SPRINGER BRIEFS IN REGIONAL SCIENCE Du Huynh Making Megacities in Asia Comparing National Economic Development Trajectories 123 SpringerBriefs in Regional Science Series Editors Henk Folmer, University of Groningen, Groningen, The Netherlands Mark Partridge, Ohio State University, Columbus, USA Daniel P. McMillen, University of Illinois, Urbana, USA Andrés Rodríguez-Pose, London School of Economics, London, UK Henry W.C. Yeung, National University of Singapore, Singapore, Singapore SpringerBriefs present concise summaries of cutting-edge research and practical applicationsacrossawidespectrumoffields.Featuringcompact,authoredvolumes of50to125pages,theseriescoversarangeofcontentfromprofessionaltoacademic. SpringerBriefs in Regional Science showcase emerging theory, empirical research and practical application, lecture notes and reviews in spatial and regional science fromaglobalauthorcommunity. More information about this series at http://www.springer.com/series/10096 Du Huynh Making Megacities in Asia Comparing National Economic Development Trajectories 123 DuHuynh Fulbright University Vietnam HoChiMinh, Vietnam ISSN 2192-0427 ISSN 2192-0435 (electronic) SpringerBriefs inRegional Science ISBN978-981-15-0659-8 ISBN978-981-15-0660-4 (eBook) https://doi.org/10.1007/978-981-15-0660-4 ©TheAuthor(s),underexclusivelicencetoSpringerNatureSingaporePteLtd.2020 Thisworkissubjecttocopyright.AllrightsaresolelyandexclusivelylicensedbythePublisher,whether thewholeorpartofthematerialisconcerned,specificallytherightsoftranslation,reprinting,reuseof illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmissionorinformationstorageandretrieval,electronicadaptation,computersoftware,orbysimilar ordissimilarmethodologynowknownorhereafterdeveloped. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexemptfrom therelevantprotectivelawsandregulationsandthereforefreeforgeneraluse. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained hereinorforanyerrorsoromissionsthatmayhavebeenmade.Thepublisherremainsneutralwithregard tojurisdictionalclaimsinpublishedmapsandinstitutionalaffiliations. ThisSpringerimprintispublishedbytheregisteredcompanySpringerNatureSingaporePteLtd. The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721, Singapore To Tony and Binh Acknowledgements I could not have attained this level of graduate education and produced the first bookwithoutthehelpandsupportofmanypeople.IamparticularlygratefultoJosé Gómez-Ibáñezwhohasnotonlybeenmyprimaryadvisor,butalsomyencouraging mentor for years. He has helped me in every aspect since Spring 2008 when he cametoVietnam.Wheneverwemeet,Icomeawayhavinggainednewsubstanceto sharpen my reasoning. He has taught me how central the functioning of the transportation system is to the functioning of economies, an elegant and essential piece of knowledge forming the basis of my work with him. Moreover, the first draft of this book was written during my time at the Taubman Center, Harvard Kennedy School of Government, in 2016–2017 under his mentorship. He read many drafts and gave me a lot of valuable comments. Alan Altshuler has been anothermentorfromwhomIhavelearnedagreatdeal,includinghowtoembarkon theunknowntomakediscoveries.Understandinglocalpoliticsisanimportantissue that from him I have realized the significance, especially the public entrepreneur- shiptheory.DavidDapice wasthe firstforeigner Istudied withandwho mentored me for nearly two decades. He inspired me to pursue an academic career not only by his insightful knowledge, but also by his tireless research and benevolent rec- ommendations for Vietnam with pure integrity gained during 30-year experience. He read many drafts of this book and gave me valuable comments. I am fortunate to also have Richard Peiser and Annette Kim as advisors for my doctorate degree. I owe Richard Peiser knowledge on real estates and locations. I also received valuable comments from him and other people when presenting draftsofthisbookduringatripwithhimfromHoChiMinhCitytoHanoi,Manila, andJakartainApril2018.Ilearnedapproachestoanalyzeurbanissuesoftransition economiesfromAnnetteKim.JayRosengardhelpedmegainknowledgeofpublic finance more deeply throughdoingreal research and teaching with him, especially regarding the study on public finance in HCMC, Shanghai, and Jakarta. I owe knowledgefrom EricS.Belsky, PaulCote,AkashDeep,SusanFainstein, Michael Hooper, Nguyen Minh Kieu, Peter Rowe, Chau Van Thanh, Dang Van Thanh, William Wheaton, and many others. vii viii Acknowledgements As both a student and a faculty member, I am indebted to my teachers and colleagues at Fulbright. Thomas Valley helped me realize my dream to study at Harvard. Dwight Perkins has always given me helpful advice. I am particularly graceful to Nguyen Xuan Thanh and Vu Thanh Tu Anh. These two faculty members,alsoofmygeneration,havealwayshelpedmeunconditionallyintherole ofclosefriends,colleagues,andteachers.JonathanPincusandBenWilkinsonalso helped me a lot. All my teachers and colleagues at Fulbright are indeed wonderful and have always supported me impartially. On administrative and logistic issues, I have received enormous support from many people: Vo Thanh Binh, Barbara Elfman, Truong Minh Hoa, Linda Miklosko-Davis,NguyenHoangMinhNgoc,TranThanhPhong,TranThanhThai, Hoang Van Thang, Tran Ngoc Tran, Do Thi Thanh Trieu, Ms. Danh, Ms. Luyen, Mr.Minh,Mr.Cao,Mr.Phuong,Mr.Tuan,Mr.Tung,friendsattheAssociationof Vietnamese Students and Professionals in the USA, and many others. Family is always the deepest part of anyone’s heart. Our parents have rarely taughtusdirectlybutnotbecausetheyweretoobusyworkingtosupporttheirseven children in the most difficult period in contemporary Vietnam; real action is much more valuable than lecturing. Freedom of thought is the most precious value that ourparentsinstilledinusaschildren.Icannotrecallanythingthatmyparentshave forced me to do in choosing my course of study and career path. My siblings and relatives are fantastic supporters. They always share everything with me. My youngest brother has helped me so much in finding data and other related issues. Finally,yetcertainlyneverleast,Iamheavilyindebtedtomyownsmallfamily, my wife, Bui Thi Thuy Binh and my daughters Huynh Binh Minh, Huynh Cally andHuynhLinafortheirlovingpatiencewhenleftalonesomany daysandnights while I needed to focus on my research and writing. Their sacrifice for our family can never be fully made up but is forever in my heart. About This Book ThisbookanalyzesandcomparesthedevelopmentpathsoffivemajorcitiesinEast and Southeast Asia since the early 1960s, including Ho Chi Minh City, Jakarta, Manila, Seoul, and Shanghai. In examining these five cases through a carefully crafted conceptual framework, the author excavates an understanding of the dynamics that have enabled Seoul and Shanghai to become highly competitive as major engines of economic growth, while simultaneously accounting for why the other three cities have faced numerous problems in terms of meeting their devel- opment goals. Presenting both quantitative and qualitative data to trace the course of changes between 1960 and 2015, the case studies curate six possible explana- tions for the different cities’ developmental trajectories. The book considers the nationaldevelopmentstrategymatterstothedevelopmentofcitiesandpositionsthe share of budget revenue retained for cities’ expenditure as critical. The author demonstrates that consistently pursuing long-term strategies is important, and that public entrepreneurship with powerful supporting coalitions is vital. The book illustrateshow masterplans haveplayed limitedroles inthebuilding of cities, and that fragmented governments are often at the root of the problems facing a city’s development. This book will be highly relevant to researchers in international and Asian urban development. ix Contents 1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.1 Divergent Paths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.2 Possible Explanations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 1.3 Research Objectives and Limitations . . . . . . . . . . . . . . . . . . . . . . 10 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 2 Seoul. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 2.1 A Snapshot of Seoul. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 2.2 The Development of Seoul Since 1960 . . . . . . . . . . . . . . . . . . . . 14 2.2.1 Building New Seoul with Mayor Kim Hyun-ok. . . . . . . . . 15 2.2.2 Chasing the Olympics . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 2.2.3 Seoul’s Darkest Time. . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 2.2.4 Revitalizing Seoul with Mayor Lee Myung-bak. . . . . . . . . 18 2.2.5 The Emergence of Civil Society in the Last Decade . . . . . 19 2.3 Changes in Seoul . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 2.3.1 Demographic and Employment Shift. . . . . . . . . . . . . . . . . 19 2.3.2 Economic Development . . . . . . . . . . . . . . . . . . . . . . . . . . 20 2.3.3 Urban Infrastructure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 2.4 Factors Determining the Development of Seoul . . . . . . . . . . . . . . 21 2.4.1 The National Development Strategy . . . . . . . . . . . . . . . . . 21 2.4.2 Fiscal Decentralization and the City’s Budget Share . . . . . 23 2.4.3 Government Structure and Governance in Seoul . . . . . . . . 24 2.4.4 Urban Planning and Its Roles in Seoul . . . . . . . . . . . . . . . 25 2.4.5 The Vision and Determination of the Municipal Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 2.4.6 Public Entrepreneurship and Public Choice in Seoul . . . . . 26 2.5 Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 xi