Physical Planning as the Bedrock of Economic Development

Introduction

Physical planning is the foundation on which economic development is laid. It is concerned

with the distribution and utilization of physical space. The goal of physical planning is to
ensure that land use is orderly, coordinated, harmonic, and progressive in order to
promote the residents' health, safety, amenity, convenience, and general welfare, (Yusifov,
2016) while economic planning involves the deliberate allocation of resources by central
governments to influence economic outcomes . Physical planning involves the creation and
implementation of policies, strategies, and programs that ensure the efficient and
sustainable use of resources to enhance the physical environment, meet social needs, and
promote economic growth. The principles of physical planning focus on balancing the
needs of individuals, communities, and the environment. The integration of sustainable
development, prudent management, and protection of nature and cultural heritage is
central to physical planning. Economic development is a highly dynamic process that
involves multiple dimensions and cannot be restricted to a fixed definition, as it involves
too many variables and dimensions. In the context of physical planning, economic
development refers to the process of promoting and improving economic activities in a
particular area, typically a city or region, by designing and implementing physical plans
that facilitate and stimulate economic growth. 

Physical planning plays an important role in economic development by influencing the

shape and density of urban areas, which, in turn, has a direct impact on transportation and
accessibility to services and infrastructure, influencing economic development in many
ways. The relationship between physical planning and economic development is complex
and interdependent. On one hand, physical planning plays a critical role in supporting
economic development by providing the necessary infrastructure, land use planning, and
transportation planning needed to facilitate economic growth and development. Effective
physical planning can promote the efficient use of resources, encourage innovation and
entrepreneurship, and create a conducive environment for investment and business
growth. Economic development also plays a critical role in supporting physical planning by
providing the necessary financial and policy support to implement physical planning
strategies

The importance of physical planning to economic development lies in its ability to create an
environment that is conducive to business and economic growth. Physical planning helps
to translate socio-economic policies into spatial and physical forms, enabling planners to
evaluate the spatial and physical implications of policies, and design environments that
promote economic growth and development. For instance, physical planning can help
identify the most suitable locations for businesses to operate and establish policies to
support the growth of these businesses. Moreover, physical planning can promote the
efficient use of resources, reduce environmental degradation and enhance the well-being of
citizens, which can help to create a more stable and productive economy .

The roles of physical planning in economic development

Promotion of economic growth: Physical planning can contribute to economic growth by

attracting population growth and new businesses to an area. A well-designed physical
environment can create a sense of place and enhance the attractiveness of an area to
potential residents and businesses . Physical planning can also include zoning and land-use
regulations that are designed to attract and retain businesses, industries, and jobs in the
area .

Enhancement of livability and quality of life: A livable community is one that is able to
withstand disruptions and continue to provide its residents with a high quality of life,
regardless of any challenges that may arise. Therefore, a focus on enhancing livability can
also be seen as a component of economic development, as it ensures the long-term viability
of a community. . Physical planning can contribute to the enhancement of livability and
quality of life by creating a built environment that is safe, healthy, and aesthetically
pleasing. A well-planned physical environment can also promote social interaction and a
sense of community, which can contribute to the overall well-being of residents. Physical
planning can include the design of parks, public spaces, and other amenities that are
accessible and attractive to residents, as well as the creation of walkable and bikeable
neighbourhoods that encourage physical activity and reduce dependence on cars . The
more a community is able to provide its residents with the resources and amenities they
need to live well, the more desirable the community becomes to potential investors,
businesses, and workers. Therefore, improving the quality of life in a region is an important
strategy for economic development. Livability, on the other hand, is often used
interchangeably with sustainability and resiliency, and is another important factor in
economic development. 

Development of infrastructure and public facilities: The development of infrastructure

and public facilities has a strong relationship with economic development. Infrastructure
investment has been shown to have a significant impact on economic growth, with a 2020
GI Hub study finding that the economic multiplier for public investment, including
infrastructure, is 1.5 times greater than the initial investment in two to five years, which is
much higher than other forms of public spending. Physical planning can contribute to the
development of infrastructure and public facilities by identifying and prioritizing the needs
for transportation, utilities, and other public services. Additionally, growth makes demands
on infrastructure, so with the increase in income levels, the composition of infrastructure
changes . Hence, the development of infrastructure and public facilities is essential for
economic development.

Preservation of Natural Resources: Physical planning can support economic

development by promoting the preservation of natural resources. By identifying and
protecting natural resources, such as wetlands, forests, and wildlife habitats, physical
planning can help to sustain the natural systems that underpin economic activities, such as
agriculture, forestry, and tourism. Additionally, preserving natural resources can help
mitigate economic development's environmental impacts, which can support long-term
economic sustainability .

Supporting sustainable economic development: Physical planning can support

sustainable economic development by promoting the use of renewable energy, reducing
greenhouse gas emissions, and promoting resource-efficient land use practices. For
example, physical planning can encourage the development of walkable communities that
promote alternative transportation modes such as biking or public transit. It can also
promote the development of green infrastructure, such as parks and green spaces, that can
help mitigate the impacts of climate change and provide numerous other benefits to
communities.

Encouraging innovation and creativity: Physical planning can create environments that
foster innovation and creativity, such as mixed-use districts that combine residential,
commercial, and light industrial uses. This type of planning can lead to the development of
new ideas and products, as well as the creation of new businesses and jobs.

Facilitating eco-friendly transportation: Physical planning can facilitate eco-friendly

transportation by designing communities that are walkable, bikeable, and transit-friendly.
By doing so, physical planning can help reduce traffic congestion and improve access to
jobs, services, amenities, and contribute to economic development. Regions that possess
greater mobility are often those with better opportunities to develop than those with
scarce mobility, and reduced mobility can impede development, while greater mobility can
serve as a catalyst for development. Overall, transportation, and mobility are important
factors in promoting economic development.

Improved Public Health and provision of green spaces: Health is said to be wealth, as
one needs to be healthy in order to participate in economic activities. One way in which
physical planning can contribute to economic development is by creating attractive and
livable urban environments that can attract businesses and investors. By improving the
aesthetics, functionality, and sustainability of cities, physical planning can enhance the
quality of life of residents, and make urban areas more attractive to businesses, tourists,
and other stakeholders. This, in turn, can create jobs, increase property values, and
stimulate economic growth. In addition, physical planning can also help to reduce the
negative health impacts of environmental hazards, such as pollution, noise, and heat stress.
By creating green spaces, reducing the use of fossil fuels, and limiting exposure to harmful
chemicals, planners can mitigate the risks of environmental health hazards and create
healthier and more sustainable urban environments.
Promoting Social Equity: Physical planning can promote social equity by ensuring that all
community members have access to public facilities and services, regardless of their
income or social status. Physical planning can also help reduce disparities in access to
transportation, housing, and jobs. Physical planning can promote economic development
by facilitating the creation of vibrant and inclusive public spaces. For example, well-
designed public spaces, such as plazas, parks, and sidewalks, can encourage social
interaction, increase foot traffic, and support local businesses. Furthermore, physical
planning can encourage mixed-use development, which combines residential and
commercial activities in one area. This type of development can create more walkable
neighbourhoods, reduce commuting times, and provide more opportunities for residents to
access jobs and services. Also, physical planning can also foster social equity by ensuring
that low-income and marginalized communities are not disproportionately affected by
negative externalities such as pollution or hazardous facilities. 

Enhancing Community Resilience: Physical planning can enhance community resilience

by designing communities that are more resilient to natural disasters, climate change, and
other hazards. For example, physical planning can encourage the development of green
infrastructure, such as bioswales and rain gardens, which can help mitigate the impacts of
flooding and stormwater runoff. Physical planning can also help ensure that critical
facilities, such as hospitals and emergency shelters, are located in areas that are less
vulnerable to natural hazards.

Physical Planning Strategies for Economic Development

Land Use Planning as a strategy for economic development

Land-use planning which is under a physical plan is an effective strategy for economic
development. Land-use planning involves the allocation of land to different uses across a
land area in a way that balances economic, social and environmental/physical/locational
values. Land, as we know is the carrier of economic activities, and land resources are an
indispensable production factor of economic development. The input of land resources
plays an important role in promoting economic growth. All economic activities are done on
land which makes it an indispensable factor of production. The purpose of land use
planning, therefore, is to identify, in a given landscape, the combination of land uses that is
best able to meet the needs of stakeholders while safeguarding resources for the future. On
the one hand, economic activities have profoundly changed the surface morphology of the
Earth. Moreover, with economic development and population increase, land use changes
have accelerated sharply. On the other hand, the variation process of land use and land
cover has significant impacts on the economy.

Transportation planning as a strategy for economic development

Transportation planning is the process of defining future policies, goals, investments, and
spatial planning design to prepare for future needs to move people and goods to
destinations (Wikipedia).  One of the ways by which transport planning and transportation
infrastructure foster economic development is through its ability to foster agglomerations,
that is, clusters of firms in related industries. Especially within urban areas, transportation
infrastructure represents a shared input that can be used by large numbers of firms in their
respective production process. This same infrastructure may increase access to skilled
labor, thus increasing the returns to firms in a given location. (Theory of planning, in and
for).

Because of its intensive use of infrastructures, the transport sector is an important

component of the economy and a common tool used for development. This is even more so
in a global economy where economic opportunities have been increasingly related to the
mobility of people and freight, including information and communication technologies. A
relation between the quantity and quality of transport infrastructure and the level of
economic development is apparent. High-density transport infrastructure and highly
connected networks are commonly associated with high levels of development. When
transport systems are efficient, they provide economic and social opportunities and
benefits that result in positive multiplier effects such as better accessibility to markets,
employment, and additional investments. When transport systems are deficient in terms of
capacity or reliability, they can have an economic cost, such as reduced or missed
opportunities and lower quality of life. The economic importance of transportation
planning can thus be assessed from a macroeconomic and microeconomic perspective:

At the macroeconomic level (the importance of transportation for a whole economy),

transportation and related mobility are linked to a level of output, employment, and
income within a national economy. In many developed economies, transportation accounts
for between 6% and 12% of the GDP. Further, logistics costs can account for between 6%
and 25% of the GDP. The value of all transportation assets, including infrastructures and
vehicles, can easily account for half the GDP of an advanced economy.

At the microeconomic level (the importance of transportation for specific parts of the
economy), transportation is linked to producer, consumer, and distribution costs. The
importance of specific transport activities and infrastructure can thus be assessed for each
sector of the economy. Usually, higher income levels are associated with a greater share of
transportation in consumption expenses. On average, transportation accounts for between
10% and 15% of household expenditures. In comparison, it accounts for around 4% of the
costs of each unit of output in manufacturing, but this figure varies greatly according to
sub-sectors.

Urban Planning and Design as a strategy for economic development

The aim of economic development is to improve the well-being of people and places
through a focus on direct and indirect creation of jobs and wealth, and making goods and
services available, by increasing the number, productivity and output of firms. It shapes the
arrangement, appearance and function of places through the creation of spatial plans,
guidelines and regulations for land uses; recommended land use mixes and patterns;
development and design standards for buildings, open spaces and the public realm; zoning
and building codes; and infrastructure requirements and placement. These goals are
pursued through analysis, strategy and initiative development related to diverse but
interrelated drivers of economic productivity and growth, including particularly: the
presence, strength and growth potential of industry clusters; development and deployment
of human capital; the innovation and entrepreneurship ecosystem; the concentration,
connectivity and physical relationship among economic assets and activities (urban growth
form); and the public, private and civic institutional environment. Urban planning and
design are primarily to shape the physical environment of cities and regions for the
improvement of human and environmental health, business and job growth, and access to
transportation, public space and facilities, education and lifestyle amenities. The intention
of these improvements is to have positive impacts on quality of life, attractiveness,
operational efficiency (e.g., congestion), resiliency and long-term sustainability. Some
economic importance of urban planning and Design includes the following:

 Better quality urban design generally creates confidence in an area, thereby

attracting investments and further development.
 Better urban design often lowers long-term expenditure on urban services.
 High-quality urban design assists with place-marketing strategies that seek to
attract talented workers and firms that employ them to a particular place hence
improving the economy.

As we see, Urban planning and design is an effective tool for economic development. Take,
for example, the Lekki free trade zone, which is forecasted to create 80,000 jobs by the time
of completion, not to mention other economic importance it also helps bring to the
community.

National Development Planning as a strategy for economic planning

National development planning is a key strategy for economic development in Nigeria. The
country has a long history of economic challenges, including poverty, high unemployment,
and low economic growth. However, the Nigerian government has recognized the
importance of national development planning in addressing these challenges and has
developed various plans over the years to guide economic development. The Nigerian
government has implemented a series of five-year development plans aimed at fostering
economic growth, enhancing infrastructure development, and promoting social welfare.
These plans provide a framework for physical planning strategies that support the
achievement of the development objectives set forth in each plan .
The Nigerian government has employed a rolling plan strategy for development planning
since 1990. This strategy involves the continuous updating of development plans every five
years, which allows for greater flexibility and responsiveness to changing economic and
social conditions. Physical planning strategies, such as the development of industrial parks,
promotion of private sector investment, and provision of basic infrastructure, have been
incorporated into the current development plans to foster economic growth and
development in Nigeria.

Another important national development plan in Nigeria is the Economic Recovery and
Growth Plan (ERGP). The ERGP is a medium-term plan that was launched in 2017 with the
aim of stimulating economic growth, diversifying the economy, and improving the business
environment. The plan focuses on five key areas: macroeconomic stability, economic
growth and diversification, competitiveness, social inclusion, and governance.

In addition to these plans, the Nigerian government has also established various
institutions to support national development planning. For example, the National Planning
Commission is responsible for developing national development plans, while the National
Bureau of Statistics collects and analyzes data to inform policy and planning.

Physical planning is a critical component of national development planning in Nigeria.

Physical planning strategies, such as the development of infrastructure and public facilities,
enhance the country's economic development by improving transportation systems,
providing access to basic services, and promoting economic activities in rural and urban
areas .

Environmental Planning as a planning strategy for economic planning

Environmental planning can be an effective physical planning strategy for economic

planning as it promotes sustainability, reduces negative impacts on the environment, and
ensures efficient use of resources. Environmental planning involves identifying and
assessing the environmental aspects of a project or program and establishing goals to
minimize or mitigate any negative impacts on the environment .
One of the key goals of environmental planning is to promote sustainability by ensuring
that economic development is achieved in an environmentally responsible way. This
involves considering the impact of development on air and water quality, ecosystems, and
natural resources . Environmental planning can also help identify and mitigate potential
risks to public health, such as exposure to pollution or hazardous materials.

Environmental planning can also help identify opportunities for economic growth. For
example, the development of green infrastructure and renewable energy sources can create
jobs and stimulate economic development, while also reducing greenhouse gas emissions
and promoting energy independence . Another important aspect of environmental planning
is conducting an environmental impact analysis (EIA) or PESTLE analysis, which involves
assessing external factors that may impact the success of a project or program. This
analysis can help identify potential risks and opportunities for economic growth and
inform decision-making . Environmental planning can be a valuable physical planning
strategy for economic planning in Nigeria as it promotes sustainability, identifies
opportunities for economic growth, and helps mitigate potential risks to public health and
the environment.

Disaster Management as a strategy for economic development

Disaster management is an essential physical planning strategy for economic development.

Disasters can have devastating effects on communities, leading to loss of life, displacement
of people, and significant damage to property and infrastructure. Planning for disasters and
managing their aftermath can help mitigate their impact, reducing the impact on economic
development. Effective disaster management strategies involve proper planning,
preparedness, response, and recovery. This includes identifying potential risks and
vulnerabilities, developing emergency response plans, creating contingency plans,
establishing early warning systems, and conducting regular training and exercises for
emergency responders. In the aftermath of a disaster, the focus is on immediate relief
efforts, such as search and rescue, providing food, water, shelter, and medical care to those
affected. However, as the recovery phase begins, it is essential to prioritize the restoration
of essential infrastructure, such as water and power systems, transportation networks, and
communication systems, to enable communities to rebuild and resume their economic
activities.

A well-designed disaster management strategy can help minimize the impact of disasters
on economic development. For example, if a city is well-prepared for a hurricane, with an
effective evacuation plan, early warning system, and infrastructure that can withstand the
storm, the economic impact may be less severe. Similarly, if businesses have contingency
plans for natural disasters, they may be better equipped to continue operations,
minimizing the impact on local employment and the supply chain. In addition to the
physical infrastructure, disaster management strategies can also address social and
economic issues that arise from disasters. For example, providing social services, such as
mental health support and financial assistance to affected communities, can help them
recover and return to their daily lives more quickly.

Challenges of Integrating Physical Planning and Economic Planning

Changing economic conditions

Economic conditions can change quickly and unpredictably, making it difficult to develop
physical planning strategies that are adaptable and flexible enough to respond to changing
economic circumstances. For instance, economic recessions or booms can have significant
impacts on the implementation of physical planning strategies.

Technical Expertise

Physical planning and economic planning require different types of expertise. Economic
planning typically involves economic modelling, forecasting, and analysis, while physical
planning requires expertise in urban design, engineering, and infrastructure development.
Limited technical expertise in either area can limit the effectiveness of integrated planning
efforts.

Institutional Barriers and Lack of Coordination

Institutional barriers can also pose challenges to integrating physical planning and
economic planning. For instance, complex bureaucratic procedures and regulations can
limit the ability of planners to effectively implement physical planning strategies.
Institutional barriers can also limit the ability of planners to effectively coordinate and
collaborate across different departments or agencies. Physical planning and economic
planning are often managed by different departments or agencies within a government.
This can create coordination challenges, where one department may not be aware of the
activities or plans of another department. This lack of coordination can result in
duplication of effort or contradictory policies.

Data Availability

Integration of physical planning and economic planning also relies on the availability of
accurate and up-to-date data. Data collection and management can be challenging,
particularly in developing countries, where data may be incomplete or unreliable. Limited
access to data can limit the ability of planners to develop effective strategies for integrating
physical and economic planning.

Limited Financial Resources

One of the main challenges in integrating physical planning and economic planning is the
limited availability of financial resources. Physical planning requires significant investment
in infrastructure and public facilities, such as roads, transportation networks, and public
services, which may be difficult to finance, especially in developing countries. The cost of
implementing physical planning strategies can be quite high, and may exceed the available
resources of local or regional governments.

Competing Interests and Stakeholders: 

Integrating physical planning and economic planning also faces the challenge of balancing
competing interests and stakeholders. Physical planning strategies must take into account
the needs of various stakeholders, including local businesses, residents, and environmental
groups. Disputes can arise when the interests of different stakeholders conflict. For
instance, economic development may be at odds with environmental preservation, making
it difficult to implement physical planning strategies that can achieve both objectives.

Political Will and Public Participation: Another challenge in integrating physical

planning and economic planning is the need for political will and public participation.
Physical planning often requires choices to be made that can affect the interests of various
stakeholders, including businesses, the populace and environmental groups. For physical
planning strategies to be successfully integrated into economic planning, it is essential that
there is support from the political leadership and the community. Without political support
and public participation, physical planning may not be adequately implemented, and
economic planning may not achieve its objectives.

CONCLUSION

Physical planning is a crucial component in unlocking the potential for improved physical
security and economic development, with the role of translating socio-economic policies
into spatial and physical forms as well as emphasizing environmental quality being
important in physical planning. It is also noted that physical planning plays a significant
role in economic planning by providing the necessary foundation for the development of
infrastructure and other key facilities which are important for the growth of businesses
and other economic activities 

The need to organize space in accordance with modern standards in order to achieve
effective performance and socio-economic activities for the populace is critical, even if it is
difficult to develop a physical development plan for the entire country due to differences in
each state of the federation. Regardless, the national physical development plan should be a
tool for Nigeria's long-term success. It is necessary to sustain the types and patterns of
development. Additionally, the importance of urban planning and design as well as other
highlighted strategies are crucial tools for economic planning,  
Any thriving region or nation's backbone and sustainability is economic growth and
development. Nigeria, despite having a plethora of National Development Plan policies
dating back to its inception, continues to struggle to implement long-term policy plans that
will guide overall national growth and improve the Gross Per Capita of its citizens, and thus
strives to achieve balance among its various agglomerating sectors.

Reference

Ben Davis (2021). What is development planning definition? Retrieved on 10/10/2021

https://www.mvorganizing.org/what-is-development-planning-definition/

Lesley Barke (2019). Definition of Development Planning. Retrieved on 10/10/2021 from

https://careertrend.com/about-5095844-definition-development-planning.html

Outline

I. Introduction

Definition of Physical Planning and Economic Development

Importance of Physical Planning in Economic Planning

II. The Role of Physical Planning in Economic Development

Promotion of Economic Growth

Enhancement of Livability and Quality of Life

Development of Infrastructure and Public Facilities

III. Physical Planning Strategies for Economic Development

National Development Planning 

Land Use Planning

Transportation Planning

Urban Design and Development

Environmental Planning

Disaster Management Planning

IV. Challenges of Integrating Physical Planning and Economic Planning

Limited Financial Resources

Competing Interests and Stakeholders

Political Will and Public Participation

V. Conclusion

Urban planning, a related concept, focuses specifically on the design and regulation of
urban environments, taking into account the physical, economic, and social factors that
influence the use and development of urban space . Urban planning is thus an important
subfield of physical planning, which is concerned with the planning and management of
physical space more broadly.

Reference 2

1. Hackett, J. , Nove, . Alexander , Krueger, . Anne O. and Myint, . Hla (2023, January 19).
economic planning. Encyclopedia Britannica.
https://www.britannica.com/topic/economic-planning

2. Effective Physical Security (Fifth Edition). (2017). Physical Planning. In

ScienceDirect. Elsevier.

https://www.sciencedirect.com/topics/economics-econometrics-and-finance/physical-
planning
3. Y. Hossain, S. T. Chowdhury, and M. I. K. Chowdhury, "The Role and Importance of
Physical Planning," International Journal of Business and Social Science, vol. 2, no. 22, pp.
189-199, Nov. 2011.

4. Local Governments’ Economic Development Role: Placemaking and Regions. (n.d.).

Retrieved from
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5. Planning for Economic Development. (2021, January 21). Retrieved from

https://mrsc.org/explore-topics/economic-development/economic-development-basics/
planning-for-economic-development

INTRODUCTION.

The term economic development simply means a process by which nations transform or
improve their economies, either from the simple low income economies to the middle
modern industrial economies. Various sectors or industries such as agriculture, mining,
and many more are responsible for the economic development of a nation.  We should note,
while some countries depend fully on one sector of the economy, others operate on what is
referred to as a ‘diversified economy’.

There is no talking about physical planning without knowing what Planning is. Generally,
Planning is a process by which a proposed method is arrived at. However, for the purpose
of our paper, planning cannot be regarded as planning unless it includes both economic and
physical considerations, integrating investment in and structures with the economic and
social goals in view.

Therefore, Physical planning is concerned with the general pattern of land-use, the
character and location of public buildings and structures, the design of streets, the location
and development of transit and transportation system, and all other physical facilities
which are necessary or desirable to promote the economic betterment, comfort,
convenience, and the general welfare. (Webster 1958, p. 137). The goal of a physical
development plan is to ensure that land use is orderly, coordinated, harmonic, and
progressive in order to promote the residents' health, safety, amenity, convenience, and
general welfare. The plan, on the other hand, divides the land into sections for residential,
commercial, industrial, and other uses. It also determines the type and density of
development in a certain area, as well as the area's natural beauty's conservation and
preservation.

Economic planning on the other hand is a decision making by which the distribution of
resources is determined.

These two are basis for economic development in a nation, but for the purpose of our
paper. The study is only focused on physical planning as the foundation of economic
development. Our paper is divided into three sections; firstly we talked about the roles of
physical planning in economic development. Secondly, we looked at physical planning
strategies for economic development and lastly, we talked about challenges.