
environment and urban, like that: “Istanbul, primarily regional, will be ultimately a global
financial center (DPT, 2009)”. It is planned to have the Turkish and foreign financial
institutions on a world scale in financial center that will be established in a larger area
than New York, London and Dubai's one. Bayraktar has mentioned, the center is
planned four main central regions, designed to be a symbol of the Anatolian side with
the location and architecture of the project. The second region, being the most
important part of complex, includes some buildings owned by banks and financial
center. In the first region, there are several buildings belongs to private companies and
audit firms. The third part consisting of convention center hotels and residential areas,
functions like providing circulation and continuity in grand bazaar. The fourth district is
placed around the first one, includes the structure of schools, mosques, police and fire
that are defined as support and service units. Center's design has been inspired of
Grand Bazaar being considered as the world's top financial center related to its
operation and use of common spaces, also inspired of Topkapı Palace’s design and
silhouette. In the center, a modern replica of the Grand Bazaar will take place in a
bazaar. Bayraktar has been said that the project aims at establishing a new city icon
forming such spaces living and functioning every time of the day (Figure 10).
Proceedings of 33rd International Business Research Conference
4 - 5 January 2016, Flora Grand Hotel, Dubai, UAE, ISBN: 978-1-922069-94-8
Figure 10. Istanbul financial center, visual renders of the project (2014).
Tepeüstü Urban Transformation Project (Mall of Istanbul), Torun Building, 2004,
Istanbul
In recent years, Turkey has nearly returned to the construction site. There have been
substantial improvements in the substructure and systems of the city. This economic
boom partially led by the construction industry almost necessitated an improvement of
earlier squatter areas of all periods as well as in-city slum areas. The country is being
renewed with urban transformation projects. Instead of demolished slums and
unplanned areas such as such as Tepeüstü, modern residential structures have been
built with the support of foreign investors who are interested in Turkish real estate
sector (Figure 11). Additionally, new urban transformation projects and residential
developments all come with a cultural approach to urban living. Culture is used to
promote lifestyle. According to the marketing concept for one massive residential
development project in Istanbul, Tepeüstü Urban Transformation Project (Mall of
Istanbul), the new urban culture is informed by a dream of a world perfectly and
completely thought through: here ‘you will find the life you are looking for’. Residents
live happily within their own self-contained environments, with their own kind of people
in accordance with the desired life idealized with such high standard buildings and
areas.
Proceedings of 33rd International Business Research Conference
4 - 5 January 2016, Flora Grand Hotel, Dubai, UAE, ISBN: 978-1-922069-94-8
Figure 11.Tthe images of Tepeüstü Urban Transformation Project (Mall of Istanbul).
Viaport Venezia Housing Blocks, Bayraktar Building, 2011, Istanbul.
Viaport Venezia, being one of the housing projects in Turkey, has applied to some
cultural and historical references in the process of imagery and construction, so it has
Proceedings of 33rd International Business Research Conference
4 - 5 January 2016, Flora Grand Hotel, Dubai, UAE, ISBN: 978-1-922069-94-8
created an artificial world for their users. The main purpose of the images encoded with
strong life scripts is to convince public that the project is not an imagination; otherwise it
is an alternative to the real Venice area. While representing Venice, many scenarios
are written on the images supporting them with a strong rhetoric defining what kind of
lives wait for users. On the other hand, the projects is not only focused on the physical
reality of architectural image but also its encoded meaning constituted by
symbolizations and interpretation of socio‐cultural parameters. It is obvious that the
components of Venice has been reflected as distinct from their physical reality due to
the principles such as obvious lack of proportion, being out of place, the prefabrication
and the imposition of an effect as described by Umberto Eco (1962). As a theme
project, Viaport Venezia has been re‐interpreted according to new measures the
project suggests in terms of proportion and scale (Figure 12).
Figure 12. Viaport Venezia, images from project which imitates the life of Venice.
Proceedings of 33rd International Business Research Conference
4 - 5 January 2016, Flora Grand Hotel, Dubai, UAE, ISBN: 978-1-922069-94-8
5. Summary and Conclusions
In the framework of a global world, the restructuring process that the third world
economies enter have found reflection in the practice of urban and architectural
development. Within the framework the encouraging socio-economic urban
development policies of central and local government, third world metropolises have
become almost demonstration stage of growth, development, and imagery. The
changes observed in residential architecture after 2000, the urban development
accepting the superiority of economy and supporting investment in the central business
area is quite changed with the development of the service sector. As one of the
developing metropolitan areas, the city of Istanbul is being globalized by the help of
some effective rhetoric and mega-projects which aim to reach “World City” criteria’s
such as the function of finance (banking, insurance, capital, real estate), being
management centre to international companies, transport (active worldwide airport and
ports, high-speed train), political and ideological function (the perfection of the stateeconomy and society relations), to host exceptional events (Olympics, world fair, music
concerts, congresses). With unplanned population growth observed in urban scale,
different life styles and forms have emerged within the same city. Entrepreneur plans
and projects produced in the housing sector is an important phenomenon encountered
in developing countries. In this respect, they have changed the existing government
programs and articulated the network of economic, social, cultural and technological
globalization with mega projects and rhetoric produced.
In conclusion, the urbanization process of Istanbul is outstanding due to the
relationships between power and the city. With the process of creation of cloned cities
similar to each other, Automobile-centered campus-style urbanization model is
experienced in the city, which named “Dubaization” process of Istanbul by some
authorities. They mention the big challenge results from that the city is seen as an
opportunity and a potential area for power performances of directors and investors.
Each empty space, green space or any public space in the city is a profitable land for
the actors of this idea. Each structure, it is an area of investment to construct more
efficient and flashy one instead of it.
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