The Impact of Fiscal Policy on Urbanization Process - Essay Example

The impact of financial policy on urbanization process in respect to globalisation s Submitted by s: The impact of financial policy on urbanization process in respect to globalisation Aims and objectives The main purpose of this research to study urbanisation and the effect that the financial policy has on the overall urbanisation so that it can be seen what the impact of the financial policy has on urbanisation since financial policy is the main aspect that encourages the growth of urbanisation and through the creation of an environment that is conducive for it to grow. In terms of economic policy, it can be considered to be the actions that the governments have to take in the economic sector and it encompasses the systems that are needed for the determination of how much interest rates can be charged, and the budget that the government operates with as well as the labour market, the national ownership and more other sectors that the government provides intervention in the economy of that particular company. These policies are normally subjective of international institutions such as the International Monetary Fund or The World bank and also the political beliefs that are harboured as well as the policies that the parties that are affected have. Globalisation has many scopes and it brings out different meanings to different people who are In different academic disciplines where others look at it as economic capitalism while there is a group that perceives it as a way of coming up with a culture that has high breed characteristics. Generally, globalisation can be seen as the increase in the amount of interconnectedness that exists in the world and is escalated by the blitz of market capitalism that has taken place all over the world and the improvements in electronic communication and the technologies that are related to transport. The forms of urbanisation that exist in the post-globalisation era exhibit an increased growth and concentration of population in the cities that are larger and urban economic growth has progressively contributed by services sectors, deteriorating share of industrial sector and greater labour output. Largely, the growth consequences of these relative analyses suggest a need for going on with economic globalisation and for a national methodology for the improvement of large cities (Narayana, 2010, p. 91-116). Agglomerations in the services which is normally measured by the specialisation index of the region multiplied by the size in the financial intermediation has normally been seen as having a positive impact on the growth and this kind of results can have implications that are particular for urban regions since financial intermediation mainly exists in the areas that are metropolitan (China Development Research Foundation, & OECD, 2010, p. 48; National Center on Adult Literacy, 2006, p. 12-56). Background This project aims at understanding the impact that the financial policies have on the rate of globalisation and it can be said that the policy capacities that are removed from the government could be able to contribute hugely to the quality of the policies that are made and this enables the policy analysts to be able to recognise issues in an independent manner and to be able conduct research and analysis that be politically convenient immediately and in this sense which is a long time approach that is based on a systematic and an analysis that is more rational might be able to prevail (Kaul, 1997, p. 59). From the ancient up to the cities that are most modern, there is rich evidence that the cultures that are in existence there are come from various different places and this can be seen through the diversity that is shown by the ideas that are derived from the many different religions and places. Cities have been able to manifest conflicts within themselves since various classes struggled for power and privileges and with the other cities over issues that were associated with politics and trade (Falola and Salm, 2004, p. 1). How globalisation is handled will determine whether the cities that we live in and the civilisation that we enjoy will be divided and violent or user-friendly and peaceful and there can never be a clear perspective of the urban life particularly in the countries that are poor unless we consider the phenomenon that is globalisation which has already brought radical changes make their first appearance (Harvey, 2009, p. 88). By the year 2010, a majority of the population of the world lived in cities which could be considered to be a very important milestone that was actually achieved two years before that and these fact show the intensity that the world has been able to urbanise over the last half a century and also mark the cities in the world as a central platform on which issues that are related to the development of humans will play out over the course of the twenty-first century (Birch, Wachter and Birch, 2011, 3). Globalisation is meant to shape the global village and the information era that has developed has speeded up the processes and interaction that take place in the world today as the globalisation moves forward with a rate that is steady but slower in the nations that are relatively poor (Yueh, 2009, p. 305) which means by the year 2025 more than two thirds of the total population of the world will be residing in the cities and towns where the best opportunities and facilities are located (Ali and Porciuncula, 2001, p. 1). Globalisation also emphasizes a new urban geography (Pacione, 2009, p. 33) and islands that are characterised by rich consumers are coming up in the cities in the midst of an ocean that is constituted of people that are deprived where more and more people are becoming unemployed, the immigrants, minorities and the homeless are pushed into the cities by pressure that comes from the market economies. As a result all the urban areas will require dealing with internal tensions that are growing and taking the instance of New York City, the poorest twenty per cent of the population that resides there earns fifteen times less than what the richest twenty per cent earns (Lakshmi, 2005, p. 17). Very few cities remain un-influenced by the global economy or by the products or the operations of the firms that are multinational and have a huge role within it which makes globalisation to become increasingly inclusive. Some of the countries have been able to gain economies that are wealthier as a result of the much increased scale of the international trade and the international integration that entails production which deals with globalisation. A good example is China which has a population that accounts for a fifth of the total population of the world (Howe, Kueh and Ash, 2003, p. 291) but it produces an increasing unequal world when the distribution of income, assets and economic power, within and between nations is considered (IIED, 1989, p. 1). The share of gross international asset holdings in the gross domestic product of the world is used in providing a measure of financial openness has shown an increase that is eightfold over the last quarter of a century and this steep increase in the overall economic interconnectedness that is associated with both real and financial situation is at the centre of the globalisation. This kind of candidness has occasioned many variations that are intricate with the results for all economic proxies including firms and households as well as the governments and also the rest of the policy makers like the central banks (Anderton and Kenny, 2011, p. 2). Globalisation and economic integration have had many influences that are determining on the evolution of Jakarta in Indonesia from the colonial history to the progressively regional and global city status. The advantage that it has brought with it can be viewed in the growth of the population and the social culture that is associated with it, the expansion of both the service and the industrial sector, and the expansion of the city to the areas that are around it (Gugler, 2004, p. 290). Indonesia among other countries can be considered to be an emerging economy (OECD Publishing, 2009, p. 252) and therefore the rate of urbanization that had been previously slow is rapidly increasing as a result of this (Tonts and Siddique, 2011, p. 162). The choice for research, the time that it has taken to complete it and the materials that are used in the study make it suitable for the objectives of the research that had been identified and greatly contributes to the issues that aims at understanding how financial policies have been able to influence urbanisation in the context of globalisation. In general, this project seeks to collect the notions that are associated with globalisation, urbanisation and financial policies that may affect both urbanisation and globalisation. Research questions How have the financial different financial policies that are in place been able to contribute to the urbanisation? What are the trends in urbanisation that have taken place in the recent pasts? How is urbanisation connected to globalisation? How has urbanisation been able to contribute to an increase in globalisation? What has been the effect of urbanisation as a result of the financial policies on the overall globalisation? Methodology The research will merge both qualitative and quantitative tactics when it comes to collecting data and the analysis of that data. The quantitative research is expected to come out with information concerning the influences that the financial policies have on urbanisation in respect to globalisation while the qualitative research will enable an insight into the individual experiences, efforts and the reactions of the people that experience both urbanisation and globalisation in the country that will be chosen for the research. Research design Indonesia has been selected as the country that will be at the centre of this research since it is situated in a location that is perceived to have a high rate of urbanisation in respect to globalisation and also its economic position. Indonesia is one of the biggest countries in the globe that is constituted by several islands including Jakarta and urbanisation has not been kind on the city creating a situation of overpopulation and poor living conditions that have made the city to experience socio-economic and geographical problems. The case study that will take place for this country will involve literature review and also library study that will that will be used as much as possible to identify the situation that exists in this country, their rate of urbanisation, the factors that affect urbanisation as well as influence of the financial policies and legislations on the rate of urbanisation while considering globalisation as a factor. The process will be divided into two stages that will entail the collection of the data through the literature review and the library study and the dissemination and analysis of the same data after the collection. Desk research The inaugural phase of the research will involve a highly detailed literature review of the influence that financial policies normally have on urbanisation and consequently on globalisation. Relevant books, material on surveys, the results of census and maps that are available in the library will be employed to be used as the source of the information that is needed in this part of the research. The research material that will be used from the library will have to be as current as possible so that it can keep the research focussed on a particular time period that is in the recent past. Maps and census reports will be used to identify the areas that have been considered to experience an influx of people and also have experienced urbanisation after the relevant literature and books will be able to be good resource material in terms of explaining the financial policies in Indonesia have been looked at and the financial policies and their implications identified. Interviews The effect of financial policies on urbanisation in Indonesia will be studied in two places that will include Jakarta which is in the city and is experiencing clear urbanisation and one area that is considered to be less urbanised and in this case Solo city where people migrate from to go to the places like Jakarta that are more urbanised. The main method that will be used in the collection of data in this stage will be conducting of interviews that will be semi-structured with random groups that will consent to taking an interview in both places that are targeted. The interviewees will be asked to identify any financial policies that they are familiar with. They will also be asked to identify how this policies affect them in terms of where they live and how urban the place that they live are. There will be specific attention to the response that they will give when explaining how the financial policies that they know of have influenced the urbanisation from an individual’s point of view. Each location that has been identified for the interviews will have twenty interviews that will be held there. The responses to the questions that the interview will address will be recorded through the use of a recorder and the interviewers will also be required to make short hand notes of the same responses. Questionnaires Questionnaires will be administered to firms that are of a medium size that operate in each of the locations that had been identified to be the subjects of this case study. This will be aimed at understanding how the financial policies that are in place affect where they prefer to locate their businesses. The questionnaire will seek to understand which policies exist that has the greatest effect on how these firms operate and how the same policies dictate the environment that they do their business in. 5o questionnaires will be administered in each location and the firms that will be given the questionnaire will be identified earlier and a request sent to them seeking to get permission to administer the questionnaires to them. The data that will come out of this will be harmonised with the one that will come out of the interviews when it will be analysed. Data Analysis SPSS is the program that will be employed in the analysis of the data that will come out of the research so that the data can be interpreted in a manner that will be expressive enough and easy to understand. The qualitative data on the other hand will be scrutinized and transliterated using ATLAS.ti and the data will be produced in a progressive manner that will be depend on the questions that will be in the research. Data will be scrutinised and analysed at the culmination of each and every step that is involved in the research so that the process of the production of the data and its analysis remains to be a process that is uninterrupted. The methods of research that are used will be triangulated to make sure that the data that comes out of it is as accurate as possible. Expected results The research will bring out an understanding of how the financial policies that are in place affect how urbanisation takes place when globalisation is considered. Financial policies that are favourable go a long way in increasing the rate of urbanisation by creating conditions that are conducive for businesses both local and international to thrive. In the cases that these policies favour more of the cities that are already urbanised already, they should be revised so that they can be able to apply across the board and eliminate cases of disparities in the different cities of the same country. The results that come out of this research will be published in journals that are associated with the countries that the research took place as case studies. The results will also be presented to the main policy makers that are responsible for the policies that are being studies as a form of feedback for their evaluation. Bibliography Ali, M., and Porciuncula, F. 2001. Urban and peri-urban agriculture in metro Manila: resources and opportunities for food production. Asian Vegetable Research and Development Center, Shanhua. Anderton, B. and Kenny, G. 2011. Macroeconomic performance in a globalising economy, Cambridge University Press, Cambridge. Birch, E. L., Wachter, S. M. and Birch, E. L. 2011. Global urbanization. University of Pennsylvania Press, Philadelphia. China Development Research Foundation, & OECD, 2010. Trends in urbanisation and urban policies in OECD countries: What lessons for China? OECD, Paris. Falola, T. and Salm, S. J. 2004. Globalization and urbanization in Africa. Africa World Press, Trenton, NJ. Gugler, J. 2004. World cities beyond the West. Cambridge University Press, Cambridge. Harvey, D. 2009. Social justice and the city. University of Georgia Press, Athens. Howe, C., Kueh, Y. Y. and Ash, R. F. 2003. Chinas economic reform. RoutledgeCurzon, London. IIED. 1989. Environment and urbanization. Sage, London. Kaul, M. 1997. Better policy support. Commonwealth Secretariat, London. Lakshmi N, M. 2005. Urbanisation and child labour. Discovery Pub, New Delhi. House. National Center on Adult Literacy, 2006. ICT and learning: Supporting out-of-school youth and adults. OECD, Paris. Narayana, M. 2010. Impact of Economic Globalization on Urbanization A Comparative Analysis of Indian and Select Global Experiences. India Quarterly: A Journal of International Affairs, vol 66, no. 1, pp. 91-116. OECD Publishing. 2009. Globalisation and Emerging Economies. Organization for Economic Cooperation & Development, Washington. Pacione, M. 2009. Urban geography. Routledge, London. Tonts, M. and Siddique, M. A. B. 2011. Globalisation, agriculture and development. Edward Elgar, Cheltenham, UK. Yueh, L. Y. 2009. The law and economics of globalisation. Edward Elgar, Cheltenham, UK. Read More