The Role of Urban Planning in Economic Development

In the context of economics, city design is equally crucial. One tool for allocating resources is urban planning. Planning serves ecological, economic, and social functions in society as a tool for allocating resources. Planning should produce results that support economy, convenience, health and safety, aesthetics, and, most importantly, livability. Compact urban geometries are therefore significantly more conducive to productivity and well-being.

One of the fundamental needs of citizens is housing, which is provided by residential zones. Additionally, they increase a community's appeal to new groups. One of the main economic impacts of residential growth is the creation of projects for planners, designers, attorneys, business owners, etc. The creation of local jobs, taxes, and income from residents are all examples of residential areas' indirect economic effects. Welfare also depends on energy, water, garbage, and other utility provisions, along with the production of utility commodities. 

An economy depends on transportation because it allows individuals to move information and skills as well as tangible goods like manufactured goods and natural resources. Among the economic advantages of effective transportation infrastructure are increased accessibility to markets, jobs, and investors. Compact cities enable the development of more reasonably priced transportation systems and are typically better suited for short excursions

Commercial retail and services have the biggest impact on GDP and employment. For example, retail and services depend on inputs from a wide range of industries, including marketing, finance, real estate, and transportation. Open space, municipal amenities, and social facilities all appreciate in value over time, in contrast to many other urban developments. Additionally, they draw in businesses and raise the value of land and real estate. Of course, these facilities also generate a lot of jobs. 

Office development has a significant economic impact. Business prospects for cleaning services, insurance plans, and security firms are among the indirect effects of office construction. Long-term economic benefits are provided by the workplace, which creates jobs in the area and brings in money for taxes.

Despite the fact that urban objects clearly have economic benefits. Establishing a clear connection between urban concentration and economic development is challenging. The general economic performance of the country does not always mirror the economic development of specific cities. And, urbanization has several negative effects, including the rise of slums and other forms of pollution in the air, water, etc. Thus, there is no denying urban planning's has some adverse impacts. However, even though it doesn't actually alter a country's overall economic status, it undoubtedly promotes urban economic growth in the long run generating better employment and higher standards of living. 

Bibliography

Baffour Awuah, K. G. (2021). Sub-Saharan Africa urban centres and urban planning. Economic Incentives in Sub-Saharan African Urban Planning, 1–11. https://doi.org/10.4324/9781003098515-1 

Urban Planning and Economic Development | Planning Tank