T TT T TR R RI I I T Day 2 Overall Theme T ra ining fo r - - PowerPoint PPT Presentation

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Day 2 – Overall Theme

• Location, Location, Location
• What is a good location?

– Good location is relative and is created by the interaction of people, place and economy/economics

• Can locations be created?

– Yes, but only if the pre-conditions are there - also influenced by people, place and economy. No, if these do not exist or cannot be created - this happens a lot

• If so, how do we 'make' a good location?

– If the pre-conditions exist, good location can be created by reinforcing the elements such as better linkages, better circulation of income, income mix, greater thresholds and improved catchments through agglomeration of activity and points of accessibility (nodes). Physical attributes both man-made and natural also create 'locations‘ or 'places'.

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Elements of location

• People in the location influence

its potentials

– Number of people – Travel and movement patterns – Organisation – Cultural and social interests and influences

• Geographic / Place / Scales

– Global – Regional – Local – Site specific

• Physical features

– Man-made

• Buildings
• Roads
• Trees / landscaping
• etc

– Natural

• Mountains
• Rivers
• Views
• etc
• Economic Dimensions

– Consumption and production patterns – Income levels – Skills and income producing abilities – Features of economic location are relative to (e.g.)

• Industry
• Recreation
• Residential
• Agriculture
• Etc

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Threshold, range and catchment

• Threshold

– Number of people that will sustain an economic activity given their income and purchasing habits/patterns

• Range

– The maximum distance people will travel / are prepared to travel to purchase a good or service.

• Catchment

– The actual number of people purchasing goods and/or services from an outlet - usually located between the threshold (minimum) and range (maximum)

• Order of good or service

– The pulling power of a good or service is determined by how far people are prepared to travel in order to purchase it. The further they are prepared to travel - the greater the range and (generally) higher the order of the good or service – Generally, people will find the nearest / closest place to buy bread or milk. This is a lower

• rder good with a low range. Generally, people are prepared to travel greater distances to see

a specialist doctor or buy expensive household items. These are higher order goods and services.

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Range, Threshold and catchment - examples

• Bread is considered a lower order good. People are not prepared to travel

for miles just to buy bread. The catchment area for someone selling bread is low. On the other hand people buy bread frequently (daily) and so a fairly low number of people can sustain someone selling bread or fruit. The threshold to sustain someone selling bread or fruit is low.

• A Fridge is considered a medium order good. People will be prepared to

travel to a known outlet in order to make this expensive purchase. The range area for someone selling fridges is higher than for bread. On the

• ther hand, people may only buy a fridge a few times in their lifetimes. The

threshold to sustain someone selling fridges is much higher than for bread. Fridges are higher order goods

• People in business can increase their catchment by good marketing, by

becoming known as the 'best' or through personal connections / services. If you really like the bread of a certain shop, you might be prepared to take a slightly longer route home in order to buy bread from that shop. If you know the person selling fridges you might travel further to that shop because you'll get a better deal.

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Central Place Theory

• CPT - offers good concepts - but many factors impact on range, threshold

and catchment to produce a variety of different settlement orders. It is these factors which, when understood, enable the planner and economist to intervene to improve the locational advantages of an area. Examples include:

– Average transportation costs per purchase are lowered by multipurpose shopping trips – The consumer might find it desirable to shop at multiple locations on a single trip – Not only population but demographic characteristics, socioeconomic structure, potential expenditures, and shopping behaviour are the most important factors to explain spatial clustering – Although a major tenet of central place theory was that producers tend to locate as far as possible from competitors, firms may recognise the advantages of agglomeration and the benefit of centrality that result from adjacent location (car sales being an obvious example) – The development of central places depends on factors such as transport costs, expenditure shares for relevant goods and the cost characteristics of stores – Retail business interdependencies exist and minimum demand threshold values for various retail sectors are sensitive to the presence or absence of other types

• f firms

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Day 2 Physical intervention framework at the macro (city and ‘regional’) scale Matthew Cullinan 30 October 2007

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CONTENT

1. FRAMING THE ISSUE

– Condition of spatial marginalisation – Apartheid and spatial/economic marginalisation – Recent policy directions in SA

2. MACRO SCALE FRAME OF REFENCE TO INFORM PHYSICAL INTERVENTION IN TOWNSHIPS

– “Planning context”

– Macro-scale locational attributes

– “Planning idea”

– Investment route – Corridor

– “Planning idea” and “context” as investment decision making informants

3. QUALIFICATIONS

– Planning and physical intervention – Considering spatial scale – Considering time and urban development processes – Type of investment targets

PLANNING FRAMEWORK UNDERPINNING MACRO SCALE PHYSICAL INTERVENTION IN TOWNSHIPS

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• 1. FRAMING THE ISSUE

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Inequality (prosperity/stagnation/decline) between areas is feature of all regions and settlements, but despite the pull of prosperity, many people continue to live in economically marginalised areas - how does public policy respond to this dichotomy?

Common condition of spatial marginalisation

• Spatial polarisation and divergent impact of

economic forces is expressed at a range of spatial scales from global to local area

• Developmental thinking and practice over many

decades has been concerned with how to ensure more equitable levels of development between core and periphery

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Apartheid has led to distortions in settlement patterns at the regional and settlement scale. Areas with strong concentrations of poverty are in many cases trapped in space away from areas of economic opportunity

• Economic activity is concentrated in the

metropolitan areas and main towns

Apartheid and spatial / economic marginalisation in South Africa

Blacks spatially marginalised by apartheid policies and poor location and lack of investment led to creation of dysfunctional settlement systems

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The post 1994 redistributive focus of public policy has been supplemented by an increased focus on economic growth and development. A particular emphasis has been placed the public sector’s role in providing a lever to private investment in townships as evidenced by the URP and ISRDP.

Recent policy directions in SA: township development

• Basic service provision

and housing has and continues to be a strong focus in many township areas

• The ISRDP and URP aim

to conduct a sustained campaign against rural and urban poverty and underdevelopment

• Increasingly a focus is being placed on

economic growth and development in township areas

• Levering private investment as part of

township CBD development has been a planning focus

• Eight township nodes have

been identified under the URP

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• 2. MACRO SCALE FRAME OF

REFENCE TO INFORM PHYSICAL INTERVENTION IN TOWNSHIPS

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Not all townships have the same locational attributes, but vary widely in terms of socio-economic profile, accessibility and access to markets, infrastructure provision, natural resources and human

• capital. These factors impact on the prospects for economic growth and development.

PLANNING CONTEXT: MACRO SCALE LOCATIONAL ATTRIBUTES

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Location and levels of physical accessibility impact on the potential for economic

• development. Townships that are well located in terms of resource flows and

concentrations are likely to have stronger possibility to sustain economic growth and development

• Alexandra is an

example of a township that is well located at a macro level – it is in the midst of the country’s economic core and close to areas that are booming.

PLANNING CONTEXT: MACRO SCALE LOCATIONAL ATTRIBUTES

“Core township”

Source: ARP, ‘Physical Development Framework’, 2002

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Townships that are displaced from flows and concentrations of resources often reflect a challenge in terms of sustaining economic growth and development. Accessibility however is only one of the factors to consider. Other local potentials can contribute to local economic development.

PLANNING CONTEXT: MACRO SCALE LOCATIONAL ATTRIBUTES

“urban fringe township”

• Khayelitsha is an example of

a fringe township that relies mainly on local thresholds for growth and is characterised by its lack of proximity from places of economic growth.

• Botshabelo is an example of

a displaced township that is located at a moderate-long distance from a centre of economic growth.

“displaced township”

50km+

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It is critical to gain a multi-dimensional, multi-scale understanding of particular township context to assist in identifying potentials, but important questions exist.

PLANNING CONTEXT: MACRO SCALE LOCATIONAL ATTRIBUTES

• Can the public sector alter the preconditions for economic growth and investment in particular

townships?

• What type of interventions could assist in unlocking economic potential?
• What should inform public investment in social infrastructure occur?
• At the ‘macro scale,’ planning can assist in providing a framework for thinking about public

investment in space that is not purely reactive, but seeks to proactively influence development outcomes.

‘Macro scale,’ = loose concept referring to broad spatial scale - regional settlement systems and/or settlement wide context (e.g. metropolitan region)

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Promoting a system of investment routes can assist in closing down space improving access to services and opportunities.

PLANNING IDEA: REGIONAL INVESTMENT ROUTE

• major routes – order 1
• Intermediate routes
• Order 2
• Low order routes
• Order 3
• Accessibility to all levels of service

provision is promoted over time

• Space is closed down

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Idea around hierarchical investment route differentiates places and their order and sets up a regional spatial logic to facility provision

PLANNING IDEA: REGIONAL INVESTMENT ROUTE

The structure orders the level of investment The structure promotes efficiency – exposure of facilities along route The structure promotes access – access on foot and where not possible, system forms basis for logical public transport system

The system suggests a relationship between line and point services. Higher order facilities seek to locate at points of high accessibility and vice versa. Different social services seek relationships with other facilities (synergies).

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Application of the idea to a region forms the basis for community facility provision

PLANNING IDEA: REGIONAL INVESTMENT ROUTE

Idea around community facility provision and order:

• A

hierarchy

• f

investment routes is established which provide varying levels

• f

accessibility to settlements in the area.

• Services are focused along the

main routes at nodal points.

• Higher
• rder

services are clustered at points of highest accessibility.

• Mobile services are the most

efficient way

• f

providing access to community facilities in the densely settled rural area.

• In so doing, space is closed

down and services are available at accessible places and respond to need.

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Application of the idea to a region with understanding of context can unlock latent potential

PLANNING IDEA: REGIONAL INVESTMENT ROUTE

Idea around catalytic physical investment to release latent potential:

• The significant potential of the rural

area is catalysed through a range of interventions including the tarring a road connection.

• The produce which could not be

transported without damaging on the dirt road can now access local markets.

• With

the reinvigorated rural hinterland, the fortunes of the local town are revived as it shifts economic focus to agro-processing activity and performing a local service centre for farmers.

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Integrating ‘power of the line’ at the settlement level can be a powerful restructuring tool . Routes with high levels of access and continuity become a focus for activity and economic development.

PLANNING IDEA: CORRIDOR

• Due to continuity and high levels of access along

these routes, activities respond to varying levels of access by choosing points which suit their requirements - diversity

• Public transport rhythms combines with the

rhythms of accessibility are key elements – hierarchical system

• Is not a reactive concept but involves creating new

patterns of access and opportunity

Positive aspects

• Structure orders level of investment
• Structure exposes opportunity rather

than internalising it, relying on local thresholds

• Structure promotes access
• Can unlock latent potentials

Structural elements constraining activity corridor development

• Mobility / limited access route

standards

• Market trends

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The NSDP provides a point of departure for public spending

“PLANNING IDEA” AND “CONTEXT” AS INVESTMENT DECISION MAKING INFORMANTS

Overview: NSDP Normative Principles 1. Economic growth/potential is a prerequisite for the achievement of other policy objectives 2. Government spending on fixed investment should be focused on places of economic growth and potential. 3. Focus on people, not places in order to address past and current social inequalities. Places of high levels of poverty AND development potential should receive fixed capital investment. 4. Social Capital: In areas of low development potential and high levels of poverty, the development focus should be on providing social transfers, human resource development and labour market intelligence in order to capacitate people to access economic opportunities. 5. Future settlement and economic development opportunities should be channelled into activity corridors and nodes adjoining or linked to main growth centres. This will play a role in overcoming spatial distortions of apartheid.

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A combination of understanding planning context and development of realistic planning idea assist to identify areas of potential for public capital investment. Areas of low potential should not be ignored but are likely to be a focus for investment in social capital

“PLANNING IDEA” AND “CONTEXT” AS INVESTMENT DECISION MAKING INFORMANTS

What should we invest in & where?

The aim is to be strategic in our spending: 1. Fixed capital investment in areas

• f high growth potential

2. Social capital investment in areas

• f low growth potential

3. Social capital may require capital infrastructure (e.g. education programmes need a places to

• ccur) - the NSDP requires that

we focus infrastructure investment on appropriate levels

• f services …

Application to the Cape Winelands

• Capital and Infrastructure Focus Area (red) –

high potential

• Social Capital Focus Area (yellow) – limited or

low potential

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• 3. QUALIFICATIONS

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Physical intervention may be a necessary though not sufficient precondition to private investment

• Physical conditions are but one of the factors influencing

private lead investment

• Market forces are difficult to sway
• Planning expertise should be supplemented
• Investment in social capital critical (although physical

infrastructure politically popular)

• Need to consider operations costs – lifecycle
• Interventions should result in tangible benefits not rest at level
• f abstract

LIMITS TO PLANNING AND PHYSICAL INTERVENTION

Source: www.ufh.ac.za

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Appropriate intervention strategies consider informants and impacts at a variety of spatial

• scales. Furthermore, time needs to inform planning and investment strategies

CONSIDERING SPATIAL SCALE AND TIME

Spatial scale

• Need for micro scale planning
• Macro scale intervention should bear in mind contextual

realities (be realistic in terms of application at appropriate scale) Time

• Urban development processes take time (e.g. development
• f activity corridor over many decades) – long term goals,

short term interventions

• Bureaucratic processes (e.g. time taken for EIA/Rezoning :

need to take into account in planning/funding arrangements

• Varying circumstances = varying public investment

approach: incremental v.s. “big bang”

Source: City of Cape Town

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The nature of the investment target is important to consider (e.g. formal external investment vs local informal business development, combinations), as they will have varying developmental outcomes. May result in different scale, location and nature of public intervention. Formal commercial in township CBDs can have positive

• utcomes:
• Proximity to retail opportunities for residents
• Confidence in the areas, increasing surrounding property values

(household assets)

TYPE OF INVESTMENT TARGETS

Source: www.joburg.org.za

But:

• Local informal business may suffer
• Does this address the concerns of leakage
• Employment benefits?

Source: city of cape town

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Presenter details

• Name : Matthew Cullinan
• Designation : MCA
• Contact details : 021 685 1150

matt@mcaplan.co.za