This introductory chapter begins by considering the infrastructure challenge posed by what former US Treasury Secretary Larry Summers calls the ‘Age of Secular Stagnation’ and International Monetary Fund managing director Christine Lagarde terms the ‘new mediocre of growth’. Both advocate increased infrastructure spending as the solution, but there are considerable differences between infrastructure policies in three of the largest economies. After decades of neglect, the United States and even Germany are saddled with once advanced, but increasingly outmoded infrastructure assets, while China keeps on building and has become an exemplar of modern urban transit, with ports, expressways, railways, subways, airports, and by far the world’s largest high-speed rail network. Nevertheless, a 2016 Oxford study challenges the efficacy of China’s infrastructure-led growth strategy. Upon examination, however, their study has serious defects and, contrary to their arguments, China’s infrastructure megaprojects appear less wasteful than those authors claim, and they have laid the foundations for Chinese growth, supported by a later case study.
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Evaluating Public–Private Partnerships and Other Procurement Options
Darrin Grimsey and Mervyn K. Lewis
Towards an Understanding of the Economies of Neighbourhoods and Communities
Reinout Kleinhans, Darja Reuschke, Maarten van Ham, Colin Mason and Stephen Syrett
Until recently, entrepreneurship and neighbourhood studies were academic disciplines which rarely interacted with each other. However, recent macroeconomic and societal trends have pointed the spotlight on the nexus between entrepreneurship, neighbourhoods and communities, highlighting not only the importance of ‘the local’ in entrepreneurship, but also the huge gaps in our knowledge base regarding this tripartite relationship. In much of the literature, a distinction is drawn between entrepreneurship taking place in neighbourhoods or communities, and entrepreneurship taking place for neighbourhoods and communities. This chapter starts out from the international call for interdisciplinary approaches to entrepreneurship and firm formation to overcome entrepreneurship research and neighbourhood and community studies’ mutual neglect for one another’s fields of research. This introduction to a volume of chapters aims to shed light on the multiple relationships between entrepreneurship, neighbourhoods and communities across several countries. It asks how neighbourhoods and communities can shape entrepreneurship, a question for which the relevance stems from radical changes of (inter)national and regional labour markets and growing evidence that neighbourhood contexts impact on entrepreneurship and self-employment in various ways. It also asks the ‘reverse’ question: how does entrepreneurship influence neighbourhoods and communities? In doing so, the chapter (and many other chapters in the book) treat ‘community’ as a local, spatially embedded concept. Particular attention is devoted to community-based forms of enterprise and their potential for contemporary bottom-up neighbourhood regeneration.
Åke E. Andersson and David Emanuel Andersson
The games of markets including entrepreneur-driven economic development have always taken place on an arena of the combined material and non-material infrastructure. The infrastructure thus constitutes the arena; it is public capital that facilitates and constrains the rapid “games” of buying and selling that economic agents play. Agents perceive the arena as stable because its evolution is so much slower than that of markets for goods and services. Synergetic theory is well equipped to handle such multiple timescales. Its application to economic phenomena enables us to show that competitive equilibrium theory requires prior specification of the infrastructural arena, which consists of public knowledge, space-bridging networks and institutions. Synergetic theory can also help us avoid the pitfalls of conventional macroeconomic theory. In this chapter, we demonstrate how macroeconomic equilibrium depends on the infrastructure. We claim that all goods are durable and are thus instances of capital. This means that historical trajectories, current outcomes, uncertain expectations and changes in spatial accessibility all influence the growth and fluctuations in the value of capital goods. Dynamic non-linear interactions between scientists, inventors and entrepreneurs affect investments. New technological or design ideas spread most easily among spatially proximate firms within communication and transport networks. Such network effects shape processes of spatial clustering, agglomeration and urbanization. Based on causal and various econometric considerations, it has been common for economists to resort to difference equation in their modeling strategies. But if we include dynamic interactions within a system of difference equations—so as to accommodate realistic causal assumptions—it will often result in complex models with chaotic outcomes. However, there are ways out of chaos in economic modeling. The first is to focus on continuous dynamic synergetic models, which implies a careful separation of variables and dynamic processes according to their relevant timescales as well as the collectiveness of their impacts.
John Stanley, Janet Stanley and Roslynne Hansen
What makes for a great city in the 21st century? If one aspires to a vision like that of Vancouver, as we do, what does it actually mean and how can a city best realise its vision? Questions such as these are the reason for this book, focusing on cities in highly developed western economies and working from a perspective that sees the idea of integrated planning as a core starting point. This chapter outlines some of the important trends we have observed in urban land use transport planning in recent years, such as: a growing sustainability focus; more attention being paid to structural economic changes and how they affect the spatial structure of cities; the growing importance of neighbourhood, adding a local lens to strategic planning; the interest in compact settlement patterns and in how knowledge of built form and travel interactions can be used to promote this settlement pattern; putting transport in its place, as a servant of land use, rather than letting it determine wider urban outcomes ; and, an increased interest in governance and funding. Our interest is in identifying how the growing knowledge base in such areas can be brought together more effectively, to deliver better urban outcomes. This underlines the vital role we see for a broader, more integrated approach to strategic urban land use transport planning. Subsequent chapters explore improved practice in some detail, with extensive use of case study material.