Dsicussa about the Big Business And Urban Congestion In Taiwan.
Urban economists can gauge why cities develop, how they develop and why some cities have grown to large sizes while others have remained small by examining the development of firms and households in and around the city. Thus, they can help trace the causes of economic growth and decline and the role of local government in these matters. (Sullivan, 2003, p. 41)
Market forces often include factors like economic growth , world development; land use, urban transportation; housing, the development of the sprawl. Urban planning largely consists of developing public policies surrounding these urban problems. Understanding urban development may be key to solving the problems of urban crime, land and air degradation, pollution, etc. It helps in the local government develop policies regarding taxation, investment etc. The paper examines the growth of Puchong through various urban theories. Additionally, the same theories are used to understand the direction that the future development plans for Puchong should, ideally, take.
Puchong began as a small settlement, more rural in nature (Yeen, 2015). However, during the British times, Puchong seems to have developed into a bigger settlement (Ramoo, 2008).
The Central Place Theory suggests that every urban area has a central place is a centre for provision of goods and services. The Central Place of Puchong, initially, seems to have been two roads. Early accounts of Puchong describe the city of Puchong as two streets with small rural settlements around it. These settlement were mostly of people employed in rubber plantations and oil palm cultivation. The centre streets were mostly populated by Chinese Traders, In Central Place Theory, this would have been the Central Place in the Central Hexagon(Yeen, 2015) (Ramoo, 2008).
According to the central Place Theory, there is once Central place that is the centre of gravity for sellers and buyers of goods and services. However, the growth around the Central Place is limited due to availability of technology and the decreasing mobility of people as the urban sprawl grows. If the city grows beyond the optimum size, then new urban settlements grow around the Central Hexagon.(Balchin, Kieve, & Bull, 1988) (Otten & Bellafiore, 2017)The two streets described seem to have been the Central Place of Puchong.
For several decades, the urban base of Puchong had not been well developed. This may be explained by the Rank Size Rule theory presented by Zipf. The theory explains that cities can be ranked by the complexity of trading in their market and that more complex trading centres would grow faster. (Otten & Bellafiore, The Rank Size Rule According to Zipf, 2017) Hence, the cities that are relatively more complex would see more development. The proximity of Kuala Lumpur may have led to the growth of Puchomg being stunted in the past. However, this has changed in 1985. The development of an Urban base has led to a rapid development of the city. Currently, Puchong is experiencing the development of more township surrounding the main city. (Jafri, 2015)This development is in line with the Central Place Theory which also suggests that several hexagonal settlements develop around the centre of gravity or the central hexagon but are independent settlements on their own.
Urban Base theory describes how the growth of an urban area is related to its ability to specialize more. If an urban area specializes in provision of fewer goods and services, then it risks self sufficiency (Goodall, 2013). The fewer number of goods and services, an urban area chooses to specialize in , the more it may have to import for its sustenance. In order to pay for the imports, the city must export more. If the exports do not match the imports, the area stands to lose it’s economic power. One of the causes of development of Puchong from an rural area to urban area may have been the increased specialization. Mining became a major activity in Puchong (The Star Online, 2015)
The export related production of goods and services , according to urban base theory , is largely, a “basic activity” while activities related to the production of output for consumption and distribution within the area itself, are “non basic activities.” (Wyly, 20112)
Upon achievement of economic stabilization, the ratio of output for “basic activity” and non-basic activity must be tied to the population. In essence, growth in basic activities has a multiplier effect that helps increase the income and the population of the urban area. This may possibly explain the rapid rise in development in Puchong since 1985. However, this also implies that if the flow of people and investment to Puchong does not keep up with it’s increase in the basic activities, there may be a destabilization effect for the urban area.
As far as Puchong in concerned, proximity to Kuala Lumpur and other urban areas will help Puchong maintain a strong growth, according to location theory (Lee, 2018) (Shanker, 2018)Urban Agglomeration provide firms with better access to infrastructure and a host of shared services that cannot be provided in rural communities. It is easier to meet these infrastructure needs because of the scale of activity. Hence, as the scaleo f production becomes bigger, production becomes cheaper. Additionally, cities provide better access to other agglomeration due to better road activities and the availability of tertiary services like telecommunications, marketing etc. Skilled workers tend to be available in greater number in urban areas due to the availability of human skill. Economies of scale may bring down the costs of living a higher number of population brings down the per capita expenditure on the city. However, after a certain scale, diseconomies may start to kick in. (Obeng-Odoom, 2016)
If the employment in basic activities increases, then the employment and investment in the non –basic activity must increase in order to support the basic activities.(Santamouris, 2001) This may lead to greater need for investment in critical infrastructure and social services since the increase in population is expected to be higher than in history.
The economic base of the city can be widened by increasing the economic base. For example, Puchong is shaping up to be a centre for banking, tourism and other tertiary services due to the rapid growth.(The Malay Mail Online, 2018) Banking industry largely provides support to the local economy while tourism can be considered as a basic activity. However, both can help strengthen the local economy by providing employment to workers with a different set of skills and must support each other.
The construction activity in the city has grown. The increased construction activity is also, an example of an increase in the “non-basic” activities. In order to balance out the non basic activities, basic activities such as mining, trade etc, the non-basic activities such as development of commercial spaces, hospitals, roads, housing , retail shops etc. must keep pace.
According to flow of money theory, the pattern of growth of cities determines the flow of money. Ideally, areas that close to the centre of the industry or centers that have a majority of basic activities are the centers for incoming wealth. Money flows outwards towards places where non- basic activities are greater. The flow of money can also be interpreted in another way. Usually, Central Place of a city is the centre of activity (Goodall, 2013). Hence, land prices and demand for goods and services in those areas is , generally, greater making An assessment of the flow of money helps in the process of planning. However, as assets start to become digital, the flow of money starts to be less reliable. Additionally, given the rise of non-traditional industries like Information Technology etc .and new consumer trends like online shopping, the older commercial areas located mostly in the Central Business District. This leads to degeneration of these areas. (Batty, 2014)
The City must plan for an increase in population and changing patterns of flow of wealth , in order to keep the momentum going. Infrastructure investment are key to keeping up the momentum of economic growth. (Turok & McGranahan, 2013 )
As mentioned earlier, cities need to improve their specialization(Turok & McGranahan, 2013 ) and seek to widen their economic base by specialization in a greater number of activities. In order to do so, entrepreneurial environment. Several cities across the world offer incentives to industries to set up shop within the city. Puchong can offer similar plans for development of businesses , to create new, spatially decentralized central places. However, the policies must be developed carefully with due consideration to the strengths of the city.(Rogers, 2013)
Any city needs a built environment such as buildings, roads, parks etc. This built environment must grow as the city grows. Increasing sprawl of an urban area affects, not only the quality of life of the citizens but also the economic growth. (Santamouris, 2001) According to Hortas-Rico & Solé-Ollé, (2010) if the new urban agglomerations are densely populated , then the investment in infrastructure can be justified. If the sprawl of the city grows with sparsely populated agglomerations, then the growth of the city may be affected.(Hortas-Rico & Solé-Ollé, 2010)
The presence of a larger number of people with a large number of people employed in central areas leads to myriad problems such as those of housing shortages, water shortages, energy shortages, environmental degradation , traffic congestions.(Santamouris, 2001)
An additional problem that is being faced in recent times is those of climate change. For example, the chances of incidents like flash floods become higher. Given that Flash Floods are already a problem, the city development plans must be able to combat As the population density is higher and there are more built structures, the risks of damages can be higher. (Santamouris, 2001)
The Central Place Theory and the Rank Size Rule theory, the Central Business District of Puchong will remain the centre of gravity but this will change as the complexity of industry in the newer agglomerations of the city increase. Decentralization of industries and city resources is an important solution to the problems associated with urban sprawl(H.Amsden, 1991) . Policies such as taxing second houses owned by the population, introducing tolls to reduce the number of vehicles, etc. are some policies that could be introduced in the city plans.(JavierBilbao-Ubillos, 2008)
Additionally, if the growth of Central Business District begins to implode, then the city will have to find a way to re-purpose the older built environment. At the same time, the city must plan for investment in built environment of newer areas as the sprawl of the Puchong increases. This includes planning of new roads, parking lots, commercial spaces etc.
Conclusion
Puchong is a city that is growing as a trading centre. It’s proximity to other urban areas increases the odds that the city will continue to grow. Given that it is an important residential area, the need for infrastructure and social services will increase at an unprecedented rate. There must be new plans to ensure investment in infrastructure to accommodate the growing sprawl of the city. The city should be to increase its economic base and specialize in more areas. This will not only help keep the economic growth high but also help in spatial decentralization of the growth. The city can offer incentives to large companies to set up shop in the city. The city must also focus on the long term economic development by ensuring that the quality of life is better and that there is investment in higher education to improve the human capital available within the city.
Batty, M. (2014). Money and Cities. Environment and Planning B: Planning and Design Vol 41, 571-572.
Goodall, B. (2013). The Economics of Urban Areas. Reading, UK: Pergamon PRess management
H.Amsden, A. (1991). Big business and urban congestion in Taiwan: The origins of small enterprise and regionally decentralized management (respectively). World Development, 1121-1135.
Hortas-Rico, M., & Solé-Ollé, A. (2010). Does Urban Sprawl Increase the Costs of Providing Local Public Services? Evidence from Spanish Municipalities. Urban Studies Vol. 47, 1513 – 1540.
Jafri, A. (2015, January 1). history of puchong part 2. Retrieved March 29, 2018, from You Tube: https://www.youtube.com/watch?v=wi0FOE2cc6E
JavierBilbao-Ubillos. (2008). The costs of urban congestion: Estimation of welfare losses arising from congestion on cross-town link management . Transportation Research Part A: Policy and Practice, 1098-1108.
Lee, R. (2018, March 08). Cover Story: Evolution of a well-planned township. Retrieved from The Edge Malaysia: https://www.theedgemarkets.com/article/cover-story-evolution-wellplanned-township
Obeng-Odoom, F. (2016). Reconstructing Urban Economics: Towards a Political Economy of the Built Environment. London: Zed Books.
Otten, D. G., & Bellafiore, D. D. (2017). Real-World Evidence that Supports Central Place Theory. Retrieved March 29, 2018, from College of Earth and Mineral Sciences at The Pennsylvania State University: https://www.e-education.psu.edu/geog597i_02/node/687
Otten, D. G., & Bellafiore, D. D. (2017). The Rank Size Rule According to Zipf. Retrieved March 29, 2018, from College of Earth and Mineral Sciences at The Pennsylvania State University : https://www.e-education.psu.edu/geog597i_02/node/688
Ramoo, R. (2008, february 19). Know Your History of Puchong Part 3. Retrieved March 29, 2018, from taman Tasik Prima: https://ttppuchong.proboards.com/thread/71
Rogers, C. L. (2013, April). HOW COMPETITION TO ATTRACT BUSINESSES LEADS TO ECONOMIC LOSSES FOR CITIES AND STATES. Retrieved March 29, 2018, from Scholars Strategy Network: https://www.scholarsstrategynetwork.org/brief/how-competition-attract-businesses-leads-economic-losses-cities-and-states
Santamouris, M. (2001). Energy and Climate in the Urban Built Environment. New York: Taylor & Francis Group.
Shanker, S. (2018, March 22). Lock, Stock & Barrel: The rise of second- and third-tier locations. Retrieved from New Straits Times: https://www.nst.com.my/property/2018/03/347987/lock-stock-barrel-rise-second-and-third-tier-locations
Sullivan, A. O. (2003). Urban economics. Boston, MA: McGraw-Hill/Irwin.
The Malay Mail Online. (2018, March 23). Hilton to introduce more luxury brands in Malaysia. Retrieved March 29, 2018, from The Malay Mail Online: https://www.themalaymailonline.com/travel/article/hilton-to-introduce-more-luxury-brands-in-management
The Star Online. (2015, December 8). Rapid development began in 1980s. Retrieved March 29, 2018, from The Star Online: https://www.thestar.com.my/metro/focus/2015/12/08/rapid-development-began-in-1980s-xxxx/
Turok, I., & McGranahan, G. (2013 ). Urbanization and economic growth: the arguments and evidence for Africa and Asia. Environment and Urbanization, 465 – 482.
Wyly, E. (20112, September 26). Theories of Urban System Development . Retrieved from Introduction to Urban Geography: https://ibis.geog.ubc.ca/~ewyly/g350/systems.pdf
Yeen, O. I. (2015, December 8). Puchong: Former mining town’s growing pains. Retrieved March 29, 2018, from The Star Online: https://www.thestar.com.my/metro/focus/2015/12/08/former-mining-towns-growing-pains-from-floods-to-congestion-progress-in-puchong-has-not-come-without/#LwxfOoT3X7BlfO6M.99
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download