The Economy of Cities

This book is almost as good as Jacobs' must-read classic, The Death and Life of Great American Cities. Whereas Death and Life deals more with how to foster vitality in individual city neighborhoods, this work deals with the broad importance of thriving urban areas. Here Jacobs gives the reader an understanding of how economically healthy and diverse urban areas are essential to creating healthy economies in general - and more than that, to ultimately creating a healthy global economy. Her ideas fly in the face of much conventional wisdom. But I think she proves the essence of her case with pages of compelling, reasoned argument. Most reformers, many of whom start out with earnest good intentions, end up wreaking havoc and plunging their countries into tyranny because they attack their countries' economic problems from the wrong end. Most reformers in recent history, from Pancho Villa, through Stalin and Mao, down to current day missionaries - set out to "help" struggling economies by first digging into the dirt of the poorest rural areas. They assume that change must start in the agricultural sector. So they reapportion land; they attempt to introduce modern technology to subsistence farmers; they establish schools, clinics, and communal wells in the rural areas. But often, these efforts come to naught. Indeed they frequently backfire and leave area residents worse off than before. A typical scenario of the type Jacobs cites - a volunteer worker sets up a well in a parched rural area of some Third World country. But soon after the volunteer leaves, a valve in the well breaks. And there is no way for local residents to get a replacement valve. There is no nearby urban industry to supply valves or any other replacement parts for anything. So the well stagnates, becomes a breeding ground for mosquitoes and a hazard. Jacobs illustrates why these good will projects so often fail. There is no surrounding urban industry to back them up, to supply all the quirky, often small but oh-so-necessary parts to rural endeavor. Urban areas are also necessary as markets for rural produce. Without recourse to diverse urban economies, virtually all rural areas will fail to thrive in the long run, no matter how much charitable reform is pumped into them. Jacobs goes further. She illustrates how the very idea of agriculture, as well as most advances in agricultural technique likely STARTED in denser urban areas. This is the most controversial, frequently contested idea in her book. Most people are geared to dismiss urban areas as being devoid of "nature. But the reverse is actually true. There is often more flora, more planting activity, more wildlife and domestic animal husbandry, more agricultural cross-fertilization of all kinds going on in cities than in rural areas. But because the city is by definition "urban," people don't see it and continue to feel they must escape to rural areas in order to experience nature. However, even if you are of this frame of

I loved this book for two reasons. First, for the insight into the complex interplay of economic forces in cities really opens your eyes to how governmental policies affecting cities directly impact our standard of living. Secondly it shows how the beginning of agrictulture may have come about almost by accident, simply by the combination of people's behaviour and the actions of (un)natural selection. It is a surprisingly short read, when you consider the concepts presented.

This book, written in the 1960's, couldn't be more relevant today, in our age of outsourcing and loss of jobs. In Jacob's thesis, cities must constantly evolve, developing new products, or they will stagnate and decline, as their old exports wither. She makes a good case that efficiency, as reflected in the large scale, focused enterprise, can often be the enemy of innovation. This kind of logic has been incorporated into mainstream thought, in that many large corporations try to foster growth by establishing small entrepreneurial units. Jacobs provides a historical basis for this paradigm, as well as the detailed economics which shows it is not simply a matter of encouraging people to be entrepreneurial. Even more interesting to me, was Jacob's well supported argument that the earliest cities preceded and fostered the development of agriculture, not the other way around. I have read Robin Wright's Non-zero, The Logic of Human Destiny and Jared Diamond's Guns, Germs and Steel, both great books, yet Jacob's thesis was still new to me. The Economy of Cities has a certain amount of unnecessary repetition, but not as much as Jacob's The Death and Life of Great American Cities, which I would also highly recommend despite that problem. Also, and this is not a major point, Jacobs recognizes that exports may contain inputs which have to be imported, but does not seem to see that import substitution may also rely on increasing the import of certain inputs - thereby overemphasizing the importance of import substitution relative to development of new exports (although if we could find a substitute for oil......). Despite having a mathematics and economics background, I did not find Jacob's D,N,A equation particularly enlightening, and advise the reader not to get hung up on it. Jacob's use of history as a series of case studies, and her ability to extract the proper lessons even when they defy conventional thinking, is far more important than any mathematical tools.

The title of this book is slightly misleading, because the thesis of the book is that cities play an essential role in the process of economic development. Although its anecdotal style gives this book a disarmingly unsystematic appearance, this is a profound book. It is easily one of the most important books written during the 20th century. Economic development is something about which conventional marginal utility economics has very little to say. The Economy of Cities, therefore, fills a kind of void. It stands to conventional economics in much the same position as quantum physics stands to classical physics.A simply wonderful book.Lancelot Fletcher [email protected]

This volume is a perfect sequel to Jacobs' first and most famous book, The Death and Life of Great American Cities. While that volume explores the characteristics of vital urban areas, The Economy of Cities describes the economic mechanisms that fuel urban prosperity. It is a shame, though, that so few policy leaders heed Jacobs' analysis. If they did, society would have fewer half-witted economic development scemes like athletic stadiums and more intitatives that foster human innovation.