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Urba n De ve lopme nt in Tra ns ition Economie s a nd Its Implications for North Kore a
Sang-Jun Lee
S UMMARY
The purpose of this study is to review the trends of urban changes in China, Poland and the former DDR after beginning of economic transformation and to define its implications for North Korea.
This study consists of five chapters. In Chapter 1, research obj ectives and methods are discussed. The second chapter deals with conceptual relationship of economic transformation with urban spatial changes briefly. In this study, marketization, privatization and economic globalization are defined as the key variables determining the post-reform urban development in transition countries.
In Chapter 3, the process of economic transformation and its consequences in urban development in China, Poland and the former DDR are discussed. In contrast to Poland and the former DDR, China adopted a gradual approach to economic reform . Marketization in land and housing and attracting foreign investment by globalization in these countries have begun to change the scene of urban development . Especially, positive stimulating effects of foreign direct investment in
urban development have been observed in China. Many special economic zones mainly located in the southeastern coastal cities played an important role for attracting foreign direct investment in China.
An important spatial consequence of transformation was the growing regional disparities in transition countries. The problem of unemployment was serious in the regions that were based on heavy machine industry. It was one of the typical problems of transformation in these countries. Especially, the cities where economic base was deeply connected with big state-owned enterprises should be confronted with serious economic depression. In Poland, the cities located in the Upper Silesia with coal and steel industries represent the most difficult economic problems.
As urban spatial consequences of marketization, privatization and globalization, suburbanization and revitalization of central areas were found in these countries. Suburbanization was one of the spatial consequences of changing spatial behavior of the civilian and private enterprise affected by special transformation measures like the privatization of land ownership and state-owned enterprises. Also, intensive and diverse land use was one of the important spatial consequences of transformation. After the privatization of land and the state-owned enterprises, a pattern of diverse and intensive land use appeared.
In Chapter 4, some important implications of urban consequences of economic transformation for North Korea are identified. In this study, changing industrial demand and geographic characteristics of cities are identified as the main factors which could play an important role in urban growth and development in North Korea according to the forthcoming economic reforms. These two factors are drawn from the review of experiences of urban transformation process in China,
Poland and the former DDR. If economic reforms are implemented in North Korea, the winners and losers among the North Korean cities could be more apparent . The economic problems such as high unemployment and low investment could be more serious in the cities that are based on heavy industries than in the cities which have potentials for service and light industries. Also, easy accessibility to foreign market, including South Korea, could be one of the strengths for urban growth. The cities which have poor geographical conditions would face problems of low investment . For the balanced urban development in North Korea in the future and attracting foreign investments, the improvement of infrastructure in the cities which have poor geographical conditions and specialized with heavy industries should be considered as one of the important policy issues.