EQ3: How is regeneration managed? Flashcards
What are the different types of infrastructure?
INFRASTRUCTURE - The basic physical systems of a place:
- ECONOMIC Infrastructure includes highways, energy distribution, water and sewage facilities, and telecommunication networks.
- SOCIAL infrastructure includes public housing, hospitals, schools and universities.
What is the difference between regeneration, rebranding and re-imaging?
REGENERATION
- Investment in an area, perhaps a form of infrastructure or other elements of physical fabric. Hopefully triggering a process of cumulative causation/multiplier effect via employment opportunity. The overall change is sometimes described as urban renewal.
REBRANDING
- The ‘Marketing’ aspect of regeneration designed to attract businesses, residents and visitors. It often includes re-imaging as in an increasingly globalised, competitive and consumer-orientated world, cities have been forced to think more creatively in order to continue attracting visitors and investment.
RE-IMAGING
- The area is ‘sold’ or ‘advertised’ to change the impression investors have of the area and attracting people to it.
E.g. Saigon was renamed Ho Chi Minh City in 1976, ‘Big Apple’ or ‘The city that never sleeps’ for New York.
What role do Governments play in regional growth?
GOV. REGIONAL GROWTH
1. The UK government can make decisions that affect the rate and type of development (affecting the economic regeneration of places) - prioritising national over local needs and opinions.
- The government plays a crucial role in unequal regional growth by managing the country’s economic, social and physical environment through various political decisions.
- Investment and infrastructure as well as addressing the issues of accessibility and connectivity are seen as significant factors in maintaining economic growth.
- Since the 1980s there has been increasing privatisation and partnerships between government and private financiers. The private sector is used to design, build, finance and/or maintain public sector assets in return for long-term payments or profit from the initial revenue generated.
- Regional growth is determined by infrastructure development, without correct infrastructure, it is harder for regions to prosper.
Who are the different Governmental departments involved in infrastructure projects?
GOV. DEPARTMENTS
- The Infrastructure and Projects Authority, part of the Treasury, was formed in January 2016 by the merger of several departments - overseeing long-term infrastructure priorities and securing private sector investment.
a) These following departments are involved in both ‘hard’ regeneration - (capital investment, physical buildings, infrastructure) and ‘soft’ regeneration - (planning, skills and education).
- Yet other Non-Governmental Organisation groups such as pressure groups, environmental groups and charities/individuals may get involved. - The Department for Communities and Local Governance (DCLG) aims to empower local people to shape their places.
a) Including the Planning Inspectorate and Homes Communities Agency, which oversees Environmental Impact Assessments (EIA’s) and Local Enterprise Partnerships (LEP’s). - The Department for Culture, Media and Sport (DCMS) markets the UK’s image abroad and protects and promotes the cultural and artistic heritage and innovation.
a) Includes Sport England and the National Lottery. - The Department for Environment, Food and Rural Affairs (DEFRA) advocates environmental stability as part of sustained economic growth.
a) Oversee the Environmental Agency, Natural England and the National Park Authorities. Advocating environmental stability as part of sustained economic growth. - UK Trade and Investment supports UK businesses and encourages inward investment.
a) Oversees the Regeneration and Investment Organisation (RIO), which is involved in large-scale flagship regeneration projects.
What are Flagship Regeneration Projects?
FLAGSHIP REGENERATION PROJECTS
- Large-scale, prestigious projects, often using bold ‘signature architecture’. The hope is to generate a positive spin in a place.
What are some examples of Flagship Regeneration Projects?
FLAGSHIP REGENERATION PROJECTS
1. High Speed Two (HS2) -
a) The new infrastructure of a high-speed rail network from London to Birmingham, Manchester and Leeds. It is key to the large scale Northern Powerhouse regeneration scheme.
- The train travels up to 400 km per hour.
b) To combat congestion, as the worst is found in the economic core of London extending to Birmingham/Manchester (M6) and Leeds (M1). The pollution (carbon emissions) from roads in congestion is significant in our modern climate.
c) A 2008 report estimated that by 2025, road congestion would cost the UK £22 Billion each year in lost time
60,000 construction jobs will be created.
d) Phase 1, Euston to Birmingham - which will cut journey times from 80 minutes to 49 minutes.
- Phase 2, will lead North-West to Manchester and North-East to Leeds.
- With end dates of 2026 and 2030 (shows the scale of the project).
e) Has negatives that the route will pass through the Chilterns AONB (with no immediate stations - so communities will not gain from it).
f) The costs (£50 Billion) has caused some controversy through a Cost-Benefit Analysis.
g) A rapidly growing population proves that the UK needs new infrastructure just to catch up, let alone plan for future economic growth and increase economic productivity in major cities. Most of the current rail infrastructure is Victorian and inefficient (lacking the technology and limited speeds). New routes for freight are also needed as well also in place to improve accessibility to regenerate regions.
- Airport Development -
a) 2015, the Airports Commission gave a clear and unanimous recommendation for an expansion plan at Heathrow, including a third runway.
b) Cost is an estimated £18.6 billion and will be privately funded with some support infrastructure being publically funded.
c) Anti-Expansion: London’s Mayor, local MP’s (Including Zac Goldsmith - who stood down when it got the green light), Greenpeace.
d) Pro-Expansion was mainly Business leaders: Richard Branson, British Chambers of Commerce.
e) Heathrow airport argued that the hub operates near full capacity, expansion is essential to keep up with demand.
f) Could generate £100 billion of benefits nationally, protect the current 114,000 local jobs and create over 70,000 new ones.
What is Cost-Benefit Analysis?
COST-BENEFIT ANALYSIS
- A process by which the financial, social and environmental costs are weighed up against the benefits of a proposal.
What factors affect Governmental regeneration policy?
FACTORS THAT AFFECT GOV. REGENERATION POLICY
- Location - Urban or Rural.
- Politics of the local area.
- External Factors: global economic recessions and booms.
- Quality of the bid to government or private finance to get investment.
- The degree of ‘Pump Priming’.
- The legacy of the past: physical/economic/social factors.
- The legacy of the past regeneration policies.
What is pump priming?
PUMP PRIMING
- The government allocating funds for regeneration expecting outside investment to help, especially needed if toxic waste needs removal.
What are the different types of Governmental Planning and targets in regeneration projects?
TYPES OF GOVERNMENT PLANNING AND TARGETS
- Planning Laws
a) Deciding how land is used.
b) To limit the negative impact of development and regeneration on the social, economic and natural environment.
c) Decisions based on National interest which override local interests.
- 2010 National Planning Policy framework has focused on stimulating economic growth.
d) More laws in rural areas e.g national parks.
e) Place Marketing - To either improve an existing place or completely change its image.
f) Planning Gain - Regulates markets whereby they allow development if there is a benefit to the local community.
g) Slow decision making may result in Planning Blight: investors are unwilling to commit until a decision is made (house prices may fall causing a downward spiral results).
h) If a developer wants to implement a scheme, they submit a proposal to the local authority, deciding whether the current local plan fits into national guidelines.
- Yet local authorities planning record is weak, so the can apply to the DCLG’s Planning Inspectorate because delays are negative for economic growth. - House Building Targets
a) Rising house prices and rising population (and immigration) leads on the pressure to build new homes.
b) Increased number of households as a result of high divorce rates.
c) Overseas investors buying up property as a safe investment (but unoccupied), which then creates a further deficit.
d) 1 million Homes are needed by 2020. - Housing affordability
a) Need for more affordable housing, lots of Social housing has been lost (2 million between 1980-1995) through the Right to Buy scheme (Conservative govs favoured a market-led), leaving a shortage on those suitable properties.
b) More expensive in urban areas due to opportunities and connections. - Permission for ‘fracking’
a) Fracking could reduce the need for imported gases so governments restrictions are being loosened.
- By 2020, the UK will be forced to import 70% of its gas.
- Need to secure energy supplies and economic prosperity.
b) Controversy due to ‘Adverse urbanisation effect on the landscape’ and conflicts with valued national park landscapes.
c) National interest in investing in this energy source with 37 million m³ of shale gas in North England alone.
d) 2011 drilling in Blackpool led to a minor earthquake and was suspended.
What is Fracking?
FRACKING
- The process of drilling down into the horizontal layers of shale deep underground and then injecting a mixture of water (Hydraulic Fracking), sand and chemicals at high pressure into the shale to fracture it and release gas trapped in the rock, which can then be brought back to the surface.
What is UK Governmental Policy on the EU free movement of Labour?
UK GOV. POLICY ON THE EU FREE MOVEMENT OF LABOUR
- The UK joined the European Single Market in 1992.
a) This allows the free movement of labour within the EU.
b) Allowed people seeking work from other member countries to enter the UK (vice versa).
c) Helped balance the UK’s ageing population through increased taxation revenue (economic growth). - EU 2004 Expansion.
a) 8 Eastern European countries joined the EU, followed by 2 more in 2007.
b) Included Poland, with 1.2 million Poles has settled in the UK (Slough/Corby).
c) Poles now are the second-largest minority group.
d) Property crime and antisocial behaviour in Corby has halved since 2006 (clear indicators of the success of this form of regeneration) as well as the setting up of Enterprises/Businesses.
What are the positives and negatives of EU free movement of Labour?
EU FREE MOVEMENT OF LABOUR
- Positives
a) Allowed more people to work and has increased the skilled workforce, and brought in a new generation of workers.
b) Eastern Europeans set up businesses and enterprises which stimulates economic growth.
c) Helped to balance the ageing population through increased taxation revenue. - Negatives
a) Racial tensions within a community can lead to prejudice as well as hate crimes or xenophobia.
b) The strain on services such as the NHS and schools, which are already under pressure from overpopulation.
c) Unskilled workforce could lead to mass unemployment which is unsustainable on the welfare state for benefits.
What is the difference between open- and closed-door policy?
OPEN DOOR POLICY
- A country encourages other countries to trade with it or invest in it, and people are free to enter it to live, work…
CLOSED DOOR POLICY
- The practise of refusing to allow people from other countries to travel in or move to your country.
What is the UK Government Policy on the Deregulation of Capital Markets?
UK GOV. POLICY ON THE DEREGULATION OF CAPITAL MARKETS
1. In 1986, Margaret Thatcher’s Conservative Government deregulated the UK’s financial sector, which enabled foreign investment in prime London real estate.
- Resulted in a new era of prosperity for the UK’s financial sector, and transformed London into a major World City.
a) Banking, finance and business equate to 30% of the UK’s GDP by 2008 (double that of 1986). - Removal of barriers stopping overseas banks/financial institutions from setting up offices (Until then, only UK banks could trade there).
a) Allows foreign companies to invest in the UK infrastructure.
b) Some banks (HSBC) have threatened to leave London for Asia, yet the government proposed a banking levy (to prevent this).
c) Deregulation coincided with electronic trading and the regeneration of Canary Wharf leading to the creation of wealth in this dockland - acting as London 2nd CBD. - The London Stock Exchange had a monopoly on all share dealings but now any bank, financial advisor or individual could trade in shares. Opened freedom for individuals to invest.
a) The industry is worth £95 billion.
b) Financial regulation is tighter than ever - making it harder for banks to make risky investments with the Service Act of 2012 and the Financial Conduct Authority (FCA).