Meeting the Urban Challenges

UN-Habitat Donors meeting
Seville, 15-16 October 2008
Meeting the Urban Challenges
Introduction
UN-HABITAT’s Medium-term Strategic and Institutional Plan 2008-2013 (MTSIP), adopted at the 21st session
of its Governing Council in April 2007, addresses the urban challenges of the early twenty-first century. This
background paper identifies and briefly discuses the common urban challenges facing most countries in the
world. It further discusses the urban challenges facing individual regions of the world. Finally, the ways in
which the MTSIP addresses these challenges are briefly explained.
Global Urban Challenges
Most countries have urbanized significantly since the 1950s and are projected to continue this process
through the middle of the 21st century – the percentage of the world’s population living in urban areas has,
in fact, just passed the 50 per cent mark. In developing countries, this increasing share of total population
living in cities is similar to the historic patterns of Europe and North America, with increasing urbanization
accompanying rising levels of GDP. The key differences lie in the faster pace of urban growth in developing
countries in this period and the higher absolute levels of urban population. The latter is reflected both in
the concentration of people living in mega-cities (urban agglomerations over 10 million residents) and the
increasing numbers of medium-sized cities up to 3 million.
Rapid urban and slum population growth
The global urban population is projected to increase from 2.9 billion in 2001 to about 4.9 billion in 2030. In
percentage terms (i.e. urbanization level), the world’s urban population will increase from 48 per cent of the
total world population in 2001 to about 60 per cent of the total world’s population in 2030. This means that
every year during this period, the world’s urban population will increase by about 70 million people, which is
equivalent to the creation of seven new megacities annually. In fact, almost all of the word’s total population
increase during the period 2001-2030 will take place in urban areas, with rural areas being just about static.
It is estimated that, in the absence of serious remedial action, about half of the urban population increase
between 2001 and 2030, i.e. 1 billion people, will take place in urban slums – slightly more than the 924
million people estimated to be living in slums in 2001. In percentage terms, and if no serious action is taken
to address the growing slum challenge, it is estimated that the slum population will increase from 32 per
cent of the world’s total urban population in 2001 to about 41 per cent in 2030.
Rapidly increasing demand for housing, basic infrastructure and services
A 2005 estimate, which took into account the existing global slum population (which is a rough indicator
of global shelter need) and the projected 2 billion or so additional urban population, placed the number of
UN-HABITAT (2003), The Challenge of Slums: Global Report on Human Settlements 2003, Earthscan, London.
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people in need of housing, basic infrastructure and urban services by 2030 at 2.825 billion. In considering
this number, its precision is not really very important. What is critical, however, is its order of magnitude.
Close to 3 billion people, or about 40 per cent of the world’s population by 2030 will need new housing as
well as basic urban infrastructure and services. Assuming an average household size of 5 people, 565 million
new housing units will be needed. If this number is broken down on an annual basis for the period 2003 to
2030, 22.6 million housing units per year will be required. This estimate means that 61,918 housing units per
day or 2,580 per hour will need to be built.
The ability of cities to respond to these demands with adequate financial investment will be constrained
by the fact that the changes described above will take place within the overall context of increasing urban
poverty in many developing countries. While there are no specific global estimates of urban poverty at this
stage, it is generally clear that the locus of poverty is rapidly shifting from rural to urban areas, a process that
is now characterized as the ‘urbanization of poverty’. The absolute numbers of poor and undernourished in
urban areas are increasing, as is the share of urban areas in overall poverty.
Impacts of climate change on cities
A further constraint will be the additional demands on towns and cities imposed by climate change. The
Intergovernmental Panel on Climate Change (IPCC) expects climate change to affect urban populations
through rising sea levels, increased hazard from tropical cyclones, flooding, landslides, heat and cold waves,
as well as challenges of urban water quality and storage.
Cities located along the world’s coastlines have come under increasing threat from extreme weather events.
Between the 1950s and 1990s, there was a 50 per cent increase in extreme weather events associated with
global warming. Twenty-one of the 33 cities which are projected to have a population of 8 million or more by
2015 are located in vulnerable coastal zones and are increasingly vulnerable to sea-level rise.
Around 40 per cent of the world’s population lives less than 100 kilometres from the coast, within reach of
severe coastal storms. Recent research shows that 13 per cent of the world’s urban population lives in low
elevation coastal zones, defined as less than 10 meters above sea level. In effect, close to 100 million people
around the world live less than one metre above sea level. If sea levels rise by just one metre, many large
coastal cities such as Buenos Aires, Los Angeles, Rio de Janeiro, New York, Mumbai, Dhaka, Osaka, Tokyo,
Lagos, Alexandria, Shanghai and Cairo will come under threat.
In cities of developing countries, informal settlements occupied by the poor are often built in high-risk
areas such as steep hill slopes, deep gullies and flood-prone areas that are particularly susceptible to
extreme weather conditions associated with climate change. This is further compounded by the makeshift
construction materials that are unable to withstand the effects of extreme weather conditions. Urgent and
decisive steps are therefore required, all over the world, including at the city level, to mitigate the impacts of
and adapt to climate change.
UN-HABITAT (2005), Financing Urban Shelter: Global Report on Human Settlements 2005, Earthscan, London, p.5.
Romero Lankao, P. (2008), ‘Cities and Climate Change: Review of Current Issues and Trends’, draft report prepared for the Global Report
on Human Settlements 2011.
Romero Lankao, P. (2008), ibid., p.52.
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Cities and the world energy and food crises
The geographical, or spatial, expansion of cities is one of the most visible dimensions of rapid urbanization
at present, especially in developing countries. This process has generally been called ‘urban sprawl’, or
‘metropolitanization’, or, in East Asia, ‘desakota’. By increasing distances across cities, urban sprawl increases
demand for transportation (for both people and goods), potentially fostering unsustainable patterns of
energy consumption. Inefficient energy use in other areas such as industry and domestic consumption also
contributes to the global energy problem and to rising greenhouse gas emissions. It is now clear that the
current rising demand for fuel has led to increased production of bio-fuels from food crops such as corn, in
the process partly contributing to rising world food prices. Given the linkages between the current global
food crisis and energy consumption, urban planning needs to address the challenges of unsustainable
energy consumption in cities, principally through transport and land-use planning policies.
Urban Challenges in Different World Regions
While the above are globally shared urban challenges, individual regions and countries have their own set
of characteristics determining their patterns of urban growth and specific urban development challenges.
These are briefly examined below.
Urban challenges in developing countries
Looking at global trends more closely, about 90 per cent of the new demand resulting from rapid
urbanization between now and 2030 will occur in 48 countries, with most of it being in East and South Asia.
Within the developing regions of Sub-Saharan Africa, Asia, the Middle-east and North Africa, as well as Latin
America and the Caribbean as a whole, the major urban challenges are, and will continue to be:
how to address the urbanization of poverty and increasing inequality (especially in Latin
America);
how to deliver urban land at scale in order to meet increasing demand for housing (especially
in Africa and Asia), linked to networks of public infrastructure and recognising the need to
mitigate the impacts of and adapt to climate change;
how to address the phenomenon of urban informality, in terms of land delivery, housing and
livelihoods;
how to address rapid and chaotic peri-urbanization and the emerging phenomenon of
extended urban corridors;
how to meet the needs of the youth, who constitute the majority of the urban population; and
how to address the shortage of skills in the human settlements or built environment sector.
Attahi, K. (2008), ‘Revisiting urban planning in Sub-Saharan Francophone Africa’, draft regional study prepared for the Global Report
on Human Settlements 2009; Irazábal, C., C-Y Wong, A. Farol and J. Noah (2008),‘The status of urban planning and planning practice
in Latin America and the Caribbean’, draft regional study prepared for the Global Report on Human Settlements 2009; Okpala, D.O.
(2008), ‘Regional overview of the status of urban planning and planning practice in Anglophone (Sub-Saharan) African countries’,
draft regional study prepared for the Global Report on Human Settlements 2009; Yuen, B (2008), ‘Revisiting urban planning in East
Asia, South-east Asia and the Pacific’, regional study prepared for the Global Report on Human Settlements 2009.
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UN-Habitat Donors meeting
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Urban challenges in transition countries
In contrast to the developing countries, the transition economies face different challenges in urban
development. Previous public patterns of provision of housing and infrastructure have been disrupted by
the political and economic changes following the collapse of the Soviet Union. These systems had provided
a minimum quality of housing and infrastructure in most countries. Whether cities in these countries will
become productive motors for their new reformed economies remains to be seen. The major challenges for
the coming years in transition economies will be:
how to address the problems resulting from slow (or even negative) population growth and
ageing, including shrinking cities and deteriorating buildings and infrastructure;
how to address problems of urban sprawl and preservation of inner-city heritage buildings
arising from the growing demand for housing and facilities by an emerging wealthy class and
from international investors;
how to address severe environmental pollution from the socialist era industries and, more
recently, from the rapid growth of vehicle ownership; and
how to strengthen local authorities to whom many responsibilities have been transferred but
without the necessary financial resources.
Urban challenges in developed countries
Cities in developed countries have occupied an increasingly important place in their respective national
economies. In recent decades, their economies have become knowledge-based and shifted towards financial
services, which have tended to be located in large cities. How well the cities do, or will continue to do, with
these functions depends on the reliability of their infrastructure and the quality of urban life as factors in
attracting new investment. More recently, the sub-prime mortgage lending crisis and collapse of a number
of major investment banks in the USA and the UK has not only affected large numbers of home owners,
shareholders and savings, but has also introduced a new and acute level of uncertainty that is bound to
affect urban employment and economic prosperity in general. In the foreseeable future, the major urban
challenges in developed countries will include:
how to resolve the very recent mortgage and housing markets crisis;
how to address increasing socio-spatial inequalities and urban fragmentation resulting from
globalization and competitive city investment policies, as well as from the changing structure
of labour markets that has left many urban residents unemployed and impoverished;
how to reduce the large ecological footprints of cities caused by car-dependence, huge waste
production and urban sprawl;
how to mitigate the effects of and adapt to climate change; and
how to resolve the problems associated with slow population growth, ageing and shrinking of
cities.
Hirt, S. and K. Stanilov (2008), ‘Revisiting urban planning in the transitional countries’, regional study prepared for the Global Report
on Human Settlements 2009.
Garau, P. (2008), ‘Urban planning trends in the North’, draft regional study prepared for the Global Report on Human Settlements
2009.
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UN-Habitat Donors meeting
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Conclusion
While present day cities are both the cause and result of many socio-economic and environmental
problems, the major ones of which are highlighted above, it is also clear that they are and have always
been the repository of knowledge and innovation. Throughout history, cities have been closely linked to
the advancement of civilization in all world regions. It can be said, without exaggeration, that the history of
civilization has been the history of cities. If properly planned and managed, cities are capable of providing
solutions to the key urban challenges briefly discussed above. This, in fact, is the starting point, or premise, of
the MTSIP.
From the above discussion, the need for global awareness of urbanization issues is clear. More importantly,
it is clear that urbanization issues need to be integrated into national development policies and strategies.
These are the long-term aims of Focus Area 1 of the MTSIP, “Effective advocacy, monitoring and partnerships”,
which seeks to promote sustainable urbanization through evidence-based global monitoring and research,
policy dialogue, strategic partnerships, global campaigns, education, communication and exchange of best
practices.
Addressing all of the urban challenges discussed above will require pro-poor and inclusive urban planning,
management and governance policies as well as effective institutions – and these are still weak in many
developing countries. It is precisely these issues that Focus Area 2 of the MTSIP, “Promotion of participatory
urban planning, management and governance”, seeks to address, principally by strengthening the capacity
of national governments, local authorities and other stakeholders to develop more liveable, productive and
inclusive cities.
In developing countries, slums are the most visible manifestation of urban poverty and of the failure of
urban development and housing policies. Addressing the slum challenge will partly entail in-situ upgrading,
focusing on improving water and sanitation, as well as improving the supply of adequate but affordable
housing for low-income households. To achieve the latter, serious attention has to be paid to increasing the
supply of affordable land, especially for the poor. In light of this, Focus Area 3 of the MTSIP, “Promoting propoor
land and housing”, aims at assisting national governments and Habitat Agenda partners to adopt propoor,
gender and age-sensitive housing, land management and property administration through enabling
policies and improved legal and regulatory frameworks.
While addressing the brown agenda challenges of poor water and sanitation in slums and basic urban
infrastructure in general, governments and local authorities will also need to deal with the longer term risks
arising from climate change. Focus Area 4 of the MTSIP, “Environmentally sound basic urban infrastructure
and services” is designed to assist governments, local authorities and Habitat Agenda partners to deal with
all of these environmental challenges. As part of this effort, the 2011 issue of UN-HABITAT’s Global Report on
Human Settlements will focus on the theme of ‘Cities and Climate Change’, while the 2013 issue will focus on
‘Urban Mobility and Transport’.
Finally, addressing all of the current and future urban challenges identified above requires appropriate and
robust financing systems. If they are to succeed, such systems must not only be at a much larger scale than
before, but must also recognise the progressive, or incremental, nature of house construction among the
poor in developing country cities. It is in response to these requirements that Focus Area 5 of the MTSIP,
“Strengthened human settlements finance systems”, places emphasis on innovative financing mechanisms
and improved institutional capacity to leverage the contributions of communities, local authorities and the
private sector, as well as of government and international financial institutions.

GE4102 Module Project - Urban Planning and Competitive Advantage: Singapore

Singapore - city state
Singapore was founded as a trading post by the British early in the nineteenth century.
Until independence in 1965 the trading interests dominated and government was only
interested in supporting these interests. In 1965 the new state was cut off from its
hinterland and set about pursuing a survival strategy. The good world communication
based upon trade provided a useful base, however it was decided that the state's
industry needed to be developed if it was to secure its economic future. The state took
the lead in organising this economic strategy. New institutional structures were
needed to facilitate, develop and control the foreign direct investment, such as the
Development Bank of Singapore and the Jurong Town Corporation that provided the
infrastructure requirements. One of the most important bodies was the Economic
Development Board (EDB), an arm of government that developed strategies to induce
potential investors. So from this early period the Singapore government was actively
involved in city promotion. The interventionist stance continued through the 1970s
with the EDB continuing to ‘play an important role in the ongoing adjustments of the
Singapore economy to niches and opportunities in global capitalism’ (Chua, 1998,
p.983).
The limits on the size of the work force and the restricted land area made the
government realise that it was becoming increasingly uncompetitive in labour
intensive industry. An Economic Committee was established which concluded that
Singapore should focus on developing as a service centre and seek to attract company
headquarters to serve South East Asia, develop tourism, banking, and offshore-based
activities (Chua, 1998). The land requirements for this service sector orientation had
already been prepared in the early 1970s when the government had already realised
that it lacked the banking infrastructure for a modern economy. A new banking and
corporate district known as the ‘Golden Shoe’ was planned incorporating the historic
commercial area. This now houses all the major companies and various government
financial agencies. Thus the economic development of Singapore has been very
consciously planned and the latest strategy is very clearly oriented to establishing
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Singapore as a ‘world city’. It is well placed to succeed as it can draw upon its historic
roots as a world trading centre, has invested heavily in telecommunications and air
transport infrastructure, is well located to other Asian economies, has developed a
safe and clean environment and utilised the international language of English.
The centrally planned state economic strategy is closely linked to land use and
development planning. The EDB is a key influence on the strategic land use plans that
are prepared by another Board of government, the Urban Redevelopment Authority
(URA). The private sector is also involved in the planning process as they are invited
to give their opinions in the committees that are set up to advise these government
Boards. Thus in preparing its plans the URA responds to the views of the various
advisory committees and the Boards and Ministries of government, in which the EDB
plays an important agenda setting role. The URA translates these discussions into land
use and development terms through its preparation of a strategic plan for the whole
island, called the Concept Plan. The latest Concept Plan was completed in 1991 and
indicates the future development of the state in three stages, 2000, 2010 and ‘year X’.
The mission statement of the URA is to ‘plan and facilitate the physical development
of Singapore into a tropical city of excellence’ (URA, 1998, p1). Previous statements
also included the word ‘regulate’; however this has been dropped as it was not felt to
be business friendly. The Concept plan is certainly clearly and openly oriented
towards the attraction of business; ‘economic growth has always been our most
pressing concern. It still is, even though Singapore is already a major centre in terms
of commerce, industry and finance. But progress does not wait. Singapore cannot
afford to take a complacent view now that we have achieved a reasonable level of
business success. If we are to help lift Singapore to higher living standards, the
muscle will be provided by our economy’ (URA, 1991, p.18). The plan seeks to
ensure this continued economic growth through ‘restructuring the city’ to ensure that
the facilities needed by future business are planned now, this includes transport and
telecommunication infrastructure, land, and environmental quality. A major concern
is to avoid congestion through over-concentration in the central area and so the New
Concept Plan deviates from previous plans by having a strong decentralisation policy.
This includes four major regional centres each serving 800,000 people. This does not
mean that the existing CBD will not also grow. After studies of other world cities a
major extension of the existing financial district is planned around the Marina Bay
attempting to replicate the vitality of other cities with waterside central areas such as
Sydney and San Francisco (Chua, 1989). This is to be achieved by major land
reclamation of 667 hectares. Part of this has already been developed as a conference
and exhibition zone and the rest will be used for CBD expansion. However the need
for vitality has been recognised and a mixed zoning approach is adopted to include
housing and entertainment.
One of the new features of the latest plan is a broader conception of what contributes
to economic success. This encompasses high quality residential provision, a good
environment, leisure facilities and exciting city life. Thus there is more provision for
low density housing often in waterfront communities linked to beaches and
recreational facilities. The lower housing densities will put considerable pressure on
the very limited land available for development. This creates problems for another of
the plan’s aims which is to stress environmental quality. More and more of the
remaining open area will be developed and the only natural landscape surviving will
be a small zone in the centre of the island that serves as a water catchment area. The
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environmental policy is therefore very much concerned with the ‘greening’ of
development - what is referred to as the ‘beautification’ of Singapore. The plan
concentrates on green zones to define the boundaries of settlements and along
transport corridors. The incidental green provision within housing areas is also given
considerable attention. Much of the environmental provision is linked to the prime
objective of attracting business, e.g. golf courses, recreation areas, and beaches. The
plan places much emphasis on good leisure provision and the need to exploit its island
setting. One way of providing this is through further land reclamation to create a
whole new island devoted to leisure and luxury housing which will stretch from the
central area to the airport. The planners have recently also given much attention to the
concept of the 24-hour city and the café society. A promotion has taken place along
the Singapore river to create a café zone. This has included the realisation, rather late
in the day, of the value of retaining older buildings and the creation of a continuous
riverside promenade (Yu-Ning, 1998). Since the relaxation in 1996 of strict guidelines
on outdoor eating areas this has become an extremely popular area in the evenings
(Fong, 1997). Also in 1998 the URA created a new entertainment area in the centre of
the city which they are promoting as ‘the city’s one-stop dynamic entertainment
scene’ (Brennan, 1998, p.4). It can be said that a current concern is how to use the
planning system to create opportunities for greater spontaneity.

GE4102 Module Project

URBAN PLANNING AND
COMPETITIVE ADVANTAGE:
London, Sydney and Singapore
Andy Thornley
London School of Economics and Political Science
LSE LONDON Discussion Paper No. 2
May 1999
URBAN PLANNING AND COMPETITIVE ADVANTAGE:
London, Sydney and Singapore
By Andy Thornley
Abstract
This paper argues that urban plans in many major cities throughout the world have
become increasingly oriented towards promoting the city’s competitive advantage.
Strategic land use plans during the 1990s have often been seen as tools to implement
particular visions for the future of cities and linked to a particular rhetoric about
economic change. A certain logic has been accepted in which economic globalisation
is seen to lead to increased competition for investment between cities. The paper
seeks to shows that this logic does not acknowledge the full complexity of the
globalisation process and the debates it has generated. Through an examination of
London, Sydney and Singapore the article shows how the strategies that have been
prepared for these cities during the 1990s were geared towards enhancing their ‘world
city’ status. It is argued that this approach produced particular institutional
arrangements and strong private sector influence. As a result the plans emphasised a
particular economic approach oriented to inward investment. Alternative reactions to
globalisation are not explored and environmental and social concerns neglected.
Acknowledgements
The research that underpins this article was only possible with the help of a number of people and
organisations. I would like to thank the LSE for research funding that enabled me to travel to Sydney
and Singapore and the University of Western Sydney for financially supporting my stay in Sydney. I
am greatly indebted to Michael Bounds from that University, not only for organising my grant and
providing such generous hospitality, but also for giving me so much of his time in discussing the
planning issues of the city. In Singapore I am similarly grateful to Kris Olds of the National University
of Singapore, particularly for his incisive academic insights and to Chang Yong Ching of the Urban
Redevelopment Agency for explaining the work of his organisation to me in such detail. I would also
like to thank all the other people in each city who gave me their time so generously.
1
URBAN PLANNING AND COMPETITIVE ADVANTAGE:
London, Sydney and Singapore
Recently there has been a renewed interest in urban planning throughout the cities of
the developed world. Notwithstanding the influence of neo-liberal ideas, city
politicians have been keen to formulate urban visions and strategies. This paper takes
the view that this revival of strategic thinking is the result of particular reactions to
changes in the global economy. It suggests that these economic changes infuse spatial
decisions; they are interpreted in particular ways, influence the networks of power,
affect institutional arrangements and become embedded in particular assumptions and
priority-setting agendas. The paper focuses on a particular aspect of this process. It
explores the way in which the strategic land use plans of three cities during the 1990s
have been influenced by similar reactions to global economic change. It will argue
that the political response has been to focus on the economic competition between
cities and that this has created the parameters within which the plans have been
produced. The policies adopted by the cities assume the need to prioritise inward
investment. This has resulted in the production of ‘visions’ that are primarily
documents to communicate with the international business community and strategic
plans that show how their needs will be accommodated. It has resulted in a rather
restricted treatment of environmental and social aspects. The paper therefore explores
the way in which the renewed interest in strategic planning has been stimulated by
this competitive attitude. Rhetoric has developed based on a particular conception of
global economic change and this has led to the formulation of similar policy
approaches in the three cities. The aim is to show the links between the chosen
rhetoric, the representation of interests and the priorities embodied in the strategic
plans.
Globalisation is often presented as the new dynamic influencing all dimensions of
life. Different aspects can be highlighted (e.g. Sklair, 1995, focuses on the spread of
the culture of consumerism). This paper will focus on the economic dimension, the
increasingly global reach of economic processes, as this is the aspect that has had the
greatest impact on planning. In the last decade globalisation ‘has been at the centre of
most political discussions and economic debates’ (Giddens, 1998, p.28) and has
become a ‘buzz-word’ of the ‘nineties (Stilwell, 1997, p.1). However it is a contested
concept, for example; does it match reality or is it an ideological construct; is it
inevitable or can it be controlled; is there anything new about it? There is also a
political aspect to the debate as it is often argued that nation states are losing some of
their power to both supra- and sub- national levels and it is commonly observed that
economic globalisation has enhanced the importance of cities. Thus the process of
globalisation is complex and generates differing interpretations. The paper attempts to
show that this was not adequately reflected in the strategic thinking of the three cities
in the 1990s.
The first part of the paper briefly reviews the debates on globalisation and the
resultant changes in major cities of the developed world. Policy makers in these cities
are responding to these real or perceived pressures. It then turns to the way this has
been interpreted in the strategic urban planning of three cities; London, Sydney and
Singapore. London is universally identified at the top of the global city hierarchy as
one of the ‘World Cities’, Sydney is a good example of a city playing a dominant
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regional role while, in an era in which cities are said to be increasingly autonomous,
Singapore - a city state - is an interesting example.
Globalisation and the ‘World City’ hypothesis
It is argued that a new form of economic globalisation is taking place that is leading to
changes in the economic activity of cities. As a result a hierarchy of cities is evolving
with ‘World Cities’ at the apex. The policy response to these developments is
dominated by the notion of enhanced competitiveness. There are several links in this
chain of reasoning: new economic forces are operating at a global level; these forces
are inevitable; changes are taking place in the nature of cities; the cities are becoming
more powerful vis-a-vis nation states; there is increasing competition between cities;
planning must respond with a new approach that accommodates to globalisation and
increased competition.
The general definition of economic globalisation is that economies are now
networked across the whole world through technological developments. This has
facilitated easier physical movement around the globe through improved air transport
and an enormous advance in the use of ‘electronic space’ as a result of new
telecommunication and computer technology (Castells, 1996). The interconnected
nature of the global economy is demonstrated when the problems, in particular
national economies, e.g. Russia, Indonesia or Brazil, create ripples throughout the rest
of the world economy. Another way of viewing globalisation is through the behaviour
of companies. It is said that the major players are global in their operation making
their decisions over production, administrative organisation, location and marketing
without regard to national boundaries. This view has been particularly strong in the
business and management literature (e.g. Ohmae, 1995). However it has been
criticised for over emphasising the demise of the nation state for ideological purposes
(Gray, 1998). Others argue that there is nothing new about globalisation and make
references to other periods in history that were equally global (Knox, 1997; Storper,
1997; Hirst and Thompson, 1996). Such criticisms, although correctly identifying that
much of the literature has an ideological role, are weakened by not acknowledging
that the properties of modern globalisation, such as its extensiveness or intensity, may
create conditions that are significantly different from the past.
Current empirical evidence is the base for a second criticism of the claim that the
nation state is withering. This criticism suggests that the decline has been exaggerated
and that instead there is a shifting of power and responsibilities between supranational,
national and sub-national levels in which the national level still has an
important role. Rather than a global-national duality a new and more complex pattern
is emerging (Sassen, 1995; Hobsbawm, 1998; Brenner, 1998). This pattern includes
global regulation, regional structures such as the EU and NAFTA as well as the
greater autonomy of cities. In this pattern nation states may still play a pivotal
mediating role. Evidence also suggests that there are not many truly transnational
corporations and that most multinational companies still have roots in their home
country. Perfect competition and information does not exist in the global market
place. In a situation of continued risk, local and cultural factors are still important, for
example, companies draw on very specific localities for their research and
development activity (Storper, 1997).
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Notwithstanding the above debates globalisation is widely seen as creating a new role
for cities. A theme that dominates the literature is the discussion of a new world urban
hierarchy. One of the first expressions of this was in the article by Friedman and
Wolff (1982), developed by Friedman (1986) as the “world city hypothesis”. Cities
are characterised by the degree to which they can be identified as global players and
Friedman identified primary and secondary cities. Others have taken up this theme
and devised their own hierarchies, for example Thrift (1989) identified New York,
London and Tokyo as global cities, a second tier as zonal centres and a third as
regional centres. Such typologies depend upon the criteria used and Friedman and
Thrift focus particularly on the concentration of international institutions, banks and
the headquarters of transnational corporations. Thus the primary determination of
world city status is seen to be the administrative decisions of such companies. There
is a general consensus that New York, London and Tokyo stand apart at the top of the
hierarchy. These are the three cities explored by Sassen in her seminal work, The
Global City (1991). She builds on the world city hypothesis and conducts a detailed
empirical investigation of economic activity, labour markets and demography. The
central theme of her work is that these cities provide the location for the principal
command and control points for international business and commerce. As
globalisation allows economic functions to disperse more widely round the globe so
the need for central control and management also increases and these functions are
concentrated in fewer, key, locations. Certain other activities are also seen to operate
at a global level because of their nature - here a principal example is the financial
services industry. The intense concentration of such institutions generates further
activity in the form of other services or the production of financial, computing or
media innovations.
Another theme of Sassen’s work is the increase in social polarisation in world cities
characterised by a high wage sector working in the globally oriented activities and a
low-wage, often immigrant, population servicing these people. Such social
differentiation in world cities is also discussed by other authors (e.g. Fainstein et al
1992; Mollenkopf and Castells 1991) although a simplistic notion of a dual city is
dismissed in favour of a more complex pattern of change. In his empirical work on
London, Hamnett (1994) concludes that a process of professionalisation has been
taking place rather than polarisation while others (e.g. Bruegel, 1996) stress the need
to explore the gender dimension. The main point of these discussions for planners is
that whatever the details of these social changes they have spatial implications. For
example gentrification has been occurring for a long while in these cities but the new
economic changes may be creating an intensification or variation in these processes.
The question arises over whether there are adverse consequences for the city that
require some form of policy intervention. Peter Hall concludes that these processes
result in ‘acute problems of urban imbalance and social equity for cities and their
populations: islands of affluence surrounded by seas of poverty and resentment. This
is one of the main questions to be addressed in strategic urban thinking’ (1998,
p.964).
The value of the “world city hypothesis” and Sassen’s work is that it established firm
links between the global economic processes and changes within cities themselves,
however it has also attracted a number of comments. These largely relate to the need
to build on the work to provide greater analytical complexity. Differences between the
4
three top cities are downplayed. For example there are more immigrants in New York;
the state plays a greater role in diminishing some of the effects of polarisation in
London (Hamnett, 1996); and the major companies in Tokyo, although operating
internationally, are largely Japanese businesses firmly embedded in the national
economic and political networks. Many of the characteristics, such as the growth of
financial services, identified in the three cities can also be detected further down the
city hierarchy. It is not clear how far the characteristics are a general phenomena and
how far they are restricted to the three top cities. Similarly the social polarisation can
be said to be the result of more general economic changes not confined to those cities
attracting the core command and control functions. There is also said to be a
deterministic flavour to the analysis. As Storper puts it, to regard the city as a kind of
machine responding to outside forces limits explanatory power (1997). A greater
historical dimension would have strengthened the discussion of the relative
importance of local contexts and cultures (Dieleman and Hamnett, 1994).
Thus it can been seen that ‘globalisation’ and the ‘world city hypothesis’ are concepts
that generate considerable debate and potential for further analytical development.
The aim in providing this outline is to show that the topic is complex and contains
considerable variety of opinion. This contrasts with the approach taken in three cities
that are explored in the rest of the paper. In these case studies a rather homogeneous
and simplistic stance is adopted. In all three cases it is assumed that if cities are to
gain competitive advantage they need to beat their rivals in the game of attracting
inward investment in the leading sectors of the new globalised economy. As Harvey
noted almost ten years ago there has been a shift in the attitudes of urban
government from a managerial approach to entrepreneurialism (Harvey, 1989). This
entrepreneurial stance includes viewing the city as a product that needs to be
marketed. There has been extensive analysis in recent years on the rise of city
marketing in which image is seen to be of supreme importance (e.g. Ashworth and
Voogd, 1990; Smyth 1994; Philo & Kearns, 1993; Paddison 1993). The particular
image or vision adopted can determine policy priorities - a typical emphasis is on
mega-events and developments that attract media attention. The city marketing
approach also assumes certain customers for the city product. These customers are
likely to be the decision-makers in the international institutions identified by
Friedman, Sassen and others as the leading determinants of world city status. The
land, buildings and infrastructure required for these institutions and the activities
linked to them will figure strongly in a city marketing strategy. The provision of these
facilities can potentially create problems for some existing citizens, for example
through higher housing costs, gentrification, or airport noise, and can also lead to lost
opportunities as resources are devoted to these world city functions.
The following sections of the paper will explore the strategic planning for London,
Sydney and Singapore in recent years. The hypothesis explored is that the response to
globalisation has produced a renewed emphasis on strategic thinking that directly taps
into the developments in the global economy. The three cities increasingly view
themselves as being in a competitive environment in which they have to take a
proactive stance to capture economic activity and maintain their position in the world
city hierarchy. New urban strategies are seen as an important part of this approach and
are closely linked to city marketing. As a result economic objectives dominate the
plans.
5
London - a world city
London was a relative latecomer to the business of city promotion, handicapped by its
lack of any city-wide government after the abolition of the Greater London Council in
1986. The London Planning Advisory Committee (LPAC) had been set up in the
wake of abolition to discuss planning issues that crossed the boundaries of the thirtythree
local planning authorities within London. This committee, that had
representation from these authorities, prepared strategic planning reports but it was
only an advisory body. It presented its ideas to central government which prepared the
statutory strategic planning guidance for the city. In tune with the non-interventionist
ideology of the period, the guidance in 1989 was only a few pages long and set out the
main parameters within which the local authorities should operate. As a result of the
ideology of non-intervention and institutional fragmentation, very little strategic
planning took place after the abolition of the GLC. LPAC produced strategic policies
but these had limited impact on central government. However from the late 1980s
onwards there was increasing pressure for more concerted action. The City of
London, a small local authority covering the financial district with unique institutional
arrangements based upon its medieval charter that privileges the business community,
has been active in commissioning reports and funding promotional bodies. For
example it commissioned the London Business School to analyse the factors needed
to ensure the continued success of London’s financial services in the new competitive
environment (London Business School, 1995). One of the conclusions of this study
was the difficulty posed by the lack of a single voice to promote London. A similar
conclusion was expressed in the earlier consultant’s report London: World City
Moving into the 21st Century (Coopers & Lybrand Deloitte, 1991). This was a study
that surveyed leading international business opinion in order to see what London
needed to do to retain its competitive position. It was commissioned by LPAC and
supported by the City of London, City of Westminster and London Docklands
Development Corporation.
By the early 1990s central government had also accepted the view that more needed
to be done to enhance London’s competitive position to counteract its fragmented
institutional structure (Newman and Thornley, 1997). In 1992 central government set
up the London Forum to promote the capital but the following year this was merged
into London First, a similar body set up by the private sector. This set the pattern of
private sector leadership with central government backing that was to dominate
strategic thinking in London over the next five years. In the same year the
government claimed that ‘other European cities are organising themselves to compete
more effectively for inward investment’ (DoE, 1993, p.2) and as a result an inward
investment agency London First Centre was established. In 1993 yet another initiative
was announced called City Pride. The idea was that central government would give
some financial backing to its three major cities if they produced visions or strategies
to show how they could make themselves more successful in the competition with
other cities in the world. They were asked to prepare a prospectus of future priorities
and action which co-ordinated the public, private and voluntary sectors. In London the
job of orchestrating this exercise was given to the private sector body London First.
Meanwhile central government was becoming more and more involved in strategic
planning for the city as the problems of fragmentation continued. It established a
Minister for London, a Cabinet Sub-Committee for the capital, the Government
Office for London with representation from the difference Ministries with interests in
6
London policy, and produced a new enhanced Strategic Guidance for London that
extended to seventy-five pages. In 1995 they also established the Joint London
Advisory Panel to advise the Cabinet sub-committee. This new body consisted of the
same membership as that of the London Pride Partnership led by London First. This
arrangement illustrates again the close working relationship between central
government and the private sector.
In 1995 the London Pride Prospectus (London Pride Partnership, 1995) was published
and set the frame for strategic priorities. In its opening statement it sets out its aim to
ensure London’s position as the only world city in Europe. It seeks to achieve this
through three interrelated missions of a robust and sustainable economy drawing on a
world class workforce, greater social cohesion, and a high quality provision of
infrastructure, services and good environment. Although it contains short sections on
targets for affordable housing and policies to improve air quality, energy conservation
and waste management, most of the prospectus is devoted to business growth, the
development of skills and transport provision. Measures are set out to support
business and attract inward investment such as adequate provision of good sites,
telecommunication facilities, suitably trained labour market, promotional activity,
improved access to the airports and better public transport. The priorities of the
Partnership then had a strong influence on central government thinking through the
London Advisory Panel and its input into the revised and expanded Strategic
Guidance for London (Government Office for London, 1996a). In this new Guidance
it is said that ‘the promotion of London as a capital of world city status is fundamental
to government policy. To remain competitive, London needs a clear sense of
direction…..Strategic Planning Guidance sets the framework for planning action by
all those involved in the development process’ (p.2). It continues by warning that
London is under considerable pressure from rival cities such as Paris, Frankfurt,
Barcelona and Berlin who are ‘fighting harder than ever to attract investment and
business opportunities’ (p.3). The same year the government produced another
document A Competitive Capital: The Government’s Strategy for enhancing London’s
Competitiveness (GOL, 1996b) that sets out all the government policies aimed at the
major objective of ensuring ‘that London retains its rightful place at the top of the
league of world cities’ (p.3). It reinforced the role of the Strategic Guidance for
London in ensuring that local planning authorities recognise London's world city role
and the need to address competitiveness.
In 1997 a major change took place in British politics when the Labour party under
Tony Blair won the election after eighteen years of Conservative rule. This has had a
significant effect on the institutional context for strategic planning in London. A
completely new political arrangement, the Greater London Authority, has been
devised. For the first time in history this includes an elected Mayor for the whole of
London. A major theme for the new authority will be co-ordination and integration of
policy. It will be responsible for drawing up a new plan for the co-ordination of land
use and development across the whole city, to be called the Spatial Development
Strategy. It will also be required to produce an integrated transport strategy, an air
quality management strategic plan, waste management strategy, regular state of the
environment reports, a strategy for culture, media and leisure, and an economic
development strategy (DETR, 1998). The European Union funded a research project
called The London Study (ALG, 1999) which began work in 1997 and reported two
years later. This carried out an analysis of London and set out a future vision and
7
action plan for a sustainable London. It set out an agenda for the new government of
London that sought to be competitive, sustainable and socially exclusive. Meanwhile
the economic strategy, the focus for emphasising competitiveness and the need to
attract inward investment will be produced under the London Development Agency -
an arm of the new authority. Work has already begun towards this strategy in its
precursor the London Development Partnership, giving it a head start over the other
work of the GLA. It will be intriguing to see how the different strategies are coordinated
and any differences in priorities resolved. In this context it is relevant to
note that Tony Blair sees globalisation as inevitable and requiring an accommodating
stance from government. He has said that ‘since it is inconceivable that the UK would
want to withdraw unilaterally from the global market-place, we must instead adjust
our policies to its existence’ (Blair, 1996, p.86).
Sydney - a regional centre
Sydney has established itself as the leading Australian city in world city terms (Baum,
1997; Stimson, 1995). It is the major international air hub, is the most important
financial centre and, during the growth in Asian economies, extended its role to
become a location for many transnational corporations wanting to service south east
Asia. The strategic planning of the Sydney metropolitan region is undertaken by the
State of New South Wales (NSW). In 1988 a Liberal-National coalition won the state
election and formed a government with an ideology of limited government, cuts in
state finances, and privatisation. The state government was keen to attract global
activities to Sydney but found it difficult to provide infrastructure and tax
concessions, as the main revenue raising powers were held by the Federal
Government. As a result ‘state government land holdings and urban planning and
development powers have become the main instruments used by the NSW state
government to attract global investment’ (Searle and Bounds, 1996, p.5). In 1995 the
state government produced a new metropolitan strategy called Cities for the 21st
Century. It was heralded as a new approach to strategic planning that was more
broadly based and more flexible, ‘as we move into an age of more rapid change and
diverse global influences, a metropolitan planning strategy needs to be dynamic rather
than rigid’ (Department of Planning, 1995, p.12). The new approach attracted some
criticism from local government and planners because it lacked analysis and was too
vague (Moseley, 1995).
In attempting to encourage the development of a world city role, suitable sites for new
commercial developments are of key importance in attracting the command and
control function identified by Sassen. One of the policies in Cities for the 21st
Century was ‘the promotion nationally and internationally of Central Sydney as a
corporate headquarters and financial centre and also as a tourism centre, and the
development of planning and management in support of these roles’ (Department of
Planning, 1995, p.92). It is therefore interesting to see how the state government
sought to implement such a policy when the local authority, the City of Sydney, had
opposing views. The state has the power to intervene in any planning decision that has
strategic significance. Searle (1998) shows how it used its powers on numerous
occasions during the 1980s and 1990s. In this period the state adopted a prodevelopment
ideology whatever the political control while the City of Sydney was
subjected to local community pressures. This led to many conflicts particularly
8
regarding the retention of buildings with heritage value. Such opposition was overruled
by the state using its power to make decisions on large developments - on some
occasions this contravened the controls set out in the local plans. Other mechanisms
were also used to ensure the implementation of state policy. In the early 1980s the
state decided to develop Darling Harbour as a major recreation and convention centre
with a linked mono-rail (Huxley, 1991). These had to be built in time for the 1988
Bicentennial year but the requirement to conduct an environmental impact assessment
created an obstacle in this tight timetable. So the state passed a special Act of
Parliament to give planning powers to a new Darling Harbour Authority that would
not be subject to council controls or planning laws (Searle, 1998; Daly & Malone,
1996). When professional and community opposition developed over the proposed
mono-rail this was given the same treatment. Another ploy adopted by the state was to
change the boundary of the City of Sydney to try and ensure a local council
sympathetic to global city development. In 1988 a special Central Sydney Planning
Committee was established dominated by State appointees. This committee had
responsibility for the preparation of local plans for the City and for decisions on all
developments with a value of over $50m.
In 1995 the Labor Party returned to control the state. Most of the previous
government's Cities for the 21st Century strategy matched their own electoral
programme. However it was felt that Cities for the 21st Century did not explore
sufficiently the international context and so they commissioned a new study (Searle,
1996). In the forward to the study report, entitled Sydney as a Global City, the
Minister for State and Regional Development says ‘we must ensure that planning for
Sydney supports a competitive and efficient economy…..planning for new and
efficient road and rail networks, supporting existing employment locations and
providing a continuing supply of sensibly located land are key elements in this focus’
(Searle, 1996, p.v). The report presents a very thorough analysis of the factors that
influence Sydney’s potential as a world city and the implications for planning. In
1997 the State produced a new review of strategic planning called A Framework for
Growth and Change (Department of Urban Affairs and Planning, 1997a). This
adopted many of the approaches of the previous plan and had an expanded section on
fostering a competitive and adaptable economy, drawing on the work in Sydney as a
Global City. New roads and airport expansion were proposed. A Framework for
Growth and Change pointed out that the State would continue to use its powers to
make decisions over major projects as this helps to attract major inward investment
and ‘encourage major companies to locate regional headquarters and facilities in the
Region’ (p.59). Meanwhile the city had been bidding for the Olympic Games under
the slogan of being the ‘Green Games’. This campaign heightened the profile of
environmental issues in the city. Although many of the principles in the winning
Olympic bid were watered down in the process of implementation the increased
sensitivity towards the environment had its effect on the strategic plan. Links were
made between economic competitiveness and environmental quality. However the
social impact of a global city strategy was not addressed.
In 1997 a new body was established called The Committee for Sydney - officially
launched by the Premier of NSW in August of that year. It comprises business and
community leaders and ‘seeks to act as a catalyst for building a better future for the
city on issues related to the environment, education, business investment and the arts.
The Committee seeks to make Sydney an increasingly significant international centre
9
of commerce and to generate future employment opportunities for the city’
(Committee for Sydney, 1998). ‘We are convinced that we have to think smarter,
work harder and plan better if we are to build a viable future for our city in an
intensely and increasingly competitive regional and world economy’ (Committee for
Sydney, 1997, pp.1-2). In the Committee’s policy statement it places considerable
emphasis on the need for a plan or vision. It says ‘many of the world's major cities -
such as Barcelona, Berlin, London, Paris, Rome and Venice are showing us the way.
They have developed clear visions of their future and are applying long-term strategic
plans to realise them’ (1997, p.5). The accuracy of this comment could certainly be
questioned but its aim is clear. It is trying to imply that Sydney is falling behind in the
competitive urban development game. The following sentence in the statement makes
this even clearer when it is claimed that Sydney had no long-term strategic plan,
conveniently ignoring the documents discussed above. This suggests that what the
Committee really had in mind was an alternative plan which fitted their aims more
closely. So it was no surprise when in 1998 they commissioned a study entitled
Sydney 2020 from consultants Coopers & Lybrand to ‘determine what is needed to
develop and enhance Sydney's future as a world city’ (Committee for Sydney, 1998).
Singapore - city state
Singapore was founded as a trading post by the British early in the nineteenth century.
Until independence in 1965 the trading interests dominated and government was only
interested in supporting these interests. In 1965 the new state was cut off from its
hinterland and set about pursuing a survival strategy. The good world communication
based upon trade provided a useful base, however it was decided that the state's
industry needed to be developed if it was to secure its economic future. The state took
the lead in organising this economic strategy. New institutional structures were
needed to facilitate, develop and control the foreign direct investment, such as the
Development Bank of Singapore and the Jurong Town Corporation that provided the
infrastructure requirements. One of the most important bodies was the Economic
Development Board (EDB), an arm of government that developed strategies to induce
potential investors. So from this early period the Singapore government was actively
involved in city promotion. The interventionist stance continued through the 1970s
with the EDB continuing to ‘play an important role in the ongoing adjustments of the
Singapore economy to niches and opportunities in global capitalism’ (Chua, 1998,
p.983).
The limits on the size of the work force and the restricted land area made the
government realise that it was becoming increasingly uncompetitive in labour
intensive industry. An Economic Committee was established which concluded that
Singapore should focus on developing as a service centre and seek to attract company
headquarters to serve South East Asia, develop tourism, banking, and offshore-based
activities (Chua, 1998). The land requirements for this service sector orientation had
already been prepared in the early 1970s when the government had already realised
that it lacked the banking infrastructure for a modern economy. A new banking and
corporate district known as the ‘Golden Shoe’ was planned incorporating the historic
commercial area. This now houses all the major companies and various government
financial agencies. Thus the economic development of Singapore has been very
consciously planned and the latest strategy is very clearly oriented to establishing
10
Singapore as a ‘world city’. It is well placed to succeed as it can draw upon its historic
roots as a world trading centre, has invested heavily in telecommunications and air
transport infrastructure, is well located to other Asian economies, has developed a
safe and clean environment and utilised the international language of English.
The centrally planned state economic strategy is closely linked to land use and
development planning. The EDB is a key influence on the strategic land use plans that
are prepared by another Board of government, the Urban Redevelopment Authority
(URA). The private sector is also involved in the planning process as they are invited
to give their opinions in the committees that are set up to advise these government
Boards. Thus in preparing its plans the URA responds to the views of the various
advisory committees and the Boards and Ministries of government, in which the EDB
plays an important agenda setting role. The URA translates these discussions into land
use and development terms through its preparation of a strategic plan for the whole
island, called the Concept Plan. The latest Concept Plan was completed in 1991 and
indicates the future development of the state in three stages, 2000, 2010 and ‘year X’.
The mission statement of the URA is to ‘plan and facilitate the physical development
of Singapore into a tropical city of excellence’ (URA, 1998, p1). Previous statements
also included the word ‘regulate’; however this has been dropped as it was not felt to
be business friendly. The Concept plan is certainly clearly and openly oriented
towards the attraction of business; ‘economic growth has always been our most
pressing concern. It still is, even though Singapore is already a major centre in terms
of commerce, industry and finance. But progress does not wait. Singapore cannot
afford to take a complacent view now that we have achieved a reasonable level of
business success. If we are to help lift Singapore to higher living standards, the
muscle will be provided by our economy’ (URA, 1991, p.18). The plan seeks to
ensure this continued economic growth through ‘restructuring the city’ to ensure that
the facilities needed by future business are planned now, this includes transport and
telecommunication infrastructure, land, and environmental quality. A major concern
is to avoid congestion through over-concentration in the central area and so the New
Concept Plan deviates from previous plans by having a strong decentralisation policy.
This includes four major regional centres each serving 800,000 people. This does not
mean that the existing CBD will not also grow. After studies of other world cities a
major extension of the existing financial district is planned around the Marina Bay
attempting to replicate the vitality of other cities with waterside central areas such as
Sydney and San Francisco (Chua, 1989). This is to be achieved by major land
reclamation of 667 hectares. Part of this has already been developed as a conference
and exhibition zone and the rest will be used for CBD expansion. However the need
for vitality has been recognised and a mixed zoning approach is adopted to include
housing and entertainment.
One of the new features of the latest plan is a broader conception of what contributes
to economic success. This encompasses high quality residential provision, a good
environment, leisure facilities and exciting city life. Thus there is more provision for
low density housing often in waterfront communities linked to beaches and
recreational facilities. The lower housing densities will put considerable pressure on
the very limited land available for development. This creates problems for another of
the plan’s aims which is to stress environmental quality. More and more of the
remaining open area will be developed and the only natural landscape surviving will
be a small zone in the centre of the island that serves as a water catchment area. The
11
environmental policy is therefore very much concerned with the ‘greening’ of
development - what is referred to as the ‘beautification’ of Singapore. The plan
concentrates on green zones to define the boundaries of settlements and along
transport corridors. The incidental green provision within housing areas is also given
considerable attention. Much of the environmental provision is linked to the prime
objective of attracting business, e.g. golf courses, recreation areas, and beaches. The
plan places much emphasis on good leisure provision and the need to exploit its island
setting. One way of providing this is through further land reclamation to create a
whole new island devoted to leisure and luxury housing which will stretch from the
central area to the airport. The planners have recently also given much attention to the
concept of the 24-hour city and the café society. A promotion has taken place along
the Singapore river to create a café zone. This has included the realisation, rather late
in the day, of the value of retaining older buildings and the creation of a continuous
riverside promenade (Yu-Ning, 1998). Since the relaxation in 1996 of strict guidelines
on outdoor eating areas this has become an extremely popular area in the evenings
(Fong, 1997). Also in 1998 the URA created a new entertainment area in the centre of
the city which they are promoting as ‘the city’s one-stop dynamic entertainment
scene’ (Brennan, 1998, p.4). It can be said that a current concern is how to use the
planning system to create opportunities for greater spontaneity.
Discussion
This paper began with the hypothesis that cities have been taking a greater interest in
formulating strategic plans but that these have limited objectives. The motivation for
these plans derives from the assumption that cities have to be more competitive in the
context of globalisation. Politicians have adopted the view that it would improve the
competitiveness and promotion of their cities if they had some kind of co-ordinated
vision or strategy. This is evident in all three cities studied. In London the abolition of
the GLC left a vacuum in metropolitan government that was filled by a wide range of
different organisations. However by the early 1990s there was pressure from the
private sector for a more visible and concerted promotion of the city, including the
presentation of a future vision. A number of research reports were published
exploring London as a world city and the threat of other European cities was
constantly proclaimed. The close co-operation of central government and the private
sector was a feature of London governance during this period. It resulted in the
expanded Strategic Guidance for London and the London Pride Prospectus both
stressing the importance of economic competition. In Sydney the importance of
promoting the city as a world city was also explicitly recognised and the state
government commissioned a special study. The ideas in this study then fed into the
revised metropolitan strategy prepared in 1995. The Singapore government since
independence has taken a strong interventionist role. Deciding on the direction or
vision for the city has always been a major part of its task. In recent years promoting
the city as a major financial and commercial centre for the region has been the central
aim. This has now been expanded with greater attention given to the role of leisure
and quality of life in contributing to economic growth. These promotional aims
provide the foundation for the city strategic plan, the Concept Plan.
In all three cases the strong influence of the private sector can be detected in setting
the priorities for the future vision. London First, a private sector body, had the ear of
12
central government and co-ordinated the London Pride Prospectus. In Sydney the new
Committee for Sydney, a similar organisation, is pressing hard for even greater
consideration of Sydney’s world city role. The Singapore government uses its
Economic Development Board to set its strategy aims. This Board seeks advice from
the private sector and sets the framework for the planning strategies.
The global orientation of the strategies in all three cities produces an emphasis on new
sites for commercial, convention and leisure activities. These need to be in central or
prestigious locations such as by the waterside. It is interesting to note the institutional
devices that are used to ensure that the political decisions are made to favour such
investment in these locations. In London the central area bodies have dominated the
London-wide strategies during the 1990s. The City of London, the City of
Westminster and the government appointed quango, the London Docklands
Development Corporation (LDDC), exerted their considerable power. In the dockland
development area the LDDC replaced the elected local authorities in the control of
development decisions. In Sydney the State used its power to intervene and take over
strategic development, it set up a special authority for the Darwin Harbour
development that was not subject to normal laws, and it by-passed the elected council
for the central area when it started showing NIMBY tendencies. The city-state of
Singapore with its single authority had comprehensive and positive powers that
enabled it to penetrate local level decision-making and devise dramatic and extensive
plans for the expansion of the CBD. This provided a long term and well co-ordinated
approach helping to foster investors' confidence about the future of Singapore's world
city role.
Thus during the 1990s all three cities have been developing new metropolitan
strategies. These strategies are all very firmly rooted in the discourse about
competition between cities and the use of strategies for promotion. The major aim of
attracting inward investment is reflected in the influence of private sector bodies. In
all cases special arrangements have been set up to incorporate these interests.
However the cities are not acting autonomously and national, or in the Sydney case
regional, government is still playing a major role. This expresses itself particularly in
the way higher level governments set the framework within which cities operate and
encourage or sometimes enforce the competitive approach. These higher level
governments are also very active in setting up the special institutional arrangements
for important development projects, thus bypassing local democracy. These devices
ensure that the economic goals are not diverted by local community opposition. The
institutional arrangements in the three cities present a more complex picture than the
simple nation-state/city dichotomy mentioned in some of the literature. There is a
varied interplay between government, regional and city governments and between
government, the community and special bodies set up to implement development. In
all three cases examined, important influences on the metropolitan strategies have
been higher level government and private sector bodies.
An interesting feature of the Singapore approach is its combination of a liberal
attitude in external relations and a strong interventionist approach in internal matters.
The city fully interacts with the global market but at the same time employs strict
control over development. The institutions and policies of the city have a ‘double
function in creating laissez faire conditions for private enterprises and financial
institutions, and regulating in order to protect business’ (Haila, 1997, p10). The
13
gradual release of public land for development within strict planning controls
provides stability in the real estate market and curbs rises in property prices. This is a
major attraction for inward investors. Gleeson (1998) has suggested that there seems
to be a paradox in the way that globalisation leads to a liberalised deregulatory
approach to planning at the broader level while positive planning is used as an
instrument for boosterism by cities. On the other hand this could be viewed not as a
paradox but a complementary approach in which the different levels of government
take on different roles. Nevertheless the combined effect of deregulation within the
national planning legislation, city plans that are geared to particular economic
interests, and development schemes beyond local community influence, is a severe
reduction in democratic control.
In the literature on globalisation there is a debate about the degree of inevitability in
the process. As already described, one argument is that the global economic forces
require cities to respond competitively with adaptive strategies that can attract the new
economic investments. This leads to a certain kind of strategy with particular kinds of
plans, policies and land allocations. The stance taken in the three cities during the
1990s has been to accept this argument. Alternatively it can be argued that
government does have the discretion to intervene more positively in this process and
pursue a wider range of aims. These could include a greater emphasis on
environmental and social objectives. There are indications that many cities are starting
to take a more diverse approach to economic development and acknowledge the
importance of such wider factors (for evidence from the United States see Clarke &
Gaile, 1997). It can be argued that the dedicated striving to win the competitive
economic game can create severe problems of environmental degradation and social
polarisation. In the longer term, environmental and social sustainability is important
for economic prosperity. This is an argument that can be used to lobby for more
comprehensive strategic plans. It also requires the involvement of a wider range of
local organisations and a positive attitude on the part of government. During the
1990s in the three cities investigated the pressure groups that had a dominant
influence on the governmental agenda were those arguing for the paramount
importance of short-term economic imperatives. Those pursuing social and
environmental aims were either weak or non-existent, although the Sydney Olympic
Games bid shows that opportunities did arise. The London case also shows that the
situation is not static or predetermined. The change in national government, although
still upholding the power of globalisation, has created a new institutional arrangement
in London with potential for a more open debate about the balance between the long
and short term, endogenous growth and inward investment and between economic,
environmental and social aims. Even in Singapore the acceptance of the importance of
the environment in attracting business provides an opportunity to argue for an
expansion in the scope of environmental policy.
14
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18
About the Author
Andy Thornley is Director of Regional and Urban Planning Studies at the LSE. His
research interest is in the interface between politics and urban planning within a
comparative framework and he has written many books on the subject, such as
Radical Planning Initiatives, Urban Planning under Thatcherism, The Crisis of
London, Urban Planning in Europe: International Competition, National Systems and
Planning Projects.
19
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In 1998 the London School of Economics established LSE London as a centre of
multi-disciplinary research excellence on urban and metropolitan regions, with a
special concentration on the economic and social issues of the London region. It
includes The Greater London Group, directed by Tony Travers.
LSE London’s discussion paper series includes the initial output from research
projects undertaken at the Centre as well as contributions to urban policy debate,
especially on London-related themes. This paper is the second in our series:
1. S. Glaister, R. Scanlon and T. Travers, The Way Out: An Alternative Approach to
the Future of the Underground, LSE London Discussion Paper No. 1, March
1999.
2. A. Thornley. Urban Planning and Competitive Advantage: London, Sydney and
Singapore. LSE:London Discussion Paper No.2, May 1999.
3. M. Kleinman. A More Normal Housing Market? The Housing Role of the London
Docklands Development Corporation 1981-1998, LSE London Discussion Paper
No. 3, May 1999.
4. T. Travers, C. Whitehead, A. Holmans and I. Gordon. Housing in London: Future
Perspectives, LSE London Discussion Paper No. 4, May 2000.
Copies of these papers are available on request; please contact 020-7955-6522 or
lselondon@lse.ac.uk.™ Papers cost £5. Checks should be made payable to the
London School of Economics.

Hi Mrs Lim,

While searching for articles for our Diigo reading list, we found quite a number of good articles, but they were all in PDF format, which Diigo cannot highlight or annotate. Thus, we have created this blog and copied and pasted the relevant sections of those articles as blog posts so that we can use Diigo to highlight and annotate them. We have included the link for each article at the bottom of every post.

Thank you! :)

Causes of Rural-Urban Migration in Developing Countries

The Process of Rural-Urban

Migration in Developing Countries

by Machel McCatty

http://www2.carleton.ca/economics/ccms/wp-content/ccms-files/he-mccatty-machel.pdf

2.0 Causes of Rural-Urban Migration

2.1 Issues Faced in Rural Areas

Rural populations wittingly or unwittingly, have become a part of an economic system, which sees goods being farmed for the primary goal of supplying the urban markets. In many countries, rural areas supply the manual labor needed in many industries. Rural laborers generally have little education and are relegated to low paying jobs on plantations or in mines. This has provided the incentive for many who have migrated to the cities in search of opportunities for advancement. Rural populations experience the highs and lows of a global economy, for if the price of their crop drops, then their sustainability is affected. During recessions in the economy they are often among the first to lose their livelihoods. The cultural values and norms of the rural poor undergo severe changes when they come into contact with missionaries and foreign entities. Changes in the educational system results in what is taught in schools being different from traditional customs. In addition, they are exposed to radio programs, films, and more recently, television series produced in distant cities, some of which are half way across the globe.

Some rural areas when exposed to urbanization experienced a decline in their living conditions due to a high level of exploitation. In other areas certain groups couldn't cope with the change and were gradually impoverished, being unable to sustain themselves. However, for most rural inhabitants, living conditions changed for the better. With medical care becoming available to a larger number of persons, improvements in health and longevity were dramatic, a contributory factor to higher rates of population growth. The increased population caused a strain on the available land, made worse if it is communal land and there aren’t adequate property rights in place.

Another important issue faced by rural areas is the influence of the outside developed world on their culture and way of life. As time goes by and with the influence of media and the outside world, they become to recognize their state of poverty. People's wants change over time, and when they are being told they need certain things they begin to think that way, and many of these things may not be tangible for large portions of the populations.

People from rural areas may rise to positions of affluence that were previously thought to belong to other levels of the society. Rural inhabitants’ perception of a better life changes when observing the new success of the people from their communities, rural dwellers can then analyze how these people have achieved such positions, and hope to emulate their success. Rural inhabitants know what it takes to achieve the lives of wealth they have been exposed to. They know that a high school education or a University degree can lead to a much higher expected income, thereby increasing their future income. With more money they can increase their consumption.

Many people have firsthand accounts of the success that can be had in urban areas. Some manage to improve their living conditions by staying in the areas where they are born, others move to other rural areas as farmers, traders or manual laborers. In general the prospects of employment in rural areas aren't positive, while the urban areas seem more rewarding.

2.2 Migration Forces

Rural-urban migration can be ignited by voluntary forces or involuntary forces. Involuntary forces or forced migration is migration that takes place when the migrant has no choice whether or not to move. Examples include political strife, family disagreements, fighting with neighbors and wars. Voluntary movement covers all migration done by choice. There are many factors that cause voluntary rural-urban migration, such as urban job opportunities; housing conditions; rural land tenure and inheritance patterns; rural social structure and cultural values; among other factors.

Rural inhabitants see and hear success stories about people that leave their community and move to cities, which also act as incentives for out-migration. Incentives for outmigration may be distorted, thereby creating excessive urbanization. Therefore, rather than targeting the migration itself, it is preferable to focus on the causative factors. Rural inhabitants, when presented with options of earning a living other than from farming, and which may not be as demanding or are financially more rewarding than farming, are very likely to accept the change. Depending on the country, farming offers only seasonal employment, not providing sufficient income to sustain the family households for an entire year. In many developing countries, farming is not looked upon with as much respect as, for example, a low level white collar job in the city. For many, farming is seen as strenuous, back breaking work. Consequently, policies that do not provide rural inhabitants with viable economic alternatives will likely lead to migration, creating problems of over urbanization in the cities. As long as there is an income differential, people will always move to where there is a greater income.

2.3 Poverty and Lack of Opportunities in Rural Areas

Poverty is still one of the most serious problems in the world. Many existing development policies take poverty alleviation into consideration, which has led to much economic advancement. It is estimated that over 1 billion people in the world still live in poverty. In the developing world, urban poverty is persistent, with the majority of the poor living in rural areas, hence it is in these areas that poverty alleviation policies should be concentrated.

The most valid assumptions when generalizing about the poor in rural areas, is that they are dispersed all over the poor regions. Among minority groups and indigenous peoples, women, (whether or not they are housewives), and children account for the larger percentage.Data collected from a number of surveys support these generalizations. According to (Todaro p.229), about two thirds of the poor in rural areasget by and sustain their lives with subsistence farming either as small farmers or working on land owned by other people. The other third are engaged in small scale activities. Poverty profiles for developing countries characterize the poor as being agricultural households with little arable land. In an agricultural based economy, where poor residents lack access to resources and there is a high level of inequality and an inequitable distribution of assets, non-farm labor becomes an important source of income for the poor. Especially in the cases of small farmers and non land owners who account for the majority of agricultural laborers, there is a heavy dependence on the rural labor markets for a huge portion of their incomes. How the rural labor market functions and the wages being offered, have an important impact on the state of poverty in all countries of the developing world.

2.4 Urban Job Opportunities

According to the Todaro model, rural migrants may not find employment immediately upon arrival in the city, and when they do, there is a high likelihood that their wages will be lower than they expected, resulting in lower than expected income. Educated and skilled immigrants may not have to wait as long as unskilled migrants to find jobs, since often their skills are in demand in the urban sector. However, migration of skilled personnel is a further reflection of inadequate policies as this further weakens the potential of rural areas to develop.

Many factors influence people's decisions to relocate to urban areas. As empirical research has shown, a disproportional number of these migrants are young adults, all of whom move to the cities for various, albeit mostly economic reasons. Empirical studies have documented that the majority of migrants to cities are young and have higher levels of education. They migrate because they have longer prospects of earnings and their probability of getting hired in the urban areas is higher.

Employment in urban areas can fall under two broad categories, firstly the formal sector and secondly the informal sector. The formal sector characterizes all activities that are recognized by the government as being legal in nature and providing tax revenue. Traditional occupations such as banking, office clerks, and plumbing would fall under this category. These jobs tend to pay more than jobs in the informal sector, and they garner a greater deal of respect. Many migrants who move to cities would like to obtain a job in the formal sector, but find it difficult to do so. They need to have a certain level of education to be able to compete with the urban residents for these jobs. Worker productivity and income tend to be higher in the formal sector than the informal sector. Workers in the formal sector enjoy job security, proper working conditions and

retirement pensions. The second category, the urban informal sector will be discussed in

more detail below.

2.5 Urban Informal Sector

The urban informal sector, unlike its formal counterpart, includes all activities that are unregulated and small scale in nature. Not much attention was given to this unregulated, unorganized and mostly illegal sector till the 1970s. Observations were made in several developing countries that certain labor market activities failed to show up in statistics relevant in the formal modern sector. The majority of the new workers in the urban labor force seemed to create their own employment and start their own businesses, or work for small-scale family run enterprises. The self-employed were engaged in a variety of activities such as hustling, street vending, knife sharpening, prostitution, selling drugs and selling fireworks. Other migrants found jobs as barbers, carpenters, mechanics, maids, personal servants and artisans. Others managed to become successful entrepreneurs with several employees making high incomes.

After some time, some graduated to the formal sector where they are subject to government labor regulations by becoming legally registered and licensed. According to Todaro, studies reveal that the share of the urban labor force engaged in informal sector activities is growing and now ranges from 30% to 70%, the average being around 50%.

The majority of the workers entering the informal sector are recent rural migrants who are unable to find jobs in the formal sector. Their main reason for taking part in the informal sector is to use what little skills they have to earn enough income to sustain their daily lives. As mentioned before, urban informal sector activities can be labor intensive, the labor coming from every member of the household that is able to work. They work 13very long hours, sometimes making it difficult for the children to attend school regularly.

The informal sector is connected to the formal sector, since it provides opportunities for people who are unable to find employment in the formal sector. While it serves as a conduit for excess labor to escape poverty and unemployment, depending on the developing country in question, wages in the informal sector are not much better than rural wages. Although living conditions and working conditions may not be better than in the rural areas, the informal sector wages have remained higher than the wages in the poorest rural areas. Migrants interested in getting employment in the formal sector, find the informal sector as a safety net to fall back on if things do not work out for them. The informal sector is therefore seen as a cause of rural-urban migration, because it lowers the risk of the individual being unemployed once they move to the cities.

2.6 Government Policies Creating Urban Bias

Another cause of rural-urban migration is urban bias. Government policies supporting disproportionate increases in wage rates and employment opportunities in the urban areas contribute to imbalances in the rural urban landscape. This topic will be analyzed in greater detail later in the paper.