Научная статья на тему 'Growing points of Southern California'

Growing points of Southern California Текст научной статьи по специальности «Экономика и бизнес»

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Ключевые слова
ПОЛIЦЕНТРИЗМ / АГЛОМЕРАЦіЯ / ХАБ / ПіВДЕННА КАЛіФОРНіЯ / УРБАНіЗАЦіЯ / МЕГА-РЕГіОН / POLYCENTRICITY / CONURBATION / HUB / SOUTHERN CALIFORNIA / URBANIZATION / MEGA-REGION / ПОЛИЦЕНТРИЗМ / АГЛОМЕРАЦИИ / ЮЖНАЯ КАЛИФОРНИЯ / УРБАНИЗАЦИЯ / МЕГА-РЕГИОН

Аннотация научной статьи по экономике и бизнесу, автор научной работы — Kuznetsova D.V.

The aim of this paper is to discuss and show up the main growing points of regional economic system of Southern California. The paper intends to bring together the aimed and contemporary implemented vectors of policy. On the economic side the importance of selected type of area development has played big role in public recognition. Eventually, the established system of polycentricity allows to involve and develop an unlimited number of industries, sectors and actors. It gives the opportunity and impetus for continuous and flexible modeling and fine tuning of sustainable and successful life sustenance. Extensively built cooperation relationships and promising sectors allows California to be and remain a leading regional and global hub. Discussing these processes and the related policy responses might also be interesting for many regions in Central and Eastern Europe, as similar developments might be expected in the future there as well.

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Текст научной работы на тему «Growing points of Southern California»

UDC 330.34 (73+722)

D. V. Kuznetsova,

Institute of Industrial Economics NAS of Ukraine, Kiev

GROWING POINTS OF SOUTHERN CALIFORNIA

Problem definition in general and its connection with important scientific and practical tasks.

Modern system of international relations in its essence reflects to the transition from bipolarity to polycen-trism. The variety of typologies of international systems is related to the determination of the number of great powers or superpowers, and distribution of power (influence) between them. It coexists and develops three trends simultaneously: 1) directed bipolar-confrontational model, in which socialist China may take place of the former USSR; 2) leading to the consolidation of single-pole-authoritarian model, when the world order is verified by USA based on its national interests; 3) focused on the formation of a multipolar or polycentric world, inter-state relations of which should be governed by the spirit and letter of international law. The main role in which is played by the balance of interests of the leading countries - centers of political, economic, cultural and military influence. The latest model seems to be the most organic and beneficent to mankind that transformed the foundations of long-term and prosperous life [1].

Analysis of recent researches and publications.

The following definitions are the basis of most definitions of systems — bipolar, multipolar, balanced and imperial. If the new countries - challengers joined two dominant states of the bipolar system comparable to them by the power, the system is transformed into a polycentric one. To the same equilibrium of the system belongs to (or system of balance of power), where several states retain approximately equal influence on the course of international events. And only in the international system of the imperial type the only power is dominated that surpasses far all other countries of its combined power. On the basis of this approach M. Kaplan built his typology of international systems, theoretically possible in the modern world: the system has a single veto, the system of balance of power, flexible or rigid bipolar system, the universal and hierarchical system, where only the last two are not associated with polycentricity [2]. Wide survey of basic features of polycentricity of South California could be found in Suarez-Villa's research [3].

Objective definition is to find out the main criteria of polycentric area that could successfully be used in different continent.

The main material of the study. Historically, polycentrism is to replace the bipolar world order models related to a military-political and ideological confrontation between East — West. Approval of polycen-

tricity is a sustainable tendency to increase the diversity of regional interests in the modern world [4]. The multipolar structure of the world is formed by many geopolitical factors. Geopolitical poles, centers of power, core of which is one or few countries developing the integration associations of economic nature around (e.g., the European Union). The system of regional associations is formed on the basis of ethnocivi-lizational and cultural generality.

It has been expanding the range of geopolitical dominance criteria in the modern world. For example, the military capacity is no longer a fixture of the global power center or main indicator of superpower status. A multipolar world order is characterized by several features. First, there are no clear and confrontational borders between the poles, while the "centers of gravity" (USA, China, Germany, Japan) are clearly marked inside the modern world poles. Secondly, in terms of polycentrism an increasing number of international parties used to be who claim to primacy, their individual interests are multiplying and, therefore, the number of reasons of conflicts on a smaller scale increases, but include a wide range of issues. Thirdly, the opportunities for new geopolitical combinations will appear with the increasing number of centers of power. All of these processes are directly or indirectly related to civiliza-tional development of area, infrastructure of cities and suburbs, increasing role of old and appearing of new growth points in global scale.

Urbanization explosion of XIX-XX centuries and mega-urbanization (i.e. the population growth of mega cities in the total population of the world) in the field of political development are correlated with the widespread proliferation of mature of state system [4]. Urbanization is not merely a modern phenomenon, but a rapid and historic transformation of human social roots on a global scale, whereby predominantly rural culture is being rapidly replaced by predominantly urban culture. Therefore It is proposed to consider the U.S. as the world's most ethnically diverse and multicultural nations country, namely, California, that is one of the most attractive regions globally to research of the most different spheres of activity.

The Southern California mega-region encompasses over 53,000 square miles - roughly 1.5% of the land area of the United States. Although comparable to the size of the states of Arkansas or Georgia, its effective size, given that nearly 2/3 of the region's lands are government-owned and thus off-limits to development, is much smaller, around the physical size of Massachu-

setts with three or four times their population. However, the mega-region's more dense development pattern results in a population that represents over seven per-

cent of the US population, demonstrating not only its significance in terms of size, but also its relative impact in so small an area [6].

Comparison of 2013 GDPs

Country GDP Co u ti tv GDP

1 - United States $16.80 trillion 9 - Russian Federation $2.1 trillion

2 - China $9.2 trillion 10- Italy $2.1 trillion

3 - Japan $4.9 trillion 11 - India $1.9 trillion

4 - Germany $3.6 trillion 12 - Canada $1.8 trillion

5 - France $2.7 trillion 13 - Australia $1.5 trillion

6 - United Kingdom $2.5 trillion 14 - Spain $1.3 trillion

7 - Brazil $2.2 trillion 15 - Mexico $1.2 trillion

8-California* $2.2 trillion

Source: Department of Finance"

Fig. 1. Comparison of 2013 GDPs

Modern Southern California is presented by concentrating highly diverse service and industrial activities that are made accessible through the region's system of freeways and roads. Southern California is included in the list of world's largest economy with the gross state product (GSP). In 2013, California GDP grew by 2% ($2 trillion to $2.2 trillion) (see Figure 1). California's largest private industry sectors: Finance, insurance, real estate, rental, and leasing (20.9% of state GDP); trade, transportation, and utilities (15.1% of total GDP); professional and business services (13.2% of state GDP); and manufacturing (10.9% of state GDP) [7].

Los Angeles and San Diego, the two main cities in Southern California, were peripheral outposts to the American urban system one hundred years ago. Both cities were founded through the missionary settlement efforts of Spanish colonization, starting in the 17th century. The high rate of growth of territories and urbanization made South California the great representative of conurbation system - as a region comprising a number of cities, large towns, and other urban areas that, through population growth and physical expansion, have merged to form one continuous urban and industrially developed area. In most cases, a conurbation is a polycentric urban agglomeration, in which transportation has developed to link areas to create a single urban labour market or travel to work area.[1] The term "conurbation" was coined as a neologism in 1915 by Patrick Geddes in his book Cities "In Evolution", where he drew attention to the ability of the new technologies of electric power and motorised transport to allow cities to spread and agglomerate together. For now it is a conurbation as the country's largest demographic agglomeration and most important foreign trade center, with the largest volume of exports and imports.

It is the example of polycentric metropolitan form with a vast mosaic of municipalities sprawling over 11,000 square kilometers of very diverse terrain. The vast mosaic of disparate communities fostered much spatial segregation by income or wealth, with more than 300 gated neighborhoods providing the most obvious examples of social and economic separation that one can probably find in the United States. As a result, Southern California became the quintessential example of polycentricity, with an extremely diverse agglomeration of communities, activities and population [8].

The region's polycentricity has set the spatial context in which flows, network structures, transactions and location decisions occur. It means that Southern California's global gateway was built on cooperation of labor flows and networks which became extremely important for almost every economic activity found in the region, from Hollywood to the furniture and textile manufacturers of Los Angeles, to the advanced hightech, aerospace and biotechnology complexes which make up. For example, the sort of binational polycentricity has turned part of the metropolitan region (on the Mexican side) into a major 'offshore' production center in electronics, rivaling the most successful Asian enclaves.

Southern California's polycentric metropolitan structure has fostered a great deal of segmentation, in virtually every sector or activity. As a result, vastly different activities, disparities and standards have been able to coexist within this region. The high level of segmentation has also provided it with many competitive advantages, by allowing firms and institutions to connect with the vast spectrum of opportunities and resources that are available in the sprawling metropolitan mosaic [3].

Flexibility is another important characteristic that is partly a result of segmentation. The vast mosaic of communities and business centers provides greater

locational flexibility than would occur in older, mo-nocentric metropolises, or in cities with less well-defined polycentric structures. Southern California's polycentricity makes it possible for a large number of disparate activities to be found in relatively close proximity, often straddling municipal boundaries. For example, the high reliance on individual transportation adds to this flexibility, through the sheer number of routing choices and the redundancies of the road networks.

Beyond the region's specific context, it can be argued that polycentricity has also affected the functional relationships involved in many economic activities, including those which provide it with its globally competitive base [1].

Here is wherewith to ensure and support such kind social and economic system and entire cycle range of products and services, California's polycentricity system holds on the employment sector. It is one that has huge influence on the development of Southern California as most famous international hub. The government of California is the largest industry - about 2.5 million employees (12%). The second largest industry, according to the census, health care and social assistance (see Figure 2). A big role in employment government structures play: armed forces, police districts and cities, the Federal Bureau of investigation, the prison system (state and federal), the internal revenue service, postal service. Among the largest public employers in the state are distinguished naval and air bases. The average payment scale of those are presented on figure 3.

In California in the mid-2 0th century had been appeared such innovation in retail, as, fast food restaurants and credit cards. It has influenced on further development of growing points of California in all current spheres.

USA is planning to change its immigration restrictions for prospective students, entrepreneurs, artists and scientists. Their contribution as citizens will create millions of new jobs, without prejudice to American workers. For example, there are such unveiled plans in Obama's administration to create "an elite corps" of highly qualified teachers of exact and natural sciences. The project is estimated at $1 billion, it aims to improve the quality of education in areas critical to the future growth of the U.S. economy, mathematics, natural sciences, technology and engineering disciplines, as well as to raise the average level of education in the USA [12; 13]. His good physical shape is to follow the US President Barack Obama provides leadership on health and economic benefits of disease prevention through an active lifestyle and sensible nutrition. This will lead to increased productivity and lower medical costs.

Many colleges are accessible access points for learning, many of them have an active agenda to ensure education for immigrants and their children [14]. Although some programs receive funding from the state or municipalities (direct or indirect), the benefits ultimately received in the regional economy through increased productivity and income.

Agricuiture and Mining

2%

Government 12%

Construction 4%

Education, Health, and Other Services 18%

Professional and Technical Services

9%

Real estate and Rental and Leasing 17%

Trade, Transportation, and Utilities 16%

Manufacturing 10%

Information 6%

Finance and Insu ranee 6%

Fig. 2. Employment structure of Southern California

ltw

1 of highest paying

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Aveiage weekly /

pay [«all __mm

T. «» indusliies is iW __

■■llll III

Leisure i Otter [tolioti i Comli ucliwi Proleisiaul Uinitadurii^ logis!« GoiwnniMit Financial Mtliwi Hnpljili Sendees Heallh Smite i Bcinesi htnilies Pielwe

Seniles

Safcc Cjbf&nij Stalt [DO jm S£AC Socioeconomic?

Fig. 3. Average payment by sectors

The U.S. experience shows that investment in human capital is 25% cheaper than attracting trained worker, payback and profitability of these investments is quite high and, accordingly, the degree of risk is low. On other hand, human capital is the main secret of the success of the Silicon Valley - sustainable growing point of this state. More than one city the world could boast that every second inhabitant is of higher educat-ilization (as a minimum, a bachelor's degree). The level of education of the San Francisco competes only with the second "smartest" city in the USA — Boston, but so far with mixed success. Eventually however, the "appetite" for the talent here is not reduced: Silicon Valley needs all new technicians. In Valley recruiting of successfully workers is ensured by big choice of headhunter agencies. Their services for the employer are about average cost 30% of the annual salary of the candidate (however, the replacement of the agency guarantees).

South California took aim at global gateway not only by the strategic tool as polycentric employee sector, but also with high-capacity transport system which provide unimpeded movement of citizens. Secretary of U.S. Department of Transportation Norman Mineta recently said, "We understand the immediate link between continued investment in infrastructure and our nation's economic prosperity.. .Transportation is key to the productivity, and therefore the success, of virtually every business in America. Congestion and inefficiency in transportation are not just inconvenient and ag-gravating.but they are also a tax that burdens every business, every community and every individual. We have to find ways to lighten that load." [15] (see figure

4).

Transportation system of goods and California's place in the global economy have become high priorities for decision-makers at both the State and national levels. Early in Governor Gray Davis administration

was launched an initiative to solidify the Golden State's position as the West Coast gateway for goods entering or leaving the United States from or to the Pacific Rim. Governor Davis spearheaded the development and implementation of the Traffic Congestion Relief Program (TCRP), a nearly $8 billion investment effort to upgrade California's infrastructure to ease congestion and improve mobility. The TCRP represented the single largest investment in transportation infrastructure improvements in the State's history [16]. Till now such kind policy of international trade and goods movement has supported these critical elements of California's, and the nation's, recent economic success. With more than $350 billion in international commerce, California's economy depends on trade. More than one in seven California jobs are tied to trade.

In response, much of the South California region is changing to address today's problems and tomorrow's demands. Many cities within the mega-region's urbanized core, in Los Angeles, Orange, Riverside and San Diego counties, are relying more frequently on infill and redevelopment to accommodate both the new and existing population, while at the same time recreating the way the metropolis looks and functions. A concerted effort to build and develop around a public transit network is reshaping the region and laying the foundation for a truly global city.

Conclusion. Southern California's continued success may be in jeopardy. Rapidly increasing congestion, continued growth away from transportation hubs and economic centers, and poor air quality threaten the region's ability to maintain a competitive edge in the global economy. Recently, a dramatic rise in housing prices, coupled with an ever-widening income and prosperity gap has made first-time home purchase difficult for most residents. Environmental sustainability is also a concern as a growing population leads to

EKOHOMWHHH BicHHK ^OH6acy № 4(38), 2014

greater natural resource demands for land, energy and water. But the most powerful tool which used in management of the region is: « Whether the topic is schools, parks, roads, water supply systems, or ports, the mes-

sage is the same — make better use of what we have " [10]. It shows more than big potential of Californians, but their strategic openness for changes.

Fig. 4. National Intermodal Freight Flows to/from the Los Angeles Region

Balancing growth and extending opportunity of human capital, infrastructure and technologies should be essential to the region's future. Growing points are mostly presented by sustainable sectors which could be changed according to current situation and strategic plan. In the near future, it doesn't look like vectors of changing will be shift the directions.

References

1. Muntean M. A. New philosophical encyclopedia. Editorship of V. S. Stepin. - Moscow: Mysl, 2001. - 4 vol. 2. Morton A. Kaplan. System and process in international politics. - ECPR Press, 2005. - 252 p. 3. Suarez-Villa, L. "Southern California as a Global Gateway Region: Polycentricity and Network Segmentation as Competitive Advantages." In Gateways to the Global Economy, edited by A. E. Andersson and D. E. Andersson. Cheltenham and Northampton: Edward Elgar, 2000, pp. 83-104. 4. Philosophy: Encyclopedic dictionary. — M.: Gardariki. Edited by A. A. Ivin. 2004. 5. Grinin, L. E. 2006. About stages of evolution of the state. Problems of theory. History and modernity (1): 3-44. 6. The Southern California Mega-region A Case Study of Global Gateway Regions: America's Third Century Strategy. September, 2005. - [Electronic resource]. - URL access: http://www.america2050.org/ pdf/socalmegaregion.pdf. 7. Fast Facts on the California Economy Compiled // Assembly Committee on Jobs, Economic Development, and the Economy As-

sembly member Eduardo Garcia, Chair. - [Electronic resource]. - URL access: http://ajed.assembly.ca.gov/ sites/ajed.assembly.ca.gov/files/California%20Econom y% 20Feb%202015.pdf. 8. Gordon et al., 1986; Giuli-ano and Small, 1991; Gordon and Richardson, 1996; Suarez-Villa and Walrod, 1997. 9. Southern California // Free encyclopedia. - [Electronic resource]. - URL access: https://en.wikipedia.org/wiki/Southern_ California. 10. California's global gateways: trends and issues / Jon D. Haveman/ Public Policy Institute of California. - [Electronic resource]. - URL access: http://www.dot.ca.gov/ hq/tpp/offices/ogm/products_ files/ GGDP_Final_Report.pdf. 11. Norman Mineta, Golden State Roundtable Luncheon, Washington, D.C., June 27, 2001. 12. Носкова Кристина «Человеческий капитал» США: проблемы иммиграции. -[Electronic resource]. - URL access: http://ekonomika.snauka.ru/2012/10/1334. 13. Райб-ман Н. Обама хочет потратить $1 млрд на учителей ради будущего США // Ведомости 18.07.2012 URL:http://www.vedomosti.ru/politics/news/2295716/ obama_hochet_potratit_1_mlrd_na_uchitelej_matemati

ki_i (дата обращения: 11.10.2012). 14. Robert T.

Teranishi, Carola Suarez-Orozco and Marcelo Suarez-Orozco, "Immigrants in Community Colleges," The Future of Children 21 (1): 153-169. Princeton and Washington, DC: 2011. 15. Norman Mineta, Golden State Roundtable Luncheon, Washington, D.C., June 27, 2001. 16. Global gateways development pro-

gram: Stakeholder Perspectives on Options to Facilitate the Movement of Goods in California/ State of California: Business,Transportation& Housing Agency; California Department of Transportation; Division of Transportation Planning; Office of Goods Movement : http://www.dot.ca.gov/hq/tpp/offices/ogm/ products _ files/GGDP_Final_Report.pdf.

Кузнецова Д. В. Точки росту ШвденноТ К^форнп

Метою дано! статп е обговорення та виявлен-ня основних точок зростання регiональноi еко-номiчноi системи Пiвденноi Калiфорнii. Була зроб-лена спроба об'еднати вектори полггики, якi були вже досягнутi в практищ i ii, якими характеризуемся сучаснiсть. З економiчноi сторони велику роль в суспiльному визнанш зiграв вибраний тип територiального розвитку. У шнцевому рахунку, сформована система полщентризму дозволяе задiяти i розвивати необмежену кiлькiсть галузей, секторiв та суб'екпв. Це дае можливiсть i стимул для безперервного i гнучкого моделювання i тонко! настройки сталого та успiшного життезабезпечен-ня.

Активне вибудовування вiдносин ствробгг-ництва з розвитком перспективних галузей дозволяе Калiфорнii бути i залишатися проввдним регю-нальним i глобальним центром. Обговорення таких процеив i ввдповвдних заходiв полiтики також мо-жуть бути цiкавими для багатьох регюшв Цен-трально1' та Схiдноi Свропи, так як аналогiчнi змiни можна очiкувати в майбутньому i там.

Ключовi слова: полщентризм, агломерацiя, хаб, Швденна Калiфорнiя, урбанiзацiя, мега-регiон.

Кузнецова Д. В. Точки роста Южной Калифорнии

Целью данной статьи является обсуждение и выявление основных точек роста региональной экономической системы Южной Калифорнии. Была сделана попытка объединить векторы политики, которые были уже достигнуты в практике и те, которыми характеризуется современность. С экономической стороны большую роль в общественном признании сыграл выбранный тип территори-

ального развития. В конечном счете, сложившаяся система полицентризма позволяет задействовать и развивать неограниченное количество отраслей, секторов и субъектов. Это дает возможность и стимул для непрерывного и гибкого моделирования и тонкой настройки устойчивого и успешного жизнеобеспечения.

Активное выстраивание отношений сотрудничества с развитием перспективных отраслей позволяет Калифорнии быть и оставаться ведущим региональным и глобальным центром. Обсуждение таких процессов и соответствующих ответных мер политики также могут быть интересны для многих регионов Центральной и Восточной Европы, так как аналогичные изменения можно ожидать в будущем и там.

Ключевые слова: полицентризм, агломерации, хаб, Южная Калифорния, урбанизация, мега-регион

Kuznetsova D. V. Growing Points of Southern California

The aim of this paper is to discuss and show up the main growing points of regional economic system of Southern California. The paper intends to bring together the aimed and contemporary implemented vectors of policy. On the economic side the importance of selected type of area development has played big role in public recognition. Eventually, the established system of polycentricity allows to involve and develop an unlimited number of industries, sectors and actors. It gives the opportunity and impetus for continuous and flexible modeling and fine tuning of sustainable and successful life sustenance.

Extensively built cooperation relationships and promising sectors allows California to be and remain a leading regional and global hub. Discussing these processes and the related policy responses might also be interesting for many regions in Central and Eastern Europe, as similar developments might be expected in the future there as well.

Keywords: polycentricity, conurbation, hub, Southern California, urbanization, mega-region.

Received by the editors: 27.11.2014

and final form 23.12.2014

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