Post by Mihnea Constantinescu
Deputy Governor | Economic Analysis and Policy | Machine Learning | Digital Transformation
Post-war Reconstruction: distinguishing probable and achievable from economic chimeras A brief article on the need to synchronize policies across different geographical scales and the challenges to achieving a sustainable #development. Key messages: >> From Tallinn to Sofia, “Khrushchevkas” are the legacy reminding us of what happens when the post-war #housing question is answered from a too literal perspective. The temptation to answer it as before, understandably looms large. >> There are no easy, immediate answers which ease short-term pressures without sacrificing long-term #growth potential. Formally quantifying these will be an important first step in deciding the redevelopment path. >> Ukraine will face the full-spectrum of #urban and #regional challenges: from 20th century post-war reconstruction of destroyed communities to 21st century city traffic optimization. >> Macro needs to dance in tune with Regional and Urban Policy: a development strategy focused on #knowledge intensive industries will require a close network of highly skilled workers. These can mostly be found in urban areas, where proximity enables frequent face-to-face exchanges. Contrast this to a traditional #industrial development strategy where a capital-intensive production facility may be located in the countryside, without an equivalent need for high skilled labor inputs but large initial fixed capital outlays. Concrete recommendations: > Data needed to understand where we stand is missing, little analysis can be done without it. Using lessons from other countries implicitly assumes the context is the same (both past, present and future) > #Digitalization can and should act as a reformer of institutions and an enabler of well-functioning, transparent markets Urs Thomann, Han Van de Wetering, Mike Lydon, Kobe Boussauw, Julia Hoagland, Donald Shoup, Karel Stransky, Tomáš Ctibor, Bernhard Kalkbrenner, Ralf-Peter Koschny CRE FRICS, Neil Madsen