The Economy of Cities
The Economy of Cities explores the intricate dynamics of urban development and economic growth within cities, emphasizing how interconnected trade among various cities fosters the creation of "new work" and diverse economic organizations. Jane Jacobs, the author, posits that development thrives on "valuable inefficiencies" rather than mere production efficiency, asserting that fragmented industries can lead to innovative economic outcomes. She highlights the role of export activities and their associated suppliers as foundational elements in this process, while attributing significant city growth to "import replacement," which stimulates job creation and overall economic activity.
Jacobs’ work challenges conventional urban planning methodologies, advocating for a deeper appreciation of the organic growth patterns inherent in city life. Her perspectives have sparked debates among urban planners and economists, with some praising her insights while others criticize her approach as lacking rigorous scientific support. Despite the criticism, her concepts have resonated with both the general public and academia, illustrating a significant shift in understanding urban economics and development. This discourse underscores the importance of recognizing the unique characteristics of cities in fostering economic vitality.
The Economy of Cities
Published 1969
Author Jane Jacobs
A work of social criticism that asserts that city inefficiencies and creative local economies are vital elements contributing to healthy urban development. It contains a vision of why cities either grow or decay and articulates a scenario for city economic development based on wide-ranging examples from historical and contemporary cities.
Key Figures
Jane Jacobs (1916-2006), author
The Work
A central theme in The Economy of Cities is that development is a process by which a group of cities engaged in trade with each other create “new work” to add to the work already being done. This process depends on having a large number of diversified economic organizations whose interactions lead to “economically creative breakaways.” Therefore, in describing development in Birmingham, England, Jane Jacobs states that “fragmented and inefficient little industries” were responsible for adding new work and creating new organizations. In her opinion, “valuable inefficiencies,” not efficiency in producing existing goods and services, results in new work. Jacobs believes that cities grow by gradually diversifying and differentiating their economies, and that this process starts with exports and their suppliers. However, she attributes “explosive” city growth to the effects of import replacement. Import replacement brings rapid expansion of total economic activity, expanding markets for rural goods as the composition of city imports shifts, and rapid growth in jobs. This leads to a further expansion and diversification of exports.
Impact
When she wrote The Economy of Cities, Jacobs already had a reputation as a defender of cities against planners and architects who promoted urban renewal in the form of sterile housing projects. In her earlier work, The Death and Life of Great American Cities (1961), she contemptuously cast aside contemporary urban planning and promoted the dynamic qualities of city neighborhoods. Writing in 1968, her most prominent critic, Lewis Mumford, applauded her “fresh insights and pertinent ideas” but decried her “series of amateurish planning proposals that will not stand up under the most forbearing examination.”
In The Economy of Cities, Jacobs drew parallels between cities that were centuries and continents apart and peremptorily rejected the ideas of economists when they conflicted with her unusual and original thesis. Urban planners attacked her approach because she disregarded scientific studies of cities and regions. However, the general public and the academic community agreed with Charles Abrams, a Harvard University professor who noted the book’s timeliness and hoped that the book would focus public attention on neglected issues and theories.
Related Work
The Urban Prospect (1968), by Lewis Mumford, is a collection of essays on urban development that contains Mumford’s critique of Jacobs’s The Death and Life of Great American Cities.
Additional Information
For a further examination of cities and why they are decaying, see Cities and the Wealth of Nations: Principles of Economic Life (1984), by Jane Jacobs.