Who Builds the Steel Cities?

The article “Who Builds the Steel Cities? On the relationship between finance, law and industrial zones in CEE,” published in Steel Cities: The Architecture of Logistics in Central and Eastern Europe examines the rise of special economic zones (SEZs) in Central and Eastern Europe (CEE) following the 2004 EU expansion, highlighting their role in shifting Europe’s industrial core eastward.

Unlike China’s centrally planned industrial cities, SEZs in CEE are often decentralized public-private partnerships, driven by government incentives, tax breaks, and foreign investment. While these zones boost regional economies, they function as isolated “black box urbanism,” lacking social infrastructure and integration with local communities. Funded by a mix of state resources, EU structural programs, and international banks, their success is measured primarily through economic metrics like job creation and investment rather than social or environmental impact.

With rising wages and demographic challenges in CEE, the sustainability of these zones is uncertain, as industries can easily relocate in search of cheaper labor. The article critiques this development model and calls for a reevaluation of industrial infrastructure planning, advocating for frameworks that incorporate social, urban, and environmental considerations to ensure long-term sustainability.

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[Title] Who Builds the Steel Cities? On the relationship between finance, law and industrial zones in CEE

[Author] Ina Valkanova

[Publication] Steel Cities: The Architecture of Logistics in Central and Eastern Europe

[Editors] Kateřina Frejlachová, Miroslav Pazdera, Tadeáš Říha, Martin Špičák

[Date/Publisher] London: Park Books, 2020

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