Growth of Asian Cities - Essay Example

?Running Head: Growth of Asian Cities Growth of Asian Cities [Institute’s Growth of Asian Cities Introduction Asia, the largestcontinent in terms of area, population and GDP (PPP), is home to over 4 billion people of the world. The 48 countries which are a part of Asia consist of hundreds of cities, some of which are amongst the most advanced, highly populated, dense, economically progressive and powerful cities in the world (Roy & Ong. 2011, pp. 79-80). Tokyo, Shanghai, Karachi, Mumbai, Seoul, Beijing, Istanbul, Moscow, Bangalore, Singapore, Jakarta, Kuwait and others are just a few examples. This paper is an attempt to document the growth of Asian cities over the past few decades in terms of their population, economic growth, social and housing structure. For the same purpose, the paper will use examples of Mumbai, Seoul, Hong Kong, Tokyo and Singapore as the big Asian cities. Mumbai With a population of over 20 million, Mumbai is the most populous city of India and the fourth largest city in the world in terms of population. The fact that Mumbai lies on the coast and has a deep natural harbour makes it the hub of trade, thus, allowing the city to account for over 70 percent of maritime trade in India (Huang & Bocchi, 2009, p. 52). Currently, Mumbai is classified as an alpha city, global city or world centre, which refers to the fact that the city plays an important role in the global economic city network. More importantly, the city contributes almost 6 percent to the overall GDP of India (Ni, 2012, pp. 347-349). Even during the colonial period, European traders and colonisers paid immense attention to the development and growth of this sea port which was situated at a strategic location, allowing the shortest route for trade to Europe and other parts of the world. Considering the same, many industries, especially textile industries, started establishing in the city and since the independence of India; it has became an industrial hub generating almost 25 percent of the total industrial output (Robinson & Zahorchak, 2009, pp. 288-289). However, since the 1980s, the city has also diversified as the primary financial centre of India, with the presence of Reserve Bank of India, Bombay Stock Exchange, Securities and Exchange Board of India, National Stock Exchange of India and others (Wong & Rigg, 2011, p. 92). During the early 1990s, when India started its transition towards an open and free market economy from a centrally planned socialist economy, quite understandably, following the example of all developed economies, India felt the need to develop its financial system in order to ensure reallocation of the vast capital in the Indian economy to the newly privatised businesses and foreign direct investment (Yusuf & Nabeshima, 2006, p. 460; Wong & Rigg, 2011, p. 92). Mumbai, for obvious reasons, started growing as the financial capital of the country as well. Several large Indian and multinational companies also started setting up their headquarters in this quickly growing metropolitan city. These included the largest corporations in India, such as Tata Group, Reliance Group, Aditya Birla Group, Hindustan Petroleum, ICICI Bank and others. Mumbai’s economic importance and growth was also amplified with the fact that during the early 1970s, it became the home to Indian film industry, Bollywood. Today, large number of TV shows, drama films and other movies are produced and filmed in Mumbai, thus, making it the entertainment capital of India as well (McKinnon, 2011, pp. 105-106). Tokyo The history of Tokyo, as a modern city goes back to more than 400 years, when it was named as Edo. Throughout the history, Tokyo had always remained a symbol of modernisation and development as it was amongst the first cities in Japan to create modern infrastructure, clothing styles, railways, airports and so on (Wong & Rigg, 2011, p. 92). During the Second World War, the city was the focal point of heavy bombing which destroyed almost the entire infrastructure and people had to start from scratch to build what is now known as the largest metropolitan economy of the world accounting for almost 1479 billion US dollars of GDP of the Japanese economy. Much of the development that the city witnessed in the 1960s and subsequent years was a result of rapid industrialisation and technological innovations (Roy & Ong. 2011, pp. 79-80). When the businesses in the US and Western world were facing legislations concerning pollution and had to abide by various requirements to reduce their waste, thus, increasing their costs, businesses in Japan thrived in the absence of such environmental concerns. The fact that the 1964 Olympic Games were held in Tokyo also forced the administration to revamp city’s infrastructure having initiated a journey for better lifestyle and prosperity of its residents (Huang & Bocchi, 2009, p. 52). The city underwent a period of boom between 1986 and 1991 during the Japanese Asset price bubble. During the “lost decade”, Tokyo’s growth slowed significantly. The Asian financial crisis also contributed in putting a cap on the growth. However, in the next decade, Tokyo once again witnessed quick economic growth, which has now the city as the capital of cutting edge technology, information, modern infrastructure, knowledge, research, luxurious lifestyle etc. (Yusuf & Nabeshima, 2006, p. 460). Even today, Tokyo is the most expensive city in the world. The Stock exchange of Tokyo is the largest in Japan and the third largest in the world in terms of market capitalization. According to the statistics of the year 2009, headquarters of 51 of the Fortune 500 companies are set up in Tokyo. After the World War II, the Japanese government ensured that the people could save the most of their income, thus, creating a large pool of savings for the investment in Japan. This allowed Tokyo to become a financial centre and attracted foreign direct investment from all parts of the world (Knowles & Harper, 2010, p, 98). Seoul Seoul has attracted settlers for the past 2000 years, primarily because of its climate and river. However, today, the country is the centre of world’s attraction because it is truly a global city with the most modern infrastructure, economic power, greenest landscape, commercial and financial centre, capital of South Korea and megacity, amongst many other reasons for being attractive to settle down there. Seoul generates more than 21 percent of GDP despite the fact that it occupies 0.6 percent of the total land area. Seoul is classified as a megacity, which means that the population of the city is over 10 million (Ni, 2012, pp. 347-349; Wong & Rigg, 2011, p. 92). When in the year 1945, the Japanese colonial rule ended in Korea, the population of the city was less than 1 million and 0.2 million out of it were Japanese soldiers. Seoul is home to more than 47 percent of the total population of the country and the same is the result of both immigration to the city from other Asian cities and urbanization. Seoul is amongst those cities in Asia, which have achieved spectacular growth over the past few decades, even though it is not a port city (Roy & Ong. 2011, pp. 79-80). During the 1970s, illegal houses became serious problems for the city’s administration that accounted for almost 36 percent of all houses. Since then much attention was given towards converting illegal slumps into four or five floored citizen apartments. The city continues to attract people from South Korea and other parts of the world that has been increasing the burden on the city’s limited resources which have forced the government to consider the proposal of shifting the capital to some other city (Knowles & Harper, 2010, p, 98; Yuen & Yeh, 2011, pp. 309). Seoul has been able to grow so much during the past decades is the result of the fact that many large businesses, banks and MNCs have chosen the same as its headquarters. LG, Samsung, Hyundai, Kia, SK and others are some of these businesses. In fact, there is no a single international bank in the world which does not enjoy its presence in Seoul. Another prime driver of its growth is rooted in the preference of consumerism amongst its shoppers who somehow have strong preference for materialistic lifestyle. This has contributed to rise of many businesses and shopping centres in the city that have attracted foreign investments as well (Robinson & Zahorchak, 2009, pp. 288-289). Seoul has a good reputation for hosting a variety of international sporting events, conferences, seminars, dialogues and so on. These include G-20 Summit for the year 2010, FIFA World Cup 2002, 1998 Summer Olympics, 1998 Summer Paralympics Games, 1986 Asian Games and other sporting events. The fact that the city provides wireless internet services within all of its transportation routes, subways and buses is the manifestation of its technological advancement (Ni, 2012, pp. 347-349). Hong Kong Hong Kong remained under British colonial rule for over 150 years until the year 1997. Therefore, when the colonizers left, Hong Kong already had a lot in terms of economic policies, infrastructure, health, educational and legal system, roads, technology etc. to operate the city. Much of the population growth and development which the city has enjoyed can be directly attributed to its economic policies which have attracted investors from all parts of the world (Kagda & Koh, 2008, p. 69). Government has limited its intervention in the economy, thus, making the economy a safe haven for businesses who want to escape political risks and high taxations in other part of the world. There have been virtually no export or import controls and even China has allowed Hong Kong to operate freely under the “One country, two systems” policy. Nevertheless, the government in Hong Kong owns all the land in the city and the revenue on its sales and lease allows the city to finance its expenditures on social welfare and other programs (Huang & Bocchi, 2009, p. 52). Hong Kong’s economy has been booming for the past few decades because it is the freest economy according to the Index of Economic Freedom. Limited government intervention, no tax on industries and commerce, strong legal system, low corruption, low public debt, abundant supply of labour from neighbouring China, ample foreign reserves, strong financial and banking system etc. are amongst the most important reasons for the spectacular growth that the city has enjoyed over the past few decades. Hong Kong’s economic prosperity and direct foreign investment have also allowed the life expectancy of its people to remain amongst the highest in the world. As mentioned earlier, government’s control of the land and the revenues generated by the same provide the administration with ample finances to spend for public welfare programs (Kagda & Koh, 2008, p. 69). Reports indicate that 36 of the world’s 100 tallest buildings in the world are located in Hong Kong. Furthermore, the city has the biggest number of buildings taller than 35 m than any other city in the world. Hong Kong also claims more than 7650 skyscrapers. Hong Kong ranks at the top of the list of places where the majority of people lives or works above the 14th floor. This is the result of lack of space in the city, which has contributed in the rise of taller residential areas and office buildings than anywhere else in the world (Yuen & Yeh, 2011, pp. 309). The transportation of the city is also highly developed and the same emerges from the need to limit the private ownership or use of cars in the city where there is lack of space. Almost 90 percent of people in Hong Kong travel through public transport that is characterized as one of the most modern mass transit systems. The Hong Kong Stock Exchange is currently the sixth largest stock exchange in the world in terms of market capitalization. The Hong Kong dollar is the sixth most traded currency in the world (Ni, 2012, pp. 347-349). Nevertheless, the non-interventionist economic policy of the government has allowed income inequality to increase greatly in the city, something that is now becoming a concern for the administration (Schwela et al., 2006, p. 529). Singapore Singapore is a city-state and the second most densely populated country in the world. Remarked as an “Asian Tiger” during the 1960s for its remarkable growth rates, Singapore achieved rapid economic development during the second half of the 20th century primarily because of its industrial policies and focus on exports to rich developed economies. After Hong Kong, Singapore is the freest economy with the most business friendly policies, non-interventionist policies of the government and one of the lowest tariffs, fees and taxes, which has allowed the city to gain its reputation as the fourth leading financial centre in the world (Schwela et al., 2006, p. 529). More importantly, due to the fact that Singapore is an island the administration decided to make the country an entrepot that contributed significantly to the attraction of direct foreign investment and economic growth of the country. Surprisingly enough, the country has not allowed the unemployment to exceed from the level of 4 percent during the past decade. When unemployment rates in other Asian countries were peaking in double figures, Singapore’s highest unemployment rate reached at 3 percent that was once decreased to 1.1 percent in the year 2011 (Ni, 2012, pp. 347-349). Like in the case of Hong Kong, Singaporean administration is concerned with limiting the number of private ownership of vehicles, since that causes traffic jams and unbearable load on the streets. Owners have to pay twice as much in taxes or fees on the price of the cars, thus, discouraging them in purchase of cars. Most people prefer to travel by foot, buses or public transport. In order to encourage the same, the government has also created a modern mass transit system (McKinnon, 2011, pp. 105-106). Since the economy also depends heavily on the hospitality and tourism industry, the administration has also focused on building the city’s infrastructure and tourist spots. The country has a population of over 5.18 million people out of which only 65 percent are citizens and the rest are being classified as permanent residents or temporary workers. In order to combat the problem of decreasing population growth rate, Singaporean administration welcomes foreign workers and immigrants in the country. This explains why the country has a workforce 40 percent of which consist of foreigners (Ni, 2012, pp. 347-349). References Huang, Y., & Bocchi, A. M. 2009. Reshaping Economic Geography in East Asia. World Bank Publications. Kagda, F., & Koh, M. 2008. Hong Kong. Marshall Cavendish. Knowles, C., & Harper, D. A. 2010. Hong Kong: Migrant Lives, Landscapes, and Journeys. University of Chicago Press. McKinnon, M. 2011. Asian Cities: Globalization, Urbanization, and Nation-Building. Nias Press. Ni, P. 2012. The Global Urban Competitiveness Report 2011. Edward Elgar Publishing. Robinson, M., & Zahorchak, J. 2009. Seoul. Lonely Planet. Roy, A., & Ong. 2011. Worlding Cities: Asian Experiments and the Art of Being Global. John Wiley & Sons. Schwela, D., Haq, G., & Huizenga, C. 2006. Urban air pollution in Asian cities: status, challenges, and management. Earthscan. Wong, T., & Rigg, J. 2011. Asian Cities, Migrant Labor and Contested Spaces. Taylor & Francis. Yuen, B., & Yeh, A. G. O. 2011. High-Rise Building Living in Asian Cities. Springer. Yusuf, S., & Nabeshima, K. 2006. Postindustrial East Asian Cities: Innovation for Growth. World Bank Publications. Read More