« Question and answer | Main | Hedge fund wizards »
The prostitution "crackdown" in the Netherlands
Read this for a public choice interpretation, and here are some real Dutch facts. Here goes:
The real point is real estate. The red light district is in the oldest, most beautiful area of Amsterdam. In the last 20 years, it has changed from a mixed neighborhood to one almost exclusively peopled by the very well to do. They pay a fortune for those apartments and homes. The talk of cleaning up the neighborhood for the sake of the prostitutes and to lessen criminal behavior is simply a smokescreen. What they wish to do is to create a more up-scale neighborhood - it is gentrification pure and simple.
What is offensive in all this is that anyone who bought a home in that area knew what they were getting into - large crowds every night and all night long. It is to lessen this that the district is being “shrunk”. Less windows for the prostitutes - a more compact area for the tourists - less annoyance for the wealthy.
It is not about anything more than that.
Jim is also right on the mark. Nick talks about Australia. HP cites Nevada.
Posted by Tyler Cowen on March 15, 2008 at 06:44 AM in Law | Permalink
Comments
Jim's comment is dead on. When the Province of Ontario introduced casino gaming in Windsor, the City of Windsor knew that prostitution would follow. Instead of fighting the inevitable, Windsor legalized escort services.
This allowed Windsor to license escorts and those providing escort services, to require police background checks, and most importantly, to regulate escort services as a land use. We don't have a red light district, but we have plenty of older motels that promote "Short Stays". The police do not waste limited resources on combating prostitution. Instead of walking the street, the escorts advertise in the Yellow Pages (there section is just as thick as the Lawyer section).
Prostitution has not been a problem since the casino opened.
Posted by: Vincent Clement at Mar 15, 2008 8:31:28 AM
What's the matter? Prostitution doesn't pay enough anymore?
Posted by: Lord at Mar 15, 2008 11:37:59 AM
What's the matter? Prostitution doesn't pay enough anymore?
Posted by: Lord at Mar 15, 2008 11:40:06 AM
Something about legalisation that is seemingly often overlooked is the fact that legalisation creates a number of firms whose rent seeking behaiviour works against the traffickers. Whenever a white slavery story appears in the Australian media, it is always being spread by a spokesperson for the legitimate industry body. The extent to which this increases reporting of illegal brothels to authorities, or spreads outrage in the media to spur action on their part is uncertain, but they are certainly trying to supress this competition (albeit competition that is as evil as they claim).
Posted by: Richard Green at Mar 15, 2008 1:48:13 PM
What is offensive in all this is that anyone who bought a home in that area knew what they were getting into
I don't see why this is so offensive, people try to change laws and regulations to their benefit all the time. Didn't the market price the probability that the gentrification would occur, especially for the late comers?
PS I love the architecture in Amsterdam.
Posted by: bp at Mar 15, 2008 3:09:27 PM
So perhaps prostitutes play the same role as gays and artists elsewhere? The move into a run-dwn area, build it up pretty and along come the yuppies. Funny how sex is a common denominator.
Posted by: David Zetland at Mar 15, 2008 4:03:52 PM
The idea that people have paid top market prices in the center of the red light district and are now trying to change the nature of the area is interesting.
But it seems very illogical.
Is there any other information to support this thsis?
Normally, one would expect this type of development do emerge around the fringes and with below market prices to offset the negatives of living in or near an undesirable area. One would not expect real estate prices near a red light district to be top dollar prices.
Posted by: spencer at Mar 16, 2008 12:30:45 PM
Spencer, the red light district in Amsterdam is really, really strange in its location. Its pretty much the geographical centre of the historic center, one block away from the most touristic parts, from the best-known department store in the country, from the law faculty of the University of Amsterdam. I know a quite high-end cloth and curtain shop three buildings away from a sleazy erotic video store.
So living in or near the district is socially acceptable, the location is great and the building are 17th century classics. It's probably not the most expensive plave in the city, but I am not surprised that it is expensive.
To some extend the process you describe has already taken place, and what's left of the Wallen is the 'hard core' of what used to be a more disreputable neighbourhood.
As for the larger thesis that the reversal of the legalisation is no more than a cover-up for gentrification, there is probably some truth in there, but I doubt if its the whole story. If only because the reversal is not limited to Amsterdam.
Posted by: greatzamfir at Mar 17, 2008 3:51:36 AM
Fof us to prevent prostitutes, we better start controlling our own self!!..
Posted by: Jerelah Eusebio at Jun 11, 2008 10:12:20 PM
