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Gentrification—more wealthy people moving into lower-income communities—often faces opposition, sometimes for the wrong reasons. It is important to consider all benefits and costs when formulating urban development policies.
A recent paper by Harvard economists Daniel Shoag and Peter Ganong titled, Why Has Regional Convergence in the U.S. Stopped? indicates that land development regulations tend to increase housing costs, which contributes to inequality by excluding lower-income households from more economically productive urban regions. Does this means that planners are guilty of increasing income inequality?
I spent last week at the Asian Development Bank (ADB) headquarters in Manila, in the Philippines, where we are starting on an exciting but humbling project: developing a more comprehensive framework for transport project evaluation. Among other factors, this project will develop better methods for incorporating social equity impacts into transport planning. This is important in any community, and particularly in developing countries where many people are extremely poor. What transport policies and planning practices respond to their needs?