Economic and social effects of urbanization-case study analysis

Abstract

The study focuses on the effects of uncontrolled urbanization and local investment planning on local economy and society. The first part covers literature review regarding economic and social effects of uncontrolled urbanization. The second part includes description of the investor and its financial situation. Afterwards, the property under development is described and three development plans are presented. Finally, the effectiveness evaluation is performed. The research is closed with summary and conclusions. Basic research methods include literature review, methods of comparison, logical concluding, and case study. Tools of financial and economic analysis have been used. Based on cost-benefit analysis (CBA), economic internal rate of return (ERR), economic net present value (ENPV) and benefits to costs ratio (B/C) were calculated. The assumptions for three options of development program meet conditions in terms of master planning but vary in terms of project effectiveness. Studying different solutions can help better management and anticipate results of different development programs for the local economy and society. Since the proposed framework supports investment evaluation from the perspective of society, it supports local municipal decision makers. The model may be also an example of how to evaluate economic and social results of local planning and may be used as a tool for effectiveness maximization.