Globalization and Globalization and Urban Urban

DevelopmentDevelopment

Dr. Adnan A. AlshihaDr. Adnan A. Alshiha

Its all about decision Its all about decision making making

What is a decision?What is a decision? ChoicesChoices

Why we need to make decisions?Why we need to make decisions? ScarcityScarcity

What is scarcity?What is scarcity? Limited resources facing unlimited wantsLimited resources facing unlimited wants

Why we need to be concern with Why we need to be concern with globalization?globalization?

ExternalityExternality

DefinitionsDefinitionsGlobalization: (Globalization: (Externality)Externality) People around the globe are more People around the globe are more

connected to each other than ever connected to each other than ever before. before.

Information and money flow more Information and money flow more quickly than ever.quickly than ever.

Goods and services produced in one Goods and services produced in one part of the world are increasingly part of the world are increasingly available in all parts of the world. available in all parts of the world.

International travel is more frequent.International travel is more frequent. International communication is International communication is

commonplace. commonplace.

Definitions contndDefinitions contnd……

Urban: At minimum imply a dense Urban: At minimum imply a dense concentration (agglomeration ) of concentration (agglomeration ) of people and activities.people and activities.

Why?Why?

Urbanization: Shifting population Urbanization: Shifting population balance between urban and rural balance between urban and rural areas areas

Definitions contndDefinitions contnd……

Development: discovering Development: discovering potentialspotentials

Economics: utilization of Economics: utilization of resourcesresources

Politics: Public choicesPolitics: Public choices

Context for Urban Context for Urban DevelopmentDevelopment

GlobalizationGlobalization No No ‘‘one - size one - size –– fit all fit all’’ definition definition Fusion of many complexFusion of many complex Time / Space compression in contrast Time / Space compression in contrast

with with ‘‘LocalitiesLocalities’’

Can be viewed three ways:Can be viewed three ways: EconomicEconomic PoliticalPolitical Cultural Cultural

Context for Urban Context for Urban Development ContdDevelopment Contd……

Characteristic of globalizationCharacteristic of globalization Social relation becoming more Social relation becoming more

intensifiedintensified Redefinition of global Redefinition of global –– local local

relationshiprelationship ““EconomicEconomic”” plays an important role plays an important role Changing roles for nation- stateChanging roles for nation- state Regional Disparities emphasizesRegional Disparities emphasizes

Globalization modifies cities but , cities Globalization modifies cities but , cities also modify and embed globalization also modify and embed globalization within local contextwithin local context

‘‘TriggersTriggers’’ Factors behind Factors behind GlobalizationGlobalization

‘‘TriggerTrigger’’ factors underlie factors underlie globalization and thus, urban globalization and thus, urban changechange

‘‘TriggerTrigger’’ factors are: factors are: EconomyEconomy

– Most importantMost important

New role for citiesNew role for cities

‘‘TriggerTrigger’’ Factors contd Factors contd……

TechnologyTechnology– Emergence of telecommunicationsEmergence of telecommunications– New international division of laborNew international division of labor

DemographyDemography– Direct influence on urban developmentDirect influence on urban development– Movement of people shapes size, Movement of people shapes size,

configuration, and structure of citiesconfiguration, and structure of cities– Synonymous relationship between urban Synonymous relationship between urban

dwelling and quality of lifedwelling and quality of life

‘‘TriggerTrigger’’ Factors contd Factors contd……

PoliticsPolitics– Cities reflect the political ideology Cities reflect the political ideology

of the society.of the society.

Social Social – Social attitude can influence Social attitude can influence

character of town and cities.character of town and cities.– Can influence migration patterns, Can influence migration patterns,

internal structure of city.internal structure of city.

‘‘TriggerTrigger’’ Factors contd Factors contd……

CultureCulture– Increase in materialism Increase in materialism

EnvironmentEnvironment– Exist at many geographical scalesExist at many geographical scales– Threat of global environmental Threat of global environmental

change influencing urban change influencing urban infrastructure projectinfrastructure project

– ‘‘LocalLocal’’ important too eg. local important too eg. local legislative issueslegislative issues

Realities of the 21st Realities of the 21st Century Century Donovan D. RypkemaDonovan D. Rypkema

FirstFirst,, the 21st century will be a globalized economy. the 21st century will be a globalized economy.

Second,Second, the most significant impacts of the global the most significant impacts of the global economy will be local.economy will be local.

Third,Third, there will be a rapidly growing demand for there will be a rapidly growing demand for

products worldwide. But the manufacture of those products worldwide. But the manufacture of those products will require fewer and fewer people. products will require fewer and fewer people.

Fourth,Fourth, the areas of the economy that will grow, the areas of the economy that will grow, both in output and in employment are these: services; both in output and in employment are these: services; ideas; one-of-a-kind products, individually produced; ideas; one-of-a-kind products, individually produced; culture; entertainment; communications; travel; culture; entertainment; communications; travel; education. education.

Five principles for successFive principles for success

The cities and their citizens who The cities and their citizens who will be successful in the 21st will be successful in the 21st centurycentury’’s economic development s economic development will be those that recognize the will be those that recognize the four realities discussed above, four realities discussed above, and who respond by embracing and who respond by embracing five principles. five principles.

The first principle is globalization itselfThe first principle is globalization itself..

To adopt globalization as a To adopt globalization as a principle allows a city the principle allows a city the opportunity to identify which of opportunity to identify which of its own characteristics can be its own characteristics can be competitive in the global competitive in the global marketplace and to establish marketplace and to establish measures that reduce the measures that reduce the adverse impacts of a globalized adverse impacts of a globalized economy. economy.

The second principle is The second principle is localizationlocalization..

The definition of what The definition of what ““economic developmenteconomic development”” means means needs to be localized.needs to be localized.

It must be specific and measurable. It must be specific and measurable.

Many local economic development yardsticks in the Many local economic development yardsticks in the 21st century will be qualitative rather than 21st century will be qualitative rather than quantitative. quantitative.

Localization will always necessitate identifying assets Localization will always necessitate identifying assets (human, natural, physical, locational, functional, (human, natural, physical, locational, functional, cultural) that can be utilized to respond to cultural) that can be utilized to respond to globalization.globalization.

Those assets must first be identified, then protected, Those assets must first be identified, then protected,

and then enhanced. and then enhanced.

Diversity is the third of these Diversity is the third of these principlesprinciples . .

The concept of diversity has three different The concept of diversity has three different facets in relation to economic development facets in relation to economic development principles:principles:

As populations are more mobile and more As populations are more mobile and more diverse there will need to be an accommodation diverse there will need to be an accommodation of human diversity in economic development.of human diversity in economic development.

Cities must have a diverse local economy in Cities must have a diverse local economy in order to provide protection from the volatile order to provide protection from the volatile patterns of demand in the marketplace.patterns of demand in the marketplace.

With economic globalization as a given, With economic globalization as a given, Successful economic development will specialize Successful economic development will specialize and customize to meet the needs of diverse and customize to meet the needs of diverse markets rather than standardize and markets rather than standardize and homogenize.homogenize.

The fourth principle of economic The fourth principle of economic development is sustainabilitydevelopment is sustainability . .

Sustainability has for some time been Sustainability has for some time been recognized by resource-based industries recognized by resource-based industries because they find it necessary to pace because they find it necessary to pace extraction or renew resources to keep the extraction or renew resources to keep the economy sustainable over the long term. economy sustainable over the long term.

A broadened principle of sustainability A broadened principle of sustainability recognizes the importance of the functional recognizes the importance of the functional sustainability of :sustainability of :– public infrastructure, public infrastructure, – the fiscal sustainability of a local government, the fiscal sustainability of a local government, – the physical sustainability of the built the physical sustainability of the built

environment, environment, – and the cultural sustainability of local traditions, and the cultural sustainability of local traditions,

customs, and skills.customs, and skills.

The final principle is responsibilityThe final principle is responsibility

The vast majority of efforts of The vast majority of efforts of enhancing a cityenhancing a city’’s economy will take s economy will take place at the local level. place at the local level.

This, then, requires that each city This, then, requires that each city takes a large measure of responsibility takes a large measure of responsibility for its own economic future. for its own economic future.

Certainly local government has a part Certainly local government has a part to play in that process, but so does to play in that process, but so does the private sector, non-governmental the private sector, non-governmental organizations (NGOs), and individual organizations (NGOs), and individual citizens. citizens.

Each should recognize the Each should recognize the responsibility at the local level to responsibility at the local level to define and pursue citywide and define and pursue citywide and metropolitan economic development metropolitan economic development strategies.strategies.

Five Senses of Five Senses of Competitive CitiesCompetitive Cities

In the past the economic fate of a city was In the past the economic fate of a city was largely driven by locational and resource largely driven by locational and resource factors. factors. – Is it near a port? Is it near a port? – Is there timber to be cut? Is there timber to be cut? – Is transportation available by waterway? Is transportation available by waterway? – Is there metal that can be mined? Is there metal that can be mined? – Certainly these and similar factors will continue to play a major Certainly these and similar factors will continue to play a major

role in the economic future for many locations.role in the economic future for many locations.

in the 21st century there will be a shift from in the 21st century there will be a shift from location economics to place economics.location economics to place economics. – The most important variables will be qualitative and place-The most important variables will be qualitative and place-

based rather than quantitative and location-based. These are based rather than quantitative and location-based. These are referred to as the Five Senses of Competitive Cities and will, in referred to as the Five Senses of Competitive Cities and will, in the intermediate and long term, have considerable impact on the intermediate and long term, have considerable impact on the economic health of cities.the economic health of cities.

The first sense is The first sense is the Sense of Placethe Sense of Place..

Both the built and natural Both the built and natural environment will need to be used to environment will need to be used to express the particularity of express the particularity of thisthis place. place.

There should be a feeling that this city There should be a feeling that this city

is neither is neither ““anyplaceanyplace”” nor nor ““no placeno place”” but but ““someplace,someplace,”” unduplicated unduplicated anywhere.anywhere.

Four hundred years ago the Italian Four hundred years ago the Italian

philosopher Giordano Bruno philosopher Giordano Bruno recognized that recognized that ““Where there is no Where there is no differentiation, there is no distinction differentiation, there is no distinction of qualityof quality..””

The second sense is The second sense is the Sense of Identitythe Sense of Identity..  

In economics it is the differentiated In economics it is the differentiated product that commands a monetary product that commands a monetary premium. premium.

A city that in the long term wants to A city that in the long term wants to be a be a ““valuable place,valuable place,”” however that is however that is defined, needs to identify the defined, needs to identify the attributes that add to its attributes that add to its differentiation from anywhere else. differentiation from anywhere else.

The cultural as well as the physical The cultural as well as the physical attributes of a city will be critical to attributes of a city will be critical to that differentiation. that differentiation.   

The third sense is The third sense is the Sense of Evolutionthe Sense of Evolution..

Quality, living cities will neither Quality, living cities will neither be frozen in time as museum be frozen in time as museum relics nor look like they were relics nor look like they were built yesterday.built yesterday.

The physical fabric of a city The physical fabric of a city should reflect its functional, should reflect its functional, cultural, aesthetic, and historical cultural, aesthetic, and historical evolution. evolution.

The fourth sense is The fourth sense is the Sense of Ownershipthe Sense of Ownership..

If there must be responsibility exercised at the local If there must be responsibility exercised at the local level to create and benefit from economic health, level to create and benefit from economic health, then there has to be a sense of ownership of the city then there has to be a sense of ownership of the city by each of the sectors. by each of the sectors.

This does not mean ownership in a legal or property This does not mean ownership in a legal or property sense, but ownership more broadly, or citizenship: a sense, but ownership more broadly, or citizenship: a feeling of an individual stake arising from that feeling of an individual stake arising from that particular place and fellow citizens. particular place and fellow citizens.

A former mayor, Daniel Kemmis A former mayor, Daniel Kemmis —— a US politician a US politician who is also a scholar who is also a scholar —— wrote in wrote in The Good City and The Good City and the Good Lifethe Good Life, , ““A good city has always been one that A good city has always been one that teaches citizenship, in the deepest sense of the teaches citizenship, in the deepest sense of the word, and such cities are not only teachers, but are word, and such cities are not only teachers, but are themselves always learning how to be better citiesthemselves always learning how to be better cities."."

Finally there is Finally there is the Sense of Communitythe Sense of Community..

A sense of ownership acknowledges an A sense of ownership acknowledges an individual benefit from, an individual stake individual benefit from, an individual stake in, and an individual responsibility for onein, and an individual responsibility for one’’s s place. place.

A sense of community acknowledges the A sense of community acknowledges the obligations to and interconnectedness with obligations to and interconnectedness with the other residents of that place. the other residents of that place.

Robert Bellah concluded in his book, Robert Bellah concluded in his book, Habits Habits of the Heartof the Heart, , ““Communities, in the sense in Communities, in the sense in which we are using the term, have a history which we are using the term, have a history —— in an important sense they are constituted in an important sense they are constituted by their past by their past —— and for this reason we can and for this reason we can speak of a real community as a 'community speak of a real community as a 'community of memory', one that does not forget its of memory', one that does not forget its pastpast..””

Your ThoughtsYour Thoughts……?? How do you see Saudi cities cooping How do you see Saudi cities cooping

with globalization?with globalization?

Is our cities administrative set up Is our cities administrative set up capable of facing the challenges capable of facing the challenges endured by globalization?endured by globalization?

How do you assess the current urban How do you assess the current urban development efforts in Saudi cities?development efforts in Saudi cities?

Any commentsAny comments……? ?