Ýêîíîìèêà

S. Galenko

candidate if economic science, associate professor of international accounting and auditing, Kyiv National Economic University named after Vadym Hetman

 

APPROACHES TO CREATING EFFECTIVE STRATEGY FOR THE DEVELOPMENT CAPITAL CITY BASED ON EUROPEAN EXPERIENCE

 

Abstract. The article is to study the impact of globalization on urban development is basically a lot of complications, both theoretical and applied, because the development of effective strategies for the development of the metropolis should include a set of appropriate responses to the rapid changes taking place in the global economy and geopolitics.

The article analyzes forms of globalist influence due to the strategy created by metropolis. The parameters that should be considered in the development of long- and medium-term strategies of the metropolis were determined. Determined that the Development Strategy requires above all a clear definition of further methodological model city. The methods for assessing the positioning of the main cities in Europe were analyzed.

Key words:  globalization processes, development strategy of the metropolis, globalization, metropolis, capital city.

 

Introduction. Modeling of the impact of globalization on urban development is basically a lot of complications, both theoretical and applied, because the development of effective strategies for the development of the metropolis should include a set of appropriate responses to the rapid changes taking place in the global economy and geopolitics. However, analysis of the forms globalist influence, as noted by D. Held and A. MakHru and development of appropriate responses can vary quite strongly in its results. The above authors indicate the presence of four discussion groups with regard to strategy posed metropolis - vertical segment, consisting of the globalists and skeptics and horizontal basis which form the so-called cosmopolitan [1, p. 5]. It follows that in the process of developing long- and medium-term strategies of the metropolis, as Kyiv, which also has the status of capital should consider the following:

- the impact of globalization factors on city becomes every year more and more noticeable, so that this settlement is likely to distance themselves from other regions of the country and approach the major cities of Europe and the world;

- containment of the city or, on the contrary, its incentives have similar benefits and risks, which in any SWOT-analysis arouse distrust analysts skeptical and those who are more attuned to the positive perception of innovation, ie the most optimistic assessment of the impact the effects of globalization on the capital city;

- cosmopolitan vision of the metropolis is quite controversial, because it involves a holistic perception of urban and network processes raging in the world. Noting exactly the same feature famous American major cities while British researcher M. Shtorper rightly points out that the world formed a kind of mishmash terms and phrases that with all their interlacing, and in some cases require the identity and precise positioning areas (cities) in view of the existence in these so-called two "engines" of capital controls, which include the author's opinion, the internal and external interactions generalization urbanization processes [2, p. 118];

- communicative vision of globalization impact on the development of the capital city and the formation of the basis of an adequate strategy more likely reflect the views of the American scientist R. Florida, who is convinced that the development of creative class always stimulates communicative potential of the city, creating a concentration of such significant benefits to the global community, acting kind of loader of its infrastructure [3].

Results. Well aware of the possible impact of each of the above approaches to creating the optimal strategy of the capital of Ukraine is extremely important the separation of Kyiv place in the global system of international transfer of production and finance, and also resources including creative. This positioning of the graphic level, though without emphasizing the capital and the movement of factors of production could make the British and Singaporean researchers - N. Coe, K. Layi, D. Voychyk who presented a similar move as a ship that crosses institutionally mediated interface, creating this new model of economic environment

Development Strategy requires above all a clear definition of further methodological model of city. Most important in view of this, is that of professionals who specialize in the study of cities including Municipalities and regions is sustained fairly significant discussion about whether to evaluate the development of cities with the development of the countries in which they are located or link them better future prospects of the global transfer of production factors and thus to favor the dominant one in this time of economic theories.

According to one of these researchers - S. Aleksiadis original methodological framework when developing strategies could be: the neoclassical theory of endogenous growth theory, the so-called new economic geography or postkeynsian theory [4]. It follows that effective city management can only be when for its implementation will apply the most advanced scientific tools that have adequate performance as of this time, in this city, and under appropriate conditions.

Quite well, in our opinion, an attempt of forming the neoliberal model of Berlin development made Shipstal I. and B. Nichols. Their strategy of political and economic identification of the city with its subsequent modernization entirely based on the theory of neo-liberalism and forming respective clubs, including networking development support recycling (displacement) of the middle class selection of  individuals can develop a culture and support public and local activities, formation of free communities [8, pp. 184-189].

A similar view is shared by other researchers, including John. A. Peck and Tikel who are convinced that there should be singled out neoliberal special space within which common rules are to be distributed not only in the capital and other regions of the country, but also on integration communities in which they are [9]. Similar conclusions about the neoliberal model were made by A. Onh [10] and Briton D. Harvey [11], which clearly indicates that systemic convergence of major cities will be much faster than the convergence of depressed regions of the country with its capital.

The development strategy of any capital city at its core must have not only a model of globalization and regulation panel answers to global challenges, but also have the appropriate modulation converged with other metropolitan areas located within the continent or integration alliance. However, some researchers strongly believe that formal capital (ie, artificially created), no other than administrative segment functions has, thus, can not be attributed to the capital city of the country. So no coincidence that assessing the positioning of major cities in Europe (excluding the CIS countries) are known Western scholars N. Bosma and R. Sternberg decided to identify the main city of Italy as Milan, not Rome, Switzerland - Zurich instead Bern, Turkey - Istanbul and not Ankara. In view of this, the overall positioning of some capital cities in Europe has become clear ranking importance, given that you can with high probability to estimate the position of Kyiv City [12, pp. 1024-1026].

Mentioned above, researchers N. Bosma and R. Sternberg decided to go ahead and introduced universal primary index of business activity (Total early-stage entrepreneurial activity) - TEA, which is most informative as currently characterizes the development of business in the capital, which generally allows you to create adequate strategy, given the assessment of the business environment.

It follows that a significant inflow of capital account both on the city's with high investment attractiveness (Dublin, Oslo, London, Madrid) and the capital of the new Member States and candidate (Riga, Belgrade). Central group consists of the capital, which experienced a significant investment exposure, exposure in the past (jump investments) and is to some extent affected by the high cost of labor (Berlin, Zurich, Copenhagen, Amsterdam, Athens) and new EU Member States (Zagreb). Finally, low primary business activity is inherent, both traditional creative centers (Paris, Brussels, Milan, Helsinki, Stockholm) and the periphery of the European Union (Bucharest, Lisbon, Istanbul). As for Kyiv TEA-level can likely look as low as, first substantial institutional acceleration has still not happened, and second post-Soviet bureaucratic model of regulation of the city continues to operate in the third investment boom, as happened with Belgrade after the Balkan wars.

However, further development of the city is impossible without a clear positioning of its strategies based model, which gravitates. Given the above, we can be convinced that the future Ukrainian capital is largely driven by determination of the commitment the community of a particular model, the choice of which, as evident from the previous pressure is small, neo-liberal, dominated the business vector development, or neo-Keynesian, which occupy the top spot human capital and social conditions of its operation. However under the influence of the main metropolis of our country together internal and external factors do not exclude the formation and mixed model with its many hybrid variants, the main advantages of which will be in higher flexibility of creating urban development programs, high speed feasible onshore activities and opportunities to implement adjustments to strategies during their creation, implementation and modernization in the medium and long term.

Conclusions. Closer than anyone to isolating nature of strategic planning in the development of the city came John Brighton and John Sipel, who managed to clear criteria to distinguish excellence of local government, which include: focus on actions close to the citizens, autonomy and entrepreneurship , focus on workers, values, mission, goals and terms of reference, structure, political relations and so on. Together, it is possible to accurately position the public sector risks that complicate the path to "perfection."

Literature

1.                     Held P., McGrew. Globalization/Anti-Globalization. Beyond the Great Divide. Second edition. – Cambridge: Polity Press, 2009. – 283 p.

2.                     Storper M. Governing the Large Metropolis // Territory, Politics, Governance. – 2014. – N2 – P. 114-134

3.                     Florida R. The Flight of the Creative Class. – New York: HarperCollins, 2005. – 326 p.

4.                     Coe N., Lai K., Wojcik D. Integrating Finance into Global Production Networks // Regional Studies. – 2014. – Vol. 48 (N 5). – P. 761-777

5.                     Khanna P. Beyond city limits. The age of the nation is over. The new urban age has begun // Foreign Policy. – 2010. – September. – P. 8-17.

6.                     Zhu Y. Spatility of China’s Market-oriented Urbanism: The Unequal Right of Rural Migrants to City Space // Territory, Politics, Governance. – 2014. – N2. – P. 194-217.

7.                     Alexiadis S. Convergence Clubs and Spatial Externalities. Models and Applications of Regional Convergence in Europe. – Berlin: Springer, 2013. – 244 p.

8.                     Schipstal van I. Nicholls W. Rights to the Neoliberal City: The Case of Urban Land Squatting in “Creative” Berlin // Territory, Politics, Governance. – 2014. – N2. – P. 173-193.

9.                     Peak J., Tickell A. Neoliberalization // Antipode. – 2011 – N34. – P. 380-404

10.                 Ong A. Neoliberalism as Exception: Mutations in Citizenship and Sovereignty. – Raleigh: Duke University Press, 2006. – 35 p.

11.                 Harvey D. A Brief Histiory of Neoliberalism. – Oxford: Oxford University Press, 2005. – 401p.

12.                 Bosma N., Sternberg R. Entrepreneurship as an Urban Event? Empirical Evidence from European Cities // Regional Studies. – 2014. – N6 (Vol. 48). – P. 1016-1033