The socioeconomic structure of Australian cities is changing rapidly in response to the internationalization of capital and the adoption of "economic rationalist" policies. Spatial competition is intensifying and urban "market failures" are becoming more pronounced. These structural political-economic changes are generating greater social-spatial inequalities. Effective urban policy is increasingly difficult in these conditions, compounded by the continuing fiscal crisis of the state, the political pressures arising from urban social movements and the effect of embryonic international regulations. An alternative strategy would shift from beggar-thy-neighbor spatial competition towards emphasizing the social and environmental attributes of the cities.
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