The Forum for Partners in Iran's Marketplace
 
 
 
 
 
 
 
 
 
 
     

March 2003 / No. 22


Cover Story: Urbanization in the Third Millennium

Iran Coming to Deal with Megacities

"Megacities are constellations on earth constructed of separate spatial parts and separate social and performance spaces."

Megacities: In 1992 there were at least 13 cities with more than 10 million inhabitants. But size is not the identifying feature of a megacity. Megacities are real knots of the global economy and the most powerful states. They are vast performances in global management, production, centers of political power, and control of the media, and symbolic capability for creation and extension of dominant messages in the realm of megacity. According to the 1991 classification of the United Nations, Tokyo, Sao Polo, New York, Mexico City, Shanghai, Bombay, Los Angeles, Buenos Aires, Seoul, Beijing, Rio de Janeiro, Calcutta, and Osaka are megacities that are different from one another. Jakarta, Moscow, Cairo, New Delhi, London, Paris, Lagos, Dhaka, Karachi and Tian Chin must be added to the above group. Not all the above cities are dominant centers of the world economy. For example, Lagos and Dhaka do not yet have any share in all the trends and performances affecting the lives of 100 million people involved in the global economy. Megacities should be defined in terms of their power of attraction in extensive regions of the world. Megacities merge in global economy, connect information networks with each other and concentrate global power in themselves. Moreover megacities accommodate a large part of the world's population who are trying to survive. What makes megacities a new form of city is their establishment around the global communication networks. Consequently they act as principal knots whereas ultimately, they are not related and joined to each other from a social or aerial point of view.

Megacities are spatial shapes that are specified by performance of relations in extensive areas, but at the same time they are disconnected from the point of view of land application. Their social and performance heritage is vague and is organized in separate and distinct territorial entities whose social customs are not specified by the whole system. Megacities are constellations on earth constructed of separate spatial parts and separate social and performance spaces.

Early in the 21st century the Tokyo-Yokohama-Nagoya corridor which are economic performance units, will join the Kyoto-Osaka-Kobe constellation and will be linked to each other easily by fast means of communications like railways, and will thus create the biggest metropolitan and macro region, not only from a population point of view but also from the concentration of technological and economic capabilities.

With social, urban and environmental problems together with excessive urban concentration megacities are developing and will continue to develop both in size and attraction. They will try to establish high-level performances, settlement of wealthy and educated social groups. The reasons are as follows:

  1. Megacities are economic, technological and commercial centers in their own countries and in the world system. They are in fact motors of the development trend.

  2. Megacities are centers of cultural renovation, creation of models and scientific research, including decisive strategic trends in the information era.

  3. Megacities are centers of political power even in cases where the government center is elsewhere, because they offer ideological and economic forces.

  4. Megacities are communication points in the global communications network. For example internet, in spite of its electronic comprehensibility and inflexible architecture, cannot bypass megacities and their systems, because they operate on the basis of telecommunications systems which are built around big mother cities, and also because the internet, on account of its power needs special information systems and social groups resident in megacities.

Frontier-less Cities: Globalization of economy has encouraged economic cooperation of sub regions in several areas. Successful growth triangles, Asian development models of economic regions, consist of several countries the capital for each of which is an important metropolitan area. These regions may be called economies without frontiers, in which international division of labor has extended the advantages to urban centers. The cities that are affected by economies without frontiers cannot be regarded as distinct economies any longer but are really parts of more extensive metropolitan areas.

"Large and extensive metropolitan areas may expand up to a maximum 100 km from the city center and may be characterized by high-level economic diversification and reciprocal relations."

Large and extensive metropolitan areas may expand up to a maximum 100 kilometers from the city center and may be characterized by high-level economic diversification and reciprocal relations. It may affect a high percentage of employees in non-agricultural sectors and the deep influence of world market in rural areas. Large metropolitan areas denote high requirement for development and are conceived as economic zones rather than urban or rural areas.

An example of economies without frontiers has developed between Singapore, Malaysia and Indonesia; it is called Sijori. This area bypasses the city-state of Singapore, and growth of the Singapore nucleus is directly due to its economic maturity. The flow of population and goods from cities to outskirts are accompanied by an increase in the level of external capital.

Another example of extraterritorial cooperation development, comprising capital, technological and management date is related to consolidation of Hong Kong, Taiwan and southern provinces of China (i.e. Guangdong & Fujian). Hong Kong has taken shape as the center of Zhujiang delta and as its financial and command center.

Sanatorium Cities: In the face of inattention to environmental problems in some industrial towns in the regional system, globalization has led to the policy of sustainable ecological development.

This trend is discernible in Sydney and Vancouver. These two cities have three common characteristics, extra industrial economy is merged with regional economy in Asia and Pacific. These two cities have natural environment with high concentration of rest facilities and enjoy high per capita level of social welfare together with political acceptance of environmental quality improvement.

The globalization forces effective in Vancouver and Sydney are financial capital flow, together with their extra industrial economic structure and trade of goods (in case of Vancouver) and immigration flow. Sydney is the capital of New South Wales and the most important city in Australia. Among the cities of Australia, Sydney has the highest regional command share of extraterritorial cooperation in Regions of Asia and the Pacific. It hosts three quarters of national and international banks in Australia. It is the most suitable regional command site of extra national companies in Asia and the Pacific. 39% of the region's top 20 central companies in the four sectors of accountancy, publicity, management, consultancy and international institutes are located in Sydney. This performance concentration is related both to extra industrial economy and also to its role as the center for command and control.

Commerce in Vancouver is like information and financial flow in Sydney. Among commercial ties, the relations between Vancouver and Hong Kong have attracted the most attention. The region of Vancouver has established most important ties with Japan. Due to their need for industrial and agricultural resources on a large scale, 11 examples of the biggest commercial companies of Japan called Sogoshosha have opened subsidiary branches in Canada. Five out of 11 companies have chosen Vancouver as the local command center, because 60% of the trade of Sogoshosha is carried out through the port of Vancouver.

"Teleport, which links several cable satellite services to a large number of customers through telephone, fiber optics or short wave installations, requires delicate computer architecture so consequently, it is established in big cities."

Vancouver and Sydney have recently been converted into recognized centers for Asian immigrants. Consolidation and the expansion of Sydney with the global economy, including a local airport, have turned it into a center for air traffic and has played an important role in this state of affairs. Vancouver has had the fastest rate of growth in urban areas in North America, and its population has risen from 1.2 to 1.6 million from 1981 to 1996. 600,000 people of the abovementioned population have arrived during the 1991-1994 period. The rate of international immigration has risen from 33% in 1980 to 59% in 1994. Most of the immigrants are from Asia. The secret of their relative advantage is, amongst other things, favorable city atmospheres (climate, ports, coasts, mountains, low degree of pollution) as well as multiculturalism. Vancouver is a part of an extensive geographical region stretching for 120 km.

Sydney has beautiful coasts and shelters and attractive climate that have created a desirable environment. The government believes in protecting the environment as the important center for tourism and attracting large numbers of tourists. Existence of local conditions, government decisions and activities of the private sector has been instrumental to the creation of sanatorium cities.

Marginal Cities: America has experienced a new wave of territorial extension in margins of cities, which have, somehow, been emulated by others. This new spatial form is called edge city, which has empirically been defined as the combination of five indices.

  1. An area in which at least 5 million square feet of administrative space has been concentrated and serves as the working site for the information era.

  2. At least 600,000 square feet is devoted to shopping centers.

  3. There are more jobs than houses.

  4. People should regard this area as a special space.

  5. There should not be any structures therein which can make the city seem 30 years old.

Development with magnitude of such territorial complexity has been registered in margins of some cities such as Boston, New Jersey, Detroit, Atlanta, Phoenix, Texas, South California, San Francisco and Washington D.C. Each of these spatial units has been extended by means of kilometers of administrative buildings, commercial facilities, and residential areas all of which have been built recently and which are accessible by means of communication highways. This kind of urbanization is name Ex-urban, which organizes life around the two poles of "computer work" and special centers dominated by audio visual culture.

Development of this ex-urban constellation stresses performance dependency of different units and different trends of urban systems at distances, reduces the role of land proximity and increases the role of communications networks including telephone lines and land transportation.

This model of urbanization is related to historical experiences and American culture, and is characterized by constant efforts to overcome social and urban difficulties by means of geographical mobility: first emigration to the U.S. to escape the conditions of the country of origin, then moving westward and benefiting from the vast area of the continent. Later on the middle classes left city centers and established suburban urbanization based on use of motor vehicles, television and ownership of individual homes and using government subsidies. Now they have abandoned suburbs, left the rural areas and have organized these marginal cities along highway arteries. Their only point of reference consists of scattered working places, individual inhabitants of compacted lands and without urban concentration and service centers in communication knots of highways.

This is not the end of cities, because New York, San Francisco and many other urban centers in several mother cities are busily carrying out their social, cultural, commercial and management activities. Now we are witnessing relative increases in the number of Americans abandoning any kind of urban experience in their daily lives. New communications systems have a tendency for concentration of activities and dispersion of population. Villages are emptied and abandoned, cities remain and survive but their residents decrease daily and ex-urban urbanization dependent on telephone lines and highways create new urban forms.

Cities with Double Roles: Simultaneous new economic and technical model is defined by dynamism of extensive production and territorial and social segregation. This conflict is seen on the basis of a global territorial level. For instance, the semi arid region of Africa, except South Africa, is increasingly isolated from the dominant technological and economic circuit of the global system. Separating models also appear through inequality trends for regional concentration. A new factor is that the separating events cause internal social separation of mother cities found in all countries.

The factors affecting the duality trend on natural basis are as follows:

  1. Housing and urban services crisis, which afflict a large part of urban population, including ordinary civil servants with average income, in most countries.

  2. Existence and growth of social inequality in big cities, from London or Madrid to Sao Polo or Mexico.

  3. Urban poverty, which affects a large part of population in most African cities commensurate with general structure of governments.

  4. The phenomenon of social segregation itself is a factor that lowers down large segments of society of mother cities to subsistence level.

  5. Industries with advanced technology present an employment model, which is quite different from the traditional model.

"Various urban models in the globalization era point to the fact that along with the new international division of labor, capital goes to regions that enjoy relative advantages and have rich information infrastructure at their disposal."

This employment model needs two professional criteria: specialist engineers and researchers on the one hand, a mass of semi-skilled and a small number of administrative personnel and skilled workers on the other hand. Hence progress of productive and financial services in some cities have led to a large number of occupations with high salaries, but it has greatly increased the number of low income families in those cities, and has ended up in polarization of society as the most important consequence of capital increases for production and large scale immigration of foreign workers from various cities of the world. In these cities passage from factory production to services from the mid 1970s, has caused a wide rift in various social groups and has placed the poorest social class involved in low income occupations beside the richest persons engaged in highly lucrative production jobs and has led to the extension of dual role cities, examples of which are found in most world cities. New York, which is probably the economic capital of the world as residence for the biggest capitalists, is a truly dual role city. Economic restructuring of New York during last 30 years has led to much social inequality. Confrontation between the rich and poor will be intensified. Different metropolitan districts are affected in different ways. Wastage by industries depresses mostly the suburbs whereas growth is concentrated in Manhattan. The changing geography of job opportunities shapes the apparent social geography of metropolitan districts. The rich inhabit major parts of Manhattan, but in most remote areas decline of social status is observed. The consequence for this trend is intensification of conflict between Manhattan and its suburbs. Many groups of informal occupations have been set up to respond to local needs. In South Bronx informal job means subsistence but in Soho it means an aristocratic life style.

Therefore urban duality of New York does not reflect simple difference between the rich and the poor and is not limited to reciprocal conception of those who drive luxurious limousines on the one hand, and homeless people scattered in the streets on the other. It reflects a social urban structure which is based on mutual relations between conflicting poles in the new information economy, whose logic of development polarizes the society, separates social groups, isolates cultures and segregates use of metropolitan space on the basis of various performances of social and ethnic groups.

Social urban duality in poor countries is also seen in terms of ethnic, professional, gender and educational groups. According to studies carried out in Burkina Faso in 1992, 25% of the active population was not employed, and most employed persons did not have steady jobs, and 58% were poor.

There is a close relation between employment conditions and poverty. There is a relation between education levels and chances for finding a job. 60% of wage earners get their jobs through intervention of friends or membership in ethnic groups. Attainment of special training too depends on personal relations and even starting a formal or informal job, irrespective of the size, depends on going through administrative regulations, which in turn, depend on communication system along ethnic lines. There are social differences between formal centers and informal margins. These differences are seen in the capitals of other African countries as well.

Information Cities: Some Asian cities have gained particular importance in information technology. Singapore has been trying to reconstruct its economy on the basis of an information city. Information technology has been the focus of attention in designing future cities. Project Teleport has been designed as an information city at a distance of less than six kilometers from the center of Tokyo. This project has drawn a great deal of attention in Malaysia too.

Teleport, which links several cable satellite services to a large number of customers through telephone, fiber optics or short wave installations, requires delicate computer architecture so consequently, it is established in big cities. That is why 27 out of 40 teleport systems, which were active in the U.S. in 1987, were established in big cities.

Having followed the above infrastructures, the companies are established in big cities, and in turn expand long distant communication systems and other intelligent networks commensurate with demand. These systems expand various urban performances and create many employment opportunities in some fields. Hence high-level advanced services are concentrated in definite knots and regions in some countries of the world. This concentration follows certain hierarchy in urban centers, and according to very important performances, skills, power and capital, are concentrated in main metropolitan areas of the world which have financial and consultancy links and commercial services, like New York, London, Tokyo etc, or in some areas dominated by special markets, like Chicago, Singapore, Honk Kong, Osaka, Frankfort, Los angles, san Francisco, Amsterdam and Milan.

Technopolises: Another kind of urban development, which along with economic globalization has changed the faces of cities in Asia and the Pacific, is establishment of big complexes of development and research. In Asia these complexes are located outside the Asian city centers. In Japan the government has encouraged establishment of technologically advanced cities or 'technopolises'. Among such cities one can cite the city of Tsukuba in the north east of Tokyo. Taiwan has applied the technique through the establishment of a scientific park, which is the center of production of advanced technology, research and development, in Hsinchu outside Taipei.

Decisions of transnational companies are linked not only on the basis of the extent of infrastructure but on the type and quality of infrastructure as a necessity as well. Governments in the Asia-Pacific region, in trying to provide services to big companies, have developed industrial parks in the suburbs of their cities. Most of such projects are concentrated in or near big metropolitan cities of the region. Industrial parks, supported by government or private investors, have worked successfully in Singapore, Taipei and Seoul.

Export Processing Zones: One of the most important and debatable innovations for export promotion and foreign investment is export-processing zones. In fact these areas are export territories where some encouragements are envisaged to attract foreign investors and pave the way for the entry of their capitals and pursue definite objectives. These zones are established within airports, harbors, at the side of big cities or in relatively undeveloped regions as part of a development strategy of those regions. 60% of employees of these zones are in Asia. Hong Kong has extensive export activities. Taiwan, Malaysia, South Korea and the Philippines have a large number of employees in EPZs, who play an important role in their industrial development trends.

Regional Urban Performance Systems: Among the forms of urban development in Asia and the Pacific, a mention should be made of the appearance of the extensive "urban corridor" between Tokyo and northeast China through Korea to Malaysia, Indonesia and the Philippines as the East Asian Regional Urban System. This big urban corridor consists of a series of smaller "urban corridors." The 'S' shaped urban corridor stretching for 1,500 kilometers of urban belt from Beijing to Tokyo through Pyongyang and Seoul, connects 112 cities each with 2 million inhabitants within an urban zone of 98 million. Urban network, within performance urban system of Asia and the Pacific has not developed uniformly. Demand for emergence of regional urban system varies depending on different systems but takes place mostly under influence of economic factors. Cities that are at the apex of the urban hierarchy are main capital exporters. In these cities commercial companies play a commanding role and exercise important control in the region and the world (like Tokyo in Japan at the same or lower level, Seoul in Korea and Taipei in Taiwan). These cities develop differently with important recipients of direct industrial foreign investments for example Jakarta in Indonesia, Shanghai in China and Bangkok in Thailand). Moreover two commercial centers of Hong Kong and Singapore display a level of extraterritorial development, which has been unprecedented in other metropolitan centers.

Transindustrial Cities: Extra-industrial cities are dominant and advanced in information processing. Tokyo and Seoul and Taipei, on the lower end of the scale, are examples of extra-industrial development. These global cities are concentration centers of trans-national companies, multinational banks and production and commercial services. In Tokyo employees of the industrial sector have decreased and employees of service sectors have increased. Tokyo is the place for extensive concentration of performance of central management, research and development companies and government agencies in Japan. A disproportionate part of population of the country is accumulated in Seoul (23% in 1995). Advanced technological services and activities are highly concentrated in the metropolitan area of Seoul. 57% of total industrial installations and 51% of their workers were concentrated in the metropolitan area in 1995. All Korean trans-national companies were in this city and benefited from close contact with the central government, which is imperative for commercial transactions. In fact extra industrial cities have employees that bring about development of the fourth sector, namely occupations like management, administrative and advanced technologies.

These relations give a special form to the urban panorama. Cities are turned into concentration places of big projects, particularly residential and commercial spaces with high rental, developmental and research centers, leisure and entertainment facilities for high income groups of employees. Teleports are developed for easy and fast transfer of information and illumination of intelligent buildings, banks and other financial institutions in the central commercial areas and give a multi center structure to cities, each center playing a different role in the economy of the city. This structure is clearly visible in Tokyo and Seoul.

Industrial Cities: Industrial production trends are of paramount importance for development of regional production system, hence these centers play very important role in urban performance systems. Industrial centers consist of some urban areas such as Bangkok, Jakarta, and Shanghai. These centers have recently witnessed reduction of agricultural activities and extension of industrial concentration in outer layers of the city. Industrial development has continued with the support of the government including the establishment of industrial parks in the outer parts of cities. External parts of cities in which more land is available, absorb extra national investment and cooperation for industrial development. Hence they cause foreign investments to flow and be accepted.

Global consolidation has affected the model of production development and production companies are formed around the central nucleus of cities.

The flow of foreign direct investment in industrial cities of Bangkok and Jakarta has led to a city shape in which industrial development has taken place in the suburb or outside the margin of cities, and commercial development in the centers of cities. Other cities like Shanghai have gone through similar transformations. This kind of development is different from development of capital exporting cities.

Conclusion: Various urban models in the globalization era point to the fact that along with the new international division of labor, capital goes to regions that enjoy relative advantages and have rich information infrastructure at their disposal. These regions are converted into extensive urban areas or communication and management knots of global networks, and form the nervous system of the international economic system.

The socially and economically underdeveloped regions which lack desirable infrastructure and skilled and efficient manpower and cannot substitute fiber optics for copper cables, which cannot attract capital and industries that are necessary for their developmental survival and as the result, cannot get information about new technology and new scientific achievement and new concepts that emerge in big urban centers, will be highly vulnerable.

Any efforts made to ignore these realities instead of accommodating them in order to meet social needs and contain existing conflicts will inevitably lead to the widening of the gap between realities and urban theories, and in this connection the underdeveloped countries will be the ultimate losers.

 

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