In some countries, governments are encouraging industries and businesses to move to regional areas outside the big cities. Do the advantages of this trend outweigh the disadvantages?
The presence of many businesses and factories in large cities has created enormous problems for urban life. Although there may be minor inconveniences, it would be greatly advantageous if governments would encourage the management to shift or start their establishments in less crowded regions.
An obvious benefit of this strategy is that overcrowding of cities can be reduced to a great extent. It is clear, that increasing number of commercial enterprises has attracted a large number of professionals and workers to urban areas, which has resulted in problems like traffic congestion, inefficient waste-management and pollution. For instance, during the morning and evening peak commuting time, the roads in a metropolis like Bangalore in India are jam-packed and it is one the most polluted cities in India. The tax incentives offered by the state government for companies that would establish labour intensive software facilities in the satellite cities like Mysore and Hosur, attracted many companies. This initiative has helped the administration to handle the growing urban problems and distribute the available resources more efficiently in this fast growing city.
On the other hand, operating businesses and industries in regional areas would be challenging for companies, in attracting skilled professionals, servicing clients and dealing with poor infrastructural facilities. This would mean that many highly skilled engineers and business professionals would hesitate to relocate to smaller towns or regional areas, for lack of superior educational facilities and lifestyle opportunities. The inadequacy of efficient logistic and communication systems would also be a serious problem.
In conclusion, considering the enormity of problems faced by huge cities, on account of increasing population growth, moving businesses and factories to rural or less crowded areas would be a logical idea. The drawbacks would be less consequential, and can be handled by effective management strategies and governmental support.