How are places created through place making processes? Key Idea 5a: Place is produced in a variety of ways at different scales. Learning Objectives: To understand the concept of place making and how governments and organisations attempt to present places to the wider world to attract investment and regeneration.

How are places created? Places are created through place-making processes, in a variety of ways at different scales. The making of both urban and rural places where the increasing number of people will live, work and play presents a number of challenges. Places are keen to attract inward investment so that growth can be sustained or regeneration started. Governments and a wide variety of other organisations (players) are responsible for promoting places of all scales in order to attract such investment.

What is placemaking? Placemaking is a multi-faceted approach to the planning, design and management of public spaces. Placemaking capitalises on a local community's assets, inspiration, and potential, with the intention of creating public spaces that promote people's health, happiness, and well being. It has people at the heart It is about how the environment and society would benefit Therefore placemaking purely for economic gain is not possible

Who creates places? Governments (national to local scale) Local community groups Planners and architects

If you were placemaking, what would you prioritise? Improving environmental quality Reducing crime rates Designing buildings and public spaces Increasing social cohesion Reflecting the history and culture of the place Creating a 24 hour city Attracting tourists Reducing the speed of traffic through the place Promoting the use of a community centre Attracting Foreign Direct Investment Most important Remember, you will need to discard one characteristic and be able to justify your rankings. Least important

Improving environmental quality For each of these responsibilities, discuss how the government could achieve it. Improving environmental quality Looking at your options for creating a place, which four are the responsibility of the government? Reducing crime rates Increasing social cohesion Attracting Foreign Direct Investment

What is Foreign Direct Investment? The investment from one country into another (normally by companies rather than governments) that involves the setting up of operations and asset acquisition.

How are places created? The attraction of FDI Governments have been keen to attract FDI from TNCs – and this has become increasingly important when place making has had regeneration as its main aim, for example in places where de-industrialisation has been severe. Most flows of FDI come from TNCs headquartered in ACs, such as Barclays, Sony and Nestle with over 60% of their investments going to other ACs. Increasingly, a growing number of TNCs originating from LIDCs and EDCs are operating globally e.g. Tata is an Indian based TNC which runs a manufacturing portfolio of companies such as steel-making and vehicle assembly in over 100 countries including many ACs. ** put together a case study of a place where FDI has been attracted, helping to change that place. Make sure you can describe the role governments and/or other organisations had in attracting the investment.

Why do governments want to attract Foreign Direct Investment when placemaking? To advance the economic status of the place, particularly if that place has undergone major structural change and the loss of traditional industries such as coal mining, iron and steel and heavy manufacturing. To create new jobs. To create competitive, dynamic and globally connected places. For access to new technology, products, skills and financing. To become more actively involved in international business activities.

What is Foreign Direct Investment? FDI has increased enormously since 1980. Most FDI flows of capital are from TNCs headquartered in ACs e.g. Barclays, Sony and Nestle. Over 60% of their investments are in other Acs. TNCs originating from EDCs and even LIDCs are having an increasing presence regionally, and in some cases, globally e.g. Tata (an Indian based TNC) owns Jaguar Land Rover. China is set to become one of the world’s biggest overseas investors by 2020. In 2015, US$100 billion of FDI was invested by Chinese companies worldwide.

How do governments attract Foreign Direct Investment? Reinventing a place e.g. Dubai has reinvented itself from a small fishing village to a hub city with many global brands locating there. Dubai is now a regional hub in media, finance & business for example. Creating places that are uniquely attractive to talented workers so that they want to be there and live there, and by so doing, they create the circumstances for substantial job creation and income growth by attracting businesses that are looking for concentrations of talented workers. Creating infrastructure e.g. in Cambridge the creation of a specific ‘Science Park’ as a zone that has attracted many high tech companies, including Astra Zenica which was originally founded in Sweden. Specific policies e.g. Birmingham now offers direct flights to India and China and this has supported foreign direct investment growth which increased by more than 50% against a national increase of just 11% in 2013. This has created an additional 4,000 local jobs and is worth an estimated £174 million to the local economy per year.

Hitachi rail Create a brief fact-file (page179) on the role of Hitachi. Include the following: Date. Location. Investment. Why have Japanese TNC been keen to invest in the UK since the 1980s? Information about the plant at Newton Aycliffe. The impact of Hitachi Rail on the economy of Newton Aycliffe. 30/08/2019