The Economic Forces That Influenced the Historical Development of Chicago - Essay Example

Chicago s Part The economic forces that influenced the historical development of you and communities The theory of the central places is a geographical theory that seeks to explain the number, size and location of settlements in the urban system. This theory was created by the German geographer, Walter Christaller. He claimed that the settlements function as a "central place", providing services in the surrounding area. According to this theory, there is some network structure of settlements, central element of which is access to of service objects and the most rapid movement between settlements. Between points, there is a certain hierarchy, with the growth of level of which, a certain locality, rising "above", provides more and more services to points, standing "below". The theory of the central places has been criticized for unreality. Static theory, not taking into account the temporal aspect in the development of the central places was also criticized. Furthermore, the theory is well illustrated in practice, when it comes to agricultural areas, but not for industrial or post-industrial areas due to the diverse nature of the various services and the distribution of a variety of natural resources in them. Numerical studies of the evolutionary model, which are based on the ideas of Christaller showed that symmetrical distribution is unstable. Small fluctuations are enough in order to areas with a high concentration of activity appear and cause an outflow of population and reduction of activity in other zones. The theory of production location (the theory of location) studies placing of productive forces as the allocation process on the territory of objects and phenomena; it is included in the subject of the regional economy. The location theory describes the geographical placement of the economic activity; it has become an integral part of economic geography, regional economics and spatial economy. The theory examines which economic activity is located there, where and why. The theory is based on the whole accommodation on microeconomics, on the assumption that agents act in their own interests. Companies choose locations that will maximize their profits and private individuals choose the places that maximize their own utility. According to these two theories of the structure of the urban and rural, Chicago and his nearby settlements partially fit to them. Spatial changes of Chicago did not reflects the process, which were described by the theory of central place theory and Industry location and Von Thunens model to urban land. The real situation of urban and rural relationship is more complicated, than the theory describes. (Cronon, W., 1991, p.51) As a geographical entity, Illinois does not contribute to the centralization of Chicago. Rather, settlements within Illinois contribute; they interact with Chicago, and have a value for the central place structure. The structure of Chicago shows a small amount of links that cover long distances. It is somewhat surprising, considering the high density of population in that area. The results vary considerably, depending on the population density and natural features. The main settlement in the urban system, Chicago, is located near a large lake, Michigan, and river Chicago. (Cronon, W., 1991, p.23) These natural features coincide with one of the theses of the theory of the central place. However, the use of "Christaller’s urban grid" is unrealistic, because there are many historical, political and geographical factors, breaking the symmetry and strict hierarchy of distribution. In addition, symmetrical, "cellular" resettlement unstable: small change is enough to cause migration and move the areas of business activity. 2) Chicago communities and itself metropolis have developed rapidly during the first, second, third, fourth and fifth waves of the industrial revolution. For example, the first significant shift for the development of this area and its economy was the opening of the channel in 1848, linking Chicago to the east. This made it possible to expand the market and trade with the East. In this connection, the Chicago market is developing rapidly. Another important change that makes Chicago was able to adopt its position, was the construction of 10 miles of the railway, which funded the farmers and cities along its line in 1848 and already in 1850, the fastest expansion of the railway in American history occurred. (“Chicago’s History. A Timeline of Choices and Changes”, 2000, p.5-16) All railway lines led to Chicago and this fact contributed in transformation of Chicago to metropolis and its settlements in a coordinated system. Chicago’s Indian and French inhabitants had been involved in the trade even before all the necessary conditions for a major trade and industrial development were achieved and the city became the metropolis. (Cronon, W., 1991, p.53) Chicago is rightly one of the first cities took the position of marketplace. In addition, the field of education is an important achievement in Chicago. Along with well-developed transportation and Industry, Chicago as a cultural and scientific center has a great significance. Among its numerous institutions of higher education (in the Chicago metropolitan area 58 universities are located) the University of Chicago, one of the best in the US, which occupies a prominent place in the publication of scientific literature, enjoys a special reputation. It also had a positive impact on the development of the city and its economy. 3) Industry and commercial activity was centralized Chicago near transport interchanges and river port, as these conditions are extremely important for the development of industry and the distribution of goods and raw materials. The companies are located close to a transport corridor, as this condition is important for workers and customers and ensures the successful operation of enterprises. As a cheap water transport is the perfect option for transportation, manufactures are located along river and Lake Michigan, in the vicinity of the port on the river Chicago. The most popular local business, farmers, are also located near transport nodal points like railways. (Brake E., p.4) 4) The location of commercial and industrial locations influence the transportation, and location of residential communities. All these components of the metropolis are closely related to each other. The location of transportation and residential areas is directly dependent on the fact, where the commercial and industrial enterprises are situated. Thus, sleeping accommodation areas are not in proximity to industrial zones. In its turn, the transport system is well developed near the commercial and industrial areas, and connects them to the residential areas of the city. Especially organized system of transportation has become after the development of the railway and water transport. Part 2. The economic forces influencing your city and communities of focus. 1) Zone of the economic impact of Chicago is very extensive. It is the strongest in the region between Lake Michigan and the Rocky Mountains, where agriculture is dominated and there are not a lot of cities. Over half the volume of trade in Chicago occurs with a help of mail, to which mainly farmers, who live far away from major shopping centers, resorted. Chicago Industrial corridors comprise about 12 percent of the urban land. Their location coincides with the boundaries of railways, waterways, roads and main streets. For industrial distribution, this fact provides a convenient transportation, and it is possible to separate industrial distribution from the retail distribution and residential areas. Thus, retail activity usually takes place away from the large industrial areas and transportation hubs, which they use. The retail distribution occurs locally, within the city limits and close to residential areas. 2) Chicago area’s economy is based on commercial production, such as publishing and printing, finance and insurance, and the food industry as the primary sectors. For the development of a large industrial base, a major river port that provides national transportation of goods is required. The commercial production of goods and products that are distributed throughout the country includes magazines, educational materials, catalogs, specialized publications and encyclopedias. (“Chicago: Economy”, 2009) Chicago is the second largest publishing industry, after New York. The city is center place to the Federal Reserve Bank of Chicago and the Chicago Mercantile Exchange. For the successful distribution of the products of commercial production the port of Chicago, which provides a direct link the Great Lakes Region to the Atlantic Ocean is required. It carries out sea, rail and land transport, which allows to sell items in large quantities and constantly. The development of railway interchanges are more suitable for the industrial activities of Chicago area, as they allow to transport raw materials and products along the settlements near of Chicago and further to the east. It is an important vector in the direction of industrial activity of Chicago. 3) Because Chicago is part of the industrial zone, which was emerged at the beginning of the Industrial Revolution, and it is known as a region, in which the availability of resources combined with the availability of water transport, in the future it will be possible to continue using the rich natural resources of the region. In Chicago, there was a rapid development of the steel industry and also of the rich resources of fuel and raw materials, in connection with which major transportation hubs appeared. These pre-existing conditions will allow to develop industry successfully in this direction. In this case, the location of the industries will depend on the location of the natural resources. 4) Because Chicago is considered as the city of progress, it is possible to assume that it will develop in positive way, and as Chicago is metropolis with developed structures and the economy, and the economy will improve and evolve, making the city even more powerful. Chicago is a major transportation hub in North America and it undoubtedly will occupy this position in the future. Chicago is also a very large knot of highways and major center of the US domestic airlines. Exceptional transport position of Chicago made it the center of trade and the main market of a large agricultural area. Trade in agricultural products and their processing remain relevant and till now. Chicago grain market is one of the largest in the world. Chicago is also a major center of meatpacking industry and agricultural machinery, which has not ceased to develop. Chicago is also an important financial center, in which operates one of the most influential groups of financial-monopolistic capital of the United States. All these types of industry and manufacturing have potential and can evolve in the future. In this case, their position will depend on the required resources and transport interchange. Considering that the Chicago carries through the communication between east and west by the powerful railway network and it is the gateway to the Great West. (Brake E., p.2) Over time the regions economy will continue to grow, by transporting goods of its developed industry and agriculture. Especially big breakthrough in economic development is expected in the implementation of green technologies, which have been already developed in Chicago actively. 5) Currently, many countries are increasingly focusing on green technologies in the field of industry, construction, agriculture, production of environmentally friendly materials, fundamentally new services aimed at improving the quality of life support. It is possible that soon this tendency will be introduced in the production of Chicago and its region that will affect the priorities at Chicago’s market. Such changes will have impact on industry, associated with the fuel, because green technologies are aimed on sustainable development that meets the needs of modern society and contribute to the emergence of the problems that may face future generations that is, associated with the depletion of the resources that nature provides. Thus, such an industry in this area will be discontinued. However, some alternatives, which are required for the creation and use of green technology, will appear. Furthermore, the emergence of such modern technologies will have a significant effect on agriculture, which is an important part of the economy of Chicago communities. In this case, for the agricultural sphere, the removal of subsidies that pay farmers is possible. This policy is artificially kept low food prices. At the same time, the approach to agricultural products change. The purpose will be the cultivation and distribution of organic food, grown without pesticides and other harmful chemicals and additives. The same applies to meat. It will enable to agriculture reach a new level. Therefore, the farmers will not have to spend money on chemical substances, however, and the amount of crop in this case can be somewhat lower. In any case, these new technologies will affect positively the economic market of Chicago, as this tendency is worldwide and is actual sufficiently. However, it is worth considering that the most important place in the industry of Chicago now takes heavy industry: steel, a variety of mechanical engineering, chemical industry. Especially it is focused on the development of electrical engineering, in the first place the production of communications equipment, various electronic equipment, including radios and televisions. Oil refining is quite significant, which is the raw material for oil, which is produced in the state of Illinois (where Chicago is located), or it comes from the states of South-West Center. Thus, with introduction of new green technologies, the industry of Chicago will fall under the significant changes; plants will need to be rebuilt. However, given the strong history of producing of Chicago, its settlements and its funding, it can be assumed that the metropolis will be able to change the concept and its industry and to break new ground. There are many projects for the metropolises and Chicago can quite successfully become one of them, without losing its power. References “Chicago: Economy”. (2009). City-Data.com. Retrieved November 25, 2015 from http://www.city-data.com/us-cities/The-Midwest/Chicago-Economy.html “Chicago’s History. A Timeline of Choices and Changes”. (2000). DePaul University Center for Urban Education. Retrieved November 25, 2015 from http://teacher.depaul.edu/Documents/Chicago%20History%20Timeline%2018 00-2008%20updated%204-12-12.pdf Brake, E. Annihilating Space: A Review of William Cronon’s Nature’s Metropolis. Retrieved November 25, 2015 from http://people.duke.edu/~ekb6/Review,%20Natures%20Metropolis-3.pdf Cronon, W. (1991). Natures metropolis: Chicago and the Great West. New York : W.W. Norton, 23-54. Read More