Growing Points of Southern California
The aim of this paper is to discuss and show up the main growing points of regional economic system of Southern California. The paper intends to bring together the aimed and contemporary implemented vectors of policy. On the economic side the importance of selected type of area development has playe...
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Інститут економіки промисловості НАН України
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Цитувати: | Growing Points of Southern California / D.V. Kuznetsova // Економічний вісник Донбасу. — 2014. — № 4(38). — С. 79-84— Бібліогр.: 16 назв. — англ. |
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irk-123456789-876232015-10-23T03:02:09Z Growing Points of Southern California Kuznetsova, D.V. International and Regional Economics The aim of this paper is to discuss and show up the main growing points of regional economic system of Southern California. The paper intends to bring together the aimed and contemporary implemented vectors of policy. On the economic side the importance of selected type of area development has played big role in public recognition. Eventually, the established system of polycentricity allows to involve and develop an unlimited number of industries, sectors and actors. It gives the opportunity and impetus for continuous and flexible modeling and fine tuning of sustainable and successful life sustenance. Extensively built cooperation relationships and promising sectors allows California to be and remain a leading regional and global hub. Discussing these processes and the related policy responses might also be interesting for many regions in Central and Eastern Europe, as similar developments might be expected in the future there as well. Метою даної статті є обговорення та виявлення основних точок зростання регіональної економічної системи Південної Каліфорнії. Була зроблена спроба об'єднати вектори політики, які були вже досягнуті в практиці і ті, якими характеризується сучасність. З економічної сторони велику роль в суспільному визнанні зіграв вибраний тип територіального розвитку. У кінцевому рахунку, сформована система поліцентризму дозволяє задіяти і розвивати необмежену кількість галузей, секторів та суб'єктів. Це дає можливість і стимул для безперервного і гнучкого моделювання і тонкої настройки сталого та успішного життєзабезпечення.Активне вибудовування відносин співробітництва з розвитком перспективних галузей дозволяє Каліфорнії бути і залишатися провідним регіональним і глобальним центром. Обговорення таких процесів і відповідних заходів політики також можуть бути цікавими для багатьох регіонів Центральної та Східної Європи, так як аналогічні зміни можна очікувати в майбутньому і там. Целью данной статьи является обсуждение и выявление основных точек роста региональной экономической системы Южной Калифорнии. Была сделана попытка объединить векторы политики, которые были уже достигнуты в практике и те, которыми характеризуется современность. С экономической стороны большую роль в общественном признании сыграл выбранный тип территориального развития. В конечном счете, сложившаяся система полицентризма позволяет задействовать и развивать неограниченное количество отраслей, секторов и субъектов. Это дает возможность и стимул для непрерывного и гибкого моделирования и тонкой настройки устойчивого и успешного жизнеобеспечения. Активное выстраивание отношений сотрудничества с развитием перспективных отраслей позволяет Калифорнии быть и оставаться ведущим региональным и глобальным центром. Обсуждение таких процессов и соответствующих ответных мер политики также могут быть интересны для многих регионов Центральной и Восточной Европы, так как аналогичные изменения можно ожидать в будущем и там. 2014 Article Growing Points of Southern California / D.V. Kuznetsova // Економічний вісник Донбасу. — 2014. — № 4(38). — С. 79-84— Бібліогр.: 16 назв. — англ. 1817-3772 http://dspace.nbuv.gov.ua/handle/123456789/87623 330.34 (73+722) en Економічний вісник Донбасу Інститут економіки промисловості НАН України |
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International and Regional Economics International and Regional Economics Kuznetsova, D.V. Growing Points of Southern California Економічний вісник Донбасу |
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The aim of this paper is to discuss and show up the main growing points of regional economic system of Southern California. The paper intends to bring together the aimed and contemporary implemented vectors of policy. On the economic side the importance of selected type of area development has played big role in public recognition. Eventually, the established system of polycentricity allows to involve and develop an unlimited number of industries, sectors and actors. It gives the opportunity and impetus for continuous and flexible modeling and fine tuning of sustainable and successful life sustenance. Extensively built cooperation relationships and promising sectors allows California to be and remain a leading regional and global hub. Discussing these processes and the related policy responses might also be interesting for many regions in Central and Eastern Europe, as similar developments might be expected in the future there as well. |
format |
Article |
author |
Kuznetsova, D.V. |
author_facet |
Kuznetsova, D.V. |
author_sort |
Kuznetsova, D.V. |
title |
Growing Points of Southern California |
title_short |
Growing Points of Southern California |
title_full |
Growing Points of Southern California |
title_fullStr |
Growing Points of Southern California |
title_full_unstemmed |
Growing Points of Southern California |
title_sort |
growing points of southern california |
publisher |
Інститут економіки промисловості НАН України |
publishDate |
2014 |
topic_facet |
International and Regional Economics |
url |
http://dspace.nbuv.gov.ua/handle/123456789/87623 |
citation_txt |
Growing Points of Southern California / D.V. Kuznetsova // Економічний вісник Донбасу. — 2014. — № 4(38). — С. 79-84— Бібліогр.: 16 назв. — англ. |
series |
Економічний вісник Донбасу |
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AT kuznetsovadv growingpointsofsoutherncalifornia |
first_indexed |
2025-07-06T15:16:41Z |
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2025-07-06T15:16:41Z |
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fulltext |
D. V. Kuznetsova
79
Економічний вісник Донбасу № 4(38), 2014
UDC 330.34 (73+722)
D. V. Kuznetsova,
Institute of Industrial Economics NAS of Ukraine, Kiev
GROWING POINTS OF SOUTHERN CALIFORNIA
Problem definition in general and its connec-
tion with important scientific and practical tasks.
Modern system of international relations in its essence
reflects to the transition from bipolarity to polycen-
trism. The variety of typologies of international sys-
tems is related to the determination of the number of
great powers or superpowers, and distribution of power
(influence) between them. It coexists and develops
three trends simultaneously: 1) directed bipolar-
confrontational model, in which socialist China may
take place of the former USSR; 2) leading to the con-
solidation of single-pole-authoritarian model, when the
world order is verified by USA based on its national
interests; 3) focused on the formation of a multipolar or
polycentric world, inter-state relations of which should
be governed by the spirit and letter of international law.
The main role in which is played by the balance of
interests of the leading countries - centers of political,
economic, cultural and military influence. The latest
model seems to be the most organic and beneficent to
mankind that transformed the foundations of long-term
and prosperous life [1].
Analysis of recent researches and publications.
The following definitions are the basis of most defini-
tions of systems — bipolar, multipolar, balanced and
imperial. If the new countries - challengers joined two
dominant states of the bipolar system comparable to
them by the power, the system is transformed into a
polycentric one. To the same equilibrium of the system
belongs to (or system of balance of power), where
several states retain approximately equal influence on
the course of international events. And only in the
international system of the imperial type the only pow-
er is dominated that surpasses far all other countries of
its combined power. On the basis of this approach M.
Kaplan built his typology of international systems,
theoretically possible in the modern world: the system
has a single veto, the system of balance of power, flex-
ible or rigid bipolar system, the universal and hierar-
chical system, where only the last two are not associat-
ed with polycentricity [2]. Wide survey of basic fea-
tures of polycentricity of South California could be
found in Suarez-Villa’s research [3].
Objective definition is to find out the main crite-
ria of polycentric area that could successfully be used
in different continent.
The main material of the study. Historically,
polycentrism is to replace the bipolar world order mod-
els related to a military-political and ideological con-
frontation between East — West. Approval of polycen-
tricity is a sustainable tendency to increase the diversi-
ty of regional interests in the modern world [4]. The
multipolar structure of the world is formed by many
geopolitical factors. Geopolitical poles, centers of
power, core of which is one or few countries develop-
ing the integration associations of economic nature
around (e.g., the European Union). The system of re-
gional associations is formed on the basis of ethnocivi-
lizational and cultural generality.
It has been expanding the range of geopolitical
dominance criteria in the modern world. For example,
the military capacity is no longer a fixture of the global
power center or main indicator of superpower status. A
multipolar world order is characterized by several fea-
tures. First, there are no clear and confrontational bor-
ders between the poles, while the "centers of gravity"
(USA, China, Germany, Japan) are clearly marked
inside the modern world poles. Secondly, in terms of
polycentrism an increasing number of international
parties used to be who claim to primacy, their individ-
ual interests are multiplying and, therefore, the number
of reasons of conflicts on a smaller scale increases, but
include a wide range of issues. Thirdly, the opportuni-
ties for new geopolitical combinations will appear with
the increasing number of centers of power. All of these
processes are directly or indirectly related to civiliza-
tional development of area, infrastructure of cities and
suburbs, increasing role of old and appearing of new
growth points in global scale.
Urbanization explosion of XIX-XX centuries and
mega-urbanization (i.e. the population growth of mega
cities in the total population of the world) in the field
of political development are correlated with the wide-
spread proliferation of mature of state system [4]. Ur-
banization is not merely a modern phenomenon, but a
rapid and historic transformation of human social roots
on a global scale, whereby predominantly rural culture
is being rapidly replaced by predominantly urban cul-
ture. Therefore It is proposed to consider the U.S. as
the world's most ethnically diverse and multicultural
nations country, namely, California, that is one of the
most attractive regions globally to research of the most
different spheres of activity.
The Southern California mega-region encom-
passes over 53,000 square miles - roughly 1.5% of the
land area of the United States. Although comparable to
the size of the states of Arkansas or Georgia, its effec-
tive size, given that nearly 2/3 of the region’s lands are
government-owned and thus off-limits to development,
is much smaller, around the physical size of Massachu-
D. V. Kuznetsova
80
Економічний вісник Донбасу № 4(38), 2014
setts with three or four times their population. Howev-
er, the mega-region’s more dense development pattern
results in a population that represents over seven per-
cent of the US population, demonstrating not only its
significance in terms of size, but also its relative impact
in so small an area [6].
Fig. 1. Comparison of 2013 GDPs
Modern Southern California is presented by con-
centrating highly diverse service and industrial activi-
ties that are made accessible through the region's sys-
tem of freeways and roads. Southern California is in-
cluded in the list of world's largest economy with the
gross state product (GSP). In 2013, California GDP
grew by 2% ($2 trillion to $2.2 trillion) (see Figure 1).
California's largest private industry sectors: Finance,
insurance, real estate, rental, and leasing (20.9% of
state GDP); trade, transportation, and utilities (15.1%
of total GDP); professional and business services
(13.2% of state GDP); and manufacturing (10.9% of
state GDP) [7].
Los Angeles and San Diego, the two main cities
in Southern California, were peripheral outposts to the
American urban system one hundred years ago. Both
cities were founded through the missionary settlement
efforts of Spanish colonization, starting in the 17th
century. The high rate of growth of territories and ur-
banization made South California the great representa-
tive of conurbation system - as a region comprising a
number of cities, large towns, and other urban areas
that, through population growth and physical expan-
sion, have merged to form one continuous urban and
industrially developed area. In most cases, a conurba-
tion is a polycentric urban agglomeration, in which
transportation has developed to link areas to create a
single urban labour market or travel to work area.[1]
The term "conurbation" was coined as a neologism in
1915 by Patrick Geddes in his book Cities “In Evolu-
tion”, where he drew attention to the ability of the new
technologies of electric power and motorised transport
to allow cities to spread and agglomerate together. For
now it is a conurbation as the country's largest demo-
graphic agglomeration and most important foreign
trade center, with the largest volume of exports and
imports.
It is the example of polycentric metropolitan form
with a vast mosaic of municipalities sprawling over
11,000 square kilometers of very diverse terrain. The
vast mosaic of disparate communities fostered much
spatial segregation by income or wealth, with more
than 300 gated neighborhoods providing the most ob-
vious examples of social and economic separation that
one can probably find in the United States. As a result,
Southern California became the quintessential example
of polycentricity, with an extremely diverse agglom-
eration of communities, activities and population [8].
The region's polycentricity has set the spatial con-
text in which flows, network structures, transactions
and location decisions occur. It means that Southern
California's global gateway was built on cooperation of
labor flows and networks which became extremely
important for almost every economic activity found in
the region, from Hollywood to the furniture and textile
manufacturers of Los Angeles, to the advanced high-
tech, aerospace and biotechnology complexes which
make up. For example, the sort of binational polycen-
tricity has turned part of the metropolitan region (on
the Mexican side) into a major 'offshore' production
center in electronics, rivaling the most successful Asian
enclaves.
Southern California's polycentric metropolitan
structure has fostered a great deal of segmentation, in
virtually every sector or activity. As a result, vastly
different activities, disparities and standards have been
able to coexist within this region. The high level of
segmentation has also provided it with many competi-
tive advantages, by allowing firms and institutions to
connect with the vast spectrum of opportunities and
resources that are available in the sprawling metropoli-
tan mosaic [3].
Flexibility is another important characteristic that
is partly a result of segmentation. The vast mosaic of
communities and business centers provides greater
D. V. Kuznetsova
81
Економічний вісник Донбасу № 4(38), 2014
locational flexibility than would occur in older, mo-
nocentric metropolises, or in cities with less well-
defined polycentric structures. Southern California's
polycentricity makes it possible for a large number of
disparate activities to be found in relatively close prox-
imity, often straddling municipal boundaries. For ex-
ample, the high reliance on individual transportation
adds to this flexibility, through the sheer number of
routing choices and the redundancies of the road net-
works.
Beyond the region's specific context, it can be ar-
gued that polycentricity has also affected the functional
relationships involved in many economic activities,
including those which provide it with its globally com-
petitive base [1].
Here is wherewith to ensure and support such
kind social and economic system and entire cycle range
of products and services, California’s polycentricity
system holds on the employment sector. It is one that
has huge influence on the development of Southern
California as most famous international hub. The gov-
ernment of California is the largest industry - about 2.5
million employees (12%). The second largest industry,
according to the census, health care and social assis-
tance (see Figure 2). A big role in employment gov-
ernment structures play: armed forces, police districts
and cities, the Federal Bureau of investigation, the
prison system (state and federal), the internal revenue
service, postal service. Among the largest public em-
ployers in the state are distinguished naval and air ba-
ses. The average payment scale of those are presented
on figure 3.
In California in the mid-20th century had been
appeared such innovation in retail, as, fast food restau-
rants and credit cards. It has influenced on further de-
velopment of growing points of California in all cur-
rent spheres.
USA is planning to change its immigration re-
strictions for prospective students, entrepreneurs, art-
ists and scientists. Their contribution as citizens will
create millions of new jobs, without prejudice to Amer-
ican workers. For example, there are such unveiled
plans in Obama’s administration to create "an elite
corps” of highly qualified teachers of exact and natural
sciences. The project is estimated at $1 billion, it aims
to improve the quality of education in areas critical to
the future growth of the U.S. economy, mathematics,
natural sciences, technology and engineering disci-
plines, as well as to raise the average level of education
in the USA [12; 13]. His good physical shape is to
follow the US President Barack Obama provides lead-
ership on health and economic benefits of disease pre-
vention through an active lifestyle and sensible nutri-
tion. This will lead to increased productivity and lower
medical costs.
Many colleges are accessible access points for
learning, many of them have an active agenda to ensure
education for immigrants and their children [14]. Alt-
hough some programs receive funding from the state or
municipalities (direct or indirect), the benefits ultimate-
ly received in the regional economy through increased
productivity and income.
Fig. 2. Employment structure of Southern California
D. V. Kuznetsova
82
Економічний вісник Донбасу № 4(38), 2014
Fig. 3. Average payment by sectors
The U.S. experience shows that investment in
human capital is 25% cheaper than attracting trained
worker, payback and profitability of these investments
is quite high and, accordingly, the degree of risk is low.
On other hand, human capital is the main secret of the
success of the Silicon Valley - sustainable growing
point of this state. More than one city the world could
boast that every second inhabitant is of higher educat-
ilization (as a minimum, a bachelor's degree). The level
of education of the San Francisco competes only with
the second "smartest" city in the USA — Boston, but
so far with mixed success. Eventually however, the
"appetite" for the talent here is not reduced: Silicon
Valley needs all new technicians. In Valley recruiting
of successfully workers is ensured by big choice of
headhunter agencies. Their services for the employer
are about average cost 30% of the annual salary of the
candidate (however, the replacement of the agency
guarantees).
South California took aim at global gateway not
only by the strategic tool as polycentric employee sec-
tor, but also with high-capacity transport system which
provide unimpeded movement of citizens. Secretary of
U.S. Department of Transportation Norman Mineta
recently said, “We understand the immediate link be-
tween continued investment in infrastructure and our
nation’s economic prosperity…Transportation is key to
the productivity, and therefore the success, of virtually
every business in America. Congestion and inefficien-
cy in transportation are not just inconvenient and ag-
gravating…but they are also a tax that burdens every
business, every community and every individual. We
have to find ways to lighten that load.” [15] (see figure
4).
Transportation system of goods and California’s
place in the global economy have become high priori-
ties for decision-makers at both the State and national
levels. Early in Governor Gray Davis administration
was launched an initiative to solidify the Golden
State’s position as the West Coast gateway for goods
entering or leaving the United States from or to the
Pacific Rim. Governor Davis spearheaded the devel-
opment and implementation of the Traffic Congestion
Relief Program (TCRP), a nearly $8 billion investment
effort to upgrade California’s infrastructure to ease
congestion and improve mobility. The TCRP repre-
sented the single largest investment in transportation
infrastructure improvements in the State’s history [16].
Till now such kind policy of international trade and
goods movement has supported these critical elements
of California’s, and the nation’s, recent economic suc-
cess. With more than $350 billion in international
commerce, California’s economy depends on trade.
More than one in seven California jobs are tied to
trade.
In response, much of the South California region
is changing to address today’s problems and tomor-
row’s demands. Many cities within the mega-region’s
urbanized core, in Los Angeles, Orange, Riverside and
San Diego counties, are relying more frequently on
infill and redevelopment to accommodate both the new
and existing population, while at the same time recreat-
ing the way the metropolis looks and functions. A con-
certed effort to build and develop around a public
transit network is reshaping the region and laying the
foundation for a truly global city.
Conclusion. Southern California’s continued suc-
cess may be in jeopardy. Rapidly increasing conges-
tion, continued growth away from transportation hubs
and economic centers, and poor air quality threaten the
region’s ability to maintain a competitive edge in the
global economy. Recently, a dramatic rise in housing
prices, coupled with an ever-widening income and
prosperity gap has made first-time home purchase dif-
ficult for most residents. Environmental sustainability
is also a concern as a growing population leads to
D. V. Kuznetsova
83
Економічний вісник Донбасу № 4(38), 2014
greater natural resource demands for land, energy and
water. But the most powerful tool which used in man-
agement of the region is: «Whether the topic is schools,
parks, roads, water supply systems, or ports, the mes-
sage is the same — make better use of what we have”
[10]. It shows more than big potential of Californians,
but their strategic openness for changes.
Fig. 4. National Intermodal Freight Flows to/from the Los Angeles Region
Balancing growth and extending opportunity of
human capital, infrastructure and technologies should
be essential to the region’s future. Growing points are
mostly presented by sustainable sectors which could be
changed according to current situation and strategic
plan. In the near future, it doesn’t look like vectors of
changing will be shift the directions.
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Кузнецова Д. В. Точки росту Південної
Каліфорнії
Метою даної статті є обговорення та виявлен-
ня основних точок зростання регіональної еко-
номічної системи Південної Каліфорнії. Була зроб-
лена спроба об'єднати вектори політики, які були
вже досягнуті в практиці і ті, якими характери-
зується сучасність. З економічної сторони велику
роль в суспільному визнанні зіграв вибраний тип
територіального розвитку. У кінцевому рахунку,
сформована система поліцентризму дозволяє
задіяти і розвивати необмежену кількість галузей,
секторів та суб'єктів. Це дає можливість і стимул
для безперервного і гнучкого моделювання і тонкої
настройки сталого та успішного життєзабезпечен-
ня.
Активне вибудовування відносин співробіт-
ництва з розвитком перспективних галузей дозво-
ляє Каліфорнії бути і залишатися провідним регіо-
нальним і глобальним центром. Обговорення таких
процесів і відповідних заходів політики також мо-
жуть бути цікавими для багатьох регіонів Цен-
тральної та Східної Європи, так як аналогічні зміни
можна очікувати в майбутньому і там.
Ключові слова: полiцентризм, агломерація,
хаб, Південна Каліфорнія, урбанізація, мега-регіон.
Кузнецова Д. В. Точки роста Южной Кали-
форнии
Целью данной статьи является обсуждение и
выявление основных точек роста региональной
экономической системы Южной Калифорнии. Была
сделана попытка объединить векторы политики,
которые были уже достигнуты в практике и те,
которыми характеризуется современность. С эко-
номической стороны большую роль в обществен-
ном признании сыграл выбранный тип территори-
ального развития. В конечном счете, сложившаяся
система полицентризма позволяет задействовать и
развивать неограниченное количество отраслей,
секторов и субъектов. Это дает возможность и сти-
мул для непрерывного и гибкого моделирования и
тонкой настройки устойчивого и успешного жизне-
обеспечения.
Активное выстраивание отношений сотрудни-
чества с развитием перспективных отраслей позво-
ляет Калифорнии быть и оставаться ведущим реги-
ональным и глобальным центром. Обсуждение
таких процессов и соответствующих ответных мер
политики также могут быть интересны для многих
регионов Центральной и Восточной Европы, так
как аналогичные изменения можно ожидать в бу-
дущем и там.
Ключевые слова: полицентризм, агломерации,
хаб, Южная Калифорния, урбанизация, мега-регион
Kuznetsova D. V. Growing Points of Southern
California
The aim of this paper is to discuss and show up
the main growing points of regional economic system
of Southern California. The paper intends to bring
together the aimed and contemporary implemented
vectors of policy. On the economic side the importance
of selected type of area development has played big
role in public recognition. Eventually, the established
system of polycentricity allows to involve and develop
an unlimited number of industries, sectors and actors.
It gives the opportunity and impetus for continuous and
flexible modeling and fine tuning of sustainable and
successful life sustenance.
Extensively built cooperation relationships and
promising sectors allows California to be and remain a
leading regional and global hub. Discussing these pro-
cesses and the related policy responses might also be
interesting for many regions in Central and Eastern
Europe, as similar developments might be expected in
the future there as well.
Keywords: polycentricity, conurbation, hub,
Southern California, urbanization, mega-region.
Received by the editors: 27.11.2014
and final form 23.12.2014
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