TJR - did you see the article in the London times today that addresses this very point? I have a feeling you would like it. Tounge in cheek from you so I am bettign that we agree on more than we disagree, but I have a few thoughts
First - school choice for everyone
Second - School administrator pay based on performance of students on SAT's
Third - No student allowed to participate in any extracurriciular activity without a "C" average or higher. At my school ANY "D" suspended that student from athletics until the next report card six weeks later and we were on a 7 point scale, so a D was a 77 and an F was a 68)
Fourth - Education in economics, investment and why pawn shops, credit cards and financing a set of 22's for five years for your Caprice is a bad idea.
Fifth - no social promotions and segregate violent and anti-social students from the good kids
Sixth - Drop the approach that we must build "self-esteem". Teach them to accomplish something real (academics, sports, shop skills, public service) and self esteem will take care of itself.
Seventh - eliminate tenure at ALL levels of education
Eight - set up night/weekend classes with open enrollment for the parents
Ninth - Parents/guardians attend PTA/PTO or the kid doesn't pass. If night work schedules conflict with PTO night, meet the teachers during the day. If you can't handle that, don't have a kid.
Tenth - do not lower the standards so the little darlings can graduate. Does it make sense to anyone that a student is allowed to graduate the 12th grade, if they read on a 9th grade level?
This is just for education.
Housing - Section 8 is not the brick fortress housing projects that we both agree are total failures. The apartment complex in which I lived was in the 2nd most affluent section of our city, with the 2nd best schools. Our high school routinely places students in the Ivy League and features the finest facilities and extracurricular activities possible. The sports teams (boys and girls) are perennial state championship contenders and the parents are among the most educated and affluent in the state. The system attracts the best teachers through competitive pay and exceptional facilities. The school was surrounded by covenanted developments you described. It seems that it was too late to change some of those behaviours, but that can be addressed through better education.
Culture - I don't think there is a lot that I can do about a culture that idolizes Eminem and Kanye West and not Bill Gates, Clarence Thomas and Condoleeza Rice. Until low income people embrace the desire to improve themselves through education and hard work, as did previous generations of low income people, they are doomed. The fast buck, bling bling big pimpin' culture will doom them. This applies to both urban and rural poor. Please don't assume that I am talking in terms of black and white, the so called hip-hop culture is as big among suburban and rural white youth as it is the inner city black kid. After all, Puffy and 50 Cent didn't sell that many albums to just 13% of the country.
I can go on, but these are a start.