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Questions and Answers

What impact does the decline of coal demand have on local communities?

It causes a shift in energy sources to electricity and gas. (correct)

It has no significant effect on local manufacturing.

It stabilizes the local economy due to increased investment.

It leads to job creation in coal mining.

How can urban centers transition effectively in post-industrial economies?

By focusing solely on manufacturing jobs.

By maintaining a strong reliance on resource extraction.

By avoiding urban redevelopment projects.

By transitioning towards service-oriented sectors. (correct)

Which factor is crucial for cities to become economic growth engines?

Low levels of education.

Innovation and technological progress. (correct)

High levels of reliance on traditional industries.

Weak community ties.

What role do small and medium-sized enterprises (SMEs) play in local economies?

They provide a majority of private sector jobs. Signup and view all the answers

Which of the following is NOT a factor contributing to cities' success as growth engines?

Weak infrastructure and public services. Signup and view all the answers

What is one key challenge addressed by Sustainable Development Concepts (SDC) after the 2008 economic crisis?

Prioritizing eco-friendly strategies Signup and view all the answers

How does urban agriculture contribute to local economic development?

By fostering local food security and sustainability Signup and view all the answers

What strategy is essential for attracting the creative class to a city?

Building appealing places to live and work. Signup and view all the answers

What impact do technological advancements have on urban employment?

They reduce the demand for labor in many industries Signup and view all the answers

What is a consequence of global production decisions like Dyson's relocation to Malaysia?

Job losses and economic decline in the original location. Signup and view all the answers

Which of the following is a primary focus of government support for SMEs?

Improving access to funding and reducing regulations. Signup and view all the answers

Which of the following is NOT a factor influencing local economic change?

Increased demand for high-cost labor Signup and view all the answers

What is the potential consequence of firms relocating to lower-cost areas?

Loss of industrial production in less favored locations Signup and view all the answers

How can urban planning support economic development?

By balancing economic progress with environmental sustainability Signup and view all the answers

What does the pursuit of integration and economies of scale typically lead to?

The amalgamation of firms in fewer locations Signup and view all the answers

Which of the following statements is true regarding local economic competitiveness?

It is driven by firms striving to maintain productivity Signup and view all the answers

What is a characteristic of supply-side drivers in urban economics?

They aim to reduce production costs through workforce skills. Signup and view all the answers

Which factor is NOT considered a component of local economic change?

Cultural Shifts Signup and view all the answers

How does the multiplier effect influence local economies?

It amplifies the impact of income changes through local spending. Signup and view all the answers

What role does technological change play in local economic shifts?

It can enhance productivity while also altering labor demand. Signup and view all the answers

What is an example of economies of scale in urban economics?

Increasing output to lower average costs in larger firms. Signup and view all the answers

What defines the dependency on external markets within an economic base analysis?

Local economies are influenced significantly by foreign trade. Signup and view all the answers

Which of the following best describes the impact of cyclical changes on demand-side drivers?

They lead to variations in demand that affect firms' growth and decline. Signup and view all the answers

What is the relationship between government policies and local economic changes?

Government policies can shape the conditions needed for local economic development. Signup and view all the answers

Study Notes

Economic Change, Development & Urban Planning - Chapter 4

Students: Maitha Alshamsi (201904889), Aliaa Amin (201950090), Maryam Aldhanhani (201901248), Shaikha Alkateri (201911527)
Course content covers Introduction, Nature & Structure of urban economics, Drivers of economic Growth & Change, Strategies for Local Economic Development, Policy Responses (Land Use Planning & Transformation), Alternative Approaches, and Conclusions.

Introduction

Urban Planning Importance: Enhances local economies, reduces unemployment, corrects economic imbalances, prioritizes political, social, and environmental issues, explores infrastructure's role in development & green economies, understanding local economy size for informed planning.
Planning activities analyze urban economies, structure, and planning adaptation.
Planning involves using resources optimally.

2. The Nature & Structure of Urban Economics

Size of the Local Economy: Examines city's economic foundation's impact on growth, focuses on income generation from external sources. Uses GDP (Gross Domestic Product) and GVA (Gross Value Added). GDP = market value of all final goods and services, while GVA = value of goods/services minus input costs.
Activity rates and economic performance vary across regions (e.g., London Region) due to local economic structure and performance.
Unemployment rate is a sensitive measure of economic growth and decline, central to assessing economic success and stability.
Nature of economic base: examines city's economic foundation's impact on growth, focuses on income generation from external sources, covers Basic vs. Non-Basic Sectors, Multiplier Effect, Dependency on External Markets, and Role of Government.
Components of local economic change focus on factors driving shifts in urban economies. Includes technological change, industrial change, population change, globalization, government policies, and natural factors (geographical location & ecological environment), city scale (urban infrastructure, urbanization level, regional advantages, innovation network status, regional differences).

3. The Drivers of Economic Growth & Change

Supply-Side Drivers: Productivity & Competitiveness (investment in efficient machinery, innovation in management & production, workforce skills enhancement, entrepreneurship.) Economies of Scale (larger firms reduce costs by increasing output). Technological Investment (substituting technology for labor). External Economies (concentrated industries benefit from shared services and training).
Demand-Side Drivers: Cyclical Changes (demand varies with economic cycles). Structural Changes (permanent shifts in demand, impacting industries). Global Production Decisions (job losses and diminished civic participation stemming from global production decisions).

4. Strategies for Local Economic Development

Shift to Service-Based Economies (Post-Industrial Shift: Urban centers shifting from manufacturing/extraction/shipping to service sectors, like finance, healthcare, education and tourism; Urban Redevelopment: converting industrial areas to residential, commercial, and recreational purposes)
Cities as Growth Engines: Cities boosting regional economies (high levels of education, innovation, strong community ties and good living standards)
Creative Class as Economic Boost: growth of the "Creative Class" (talented workers in areas like engineering, media, and technology), and attracting talent.
Small and Medium-Sized Enterprises (SMEs): Job creation and innovation.
Cultural & Sporting Events: Enhancing local economies by drawing tourists (e.g., Olympics, festivals).

5. Policy Responses: Land Use Planning

Key concept Land use planning essential for economic development, allocation of land based on demand, proactive planning.
Method includes forecasting, managing proposals to ensure alignment with economic goals, and allocating land for development. Balance this against constraints of market needs and other factors. Land use plans are based on future needs.
Key methods for forecasting include assessing future needs, appraising available land, and selecting/zoning suitable land. Using market segmentation to meet diverse needs.

6. Policy Responses: Transformation

Process of Urban Transformation: Identifying vacant land, reclamation of land (decontamination & removal of obsolete structures, and preparation for reuse), upgrading infrastructure, and redevelopment.
Baltimore's Inner Harbor Transformation: Rapid growth -> decline -> repurposing (waterfront offices, apartments, public shoreline improvements), attracting further investment and growth.
Dortmund's Phoenix Transformation: Plant closure-> diversifying economy (high tech, university, tech center, and technology park)-> new complex, increasing city appeal, and economic investment.
Example projects (Baltimore, Dortmund) highlighted successful redevelopment strategies.

7. Alternative Approaches to Local Economic Development

Problem: Dominance of economic growth = unsustainability of growth.
Research: Redefining prosperity (challenging myth of economic growth, focusing on human capabilities, promoting meaningful lives and contribution to society rather than just GDP).
Solution: Steps towards sustainability (investing in renewable energy, public transport, ecosystem protection, improving macroeconomic accounting, strengthening human and social capital through resilient and inclusive communities.)
Economic Recovery (Post-2008 Crisis): Urban planning adapting to these new economic models, balancing economic growth with environmental sustainability. Importance of partnerships with communities and accountability.
Exploring New Economic Models: Urban agriculture blends food production and local food security, improving environmental sustainability and community resilience.

8. Conclusion: Economic Changes

Economic Competitiveness: Firms need to maintain competitiveness through increased productivity.
Technological Advancements: Adoption of new technologies reduces labor demand in some industries.
Employment & Land Demand: Economic forces change the demand for land.
Relocation: Firms may move to lower-cost regions or countries.
Integration & Concentration: Combining firms and concentrating production in fewer locations.

8. Conclusion: Main Arguments

Alternative Approaches: GDP isn't sufficient to measure economic, environmental or social wellbeing. Sustainability must be addressed in tandem with economic growth.
Competitiveness of Towns and Cities: Modern towns & cities must be efficient and well-managed to remain competitive.
Unique Role of Urban Centers: Important functions of urban centers deserve targeted planning/resources for the broader urban ecosystem.