By Neel Bhargava
To accommodate the growing and rapidly urbanizing population over the next decades, governments and societies across the world have two options: build new cities or expand existing cities. When faced with this choice (though there will not always be one), expanding existing cities almost always makes the most sense, for several reasons, two of which I describe below.
The first reason is simple but critical: building cities from scratch is difficult. Very difficult. As the case of King Abdullah Economic City (“KAEC”) illustrates, city building involves numerous different tasks, many of which are interdependent. For example, transportation infrastructure must be built before businesses can operate. And schools must be present before people can move into new residences. These dependencies mean that those building new cities face the daunting task of amassing capital – both financial and human – to simultaneously develop and coordinate multiple types of infrastructure. In contrast, expanding existing cities can be done more piecemeal, first building new housing, then attracting new businesses, then expanding mass transit, and so forth. Continue reading