LAUSR

This study offers a detailed analysis of an under‐researched social problem of in‐situ marginalisation and its causes by drawing on the concept of state entrepreneurialism. Our empirical data stem from the Lingang mega project in Shanghai and one of its neighbourhoods named Neighbourhood No.57 where we find that the residents have not been relocated but are instead suffering from declining public services and environmental quality from surrounding industrial developments. The root cause of this problem is the municipal government’s prioritisation of its strategic objectives of economic development over the livelihood of local residents. The strategic vision of the municipality has led to mass relocation in its early phases of development but in its later stages leaves many residents waiting for relocation whilst being gradually surrounded by industrial developments. Despite continued residential complaints and petitions, in‐situ marginalisation is not resolved due to the institutional arrangement of Lingang, which has centralised planning and financing powers to newly created project‐oriented state organisation. Social responsibilities have been relegated to lower‐tiered governments in Lingang which have neither planning power nor the financial resources to resolve the problems of residents. By examining the case of Lingang, this paper provides a different analytical framework for explaining the social problems emerging from China’s mega urban developments.