Economic Change, Development & Urban Planning Chapter 4 PDF

Economic Change, Development & Urban Planning Chapter 4 Maitha Alshamsi - 201904889 Aliaa Amin - 201950090 Maryam Aldhanhani - 201901248 Shaikha Alkateri - 201911527 Content 1. Introduction 2. The Nature & Structure of urban economics 3. The Drivers of economic Growth & Change 4. Strategie...

Economic Change, Development & Urban Planning Chapter 4 Maitha Alshamsi - 201904889 Aliaa Amin - 201950090 Maryam Aldhanhani - 201901248 Shaikha Alkateri - 201911527 Content 1. Introduction 2. The Nature & Structure of urban economics 3. The Drivers of economic Growth & Change 4. Strategies for Local Economic Development 5. Policy Responses: Land Use Planning 6. Policy Responses: Transformation 7. Alternative Approaches to Local Economic Development 8. Conclusions 1. Introduction Urban Planning Importance:- Enhances local economies, reduces unemployment, and corrects economic imbalances. Involves political priorities, social and environmental costs, and precautionary measures. Examines urban economies, structure, economic changes, and planning adaptation. Explores infrastructure's role in development and green economies. Importance of understanding local economy size for informed planning interventions.  2. The Nature & Structure of urban economics The size of the local Nature of economic base Components of local economy economic change 2. The Nature & Structure of urban economics The size of the local economy : Examines city's economic foundation's impact on growth. Focuses on income generation from external sources. Aspect (GDP) Gross domestic product (GVA) Gross value added Definition Market value of all final goods and services. Value of goods and services minus input costs. Measurement Based on output, income, and expenditure. Based on output minus intermediate consumption. Advantages Easy to compare countries and calculate. Globally comparable and better market projections. Disadvantages May lack reliable data and hides inequalities. Hard to compare over time. GDP is more suitable for international comparisons, while GVA is a better measure of economic welfare. 2. The Nature & Structure of urban economics The size of the local economy : Activity Rates and Economic Performance :- Activity rates vary across regions due to local economic structure and performance. Unemployment rate is politically sensitive, indicating economic growth and decline. Unemployment rate remains a central measure for assessing economic success and stability. 2. The Nature & Structure of urban economics Nature of economic base : "Nature of Economic Base" Examines city's economic foundation's impact on growth. Focuses on income generation from external sources. Key points include: Basic vs. Non-Basic Sectors Multiplier Effect Dependency on External Markets Role of Government 2. The Nature & Structure of urban economics Components of local economic change : Components of Local Economic Change focus on the factors driving shifts in urban economies. Key points include: Technological Change Industrial Change Population Change Globalization Government Policies Local Economy Changes Influences employment, income. Shapes overall economic structure. 2. The Nature & Structure of urban economics Components of local economic change : Local Economic Shifts: Influences on Business Economic Resilience Climate: Responses: Economic Shift Measurements: 3.The Drivers of economic Growth & Change Supply-Side Drivers Productivity & Competitiveness: Firms aim to reduce production costs through: Workforce Skills Innovation in Entrepreneurship for Investment in enhancement for management and new business efficient machinery. better output production. models. quality. 3.The Drivers of economic Growth & Change Supply-Side Drivers Economies of Scale: Larger firms can reduce costs by increasing output. Example: The shipping industry has seen larger vessels become more efficient, prompting new port infrastructure investments and urban challenges (e.g., derelict docklands). Technological Investment: Substituting technology for labor can enhance productivity. Example: In Liverpool, containerization increased cargo throughput dramatically but led to job losses. External Economies: Concentrated industries benefit from shared services and training. Example: London’s growth supported by agglomeration economies, benefiting from investments in transport and planning. 3.The Drivers of economic Growth & Change Demand-Side Drivers Cyclical Changes :Demand varies in accordance with economic cycles, leading to periods of growth and decline for firms. 1 Example: The 2008 economic crisis led to significant production downturns, especially in construction. Structural Changes: Permanent shifts in demand can affect industries. 2 Example: The decline of coal demand shifted energy sources to electricity and gas, leading to job losses in coal communities. Global Production Decisions: job losses can significantly influence local economies and diminish civic participation. 3 Example: Dyson’s relocation of manufacturing from the UK to Malaysia exemplifies the complexity of global production decisions. 4.Strategies for Local Economic Development 1. Shift to Service-Based Economies Post-Industrial Shift: Urban centers that previously depended on manufacturing, resource extraction, or shipping have evolved towards service-oriented sectors such as finance, healthcare, education, and tourism. Urban Redevelopment: Areas that were once industrial are now being transformed for residential, commercial, and recreational purposes, including urban parks and housing projects. 2. Cities as Growth Engines Cities that succeed boost their regional economies. Research indicates that areas with thriving cities often exceed the national GDP per capita. Important factors are: - High levels of education. - Innovation and tech progress. - Strong community ties and good living standards. Example: cities like London and Berlin demonstrate that investing in knowledge-based industries and creative fields can drive economic growth. 3. Creative Class as Economic Boost Growth of the "Creative Class": Talented workers in areas such as engineering, media, and technology are boosting development in modern cities. Attracting Talent: Cities must build appealing places to live and work to attract and keep this creative workforce. 4.Strategies for Local Economic Development 4. Small and Medium-Sized Enterprises (SMEs) Importance in Job Creation: Small and medium-sized enterprises (SMEs) provide a large number of jobs in urban areas, making up 59% of private sector employment in the UK, and they drive innovation. Support for SMEs: Governments aim to help new businesses by improving access to funding and lowering regulations. 5. Cultural & Sporting Events as Economic Catalysts Impact of Major Events: Big events such as the Olympics or yearly festivals can greatly enhance local economies by drawing in tourists, investments, and enhancing the city's image. Example: the Sydney 2000 Olympics brought in billions in business and improved infrastructure, even though expenses exceeded initial estimates. Future Planning: Achieving success relies on planning ahead for how to use facilities after the event and making sure that infrastructure investments meet the city's future requirements, as seen with the legacy planning from the London 2012 Olympics. 5. Policy Responses: Land Use Planning Land use planning is essential for economic development, enabling planners to allocate land based on demand and evaluate development proposals. Proactive planning drives growth and removes investment barriers. Planners forecast employment changes and land demand using economic models and balance market needs with planning policies. Forecast Oversee Allocate Balance Changes Development Land Constraints Predict employment Review and manage Designate areas for Consider market trends and land proposals to ensure development based needs, planning demand using alignment with on forecasts and policies, and other economic models economic goals policies criteria 5. Policy Responses: Land Use Planning Forecasting Future Development Needs Assessing future needs involves tracking planning permissions, past rates, and stakeholder input. Each sector has specific land needs and speeds. UK guidance identifies ten segments, from offices to freight terminals. Market Segment Description Established Office City center sites suitable for office Locations development High Quality 5-20 hectare sites for Business Parks national/multinational firms Research and Branded sites associated with Technology Parks academic institutions Warehouse/Distributi Large sites at key transport on Parks interchanges 5. Policy Responses: Land Use Planning Employment forecasts play a key role in land use allocation. Different sectors require varying floor space per worker, so employment rates help estimate the necessary area for each development. To find the total area required for a sector, additional space is added to the initial floor area. This added space is calculated as a percentage based on the specific type of floor area. 5. Policy Responses: Land Use Planning After determining land requirements, planners assess land for each employment market segment, considering size, location, and other factors. Available land is evaluated based on market and policy criteria, and suitable sites are zoned in the development plan. 1 2 3 Assess Land Needs Appraise Available Land Select and Zone Sites Determine Evaluate potential sites Identify suitable land requirements for against market and policy and designate in each market segment criteria development plan 6. Policy Responses: Transformation In recent decades, declining industrial employment has led to vacant, often contaminated urban land. This presents challenges and opportunities for planners as new economic activities in sectors like retail, IT, and tourism emerge. The goal is to repurpose these sites to meet the evolving needs of urban populations. The Process of Urban Transformation: 3 Infrastructure 1 Identifying Vacant Land 2 Land Reclamation Upgrades 4 Redevelopment Construction of new Cities assess the Decontamination Modernization of facilities to extent of abandoned and removal of utilities and accommodate industrial sites, obsolete structures transportation emerging economic docklands, and to prepare sites for systems to support activities and railway yards. reuse. new developments. housing needs. 6.Baltimore's Inner Harbor Transformation Baltimore, a major port city in Maryland, saw rapid growth until the 1950s, followed by a population decline and land devaluation. Redevelopment efforts began in the late 1950s, focusing on waterfront offices, apartments, and public shoreline improvements. A significant investment in 1969 increased credibility and attracted further investments, though housing remained a challenge. The "Homesteading program" helped address housing issues, and by the 1970s, tourism grew with the arrival of fall ships and the development of a science center, hotels, and an aquarium. Over 40 years, 75% of the investments came from the private sector, supporting the city’s successful redevelopment. 6.Area transformation, Dortmund's Phoenix Phoenix, located 5km south of Dortmund, was once home to blast furnaces and steel mills. The plant closed in 1999, leaving the land in poor condition. The city planned to diversify its economy, shifting towards high technology, with a university, tech center, and technology park established in the 1950s. In 2000, Dortmund launched a project to enhance city appeal and attract investment, leading to the creation of the Phoenix complex. The site's location played a key role in its success, and its connection to Dortmund spurred investment in the development of a new town center. New housing developments focused on water recreation were also part of the revitalization. 6. Dortmund's Phoenix, Development The development of the Phoenix complex was divided into Phoenix East and Phoenix West. Phoenix East focused on mixed-use, residential, and leisure developments, including an artificial lake and promenade. Phoenix West concentrated on high-tech, engineering, and IT manufacturing, with one factory opening in 2005. Growth has been slow in Phoenix West, impacted by the 2008 economic crisis. Overall, the Dortmund transformation was an expensive but exemplary regeneration project, contributing significantly to the city's reimaging. 7. Alternative Approaches to Local Economic Development Problem Dominance of Economic Growth = Unsustainability of Growth Research Redefining Prosperity: The Sustainable Development Commission (SDC) published "Prosperity without Growth," challenging the myth of economic growth. It promotes a redefinition of prosperity based on human capabilities to flourish, live meaningful lives, and contribute to society, rather than GDP - Gross Domestic Product. Solution Steps Towards Sustainability: The report outlines 12 steps to achieve a more sustainable economy that doesn't rely on continuous economic growth. Some of these steps include investing in renewable energy, public transport, and ecosystem protection, improving macroeconomic accounting, and strengthening human and social capital through resilient and inclusive communities. 7. Alternative Approaches to Local Economic Development 12 steps to achieve a more sustainable economy Step 1 : Focus on Well-being Step 2 : Invest in Jobs and Infrastructure Step 3: Redefine Success. Step 4 : Improving macro economic Accounting Step 5 : Reform the Financial System Step 6: Promote Green Technologies Step 7 :Rethink Work-Life Balance Step 8 : Strengthening human and social capital Step 9 : structure Business Models Step 10 : Reform Taxation Step 11 :Encourage Sustainable Lifestyles Step 12 : Foster Global Cooperation 7. Alternative Approaches to Local Economic Development Economic Recovery SDC Investment Local Economic (addressing the (energy security, Development Post- 2008 (reducing energy bills, challenges & low-carbon Economic Crisis creating jobs, prioritized eco- infrastructure, eco reducing carbon friendly strategies) logical protection) emissions) Urban Planning's Role in Economic Development Urban planning is positioned to adopt these economic models, envisioning future cities that balance economic progress with environmental sustainability. Planners are encouraged to work closely with communities and demand accountability from developers Exploring New Economic Models Urban agriculture represents a shift towards alternative economic strategies. It blends food production within urban spaces to foster local food security, improve environmental sustainability, and build community resilience. 8. Conclusion: Economical Changes Economic Competitiveness: Firms in a market economy constantly strive to maintain competitiveness, leading to changes that impact urban areas. This includes increasing productivity through various means. Technological Advancements: Adopting new technologies has reduced the demand for labor in various industries, resulting in unemployment and rendering office spaces redundant. Impact on Employment and Land Demand: These economic forces directly influence the economic strength of towns and cities, affecting employment opportunities and the demand for land. Relocation: Firms may relocate to lower-cost regions or countries to reduce labor costs, access raw materials, or benefit from subsidies. Integration and Concentration: The pursuit of integration and economies of scale can lead to the amalgamation of firms and concentration of production in fewer places. This often centralizes decision-making in regional or capital cities, leading to the loss of industrial production in less favored locations. 8. Conclusion: Main Arguments Alternative Approaches: GDP alone is inadequate to measure economic health; alternative indicators should account for environmental impact, health, and quality of life. Sustainable investments, like renewable energy and urban agriculture, are proposed to reduce dependency on traditional economic growth. Competitiveness of Towns and Cities: Modern towns and cities must foster an efficient, well-managed environment to stay competitive. Unique Role of Urban Centers: Town and city centers have specific functions that are crucial to the broader urban ecosystem, deserving targeted planning and resources.  Thank you For Listening Open This Link For Game Time !