Tag Archives: Urbanization

Our Changing Lifestyle

London

Many of you will have come across the various forms of the “Did You Know?” or “Shift Happens” slide shows over the past decade or so – there are several versions on YouTube, of course.

Regardless of how accurate you believe the figures presented to be, the facts of the matter are that the nature of work is changing more fundamentally than many people yet believe – and is doing so more quickly than any major change that has gone before.

Urbanisation really came into its own with the Industrial Revolution: although towns/cities had existed almost from the dawn of civilisation, it took the centralising of manufacture to drive the majority of the workforce into conveniently situated accommodation near to their work.

Now, though, two major factors are driving the next big change in the way we live:

  • The increase of service industries – in the US and the UK, this already accounts for around 77% of GDP, v 22% for “traditional industry,” and even in China service industries are fast approaching parity with “traditional industry” in GDP terms (44% v 46%).  Such “knowledge” work is far less location-dependant than manufacturing lines and their like.
  •  The increase in digital communication technologies and speeds which free us up from location dependence even more, as we can talk, meet (over video links), email, and so on from virtually anywhere, any time.

These factors are, of course, spawning ever-more smaller businesses focused on different niche market areas. Big business in many service areas is inefficient as management overheads lead to cost issues when compared with smaller businesses, which are also generally more nimble and able to adapt more rapidly to changing market conditions.

While the higher cost of property in cities was offset by the lower commuting costs which kept the populations of the cities growing, as people need to commute less to central locations so the need to live in a city diminishes and people become freer to choose where to live. Couple this with the issues over living conditions in crowded cities (the recent riots in UK cities underscore some of this) and a somewhat more rural residential lifestyle becomes attractive – less expensive, less crowded, quieter and less potentially dangerous.

The impact this could have on cities is enormous – property prices would drop as supply of properties exceeds demand and infrastructure investment would move elsewhere, following the people. Conversely, large-scale migration to more rural areas will create its own set of problems – residents objecting to large-scale growth (although the shop-owners won’t mind the influx of customers too much), crowded roads and creaking infrastructure which will have to be upgraded to handle the increased loads, and so on. District councils will start to compete with each other to offer the best combination of space (there’s no point moving from one crowded area to another), infrastructure, affordability and general lifestyle.

As location independence grows, the same, of course, should then start to happen at a country level. Some countries – Malaysia, for example – are busy today trying to attract retirees on the basis of lifestyle and costs, and so boost their economies through a relatively high-spending population. Can we expect to see a scenario in the next 10 years where countries compete to attract people on the basis of infrastructure, cost of living and general lifestyle, regardless of where the companies themselves are located?

What would this do for country citizenship, for taxation bases, social security networks and the like? Have you thought about where you would, or wouldn’t, like to live if you were able to be truly location-independent? How does your current country measure up?

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