Citation
Towards sustainable economic development in Puerto Rico

Material Information

Title:
Towards sustainable economic development in Puerto Rico delineation of sub-national regions
Creator:
Valle Gonzalez, Carlos Antonio del
Publication Date:
Language:
English
Physical Description:
xxix, 533 pages : color illustrations, color maps ; 28 cm

Subjects

Subjects / Keywords:
Sustainable development -- Puerto Rico ( lcsh )
Regional planning -- Puerto Rico ( lcsh )
Administrative and political divisions ( fast )
Regional planning ( fast )
Sustainable development ( fast )
Administrative and political divisions -- Puerto Rico ( lcsh )
Puerto Rico ( fast )
Genre:
bibliography ( marcgt )
theses ( marcgt )
non-fiction ( marcgt )

Notes

Bibliography:
Includes bibliographical references (pages 525-533).
General Note:
College of Architecture and Planning
Statement of Responsibility:
by Carlos Antonio del Valle González.

Record Information

Source Institution:
University of Colorado Denver
Holding Location:
Auraria Library
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
794458598 ( OCLC )
ocn794458598
Classification:
LD1193.A735 2011D C35 ( lcc )

Full Text

TOWARDS SUSTAINABLE ECONOMIC DEVELOPMENT IN PUERTO RICO:
DELINEATION OF SUB-NATIONAL REGIONS
by
Carlos Antonio del Valle Gonzalez
B.A., University of Puerto Rico, Mayaguez, 1995
M.P., University of Puerto Rico, Rio Piedras, 2000
A thesis submitted to the
University of Colorado Denver
in partial fulfillment
of the requirements for the degree of
Doctor of Philosophy
Design and Planning
2011


This thesis for the Doctor of Philosophy
degree by
Carlos Antonio del Valle Gonzalez
has been approved
Luis Santiago
Date


del Valle Gonzalez, Carlos Antonio (Ph.D., Design and Planning)
Towards Sustainable Economic Development in Puerto Rico: Delineation of Sub-
National Regions
Thesis directed by Professor Thomas Clark
ABSTRACT
The lack of an operational regional definition is a problem in performing
economic development and land use planning at the regional level. Sub national
regions, or regions viewed as an intermediate entity between the state and the
municipality are the heart of regionalism.
The purpose of this research is to contribute to a better understanding of the
nature of sub national regions, in order to design an approach for the delineation of
functional regions with the purpose of harmonizing economic development and land
use. The approach delineated considered the spatial continuity of the natural
resources, agricultural reserves, and urbanized areas; the socioeconomic and
demographic identity of the regions; and the political functional centrality of the
municipalities that are located within the regional territory. The method was
designed to identify and allocate the potential sub regional industrial growth
considering some basic elements of sustainability. Furthermore, the approach
provided building blocks for the delineation of regional governing structures for
regional planning and was designed as a procedure to delineate regions in service of
the multiple purposes of regional planning, specifically economic development and
land use planning, with full regard for the manner in which growth and change impact
people, places, and economic sectors.
Two conceptual research questions were formulated. How to define regions
in order to provide this essential bridge between local and national economic
development and land use policy development? Do countries need regional
governing structures to guide the economic development and land use planning and
implementation?
The value-added in this work is a methodology for the definition of sub
national regions within the overall system of sub national regions most able to


facilitate the fashioning of developmental objectives that are consonant with regional
capacities and interregional developmental opportunities. The application of the
methodology to the case study, Puerto Rico, should be of considerable utility to
understand the nature of the regionalization process in general. The work concludes
with a set of prescriptions regarding both the means for sub-national regionalization
and for the implementation of tri-partite spatial planning hierarchies.
This abstract accurately represents the content of
its publication. _____
Signed
ommend
Thomas Clark


DEDICATION
I dedicate this thesis to my wife, Maria Teresa (Maite), for her unconditional
love, enthusiastic support, and understanding while I was completing this work. I
thank you Maite for being there always. I also dedicate this work to my mother
Ginny, and my brother Manolito, which always are there for me. And of course, I
dedicate this thesis to the memory of my father Mao, my grandparents, Manoh'n del
Valle, Antonio Gonzalez Chapel, and Mayan Bras, my uncle Cay, and my fathers
first cousin Juan Mari Bras, all of them being a great inspiration in many aspects of
my life. Last but not least important, this work is also dedicated to my lifelong
friends, they know who they are, for always believed in me.


ACKNOWLEDGEMENT
I want to thanks the persons and institutions that funded my doctoral studies.
First, thanks to the former president of the University of Puerto Rico, Antonio Garcia
Padilla, for granting me the presidential scholarship. Also, thanks to the University of
Puerto Rico at Mayagtiez, for granting me economic aid. Thanks to Jose Alameda,
Elias Gutierrez, Edwin Irizarry-Mora, Gerardo Navas, and Anfbal Sepulveda for their
trust in me, and all the recommendations they give me, formal and informal,
regarding my doctoral studies, and many other aspects in my life. A special thanks to
the Department of Social Sciences, and the Department of Economics, from the
University of Puerto Rico at Mayagtiez, for the teaching experiences. Thanks to my
advisor, Thomas Clark, for the many ideas, conversations, brain storming, time,
support, and guidance. I also wish to thanks the other committee members; Jose
Alameda, Yuk Lee, Brian Muller, and Luis Santiago. A special thanks to Edgar
Acuna, for all the help regarding the mathematical and statistical methods applied in
this research. Apart from my committee members I also wish to thanks all the
professors that taught me and help me in many ways during my PhD process; Ernesto
Arias, Susan Clarke, Taisto Makelii, Fahriye Sancar, Raymond Studer, and Willem
van Vliet. I also wish to thanks the group of experts who participated in the experts
opinion survey. A special thanks to Alberto Camacho, Marian Gonzalez-Inigo,
Hector Lopez-Pumarejo, Hermenegildo Ortiz, Jeffry Valentfn-Mari, and Jose
Villamil, for all the comments and information provided. I also want to thanks all the
persons and institutions that provided me with technical support and data, in special
to the personnel of the Puerto Rico Planning Board, to the personnel of the Center for
Applied Social Research (CISA by its Spanish acronym), and to the personnel the
Interdisciplinary Center for Coastal Studies (CIEL by its Spanish acronym). I want to
recognize the help from Anfbal Aponte, Luis Alberto Aviles, Walter Dfaz, Zaid Dfaz,
Camelia Rivera, Manuel Valdes-Pizzini, Rosemarie Vasquez-Cruz, and many others.
Thanks to J. Marcelino Gonzalez for the first editing works during the process,
Edward Contreras, for the last edition revision, and Delmis Alicea-Segarra for all the
last minute editing and formatting. I also want to thanks my fellow PhD classmates;
George Awor, Chakarin Nick Behrananda, Uddhab Bhandary, Sandra Howard, Joel
Jensen, Caelan McGee, Fidel Santos, Earl Sounders, Melanie Shellenbarger, and
Darcy Varney. And last but definitely not least, 1 want to thanks Kimberly Kelley,
for all the cheerful support and unconditional help during my years in Colorado.
Kim, you are simply the best.


TABLE OF CONTENTS
Figures.........................................................................xvi
Tables...........................................................................xx
Chapter
1. Introduction..................................................................I
1.1 Chapters Introduction....................................................... 1
1.2 How to Define Sub National Regions?.......................................... 1
1.3 Problem: the Absence of an Operational Regional Definition...................4
1.4 Political Structure for Planning in Puerto Rico..............................6
1.4.1 Taxes in Puerto Rico........................................................8
1.4.2 Legal Frameworks for Sustainable Development in Puerto Rico.................8
1.5 Purposes....................................................................12
1.6 Research Questions..........................................................15
1.7 Hypothesis................................................................. 17
1.8 Significance of the Study.................................................. 18
1.9 Research Plan and Methodology.............................................. 18
1.10 Overview of the Dissertation...............................................21
2. Theoretical Literature Review................................................24
2.1 Chapter's Introduction.......................................................24
2.2 Sub National Regions Conceptualization......................................25
vii


2.3 The Pertinence of Economic Development Theories
29
2.4 Economic Development Conceptualization...................................31
2.5 Two Theoretical Approaches: Balanced and Unbalanced.....................32
2.6 Economic Base............................................................36
2.7 Approaches to Economic Development Planning and Implementation..........37
2.8 Agglomeration Economics, Comparative and Competitive Advantage..........42
2.9 Land Use Conceptualization...............................................45
2.10 Ends and Values for Land Use Planning: Sustainable Development.........50
2.11 Sustainable Development Conceptualization...............................53
2.11.1 Carrying Capacity Conceptualization....................................62
2.12 Regional Planning Conceptualization.....................................63
2.13 Governance Conceptualization............................................67
2.14 Examples of Regional Governance.........................................69
2.15 Literature Review Concluding Remarks....................................75
2.16 Conceptual Strategy.....................................................82
2.16.1 On How Regions Work....................................................83
2.16.2 On Economic Development................................................84
2.16.3 On Sustainable Development.............................................84
2.16.4 On Rural and Urban Interactions.......................................85
2.16.5 On Regional Governance................................................87
2.16.6 Conceptual Strategy Concluding Remarks................................87
viii


3. Operational Research Strategy: Methods and Data Collection................89
3.1 Operational Strategy.......................................................89
3.2 Methods....................................................................105
3.3 First Task: Regional Delineation and Characterization.................... 111
3.3.1 Spatial Continuity......................................................112
3.3.2 Centrality and Regional Population Socioeconomic and Demographic
Identity............................................................... 112
3.3.3 Spatial Interaction within the Regions................................. 116
3.4 Second Task: Identification of Potential New Economic Activity........... 122
3.4.1 Characterization of the Regional Economic Performance.....................122
3.4.2 Location Quotients.......................................................122
3.4.3 Employment Multipliers.................................................. 123
3.4.4 Shift Share Analysis.................................................... 123
3.4.5 Employment Projections.................................................. 125
3.5 Third task: Potential Allocation of New Economic Activity.............. 125
3.5.1 Employment Density........................................................125
3.5.2 Available Land........................................................... 126
3.5.3 Allocation Function.......................................................128
3.6 Expert Opinion Survey..................................................... 129
3.7 Data Collection...........................................................131
3.7 .1 First Task: Regional Delineation and Characterization................. 131
IX


3.7.2 Second Task: Identification of Potential New Economic Activity
135
3.7.3 Third Task: Potential Allocation of New Economic Activity..............136
3.7.4 Expert Opinion Survey................................................. 137
3.8 Concluding Remarks..................................................... 139
4. First Task Analysis of Data: Regional Delineation and Characterization...140
4.1 Chapters Introduction...................................................140
4.2 Spatial Continuity......................................................143
4.3 Centrality and Regional Population Socioeconomic and Demographic
Identity................................................................151
4.2.1 Cluster Analysis.......................................................151
4.3.2 Regional Concentration Ratio (RCR).................................... 171
4.3.3 Discriminant Analysis..................................................172
4.3.4 Variable Wise Comparison between Clusters............................ 179
4.3.5 Commuting Flows.......................................................210
4.3.6 Economic Interdependence..............................................237
4.3.7 Pull Factor...........................................................248
4.3.8 Municipal Centrality Comparison.......................................259
4.4 Other Socioeconomic and Regional Characteristics........................262
4.4.1 Correspondence Analysis................................................262
4.4.2 Entropy Index..........................................................276
4.4.4 Regional Employment Characterization...................................276
x


4.4.5 Regional Tourism Characterization.........................................286
4.4.6 Other Regional Attractions................................................295
4.4.7 Expert Opinion Survey for the First Task.................................300
4.5 Concluding Remarks..........................................................303
5. Second Task Analysis of Data: Identification of Potential New Economic
Activity .....................................................................305
5.1 Chapters Introduction......................................................305
5.2 Employment Projections......................................................307
5.3 Location Quotients, Shift Share, and Priority Scores........................308
5.4 Puerto Rico and Regional Economic Performance Characterization..............309
5.4.1 Puerto Rico Economic Performance Characterization.........................310
5.4.2 Aguadilla Regional Economic Performance Characterization.................318
5.4.3 Arecibo Regional Economic Performance Characterization...................326
5.4.4. Carolina Regional Economic Performance Characterization..................333
5.4.5 Fajardo Regional Economic Performance Characterization....................341
5.4.6 Guayama Regional Economic Performance Characterization....................349
5.4.7 Juana Diaz Region Economic Performance Characterization...................356
5.4.8 Mayagiiez Region Economic Performance Characterization....................363
5.4.9 Ponce Region Economic Performance Characterization........................370
5.4.10 San Juan Region Economic Performance Characterization...................377
5.4.11 Vega Alta Region Economic Performance Characterization...................384
xi


5.5 Regional Comparisons in Selected Industries.............................391
5.6 Employment Multipliers..................................................393
5.7 Concluding Remarks......................................................393
6.1 Chapters Introduction..................................................395
6.2 Selection of Employment Categories......................................398
6.3 Employment Density Estimation............................................398
6.4 Employment Growth Projections, Priority Scores, and Space Requirements ... 401
6.5 Regional Land Availability..............................................403
6.6 Industrial Allocation Function..........................................407
6.6.1 Industrial Attractiveness Attributes...................................407
6.6.1 Prescriptive Weights...................................................411
6.6.2 Attractiveness Scores..................................................413
6.7 Land Consumption........................................................415
6.8 Concluding Remarks......................................................432
7. Regional Governing Structures Exploration, and Dissertations Conclusions and
Recommendations........................................................... 433
7.1 Chapters Introduction..................................................433
7.2 Fourth Task.............................................................433
7.2.1 Expert Opinion Survey for the Fourth Task..............................435
7.2.2 Literature Review Findings.............................................447
7.2.3 Regional Governing Structures Delineation..............................451
xii


7.2.4 Governing Structures Comparison and Concluding Remarks..............454
7.3 Other Questionnaire Results...........................................460
7.4 Conclusions and Recommendations.......................................463
7.4.1 Comparison of Regionalization Approaches.............................463
7.4.2 Summary of Findings..................................................476
7.4.3 Recommendations and Further Steps...............................483
7.4.3 Last Comments........................................................495
Appendix
A. Questionnaire and Human Subjects Approval............................497
B. Cluster and Discriminant Analysis Data................................515
C. Huff Probabilistic Model Coeficients..................................521
Bibliography ..............................................................525
xiii


LIST OF FIGURES
Figure
1.1 General Methodological Approach.........................................20
3.1 Task Approach...........................................................99
3.2 Second Task Approach..................................................101
3.3 Third Task Approach.................................................. 103
3.4 Fourth Task Approach..................................................104
4.1 First Task Approach................................................... 142
4.2 Municipalities of Puerto Rico.........................................144
4.3 Major River Basins in Puerto Rico.................................... 145
4.4 Forests and Natural Preservations in Puerto Rico..................... 146
4.5 Agricultural Valleys and Reserves in Puerto Rico......................147
4.6 Census Urbanized Areas in Puerto Rico for the Year 2000.............. 148
4.7 Preliminary Defined Regions in Puerto Rico........................... 149
4.8 Dendogram............................................................ 152
4.9 Municipalities by Cluster............................................ 154
4.10 Agglomeration Schedule Chart.........................................155
4.11 Population...........................................................179
4.12 Population Density.................................................. 180
4.13 Change in Municipal Population...................................... 181
xvi


4.14 Municipal Population as a Percent of Puerto Rico...................182
4.15 Population that Work and Reside in the Same Municipality........... 183
4.16 Travel Time to Work................................................ 184
4.17 Male Unemployment Rate..............................................185
4.18 Female Unemployment Rate............................................186
4.19 Total Unemployment Rate.............................................187
4.20 Poverty Rate........................................................188
4.21 Family Income Ratio................................................ 189
4.22 Income Per Capita...................................................190
4.23 Ninth Grade........................................................ 191
4.24 Some High School................................................... 192
4.25 High School Diploma................................................ 193
4.26 Some College........................................................194
4.27 Associate Degree....................................................195
4.28 Bachelor Degree.....................................................196
4.29 Graduate Degree.................................................... 197
4.30 Agriculture.........................................................198
4.31 Construction........................................................199
4.32 Manufacture.........................................................200
4.33 Retail and Wholesale................................................201
4.34 Education, Health and Public Services...............................202
xvii


4.35 Total Services......................................................203
4.36 Public Administration...............................................204
4.37 Agricultural Occupations............................................205
4.38 Labourer Occupations................................................206
4.39 Precision Occupations...............................................207
4.40 Professional Occupations............................................208
4.41 Service Occupations.................................................209
4.42 Aguadilla Region Correspondence.....................................264
4.43 Arecibo Region Correspondence.......................................266
4.44 Carolina Region Correspondence......................................267
4.45 Fajardo Region Correspondence.......................................268
4.46 Guayama Region Correspondence.......................................269
4.47 Juana Diaz Region Correspondence....................................270
4.48 Mayagiiez Region Correspondence.....................................271
4.49 Ponce Region Correspondence.........................................272
4.50 San Juan Region Correspondence......................................273
4.51 Vega Alta Region Correspondence.....................................274
4.52 Regional Correspondence.............................................275
4.53 Puerto Rico Tourism Areas Map.......................................289
4.54 Tourism Regions Map.................................................290
4.55 Primary and Secondary Roads Map.....................................297
xviii


4.56 Main Ports in Puerto Rico Map........................................299
5.1 Second Task Approach....................................................307
6.1 Third Task Approach.....................................................397
7.1 Fourth Task Approach....................................................435
7.2 Huff Regions with Nine Central Municipalities Map.....................465
7.3 Huff Regions with Six Central Municipalities Map.......................466
7.4 Puerto Rico Urbanized Areas by the US Census of 2000 Map...............466
7.5 Senatorial Districts in Puerto Rico...................................467
7.6 Tourism Regions in Puerto Rico........................................468
7.7 Regions Delineated by the Puerto Rico Highway and Transportation Authority468
7.8 Regions According to the Puerto Rico Planning Board...................469
7.9 Regional Competitiveness Study Regions Map............................470
7.10 Eco Regions Proposed by the Puerto Rican Planning Society............471
7.11 Preliminary Regional Delineation......................................472
7.12 Five Proposed Regions.................................................473
xix


LIST OF TABLES
Table
3.1 Brief methods review..................................................... 106
3.2 Methods by research questions (one)......................................110
3.3 Methods by research question (two).......................................111
3.4 Variable description for cluster and discriminant analysis............... 133
4.1 Municipalities by preliminary region in Puerto Rico.......................150
4.2 Municipalities by cluster................................................ 153
4.3 Agglomeration schedule coefficients.......................................156
4.4 Variable per cluster membership...........................................158
4.5 Cluster categories........................................................159
4.6 Regional concentration ratio..............................................171
4.7 t-test per municipal cluster..............................................174
4.8 Structure matrix..........................................................175
4.9 Eigenvalues...............................................................176
4.10 Classification functions................................................177
4.11 Puerto Rico net workers flow............................................212
4.12 Municipalities with positive net flow...................................214
4.13 Aguadilla region origin destination matrix............................215
4.14 Aguadilla region net workers flow.......................................216
xx


4.15 Areeibo region origin destination matrix................................217
4.16 Areeibo region net workers flow...........................................218
4.17 Carolina region origin destination matrix...............................219
4.18 Carolina region net workers flow..........................................220
4.19 Fajardo region origin destination matrix................................221
4.20 Fajardo net workers flow..................................................222
4.21 Guayama region origin destination matrix................................223
4.22 Guayama net workers flow..................................................224
4.23 Juana Diaz region origin destination matrix.............................225
4.24 Juana Diaz net workers flow...............................................226
4.25 Mayagiiez region origin destination matrix..............................227
4.26 Mayagiiez net workers flow................................................228
4.27 Ponce region origin destination matrix..................................229
4.28 Ponce region net workers flow.............................................230
4.29 San Juan region origin destination matrix...............................231
4.30 San Juan region net workers flow..........................................232
4.31 Vega Alta region origin destination matrix..............................233
4.32 Vega Alta region net workers flow.........................................234
4.33 Interregional origin destination matrix.................................235
4.34 Interregional net workers flow............................................237
4.35 Economic interdependence at the state level...............................239
xxi


4.36 Net earning exporter's municipalities.................................241
4.37 Aguadilla region economic interdependence.............................242
4.38 Arecibo region economic interdependence...............................242
4.39 Carolina region economic interdependence..............................243
4.40 Fajardo region economic interdependence...............................244
4.41 Guayama region economic interdependence...............................244
4.42 Juana Diaz region economic interdependence............................243
4.43 Mayagiiez region economic interdependence.............................245
4.44 Ponce region economic interdependence.................................246
4.45 San Juan region economic interdependence..............................246
4.46 Vega Alta region economic interdependence.............................247
4.47 Inter regional economic interdependence...............................247
4.48 Sales pull factors for all municipalities.............................249
4.49 Municipalities with positive sales pull factor........................251
4.50 Aguadilla region sales pull factors...................................252
4.51 Arecibo region sales pull factors......................................253
4.52 Carolina region sales pull factors.....................................253
4.53 Fajardo region sales pull factors.....................................254
4.54 Guayama region sales pull factors.....................................255
4.55 Juana Diaz region sales pull factor...................................255
4.56 Mayagiiez region sales pull factor....................................256
xxii


4.57 Ponce region sales pull factors.........................................256
4.58 San Juan region sales pull factors......................................257
4.59 Vega Alta region sales pull factors.....................................258
4.60 Interregional sales pull factors........................................259
4.61 Centrality indicator results by municipality............................260
4.62 Municipalities with positive centrality indicators......................262
4.63 Regional inertia and complementarity ratio..............................264
4.64 Entropy index results....................................................276
4.65 Employment by economic sector for the year 2000..........................277
4.66 Regional employment by economic sector as a percent of the regional total
employment................................................................278
4.67 Regional employment by economic sector as a percent of the economic sector
total employment..........................................................279
4.68 Regional tourist attractions.............................................292
4.69 Regional trip generators.................................................297
4.70 Regionalization attributes...............................................302
5.1 Criteria for priority score................................................309
5.2 Puerto Rico employment projections........................................311
5.3 Puerto Rico location quotients............................................313
5.4 Puerto Rico shift share analysis..........................................315
5.5 Puerto Rico priority classification.......................................317
5.6 Puerto Rico priority scores...............................................318
xxiii


5.7 Aguadilla region employment projections......................................319
5.8 Aguadilla region location quotients..........................................321
5.9 Aguadilla region shift share analysis........................................323
5.10 Aguadilla region priority classification......................................325
5.11 Aguadilla region priority scores..............................................326
5.12 Arecibo region employment projections.........................................327
5.13 Arecibo region location quotients.............................................329
5.14 Arecibo region shift share analysis...........................................331
5.15 Arecibo region priority classification........................................332
5.16 Arecibo region priority scores................................................333
5.17 Carolina region employment projections........................................334
5.18 Carolina region location quotients............................................336
5.19 Carolina region shift share analysis..........................................338
5.20 Carolina region priority classification.......................................340
5.21 Carolina region priority scores...............................................340
5.22 Fajardo region employment projections.........................................342
5.23 Fajardo region location quotients.............................................344
5.24 Fajardo region shift share analysis...........................................346
5.25 Fajardo region priority classification........................................348
5.26 Fajardo region priority scores................................................348
5.27 Guayama region employment projections.........................................350
xxiv


5.28 Guayama region location quotients.............................................352
5.29 Guayama region shift share analysis...........................................354
5.30 Guayama region priority classification........................................355
5.31 Guayama region priority scores................................................356
5.32 Juana Diaz region employment projections......................................357
5.33 Juana Diaz region location quotients..........................................359
5.34 Juana Diaz region shift share analysis........................................361
5.35 Juana Diaz region priority classification.....................................362
5.36 Juana Diaz region priority scores.............................................363
5.37 Mayagiiez region employment projections.......................................364
5.38 Mayagiiez region location quotients...........................................366
5.39 Mayagiiez region shift share analysis.........................................368
5.40 Mayagiiez region priority classification......................................369
5.41 Mayagiiez region priority scores..............................................370
5.42 Ponce region employment projections...........................................371
5.43 Ponce region location quotients...............................................373
5.44 Ponce region shift share analysis.............................................375
5.45 Ponce region priority classification..........................................376
5.46 Ponce region priority scores..................................................377
5.47 San Juan region employment projections........................................378
5.48 San Juan region location quotients............................................380
xxv


5.49 San Juan region shift share analysis........................................382
5.50 San Juan region priority classification.....................................383
5.51 San Juan region priority scores.............................................384
5.52 Vega Alta region employment projections.....................................385
5.53 Vega Alta region location quotients.........................................387
5.54 Vega Alta region shift share analysis.......................................389
5.55 Vega Alta region priority classification....................................390
5.56 Vega Alta region priority scores............................................391
5.57 Regional employment multipliers.............................................393
6.1 Employment categories with positive growth from 1990 to 2000 in Puerto Rico398
6.2 Regional employment density (in square meters)..............................400
6.3 Space requirements for potential employment growth..........................402
6.4 Estimated available land (absolute value)....................................405
6.5 Estimated available land (relative value)....................................406
6.6 Attractiveness attributes measurement........................................408
6.7 Industrial attractiveness attributes per region.............................409
6.8 Standardized industrial attractiveness attributes per region................410
6.9 Prescriptive weights per industrial attractiveness attribute.................412
6.10 Regional attractiveness scores per employment categories....................414
6.11 Forecasted land consumption for construction in 2010........................415
6.12 Forecasted land consumption for retail trade in 2010........................416
xxvi


6.13
6.14
6.15
6.16
6.17
6.18
6.19
6.20
6.21
6.22
6.23
6.24
6.25
6.26
6.27
6.28
6.29
6.30
Forecasted land consumption for management of companies and enterprises in
2010...................................................................416
Forecasted land consumption for educational services in 2010...........417
Forecasted land consumption for other services in 2010.................417
Forecasted land consumption for professional, scientific and technical services in
2010.......................................................................418
Forecasted land consumption for administrative, support, and waste management
services in 2010............................................................418
Forecasted land consumption for health care and social assistance in 2010 ..419
Forecasted land consumption for arts, entertainment, and recreation in 2010.419
Forecasted land consumption for accommodation and food services in 2010.420
Forecasted land consumption for finance and insurance in 2010..........420
Forecasted land consumption for construction in 2015...................421
Forecasted land consumption for retail trade in 2015...................421
Forecasted land consumption for management of companies and enterprises in
2015........................................................................422
Forecasted land consumption for educational services in 2015...........422
Forecasted land consumption for other services in 2015.................423
Forecasted land consumption for professional, scientific, and technical services
in 2015.....................................................................423
Forecasted land consumption for administrative, support, and waste management
in 2015.....................................................................424
Forecasted land consumption for health care and social assistance in 2015 .... 424
Forecasted land consumption for art, entertainment, and recreation in 2015... 425
xxvn


6.31 Forecasted land consumption for accommodation and food services in 2015.425
6.32 Forecasted land consumption for finance and insurance in 2015........426
6.33 Forecasted land consumption for construction in 2025.................426
6.34 Forecasted land consumption for retail trade in 2025.................427
6.35 Forecasted land consumption for management of companies and enterprises in
2025..................................................................427
6.36 Forecasted land consumption for educational services in 2025.........428
6.37 Forecasted land consumption for other services in 2025...............428
6.38 Forecasted land consumption for professional, scientific, and technical services
in 2025...............................................................429
6.39 Forecasted land consumption for administrative, support, and waste management
in 2025...............................................................429
6.40 Forecasted land consumption for health care and social assistance in 2010 .. 430
6.41 Forecasted land consumption for arts, entertainment, and recreation in 2025.430
6.42 Forecasted land consumption for accommodations and food services in 2025 431
6.43 Forecasted land consumption for finance and insurance in 2025..........431
6.44 Potential economic activity land consumption from 2010 to 2025.........432
7.1 UN 2008 governance indicators for selected places.........................458
7.2 UN governance indicators for Puerto Rico per year........................459
7.3 Residential attractiveness...............................................460
7.4 Question five resulting scores...........................................462
7.5 Comparison of alternative regionalization approaches.....................475
XXVUl


B. 1 Data for in cluster analysis (variables from 1 to 10).............................515
B.2 Data for in cluster analysis (variables from 11 to 20).............................517
B. 3 Data for in cluster analysis (variables from 21 to 31)...........................519
C. l Huff probabilistic model coefficients by central municipality (nine centers).... 521
C.2 Huff probabilistic model coefficients by central municipality (six centers)....523
xxix


1. Introduction
1.1 Chapters Introduction
This research is about the regional delineation process. The lack of an
operational regional definition is a problem in performing economic development and
land use planning at the regional level. Sub national regions, or regions viewed as an
intermediate entity between the national (the state) and the local (the municipality)
are the heart of regionalism. The proposed approach is based on the concepts of
continuity, identity, and centrality, as explained later within this research. This
research particularly deals with the regional delineation and characterization process,
the identification of potential new economic activity, and its potential allocation.
This research also briefly explores regional governing structures, and compares
alternative approaches to regionalization. Furthermore the resulting regionalization
approach is framed in the goals of sustainable development.
1.2 How to Define Sub National Regions?
Since the late 19th century, sub national regions, or simply regions, have been
a subject of study within economic development and planning. From Geddes and
Howard, to Isard and Alonso (as well as Castells, Harvey, and Calthorpe), regions are
studied from various perspectives (Wheeler, 2002). The first concerns about regions
were related to the quality of the environment. In the 1950s, mathematical models
1


and computer-based simulation made regional analysis more comprehensive. Clark
(1978) suggests that regions are formal or functional in character. Whereas the
formal ones are legally demarcated, the functional region could be explained in terms
of trade and travel (internal flows).
Sub national regions, at base, are composed of a complex set of social
relations surrounding the use of land and resources, and the management of their
respective economies. Dawkins (2003) argues that there are many ways to define a
region. A region supposes at least the existence of cohesive geographic and
economic relations within its territory. These relations can be explained describing
the interactions within the region, or measuring the internal flows. Some theories
define the region by its (economic and transportation related) activities, relating these
activities to the presence of hierarchies and the existence of a central city as the head
of the region (central place theory). This is similar to Parr concept of the city-region,
which the author defined as ... comprising two distinct but interrelated elements:
the city (sometimes a regional or national metropolis), possessing some specified set
of functions or economic activities; and a surrounding territory, which is exclusive to
the city in question1 (Parr, 2005, p. 556). Thus, the criterion of centrality is essential
to understand and define any regionalization process. Regions could be multiple-
nuclei, that is, with more than one central place of importance (i.e., two or more
1 Parr (2(X)5, P. 562-564) identified four different conceptualizations of the City Region. Those are
the official region, the sub-region, the functional urban region originally termed by Berry et al. (1968)
the functional economic area (ibid 563), and the extended metropolitan area.
2


major cities) often with different industry mixes. Such regions are known as
polycentric regions. Meijers (2005) defined polycentric urban regions ... as
collections of historically distinct and both administratively and politically
independent cities located in close proximity and well connected to infrastructure
(ibid, P. 765). Another conceptualization of the region is the nodal region. This
region is characterized as one with a spatially interdependent labor market. Dawkins
(ibid) refers to Hoover and Giarratani (1985), who suggest that nodal regions have
two characteristics. The first is that regions are functionally integrated to the extent
that labor, capital or commodity exchanges are more common within, rather than
across, regions. The second characteristic is that, within regions, activities are
oriented toward a single point, or node, where a presumption of nodal dominance
exists in relation to peripheral areas Political regions are defined by boundaries (or
limits) with identifiable populations determining the formation of politically-distinct
areas; indeed, it is the same as the formal region defined by Clark (1978).
Another way to define a region is in relation to its natural resources,
ecosystem, and other natural/environmental features that are available within its
limits. A more complete definition of a region, is that of a
"...spatially continuous population (of human beings) that is hound
either by historical necessity or by choice to a particular geographic
location. The dependence on location may arise from a shared 2
2 Moreover. Meijers (2005) argued that "The cities making up a polycentric urban region can be
considered the nodes in a network that is further made up by infrastructure, interurban relationships
and flows (ibid, P. 768).
3


attraction to local culture, local employment centers, local natural
resources, or other location-specific amenities, (Dawkins 2003).
Under this definition, the criterion of contiguity is fundamental as is manifestly
evident in any regionalization process. The second sentence emphasized the
importance of regional identity in the regionalization process. So it seems that
continuity, centrality and identity are the three general criteria that lend to conspire to
define or describe a region.
Understanding the term region is of vital importance to planning. The more
inclusive the definition of region is, the more comprehensive the regional planning
process should be. Hence, the outcomes of regional planning processes depend on
how a region is defined and how many regional attributes are taken into
consideration3.
1.3 Problem: the Absence of an Operational Regional Definition
The lack of an operational regional definition is a problem in performing
economic development and land use planning at the regional level. Sub national
regions, or regions viewed as an intermediate entity between the national (the state)
and the local (the municipality) are at the heart of regionalism. Authors like
Krugman (1995, 2000), Porter (2003), Parr (2005) and Karlsson and Olsson (2006),
as many others, recognized the importance of regions and geographical concentration
3As Parr (2005) states: The importance of the City-Region as an organizing element in the space
economies of development nations has long been recognized, (p. 556)
4


for many reasons4. On the other hand, Meijers (2005) argued about the importance of
regionalism particularly for small countries, stating that Polycentric urban regions
are believed to be the next stage in the expansion of urban living space, particularly in
densely populated countries or regions (ibid, P. 765). The main argument for
regionalization is that tri-partite regional planning hierarchies (national, regional
and local), are needed to deal with many dimensions of planning that can be
understand only at the regional scope. As Parr (2005) stated,
"As an open economic system, the City-Region provides a sub-national
framework level for approaching both the spatial organization of the economy
and the manner in which this evolves. The City-Region thus represents an
important intermediate scale between the city or the metropolitan area and
the nation5" (ibid, P. 564).
On the other hand, Porter (2003) asserts that ... many of the essential
determinants of economic performance are to be found as the regional level 6 (ibid,
4 Citing Karlsson and Olsson (2006):
According to Krugman (1991), geographical concentration is the most striking
feature of economic reality. Consumers daily activities, including work, tend to he
performed dose to their residence. Finns hire workers living relatively close to the
firm, buy services from firms located nearby and often sell their products in close
proximity", (ibid, 2006 p. I)
5Moreover, Parr made his case explaining that in the UK, there are three sets of influences behind
interest in the City-Region. First, the fact that the city is becoming an outmoded entity, second, that
the central state is too detached, too unwieldy or to insensitive for the efficient and effective delivery
of certain kinds of services and third, the emergence of the so called new regionalism' and the
attention on the region as a scale for intervention and regulation. (Parr, 2005, p. 556)
hMoreover, the context in which Porter (2003) explained the idea is as follows:
"Studies of competitiveness and economic development have tended to focus on the
nation as the unit of analysis, and on national attributes and policies as the drivers.
... [Tjliere are sub spatial differences in economic performance across regions in
virtually every nation. This suggests that many of the essential determinants of
economic performance are to be found as the regional level", (ibid, p. 550)
5


p. 550). Appropriate regionalization constitute an essential bridge between local and
national policy development, facilitate the management of inter-local externalities at
the sub-national level, and situate policy debates at a more appropriate scale. In so
doing, moreover, local decision-making can be made to be more consonant with
regional requirements. The sub national regional approach I will propose here insures
that the institutional geography of planning is consonant with the geography of the
phenomena we seek to manage. Two main issues arise: How to define (or to
delineate) regions in order to provide this essential bridge between local and national
economic development and land use policy development? And, do countries need a
regional governing structure to guide the economic development and land use
planning and implementation?
1.4 Political Structure for Planning in Puerto Rico
Puerto Rico is a Commonwealth with the United States of America (USA).
Puerto Ricos government is based on the republican model of government, with the
division of the three powers; executive, legislative, and judicial. Two formal levels of
executive powers are under the Commonwealth jurisdiction; the state level or the
central government, represented by the governor, and the local level or municipalities,
represented by the mayor. Within the executive branch is the Puerto Rico Planning
Board (JPPR by its Spanish acronym). In the municipalities the executive powers
resides in the Mayor.
6


The planning and decision making processes related to land use and economic
development in Puerto Rico are performed at the municipal and the state level. At the
municipal level, once the Plan de Ordenacion Territorial (Growth Management
Plan) is approved by the Puerto Rico Planning Board (JPPR, by its Spanish acronym);
the municipality itself is afforded autonomy in decisions regarding land use within its
own territory. Not all the municipalities are autonomous, but most of them are in the
process of preparing those plans. At the state level, related processes are overseen by
many governmental agencies. Some of the agencies responsible for land use planning
in Puerto Rico are the Puerto Rico Planning Board (JPPR by its Spanish acronym),
the Regulations and Permits Administration (ARPE by its Spanish acronym), the
Department of Transportation and Public Works (DTOP by its Spanish acronym) and
the Department of Environmental and Natural Resources (DRNA by its Spanish
acronym), with some involvement by the Departments of Agriculture and Housing.
On the other hand, the economic development planning and decision making
is performed by or influenced by many agencies, such the JPPR, The Department of
Economic Development and Commerce (DDEC) and it dependencies, the Fiscal and
Financial Agent (AFF by its Spanish acronym) and it dependencies, mostly the
Governmental Bank of Promotion (BFG by its Spanish acronym) and the Puerto Rico
Industrial Development Company (PRIDCO). What is already clear is that for
maximum effectiveness these must act in concert, and such an orchestration requires
7


uniform agreement about both the content and geographic of strategic development
plans.
The power for implementation and decision making resides in the central
government, represented by the governor. In some instances it is delegated to the
departments secretaries and the chiefs of the pertinent agencies. At the municipal
level are the Mayor and the pertinent offices of the City Hall. At the regional level,
JPPR is in charge of the regional planning processes that should guide the preparation
of the municipal Growth Management Plans.
1.4.1 Taxes in Puerto Rico
The aim of this section is to provide a brief description of the taxing system
in Puerto Rico. One way countries use to generate revenue for the payments of the
operations and the many services the government provides to its citizens is through
the collection of taxes. Apart from the U.S. federal payroll taxes, such as Social
Security and Medicare, there are many forms of taxes in Puerto Rico. Three main
categories of taxes are collected in the Commonwealth, the income tax, the property
tax, and the sales tax. The income taxes, both corporate and personal, are collected at
the state level. Property taxes and municipal license taxes (for businesses to have
permission to operate) are collected at the municipal level. Sales taxes are collected at
both levels, being the rate greater at the state level.
1.4.2 Legal Frameworks for Sustainable Development in Puerto Rico
In Puerto Rico there are three laws of particular interest to this dissertation.
8


related to the regulation of the use of land and the promotion of sustainable
development. The three laws are first, law number 550 of October 3, 2004, named
Ley para el Plan de Uso de Terrenos del Estado Libre Asociado de Puerto Rico
(Land Use Plan for the Commonwealth of Puerto Rico Law); second, law number 81
of August 30, 1991, named the Ley de Municipios Autonomos de Puerto Rico
(Puerto Ricos Autonomous Municipalities Law); and third, law number 292 of
August 21, 1999, named Ley Para Proteger, Conservar y Prohibir la Destruccion de
la Fisiografia Carsica de Puerto Rico (Law to Protect, Conserve, and Prohibit the
Destruction of the Karst Physiography in Puerto Rico).
The public policy under the first one, the Land Use Plan Law, dictates the
promotion of the elaboration of the land use plan as the main planning instrument to
propitiate sustainable development and the optimal use of the land, based on a
comprehensive approach, social justice, and the broad participation of all sectors in
the society. The vision is stated as follows:
In the year 2025 we will be a people that develop its potential and aspirations with:
Healthy natural systems with the capacity to sustain life in all its forms.
An advanced economy, based in knowledge and inserted effectively in the
global economy
A just society, responsible and safe and with solidarity, who promotes
equity and inclusion values and the appreciation for the intellectual and
artistic tasks.
9


Free and democratic participation in the fundamental decision making
about their political condition and its relations with other people of the
world based on equality, dignity, and mutual respect in order to strengthen
the economic development, social, environmental and cultural, and a
productive insertion in global interchange (translation mine).
The general objectives of the Land Use Plan Law are the following:
Evaluate the actual socioeconomic and physical condition, the factors that
formed, and the tendencies that will be determinants in the country
development to identify the conflicts, challenges, and opportunities about
the land use in Puerto Rico.
Classify and order the territory defining the areas as urban, developable,
and rustic, with special designation, or developed in the country-side with
the end of meet conflicts, overcome challenges, and maximize the use of
the land.
Establish public policies and norms to govern the land use by
classification type.
Develop evaluation and control mechanisms for the adequate
implementation of the Puerto Rico Land Use Plan. (Translation mine).
The public policy under the second law, the Autonomous Municipalities Law,
dictates that the central government should grant the municipalities the maximum
possible autonomy, and to provide them with the finance tools, powers, and faculties
10


necessary to assume a central role in the municipal urban, social, and economic
development. Explicitly there is the aim for the transfer of power from the state to
the municipality for economic development, growth management, and land use
planning. Among other things, the law recognized the scarcity of land in Puerto Rico.
There is a mandate under the law to prepare a municipal Plan de Ordenacion
Territorial (territorial ordering plan, similar to a growth management plan). The
municipalities that become autonomous should promote a rational, comprehensive,
development process guided by a plan. Once the municipalities complete the
planning process and the Puerto Rico planning Board approves them, then the
municipalities become autonomous. In chapter eight of the law it dictates that it is
public policy to promote the public participation in the preparation of the plans. It is
obligatory for the municipality to provide all the information necessary for the
citizens to participate in equal conditions during the planning process. Among other
things, the Autonomous Municipalities Law promotes the compact and intensive land
use, the social and economic development of the municipality, and the conservation
of land for potential agricultural use, recreation, and ecological reasons.
The public policy under the third law, the Karst Law, dictates the protection,
conservation, and management of the karst physiography of Puerto Rico for the
benefit of this generation and the future ones. The law recognizes the importance of
these zones because within its territories are located and characterized by
underground water reserves, many habitats and species, agricultural potential and


capacities, recreational and tourist potential, and natural qualities. The law
recognizes those zones as Puerto Ricos most valued non-renewable natural resource.
1.5 Purposes
The purpose of this research is to contribute to a better understanding of the
nature of sub national regions, in order to design an approach for the delineation of
functional regions with the purpose of harmonizing economic development and land
use. The approach must take into account the spatial continuity of the natural
resources, agricultural reserves, and urbanized areas; the socioeconomic and
demographic identity of the regions; and the political functional centrality of the
municipalities that are located within the regional territory. Also the approach must
identify and allocate the potential sub regional industrial growth considering the basic
elements of sustainability. The approach at least should provide the building blocks
for the delineation of regional governing structures for regional planning. In other
words, the aim is to design a procedure to delineate regions in service of the multiple
purposes of regional planning, specifically economic development and land use
planning, with full regard for the manner in which growth and change impact people,
places and economic sectors. This research seeks to formulate a manner of
intervention in the spatial and temporal processes of economic development within
and among sub national regions that compose the sub national interregional system.
Initial delineation of sub national regions is based on intrinsic social,
economic, land use and environmental qualities in each such place, and with the
12


potential for interaction with the remainder of the sub national regional system. But
once such delineation is achieved, the policy task becomes one of calibrating
economic activity in each such region with both its own internal capacities, and with
the opportunities for interaction with the other such regions.
The initial step in this research will be to assure the contiguity of natural
featuresforest lands, coast lines, agricultural land, and perhaps most importantly
river basins and tributary systemsin shaping sub-national regions for planning
purposes. An urban- centered regionalization based on centrality and identity will be
a second step. The characterization of the municipalities within the regions is the key
for the identification of the central most ones. The interactions between people and
sectors in places, taking into consideration internal constraints (carrying capacities)
constitutes an important role on the analysis. Those interactions, along with the
physical and human characteristics of a region are essential to know the potentials of
the regions for future development. Overall I advance from delineation of boundaries
using GIS, to classify these bounded spaces using cluster and discriminant analysis.
This dissertation faces two main issues: first, the regional delineation and
second, the prescription of economic activity. By regional delineation, I am referring
to the existing spatial features, both natural and created, and the processes (activities
and flows) that occur within the sub regions that gave them character. Regional
delineation, as stated before, is achieved considering the criteria of continuity,
centrality, and identity. Continuity refers to the consideration for regional delineation
13


of main natural and created spatial characteristics, such as the river basins,
agricultural land, and forests and natural reserves, and urbanized areas. Centrality
refers to the interaction within and amongst regions, measured as flows, and the
identification of inter and intra regional core periphery behavior. Identity refers to
the sub regional socioeconomic and demographic characteristics.
The prescription of economic activity issues consists of two parts, which are
recommendations regarding the what and where of economic development: what
economic sectors to promote, or how best to pick or target lead sectors within the
regional economies; and where to locate the targeted sectors, or how best to apportion
the potential growth within the island regions. In other words, the design of the
strategy should consider not only means for regional delineation, but also how the
results of regional identification feed into an eventual prescription that suggests both
what economic activities are most promising in building the economy, and where
these activities should be placed, grounded in the knowledge of experts.
Above all, I am interested in determining both a method for achieving these
results and the application of this method in making prescriptive recommendations
regarding the what and where of economic development in Puerto Rico which is
the case study. The basic challenge is to link land use and economic development in
prescribing a trajectory for growth in the regions of Puerto Rico.
This dissertation also addresses briefly the basic topics of spatial governing
hierarchies, specifically regional governance, in order to recommend possible
14


governmental arrangements for the implementation of a regionally sustainable
economic development strategy.
This dissertation covers the multiple purposes of research: exploration,
description, and explanation. As a planning dissertation, it also covers the issue of
prescription.
1.6 Research Questions
Due to the nature of this dissertation, which serves the multiple purposes of
research, many questions are raised. The aim is to devise a way to harmonize
economic development and regional land use planning. That is, to devise an
approach that would allow policy-makers and planners on the island to plan and make
decisions considering that harmony. This is not the traditional research. The main
objective is not to test a hypothesis per se. Rather 1 am seeking to recommend an
approach with which to promote that harmony. The basic challenge is to link land
use and economic development in prescribing' a trajectory for growth in sub
regions. The basic question is how to regionalize? First the regionalization process
could examine the process and non-administrative aspects of regions, like how the
regions work, or what happens inside its territory. On the other hand, the regions
could be delineated so as to mesh with how policy is generally implemented within its
territory. Two conceptual research questions are formulated. The First one,
associated to the processes and non- administrative aspects of regions is: How to
define regions in order to provide this essential bridge between local and national
15


economic development and land use policy development? The second one,
associated to how the region mesh with how policy is generally implemented in a
particular region is: Do countries need regional governing structures to guide the
economic development and land use planning and implementation? The main focus
and the greatest efforts in this dissertation are related to answer the first central
question. The second question is not least important, but will be treated in less detail
than the first one, as a final comment to frame some of the final recommendations.
The next operational questions are raised in order to address the two conceptual
questions:
Operational questions related to the first conceptual question:
1. What criteria should be considered in regional delineation?
2. How important are those regional delineation criteria?
3. One of the many aspects of the problem is of classification. How to classify
the sub regional components in order to achieve a better understanding of the
regional composition?
4. How and what tools can be used to describe the regions?
5. How to prescribe new potential economic activity to the designed regions?
6. How to select leading economic sectors?
7. How to apportion the prescribed new economic activities to a particular
region?
16


8. How important is a particular attribute for the allocation of a particular
economic sector in a place?
9. How much land is available for the spatial allocation of the potential
economic activity?
10. What land (if any) should be protected for conservation, or separated for any
particular use?
Operational questions related to the second conceptual question:
1. Regarding the case study, who or what institutions have the political power
for the implementation of economic development and land use plans in the
regions and in the municipalities of Puerto Rico?
2. Is regional planning in Puerto Rico top down or bottom up?
3. What (if any) kind of governing structures should be considered for
regionalization?
1.7 Hypothesis
Due to the nature of this dissertation, which serves the multiple purposes of
research, most of the questions are not answered by the classic explanatory deductive
approach. This research, as stated before, serves the purposes of exploration,
description, explanation, and prescription.
For the explanatory purpose, a hypothesis can be made in relation to the
application of a cluster and discriminant analysis, a tool latter applied in this work as
part of the many methods to used to delineate regions. The application of the cluster
17


and discriminant analysis is in part to classify the municipalities, which are the main
operational components of a region. The variables that feed the cluster and
discriminant analysis are socioeconomic and demographic characteristics of the
municipalities. The classification is based on the assumption that the municipalities
are heterogeneous, or different in nature. These differences should be acknowledged
for future economic development and land use policy prescription. The null
hypothesis is that the municipalities of Puerto Rico are homogeneous. Logically the
alternate hypothesis is that the municipalities of Puerto Rico are heterogeneous (not
homogeneous).
1.8 Significance of the Study
The value-added in this work will be a methodology for the definition of sub
national regions within the overall system of sub national regions most able to
facilitate the fashioning of developmental objectives that are consonant with regional
capacities and interregional developmental opportunities. The results based on Puerto
Rico, the prime case study, should be of considerable utility to understand in general
the nature of the regionalization process. The work concludes with a set of
prescriptions regarding both the means for sub-national regionalization and for the
implementation of tri-partite spatial planning hierarchies.
1.9 Research Plan and Methodology
In methodological terms, this dissertation is a pragmatic effort to achieve
usable results for a better understanding of the sub regional processes that need to be
18


considered for the purposes of sub regional economic development and land use
planning. It uses both sequential and concurrent procedures; and quantitative and
qualitative analysis to achieve the results. The general approach to this research is
planned as shown on figure 1.1.
19


Figure 1.1 General Methodological Approach
20


1.10 Overview of the Dissertation
The content of this section is a brief description of the chapters that compose
this work. The chapters are as follows:
Chapter one: introduction This chapter begins with the statement of the
problem, followed by a brief discussion on how to define regions. The
chapter also addresses the purposes that serve this dissertation, the political
structure and legal framework for planning in the case study, the research
questions, the hypothesis, and the significance of this research, the research
plan and methodology, and an overview of the dissertation. In terms of the
general methodological approach, this chapter serves the purposes of boxes
one, two and three.
Chapter two: theoretical literature review This chapter briefly accounts the
general definitions and theory to delineate the research strategy. Many topics
are explained to bring a theoretical ground for the strategy. The topics briefly
reviewed in this theoretical literature review are the conceptualization of
regions, economic development, land use, sustainable development, and
carrying capacity, regional planning, and governance. Regarding more
specific concepts in the chapter are reviewed the pertinence of economic
development theories, and the main theoretical approaches: balanced and
unbalanced; the economic base theory; approaches to economic development
planning and implementation; agglomeration economics, comparative and
21


competitive advantage; and the ends and values in land use planning; and
regional examples of governance. The chapter also includes the dissertations
conceptual strategy. In terms of the general methodological approach, this
chapter serves the purposes of box 4, particularly the theoretical literature
review.
Chapter three: operational research strategy, methods, and data collection -
The chapter begins with the delineation of the operational strategy, as divided
in three main tasks. It is followed by a brief literature review on the specific
methods to achieve a particular task. The chapter also includes the data
sources and collection, the population and sampling for the expert opinion
survey, and the human subjects protection. In terms of the general
methodological approach, this chapter serves the purposes of box four,
particularly the methodological literature review; and boxes five and six (all
of them).
Chapter four: data analysis for the first task In this chapter is presented the
results of the application of the methods pertaining to the first task. The first
task is the sub regional delineation and characterization. In terms of the
general methodological approach, this chapter serves the purposes of box
seven, specifically the application of the first task.
Chapter five: data analysis for the second task This chapter presents the
results of the application of the methods pertaining to the second task. The
22


second task is the identification of new potential economic activity. In terms
of the general methodological approach, this chapter serves the purposes of
box seven, specifically the application of the second task.
Chapter six: data analysis for the third task This chapter presents the results
of the application of the methods pertaining to the third task. The third task is
the potential allocation of new economic activity. In terms of the general
methodological approach, this chapter serves the purposes of the box seven,
specifically the application of the third task.
Chapter seven: fourth task, conclusions, and recommendations In this
chapter are presented the results from the fourth task, which is the regional
governing structures exploration, along with the conclusions and
recommendations resulting from this research. A summary of findings is
included in the chapter. Recommendations were made about the regional
delineation in the case study, along with a section of further steps, related on
how to improve the regional delineation process. In terms of the general
methodological approach, this chapter serves the purposes of box seven,
specifically the application of the fourth task, and box eight.
23


2. Theoretical Literature Review
2.1 Chapter's Introduction
The lack of an operational regional definition is a problem in performing
economic development and land use planning at the regional level. Sub national
regions, or regions viewed as an intermediate entity between the national (the state)
and the local (the municipality) are the heart of regionalism. The main argument for
regionalization is that tri-partite regional planning hierarchies (national, regional
and local), are needed to deal with many dimensions of planning that can be
understood only at the regional scope. Appropriate regionalization constitutes an
essential bridge between local and national policy development, facilitate the
management of inter-local externalities at the sub-national level, and situate policy
debates at a more appropriate scale. Moreover in doing so, local decision-making can
be achieved to be more consonant with regional requirements. The regional approach
that I propose insures that the institutional geography of planning is consonant with
the geography of the phenomena we seek to manage.
The purpose of this research is to contribute to a better understanding of the
nature of sub national regions, in order to design an approach for the delineation of
functional regions with the purpose of harmonizing economic development and land
use. The aim is to design a procedure to delineate regions in service of the multiple
24


purposes of regional planning, specifically economic development and land use
planning, with full regard for the manner in which growth and change impact people,
places and economic sectors. This research seeks to formulate a manner of
intervention in the spatial and temporal processes of economic development within
and among sub national regions that compose the sub national interregional system.
In order to understand economic development and land use theories and
practices in regards to regional change, various topics were identified and reviewed in
this chapter. The topics briefly reviewed in this theoretical literature review are the
conceptualization of regions, economic development, land use, sustainable
development and carrying capacity; the pertinence of economic development theories,
and the main theoretical approaches: balanced and unbalanced; the economic base
theory; approaches to economic development planning and implementation;
agglomeration economics, comparative and competitive advantages; and the ends and
values in land use planning, regional planning, and governance.
2.2 Sub National Regions Conceptualization
Sub national regions, at base, are composed of a complex set of social
relations surrounding the use of land and resources, and the management of their
respective economies. Dawkins (2003) argues that there are many ways to define a
region. A region supposes at least the existence of cohesive geographic and
economic relations within its territory. These relations can be explained describing
the interactions within the sub region, or measuring the internal flows. Parr (2005, p.
25


558) distinguished three types of flows, those are trade flows, labor-market flows
(commuting flows), and capital movement flows. Some theories define the region by
its (economic and transportation related) activities, relating these activities to the
presence of hierarchies and the existence of a central city as the head of the region
(central place theory). This is similar to Parrs concept of the City-Region, which he
defined as ... comprising two distinct but interrelated elements: the city, possessing
some specified set of functions or economic activities; and a surrounding territory,
which is exclusive to the city in question7 (Parr, 2005, p. 556). Thus, the criterion of
centrality is essential to understand and define any regionalization process. Regions
could be multiple-nuclei, that is, with more than one central place of importance (i.e.,
two or more major cities) often with different industry mixes. Such regions are known
as polycentric regions. Meijers (2005) defined polycentric urban regions ... as
collections of historically distinct and both administratively and politically
independent cities located in close proximity and well connected to infrastructure
(ibid, P. 765). Another conceptualization of the region is the nodal region. This
region is characterized as one with a spatially interdependent labor market. Dawkins
(ibid) refers to Hoover and Giarratani (1985), who suggest that nodal regions have
two characteristics. The first is that regions are functionally integrated in ways that
labor, capital, or commodity exchanges are more common within, rather than across,
7 Parr (2005, P. 562-564) identified ...four quite distinct visions of what constitutes a City Region.
Those are the official region, the sub-region, the functional urban region originally termed by Berry et
al. (1968) the functional economic area (ibid 563), and the extended metropolitan area.
26


regions. The second characteristic is that activities are oriented toward a single point
or node within regions, with a presumption of nodal dominance in relation to
o
peripheral areas Political regions are defined by boundaries (or limits) with
identifiable populations determining the formation of politically-distinct areas;
indeed, it is the same as the formal region defined by Clark (1978).
Another way to define a region is in relation to its natural resources,
ecosystem, and other natural/environmental features that are available within its
limits. A more complete definition of a region, is that of a
...spatially continuous population {of human beings) that is
bound either by historical necessity or by choice to a particular
geographic location. The dependence on location may arise from a
shared attraction to load culture, load employment centers, local
natural resources, or other location-specific amenities, (Dawkins
2003, p. 134).
Under this definition, the criterion of spatial continuity is fundamental as is
manifestly evident in any regionalization process. The second sentence emphasized
the importance of regional identity in the regionalization process. So it seems that
continuity, centrality and identity are the three general criteria that tend to conspire to
define or describe a region.
Understanding the term region is of vital importance to planning. The more
inclusive the definition of region is, the more comprehensive the regional planning *
s Moreover, Meijers (2005) argued that The cities making up a polycentric urban region can be
considered the nodes in a network that is further made up by infrastructure, interurban relationships
and flows (ibid, p. 768).
27


process should be. Hence, the outcomes of regional planning processes depend on
how a region is defined and how many regional attributes are taken into
consideration9.
Hoover and Giarratani (1999) classify the activities that occur within a region
in terms of three kinds of relations: vertical (attraction), horizontal (repulsion) and
complementary. Vertical relations occurs when outputs of one activity are inputs to
another activity, transfer costs are reduced by the proximity of the two activities, and
the presence of either of these activities in a region enhances to some degree the
regions attractiveness as a location for the other activity (ibid, p. xx). Horizontal
relationships involve the competition of activities, or units of activity, for either
markets or inputs (ibid, p. xx). These concepts of attraction and repulsion are
similar to the centripetal and centrifugal forces explained by Krugman (1998)10.
Complementary relations are those whereby an increase of one activity in a region
encourages the growth of a complementary activity. Such relations are
interdependencies within a region, primarily of an economic character, representing
linkages. Such linkages could be forward and backwards, and are considered
externalities, either positive or negative. In a similar reasoning, Meijers (2005)
9As Parr (2005) states: The importance of the City-Region as an organizing element in the space
economies of development nations has long been recognized, (p. 556)
10 Marquez (et al. 2006) refers to Krugman (1998) explaining that there are different forces affecting
regional evolution. Those forces are centripetal forces (market size effects, thick labor markets, pure
external economies) and centrifugal forces (immobile factors, land rents, and pure external
diseconomies).
28


argued that the relations in a region (which he describes as synergy in polycentric
urban regions) are generated via co-operation and complementarity. Meijers (ibid)
defined co-operation as the regional organizing capacity or frameworks for co-
operation and their functioning leading to horizontal synergy (ibid, p. 770), and
complementarity as the differentiation in the economic roles of cities, in urban
facilities, in business and residential milieus coupled with a regional demand leading
to vertical synergy11 (ibid, P. 770) arguing that complementarity leads to spatial
interaction.
2.3 The Pertinence of Economic Development Theories
This section briefly reviews some mainstream economic development
theories. It does not pretend to be exhaustive; rather, it seeks to provide only that
which is necessary to demonstrate under which theoretical principles the average
economic developer operates. There is a disconnection between economic
development theory and the daily practice, primarily in regards to recommendations
for implementation. Another disconnection occurs when projects appear
spontaneously, in trial and error fashion, or when they merely respond to particular
"Moreover, the author explained that:
"For activities and places to be complementary, they need to satisfy two
important preconditions relating to supply and demand
a. There must be differentiation in the supply of activities and/or
places.
b. The geographical markets of demand for these activities or
places must at least partly overlap". (Meijers, 2005 p. 769)
12 For a detailed discussion of economic development and regional theories, see Clark (1978), Malizia
and Feser (1999), Dawkins (2003) and Krugman (el. al., 2000).
29


interests without formal analysis, that is, chosen using incomplete analysis and
criteria. To avoid this situation, economic development theory attempts to be varied
and inclusive in its approach, adopting a more socially concerned (equity-driven)
perspective. Most of the principles of economic development theory and methods
come from the social sciences, primarily from economics. These principles also
come from sociology and political science, specifically from policy design
perspectives, with an emphasis on socioeconomic issues and processes. An important
component of economic development is geography, especially the hybrid economic-
geography, as well as administration, specifically theories on organization and
decision making. These theories and principles of economic development are taken
into account when using various tools of regional analysis. The placement of such a
substantive body of economic development theory and methods within an Urban and
Regional Planning perspective is believed to complement other urban and regional
planning issues, such as land use, environmental planning, and transportation, with a
view for obtaining more comprehensive outcomes. In other words, economic
development brings the economics into planning, accompanied by other economic
sub disciplines like economic-geography and urban economics.
In regards to mainstream economic development theories, most have
originated in the neoclassical economics body of theory, and economic geography.
The literature identifies these theories as being related to either local or regional
economic development. The assumption is that, regardless of the level (i.e., local or
30


regional), the theories serve as substantive knowledge for a variety of economic
development activities.
2.4 Economic Development Conceptualization
Irizarry Mora (2001) based on Todaros definition on economic development,
suggests that:
[I]n general, refers to the historical process through which a
country achieves, for its inhabitants, a certain quality of life. This
process is intimately related to the execution of macroeconomic
strategies that manage to increase levels of both real income and
aggregate consumption; to create conditions that increase the self
esteem of the members of a given society through the foundation of
social and political institutions that respond to the individual and
promote his or her dignity; and that all these factors foster a
environment of freedom that excludes no citizen (ibid, p. 33
[translation mine]).
Bukenya, Gebremedhin, and Schaeffer (2003) cite Van Zyl (1995), who
identifies three approaches to development. These three approaches are (1) the
growth-centered (focusing on efficiency), (2) the state-centered (focusing on
efficiency and equity) and (3) the people-centered (focusing on equity). Thus, as the
authors argued, economic development could be viewed as a branch of economics
(i.e., growth-centered), carried out primarily by governments (i.e., state-centered),
which deals directly with quality of life improvements (i.e., people- centered).
Turok (2004) stated that competitiveness can be an indicator of the drivers and
dynamics of success in economic development. The author explained that:
It can be argued that the notion encompasses three important
determinants of economic development, particularly the following:
31


Ability of local firms to sell their products in contested
external markets (trade).
Value of these products and the e fficiency with which they
are produced (productivity).
Utilization of local human, capital and natural resources
(e.g. the employment rate). (ibid, p. 1070)
Turok (2004) explained that in general the concept of competitiveness and its
determinants requires deeper analysis, mostly because of difficulties in measurement,
like innovation, entrepreneurship and the like. The author argued that
competitiveness ...
"can conceal important variations between competitive positions of
different branches of the regional economy (diversity). It can also
obscure variable economic performance over time (volatility) and the
uneven consequences of competitive success for different group and
areas (inequality). (ibid, p. 1070)
2.5 Two Theoretical Approaches: Balanced and Unbalanced
Two frameworks for economic development are the balanced growth and
unbalanced growth approaches, the first being represented by Nurkse and the second
by Hirschman. These two approaches, along with Rostows stages of development,
are fundamental to our understanding the development dilemma in regards to
intervention, though all three approaches were originally conceived for the national
level. The idea of Rostow is that a given location, when beginning its process of
development, passes through some logical stages, or steps, from an underdeveloped,
non-industrialized society to an industrialized one characterized by mass
32


consumption13. Irizarry-Mora (2001) explains that the relative success of the stages
depends, in part, on the effective utilization of production resources. As for balanced
growth, the main rationale for the idea is the vicious circle of poverty. Krishna and
Perez (2005) explain that theoreticians like Nurkse argue that there is a vicious circle
related to economic development. According to Krishna and Perez (ibid), the vicious
circle is seen as that firms do not industrialize because there is no market for their
goods; there is no market for their goods because income is low, and income is low
because firms do not industrialize" (ibid, p.832). To break the circle, achieving
balanced growth, writers like Nurkse argue for the implementation of simultaneous
industrialization of a large part of the economy.
Krishna and Perez (2005) explain that from the unbalanced growth
perspective, writers like Hirschman agree on the existence of a vicious circle, but that
the action for a change should be the industrialization of key sectors that stimulate the
rest of the economy. The unbalanced growth approach proposed by Hirschman is
rooted in the idea that the industrialization of leading sectors is the most efficient
way to reach the critical mass and turn a vicious circle of poverty into a virtuous one"
(ibid, p. 835). Hirschmans discussion of backward and forward linkages was an
integral part of this analysis14. Thus, the argument of this approach is that instead of
13 The Rostow stages of development, as identified by Parr (1998), are the traditional society, the
preconditions for takeoff, the take off, the drive to maturity and a period of high levels of mass
consumption.
14 According to Krishna and Perez (2003), the linkages concept
33


the industrialization of most of the economic sectors, the need is to industrialize the
leading sectors which, through backward and forward linkages, bring
industrialization to the rest of the economy15.
Based on analysis and application of Marxist theory from a geographical
perspective, Harvey (1985) explains that balanced growth can never be realized
because of the structure of prevailing social relations in a capitalistic society (ibid,
p. 11). Harvey supports his rationale that balanced growth is not attainable in his
explanation of the circuits of capital. He argues that creating surplus value depends
either on an increase in the length of the work day (absolute surplus value) or on the
gains made from continuous revolutions in the productive forces through
reorganization of work processes that increase productivity (relative surplus value).
So, the first circuit of capital is the production-consumption relation16. This relation,
as explained by Harvey (ibid) manifests itself through:
refer/s] ,f> the effects of one investment on the profitability of investment at earlier
and later stages of production. Investment by a firm can, through forward linkages,
motivate investment by another firm that uses the first firm's output as an input.
Similarly, through backward linkages, one firms investment can motivate another
firm, which provides inputs to the first firm, to invest (ibid, p. 833).
15 Krishna and Perez (2005) quote Streeten (1963) who states:
Insofar as unbalance does create desirable attitudes, the crucial question is not
whether to create unbalance, blit what is the optimal degree of unbalance, where to
unbalance and how much, in order to accelerate growth; which are the growing
points, where should the spearheads be thrust, on which slope would snowballs
grow into avalanches? (ibid, p. 834).
16 Harvey explains that in this circuit we can clearly view the contradictions in the tendency of
individual capitalists to act in ways that, when aggregated, run against their own class interests. This is
the tendency toward over accumulation, whereby too much capital is produced in aggregate relative
to the opportunities to employ that capital (ibid, p. 4).
34


Overproduction of commoditiesa glut in the market.
Falling rates of profit (in pricing terms, to he distinguished
from the falling rate of profit in value terms, which is a
theoretical construct).
Surplus capital, seen as either idle productive capacity or as
money/capital without opportunities for profitable employment.
Surplus labor and/or rising rate of exploitation of labor
power (ibid, pp. 4-5).
Capital flows into fixed assets and consumption fund formation are what Harvey
refers to as the secondary circuit of capital. The consumption fund is defined as
commodities that function as aids rather than as direct inputs to consumption. To
achieve a complete overview of the circulation of capital in general, Harvey proposes
a tertiary circuit of capital. The tertiary circuit comprises, first, investment in science
and technology, and second, social expenditures related primarily to the reproduction
of labor power. The author argues that through the circuits the tendency towards
over-accumulation is not eliminated; rather, it is transformed into a tendency towards
overinvestment in the secondary and tertiary circuits. He states:
Chronic overproduction results in the devaluation of fixed capital
and consumption fund itemsa process that affects the build
environment as well as the consumer and producer durables. ...hi
each case the crisis occurs because the potential for productive
investment within each of these spheres is exhausted (ibid, p. I2)17.
17 The crises identified by Harvey are:
Partial criseswhich affect a particular sector, geographical region, or set of mediating
institutions (ibid, p. 12). Can be resolved from the inside.
Switching criseswhich involve a major reorganization and restructuring of capital flows
and/or major restructuring of mediating institutions in order to open up new channels for
productive investments (ibid, p. 13). The author identified two kinds: (1) sectoral switching,
or switching the allocation of capital from one sphere to another, and (2) geographical
switching, or the switching of capital from one place to another.
35


Explicit in Harveys ideas is that balanced growth is unattainable. Assuming that
Harvey is correct, the logical road to take would be the unbalanced growth approach
proposed by Hirschman. In a similar reasoning related to the concept of
overproduction, Turok (2004) explained that there are situations where place based
competition could lead to misallocation of resources. The author stated that Civic
pride and rivalry can cause unnecessary imitation and wasteful duplication of public
facilities, especially between adjacent areas (ibid, p. 1074).
2.6 Economic Base
Perhaps the main rationale for the common practice of local and regional
economic development is the economic base theory. Malizia and Feser (1999)
explain that export base, or economic base theory, is widely accepted in the US for
local economic development. The basic assumption of the theory is the external
demand for a regions product is the primary determinant of regional prosperity
(ibid, p. 51). The theory is the foundation of export-oriented models for economic
development. Its power as an analytical tool is constrained due to the static nature of
the model; thus, it is preferably used for short-term analysis. Some of the tools used
for analysis under this theory are location quotients, basic/non-basic employment
estimations and the economic base multipliers. Some of the main applications of the
theory are industry targeting and the maintenance of a favorable balance of trade.
"Global criseswhich affect, to a greater or lesser degree, all sectors, spheres, and regions
within the capitalist production system (e.g., WWII, 1973 oil shortage) ((ibid, p. 13).
36


Clark (1978) contends that, although the theory has serious shortcomings, the
18
importance of exports for regional development is undeniable .
2.7 Approaches to Economic Development Planning and
Implementation
The occurrence and the need for increased employment opportunities in
certain sectors of society are the main justifications for planned intervention, i.e.,
economic development policies, in a capitalist economy. It could be argued that the
goals of economic development should address the needs of those who are affected
by such growth, that is, the recipients, if you will, the people, industrial sectors and
places, or the geographical areas were development activities occur. Lyons and
Hamlin (2001) posit the following (very general) economic development goals: job
creation, job retention, tax-base creation, increases in property values, retention of
wealth, reduction of poverty, economic stability, economic self-sufficiency and
complementarity* 19. Blakely (2001) stated that the role of economic development is
more than job creation. The author argued that it is to maintain a job incubating base.
His recommendation is that job creation be combined with job training. This way a
dynamic work force could be generated and the people could be prepared for
changes in employment patterns, adjusting to the (never-ending) process of
ls The author defines two conditions necessary to exploit external markets. The first is that the quantity
of the resource be large enough to warrant its extraction. The second is that the optimal allocation of
resources requires that investment alternatives be pursued according to potential yields.
19 For a more complete discussion of the goals of economic development read Lyons and Hamlin
(2001).
37


innovation. Education and training are keys to achieving this job- incubating base.
In other words, the author suggests the utilization of directly productive activities
(DPA) and of social overhead capital (SOC).
The goals mentioned might be seen as ways of achieving quality of life
improvements through economic (material) betterment. At the local level, these are
seen as normal goals of municipalities. The way to achieve such goals is through the
design and implementation of specific plans and projects. At the regional level, these
goals could be achieved with a mix of regional policies and specific regional projects,
targeting both efficiency and equity. A problem that occurs at the local level is that
the specific plans, policies and projects are, often times, not integrated. Some of the
projects respond to particular interests and might not be part of an integrated policy
for local economic development. This disconnection could lead to negative
externalities and problems related to the spatial allocation of activities, and to the
inefficient use of scarce resources. At the regional level, in some locations, related
policy is almost non-existent. Most of these goals are achieved by the society
independently, as if they were mutually exclusive. Of course, there is an opportunity
cost related to decision making and the allocation of resources but, in order to achieve
economic development goals in a coherent, systemic and comprehensive manner, the
design and implementation of economic development policy is crucial. Policy is
supposed to provide the legal framework that supports design plans and projects.
38


Depending on available resources, the scope of the intervention and the quality of the
policy framework, most of these goals can be achieved.
Two general approaches characterize the economic development initiatives in
terms of implementation. The first one is that which emphasizes directly productive
activities (DPA). The second one emphasizes social overhead capital (SOC). The
time frame for implementation is the main difference between these two broad
categories. DPA, depending on the complexity of the productive activity chosen for
implementation, could be carried out faster than SOC activities. Typically, DPA
activities begin with the economic development process, bringing the needed push
to jump-start the process. Most of the DPA are from supply side, industry-oriented
development. SOC activities are related to activities designed to improve human
resources, such as education and training. These activities are more population-
oriented, taking into consideration employment needs based on occupational analysis.
Logically, learning activities take time to develop, so they are not seen as short-term
alternatives. The SOC activities are associated with a more comprehensive, long-
term vision of economic development. Activities from both perspectives can be
derived from the process of industrial targeting, which is one of the first steps to
achieving economic development. In discussing industrial targeting, Markusen
(2004) proposes a complementary economic development focus on occupations,
arguing that occupational targeting offers the potential to bridge between regional
and community economic development, two approaches that have been separated for
39


long time20 (ibid, p.254). The author bases the argument on a series of trends (or
changes) that she identifies, which have directly affected regional and local economic
development in recent times. The six changes are:
1. As cheaper transportation and instant communication
technologies reduce distance, local economies are under pressure
to specialize and export more than ever.
2. Development is increasingly seen as being less linked to natural
resource endowments, once thought to govern a locality's
specialization, and more reliant on human capital.
3. Job commitment on the part of both workers and employers has
waned (in terms of training).
4. Greater crossover of skills exists among industries than
stereotypes might suggest.
5. The new fast-paced, flexible economy places a premium on the
creation of new businesses.
6. The digital revolution has made it easier to work from remote job
sites (ibid, p.254).
Thus, it seems that locating natural and built attributes are less important for
businesses to establish themselves in a given location than the quality of available
human resources. The author concludes:
By identifying and targeting occupations that appear to (1) be highly
skilled, (2) show growth potential, (3) cluster spatially, (4) cross-
fertilize with other sectors, (5) encourage entrepreneurship, and (6)
match the potential of the area workforce, planners could complement
industrial targeting efforts in regional and community economic
development (ibid, p. 266).
Nevertheless, a companys decision in regards to location is multidimensional.
Human capital and new digital remote technologies may have become more
2,1 The author identifies one barrier to integrating the two approaches, i.e., the availability of industry
data, which may not be available below the community level. She states that the occupational analysis
can also he used to intertwine education and training options for community members in order to foster
recruitment and retention in the same community.
40


important considerations in the process of establishing new firms in recent years, but
industries continue to have particular needs related to infrastructure, such as energy,
cargo movement, water and materials, along with the needs of markets and services
associated with business operations and leisure time for employees, which human
capital and online resources cannot always equally provide. Combining both
approaches may be an effective way of addressing the needs of two of the three
recipients of growth, namely the industrial sectors and the people. The third recipient
of growth, which is the place itself, is always impacted in some ways, depending on
the magnitude of the development under consideration. Thus, the importance of an
integrated approach to development is readily apparent; that is, an approach based on
the comparative advantage of a given location, not only in terms of its natural and
built endowments, but also its available human capacity and emerging technologies,
would appear to be prudent.
Some generic development initiatives originating in the DPA approach came
about because of the need to enhance commercial environments through the creation
of new business districts (or through the improvement of existing ones) and the
construction/modernization of industrial parks. The improvement, or construction, of
infrastmcture related to energy, water, and transportation are also considered DPA
approaches. To facilitate the creation of new businesses, a typical governmental
practice is regulation. Fiscal policy is often thought of as a key strategy in the push
for economic development initiatives. Some of those initiatives might include
41


property and sales taxes, land use regulation, such as zoning, local incentives, and
environmental regulation. Special regulation in support of development in particular
areas can enhance related production, such as that seen in free trade zones. From the
SOC approach, some of the development initiatives are technology transfer programs
accompanied by the education, training and technical support needed to accomplish
the particular goals of development. These initiatives should be framed within the
context of comparative advantage and cluster oriented initiatives (discussed below).
2.8 Agglomeration Economics, Comparative and Competitive
Advantage
Two forms of agglomeration economies are localization and urbanization
(Parr, 2002). Whereas the former refers to the common location of independent firms
in the same industry, the latter refers to the common location of firms belonging to
different and generally unrelated industries. High-technology-related industries have
become increasingly important economic drivers among the more advanced nations.
Projects based on the Silicon Valley initiatives in California appear throughout the
US and its territories. The concept of comparative advantage, and its related
clustering approach, is of course a key element for economic development.
One of the main characteristics of the clustering approach is the localized
concentration of production. Fingleton (2003) refers to Marshall who, in the early
20,h century, identified three external economic factors important to the localized
42


concentration of production. Such factors are labor market pooling, intermediate
inputs, and knowledge spillovers. Porter (2000) defines a cluster as:
...geographic concentration of interconnected companies, specialized
suppliers, service providers, firms in related industries, and associated
institutions as universities, standards agencies and trade associations,
in particular fields that compete hut also cooperate" (ibid,2000 p. 16).
These companies and institutions are linked by commonalities and complementarities.
Hill and Brennan (2000) state that economic development based on industry clusters
supposes that the location of firms, or industries, that complement each other,
compete against each other, or share common resources, influences returns. Indeed,
Hill and Brennan (ibid) stated:
The development of regions is dictated by their industrial structures,
and those structures are generated by two factors. The first is where
industries are founded and reach a large enough size to generate
cluster economies; that is the reason why establishment formation and
industrial innovation are so important in regional economic
development (Eberts & Stone, 1992). The second is the position of the
regions industries in the product cycle, which is partially a function of
strategy (ibid, p.67).
In theory, the formation of industrial clusters is tied to the concepts of
comparative advantage and competitive advantage. A comparative advantage is
attained when a country or a locality possesses the economic, social and natural
resources, among other particular characteristics, necessary to ensure the production
of superior goods and services at a competitive price. Bannock, Baxter, and Davis
(1998) define the concept as the idea that economic agents are most efficiently
employed in activities in which their relative efficiencies are superior to others (p.
43


xx). On the other hand, Porter (1990) argued that a nations competitive advantage is
created and sustained through a highly localized process (ibid, p. 73). The author
argued that the competitive advantage is based on differences, differences in national
values, culture, economic structures, institutions, and histories... (ibid, p. 73). The
comparative advantage is more concerned about diminishing costs, whereas the
competitive advantage is more focused on differentiation.
Now, a prime drive of a regions economy is its capacity to produce goods
and services that are in demand outside the region. These constitute its economic
base since these exports generate new wealth that subsequently will circulate within
the regions economy. There are at least two classes of theory regarding trade. The
first is traditional trade theory, or that which is related to international markets. The
other addresses trade between regions and localities within the same country. This
second dimension of trade could promote inter-industrial economic linkages and
inter- dependence between localities and regions of a particular country. Irizarry
Mora (2001) refers to Hirschman, who argues that the goal of a depressed economy
should be the unbalanced growth of economic sectors focusing on the ones in
regards to which the place has the competitive advantage. Hirschmans unbalanced
growth theory is framed around the concept of economic linkage. Krishna and Perez
(2005) explain that from the unbalanced growth perspective, industrialization should
favor export sectors and those most fully linked with other important sectors. The
greater the degree of economic embeddedness the greater will be the capacity to
44


internalize the benefits of inter-industry linkages and to lengthen production chains in
advance of exportation out of the region. As the authors stated, the unbalanced
growth approach is based on the idea that industrializing the leading sectors is the
most efficient way to reach critical mass and turn a vicious circle [of poverty] into a
virtuous one (ibid, p. 835). Hirschmans discussion of backward and forward
linkages was an integral part of this analysis. The argument of this approach is that
instead of the simultaneous advancement of all or most sectors, it will instead be
preferable to promote the initial advancement only of key leading sectors which,
through backward and forward linkages, bring advancement or industrialization to
the rest of the economy. In this formulation a region would target leading sectors,
and then manage their externalities.
Colgan and Baker (2003) argue that there are two sources of competitive
advantage that may derive from location in a particular region (ibid, p. 357). The
two sources the authors identify are the availability of natural resources and the
cumulative knowledge in the region resulting from the interaction of firms, other
organizations, and the successful creation of new products (ibid, p. 357). Thus, there
is a natural advantage (i.e., the resources) and a created advantage (i.e., the
knowledge-based).
2.9 iMnd Use Conceptualization
First of all, what is land use? Briassoulis (2000) refers to several relevant
definitions. In referring to its most basic definition, Briassoulis cites Turner and
45


Meyer (1994), who define land use as the way humans employ land and its
resources (ibid, p. xx). From a planners perspective, Briassoulis (2000) cites Chapin
and Kaiser (1979), who make a distinction between a large, territorial scale of land
use, versus an urban scale of land use. The territorial scale of land use (seemingly the
regional and/or national scale) focuses on the resource aspects of land and on the use
of materials to satisfy human economic, material needs; as the authors state, ...land
is a resource and land use means resource use (ibid, p. xx). At the urban or local
scale, the focus is more on the lands potential to be location of human activity. From
this perspective, there is a difference between regional and local land use. Godschalk
(2004) identifies three levels of strategies in regards to land use planning: the regional
level, the city level and the small area level (the last two being local in scope). The
main difference between local land use planning and regional land use planning is
that they have different emphases. Whereas the emphasis in regional land use
planning is on planning the use of natural resources, economic sectors and main
regional infrastructure, the emphasis in urban, local or city land use planning is on
generated human activities. In his chart for planning in market societies, Friedman
(1987) recognizes that difference, placing land use (i.e., zoning, and location of
activities) under city (urban or local) planning, along with local transportation, urban
design and redevelopment (all of which being highly related); likewise, Friedman
places natural resources under regional development planning, along with
regional/industrial economic development and location, regional transportation, rural
46


development and migration. The second main difference between the two scopes is
the level of aggregation and detail in relation to human activities, the local level being
more detailed than the regional.
With both foci in mind, the regional and the local, land use refers to the use of
natural resources available on the land cover, as well as the distribution on the land
surface of existing and potential human-generated activities. Land use planning then
is the formal process (guided by a plan) of influencing, managing or designing the use
of land in terms of its resources and the potential activities within a given territory;
that is, according to Kaiser, Godschalk, and Chapin (1995) [t]he activity of land use
planning21 combines analysis, synthesis and consensus formation (ibid, p. 36).
Kent, Kelly, and Becker (2000) acknowledge the importance of public policy
for land use planning, arguing that when planners designate land for future use, the
process requires significant public policy decisions that directly affect private lands.
On the other hand, Chapin (ibid) envisions the land use plan as the first step in the preparation of a
comprehensive plan. This author, as cited in Kaiser and Godschalk (1995), affirms that
(u]pon its completion, the land use plan served as a guide for decisions, until the
comprehensive plan was developed. Later, the land use plan would become a
cornerstone in the comprehensive plan, which also included plans for transportation,
utilities, community facilities, and renewal. Only the general rudiments of which are
suggested in the land use plan (ibid, p. xx).
It should be noted that since the very beginning of the scientific era" of planning that there has been a
concern, and an acknowledgement, of the systems complexity, and of its need for comprehensiveness
in related planning efforts. More recently, Chapin (ibid), along with Kaiser and Godschalk (ibid),
explains that the process of preparing land classification and urban land use plans can be viewed as a
sequence of five tasks: (1 )Determine the origin of the location requirements for the land use area under
consideration, (2)Map the suitability of lands for the particular use, (3)Estimate the space
requirements for the land user, (4)Analyze the holding capacity of the suitable land supply, and
(5)Design alternative spatial arrangements of land types or land uses.
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The authors stated that: Almost all planning decisions ultimately affect the use of
land (ibid, p. xx). Recognizing the systems complexity, the authors explain that
land use planning deals with buildings and natural environments, that is, with both
developed and undeveloped land. On recognizing the aforementioned, Kelly and
Becker (ibid) identify some basic principles that govern the development of a future
land use plan. Those determinants are the existing uses, land compatibility (in terms
of the use and the intensity of use), land demand (population and their needs and
preferences determine how much land is needed), environmental opportunities and
constraints, transportation influences (commercial- and industrial-specific needs),
development capacity analysisdowntown, neighborhood development, and historic
preservation plansagriculture, institutional development (hospitals, universities,
etc), areas around airports and seaports, floodplains, and hazard areas. Once again
the notion of comprehensiveness appears in land use planning, adding to the debate
on what it is that planners should do. They conclude that land use plans are useful
only if they take into consideration the validity of the planning process, and if they
truly reflect public preferences in regards to the strategies employed to improve the
communitys quality of life.
Kaiser, Godschalk and Chapin (1995) explain that ...at the core of local land
use planning is the effort to influence the direction of land use change (ibid, p. 35).
The means to influence the use of land is through the land use plan, related legislation
and public policy. Some tools identified by Kaiser, Godschalk and Chapin (ibid) for
48


the accomplishment of this effort involves the preparation and implementation of land
use policies, the review and approval of development projects, the recommendation
of capital improvement programs, and local community participation. They recognize
the intellectual and sociopolitical nature of planning, arguing that the process ...is
guided by a mixture of community values, professional standards, legal precedents,
political tactics and long-range visions (ibid, p. 36). These writers argue that this
effort, which they refer to as managing land use change, is the fundamental
rationale for the theory and practice of land use planning (ibid). That is, to influence
the direction of land use change, the planner should recognize the drivers that
influence such change. Indeed, Kelly and Becker (2000), as well as Briassoulis
(2000), identify two main categories of driver-influenced (land use) change. The first
category is the bio-physical drivers, or the ones that originate in the natural
environment The other category is the socio-economic drivers, or the ones that
originate from human activities and behavior The drivers concept is similar to the
concepts of natural and social capital. Roseland (2000) defined natural capital as ...
any stock of natural assets that yields a flow of valuable goods and services into the
future (ibid, p. 78). Implicitly is the idea that those natural assets are the raw 22 23
22 The author identified as bio-physical drivers the availability of natural resources, drainage patterns,
landform, plant succession, soil types and processes, topography and geontorphic processes, volcanic
eruptions, weather and climate variations.
23 The author identified as socio-economic drivers the population and population change, technology
and technological change, industrial structure and change, the family, the market, the public sector and
its policies, values, property regime, and community organizations (among others).
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material for economic sectors such as agriculture, tourism, manufacture, and the like.
About social capital, Roseland (ibid) quoted Putnam (et al., 1993), who defined the
concept as the ...features of social organization such as networks, norms, and trust
that increase a societys productive potential24 (Roseland 2000, p. 81). Both stocks
of capital should be considered in any effort for the achievement of sustainable
development.
As part of the need to influence and drive land uses, and in order to achieve
desired outcomes, some means for land use control will be included in the planning
process. The primary means to control land use is zoning, along with specific
regulations and ordinances.
2.10 Ends and Values for iMnd Use Planning: Sustainable
Development
Nowadays, the land use planning process is generally understood as one that
continually asks, Why plan land use? To better understand what ends land use
planning should serve, consideration of the following three conceptual frameworks is
mandatory. First, those general ends could be viewed as values. Kaiser, Godschalk,
and Chapin (1995) identify three values for land use change management, which are
the social, the market and the ecological values25. The three of them come under the
24 Moreover, Roseland (ibid) argued that social capital is created when individuals learn to trust one
another so that they are able to make credible commitments and rely on generalized forms of
reciprocity rather than on narrow sequences of specific quid pro quo relationships (ibid, p. 81).
25 The authors exemplified the social values as neighborhood and activity patterns, the market values
as profitable real estate development, and the ecological values as natural resource conservation.
50


umbrella of sustainable development. They make the analogy by comparing the
integrated framework of values with a stool, with the three values as its legs, all of
equal importance. The authors acknowledge that ...sustainable development can be
an important guiding principle in the search for balance among the three legs (ibid,
p. 52). The main challenge in the model is to achieve a balance among the three
values, or the achievement of sustainability. Proposing a variant of the stool model,
Campbell (1996) suggests the triangular model, identifying three priorities (analogous
to the three values of the stool model) while adding three conflicts. The three
angles of the triangle are, first, social justice, economic opportunity and income
equity (analogous to the social values in the stool model); second, environmental
protection (analogous to the ecological value in the stool model); and third, the
overall economic growth and efficiency (analogous to the market value in the stool
model). The segments of the triangle are the conflicts. Between the equity- and the
economics-related priorities, there is the property conflict. Between the economics-
and the ecology- related priorities, there is the resource conflict. Between the
ecology- and the equality-related priorities, there is the development conflict. The
center of the triangle has the words green (ecological values), profitable (market
values), and fair (social values), which is, according to the authors perspective,
sustainable development. As Kaiser, Godschalk and Chapin (1995) argue in their
stool model, Campbell (1996) states that no point can exist alone. The triangle
model is also known as the three es model, equity, as the social values or priorities;
51


economy, as the market values, or priorities; and ecology, representing the ecological
values, or priorities. Godschalk (2004) adds another feature to the triangle model,
transforming it into a prism. The fourth point, angle or value identified is livability.
This change in the model brings a new dimension to land use planning challenges,
which are not only about sustainable development, but are also about the
establishment of livable communities. Because of the new addition to the model,
three new conflicts arise. These conflicts are also viewed as tensions between the
values of the prism, or interaction between the values. One conflict is the
gentrification conflict generated by the interactions of the equity and livability values.
The next one is the growth management conflict, generated by the interactions of the
economy and livability value. The last, but not the least important, is the green cities
conflict, generated by the interactions of the ecology and the livability values. The
center of the prism could be viewed as the ideal state of balance between all four
values, leading to sustainable development and to livable communities.
Using this value-oriented approach to understand what ends land use planning
should serve, the logical conclusion is that the main end of land use planning is to
promote equitable, sustainable development. In a way, planning for sustainable
development and for livable communities is planning for better use of land, which
means to ameliorate disparate and inefficient modes of urban expansion, such as
52


suburban sprawl26. Godschalk (2004) argues that sustainable development seeks to
reconcile the conflicts among economic development, ecological preservation and
intergenerational equity (ibid, p. 5).
2.11 Sustainable Development Conceptualization
In the previous sections of this chapter the concept of land use is described, as
well as the main components of land use planning, along with the values (or ends)
that land use planning should serve. A topic that appears throughout the planning
literature, which is related to land use, is sustainable development. Indeed, relevant
academic literature contains examples that support the salience of sustainability in
related discussions. One such example comes from Naess (2001), who states that
...environmental sustainability appears to be emerging as one of the competing
rationales for planning in western democracies (ibid, p. 503). Another example is
Jepson (2004), who contends that ...sustainable development [is] generally accepted
within the profession as a valid framework with respect to both planning policies and
planning process (ibid, p. 3). This author argues that there are two competing world
view's: the expansionist and the ecologist. From a long-term, ecologist perspective,
land use planning indeed, may be the main tool for achieving sustainable
development. In another example Albrechts, Healey, and Kunzmann (2003),
26 Nelson (et al., 1995) bring a synthesized definition of urban sprawl, which is:
...an unplanned, uncontrolled, and uncoordinated single-use development that does
not provide for an attractive and functional mix of uses and/or is not functionally
related to surrounding land uses and which variously appears as low density, ribbon
or strip, scattered, leapfrog, or isolated development, (ibid, p. I)
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affirmed that sustainable development has become a widely used term expressing
the concept of potential for creating a positive-sum strategy combining economic,
environmental, and social objectives in their spatial manifestation (ibid, p. 114).
Tying the concept to land use planning, Albrechts (et al., 2003) affirmed that
territorial development holds the promise of translating this concept (sustainable
development) into specific investment programmes and regulatory practices (ibid, p.
114).
In recent and present times, many planning initiatives, movements and efforts,
like smart growth, growth management, transit oriented development, and the new
urbanism, incorporate, in many different ways, the values of sustainability and
livability. As exposed by Naess (2001), the works of authors like Nelson, Cervero,
Duanny and Calthorpe are just a few examples, from an extensive related literature,
of the importance of these concepts. Naess (ibid) explains that the ...concept of
sustainable development comprises a strong element of distributive ethics [equity],
focusing on the distribution of benefits and burdens over time (across generations) as
well as spatially (within generations) (ibid, p. 505). Virtually all the main trends on
how to plan incorporate these values. If land use planning is about resources, or
more specifically, about planning or guiding the use of the primary source of
resources, which is land, it should include elements of sustainability. As stated
above, the ultimate goal of land use planning is the achievement of sustainable
development. As Kaiser, Godschalk, and Chapin (1995) affirm, quoting Breheny
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(1992), ...the goal of sustainable development is to identify the level of development
that can be sustained without critical environmental damage, while meeting economic
and social needs of present and future generations (p. 50). Thus, recognizing the
importance of sustainable development, the logical question arises: What is
sustainable development? Berke and Conroy (2000) define sustainable development
as a dynamic process in which communities anticipate and accommodate the needs
of the current and future generations in ways that reproduce and balance local social,
economic and ecological systems, and link local actions to global concerns (ibid, p.
23). In an attempt to formulate a set of operational performance principles for the
evaluation of local plans, the authors designed six basic principles, which are
clusters of qualities. These principles are: harmony with nature, livable built
environment, place-based economy, equity, polluters pay, and responsible
regionalism, all of which embrace the values defined above. The authors explain that
in their conception of sustainability, principles one through four are associated with
the reproduction characteristic of the definition, since they address the long-term
ability of a community to sustain healthy social, economic and ecological systems.
Principles five and six reflect the link local to global concerns characteristic,
wherein communities (and individuals) act with a broader obligation to others;
additionally, these principles are related to the concept of equity. Thus, Berke and
Conroy (ibid) contend that the question of How well all six principles are
represented in plan policies relates to the balance characteristic (p. 24). The three
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dimensions of sustainability that Berke (2002) identifies are reproduction, the link to
the global concerns, and balance. To achieve sustainable development, Berke (ibid)
asserts that ...the goal is to answer the defining question on the planning field: How
can the quality of human life be improved in local communities in the context of
global environmental, social and economic systems? (ibid, p. 22). Berke (ibid)
identifies two approaches in dealing with the achievement of sustainable development
through planning. These approaches are the procedural and the physical design
approaches. The procedural approach emphasizes diversity, openness, and consensus
building, but it is not equipped for planning and implementing a shared civic vision in
local planning arenas, which the author sees as being dominated by fragmentation and
conflict. About the physical design approach, the author states that ...under the
banner of new urbanism has revived the idea that planning is not entirely about the
process but does not embrace a holistic and integrated vision of community building
(ibid, p. 22). He argues that sustainable development embraces a big problem
involving the widespread dissatisfaction with the sprawl of contemporary
development (p. 22).
In another effort to define sustainable development, Khanna, Babu, and
George (1999) define the concept as ...a process in which the exploitation of
resources, the directions of investments, and institutional changes are all made
consistent with future as well as present needs (p. 104). Khanna (et al., 1991)
identified two underlying premises about sustainable development: a symbiotic
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relationship between a consumer, human race and producer, natural systems, as well
as the compatibility between ecology and economics. Framed within these two
premises, the authors argue that an agenda for sustainable development should
include:
Carrying-capacity-based developmental planning
processes
Preventive environmental policy
Structural change in economic sectors
Objective use of tools like environmental impact and risk
assessment, environmental audits, natural resource
accounting and life cycle assessments" (ibid, p.104).
Another effort to characterize the concept of sustainable development was
found in the works of Stratford and Jaskolski (2004). The authors argued that the
concept of sustainability is always contextual (or context dependent, 1 might add),
both in process and outcome. Stratford and Jaskolski (ibid) explained that
sustainability is informed by six principles. Those principles are integration,
community involvement, precaution, equity, continual improvement, and the
conservation of ecological (and cultural) diversity. The authors argued that those
principles are related to the individual, collective, institutional or organizational
conduct, and the normative reform of that conduct. Related to the previous
arguments, Stratford and Jaskolski (ibid) argued that sustainable development is a
procedural term referring to mechanisms by which to make the protection of wealth
being a reality (ibid, p. 311).
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The concept of sustainable development is so broad, that it is very difficult to
operationalize. Parris and Kates (2003) argue that ...yet to dare, there are no
indicator sets that are universally accepted, backed by compelling theory, rigorous
data collection and analysis, and influential in policy (p. 581). They explain that this
situation occurs because of three reasons: first, the ambiguity of sustainable
development; second, the plurality of purpose in characterizing and measuring
sustainable development and third, the confusion of terminology, data and methods of
measurement. In an attempt to clarify the ambiguities about the definition of
sustainable development, Parris and Kates (ibid) designed a 2 x 3 taxonomy of the
goals described in the literature regarding the definition or the debates about
sustainable development. In the first column, that which is to be sustained appears,
and in the second column, that which is to be developed. In each column, they placed
three categories; in the first column: nature (earth, biodiversity, and ecosystems), life
support (ecosystem services, resources, and the environment) and community
(cultures, groups, and places); in the second column: people (child survival, life
expectancy, education, equity, and equal opportunity), economy (wealth, productive
sectors, and consumption) and society (institutions, social capital, states, and regions).
Whereas the first column is concerned about environmental characteristics, the
second is about the socioeconomic aspects of development. Another effort to
operationalize sustainable development was undertaken by Naess (2001), who
explains that:
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...in much of the literature on sustainable urban development and
spatial planning in wealthy industrial countries the following five
elements are emphasized:
Reduction of the energy use and emissions per capita in the
area (cits', municipality or region) down to a level
compatible with the ecological and distributional criteria
for sustainable development at global level.
A minimizing of the conversion of and encroachments on
natural areas, ecosystems and soil resources for food
production.
A minimizing of the consumption of environmentally
harmful construction materials.
A replacement of open-ended flows, where natural
resources are transformed into waste, with closed loops
relying to a higher extent on local resources.
A sound environment for the citys inhabitants, without
pollution and noise damaging to the inhabitants health,
and with sufficient green areas to give opportunities for the
population to experience and become emotionally related
to nature (ibid, p. 506).
Those five elements take into consideration some negative effects in regards to the
actual patterns of development, as the use of harmful materials and the resulting air
pollution. Some other commonly recognized negative effects of excessive and
unsustainable (and unplanned) land use/exploitation are: soil erosion, loss of habitats,
increased vulnerability of the soil, decreases in the carrying capacity of land,
landscape modification and loss of natural amenities (Beinat and Nijkamp, 1997).
These authors cite Bryden (1994), who distinguishes three major dimensions which
characterize sustainable land use:
The husbandry dimension, paraphrasing the author, is related to the long-
term durability, exploitability, and continuity of natural resources. That
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author argued that maintaining certain quantity and quality of the natural
resources are central to this dimension.
The interdependence dimension, as explained by the author, is focused on
aspects like fragmentation, segmentation, and relations between different
types of land use. The author argued that maintaining the type and quality
of the natural-human system interaction is the foundation of this
dimension.
The ethics dimension, which refers to those obligations to future
generations.
Analogously, these three dimensions respond to the values of the triangle model
previously discussed. The husbandry dimension responds to the ecology value, the
ethics to the equity value and to the interdependence dimension, which, in some
ways, responds to the economic values.
In another effort to operationalize the concept of sustainable development,
Cartwright (2000) developed a set of frameworks for sustainable development
indicators. Those frameworks vary from two, to three, to five themes. The two
themes framework is composed by carrying capacity and quality of life. The three
themes framework is composed by the environment, society, the economy (analogous
to the previous discussion of ends and values in land use planning). The five themes
framework is composed by good and services which meet peoples needs but involve
the use of fewer natural resources; sustainable communities for people to live and
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work in; manage and protect our environment and resources; send the right signals;
and international action.
In a more normative view, Wheeler (2000) listed some objectives for urban
sustainability. The list includes the following:
Compact urban form;
Preservation of open space and sensitive ecosystems;
Reduced automobile use;
Reduced waste and pollution;
Reuse and recycling of materials;
Creation of livable and community oriented human
environments;
Decent, affordable, and appropriately located housing;
Improved social equity and opportunities for the least
advantaged;
And Development of a restorative local economy, (ibid, pp. 134
- 135)
The author argued that this list is not exhaustive but conveys the general idea
of improving long term human and environmental well being throughout the
range of planning specialties (ibid, p. 135). Wheeler (ibid) also argued that the
approach for metropolitan sustainability planning should combine the following:
Con tinued development of visions, plans, indicators, and linked
policy frameworks;
Development of more effective regional political coalitions
supporting sustainability planning, facilitated in turn by
planners and politicians;
Creation of stronger regional institutions, and, if possible,
limits to the size and jurisdictional fragmentation of
metropolitan regions;
Intergovernmental incentive frameworks aimed at promoting
sustainability, with strong state or provincial support for
regional and local action; and
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Participatory planning, consensus building, and long-term
process of public education and social learning, (ibid, pp.
143-144).
Due to its particular scope, regional planning seems to be the vehicle for the
promotion of sustainable efforts. If planning is for the inhabitants of a particular
place then it is logical to incorporate the aims and knowledge from them. New
regional institutions for participation and governance should emerge, apart from the
traditional central and local institutions.
2.11.1 Carrying Capacity Conceptualization
Before entering the subsequent topics of regional planning and governance, I
proceeded to conceptualize carrying capacity. Carrying capacity is a dimension of
sustainability that needs to be conceptualized in order to design, describe, and
prescribe any sub regional delineation process. Kaiser, Godschalk, and Chapin
(1995) characterize carrying capacity as a measure of capability. In biophysical
terms, Binder and Lopez (2000) define the concept as the ...maximum population
that an area can sustain under given technological capabilities (p. xx). Applying the
concept of carrying capacity for human society, Khanna, Babu, and George (1999),
define it as ...the maximum rate of resource consumption and waste discharge that
can be sustained indefinitely in a defined planning region without progressively
impairing bio productivity and ecological integrity (p. 107). In both definitions,
carrying capacity involves a given population and its consumption-related needs, as
well as the satisfaction of those needs with potentially scarce resources available at a
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given time. To plan in accordance with the concept of carrying capacity is to plan
under the constraints of limits, necessitating that planners utilize carrying capacity
analysis. Kaiser, Godschalk and Chapin (1995) explain that the carrying capacity
analysis should describe ...the amount of development an area can accommodate
without undergoing irreversible ecological change or damage due to some threshold
limits to growth (ibid, p. 50).
An important acknowledgement was made by Khanna, Babu, and George
(1999) in terms of planning for sustainable development, i.e., the need to recognize
that the economy is a sub-system of a finite regional ecosystem. They argue that
...while the indefinite growth of the economy is not possible, the
qualitative development of non-growing systems is a distinct
possibility. From a macroeconomic perspective, this would mean that
the level of economy must be within carrying capacity of the region
with limits on, and trade-off between, population size and per capita
resource use in the region (ibid, p. 105).
According to this perspective, to achieve sustainable economic development, we
might perform an analysis of the limits, resources, activities, and trade flows within a
given region.
2.12 Regional Planning Conceptualization
For the many reasons provided along this literature review, regional planning
seems to be the main arena in which sustainable development can be promoted. The
American Planning Association (2002) defined regional planning as ... planning for
a geographic area that transcends the boundaries of individual governmental units but
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that shares common social, economic, political, cultural, and natural resources, and
transportation characteristics^. xx). Wheeler (2002) summarized the historical
development of regional planning dividing it in five eras, from the early twentieth
century to the present. Although the eras are ordered chronologically from the eldest
to the newest, the las four still have many proponents in the present. The five eras are
(in chronologically order) the ecological regionalism, regional science, neo-Marxist
regional economic geography, public choice regionalism, and the new regionalism .
In many ways this work is influenced by all, mostly by the new regionalism, and
regional sciences.
The American Planning Association (ibid) argued that there are five main
reasons for regional planning. Those reasons are the following:
Provision of technical assistance to local governments.
Maintenance of forum for exploring and resolving
intergovernmental issues.
Development of regional plans to guide, direct, and/or
coordinate local planning.
Articulation of local interests and perspectives to other levels
of government.
Establishment of two-way conduit between local governments
and other agencies (ibid, p. xv).
11 Wheeler (2002) explained that the ecological regionalism is concerned amongst other things with the
balance between city and countryside, and is relatively holistic, normative, and place oriented
approach (ibid, p. 269). Regional science emphasized in economic development, quantitative
analysis, and social science methods (ibid, p. 269), the neo Marxist developed analysis of power and
social movements within regions (ibid, p. 269), the public choice regionalism is framed in neo
classical economics, and the new regionalism is framed in the values of sustainable development, and
is context sensitive, recognizes the postmodern region, often relatively place oriented; often action
oriented and normative (ibid, p. 269).
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On the other hand, Wheeler (2000) argued that some of the areas that could
receive benefit from some kind of regional coordination are land use, transportation,
air quality, water quality, ecosystem protection, affordable housing provision, and
social equity (ibid, p. 133). In another article, Wheeler (2002) explained that the new
regionalism is composed by the following five characteristics:
Focuses on specific territories and spatial planning;
Tries to address problems created by the growth and
fragmentation of postmodern metropolitan regions;
Takes a more holistic approach to planning that often
integrates planning specialties such as transportation and land
use as well as environmental, economic, and equity goals;
Emphasizes physical planning, urban design, and sense of
place as well as social and economic planning;
And Often adopts a normative or activist stance (ibid, p. 270).
The author also argued that to adopt a more holistic approach to regional planning we
need to consider the following statements:
Integrating traditional disciplines of planning within the
region;
Integrating different scales of planning national, state,
regional, local, neighborhood, and site in order to achieve
regional goals;
And putting current efforts within the context of regional
history and evolution (ibid, p. 274).
Based on those statements, the role of the planner is crucial for an effective
implementation of any sustainable regional planning effort. Of course there should
be many forms of knowledge blended in the process, and many professionals trained
in those areas, as well as the residents, which possess the experiential knowledge of
the region.
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On the other hand, the forum for the future (2004), a nonprofit organization
with a mission to promote sustainable development based in the United Kingdom,
developed ten steps to improve spatial planning in the regions. Those ten steps are as
follows:
Step 1 Develop a clear vision of where you want your region
to go
Step 2 Be clear about the role of the Regional Spatial
Strategy (RSS) in your region
Step 3 Align with other regional strategies
Step 4 Involve other key players and promote sense of
ownership amongst them
Step 5 Build capacity (Local Strategic Partnerships)
Step 6 Move away from silo' mindset
Step 7 Share knowledge and information across regions
Step 8 National government need to have clearer
communication channels with regional agencies
Step 9 Be flexible in decision-making so not to stifle
innovation
Step 10 Show the progress of the RSS in meeting the regions
vision (ibid, xx).
It is clear that many conceptualizations of regional planning recognizes the
importance of the parts working together, meaning more effective participation,
regional institutions, and governance. The regional planning processes should be
inclusive in nature. But, as Wheeler (2000) recognized, there are many dilemmas that
confronts the efforts designed to promote sustainability. The author identified the
jurisdictional fragmentation of urban areas as one those dilemmas, which can
undermine the ability to think regionally. Wheeler (ibid) stated that regional
initiatives are often caught in a squeeze between local governments jealously
66


guarding their turf and higher level governments that are often unable or unwilling to
support fledgling attempts at metropolitan coordination (ibid. p. 136). Exposed this
idea, then is seems logical to conceptualize governance.
2.13 Governance Conceptualization
There is an evident difference between government and governance. Osborne
and Gaebler (1993) explained that government is about doing things and delivering
services, whereas governance is leading society, convincing its various interest
groups to embrace common goals and strategies (ibid, p. 106). On the other hand
the United Nations adopted the governance definition by Kaufmann, Kraay, and
Mastruzzi (2009), whom defined the concept as ... the traditions and institutions by
which authority in a country is exercised28 (ibid, p. 5). Bueren and Heuvelhof
(2005) made reference to Mayntz (2003) who defined governance as a more
cooperative process for governing, policymaking, and decision-making. The
governance processes are ... different from old hierarchical model in which state
authorities exerted sovereign control over the groups and citizens that make up the
civil society (Bueren, Heuvelhof, 2005, p. 47). It is implicit in that statement that
governance is the sharing of power between the formal government and the
constituents.
Moreover, Kaufmann (et al. 2009) explained that;
This includes the process by which governments ore selected, monitored and
replaced; the capacity of the government to effectively formulate and implement
sound policies; and the respect of citizens and the state for the institutions that
govern economic and social interactions among them (ibid, p. 5).
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In an effort to operationalize the concept, Kaufmann (et al. 2009) argued that
for their definition of governance there are six dimensions to measure. The six
dimensions are as follows:
Voice and Accountability the extent to which a country's
citizens are able to participate in selecting their government,
as well as freedom of expression, freedom of association, and a
free media.
Political Stability and Absence of Violence the likelihood that
the government will be destabilized or overthrown by
unconstitutional or violent means, including politically-
motivated violence and terrorism.
Government Effectiveness the quality of public services, the
quality of the civil service and the degree of its independence
from political pressures, the quality of policy formulation and
implementation, and the credibility of the governments
commitment to such policies.
Regulatory Quality the ability of the government to formulate
and implement sound policies and regulations that permits and
promotes private sector development.
Rule of Law the extent to which agents have confidence in
and abide by the rules of society, and in particular the quality
of contract enforcement, property rights, the police, and the
courts, as well as the likelihood of crime and violence.
Control of Corruption the extent to which public power is
exercised for private gain, including both petty and grand
forms of corruption, as well as capture of the state by elites
and private interests (ibid, pp. 5-6).
Bueren and Heuvelhof (2005) mentioned Rhodes (1997) who recognized the
complexity of the aggregation of interests in planning, stating that governance
emphasizes that policies are formulated and implemented in multi-actor, networked
environments, in which actors pursue different goals (ibid, p. 47). The authors
argued that the ... relationship between actors in this networked environments are
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characterized by interdependencies, and the actors need to cooperate to achieve their
goals (ibid, p. 47). The concept of regional governance is tied to the concept of
social capital.
Wheeler (2002) argued that there are deep political difficulties against the
formulation and implementation of new regional governments. Among these
difficulties is the opposition from all level governing units to give up or share power.
Another political difficulty is ... the hostility of suburban voters unable to see how
their interests are tied to the well being of central cities, and the reluctance of central
city constituencies to see their progressive voting blocs diluted (ibid, p. 275).
As sustained in this literature review, new governance efforts seem to be
necessary for regionalism and sustainability. As Wheeler (2000) stated, Regional
institutions by themselves will not necessarily solve metropolitan problems (and can
at times get in the way) but do offer the possibility of coordinated approaches to
regional sustainability planning (ibid, p. 139). The next logical step is to revise what
is done in particular places regarding this kind of efforts.
2.14 Examples of Regional Governance
Albrechts, Healey, Kunzmann (2003), studied the European experience in
strategic spatial planning and regional governance, particularly in three regions. The
three regions the authors focused their work were Hanover City Region, Germany;
Flanders, Belgium; and Northern Ireland, United Kingdom. The authors argued that
those planning efforts involve the formulation and implementation of new institutions
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within the changing governing structures. They also argued that the motives for these
efforts are diverse, but the objectives have typically been to articulate a more
coherent spatial logic for land use regulation, resource protection, and investments in
regeneration and infrastructure29 (ibid, p. 113). Again implicitly are present in the
objectives the three basic elements of sustainability.
Albrechts (et al., 2003) presented five lessons based upon the experience of
European regions on strategic spatial governance. The lessons are as follows:
Lesson 1 Strategic spatial planning initiatives may look similar in broad
outlines, but they take many different forms, performing different kinds of
governance work in different contexts (ibid, p. 126).
Lesson 2 [ I Initiatives in strategic spatial planning can liberate
innovative creative forces, but they can also become exercises in holding
on the status quo (ibid, p. 126).
Lesson 3 Developing the spatial dimensions of such plans is not just a
matter of technical analysis, but the development of spatial logic and
2q Moreover, Albrechts (et al., 2003) explained that those efforts are part of a movement to
...recompose governance relations, to break away from the
functional/sectoral organization typical of many national and regional/local
governments, and to widen governance relations to incorporate in new
ways significant economic and local community stakeholders" (ibid, p.
114). The authors also argued that those efforts recognized "... the eroding
influence of national party politics in local political organization and
respond to reductions in national-level finance for local governments
(ibid, p. 114).
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metaphors that can command attention and carry persuasive power in
complex political contexts (ibid, p. 126).
Lesson 4 ... the importance of creating appropriate institutional arenas
for these regional spatial development initiatives (ibid, 127).
Lesson 5 Such initiatives benefit from the existence and acceptance of a
strong role for the state and a strong political consciousness of place
identity (ibid, p. 128). (Albrechts, Healey, Kunzmann, 2003)
In another case, Counsell and Haughton (2003) cited Murdoch and Norton
(2001), and Newman, (2001) who explained that in a concrete effort to establish and
promote regionalism in England, the country created the Government Offices for the
Regions in 1994. Those offices were created with the aim of providing a stronger
regional coordination role for central government departments. Another effort
mentioned by Counsell and Haughton (2003) were the arrangements for spending
European Union (EU) regional structural funds. To use those funds the European
Union required regional social partnerships to work together in the formulation of
particular strategies for spending.
Counsell and Haughton (2003) briefly described the new institutions and
governing arrangements for the implementation of regional efforts in England. One
of those governing arrangements is the Regional Planning Bodies (RPBs). The RPBs
are regional consortiums of local authorities created for the purpose of accountability
of the regional efforts. Another institution is the Regional Development Agencies
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(RDAs). The RDAs are widely based partnerships, with a strong participation of the
private sector. Their primary concern is regional economic development, although
they are required to promote sustainable development. The third institution is the
regional assemblies. Regional assemblies are voluntary, composed by the common
citizen, with very limited power. There are similar to the Junta de la Comunidad in
Puerto Rico.
Among the concrete efforts to plan the regions are the Regional Planning
Guidance (RPGs) and the Regional Economic Strategies (RESs). Both efforts are
intended to be complementary. RPGs are prepared by formal public debate, and the
participation of key actors. The planning process for the RPGs includes the
production of policy drafts, many revisions, and formal examination of the courses of
action in public. On the other hand, the Regional Economic Strategies are the
responsibility of the Regional Development Agencies.
Counsell and Haughton (2003) mentioned that there are other regional
planning efforts in preparation, which are regional transport strategies, and, regional
sustainable development frameworks (RSDFs). The aim of the RSDFs is to achieve
and promote a vision for moving towards sustainable development within the regions.
The framework is supposed to consider the key social, economic, environmental, and
resources issues and the interrelationships between them. The frameworks are
expected to be approved by the regional assemblies.
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As Counsell and Haughton (2003), Fuller, Bennett, and Ramsden (2004)
studied the new institutional structure introduce in England and Wales (in Wales with
more positive outcomes than in England, as they argued) since 1997. Among those
institutions the authors referenced the Regional Development Agencies (RDAs) and
other sub regional organizations involved in aspects of economic development, as the
local Eearning and Skills Councils (LSCs), and the Small Business Service (SBS),
and the like. The authors argued about the importance of social networks for regional
governance. The authors cited Newman (2001), who argued that the infusion of
networked forms of governance into existing hierarchical and market forms of
public service delivery, within a policy discourse emphasizing joining-up, has been
important in this agenda (Fuller, et al., 2004).
Fuller, Bennett, and Ramsden (2004) made reference to the works of Lowndes
and Skelcher (1998), Pierre and Peters (2000), and Stoker (2000), to explain the
normative dimension of networks in policy delivery. The author argued that the
networks are drivers for cooperation and coordination of action by state, quasi-state,
and non state agents. Fuller et al. (ibid) stated that the networks ...have the capacity
to address complex social and economic issues and work through the fragmentation
and complexity that characterize the public realm (Fuller, et al., 2004, p. 318).
Stratford and Jaskolski (2004) studied the approaches to local governance to
pursue sustainability in Tasmania, particularly in Glenorchy. The Glenorchy
experience is focused on the formation of precinct committees for the implementation
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