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New Urban Management discusses how the logic of economic flows poses a challenge to local governments throughout the world. The book argues that the increased fluidity in economic life must have its reflection in local economic development policy.



1. Introduction

Discussion in this chapter aims to clarify a special aspect of globalisation, the increased fluidity in economic life, which urges local governments to reconsider the premises of their economic development policy. One new direction in this respect is emerging ‘flow paradigm’, which provides conceptual tools to understand the current economic reality and its dynamics. Ability to attract global flows depends less and less on hard factors of production and more and more on collective symbolic capital. Hence, the relevance of city branding in global competition between cities. Such observations boil down to the idea of new urban management that focuses on attracting flows of values, such as capital, technological know-how, innovative firms, creative people and tourism consumption, to branded hubs in order to guarantee their wealth and economic resilience.
Ari-Veikko Anttiroiko

2. Process View of Local Economy

The promotion of local economic development takes place in an increasingly fluid economic environment. This is why local governments benefit from better self-understanding of their nature as hubs of flows or ‘dissipative structures’, which opens up a view of a city’s interaction with the outside world. This chapter builds a picture of local economy within such a framework. Discussion starts from approaches to flows and continues with flow-based views of urban community and economy. It conceptualises local economic processes and builds ideal models of growing and declining city, which illustrate the idea of city as a dissipative structure. Lastly, this section discusses the implications of such a view to local economic development policy.
Ari-Veikko Anttiroiko

3. Flows of People, Cultures and Symbols

This section discusses the aspects of urban dissipative structure that go beyond material flows. Discussion starts with a brief outlook of migration flows. Next topic is the political economy of urban symbolism followed by discussion of economies of signs and of the cultural landscapes of late modernity. The figures whose theorisations are in focus include Manuel Castells, Scott Lash, John Urry and Arjun Appadurai. This chapter provides not only a glance at space of flows and similar concepts but also a selective introduction to the sociological side of flow analysis.
Ari-Veikko Anttiroiko

4. Economic Frameworks for Flow Analysis

This chapter outlines the idea of flows in terms of economic taxonomies and categorisations. It provides brief description of circular flow models, T-account analyses (e.g. GDP), industry and cluster classifications, trade and capital flow analyses (especially FDIs) and descriptions of flows of goods and materials. The idea is to popularise the approaches and conceptualisations of flows on the basis of the rudimentary concepts and models in mainstream economics. Beside this, this chapter briefly discusses interregional flow analysis developed by Walter Isard and the new geography of flows as presented within Ga WC research network led by Peter J. Taylor. This section thus provides conceptual tools needed to build a clear picture of flows that have economic value.
Ari-Veikko Anttiroiko

5. Flow Analysis in Urban Management

In this chapter, an economic flow analysis is built to concretise the picture of a city as an economic dissipative structure with in and out flows of consumption and production. Discussion is divided into three themes according to Attractors-Flows-Dynamics scheme: attraction factors, economic flows and dynamics of specific flows. As the types of flows are numerous and each have a dynamic of its own, this section discusses only selected types of flows as representative examples of the variety of economic flow dynamics. They are grouped into two broad categories, flows of business and people. Such flow analysis can be used by urban governments in managing their economic processes and directing development efforts to actions that maximise their benefits in the increasingly fluid economic environment.
Ari-Veikko Anttiroiko

6. Attraction Management of Branded Hubs

This chapter starts by linking localities with global economy using the scheme known as City Attraction Hypothesis. It discusses the attraction-oriented urban development in the context of global intercity competition. The rest of the discussion takes a managerial view on flow analysis and related urban attraction management. If the economy is increasingly fluid, how are we supposed to promote urban economic development? What are the preconditions of the urban development vis-à-vis global space offlows? This section points to the increased importance of urban symbolism and its potential to improve cities’ ability to attract factors of production and consumption from the global flows. This discussion culminates in brand management as an aid to attraction management with a focus on mass, arena, institution and media branding.
Ari-Veikko Anttiroiko

7. Concluding Remarks

This book provides a picture of new urban management. It is ‘new’ in the sense that the idea of urban management is built on a new premise, i.e. on cities’ need to cope with increasingly fluid economy. Value flows cannot be attracted by infrastructures or amenities alone but require also collective symbolic capital. This is why city branding is a valuable method to any city that has or aspires to have an important role in some industries or niches in the global economy. The new urban management is, thus, a doctrine and practice that focusses on attracting flows of values, such as capital, technological know-how, innovative firms, creative people and tourism consumption, to branded cities in the purpose of guaranteeing resilient vitality and wealth through the maintenance and development of city’s transformative capacity. Taming the flows, in turn, is the key to cities’ future role as the primary loci of global solidarity.
Ari-Veikko Anttiroiko


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