Economic Transformation in Melbourne under the Adjustment of Global Industrial Pattern: Path and Experience

Abstract

Cross the globe, urban development and associated industrial structure transformation reveal some general patterns. Among these patterns, it is clear that, to adapt to the continuous domestic and global structure transformations, change in economic development path involves the reallocation of society-wide factor resources that is accompanied by socio-spatial transformation. The history of global politico-economic instability and the spread of periodic crises and industrial structure shocks have profound impact on domestic economic and urban development such as in the case of Melbourne. Since the late 1980 s, Melbourne has gone through a radical process which transformed itself from Australia’s largest manufacturing center to one of the global service-based knowledge cities.Although Melbourne’s attempt to transform its manufacturing sector may not fully reach its expected goals, its moving towards a knowledge economy that it has so far achieved can be an invaluable reference for major Chinese cities that are merging into the system of global cities and regions in a complex process of industrial transformation from manufacturing-focused to knowledge-intensive. Among other insights, urban policy in China should focus on the areas such as the preservation of economic resilience capacity through establishment of more diversified industrial structures, the centrality of knowledge and innovation as priority of urban development policies, and the improvement of housing affordability and urban livability to enhance cities’ competitiveness to attract social capital. Meanwhile, the policy should fully embrace the profound impact of industrial structure change on the change of urban and regional socio-spatial structures in the continuing process of social transformation.