Model city failure: New Haven and limits to the entrepreneurial state

ABSTRACT

This paper critically examines the concept of the entrepreneurial state by focusing on the case study of New Haven, Connecticut, during the mid-20th century. We delve into the ambitious urban development efforts spearheaded by Mayor Richard Lee and his administration. In particular, we examine the construction of the Chapel Square Mall as a response to urban decline with the hope it would stimulate economic growth. Through a comprehensive analysis of historical records, political dynamics, and the socioeconomic context of New Haven, we highlight the inherent challenges and limitations faced by local governments in acting as entrepreneurs. Our findings reveal that despite the strategic intentions to revitalize the city and foster an entrepreneurial ecosystem, the project ultimately resulted in substantial financial losses, displacement of communities, and failed urban planning ambitions. This case study underscores the complexities of state entrepreneurship at the local level, where political motives, limited information, and the pursuit of voter support can diverge significantly from entrepreneurial objectives, leading to outcomes that are detrimental to both the city’s economic health and its residents. By comparing New Haven’s experience with broader critiques of the entrepreneurial state, this paper contributes to a nuanced understanding of the potential and pitfalls of government-led economic development initiatives.

KEYWORDS:

• Entrepreneurial state
• state entrepreneurship
• entrepreneurial ecosystems
• regional development

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

¹ We define locality as a medium sized city.

² The mall finally opened in 1967.

³ According to Rae (2003), the mall represented the end of urbanism, which is a city structure based on a series of modest walkable neighborhoods that featured small businesses.

⁴ We wish to be completely clear. The decision of Lee and Logue had broad support among many groups and such a policy may have been pursued by a Republican mayor (Wolfinger, 1975). This is not a partisan take nor is it a vilification of Lee and Logue, as they were deeply concerned politicians who attempted to address their declining town without a hint of corruption.

⁵ The connector for I-95 and I-91 was built at Oak Street—which would connect towns on the east (for example, East Haven and Branford) and towns from the west (Milford) with New Haven.

Additional information

Funding

This work was supported by the Institute for Humane Studies, George Mason University [IHS016935].