ECONOMICS UNIQUENESS

108 ■ THE ECONOMICS OF UNIQUENESS
Introduction
Th e fi eld of heritage conservation addresses many kinds of resources—sites,
individual landmarks, structures, objects, monuments, collections of historic
buildings, archeological digs, natural heritage, and landscapes. In addition to the
category of tangible heritage there is also intangible heritage, such as language,
music, dance, cultural traditions, oral history, indigenous craft s, and other forms
of expression. But probably the largest share of any country’s heritage assets is its
collection of historic buildings and historic city cores.
What makes a building “historic”? Diff erent countries have diff erent defi nitions,
but the most common criteria would typically include age, association with
important people or events, aesthetic quality, character, and craft smanship. In
addition, buildings are oft en designated “historic” because they were the fi rst, the
most representative, or the best example of a building style, type of construction,
or innovative engineering or construction technique.
When a building (or a group of buildings) is evaluated and meets one or more of
the criteria as historic, commonly the property receives a designation as a heritage
building (or site or district). Depending on the country, the heritage protection laws,
and the relative signifi cance of the building, that designation may mandate legal
protections for the property. Th ese protections can include restrictions on what can
or cannot be changed and are oft en accompanied by a set of design and conservation
guidelines specifying how alterations and maintenance are to be undertaken.
But in the end, four facts must be recognized about heritage buildings:
• Th ere are far more heritage buildings worthy of preservation than can be
made into museums or cultural centers.
• Not even the wealthiest of governments have the fi nancial resources within
the public sector to protect and maintain all of the heritage buildings.
• Heritage buildings are most at risk:
º When there is no funding available, and
º When there is an abundance of funds available.
• In essence, heritage buildings are real estate.
Since heritage buildings are real estate, they will be subject to the same set
of infl uences as any other real estate, particularly in market and transitional
economies. Real estate is peculiar in that it possesses certain characteristics
unlike any other asset: (1) it is fi xed in place; (2) every parcel is unique; (3) it
is fi nite in quantity; (4) it generally lasts longer than any of its possessors; and
(5) it is necessary for every human activity. Because of these distinctions, real
estate has always been treated diff erently in law, in economic theory, in philosophy,
in fi nance, and in public policy. In most countries, regardless of economic