London Borough of Hackney - Case Study Example

Running Head: Economic Development Strategy: London Borough of Hackney from 2008 of the Institution: Introduction Hackney is a London Borough located on the eastern side of the city. This borough is usually considered among the boroughs with a great cultural diversification but greatly deprived. It was declared the most deprived borough in England in 2004, with all wards in the borough being in the 10 per cent most deprived wards in England. In spite of Hackney Borough having a great social mix, a big portion of Hackney residents get social benefits. The southern part of Hackney borders the city and therefore close to Broadgate development, which is set to provide Hackney with its first ever underground station. It is anticipated that this move will greatly catalyse economic development in Hackney. Generally, Hackney has experienced a big transformation, hence leading to a removal of some of the negative stereotypes attributed to the city. It has in the recent past become a centre of attraction for a number of creative industries. Targeting Hackney's growth Education Hackney has seen its GCSE grades increase by an estimated 50 per cent increase in the recent past. The emergence of numerous specialist schools has raised prospects in the borough's education. The borough has in the past lacked specialists in various fields due to its economic hardships. However, the borough continues to have a high number of adult without education. Hope therefore lies in the new upcoming generation. Moreover, the existing education schemes in the borough have not done much in increasing employment opportunities. Consequently, the number of people with appropriate skills that can offer them gainful employment is very low. This has led to a very low income flowing into the borough from other parts of England. On the other hand, there is a lot of hope for the borough following the emerging trend of a growing number of qualified professionals, especially those of level 4. Moreover, the recent infrastructure development is increasingly attracting many firms into the borough. This greatly increases prospects of economic development in Hackney. However, Hackney still has many challenges ahead in its endeavour to attain economic power. It is going to be an uphill task to enlighten the Hackney community on the importance of education. Moreover, the current situation does not inspire students into pursuing higher education. Employment Hackney has over the years suffered some of the highest rates of unemployment in England. However, in the recent past, the borough is experiencing an improvement in the rates of employment. A great deal of Hackney's potential comes from its closeness to the City. This will greatly influence the borough's economic growth, especially with the construction of a link between the borough and the city. This will in turn create numerous employment opportunities for the borough. The growing presence of the service sector in the area will help in the creation of employment opportunities for the locals. However, Hackney borough continues to experience high levels of economic inactivity and unemployment. This can be attributed to the borough's limited opportunities. Moreover there is a high rate of migration of businesses and labour to other parts of England from Hackney. Moreover, there is a huge disparity between the north and the south in the borough. On the other hand, the growing cultural industry in Hackney borough presents it with a lot of opportunities. It will greatly improve the borough's tourism sector and, by extension, create employment opportunities. Additionally, the current development programs in the borough will go a long way in improving economic development in Hackney (NERC, 2006). For instance, the developments aimed at improving accessibility will connect the borough with its neighbours, particularly the city. This will enable a free flow of resources from the city or other parts to the borough. The new investments in the area will also spur economic development, especially by creating jobs for the residents of the borough. Regeneration projects will help improve the borough's infrastructure, which is a very important element in economic development (NERC, 2006). However, the culture of dependency is emerging in the borough. In as much as this culture helps in bringing in resources from other parts, it also denies the borough from utilising its potential. Moreover, the increasing disparity between the north and the south threatens to undermine any past economic achievements. Transport Hackney borough continues to witness a rapid improvement of its transport infrastructure. There has been construction of rail links and bus networks, leading to a wide usage of the public transport system. However, the public transport facilities are not adequate for the borough. As a result, it has become very hard for Hackney residents to reach jobs in the City. For those who manage to reach these jobs, the time period they spend travelling to work is very high. Tube access has also been very poor in the Hackney borough. Great opportunities are presented for the Hackney borough with the improvement of bus services. Extending the East London line will also spur economic growth in the borough (Ingenta Connect, 1989). The construction of four new stations is good news for the borough since it will help solve the current shortage. The construction of Cross Rail 2, a metro service, will further improve the borough's transport infrastructure. However, there is little investment in the borough currently. It will require the concerned authorities to work with haste to improve this situation. Private Investment The future of Hackney looks very bright since more money has started flowing into its economy. There is also better sustainability in the Hackney Borough compared to a few years ago. The standards of living are slowly picking up in the borough. Moreover, the quality of urban designs is beginning to improve. Consequently, the number of business start-ups in the area has increased compared to a few years ago. Private investment in the area is however being hampered by the current global financial crisis. Moreover private investment needs adequate planning and preparation. The amount of area available is quickly shrinking due to the anticipated 2012 Olympics. The borough might benefit immensely from the strong Great Britain currency, which will attract foreign investors. As a result, this will create even more opportunities for employment, leading to better conditions of living. The area will also experience a better wealth circulation as a result of business exchange programmes. However, the increasing level of private investment in the area is likely to cause gentrification. Focus on the people and the community Hackney Borough will develop into a great city by drawing on the collective experiences of its residents, and strengthening the borough's unique characteristics. The borough should make sure that its infrastructure as well as its policy framework is in place. This will go a long way in fostering information sharing and skills development. Moreover, it will create a welcoming and liveable community that will serve as places of activity, knowledge and gathering spots. Hackney Borough must create valuable networks that will enable people to engage and interact. The networks can either be stable or fluid, formal or informal. It is very important that to have these networks for sharing of ideas, collaboration, integration and engagement. Hackney Borough will make its community very welcoming if it provides a very strong sense of experience and place (Hirschman, 1988). This is a very important ingredient if this strategy is to succeed. This is because the residents of Hackney Borough will be given the opportunity to drive their future economic growth. Hackney Borough must provide high standards of skills training and education. This will help in fostering a workforce capable of achieving prosperity and higher standards of living, which is the eventual goal of any economic development. The modern economy needs an educated, skilled and dynamic workforce; a workforce that is capable of thinking cross-sectorally. This workforce should also be capable of thinking across disciplines of unique and creative solutions. The Hackney Borough population should be ready to adapt to the changing demands. The population should therefore utilize their capabilities, knowledge and skills to multiple opportunities. Generally, Hackney Borough must avail to its population world class research and education facilities and programs. This will go a long way in attracting, retaining, and developing workers, which is very essential for economic development. The borough must create an environment that can promote creativity as well as strong links between the education sector and the private sector. Hackney Borough should increase its access to higher education since investing in education is investing in human capacity. Human capacity is the competitive advantage of tomorrow's economy. High human capacity across the borough's population will increase income and bring prosperity to Hackney Borough. Focus on enterprise and business Success in today's global economy needs differentiation at both international and national level, as well as diversification. Economic diversification must be carried out strategically using tools like centres of excellence as well as promotion of regional economic activity. The concerned authorities should capitalize on Hackney's strengths but look out for emerging global opportunities. For Hackney to be competitive globally, it must make its environment open for business. This environment should support not only big players, but also smaller players. This is because these small players have a great potential for innovation and growth. Hackney should make sure that all businesses in all sectors get access to the necessary capital for them to prosper and contribute to its economy. The authorities should ensure timeliness, responsiveness, certainty and easy electronic success to the borough's businesses. Hackney's transport and communication infrastructure should make sure that there is efficient and fast movement of ideas, services, people and goods all through the borough and economic regions. To create wealth, Hackney Borough should provide the necessary infrastructure to convert the borough's wealth to a sustainable economy that is beneficiary to all the residents. To ensure Hackney's economic growth and its capability of attracting and retaining people and investment, there should be proper infrastructure to ensure effective and efficient movement of ideas, people and goods. Security and safety are very essential in the Hackney business environment if economic development is to take place. Hackney Borough must brand itself as a diverse, growing and successful borough in an ever more competitive environment. The borough's competitiveness should be derived from its commitment to innovation and its level of entrepreneurship. Focus on international reach As the global economy continues expanding rapidly, it brings with it a big scramble for skilled employees. This has threatened to overshadow the past achievements of the borough. This calls for a proactive approach in its response to changes in the world economy. The Hackney authorities must find ways of benefiting the local community and businesses from the growing global markets. They should also utilize the opportunities as part of their efforts to remain competitive. The Hackney Borough community must be assisted to access global markets and establish relationships with international companies threatening their business processes. For Hackney Borough to rise to greatness, it should look for ways of attracting and welcoming the global market place in its borough and establish links for its businesses abroad. They must promote a contemporary and strong identity for Hackney Borough. Hackney's tourism infrastructure should tell a big story in order to make its visitors feel they are hosted by a great borough. State-of-the-art convention facilities should be put in place with the aim of attracting tourists and ensuring sustainable international investment and interest in the area. Conclusion Hackney Borough's past economic health has greatly improved in a number of sectors. The educational standards of the borough are much better than they were a few years back. The borough's underdeveloped infrastructure, together with its poor transport links has greatly hindered economic development over the years. Big regeneration projects like the Woodberry Down and the Olympic Games offer scope for making positive changes. Hackney Borough has a great potential for growth and development into a great place to live. This economic development strategy will go a long way in bringing prosperity to the borough. Strong leadership is however very necessary if this is to succeed. References Hirschman, a (1988) the Strategy of Economic Development, Westview Press NERC (2006) the New England Regional Plan-An Economic Development Strategy, Books on Demand Ingenta Connect (1989) The London journal, Longman Read More