Bobby van-urban development and lessening the need for social assistance (November 9th 2010)

Home / Bobby van-urban development and lessening the need for social assistance (November 9th 2010)

A version of this article originally published in revista 22

 

We see the failure of the State asistential from two perspectives. 1) State is not an efficient provider of social services. 2 create an artificial State) class of assisted and addicts, a group of people who, in the absence of State intervention in the economy, would be productive. These assisted social should not be prosecuted and made scapegoats for the crisis, you have that many of them would actually want to escape their status as addicts, but the current system restricts them serious opportunities. I will describe below the most important obstacle that you create the Romanian State in the way of issuing these occasions of their State of dependency and people at a minimum level, in particular in rural areas. I want to emphasize that we are dealing not just with an economic problem, but also with a deep injustitie: as the State fails to provide is one, but a-i and impede people to prosper through their own efforts amounted to a whole new level.

 

A modern country has less than 10 percent of the population in many rural areas, around 2-3%. Romania still has 45,4% of the population in rural areas. Decrease occurs extremely slowly (0,2% per year) due to restrictive regulations. In the current pace, it would take more than 170 years to approach normality. This huge percentage rural is one of the main reasons of very weak economic efficiency of Romania, whose development is a serious economic disaster frânata in rural areas. The productivity of many cities, with the exception of the Communists, industrial dinosaurs is decent, and the capital is very high. Rural areas cannot realistically become productive as I am still so populated and, by default, the properties are very low. The situation of our agriculture is jenanta: arabila Romania area per capita is double the European average, but with a productivity level of the 19th century, we import 70% of its agricultural products. Instead of being one of the great European agricultural producers, Romania is the last. The standard of living in rural areas compared to urban, is extremely low and many of them, if they could, they would move to the city. Romania's economic development depends on so fast, as urbanization and the removal of the rural environment from sustenance depends on the same thing.

 

Bucharest is one of the goals of migrants from rural areas and from other areas, is the most prosperous part of Romania. Although it has only 9 percent of the country's population, bucurestenii are paying one-third of all taxes from Romania. Life expectancy in the capital is two years higher than in the rest of the country. A large part of Romania is literally held in Bucharest through set blames by potlatch. Alternative to the potlatch is endogenous productivity and prosperity. But they do not depend on the people themselves as the context in which they are located. Bucharest's prosperity is in large measure a direct consequence of its population-when you have 2 million potential clients, manage to sell any more. Business what else fails, here succeed.

 

What stops people to come to the capital, or in other cities, it's exorbitant price (for them) of housing and rents. These people are so poor that they can not afford to pay the first step towards becoming rich. Natural expansion of cities is prevented through the legal separation between the built-up area and artificial limits, which prevent the construction firms to expand their cities as demand-shall not build in the so-called zone "ouside town". Bucharest is the situation clearer: Density in Bucharest reached ~ 8,500 persons/km2 (twice the average in European capitals) while, for example, in Budapest is ~ 3200 persons/km2. The two cities have roughly the same population, but Budapest has an area over twice as large. Bucharest is by far the most dense in the EU capital, Copenhagen, with the next being "only" ~ 6000 persons per km2. Bucharest is an anthill, but naturally not, but as a consequence of the strap is legal.

 

To remove rural-urban migration threshold, without putting at risk the prosperity the existence of measures of centralized management of unhappy kind trying for Cairns, there is a simple solution: you have simply allowed cities to grow naturally, achievable by eliminating commercial garages/withdrawing. All that has made state here is free to leave something that now prohibit. The effect would be price decrease rents, apartments and plots of land, which would lower the threshold to move. Urbanization process would accelerate. The economic effects are two: economic agricultural productivity sicresterea urbana as a large quantity of cheap labour force becomes available, and the potential customer base grows. The political effect is also predictable: the drying up of the main PSD electoral pool. Why not see this PDL and PNL is a mystery to me, the peasants come to town being probably one of the most right-wing people in Romania. And the effect is a decrease in the number of people addicted to social work and increase the number of those able to autosustina financial families.

 

Thanks: Horia Tabia, which made me aware of the importance of the zoning laws.