globalization and regional development - in southeast asia and pacific rim - by dr. lee won il note...

GLOBALIZATION AND REGIONAL DE-VELOPMENT

- in southeast Asia and Pacific Rim -By Dr. Lee Won IL

Note: The purpose of this document is to understand many sides of urban public administration in KoreaWithin local autonomy system

Public Administration Department , Young San University

• CHAPTER 1

• Introduction• The Globalization of Economy and

spatial Implications

• CHAPTER 2

• Urban and Regional Development Strategies in an Era of Global CompetitionLecture 1Lecture 2

• CHAPTER 3

• Globalization Strategies for Urban and Regional Development in KoreaLecture 1Lecture 2

• CHAPTER 4

• The Open Door Policy and Urban Development in china

• Lecture 1Lecture 2

• CHAPTER 5

• A Mega City and Its ManagementLecture 1Lecture 2

• CHAPTER 6

• Deconcentration of office Activit-ies in JapanLecture 1Lecture 2

• CHAPTER 7

• Urban Development Strategies : The challenge of Global to Local change for Strategic ResponsesLecture 1Lecture 2

• MID TERM EXAM.

GLOBALIZATION AND REGIONAL DEVEL-OPMENT

- in southeast Asia and Pacific Rim - By Dr. Lee Won IL

• CHAPTER 8

• Factors Influencing Canadian Private Sector Interests in Asia and Related Policy Implications for Regional and Urban Policy Eco-nomic Development Lecture 1 Lecture 2

• CHAPTER 9

• Network and Embeddedness in New Industrial Districts : Local and global PerspectivesLecture 1Lecture 2

• CHAPTER 10

• Regional Cross-Border Coopera-tion : Towards Higher Forms of Economic IntegrationLecture 1Lecture 2

• CHAPTER 11

• Urban Development Strategy in an Era of global Competition : The case of Hong Kong and South ChinaLecture 1Lecture 2

• CHAPTER 12

• Facing global Competition Through a national Integrated Planning System

• Lecture 1Lecture 2

• CHAPTER 13

• Changing Perspectives for the Korean housing IndustryLecture 1Lecture 2

• FINAL TERM EXAM.



Although there has been a profusion of academic papers and policy documents addressing the issues of globaliza-tion, the term of ‘globalization’ has seldom been clearly defined. This has often led to a lack of clarity and reality in the goals and objectives of policy and planning in relation to the globalization of economy.

This paper has attempted to clarify the meaning of global-ization, particularly in the planning perspectives. Despite no clear consensus on the meaning of globalization, there are a few common characteristics of globalization in its economic manifestation.



Chapter 1; The Globalization of Economy and spatial Implications

They include the gradual decline of the regulatory power of nation-states, the increasing movement of production factors such as capital, labour and technology across na-tional boundaries, the functional integration of internation-ally dispersed economic activities in to a global economic system of interdependency and the geographical spread of the capitalist mode of production, so-called post-Fordist mode of production.

These characteristics of globalization have distinctive im-pacts on spatial configuration and regional development. The breakdown of national regulatory power likely leads to the devolution of government function to local authorities.

The performance of economy is more likely to be deter-mined by the capacity and capability of local govern-ments.



There will be an intensification of competition among re-gions and localities which are likely to expand spatial in-equalities. The increase of the mobility of capacity and business activities will also change the comparative ad-vantage for industrial location as production space for do-mestic firms expand across national boundaries. This will have significant impact on spatial structure and regional of local development in the future. Therefore, it will be a chal-lenging task for local governments to maintain the stability and self-sufficiency of their local economies in the global-ized economy in which capital and business activities are easily to move across national boundaries due to a weak-ening of national regulatory power.

In addition the spread of so-called capitalist mode of pro-duction has also significant impact on the changes of spa-tial structure and regional or local development because it will change the spatial structure of economic activities, such as production, financing,



R&D, management and etc. and it will require a different set of location factors for production. High-tech and infor-mation industries require not only advanced communica-tion and information facilities and specialized services but also high quality residential environments.

It is certain that the globalization of the world economy will have fundamental changes in various aspects of our socio-economic life and spatial forms. It is hoped that this paper helps to stimulate further discussions and studies to identify the effects of economic globalization on urban and regional development and to explore appropriate planning strategies to meet with the rapid changes that are taking place on a global scale.



The evaluation of new towns and technopolis experience draws attention to the strengths and weakness of urban and regional development strategies in an era of global competition. The ba-sic strength of the new town concept lies in its success in creat-ing a high quality living environment for a large number of peo-ple. Although the evaluation draws essentially on British expe-rience there is plenty of evidence from other countries to sup-port this general finding. However, new town in general have been less successful as instruments of regional policy. In partic-ular they have had a more limited impact in declining regions as against growing regions. Finally, while new town experience demonstrates the importance of creating special agencies for implementation purposes, it also points to the need for private as well as public investment in such projects.

GLOBALIZATION AND REGIONAL DEVELOP-MENT


Chapter 2; Urban and Regional Develop-ment Strategies in an Era of Global Com-petition

These findings are generally supported by those from the evaluation of technopolis experience. Like the new town one of the basic attractions of the technopolis concept is that it provides a high quality living environment for its inhabitations. As in the British new town the experience of the Japanese technopolis programme is variable as an instrument of regional policy. However, although the overall findings generally confirm the view that the chances of success in growing regions within easy reach of the industrial heartland are highest there are enough exceptions to raise some interesting ques-tions about the role of local enterprise and the influ-ence of indigenous industries on successful devel-opment. The technopolis experience in Japan and else-where also draws attention to the catalytic ef-fect that the involvement of a wide range of differ-ent sections of the local community can have on the overall development process.



However, as the findings of the academic research demon-strate, the use of instruments such as new towns and tech-nopolises cannot guarantee a successful local response to increasing global competition. Nevertheless there is enough evidence in both cases to indicate the extent to which well thought out urban and regional planning strategies can be of considerable value in facilitating competitiveness and promote industrial restructuring in the face of internationali-sation and globalisation.

It must be recognised that the overall costs of using these instruments may be considerable and that the benefits may only be realised in the long term. There are also these who question such p[olicies in the grounds of equity(Massey, Quintas and Wield, 1992).

These were obviously important considerations in the eval-uation of the initial British new towns experience given that most of the funds were provided from central government sources.



However, as the case of the later British new towns and ja-panese technopolises demonstrate the question of costs needs to be put into a broader perspective. With respect to the latter, the direct cost input from central government is very modest and a large part of the investment is locally generated by the sector. It is only at the prefectural level that conflicts arise between the technopolises and other ar-eas with respect to claims against infrastructure investment.

Although local circumatances are likely to vary considerably in different counties and in different parts of the world it would appear from this analysis that planners should build upon their strengths in developing urban and regional strategies in era of global competition and also that they should understand their weaknesses in this respect. They should also recognise that the ability to distinguish between strengths and weaknesses may also be a powerful tools at their disposal under these circumstances.



The globalization of the economy is an irreversible and inescapable trend precipitating fundamental transforma-tion in overall socio-economic system. It is also the largest strategic issue for Korea and its localities in effectively ad-justing to future changes. Since globalization is accompa-nied by overall changes in socio-economic organizations and structures, it will be difficult to single out the impacts of globalization and try to meet them individually.

Therefore, spatial policy or planning towards globaliza-tion needs to be more concerned with improvement in the quality in various aspects of urban and regional develop-ment rather than improvement in a few particular areas.



Chapter 3; Globalization Strategies for Urban and Regional Development in Korea

• It should put more emphases on the creation of institutional or organizational frameworks to promote technological in-novation, new firm formation and local networking for in-formation and production than the provision of few selected infrastructure. It will be one of the major tasks for spatial development policy or planning to create adequate socio-cultural environment such as high quality social services, residential or community facilities, and a cultural environ-ment to meet with future changes. Environmental quality will be a particularly important factor determining the de-velopment of counties and localities.

• However, what is more important in spatial policy or plan-ning is the establishment of local autonomous systems and competence to deal with future changes or globalization trends so that local governments should determine their needs and take initiatives in utilizing their resources. In this respect, local governments should be given more autono-mous decision-making powers in various aspects of local af-fairs such as in hand-use planning, public investment and mobilizing financial resources.



In the last decade, with the development of Open Door and influence of the world economy, accompanied by the development of science and technology, China's urban development policy and the choice of objectives have been adjusted and reformulated. This is described as fol-lows:

First, given the potential for rapid development created by the new global economic conditions, it is important for both the coastal cities and remote areas to adjust by im-proving the urban economic environment. In most of the metropolises with populations above 1 million, the objec-tives of "Internationalisation" and "Modernisation" have come to be regarded as the major development impulse.



Chapter 4; The Open Door Policy and Urban Development in china

This means an emphasis on the construction of exter-nally oriented transport and other infrastructure, thus emphasising the general improvement of the "invest-ment environment". The tertiary industry has also un-dergone considerable development. At the same time, the population and land use have expanded in most of the large cities. At present, 4 large mega-cities(i.e. Yangtze River delta area of Shanghai-Nanjin-Hanzhou, Ring Bohai Bay area of Liaoning Beijing-Tianjin-Tanshan, Pearl River delta area of Guangzhou-Shenzhen-Hong Kong, and Liaodong Bay area and mid of Liaoning Prov-ince of Shenyan-Talian)have been established. The large cities are tailoring their urban functions to modernisation and internationalisation. The former policy in last several decades of "strictly restraining the development scale of large cities" has been broken.



Second, it is the continuing policy and objective "to ac-tively develop small cities and towns". This policy has not been implemented perfectly in the last decades. Neverthe-less, small cities and towns have been developed very quickly since the Open Door and Reform Policy. From 1978 to 1992, the number of small urban centres has increased to 14,000 from a little more than 2,000. The township en-terprises and the development of the tertiary industry con-centrating in retail and trade in rural areas is the force be-hind this development. Some new towns established by the funding of farmers have appeared. The increase in agricultural productivity in China's rural areas has allowed for the freeing up of surplus labour and its subsequent transfer to the urban centres. This is a strong motivating force in the process of rural urbanisation. Most small towns in China work like a "small reservoir" to absorb the surplus labour-force. In this case, it is still an important policy ob-jective of Chinese urban development to continue to en-courage the development of small towns.



Third, the quality of the environment, which has been regarded as the most important objective of urban de-velopment, needs urgent attention by the Chinese government. While the Open Door has encouraged ur-ban economic development, it is unable to "automati-cally" improve the quality of the environment. Quite to the contrary, a deterioration in the quality of the envi-ronment is sometimes perceived as a necessary, if un-fortunate, cost. In the long term, however, such envi-ronmental compromises are likely to affect future prospects for economic growth. The shift of primary processing industries to the Pearl River Delta area from Hong Kong is one pertinent example of the environ-mental costs of industry.



The objective of environment protection and im-provement, in conjunction with involvement in the world economy, must be emphasised in the period of China's Open Door Policy. Looking at China's experiences, it is necessary to formulate and implement comprehensive and integrated plans when developing an area. Plans should fo-cus on the co-ordination of economic develop-ment objectives, fulfilling environmental and so-cial development objectives. Such plans are nec-essary to secure sustainable urban development and long term benefits by emphasising their ad-vantages and avoiding their disadvantages.



The SMA has entered into a new era of step-forward movement. The core of the region, Seoul, is celebrating its 6th centennial this year. The metropolitan Government and citizens are jubilant and ambitious. They have prepared a new master plan and several bold inner-city re-generation programs by which to covert the city into a global metropolis. This purports to pre-pare for the era of global competition and coop-eration in which Korea will share an enhanced role in trade, communications and international politics.

Chapter 5; A Mega City and Its Manage-ment



New regionalism, restoration of local-self government, open permissible society in emergence, minimum public in-terference with the private market pledged by the govern-ment and rapid advance in transport, communications and information technology become characteristic of the present-day Korea. This will alter the basic framework within which the policy of containment and management become relevant and workable for the SMA.

Looking back into the past, it is quite an irony that the very base for Korea’s modernization has been subject to a volley of government’s plans, rules and regulations designed to thwart its physical growth. Seoul has survived these handi-caps through structural sophistication but paying very high costs – the costs of congestion and degrading life within the SMA and the costs of diminishing attractiveness to live in the less prosperous parts of the country.



For this reason, the central and local govern-ments were not always assured of the wisdom and practical implications of the containment policy and it will be likely so in the time to come.

The metropolitan policy for the SMA will con-tinue to witness contrasting views, contradic-tions, back-fires and endless controversies on how a city or a metropolitan region can thrive without incurring much social cost and without becoming an economic burden upon the national economy.



The results of the simulation indicate that downzoning is the most effective measure. As shown in Column C, 10% downzoning would reduce the percentage of office workers in the three wards of central Tokyo in 2010 by 2.0 points. On the other hand, incentive zoning (10% increase in volume ratios) in central Tokyo (the three Tama districts and commercial core cities) would bring a reduction of only 0.4 points in the percentage of office workers in the three words of central Tokyo by 2010 (Column D).

However, the results also indicate that downzoning alone would not be sufficient to bring about a drastic reduction in the percentage of office workers in the three wards of central Tokyo.



Chapter 6; Deconcentration of office Activities in Japan

Even if the downzoning ratio was increased to 15% or 20%, the share would still remain above 30% in 2010. It would therefore be necessary to enhance the effec-tiveness of downzoning by combining it with restric-tions and incentives. A combination of 10% downzon-ing and 10% incentive zoning (Column F) would be relatively effective, resulting in shares of 32.5% for the three wards of central Tokyo and a total share of 30.4% for the Tokyo cities and the commercial core cities.

The effectiveness of these measures could be further enhanced through the promotion of telecommuting in order to reduce the frequency of work-related travel, thereby negating the benefits that currently result from the concentration of offices in the three wards of central Tokyo.



The inclusion of this policy will mean a decline in the future percentage of office workers in the three wards of central Tokyo to 28.9% (Column F), accompanied by an increase in the shares of other regions. The merits of concentration appear to have a consider-able influence on office siting decisions.

The simulation indicates that the reversal of the trend toward central siting in spite of these ad-vantages will require a comprehensive approach that includes not only measures to encourage the siting of office in the suburbs, but also the restric-tion of siting in central Tokyo and the modification of work patterns through the introduction of telecommuting.



Having begun this paper with an assessment of the impact of global trends in the world economy for urban develop-ment strategies, it is concluded by examining the main characteristics of local urban development strategies which are currently being pursued in the author's own region, i.e.Wales, UK.

In December 1993, the Secretary of State for Wales an-nounced a ￡ 55.0 million competitive bid package to revi-talise Welsh communities in the financial year 1994/95. This funding was aimed at economic investment, environmental improvement, and social development in areas facing the most urgent needs for urban regeneration.



Chapter 7; Urban Development Strategies : The challenge of Global to Local change for Strategic Responses

All urban regeneration programmes in Wales are now administered through the new Strategic Development Scheme (SDS) begun in 1993. The new SDS programme in Wales specifically refers to the need for local authori-ties to prepare well defined local strategies for urban re-genera-tion which set out a clear vision for the future.

The Secretary of State for Wales has confirmed that he will particularly favour applications which are the product of parnerships between local authorities, the develop-ment agencies, or other private and public sector part-ners and voluntary groups.

Whilst the welsh context for urban regeneration has been different in some respects to that for England, there have also been close similarities.

Urban regeneration schemes in both countries are rooted in a process of competitive bidding by local authorities to central of regional government, in requirements of pri-vate sector investment leverage, in the targeting of ar-eas in need, and in their emphasis on partnership.



A number of principles of 'best practice' has been identified by Alden and Romaya (1994) in terms of urban develop-ment programmes, and these are shown in Table 7.9. The SDS programmes funded by the Welsh Office in Wales have adopted many of these principles of best practice to rank individual bids eligible for funding.

The 1994/95 programme has included additional objectives to those of the 1993/94 programme, covering high quality development, local strategies setting out a clear vision of the future, sustainable economic development, importance of local partnerships, and the support and strengthening of local communities. These are the hallmarks of good prac-tice in developing and implementing urban development strategies in the 1990s and beyond.



Many cities around the world have adopted and are adopt-ing similar principles of vest practice. The London Planning Advisory Committee, in its 1993 Draft Advice on Strategic Planning Guidance of London, identified a four fold vision for the city, I.e. (a) a strong economy, (b) a high quality en-vironment, (c) a sustainable future and (d) opportunities for all.

Any approach to urban regeneration must be based upon a set of strategic principles (Table 7.9). The essence of the urban regeneration process is turning a 'liability' (e.g. a derelict building or vacant land located in a prominent posi-tion in a town centre, or indeed a whole town) into an 'as-set'. This has been the main task of urban regeneration ini-tiatives in Wales and elsewhere in Europe in recent years.



The regeneration process is summarised in Table 7.10. This process emphasises the interaction of economic, environ-mental and social improvement in urban economic devel-opments, and the importance of the end-product, i.e a high quality urban environment.

The need for effective and equitable urban development strategies at global, national, regional and local levels has never been greater. Cities and localities are here to stay and pose a substantial challenge to urban planners throughout the world. Cities are not only engines of eco-nomic growth but examples of civilised living.



Although the purpose of our study of Canadian private sector interests in Asia was somewhat different, the findings do nev-ertheless provide some interesting pointers for those that are drafting urban development strategies that look to foreign participation in meeting the underlying targets for economic growth.

First of all, it would seem that - all things being equal - there is a preference for doing business closer to home. This suggests that the liberalization of trade could in fact be accompanied by a seemingly contradictory tendency towards trading blocks, as firms withdraw from operating bases further afield.



Chapter 8; Factors Influencing Canadian Private Sector Interests in Asia and Re-lated Policy Implications for Regional and Urban Policy Economic Develop-ment

Implication: Planners should be wary of setting incentive programs that limit access to local markets - such as those often associated with Export Processing Zones, which tend to attract footloose industries seeking low taxes and labour costs. Instead, the emphasis should perhaps be on encour-aging foreign firms to enter and establish ties with the local market.

To take this reasoning one step further, there may well be a case for getting foreign firms even more embedded into the local and neigh-bouring markets through policies and incen-tives that encourage the of products geared specifically to local tastes and/or the economic realities of the regions's future … for instance, forms of personal transportation and related infrastructure that are compatible with the physical form, financial capability and environmental concerns of ur-ban areas in the region.



Secondly, our findings support the view that for many firms trade precedes investment in a more permanent presence. what is more, the impetus to start trading comes not so much as a proactive move on the part of the supplier but in reaction to an approach by locally-based agents/representa-tives, a trading house or, in some instances, a locally based Canadian customer.

Implication: This suggests that plans to attract foreign in-vestment might usefully be primed by encouraging appro-priate imports - with the help of local agents and trading houses in identifying and enticing the interest of leading suppliers.

Thirdly, the ability of a country to attract direct foreign in-vestment is closely related to the level of domestic savings.



Implication: Put in place policies and mechanisms to en-courage and mobilize local savings - for instance through tax deferral and similar incentive programs, such as retire-ment savings plans and community bonds.

Fourthly, the sourcing of project finance and the security of the investment is becoming a critical issue, as responsibility for infrastructure development is transferred to the private sector. Too much is at stake for the resolution of this issue to be left to chance.

Implication: Planners will likely need to work closely with lo-cal entrepreneurs and financial institutions- in other words those that stand to gain the most - develop policies and procedures that promote and facilitate joint local/foreign in-vestment project with adequate safe guards for foreign partners.



Fifthly, our finding underscore the importance of publi-cizing emerging needs and opportunities.

Implication: Urban development strategies which are dependent on foreign participation should include pro-vision for the targetted promotion of trade and in-vestment - including promotional missions to spread the word in key countries.

And finally, it is perhaps worth repeating that while fi-nancial assistance in the development of business is always welcome, it is seldom a deciding factor : the key is to put policies in place that give the right sig-nals.



Dynamic aspects of new industrial districts are resulting from the coexistence of contrasting forces, especially localization and globalization, governing the functioning and formation of the districts in the contemporary global space econ-omy. The contrasting forces governing new indus-trial districts are coexistence of local and global networks, local and non-local embeddedness, flexible and mass production systems, and small and large firms. Because of this coexistence of contrasting forces, there are various types of new industrial districts.

Chapter 9; Network and Embeddedness in New Industrial Districts : Local and global Perspectives



Nine types of industrial districts are identified based on lo-cal/non-local networks and intensity of both suppliers and customers networks. The different types of new industrial districts are customers by differences in embeddedness, production systems, governance, cooperation and compe-tition, and institutional factors.

Out of nine types of industrial districts, four types-Mar-shallian; suppliers hub and spoke; customers hub and spoke; and satellite-are regarded as distinctive new indus-trial districts and four additional types-advanced hub and spoke types (suppliers and customers) and mature satel-lites (suppliers and customers)-can evolve from the dis-tinctive type and may be regarded as hybrid types. The last one-the pioneering high technology industrial district-can be developed from the advanced hub and spoke types. This type is the most advanced modern industrial district in the current era globalization and high technol-ogy.



The dynamic aspects of the districts are related to the co-existence of contrasting forces in the contemporary global space economy. However, the development trajectory is not a natural one and not all the industrial districts can develop to the other hybrid types in developing countries because of the existence of several problems.

Insufficient technological and information infrastructure, lack of entrepreneurship, poor local labor markets, lack of local cooperation and collaboration, and poor local em-beddedness and networks are critical problems in develop-ing countries. Cooperation between large and small firms, provision of local innovative culture or technological inf-tastructure, support of spin-offs and new start-ups, foma-tion of innovation networks, and public-private partner-ships are the major strategies to be considered in Korea for the development of new industrial districts.



They require the formation of supportive tissues of institutions for the evolution of dynamic pat-terns of industrial districts. Some of the original distinctive types of new industrial districts in the developing countries can not follow the path or trajectory suggested in this paper and may de-cline instead of advancing. This scenario is likely if there is no formation of supportive social struc-ture or policy.



This paper has tired to demonstrate the significant roles urban centers play to stimulate both national and regional development and one of the key strate-gies adopted to enable Philippine cities to respond to the changing environment for international trade.

Mindanao and its cities, have been in the forefront in setting the direction for interregional planning in the context of cross-border cooperation. The national gov-ernment has been optimistic that this initiative will be a success. Recent developments in Mindanao indicate that positive developments are underway as this early, private sector investments in the area have be-gan the materialize.

Chapter 10; Regional Cross-Border Co-operation : Towards Higher Forms of Economic Integration



The development of the EAGA is an attempt to en-hance the existing economic interactions among the four participating countries and capitalizes upon the vast potential of the four ASEAN members to pursue joint development with mutual benefits. The country's involvement in the EAGA has a number of positive im-plications. In general, it opens up new markets and sources of raw materials that well accelerate the growth of the national economy. In particular, for Min-danao, the EAGA brings to the center stage the con-cerned cities being the focal centers in these under-takings. It also makes the island a more attractive site for investments in manufacturing, industry and tourism. And most of all, it rapidly globalizes the orien-tation of Mindanao's economy.



Crucial in these undertakings is the ability of existing urban centers to sustain emerging developments and demands at hand. Thus, both the national and local governments should join forces together in meeting these expectations. For the national government, what is required is the continuous support to the local gov-ernments, particularly in the formulation of enabling policies that would maintain a sustained development climate in the area and building capacity of chief ex-ecutives to manage their cities better. This includes the policies on integrated urban development. For the local government units, a zealous dedication for the development not only within its jurisdictional bound-aries but as well as its suburban areas. Being close to the people, the city executives should undertake a well-functioning collaborative relationship with its con-stituents to encourage people participation and pri-vate sector investments.



Urban development strategies adopted for cities in south China and for Hong Kong in the last fifteen year are ar-guably as a response to the dynamics of NIDL. However, it would be difficult to pinpoint which strategy is a reaction to which specific change in the global market. An incremental process of adjustment and readjustment is evident.

The introduction of the Open Door Policy signifies the Peo-ple's Republic's re-entry into the global economic frame-work with regional economic imblance in the country be-coming more acute.

Chapter 11; Urban Development Strategy in an Era of global Competition : The case of Hong Kong and South China



On the other hand, the increasing interaction between the Chinese and the global system has brought tremendous impact on the Chinese society beyond the economic scene.

Chinese urban development strategy has to deal with the competitions encountered by the Chinese productivity in the global market. It also has to resolve the problems aris-ing from the process of economic restructuring. The issue of floating population, which is regarded as the "harbinger of (urban) crisis" (Chan, 1992), is a case in point. At the same time, the increased conversion of farmland into manufacturing and real estate operation has enormous impact on the eco-environment. Development regardless of sustainability is obvious in the Pearl River Delta region.



In Hong Kong, with increasing emphasis being placed on the servicing and financial sectors; her manufacturing linkage with China is growing stronger and stronger. The industrial planning process will no doubt have to take due consideration of the development across the border. It has been said that a regional tier of authority is necessary to oversee the development in southern China (Chan, 1994).

With the approach of 1997 and the city becoming a Chi-nese Special Administrative Region, Hong Kong can and should act as a financial city of China. Industrial productiv-ity should be augmented using the Pearl River Delta and the inner provinces as her hinterland. With such transfor-mation, obsolete industrial land in the urban area will cre-ate serious interface problems regarding the different types of land-use.



What is needed is a set of theories capable of explaining the divergent development processes. Metropolitan region of different levels of development well call for different so-lutions to address the problems hitherto identified. We have seen the impact of economic restructuring in our foregoing discussions on urban development strategies in mainland China and Hong Kong. NIDL facilitates the flow of capital, production resources and labor forces between Hong Kong and south China. It also stimulates changes within the do-mestic economy. It is but two sides of the same coin : On the one hand, NIDL is promoted by urban development strategy in the regional and global sense; on the other hand, urban development strategy has accelerated changes in the urban and spatial domain.



The above integration between the two types of planning is incorporated in the proposed national planning system for Malaysia. While land use plan-ning is only one level of planning, in the strategic planning framework, the proposal for Malaysia en-sures that land use planning appears at all levels of planning, i.e. at the national plans, policies and strategies level, macro-scale resource manage-ment plans level, and micro-resource management plans level.

Chapter 12; Facing global Competition Through a national Integrated Planning System



This system is perceived to be more effective as there is provided a system of checks and balances at every level of planning and management of environmental re-sources. To facilitate these checks and balances, different forms of SEA, which are proposed for the various types of policies, plans and programmes at all levels of planning and management, perform the 'policing' role.

The system of integrating socio-economic planning with land use planning justifies and forms the basis for SEA in land use planning in Malaysia. The operation of the sys-tem and process, and the outline strategy for actions therefore require cooperation among all agencies in-volved in these two forms of planning.



Summary

• that the housing sector has some serious problems which may prevent it from being competitive in a globalized economy;

• that various government controls have been partially, if not totally, responsible for market distortions as evi-denced in part by extremely high estimates of PIR and RIR, and low estimates of both housing demand and hous-ing production parameters;

• that some of the changes are immanent, implying that they need immediate policy attention, including the ones that well alter the housing demand structure, e.g., de-mography and income, and the other factors that will change the housing production;

• that both government and the housing industry alike must immediately respond to these changes as a major step to prepare for the globalized economy.

Chapter 13; Changing Perspectives for the Korean housing Industry



Recommendations

• that the housing market should be minimally controlled and if there arises any need for government interven-tion it must be done indirectly, i.e., by means of taxation and financing;

• that the housing policy at the national level should not be formulated and executed independent form macro-economic and urban/regional policies because the inter-action between them are too great to ignore;

• that the land use controls should be relaxed and land conversion be made easy in order to alleviate both ab-solute and relative shortage of residential land in urban areas;



• that the multi-purpose and mixed uses of the urban lands should be encouraged and building codes and design standards be revised to allow for mixed developments;

• that the housing finance system should be strengthened in order to provide sufficiently large amount of housing funds, and it must be worked out in time and so the effort can be coordinated with the financial liberalization scheme;

• that the government should allow private developers to actively engage in residential developments on a compet-itive basis; and finally

• that the most effective way to prepare for the globaliza-tion is to build up an atmosphere in which fair competition can take place among the domestic builders on the one hand and between the domestic and foreign builders on the other.



globalization and regional development - in southeast asia and pacific rim - by dr. lee won il note...

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term of globalization

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