*Edited by Vito Bobek*

Debates about the future of urban development in many countries have been increasingly influenced by discussions of smart cities. Despite numerous examples of this 'urban labelling' phenomenon, we know surprisingly little about so-called smart cities. This book provides a preliminary critical discussion of some of the more important aspects of smart cities. Its primary focus is on the experience of some designated smart cities, with a view to problematizing a range of elements that supposedly characterize this new urban form. It also questions some of the underlying assumptions and contradictions hidden within the concept.

ISBN 978-1-78985-041-3

Smart Urban Development

Published in London, UK © 2020 IntechOpen © Rost-9D / iStock

## Smart Urban Development

*Edited by Vito Bobek*

## Smart Urban Development *Edited by Vito Bobek*

Published in London, United Kingdom

### *Supporting open minds since 2005*

Smart Urban Development http://dx.doi.org/10.5772/intechopen.77428 Edited by Vito Bobek

#### Contributors

Uk Kim, Mi-Sun Park, Seunghee Lee, Akbar Heydari Tashekaboud, Mohammad Rahim Rahnama, Shadieh Heydari, Raseswari Pradhan, Taşkın Dirsehan, Hossny Azizalrahman, Valid Hasyimi, Vito Bobek, Tatjana Horvat, Nataša Gaber Sivka, Eda Ustaoglu, Brendan Williams, Irene Govender, Stephen Akandwanaho, Ronald Wennersten, Yunzhu Ji, Marija Bezbradica, Heather Ruskin, Konstantinos Vogiatzis, Nicolas Remy

#### © The Editor(s) and the Author(s) 2020

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First published in London, United Kingdom, 2020 by IntechOpen IntechOpen is the global imprint of INTECHOPEN LIMITED, registered in England and Wales, registration number: 11086078, 7th floor, 10 Lower Thames Street, London, EC3R 6AF, United Kingdom Printed in Croatia

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Smart Urban Development Edited by Vito Bobek p. cm. Print ISBN 978-1-78985-041-3 Online ISBN 978-1-78985-042-0 eBook (PDF) ISBN 978-1-78985-851-8

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## Meet the editor

Vito Bobek has a long history in academia, consulting, and entrepreneurship. In 2008 he founded Palemid, a consulting company where he managed twelve big projects, such as Cooperation Programme Interreg V-A Slovenia-Austria (2014–2020) and Capacity Building for the Serbian Chamber of Enforcement Agents. He has also participated in many international projects in Italy, Germany, the United Kingdom, the United States, Spain, Turkey, France,

Romania, Croatia, Montenegro, Malaysia, and China. He is co-founder of the Academy of Regional Management in Slovenia. During the last 17 years, he has served as a member of the supervisory board at KBM Infond Management Company Ltd., which is a part of the Nova KBM, Plc. banking group, managing Umbrella Fund with twenty-two sub-funds with assets in excess of 300+ million Euros. Since 2017 he has been vice president at Save-Ideas.com. He works as a professor of International Management at the University of Applied Sciences FH Joanneum (Graz, Austria). In his academic career he published 405 units and visited 22 universities worldwide as visiting professor. He is a member of the editorial boards of five international journals and an open access publishing company. Among his previous functions, he was a columnist for the newspaper Vecer, member of Team Europe Slovenia, member of the Academic Expert Group in the Commission of the EU (DG Education) for Erasmus project evaluation and adviser to the Minister of Economic Relations and Development of Slovenia for the strategy of International Economic Relations.

Contents

**Section 1**

**Section 2**

**Section 3**

Customer Journey *by Taşkın Dirsehan*

Community Budgets

**Preface III**

Framework for Smart Urban Development **1**

**Chapter 1 3**

**Chapter 2 17** The Impact of Institutional and Political Factors on Timely Adoption of Local

Urban Planning and Regeneration **31**

**Chapter 3 33**

**Chapter 4 47**

**Chapter 5 67** Analysis of Urban Environment Sustainability in Kurdish Cities of Iran Using

**Chapter 6 83**

Mapping of Smart Urban Development **107**

**Chapter 7 109**

Mapping Smart Mobility Technologies at Istanbul New Airport Using the

Application of a Metabolic Thinking Driven Sustainability Framework in

*by Akbar Heydari, Mohammad Rahim Rahnama and Shadieh Heydari*

Smart Rainwater Management: New Technologies and Innovation

Towards a Generic Framework for Smart Cities *by Hossny Azizalrahman and Valid Hasyimi*

*by Tatjana Horvat, Nataša Gaber Sivka and Vito Bobek*

Symmetrical Aspects of Urban Regeneration in Seoul

the Future Study Approach (Case Study: Saqqez City)

*by Raseswari Pradhan and Jayaprakash Sahoo*

*by Mi-Sun Park, Seunghee Lee and Uk Kim*

Early-Stage Planning of Eco-City *by Ronald Wennersten and Yunzhu Ji*

### Contents



Preface

Cities represent the driving force of development in economic, social, and cultural life and reflect the spatial organization of human society. Today's global cities have new challenges ahead; they are no longer self-sufficient, but embedded in broader, global developments. Furthermore, the city or strategic urban regions are becoming increasingly important players in the global economy, as the impact of national states decreases while the impact of cities and urban regions is increasing. The process of globalization is reflected in the tendency for gaining competitiveness and

Debates about the future of urban development in many countries have been increasingly influenced by discussions of smart cities. Yet despite numerous examples of this 'urban labelling' phenomenon, we know surprisingly little about so-called smart cities. This book provides a preliminary critical discussion of some of the more important aspects of smart cities. Its primary focus is on the experience of some designated smart cities, with a view to problematizing a range of elements that supposedly characterize this new urban form, as well as to question some of the

The first section, 'Framework for Smart Urban Development', deals with the framework for the concept of smart cities. Cities around the globe have been promoting and supporting smart city projects, reflecting the belief that integrating technology and infrastructure can enhance cities' livability, sustainability, services, and competitiveness. Though a lot of research on the topic has been done, there are still limited insights into the managerial angle. This section aims to fill this gap by exploring the generic framework for smart cities through a lens of management in

Furthermore, this section develops a generic framework for smart cities. Cities are formidable drivers of economic, social, and cultural development, but they face many challenges, such as urban sprawl, transportation problems, and climate change. Evolving concepts such as smart cities, sustainable communities, and lowcarbon cities have been employed to formulate initiatives to tackle these challenges. Smart cities appear to address efficiency in reducing time, cost, and energy in delivering services-smart transportation, intelligent buildings, and green infrastructure with a view to reaching low-carbon city development and eventually sustainability. The first chapter constructs a general framework for smart cities by depicting the overall smart city system and elucidating the dynamics of urban sector drivers in smart and low-carbon cities. It also measures the performance of smart cities in relation to low-carbon development. The chapter concludes with policies to realign

The second chapter is devoted to local authorities, faced with the problem of implementing all statutory tasks while maintaining a balanced budget both from a financial perspective as well as from the aspect of satisfying the common needs

underlying assumptions/contradictions hidden within the concept.

order to develop a deeper understanding of such projects.

efficiencies of global trends.

This book is organized into four sections.

city plan and development policies.

## Preface

Cities represent the driving force of development in economic, social, and cultural life and reflect the spatial organization of human society. Today's global cities have new challenges ahead; they are no longer self-sufficient, but embedded in broader, global developments. Furthermore, the city or strategic urban regions are becoming increasingly important players in the global economy, as the impact of national states decreases while the impact of cities and urban regions is increasing. The process of globalization is reflected in the tendency for gaining competitiveness and efficiencies of global trends.

Debates about the future of urban development in many countries have been increasingly influenced by discussions of smart cities. Yet despite numerous examples of this 'urban labelling' phenomenon, we know surprisingly little about so-called smart cities. This book provides a preliminary critical discussion of some of the more important aspects of smart cities. Its primary focus is on the experience of some designated smart cities, with a view to problematizing a range of elements that supposedly characterize this new urban form, as well as to question some of the underlying assumptions/contradictions hidden within the concept.

This book is organized into four sections.

**II**

**Chapter 8 121**

Smart Urban Development and Mobility **147**

**Chapter 9 149**

**Chapter 10 171**

**Chapter 11 185**

Dynamic Street Parking Space Using Memetic Algorithm for Optimization

Cost-Benefit Evaluation Tools on the Impacts of Transport Infrastructure

Environmental Noise Mapping as a Smart Urban Tool Development

Understanding Urban Mobility and Pedestrian Movement

*by Konstantinos Vogiatzis and Nicolas Remy*

*by Marija Bezbradica and Heather J. Ruskin*

*by Stephen Akandwanaho and Irene Govender*

Projects on Urban Form and Development *by Eda Ustaoglu and Brendan Williams*

**Section 4**

The first section, 'Framework for Smart Urban Development', deals with the framework for the concept of smart cities. Cities around the globe have been promoting and supporting smart city projects, reflecting the belief that integrating technology and infrastructure can enhance cities' livability, sustainability, services, and competitiveness. Though a lot of research on the topic has been done, there are still limited insights into the managerial angle. This section aims to fill this gap by exploring the generic framework for smart cities through a lens of management in order to develop a deeper understanding of such projects.

Furthermore, this section develops a generic framework for smart cities. Cities are formidable drivers of economic, social, and cultural development, but they face many challenges, such as urban sprawl, transportation problems, and climate change. Evolving concepts such as smart cities, sustainable communities, and lowcarbon cities have been employed to formulate initiatives to tackle these challenges. Smart cities appear to address efficiency in reducing time, cost, and energy in delivering services-smart transportation, intelligent buildings, and green infrastructure with a view to reaching low-carbon city development and eventually sustainability. The first chapter constructs a general framework for smart cities by depicting the overall smart city system and elucidating the dynamics of urban sector drivers in smart and low-carbon cities. It also measures the performance of smart cities in relation to low-carbon development. The chapter concludes with policies to realign city plan and development policies.

The second chapter is devoted to local authorities, faced with the problem of implementing all statutory tasks while maintaining a balanced budget both from a financial perspective as well as from the aspect of satisfying the common needs and interests of citizens. All these factors are reflected in the timely adoption of a budget. In their efforts for timely adoption of budget, local communities face institutional and political factors. An example of an institutional factor is the cooperation between a mayor and a finance manager in preparation of a budget. An example of a political factor is the clarity of informing a municipal council, which is the decision-taking body of a local community, since both mayor and municipal council are elected politically. To this end, we have set two hypotheses. First, that institutional factors are important for timely adoption of a local community budget. Second, that political factors are also important for the timely adoption of a local community budget.

The second section, 'Urban Planning and Regeneration', starts with a chapter on symmetrical aspects of urban regeneration in Seoul, Korea. Korea has developed very rapidly since the 1980s, highlighted by the Seoul Olympics, and urbanization necessarily incurred. Population grew with increasing housing demands, but old towns couldn't provide enough land. The old town was already congested, and living conditions fell off. Therefore new towns outside the old town were planned and built through three sequential phases. This suburbanization brought about a heavy load on commuter transportation and severe air pollution. At the same time, improper infrastructure and amenities turned new towns into bed-towns. To escape from bed-towns people returned to the old town, and urban remodeling was needed to accommodate adequate living conditions. In doing so, local characteristics were lost. Urban regeneration aroused as a countermeasure to this mishap. In this chapter, urban regeneration reinforced with smart technologies is suggested to revive placelessness, communal connectivity, and urban orientation. Gentrification is another important issue to be resolved for sustainable urbanization. This chapter therefore focuses on symmetrical aspects of successful urban regeneration.

The second chapter is a continuation of previous topics, namely, application of a metabolic thinking-driven sustainability framework in early-stage planning of an eco-city. The fast urbanization rate together with increasing population and consumption are challenging the long-term sustainability of our social systems and supporting eco-systems on earth. Without healthy eco-systems there can be no sustainable urban systems. The signs of instability can be seen in environmental degradation (e.g., climate change and loss of biodiversity). Also, the increasing use of materials and energy create competition and international conflicts. Different concepts and solutions for sustainable urban development have been presented, but the solutions seem inadequate. The success of international agreements to handle global problems has been limited. This is because deeply entrenched economic and political interests are involved. Political leaders are locked up to promises of economic growth and increasing welfare. Through globalization resources and products are transported long distances and it is becoming hard to distinguish between local and global effects. This increases environmental impacts, but it also makes people feel that the overall situation is so complicated that they cannot affect it. Bringing things closer to people will create more awareness and can create enormous opportunities for new ideas and businesses to solve existing problems. The United Nations 2030 Sustainable Development Goals are focused on reducing poverty in the world. This will require economic growth, and the big issue is if this growth can be decoupled from increased use of virgin resources and environmental degradation. It seems more and more urgent to develop support models for urban development on a local scale. As sustainable development involves many normative decisions, participatory planning and cross-sectoral planning will be needed to

**V**

ensure that conflicts between goals can be resolved. Cross-sectoral planning means bringing competences from different urban sectors together physically in workshops, in order to discuss how integration between the urban systems affects the

The third chapter focuses on smart city initiatives in China, which are dominated by various perspectives towards information security, public safety, spatial information, media communication and promotion, Medicare, satellite, water management, smart infrastructure, community, and education. Among the various laboratories and think tanks in China dedicated to smart city standardizations, cultural heritages in the initiatives seem to be ignored or put into the low-tier of the hierarchy. In fact, with goals to revitalize ancient wisdom and memory, China has utilized virtual reconstruction and restoration to conserve cultural heritage sites and objects. With 5000 years of history, China inherits the abundant historical contexts within each inch of its soil. The feasible modules of digital heritage in China are taking shapes to reconnect modern civilization with ancient wisdom. In this chapter, the author investigates the ways to integrate digital heritage contents into smart city initiatives. The author further suggests utilizing smart heritage develop-

comprehensive plan in an early stage of conceptual planning of the city.

ment to raise the sense of poetic dwelling in the urban spaces of China.

global competitive arena of the industries.

suggestions are provided based on customers' experiences.

The fourth chapter assumes that success of smart city construction relies on the proper development and application of information and communications technology where artificial intelligence and the Internet of Things converge gradually and intertwine to create a beautiful life in the future smart city. With the development of Productivity 4.0, cloud computing, big data applications, smart city maintenance, and operational information streaming on mobile networks need to be faster, more reliable, and ensure privacy and security in order to provide participation. This chapter explores the development of Taiwan's industry, and introduces the concepts of intelligent technologies, Internet of Things, cloud computing, massive data analysis, artificial intelligence, cyber-physical systems, and cyber security of smart factories. Finally, it discusses the development status of intelligent manufacturing in Taiwan as well as its integrated manufacturing capabilities. Under the vision of intelligent machinery industrialization and industrial intelligent mechanization, readers are more likely to understand the role of Taiwan in the

The section on 'Mapping of Smart Urban Development' consists of two chapters. The first chapter is devoted to mapping smart mobility technologies at Istanbul New Airport, using the customer journey. We live in an era when urban populations exceed rural populations for the first time in history. Therefore, it is becoming more difficult to manage cities due to overcrowding. On the other hand, developing technology enables city administrations to benefit from citizens' data and serve them in smarter ways. A component of this management tool, smart mobility refers to beneficial technology that improves individuals' mobility. Technology is also an important tool for providing customer experiences in smart cities. This chapter is focused on Istanbul New Airport as a case for smart mobility in which various technologies are implemented to create memorable experiences for passengers. These experiences were mapped with a strategic management tool, customer journey mapping (CJM), which is increasingly popular with both academics and urban administration because it helps to identify customer touch points. Using this tool, passenger experiences are matched with technological applications, and some

ensure that conflicts between goals can be resolved. Cross-sectoral planning means bringing competences from different urban sectors together physically in workshops, in order to discuss how integration between the urban systems affects the comprehensive plan in an early stage of conceptual planning of the city.

The third chapter focuses on smart city initiatives in China, which are dominated by various perspectives towards information security, public safety, spatial information, media communication and promotion, Medicare, satellite, water management, smart infrastructure, community, and education. Among the various laboratories and think tanks in China dedicated to smart city standardizations, cultural heritages in the initiatives seem to be ignored or put into the low-tier of the hierarchy. In fact, with goals to revitalize ancient wisdom and memory, China has utilized virtual reconstruction and restoration to conserve cultural heritage sites and objects. With 5000 years of history, China inherits the abundant historical contexts within each inch of its soil. The feasible modules of digital heritage in China are taking shapes to reconnect modern civilization with ancient wisdom. In this chapter, the author investigates the ways to integrate digital heritage contents into smart city initiatives. The author further suggests utilizing smart heritage development to raise the sense of poetic dwelling in the urban spaces of China.

The fourth chapter assumes that success of smart city construction relies on the proper development and application of information and communications technology where artificial intelligence and the Internet of Things converge gradually and intertwine to create a beautiful life in the future smart city. With the development of Productivity 4.0, cloud computing, big data applications, smart city maintenance, and operational information streaming on mobile networks need to be faster, more reliable, and ensure privacy and security in order to provide participation. This chapter explores the development of Taiwan's industry, and introduces the concepts of intelligent technologies, Internet of Things, cloud computing, massive data analysis, artificial intelligence, cyber-physical systems, and cyber security of smart factories. Finally, it discusses the development status of intelligent manufacturing in Taiwan as well as its integrated manufacturing capabilities. Under the vision of intelligent machinery industrialization and industrial intelligent mechanization, readers are more likely to understand the role of Taiwan in the global competitive arena of the industries.

The section on 'Mapping of Smart Urban Development' consists of two chapters. The first chapter is devoted to mapping smart mobility technologies at Istanbul New Airport, using the customer journey. We live in an era when urban populations exceed rural populations for the first time in history. Therefore, it is becoming more difficult to manage cities due to overcrowding. On the other hand, developing technology enables city administrations to benefit from citizens' data and serve them in smarter ways. A component of this management tool, smart mobility refers to beneficial technology that improves individuals' mobility. Technology is also an important tool for providing customer experiences in smart cities. This chapter is focused on Istanbul New Airport as a case for smart mobility in which various technologies are implemented to create memorable experiences for passengers. These experiences were mapped with a strategic management tool, customer journey mapping (CJM), which is increasingly popular with both academics and urban administration because it helps to identify customer touch points. Using this tool, passenger experiences are matched with technological applications, and some suggestions are provided based on customers' experiences.

**IV**

community budget.

and interests of citizens. All these factors are reflected in the timely adoption of a budget. In their efforts for timely adoption of budget, local communities face institutional and political factors. An example of an institutional factor is the cooperation between a mayor and a finance manager in preparation of a budget. An example of a political factor is the clarity of informing a municipal council, which is the decision-taking body of a local community, since both mayor and municipal council are elected politically. To this end, we have set two hypotheses. First, that institutional factors are important for timely adoption of a local community budget. Second, that political factors are also important for the timely adoption of a local

The second section, 'Urban Planning and Regeneration', starts with a chapter on symmetrical aspects of urban regeneration in Seoul, Korea. Korea has developed very rapidly since the 1980s, highlighted by the Seoul Olympics, and urbanization necessarily incurred. Population grew with increasing housing demands, but old towns couldn't provide enough land. The old town was already congested, and living conditions fell off. Therefore new towns outside the old town were planned and built through three sequential phases. This suburbanization brought about a heavy load on commuter transportation and severe air pollution. At the same time, improper infrastructure and amenities turned new towns into bed-towns. To escape from bed-towns people returned to the old town, and urban remodeling was needed to accommodate adequate living conditions. In doing so, local characteristics were lost. Urban regeneration aroused as a countermeasure to this mishap. In this chapter, urban regeneration reinforced with smart technologies is suggested to revive placelessness, communal connectivity, and urban orientation. Gentrification is another important issue to be resolved for sustainable urbanization. This chapter

therefore focuses on symmetrical aspects of successful urban regeneration.

The second chapter is a continuation of previous topics, namely, application of a metabolic thinking-driven sustainability framework in early-stage planning of an eco-city. The fast urbanization rate together with increasing population and consumption are challenging the long-term sustainability of our social systems and supporting eco-systems on earth. Without healthy eco-systems there can be no sustainable urban systems. The signs of instability can be seen in environmental degradation (e.g., climate change and loss of biodiversity). Also, the increasing use of materials and energy create competition and international conflicts. Different concepts and solutions for sustainable urban development have been presented, but the solutions seem inadequate. The success of international agreements to handle global problems has been limited. This is because deeply entrenched economic and political interests are involved. Political leaders are locked up to promises of economic growth and increasing welfare. Through globalization resources and products are transported long distances and it is becoming hard to distinguish between local and global effects. This increases environmental impacts, but it also makes people feel that the overall situation is so complicated that they cannot affect it. Bringing things closer to people will create more awareness and can create enormous opportunities for new ideas and businesses to solve existing problems. The United Nations 2030 Sustainable Development Goals are focused on reducing poverty in the world. This will require economic growth, and the big issue is if this growth can be decoupled from increased use of virgin resources and environmental degradation. It seems more and more urgent to develop support models for urban development on a local scale. As sustainable development involves many normative decisions, participatory planning and cross-sectoral planning will be needed to

The second chapter in this section investigates environmental noise mapping as a smart urban development tool. Since European Directive 2002/49, large transportation infrastructure (roads, railways, and airports) along with large urban areas of more than 100,000 inhabitants should have completed Strategic Noise Maps (SNM) and Noise Action Plans (NAP). During the last 10 years or so, the majority of EU Member States has enforced this directive and complied fully or partially with European smart cities to use and share the same criteria and methodologies. States have also worked with transport operators to communicate to the public the relevant results and respective action plans by ensuring citizens' awareness of the environmental noise, the quality acoustic environment, and their effects on the population's everyday lives. Today, 18 years after its first edition, the European Directive 2002/49/EC needs to be reformulated to take into account all defects that have been identified and to adapt as well as possible to contemporary constraints. New methodology tools have been developed especially regarding soundscaping and environmental acoustic rehabilitation of urban areas. This chapter describes the progress being made on smart developments of cities and infrastructures. Within this chapter criticisms of these smart tools are also evoked and results from several cases studies are presented. The content of this chapter is based on more than ten representative case studies conducted by the authors in Greece since 2002.

The final section on 'Smart Urban Development and Mobility' consists of three chapters. The first chapter is devoted to understanding urban mobility and pedestrian movement. Urban environments continue to expand and mutate, both in terms of size and number of people commuting daily as well as the number of options for personal mobility. City layouts and infrastructure also change constantly, subject to both short-and long-term imperatives. Transportation networks have attracted particular attention in recent years, due to efforts to incorporate 'green' options, enabling positive lifestyle choices such as walking or cycling. In this chapter the pedestrian viewpoint aids to familiarity with and ease of navigation in the urban environment, and the impact of novel modes of individual transport (as options such as smart urban bicycles and electric scooters increasingly become the norm) are explored. Principal factors influencing rapid transit to daily and leisure destinations, such as schools, offices, parks and entertainment venues, but also those which facilitate rapid evacuation and movement of large crowds from these locations, characterized by high occupation density or throughput, are discussed. The focus of the chapter is on understanding and representing pedestrian behavior through the Agent-Based Modelling paradigm, allowing both large numbers of individual actions with active awareness of the environment to be simulated and pedestrian group movements to be modelled on real urban networks, together with congestion and evacuation pattern visualization.

The second chapter in this section investigates the dynamic optimization of street parking space allocation using an adaptive memetic algorithm. In recent years there has been an increasing number of automobiles in cities around the world. This is due to more people living and working in cities as a result of urbanization. Street parking remains a common option for motorists, due to it being cheap and convenient. However, this option leads to a high concentration of vehicles causing congestion and obstruction of traffic. This problem is compounded as motorists wait for others to pull out of parking bays or look for empty parking spaces. In order to provide relief to this problem, an intelligent approach is proposed that generates an optimal parking space based on the vehicle location and desired destination. The proposed approach applies its operators adaptively and it derives optimality from the synergy between genetic algorithm and a local search technique in the search

**VII**

without you.

optimization process. The proposed method exhibits superior performance when

The last chapter deals in cost-benefit evaluation tools on the impacts of transport infrastructure projects on urban form and development. It reviews literature for identifying the methods to evaluate the impacts of key transport infrastructure provisions on urban form and peri-urban development in the European Union. Key impacts and linkages of transportation provision on urban development trends are identified through the international literature. These include direct impacts of transportation infrastructure provision, socio-economic impacts, transportation network effects, and energy and environmental impacts. Among the evaluation methodologies, Cost-Benefit Analysis (CBA) is the most common approach for transport policy impact assessments both in the national project appraisal guidelines and in scientific analysis and research. Considering its extensive usage in the appraisal work, the main focus of the chapter is on the evaluation tools used within the CBA approach. The corresponding data requirements for the valuation of indicators are also discussed in order to assess the costs and benefits of transport investments, particularly rapid rail investments, on urban form and development.

I'd like to thank IntechOpen publishing for giving me the opportunity to edit this book. I appreciate that they believed I could provide the necessary knowledge and technical assistance. We together managed to find the great colleagues that contributed to this book. I thank each of the authors for their valuable contributions. I think this book will be an asset to the professional community. I also wish to thank our technical reviewers and colleagues at IntechOpen. We couldn't have done it

**Vito Bobek**

Austria

University of Applied Sciences FH Joanneum,

compared with the existing methods over multiple iterations.

optimization process. The proposed method exhibits superior performance when compared with the existing methods over multiple iterations.

The last chapter deals in cost-benefit evaluation tools on the impacts of transport infrastructure projects on urban form and development. It reviews literature for identifying the methods to evaluate the impacts of key transport infrastructure provisions on urban form and peri-urban development in the European Union. Key impacts and linkages of transportation provision on urban development trends are identified through the international literature. These include direct impacts of transportation infrastructure provision, socio-economic impacts, transportation network effects, and energy and environmental impacts. Among the evaluation methodologies, Cost-Benefit Analysis (CBA) is the most common approach for transport policy impact assessments both in the national project appraisal guidelines and in scientific analysis and research. Considering its extensive usage in the appraisal work, the main focus of the chapter is on the evaluation tools used within the CBA approach. The corresponding data requirements for the valuation of indicators are also discussed in order to assess the costs and benefits of transport investments, particularly rapid rail investments, on urban form and development.

I'd like to thank IntechOpen publishing for giving me the opportunity to edit this book. I appreciate that they believed I could provide the necessary knowledge and technical assistance. We together managed to find the great colleagues that contributed to this book. I thank each of the authors for their valuable contributions. I think this book will be an asset to the professional community. I also wish to thank our technical reviewers and colleagues at IntechOpen. We couldn't have done it without you.

> **Vito Bobek** University of Applied Sciences FH Joanneum, Austria

**VI**

The second chapter in this section investigates environmental noise mapping as a smart urban development tool. Since European Directive 2002/49, large transportation infrastructure (roads, railways, and airports) along with large urban areas of more than 100,000 inhabitants should have completed Strategic Noise Maps (SNM) and Noise Action Plans (NAP). During the last 10 years or so, the majority of EU Member States has enforced this directive and complied fully or partially with European smart cities to use and share the same criteria and methodologies. States have also worked with transport operators to communicate to the public the relevant results and respective action plans by ensuring citizens' awareness of the environmental noise, the quality acoustic environment, and their effects on the population's everyday lives. Today, 18 years after its first edition, the European Directive 2002/49/EC needs to be reformulated to take into account all defects that have been identified and to adapt as well as possible to contemporary constraints. New methodology tools have been developed especially regarding soundscaping and environmental acoustic rehabilitation of urban areas. This chapter describes the progress being made on smart developments of cities and infrastructures. Within this chapter criticisms of these smart tools are also evoked and results from several cases studies are presented. The content of this chapter is based on more than ten representative case studies conducted by the authors in Greece since 2002.

The final section on 'Smart Urban Development and Mobility' consists of three chapters. The first chapter is devoted to understanding urban mobility and pedestrian movement. Urban environments continue to expand and mutate, both in terms of size and number of people commuting daily as well as the number of options for personal mobility. City layouts and infrastructure also change constantly, subject to both short-and long-term imperatives. Transportation networks have attracted particular attention in recent years, due to efforts to incorporate 'green' options, enabling positive lifestyle choices such as walking or cycling. In this chapter the pedestrian viewpoint aids to familiarity with and ease of navigation in the urban environment, and the impact of novel modes of individual transport (as options such as smart urban bicycles and electric scooters increasingly become the norm) are explored. Principal factors influencing rapid transit to daily and leisure destinations, such as schools, offices, parks and entertainment venues, but also those which facilitate rapid evacuation and movement of large crowds from these locations, characterized by high occupation density or throughput, are discussed. The focus of the chapter is on understanding and representing pedestrian behavior through the Agent-Based Modelling paradigm, allowing both large numbers of individual actions with active awareness of the environment to be simulated and pedestrian group movements to be modelled on real urban networks, together with

The second chapter in this section investigates the dynamic optimization of street parking space allocation using an adaptive memetic algorithm. In recent years there has been an increasing number of automobiles in cities around the world. This is due to more people living and working in cities as a result of urbanization. Street parking remains a common option for motorists, due to it being cheap and convenient. However, this option leads to a high concentration of vehicles causing congestion and obstruction of traffic. This problem is compounded as motorists wait for others to pull out of parking bays or look for empty parking spaces. In order to provide relief to this problem, an intelligent approach is proposed that generates an optimal parking space based on the vehicle location and desired destination. The proposed approach applies its operators adaptively and it derives optimality from the synergy between genetic algorithm and a local search technique in the search

congestion and evacuation pattern visualization.

**1**

Section 1

Framework for Smart

Urban Development

Section 1

## Framework for Smart Urban Development

**3**

**Chapter 1**

**Abstract**

Smart Cities

indicators, assessment framework

**1. Introduction**

*Hossny Azizalrahman and Valid Hasyimi*

Towards a Generic Framework for

Cities are formidable drivers of economic, social and cultural development but face a rising multitude of challenges: urban sprawl, transportation problems and climate change to mention but a few. Evolving concepts such as smart cities, sustainable communities and low carbon cities have been employed to formulate initiatives to tackle these challenges. Smart cities appear to address efficiency in reducing time, cost, and energy in delivering services-smart transportation, intelligent buildings, and green infrastructure with a view to reaching low carbon city development and eventually sustainability. This article attempts to construct a general framework for smart cities. First, the overall smart city system is depicted. Second, the dynamics of urban sector drivers in smart and low carbon cities are elucidated. Third, the performance of smart cities is measured in relation to low carbon development. By applying the smart city framework to the cities of Vienna, London, New York and Tokyo, the model proved robust and flexible. The investigation is concluded with policies to realign city plan and development policies.

**Keywords:** smart cities, low carbon cities, urban sector drivers, performance

15% less infrastructure needs than two cities of 4 million each [2].

The rising demand for living in cities is likely to accentuate sustainability challenges, climate change and resource allocation. Cities constantly compete for international investment to generate employment, revenue and funds for development, all leading to elevated energy consumption and CO2 emissions [1]. Cities also seek innovation and efficiency in reducing time, cost, and energy in delivering services: smart transportation, intelligent buildings, and smart infrastructure that would lead to low carbon city development. In fact, 80% of the world's gross domestic product is created in cities; urban citizens earn on average three times the income of their rural counterparts; and people living in larger cities tend to have smaller energy footprints and require fewer infrastructures, consume less resources, and have higher productivity levels. A city of 8 million has 15% more productivity and

There are several urbanization models that incorporate digital technologies to address some of the urbanization and sustainability challenges. While digital cities attempt to integrate digital technology into city's infrastructure, intelligent cities utilize digital city infrastructure to construct intelligent urban systems featuring intelligent buildings, transportation systems, hospitals, schools, public services.

#### **Chapter 1**

### Towards a Generic Framework for Smart Cities

*Hossny Azizalrahman and Valid Hasyimi*

#### **Abstract**

Cities are formidable drivers of economic, social and cultural development but face a rising multitude of challenges: urban sprawl, transportation problems and climate change to mention but a few. Evolving concepts such as smart cities, sustainable communities and low carbon cities have been employed to formulate initiatives to tackle these challenges. Smart cities appear to address efficiency in reducing time, cost, and energy in delivering services-smart transportation, intelligent buildings, and green infrastructure with a view to reaching low carbon city development and eventually sustainability. This article attempts to construct a general framework for smart cities. First, the overall smart city system is depicted. Second, the dynamics of urban sector drivers in smart and low carbon cities are elucidated. Third, the performance of smart cities is measured in relation to low carbon development. By applying the smart city framework to the cities of Vienna, London, New York and Tokyo, the model proved robust and flexible. The investigation is concluded with policies to realign city plan and development policies.

**Keywords:** smart cities, low carbon cities, urban sector drivers, performance indicators, assessment framework

#### **1. Introduction**

The rising demand for living in cities is likely to accentuate sustainability challenges, climate change and resource allocation. Cities constantly compete for international investment to generate employment, revenue and funds for development, all leading to elevated energy consumption and CO2 emissions [1]. Cities also seek innovation and efficiency in reducing time, cost, and energy in delivering services: smart transportation, intelligent buildings, and smart infrastructure that would lead to low carbon city development. In fact, 80% of the world's gross domestic product is created in cities; urban citizens earn on average three times the income of their rural counterparts; and people living in larger cities tend to have smaller energy footprints and require fewer infrastructures, consume less resources, and have higher productivity levels. A city of 8 million has 15% more productivity and 15% less infrastructure needs than two cities of 4 million each [2].

There are several urbanization models that incorporate digital technologies to address some of the urbanization and sustainability challenges. While digital cities attempt to integrate digital technology into city's infrastructure, intelligent cities utilize digital city infrastructure to construct intelligent urban systems featuring intelligent buildings, transportation systems, hospitals, schools, public services.

By the same token, smart cities deploy intelligent urban systems to support socioeconomic development and improve urban quality of life [3].

Smart city initiatives seek to overcome the limitations of traditional urban development that manages infrastructure systems in silos and leverage the pervasive character of data and services offered by digital technologies, such as cloud computing, the internet of things, open and big data. As such, different stakeholders, investors and citizens work to enhance existing services and provide new services. Smart city development is highly complex, challenging and context-specific. Challenges arise from discourses of technologies and policies, failure to tackle urban sustainability challenges, and governance framework.

#### **2. Smart city concept**

Over the past two decades, the concept of "smart cities" has surfaced to address the economic and social life of first worldwide cities [4]. Put simply, a smart city is a community that uses different data gathering devices to disseminate information that is used to manage services efficiently such as traffic control, power plants, water supply networks, hospitals, and other community services [5]. Within this context, citizens are very important for city's development. To keep them engaged, real quality services have to be offered at reasonable cost.

Associated as it is with technology, the concept of "smart city" has superseded other versions: "information city", "digital city" and the "intelligent city". In fact, the "digital city" originates from an experiment in Amsterdam in 1994, with the aim of democratizing access to the internet. The "digital city" now refers to: a connected community that combines broadband communications infrastructure; flexible, service-oriented computing infrastructure based on open industry standards; and innovative services to meet the needs of governments and their employees, citizens and businesses [6].

Smart city has been widely studied and registered under ISO 37120 sustainable cities and communities. The indicators of smart city services and quality of life are set out in ISO 37122 and resilient city standards are prescribed in ISO 37123 (**Figure 1**).

**5**

**Figure 3.**

*Significant sectors in selected global cities.*

*Towards a Generic Framework for Smart Cities DOI: http://dx.doi.org/10.5772/intechopen.85820*

**3. Smart city and carbon emissions**

**Figure 2.**

*Basic components of smart city.*

Indicators include, inter alia, economy, education, energy, climate change, finance, governance, health, housing, waste water and water quality. In the transportation sector for instance, data mining and sensing are used to obtain real-time data for managing duration of traffic light, traffic jam and accidents. It also potentially encourages mobility sharing through car, motorcycle and bicycle (**Figure 2**).

Because energy is central to smart city and low carbon cities, this section investigates the impact of urbanization on carbon emissions focusing on residential, commercial and industrial sectors, the major components of any city's land use.

**Figure 1.** *Smart city indicators and standards of sustainable development.*

*Towards a Generic Framework for Smart Cities DOI: http://dx.doi.org/10.5772/intechopen.85820*

*Smart Urban Development*

**2. Smart city concept**

and businesses [6].

(**Figure 1**).

By the same token, smart cities deploy intelligent urban systems to support socio-

opment that manages infrastructure systems in silos and leverage the pervasive character of data and services offered by digital technologies, such as cloud computing, the internet of things, open and big data. As such, different stakeholders, investors and citizens work to enhance existing services and provide new services. Smart city development is highly complex, challenging and context-specific. Challenges arise from discourses of technologies and policies, failure to tackle urban

Smart city initiatives seek to overcome the limitations of traditional urban devel-

Over the past two decades, the concept of "smart cities" has surfaced to address the economic and social life of first worldwide cities [4]. Put simply, a smart city is a community that uses different data gathering devices to disseminate information that is used to manage services efficiently such as traffic control, power plants, water supply networks, hospitals, and other community services [5]. Within this context, citizens are very important for city's development. To keep them engaged,

Associated as it is with technology, the concept of "smart city" has superseded other versions: "information city", "digital city" and the "intelligent city". In fact, the "digital city" originates from an experiment in Amsterdam in 1994, with the aim of democratizing access to the internet. The "digital city" now refers to: a connected community that combines broadband communications infrastructure; flexible, service-oriented computing infrastructure based on open industry standards; and innovative services to meet the needs of governments and their employees, citizens

Smart city has been widely studied and registered under ISO 37120 sustainable cities and communities. The indicators of smart city services and quality of life are set out in ISO 37122 and resilient city standards are prescribed in ISO 37123

economic development and improve urban quality of life [3].

sustainability challenges, and governance framework.

real quality services have to be offered at reasonable cost.

**4**

**Figure 1.**

*Smart city indicators and standards of sustainable development.*

**Figure 2.** *Basic components of smart city.*

Indicators include, inter alia, economy, education, energy, climate change, finance, governance, health, housing, waste water and water quality. In the transportation sector for instance, data mining and sensing are used to obtain real-time data for managing duration of traffic light, traffic jam and accidents. It also potentially encourages mobility sharing through car, motorcycle and bicycle (**Figure 2**).

#### **3. Smart city and carbon emissions**

Because energy is central to smart city and low carbon cities, this section investigates the impact of urbanization on carbon emissions focusing on residential, commercial and industrial sectors, the major components of any city's land use.

**Figure 3.** *Significant sectors in selected global cities.*

Azizalrahman and Hasyimi [7] have suggested a comparative analysis of low carbon cities in high income, upper-middle income and lower-middle income groups of countries. They have formulated an impact model of urban sector drivers on carbon emissions (USDM) to examine the relationship between urbanization, economic factors and carbon emissions and exposed urban dynamics of variables' interaction at city level. They found that most carbon emissions originating from the residential, commercial and public sectors are strongly influenced by energy consumption. Urbanization displays an inverse function with energy consumption and a positive correlation with economy. Based on IESE Cities in Motion Index 2018 [8], the performance of top global cities are measured and ranked based on dominant sectors which promote to sustainability (**Figure 3**).


#### **Figure 4.**

*Effect of carbon emissions in smart cities of high, upper-middle, and lower-middle countries.*

**7**

*Towards a Generic Framework for Smart Cities DOI: http://dx.doi.org/10.5772/intechopen.85820*

Index (CIMI) [8, 10–12].

**4. Smart city framework**

infrastructure development.

Based on their dominant characteristic, cities in lower middle-income countries have typical market towns that struggle on rapid urbanization. By contrast, cities in upper middle-income countries have typical production centres which focus on productivity. Cities in high income countries have become centres of finance and creative industries which face challenges of migrating firms to other regions (**Figure 4**).

Low carbon city and smart city are two forms of city development frameworks that purse sustainability. Low carbon city was established earlier than smart city in response to global warming and climate change. On the other hand, smart city has surfaced in the past decade to disseminate information and deploy technology solutions to improve efficiencies of city systems. Whereas low carbon city is mitigation purpose oriented, smart city is an adoption or adaptation targeted. Smart city has potentials to disseminate real data and record big data simultaneously thereby,

Low carbon city framework has robust and clear targets, e.g., sulphur, nitrogen, and carbon emission levels. On the contrary, smart city has general; less specific targets that render measurement of smartness more difficult. Further, there is a widespread body of literature on low carbon city as opposed to relatively scant literature on smart cities. Some institutions have tried to develop evaluation models using sets of indicators to rank smart city performance such as smart cities ranking for Europe, world smart city government ranking, and the IESE Cities in Motion

A smart city can be viewed within the wider perspective of sustainable city. The basic sectors include, amongst other things, technology, community, economy and energy which facilitate the development of a real concept of smart city. As such it gets closer to the definition of [11] who maintain that a city is smart when governance drives investment in human capital and IT infrastructure to achieve sustainable development. The authors have constructed a fourfold framework for a typical smart city comprising technology, community, economy and energy to clearly distinguish between smart city and low carbon and sustainable cities (**Figure 6**).

a.Technology framework: ostensibly, smart cities are heavily dependent on the use of technology that is supported by technological infrastructure. These varied technologies are applied to diverse urban domains (e.g., economy, transportation, energy, environment, water management, waste disposal, education and healthcare, governance and public participation) to achieve efficiency and better management [9]. Within a Smart city context, information technology is not considered independently, but rather within wider physical and social systems that seek to deliver efficient service to people, business and government. It has become popular not only to smart cities, but also to engineering firms seeking innovation and investment opportunities for physical urban and

b.Community framework: communities are central to city's intelligence as

exemplified by human activities, innovation and knowledge. Human and social capital drives city's economy and technology deployment. Their power lies in effective creation of economic, cultural, social environment and formation of public opinion. Through participatory function, communities can influence policy formulation and decision making, such as redistribution of public finance and increasing the transparency of public expenditure. Representatives

enabling decision maker to track city system changes [9], see **Figure 5**.

*Towards a Generic Framework for Smart Cities DOI: http://dx.doi.org/10.5772/intechopen.85820*

*Smart Urban Development*

which promote to sustainability (**Figure 3**).

Azizalrahman and Hasyimi [7] have suggested a comparative analysis of low carbon cities in high income, upper-middle income and lower-middle income groups of countries. They have formulated an impact model of urban sector drivers on carbon emissions (USDM) to examine the relationship between urbanization, economic factors and carbon emissions and exposed urban dynamics of variables' interaction at city level. They found that most carbon emissions originating from the residential, commercial and public sectors are strongly influenced by energy consumption. Urbanization displays an inverse function with energy consumption and a positive correlation with economy. Based on IESE Cities in Motion Index 2018 [8], the performance of top global cities are measured and ranked based on dominant sectors

*Effect of carbon emissions in smart cities of high, upper-middle, and lower-middle countries.*

**6**

**Figure 5.**

**Figure 4.**

*Commonalities between smart city and low carbon city in sustainability framework.*

Based on their dominant characteristic, cities in lower middle-income countries have typical market towns that struggle on rapid urbanization. By contrast, cities in upper middle-income countries have typical production centres which focus on productivity. Cities in high income countries have become centres of finance and creative industries which face challenges of migrating firms to other regions (**Figure 4**).

Low carbon city and smart city are two forms of city development frameworks that purse sustainability. Low carbon city was established earlier than smart city in response to global warming and climate change. On the other hand, smart city has surfaced in the past decade to disseminate information and deploy technology solutions to improve efficiencies of city systems. Whereas low carbon city is mitigation purpose oriented, smart city is an adoption or adaptation targeted. Smart city has potentials to disseminate real data and record big data simultaneously thereby, enabling decision maker to track city system changes [9], see **Figure 5**.

Low carbon city framework has robust and clear targets, e.g., sulphur, nitrogen, and carbon emission levels. On the contrary, smart city has general; less specific targets that render measurement of smartness more difficult. Further, there is a widespread body of literature on low carbon city as opposed to relatively scant literature on smart cities. Some institutions have tried to develop evaluation models using sets of indicators to rank smart city performance such as smart cities ranking for Europe, world smart city government ranking, and the IESE Cities in Motion Index (CIMI) [8, 10–12].

#### **4. Smart city framework**

A smart city can be viewed within the wider perspective of sustainable city. The basic sectors include, amongst other things, technology, community, economy and energy which facilitate the development of a real concept of smart city. As such it gets closer to the definition of [11] who maintain that a city is smart when governance drives investment in human capital and IT infrastructure to achieve sustainable development. The authors have constructed a fourfold framework for a typical smart city comprising technology, community, economy and energy to clearly distinguish between smart city and low carbon and sustainable cities (**Figure 6**).


**Figure 6.** *Basic smart city's sectors.*

of cities, policy and decision makers should aim to reach consensus with the community on smart urban development [13].


#### **4.1 Proposed smart city framework**

A generic framework for smart cities is proposed comprising: (1) goal, (2) conceptualization, (3) assessment, and (4) implication. This model is useful to address smart city transformation that leads to sustainability. It affords a summary of complex transformation processes that are needed for cities seeking to be smart (**Figure 7**).

#### **4.2 Smart city criteria and indicators**

Common performance measurement methods use scoring methods which assess the current city condition. Here, the authors have used quantitative indicators used in the proposed model to create a generic framework to increase objectivity and realism. The indicators were obtained from several sources: ISO 337122, smart city in Europe, and generic model for low-carbon city [10]. The authors have initiated gathering of data for the basic sectors of the smart city: technology, community, economy and energy for which 20 key performance indicators (KPIs) were selected. For modelling purpose, the KPIs were then categorized under six urban

**9**

**Figure 8.**

*Smart city indicators and categorization.*

*Towards a Generic Framework for Smart Cities DOI: http://dx.doi.org/10.5772/intechopen.85820*

**Figure 7.**

*Proposed smart city framework.*

for developed countries set out by EU (**Table 1**).

development sectors: competitiveness, energy, mobility, urban management, urban living and waste management. The selected indicators can be seen in **Figure 8**.

Quantifiable indicators under each criterion are then selected to measure smart city performance and compare it with the benchmarks [14]. Benchmark setting is important because it aims to sufficiently differentiate between cities of various performance. Benchmarks were derived from multiple sources: (1) World Bank and WHO; (2) top city performances, such as green city index; (3) International targets

*Towards a Generic Framework for Smart Cities DOI: http://dx.doi.org/10.5772/intechopen.85820*

**Figure 7.** *Proposed smart city framework.*

*Smart Urban Development*

**Figure 6.**

*Basic smart city's sectors.*

of cities, policy and decision makers should aim to reach consensus with the

c.Economy framework: knowledge and digital economy are essential drivers of the smart city discourse. The terms "knowledge-based economy" refer to an economy where more knowledge-intensive than labour-intensive activities take place. It played a significant role in the emergence of the idea of smart cities; it is one of the two strands of thinking that formed the current ideas about what a smart city is, how it works, and what it can do. Moreover, smart city changes people's behaviour in purchasing from traditional to online transaction. It increases e-money usage, encourages store owners to react to this condition

d.Energy framework: smart cities seek to develop smart energy infrastructure, disseminate data to create efficiencies, leverage economic development, and enhance quality of life. A smart city features, inter alia, smart street lighting, intelligent buildings, smart mobility and power grid. The common thread is energy, economics and impact on cities. However, smart cities seem to have shifted attention away from environmental problems, climate change and carbon emissions to infrastructure and information usage and sharing.

A generic framework for smart cities is proposed comprising: (1) goal, (2) conceptualization, (3) assessment, and (4) implication. This model is useful to address smart city transformation that leads to sustainability. It affords a summary of complex transformation processes that are needed for cities seeking to be smart (**Figure 7**).

Common performance measurement methods use scoring methods which assess the current city condition. Here, the authors have used quantitative indicators used in the proposed model to create a generic framework to increase objectivity and realism. The indicators were obtained from several sources: ISO 337122, smart city in Europe, and generic model for low-carbon city [10]. The authors have initiated gathering of data for the basic sectors of the smart city: technology, community, economy and energy for which 20 key performance indicators (KPIs) were selected. For modelling purpose, the KPIs were then categorized under six urban

community on smart urban development [13].

with some changes in their business models, etc.

**4.1 Proposed smart city framework**

**4.2 Smart city criteria and indicators**

**8**

development sectors: competitiveness, energy, mobility, urban management, urban living and waste management. The selected indicators can be seen in **Figure 8**.

Quantifiable indicators under each criterion are then selected to measure smart city performance and compare it with the benchmarks [14]. Benchmark setting is important because it aims to sufficiently differentiate between cities of various performance. Benchmarks were derived from multiple sources: (1) World Bank and WHO; (2) top city performances, such as green city index; (3) International targets for developed countries set out by EU (**Table 1**).

**Figure 8.**

*Smart city indicators and categorization.*


**Table 1.**

*Smart city indicators and benchmarks.*

A multi-criteria evaluation model has been proposed by modifying the framework of Azizalrahman and Hasyimi [23].

The equation of data normalization is set out in Eqs. (1) and (2).

$$\mathcal{Y}\_i = \frac{\mathbf{x}\_i - \mathbf{x}\_b}{\mathcal{X}\_b} \tag{1}$$

$$\mathcal{Y}\_{i} = \frac{\mathbf{x}\_{b} - \mathbf{x}\_{i}}{\mathcal{X}\_{b}} \tag{2}$$

**11**

**Table 2.**

disposed

*Towards a Generic Framework for Smart Cities DOI: http://dx.doi.org/10.5772/intechopen.85820*

maximum 1 (**Table 2**).

score as shown in Eq. (4).

*ST* <sup>=</sup> (<sup>∑</sup>

able (90–100) as illustrated in **Figure 9**.

Share of waste collected and adequately

*Proposed multi-criteria evaluation model for smart city.*

0–100 could be seen in Eq. (3).

where *yi* is normalized data of assessed object on *i* indicator, *xi* is original value of the object on *i*th indicator, *xb* is benchmark value of *i*th indicator. While Eq. (1) is used for indicators with positive effects, Eq. (2) is used for indicators with negative effects. This calculation will produce the score from minimum (−1) to

For better performance presentation, the standardization by score conversion to

*Sc* = 50 ( *yi* + 1) (3)

Where *Sc* denotes the average score per category. *ST* defines the average total

*c*=1 *n Sc*

To obtain an average score *ST*, an equal weight is assigned to 6 categories, the result of which features a smart city scale 0–100, from: unsustainable (0–9); high carbon (10–29); neutral (30–49); low carbon (50–69); smart (70–89) and sustain-

**Indicator Unit of measurement Formula** *yic Sc*

GDP Per capita \$/capita *yi* = \_\_\_\_\_\_\_

Economy: services and other activity % of gross value added *yi* = \_\_\_\_\_

Employment in services % employed *yi* = \_\_\_\_\_

Carbon productivity USD/ton *yi* = \_\_\_\_\_\_\_

Proportion of renewable energy % *yi* = \_\_\_\_\_

Energy intensity MJ/USD *yi* <sup>=</sup> \_\_\_\_

Public buses per capita buses/million persons *yi* = \_\_\_\_\_\_

Rail length per capita km/million persons *yi* = \_\_\_\_

Cars per capita Private cars/persons *yi* <sup>=</sup> \_\_\_\_\_\_

Proportion of public green space % *yi* = \_\_\_\_\_

Population density People/km2 *yi* = \_\_\_\_\_\_\_\_

Solid waste generation per capita Kg/capita/day *yi* <sup>=</sup> \_\_\_\_\_

Water consumption intensity L/capita/day *yi* = \_\_\_\_\_\_ <sup>102</sup> <sup>−</sup> …

Education: government expenditure % of GDP *yi* = \_\_\_\_

Individuals using the internet per 100 inhabitants *yi* = \_\_\_\_\_

Research and development expenditure % of GDP *yi* = \_\_\_\_\_

CO2 emission per capita Ton/person *yi* <sup>=</sup> \_\_\_\_\_\_ 2.19 <sup>−</sup> …

Share of material recycling % *yi* = \_\_\_\_\_

Share of wastewater treated % *yi* = \_\_\_\_\_

Average (*ST*) …

)/6 (4)

…−25616 25616

> …−60 60

> …−60 60

…−8244 8244

> …−10 10

4 − … 4

…−694 694

> …40 40

0.39 − … 0.39

…−35

…−4236.1 4236.1

> 0.8 − … 0.8

> > 102

…−3 3

…−70 70

…−1.5 1.5

2.19

…−80 80

…−30 30

…−75 75

% *yi* = \_\_\_\_\_

<sup>35</sup> …

*Towards a Generic Framework for Smart Cities DOI: http://dx.doi.org/10.5772/intechopen.85820*

*Smart Urban Development*

**Category Indicator Effect Unit of** 

Economy: services and other activity

Employment in services

Proportion of renewable energy

capita

green space

Solid waste generation per capita

Water consumption intensity

> government expenditure

Individuals using the internet

> Research and development expenditure

CO2 emission per capita

Share of waste collected and adequately disposed

Share of material recycling

Share of wastewater treated

Transportation Public buses per

Urban Living Proportion of public

Management Education:

Waste and pollution

**Table 1.**

**measurement**

value added

+ % employed 60 [16]

+ % 10 [17]

+ % 35 [18]

− Kg/capita/day 0.8 [20]

− L/capita/day 102 [21]

+ % of GDP 3 [16]

+ % of GDP 1.5 [16]

+ Ton/person 2.19 [21]

+ % 80 [20]

+ % 30 [22]

+ % 75 [21]

+ % of gross

Energy intensity − MJ/USD 4 [17]

persons

persons

Population density + People/km2 4236.1 [19]

+ per 100

inhabitants

+ buses/million persons

Competitiveness GDP per capita + \$/capita 25,616 [15]

Energy Carbon productivity + USD/ton 8244 [17]

Rail length per capita + km/million

Cars per capita − Private cars /

**Benchmark value**

**Source**

60 [16]

694 [17]

40 [17]

0.39 [17]

70 [16]

**10**

A multi-criteria evaluation model has been proposed by modifying the frame-

*xi* − *xb*

*xb* − *xi*

*xb* (1)

*xb* (2)

The equation of data normalization is set out in Eqs. (1) and (2).

work of Azizalrahman and Hasyimi [23].

*Smart city indicators and benchmarks.*

*yi* = \_\_\_\_\_

*yi* = \_\_\_\_\_

where *yi* is normalized data of assessed object on *i* indicator, *xi* is original value of the object on *i*th indicator, *xb* is benchmark value of *i*th indicator. While Eq. (1) is used for indicators with positive effects, Eq. (2) is used for indicators with negative effects. This calculation will produce the score from minimum (−1) to maximum 1 (**Table 2**).

For better performance presentation, the standardization by score conversion to 0–100 could be seen in Eq. (3).

$$S\_c = \mathbf{50} \text{ (}\mathcal{Y}\_i + \mathbf{1}\text{)}\tag{3}$$

Where *Sc* denotes the average score per category. *ST* defines the average total score as shown in Eq. (4).

$$\mathbf{S}\_T = \left(\bigoplus\_{c=1}^{\#} \mathbf{S}\_c\right) / \mathbf{6} \tag{4}$$

To obtain an average score *ST*, an equal weight is assigned to 6 categories, the result of which features a smart city scale 0–100, from: unsustainable (0–9); high carbon (10–29); neutral (30–49); low carbon (50–69); smart (70–89) and sustainable (90–100) as illustrated in **Figure 9**.


#### **Table 2.**

*Proposed multi-criteria evaluation model for smart city.*

*Smart city pathway to sustainability.*

#### **5. Smart city model and testing**

The proposed model is tested on four cities: Vienna, London, New York, and Tokyo, the result of which can be seen in **Table 3**. The pilot cities are selected based on the good performance in technology sector based on IESE Cities in Motion Index 2018.

From the figure above, we can see that from four pilot cities, Vienna, London and New York are categorized as smart city. On the other side, Tokyo is low carbon city. The above scores were transformed into smart city metrics (**Figure 10**).

Smart city metrics help us summarize a detailed analysis for city's performance by sector. Through this presentation, the strength and weakness of each sector can be easily identified and promoted to achieve the desired targets. Vienna, a global tourism destination, has a very good performance in transportation and city management. Vienna has become a city of high mobility systems such as smart buses, smart ride, smart sharing, smart public transport, and eMorail to mention but a few. Moreover, Vienna has a peaceful balance between the city and green areas which account for half of the city's total area [24]. Therefore, the city is a leading smart city.

London and New York are examples of global cities with multiple central functions and populous agglomerations. Both have a strong performance in urban competitiveness and management. As centres of global trade and economy, London and New York have focused on, amongst other things, technology, human resource development, quality of urban living, and waste management.

London proved how smart the city could be by establishing London Datastore and innovation in transportation known as Heathrow pods; building up intelligent road network; facilitating trade with digital money; and making use of new technology in reusing waste heat from underground chambers and sub-ways. London also executed the innovative program named as "Innovate18" which attempted to rejuvenate the old railway network [25].

By the same token, New York attempted to be a smart city by canvassing the concept of equitable city—a city where anyone and everyone has access to facilities

**13**

**Figure 10.** *Smart city metrics.*

justly. Being the economic hub of the world, the city is continuously engaged in delivering smart innovations. Current initiatives include reduction of greenhouse gases, fair management of water and energy, smart protection of public health increasing mortality rate and tech-based plans to make the city safer. Further, New York aims to set up strategies and policies to successfully actualise the con-

nected devices and internet of things (IoT) [26].

*Towards a Generic Framework for Smart Cities DOI: http://dx.doi.org/10.5772/intechopen.85820*

*Result of smart city model on the pilot cities.*

**Table 3.**

**Vienna London New York Tokyo**

Competitiveness 68 78 78 66 Energy 83 68 62 68 Transportation 83 84 79 75 Urban living 58 60 67 63 Management 62 66 60 63 Waste 69 73 72 70 Average score 71 71 70 68 Category Smart city Smart city Smart city Low carbon

#### *Towards a Generic Framework for Smart Cities DOI: http://dx.doi.org/10.5772/intechopen.85820*


**Table 3.**

*Smart Urban Development*

**5. Smart city model and testing**

*Smart city pathway to sustainability.*

**Figure 9.**

The proposed model is tested on four cities: Vienna, London, New York, and Tokyo, the result of which can be seen in **Table 3**. The pilot cities are selected based on the good performance in technology sector based on IESE Cities in Motion Index 2018. From the figure above, we can see that from four pilot cities, Vienna, London and New York are categorized as smart city. On the other side, Tokyo is low carbon city. The above scores were transformed into smart city metrics (**Figure 10**).

Smart city metrics help us summarize a detailed analysis for city's performance by sector. Through this presentation, the strength and weakness of each sector can be easily identified and promoted to achieve the desired targets. Vienna, a global tourism destination, has a very good performance in transportation and city management. Vienna has become a city of high mobility systems such as smart buses, smart ride, smart sharing, smart public transport, and eMorail to mention but a few. Moreover, Vienna has a peaceful balance between the city and green areas which account for half of the city's total area [24]. Therefore, the city is a leading smart city. London and New York are examples of global cities with multiple central functions and populous agglomerations. Both have a strong performance in urban competitiveness and management. As centres of global trade and economy, London and New York have focused on, amongst other things, technology, human resource

London proved how smart the city could be by establishing London Datastore and innovation in transportation known as Heathrow pods; building up intelligent road network; facilitating trade with digital money; and making use of new technology in reusing waste heat from underground chambers and sub-ways. London also executed the innovative program named as "Innovate18" which attempted to

By the same token, New York attempted to be a smart city by canvassing the concept of equitable city—a city where anyone and everyone has access to facilities

development, quality of urban living, and waste management.

rejuvenate the old railway network [25].

**12**

*Result of smart city model on the pilot cities.*

**Figure 10.** *Smart city metrics.*

justly. Being the economic hub of the world, the city is continuously engaged in delivering smart innovations. Current initiatives include reduction of greenhouse gases, fair management of water and energy, smart protection of public health increasing mortality rate and tech-based plans to make the city safer. Further, New York aims to set up strategies and policies to successfully actualise the connected devices and internet of things (IoT) [26].

#### *Smart Urban Development*

Tokyo on the other hand, is categorized as a low carbon city and is being transformed to a smart city. In the last few years, Tokyo has unveiled a chain of environment friendly initiatives which include: solid waste reduction through technology, encouragement of large-scale recycling plants and rain water harvesting, rooftop planting of trees and herbs which helps in absorbing carbon dioxide, adoption of energy efficient photovoltaic solar panels, and launch of Tokyo Super Eco Town [27].

### **Author details**

Hossny Azizalrahman\* and Valid Hasyimi King Abdulaziz University, Jeddah, Saudi Arabia

\*Address all correspondence to: hazizalrahman@kau.edu.sa

© 2019 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

**15**

*Towards a Generic Framework for Smart Cities DOI: http://dx.doi.org/10.5772/intechopen.85820*

[1] Basiri M, Azim AZ, Farrokhi M. Smart city solution for sustainable urban development. European Journal of Sustainable Development. [12] Eden Strategy Institute. Smart city governments. Singapore; 2018:12-18

[13] Borsekova K, Vanova A, Vitalisova K. The power of communities in smart urban development. Procedia-Social and Behavioral Sciences. 2016;**223**:51-57

[14] Tan S, Yang J, Yan J. Development of the low-Carbon city indicator (LCCI) framework. Energy Procedia.

Classifications [Online]. 2013. Available from: www.worldbank.org/news/newcountry-classifications [Accessed: 08

[16] United Nations. United Nations Data [Online]. 2018. Available from: www. data.un.org [Accessed: 02 March 2019]

[18] Wien International. Environmental city Vienna—50% green space [Online]. 2015. Available from: https://www. wieninternational.at/en/content/ environmental-city-vienna-50-greenspace-en [Accessed: 16 Aug 2015]

[20] World Bank. What a Waste a Global Review of Solid Waste Management.

[21] Zhou N, He G, Williams C, Fridley D. ELITE cities: A low-carbon eco-city evaluation tool for China. Ecological

Indicators. 2015;**48**:448-456

[19] MERCER. Quality of living rangkings [Online]. 2015. Available from: https://www.imercer.com/ content/quality-of-living.aspx [Accessed: 11 Augest 2015]

Washington: 2012

[17] Siemens. The green city index a summary of the green city index research series [Online]. 2015. Available from: http://www.siemens.com/press/pool/de/ events/2012/corporate/2012-06-rio20/gcireport-e.pdf [Accessed: 13 Augest 2015]

2015;**75**(Lcci):2516-2522

Augest 2015]

[15] World Bank. New Country

[2] Urban Land Institute. Supporting Smart Urban Development: Successful Investing in Density. London; 2018

[3] Roll G, Carriero D. United smart cities: Smart urban solutions for transition and developing countries.

[4] McLaren D, Agyeman J. Sharing Cities: A Case for Truly Smart and Sustainable Cities. Cambridge: MIT

[5] Musa S. Smart City Roadmap. San Francisco: Academia. Edu.; 2016

[6] Giffinger R, Fertner C, Kramar H, Kalasek R, Pichler-Milanović N, Meijers E. Smart cities Ranking of European medium-sized cities. Vienna; 2007

[7] Azizalrahman H, Hasyimi V. A model for urban sector drivers of carbon emissions. Sustainable Cities and Society 2019. October 2018;**44**:46-55

[8] Berrone P, Ricart JE, Carrasco C, Figueras AID. IESE Cities in Motion

[9] Elias S, Krogstie J. Smart sustainable cities of the future: An extensive interdisciplinary literature review. Sustainable Cities and Society.

[10] Giffinger R, Gudrun H. Smart cities ranking: An effective instrument for the positioning of the cities. Architecture City, Environment 2010. February

[11] Caragliu A, Del Bo C, Nijkamp P. Smart Cities in Europe. Journal of Urban

Technology. 2011;**18**(2):65-82

Index 2018. Barcelona; 2018

2017;**31**:183-212

2010;**12**:7-25

2017;**6**(1):71-84

**References**

Vienna; 2015

Press; 2015

*Towards a Generic Framework for Smart Cities DOI: http://dx.doi.org/10.5772/intechopen.85820*

#### **References**

*Smart Urban Development*

**14**

**Author details**

provided the original work is properly cited.

Hossny Azizalrahman\* and Valid Hasyimi King Abdulaziz University, Jeddah, Saudi Arabia

\*Address all correspondence to: hazizalrahman@kau.edu.sa

© 2019 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium,

Tokyo on the other hand, is categorized as a low carbon city and is being transformed to a smart city. In the last few years, Tokyo has unveiled a chain of environment friendly initiatives which include: solid waste reduction through technology, encouragement of large-scale recycling plants and rain water harvesting, rooftop planting of trees and herbs which helps in absorbing carbon dioxide, adoption of energy efficient photovoltaic solar panels, and launch of Tokyo Super Eco Town [27].

[1] Basiri M, Azim AZ, Farrokhi M. Smart city solution for sustainable urban development. European Journal of Sustainable Development. 2017;**6**(1):71-84

[2] Urban Land Institute. Supporting Smart Urban Development: Successful Investing in Density. London; 2018

[3] Roll G, Carriero D. United smart cities: Smart urban solutions for transition and developing countries. Vienna; 2015

[4] McLaren D, Agyeman J. Sharing Cities: A Case for Truly Smart and Sustainable Cities. Cambridge: MIT Press; 2015

[5] Musa S. Smart City Roadmap. San Francisco: Academia. Edu.; 2016

[6] Giffinger R, Fertner C, Kramar H, Kalasek R, Pichler-Milanović N, Meijers E. Smart cities Ranking of European medium-sized cities. Vienna; 2007

[7] Azizalrahman H, Hasyimi V. A model for urban sector drivers of carbon emissions. Sustainable Cities and Society 2019. October 2018;**44**:46-55

[8] Berrone P, Ricart JE, Carrasco C, Figueras AID. IESE Cities in Motion Index 2018. Barcelona; 2018

[9] Elias S, Krogstie J. Smart sustainable cities of the future: An extensive interdisciplinary literature review. Sustainable Cities and Society. 2017;**31**:183-212

[10] Giffinger R, Gudrun H. Smart cities ranking: An effective instrument for the positioning of the cities. Architecture City, Environment 2010. February 2010;**12**:7-25

[11] Caragliu A, Del Bo C, Nijkamp P. Smart Cities in Europe. Journal of Urban Technology. 2011;**18**(2):65-82

[12] Eden Strategy Institute. Smart city governments. Singapore; 2018:12-18

[13] Borsekova K, Vanova A, Vitalisova K. The power of communities in smart urban development. Procedia-Social and Behavioral Sciences. 2016;**223**:51-57

[14] Tan S, Yang J, Yan J. Development of the low-Carbon city indicator (LCCI) framework. Energy Procedia. 2015;**75**(Lcci):2516-2522

[15] World Bank. New Country Classifications [Online]. 2013. Available from: www.worldbank.org/news/newcountry-classifications [Accessed: 08 Augest 2015]

[16] United Nations. United Nations Data [Online]. 2018. Available from: www. data.un.org [Accessed: 02 March 2019]

[17] Siemens. The green city index a summary of the green city index research series [Online]. 2015. Available from: http://www.siemens.com/press/pool/de/ events/2012/corporate/2012-06-rio20/gcireport-e.pdf [Accessed: 13 Augest 2015]

[18] Wien International. Environmental city Vienna—50% green space [Online]. 2015. Available from: https://www. wieninternational.at/en/content/ environmental-city-vienna-50-greenspace-en [Accessed: 16 Aug 2015]

[19] MERCER. Quality of living rangkings [Online]. 2015. Available from: https://www.imercer.com/ content/quality-of-living.aspx [Accessed: 11 Augest 2015]

[20] World Bank. What a Waste a Global Review of Solid Waste Management. Washington: 2012

[21] Zhou N, He G, Williams C, Fridley D. ELITE cities: A low-carbon eco-city evaluation tool for China. Ecological Indicators. 2015;**48**:448-456

[22] F. E. and E. M. A. (ADEME). Benchmarking study of waste treatment performance indicators. Final report summary [Online]. 2013. Available from: http://www.franceintheus.org/ greenfrance/spip.php?article5126 [Accessed: 12 Augest 2015]

[23] Azizalrahman H, Hasyimi V. Towards a generic multi-criteria evaluation model for low carbon cities. Sustainable Cities and Society. 2018;**39**:275-282

[24] smartcity. Vienna—The Smartest City On The Planet [Online]. 2017. Available from: https://www.smartcity. press/viennas-smart-city-initiatives/ [Accessed: 09 March 2019]

[25] smartcity. London—The Dawn Of Tech-rich Life Is Here [Online]. 2017. Available from: https://www.smartcity. press/londons-smart-city-initiatives/ [Accessed: 09 March 2019]

[26] smartcity. The Equitable City—A New Name For New York [Online]. 2017. Available from: https://www.smartcity. press/new-yorks-smart-city-initiatives/ [Accessed: 09 March 2019]

[27] smartcity. What Makes Tokyo The Greenest City Of Asia-Pacific Region [Online]. 2017. Available from: https:// www.smartcity.press/asia-pacificsgreenest-city-tokyo/ [Accessed: 09 March 2019]

**17**

**Chapter 2**

**Abstract**

municipalities' tasks.

**1. Introduction**

The Impact of Institutional and

of Local Community Budgets

*Tatjana Horvat, Nataša Gaber Sivka and Vito Bobek*

When preparing a budget, local authorities are faced with a problem of implementing all statutory tasks while maintaining a balanced budget both from a financial point of view and from the aspect of satisfying common needs and interests of citizens. All these factors are reflected in the timely adoption of a budget. Our fundamental hypothesis is that in their efforts for timely adoption of a budget, local communities face institutional and political factors. If the budget of the local community is not adopted on time, local communities, in the case of Slovenia, are financed only on a temporary basis. An example of an institutional factor is the cooperation between a mayor and a finance manager in preparation of a budget (the first factor). An example of a political factor is the clarity of informing a municipal council (the second factor) which is the decision-taking body of a local community, since both the mayor and municipal council are elected politically. To this end, we have set two hypotheses. The first hypothesis is that the first mentioned factor is an important factor for timely adoption of a local community budget. We checked it with the discriminatory analysis. The second hypothesis is that the clarity of informing a municipal council by a mayor is an important factor for the timely adoption of a local community budget. We checked it by testing the difference between the arithmetic mean for two independent samples. The sample consisted of 122 local communities out of 212 population. Based on theoretical background and research, we have drawn recommendations to local communities for timely adoption of budget which consequently allows financing and performance of

**Keywords:** local community, municipality, budget, council, finance manager

The Constitution of the Republic of Slovenia in Article 138 states that residents of Slovenia exercise local self-government in municipalities and other local communities. Article 139 further specifies that municipalities are self-governing local communities. The territory of a municipality comprises a settlement or several settlements bound together by the common needs and interests of the residents. A municipality is established by law following a referendum, by which the will of the residents in a given territory is determined. The territory of the municipality is also defined by the law. According to Article 140 of the Constitution, which defines the scope of local self-government, competencies of a municipality comprise local affairs which may

Political Factors on Timely Adoption

#### **Chapter 2**

*Smart Urban Development*

[22] F. E. and E. M. A. (ADEME). Benchmarking study of waste treatment performance indicators. Final report summary [Online]. 2013. Available from: http://www.franceintheus.org/ greenfrance/spip.php?article5126 [Accessed: 12 Augest 2015]

[23] Azizalrahman H, Hasyimi V. Towards a generic multi-criteria evaluation model for low carbon cities. Sustainable Cities and Society.

[24] smartcity. Vienna—The Smartest City On The Planet [Online]. 2017. Available from: https://www.smartcity. press/viennas-smart-city-initiatives/

[25] smartcity. London—The Dawn Of Tech-rich Life Is Here [Online]. 2017. Available from: https://www.smartcity. press/londons-smart-city-initiatives/

[26] smartcity. The Equitable City—A New Name For New York [Online]. 2017. Available from: https://www.smartcity. press/new-yorks-smart-city-initiatives/

[27] smartcity. What Makes Tokyo The Greenest City Of Asia-Pacific Region [Online]. 2017. Available from: https:// www.smartcity.press/asia-pacificsgreenest-city-tokyo/ [Accessed: 09

[Accessed: 09 March 2019]

[Accessed: 09 March 2019]

[Accessed: 09 March 2019]

March 2019]

2018;**39**:275-282

**16**

## The Impact of Institutional and Political Factors on Timely Adoption of Local Community Budgets

*Tatjana Horvat, Nataša Gaber Sivka and Vito Bobek*

#### **Abstract**

When preparing a budget, local authorities are faced with a problem of implementing all statutory tasks while maintaining a balanced budget both from a financial point of view and from the aspect of satisfying common needs and interests of citizens. All these factors are reflected in the timely adoption of a budget. Our fundamental hypothesis is that in their efforts for timely adoption of a budget, local communities face institutional and political factors. If the budget of the local community is not adopted on time, local communities, in the case of Slovenia, are financed only on a temporary basis. An example of an institutional factor is the cooperation between a mayor and a finance manager in preparation of a budget (the first factor). An example of a political factor is the clarity of informing a municipal council (the second factor) which is the decision-taking body of a local community, since both the mayor and municipal council are elected politically. To this end, we have set two hypotheses. The first hypothesis is that the first mentioned factor is an important factor for timely adoption of a local community budget. We checked it with the discriminatory analysis. The second hypothesis is that the clarity of informing a municipal council by a mayor is an important factor for the timely adoption of a local community budget. We checked it by testing the difference between the arithmetic mean for two independent samples. The sample consisted of 122 local communities out of 212 population. Based on theoretical background and research, we have drawn recommendations to local communities for timely adoption of budget which consequently allows financing and performance of municipalities' tasks.

**Keywords:** local community, municipality, budget, council, finance manager

#### **1. Introduction**

The Constitution of the Republic of Slovenia in Article 138 states that residents of Slovenia exercise local self-government in municipalities and other local communities. Article 139 further specifies that municipalities are self-governing local communities. The territory of a municipality comprises a settlement or several settlements bound together by the common needs and interests of the residents. A municipality is established by law following a referendum, by which the will of the residents in a given territory is determined. The territory of the municipality is also defined by the law. According to Article 140 of the Constitution, which defines the scope of local self-government, competencies of a municipality comprise local affairs which may

be regulated by the municipality autonomously and which affect only the residents of the municipality. By law, the state may transfer to municipalities the performance of specific duties within the state competence, if it also provides the financial resources to enable such. "In recent years, both Russian and foreign researchers have given much attention to the development of local government" [1].

Local self-government is one of the fundamental principles in the Constitution of the Republic of Slovenia, with Article 9 stating: "Local self-government in Slovenia is guaranteed" [2].

The financing of the performance of duties within the municipality competence is regulated by the Financing of Municipalities Act, which in Article 3 states that the municipality financing shall be based on the principles of local self-government, mainly on the principle of proportionality of sources of financing with the municipality tasks and on the principle of independence of municipalities in financing municipality tasks. In Article 5, the act separates the financing of tasks within the state competence from the financing of tasks that municipalities must perform as part of their competencies, defined by the relevant laws. When drawing up the local community budget, the municipalities must comply with the applicable legal framework on public finance and accounting.

For a local community to be able to perform all the tasks in a certain calendar year, it must have the funds for its own operations and be financially independent. This means that it must adopt a budget, i.e., a financial plan it would follow in that year in time. Municipalities may also borrow money for individual tasks and investments, provided they comply with the legal framework.

Budget is a yearly financial plan, adopted in advance, in which the state or local community plans its revenue and expenses for fulfilling the needs of the public, with the municipal budgets being adopted as ordinances and the state budget as a legal act sui generis [3].

Drawing up a budget is an extremely important task of central and local authorities' executive bodies. This topic is also stressed in the works of George and John [4] and Copus [5]. Initiating and drawing up the budget in individual countries are generally regulated by budget laws, which specify the rights and obligations of individual budgetary authorities [6]. Under the law, the mayor represents the municipality and proposes the municipality budget to the municipal council for adoption, so it is important for the mayor to approach budgeting with all responsibility. McIlquham-Schmidt [7] identifies strategic planning as an effective way for improving the performance. However, a closer empirical review of the literature on the topic shows a greater diversity of findings. Some studies show a positive correlation between strategic planning and performance, which includes the relationship between employees [8], while others have found no correlation between the two [9]. These authors define planning differently, with the main point being the planning of future operations in companies as well as local communities, by focusing on 1- or 2-year plans for achieving the set goals, whose content and financial value are specified in the budget.

According to Shack [10], surveys have shown that when drawing up the budget at the state level, the level of political involvement increases. Municipal council members, on the other hand, are usually less intent on getting involved in local community budget planning.

A study from Denmark has shown that while the councilors listen to the citizens' comments and suggestions, they do not necessarily forward and defend them in the further process. Many local politicians are very interested in having a dialog with citizens, as this increases their chances of getting reelected [11].

Budget is the result of a compromise between the interests of political parties and other stakeholders [3]. The weight of individual financial sources (own sources, state funding, borrowing) in a local community affects the adoption of the budget.

**19**

*The Impact of Institutional and Political Factors on Timely Adoption of Local Community…*

Institutional and political factors play a big role in the timely adoption of the

"Politicians are generally less interested in establishing performance municipality budgets than top managers, particularly chief financial officers" [12]. So, we claim that collaboration between the mayor and finance director in drawing up the budget is needed, since finance directors play the main role in preparing the municipal budget. We take collaboration between the mayor and finance director as an example of an institutional factor. Clarity in informing the municipal council is an example of a political factor, with the council as the local community's decisionmaking body and the mayor all being elected. Findings in other research have shown that "political strength have a significant effect on the level of transparency in management of public resources" [13]. Other findings stated that "most projects are developed in narrow political circles including mayors, councils, municipal

A municipal budget is adopted for a financial year that starts and ends on the same dates as the state budget financial year. The mayor must present a draft budget to the municipal council within 30 days of the state budget being presented to the National Assembly. In the year when regular local elections are held, the mayor has 60 days to present the draft budget after the council is elected. A municipal budget is adopted for a financial year that starts and ends on the same dates as the state budget financial year. If the budget is not adopted before the start of the relevant year, it is deemed as not adopted on time. In this case, the mayor makes a decision on temporary financing for a period of up to 3 months, which can be extended by

Finance directors are present at council sessions when budgets are being adopted and have insight in the clarity of information exchanged between the mayor and the municipal council. The clarity of information provided to the municipal council affects the timely adoption of the budget. Out of 24 Council of Europe countries, 8 have adopted laws regarding collaboration between the mayor and politics (represented by the municipal council) in adopting the budget, specifying the processes and deadlines for preparing drafts. In general, they stipulate that the mayor must inform the representatives of people (the municipal council selected through the public vote) about the budget's basic premises and assumptions [11]. Mouritzen and Svara [15] closely studied how the mayor and the politics affect each other, as well as how political and executive actors impacted the local legislative body (Haček,

This paper aims to examine the impact that institutional and political factors have on the timely adoption of a local community's budget, with a special focus on the adoption of budgets in 2016 in Slovenia. We will use the theoretical framework and similar research outcomes to compile recommendations for local communities on how to adopt budgets on time, which then in turn allows the local communities to finance their work and perform their tasks. If the local community's budget is not

Our main thesis is that local communities face institutional and political factors when adopting the local community's budget, which affect the timely adoption of the budget and subsequently the performance of the tasks that are carried out by the municipality, i.e., the local community. The main thesis is based on several years of experience and understanding of the issues related to adopting local community budgets. Other similar authors' empirical research has already pointed to the issues

adopted on time, only temporary financing is provided to the community.

*DOI: http://dx.doi.org/10.5772/intechopen.86950*

local community's budget in Slovenia.

CEOs and semi-public organizations" [14].

Kukovič, and Grabner) [16].

**2. The purpose and methods of work**

the council adopting a decision at the mayor's proposal.

#### *The Impact of Institutional and Political Factors on Timely Adoption of Local Community… DOI: http://dx.doi.org/10.5772/intechopen.86950*

Institutional and political factors play a big role in the timely adoption of the local community's budget in Slovenia.

"Politicians are generally less interested in establishing performance municipality budgets than top managers, particularly chief financial officers" [12]. So, we claim that collaboration between the mayor and finance director in drawing up the budget is needed, since finance directors play the main role in preparing the municipal budget. We take collaboration between the mayor and finance director as an example of an institutional factor. Clarity in informing the municipal council is an example of a political factor, with the council as the local community's decisionmaking body and the mayor all being elected. Findings in other research have shown that "political strength have a significant effect on the level of transparency in management of public resources" [13]. Other findings stated that "most projects are developed in narrow political circles including mayors, councils, municipal CEOs and semi-public organizations" [14].

A municipal budget is adopted for a financial year that starts and ends on the same dates as the state budget financial year. The mayor must present a draft budget to the municipal council within 30 days of the state budget being presented to the National Assembly. In the year when regular local elections are held, the mayor has 60 days to present the draft budget after the council is elected. A municipal budget is adopted for a financial year that starts and ends on the same dates as the state budget financial year. If the budget is not adopted before the start of the relevant year, it is deemed as not adopted on time. In this case, the mayor makes a decision on temporary financing for a period of up to 3 months, which can be extended by the council adopting a decision at the mayor's proposal.

Finance directors are present at council sessions when budgets are being adopted and have insight in the clarity of information exchanged between the mayor and the municipal council. The clarity of information provided to the municipal council affects the timely adoption of the budget. Out of 24 Council of Europe countries, 8 have adopted laws regarding collaboration between the mayor and politics (represented by the municipal council) in adopting the budget, specifying the processes and deadlines for preparing drafts. In general, they stipulate that the mayor must inform the representatives of people (the municipal council selected through the public vote) about the budget's basic premises and assumptions [11]. Mouritzen and Svara [15] closely studied how the mayor and the politics affect each other, as well as how political and executive actors impacted the local legislative body (Haček, Kukovič, and Grabner) [16].

#### **2. The purpose and methods of work**

This paper aims to examine the impact that institutional and political factors have on the timely adoption of a local community's budget, with a special focus on the adoption of budgets in 2016 in Slovenia. We will use the theoretical framework and similar research outcomes to compile recommendations for local communities on how to adopt budgets on time, which then in turn allows the local communities to finance their work and perform their tasks. If the local community's budget is not adopted on time, only temporary financing is provided to the community.

Our main thesis is that local communities face institutional and political factors when adopting the local community's budget, which affect the timely adoption of the budget and subsequently the performance of the tasks that are carried out by the municipality, i.e., the local community. The main thesis is based on several years of experience and understanding of the issues related to adopting local community budgets. Other similar authors' empirical research has already pointed to the issues

*Smart Urban Development*

Slovenia is guaranteed" [2].

legal act sui generis [3].

community budget planning.

framework on public finance and accounting.

ments, provided they comply with the legal framework.

be regulated by the municipality autonomously and which affect only the residents of the municipality. By law, the state may transfer to municipalities the performance of specific duties within the state competence, if it also provides the financial resources to enable such. "In recent years, both Russian and foreign researchers have

Local self-government is one of the fundamental principles in the Constitution

The financing of the performance of duties within the municipality competence is regulated by the Financing of Municipalities Act, which in Article 3 states that the municipality financing shall be based on the principles of local self-government, mainly on the principle of proportionality of sources of financing with the municipality tasks and on the principle of independence of municipalities in financing municipality tasks. In Article 5, the act separates the financing of tasks within the state competence from the financing of tasks that municipalities must perform as part of their competencies, defined by the relevant laws. When drawing up the local community budget, the municipalities must comply with the applicable legal

For a local community to be able to perform all the tasks in a certain calendar year, it must have the funds for its own operations and be financially independent. This means that it must adopt a budget, i.e., a financial plan it would follow in that year in time. Municipalities may also borrow money for individual tasks and invest-

Budget is a yearly financial plan, adopted in advance, in which the state or local community plans its revenue and expenses for fulfilling the needs of the public, with the municipal budgets being adopted as ordinances and the state budget as a

Drawing up a budget is an extremely important task of central and local authorities' executive bodies. This topic is also stressed in the works of George and John [4] and Copus [5]. Initiating and drawing up the budget in individual countries are generally regulated by budget laws, which specify the rights and obligations of individual budgetary authorities [6]. Under the law, the mayor represents the municipality and proposes the municipality budget to the municipal council for adoption, so it is important for the mayor to approach budgeting with all responsibility. McIlquham-Schmidt [7] identifies strategic planning as an effective way for improving the performance. However, a closer empirical review of the literature on the topic shows a greater diversity of findings. Some studies show a positive correlation between strategic planning and performance, which includes the relationship between employees [8], while others have found no correlation between the two [9]. These authors define planning differently, with the main point being the planning of future operations in companies as well as local communities, by focusing on 1- or 2-year plans for achieving the set goals, whose content and financial value are specified in the budget.

According to Shack [10], surveys have shown that when drawing up the budget at the state level, the level of political involvement increases. Municipal council members, on the other hand, are usually less intent on getting involved in local

A study from Denmark has shown that while the councilors listen to the citizens' comments and suggestions, they do not necessarily forward and defend them in the further process. Many local politicians are very interested in having a dialog with

Budget is the result of a compromise between the interests of political parties and other stakeholders [3]. The weight of individual financial sources (own sources, state funding, borrowing) in a local community affects the adoption of the budget.

citizens, as this increases their chances of getting reelected [11].

of the Republic of Slovenia, with Article 9 stating: "Local self-government in

given much attention to the development of local government" [1].

**18**

#### *Smart Urban Development*

related to local budgets. As we did not find comparable research in the literature to ours, we fill the research gap both empirically and theoretically.

We will check the selected factors, which we believe affect the budget adoption, based on the data collected in our survey sent out to finance directors in 212 municipalities, i.e., local communities in Slovenia. Different authors have already empirically proven that some of them affect the adoption of the budget. We will test the following hypothesis:

Hypothesis 1: Trust, openness, and daily collaboration between the mayor and finance director (institutional factor) are important factors that affect the timely adoption of the budget.

Hypothesis 2: The clarity of information the mayor presents to the council (political factor) is an important factor in the timely adoption of the local community's budget.

#### **3. Survey results and discussion: trust, openness, and daily collaboration between the mayor and finance director**

We used binary logistic regression to test hypothesis 1 that trust, openness, and daily collaboration between the mayor and finance director are important factors that affect the timely adoption of the budget. In our survey, we asked finance directors in municipalities to assess the elements of their collaboration with the mayor from the aspects of trust, openness, and daily collaboration and their impact on the adoption of the local community's budget. They rated the elements on a 5-point Likert scale, with 1 meaning inadequate and 5 excellent.

We first analyzed their responses on trust, openness, and daily collaboration between the mayor and finance director using the Mann–Whitney U test. We compared the ratings for trust, openness, and daily collaboration between the mayor and finance director in local communities where the budget was adopted on time and in those where it was not.

We further assessed the impact that the quality of communication between the finance director and mayor had on the timely adoption of the budget using binary logistic regression.

Based on Mann–Whitney U test (**Table 1**), we have concluded that all three examined elements have a statistically significant effect on the timely adoption of the budget. With the risk below 0.1%, we can confirm that all three elements linked to the quality of communication have a statistically significant effect, with the score for trust, openness, and daily collaboration higher in municipalities that adopted their budgets on time.

Daily collaboration between the mayor and finance director has a statistically significant effect on the timely adoption of the budget (U = 866.000; p = 0.000). As a result, we accept hypothesis 1 that trust, openness, and daily collaboration between the mayor and finance director are important factors that affect the timely adoption of the budget.

In municipalities where the budget was not adopted on time, the score for trust, openness, and daily collaboration between the mayor and finance director was lower. The average score for trust between the mayor and finance director in local communities where the budget was not adopted on time was 3.41 ± 0.923 (Me = 4). The average score for trust between the mayor and finance director in local communities where the budget was adopted on time was 4.37 ± 0.893 (Me = 5). The average score for openness between the mayor and finance director in local communities where the budget was not adopted on time was 3.13 ± 0.795 (Me = 3). The average score for openness between the mayor and finance director in local

**21**

appropriate.

3.78 ± 1.158 (Me = 4).

*The Impact of Institutional and Political Factors on Timely Adoption of Local Community…*

Total 122

Total 122

Total 122

p N

p N

p N

Trust Correlation coefficient

Openness Correlation coefficient

Daily collaboration Correlation coefficient

*\*\*The correlation is statistically significant at the 0.01 level (2-reps).*

*Correlation between the scores for trust, openness, and daily collaboration.*

**N Average range**

Trust Yes 78 74.09 5779 734.00 <0.001 No 44 39.18 1724

Openness Yes 78 74.74 5830 683.00 <0.001 No 44 38.02 1673

Daily collaboration Yes 78 72.4 5647 866.00 <0.001 No 44 42.18 1856

*The impact of trust, openness, and daily collaboration between the mayor and finance director on the timely* 

1.000 . 122

0.818\*\* 0.000 122

0.617\*\* 0.000 122

**Sum of ranges**

**Mann-Whitney** *U* **test**

**Trust Openness Daily collaboration**

0.617\*\* 0.000 122

0.722\*\* 0.000 122

1.000 . 122

0.818 0.000 122

1.000 . 122

0.722\*\* 0.000 122

**p**

communities where the budget was adopted on time was 4.18 ± 0.977 (Me = 4). The average score for daily collaboration between the mayor and finance director in local communities where the budget was not adopted on time was 2.77 ± 1.008 (Me = 3). The average score for daily collaboration between the mayor and finance director in local communities where the budget was adopted on time was

number of planned and announced budgets adopted on time (χ<sup>2</sup>

p < 0.014). We can therefore deduct that the constructed model was not

We first wanted to continue by conducting a binary logistic regression to assess the effect that trust, openness, and daily collaboration between the mayor and finance director have on the probability that the budget would be adopted on time. When checking for multicollinearity, we observed a moderate to strong correlation between all three input variables, which should be mutually independent (**Table 2**). Multicollinearity in a binary logistic regression could result in biased assessments and overblown standard errors. We have tested the appropriateness of the constructed binary logistic regression model, which included all three scores for communication as independent variables, with the Hosmer-Lemeshow test (**Table 3**), which revealed a statistically significant difference between the

(7) = 17.595,

*DOI: http://dx.doi.org/10.5772/intechopen.86950*

**Was your 2014 budget adopted before 1 January 2014?**

**Table 1.**

**Table 2.**

*adoption of the budget.*

*The Impact of Institutional and Political Factors on Timely Adoption of Local Community… DOI: http://dx.doi.org/10.5772/intechopen.86950*


#### **Table 1.**

*Smart Urban Development*

the following hypothesis:

adoption of the budget.

and in those where it was not.

logistic regression.

their budgets on time.

adoption of the budget.

nity's budget.

related to local budgets. As we did not find comparable research in the literature to

We will check the selected factors, which we believe affect the budget adoption, based on the data collected in our survey sent out to finance directors in 212 municipalities, i.e., local communities in Slovenia. Different authors have already empirically proven that some of them affect the adoption of the budget. We will test

Hypothesis 1: Trust, openness, and daily collaboration between the mayor and finance director (institutional factor) are important factors that affect the timely

Hypothesis 2: The clarity of information the mayor presents to the council (political factor) is an important factor in the timely adoption of the local commu-

**3. Survey results and discussion: trust, openness, and daily collaboration** 

We used binary logistic regression to test hypothesis 1 that trust, openness, and daily collaboration between the mayor and finance director are important factors that affect the timely adoption of the budget. In our survey, we asked finance directors in municipalities to assess the elements of their collaboration with the mayor from the aspects of trust, openness, and daily collaboration and their impact on the adoption of the local community's budget. They rated the elements on a 5-point

We first analyzed their responses on trust, openness, and daily collaboration between the mayor and finance director using the Mann–Whitney U test. We compared the ratings for trust, openness, and daily collaboration between the mayor and finance director in local communities where the budget was adopted on time

We further assessed the impact that the quality of communication between the finance director and mayor had on the timely adoption of the budget using binary

Based on Mann–Whitney U test (**Table 1**), we have concluded that all three examined elements have a statistically significant effect on the timely adoption of the budget. With the risk below 0.1%, we can confirm that all three elements linked to the quality of communication have a statistically significant effect, with the score for trust, openness, and daily collaboration higher in municipalities that adopted

Daily collaboration between the mayor and finance director has a statistically significant effect on the timely adoption of the budget (U = 866.000; p = 0.000). As a result, we accept hypothesis 1 that trust, openness, and daily collaboration between the mayor and finance director are important factors that affect the timely

In municipalities where the budget was not adopted on time, the score for trust,

openness, and daily collaboration between the mayor and finance director was lower. The average score for trust between the mayor and finance director in local communities where the budget was not adopted on time was 3.41 ± 0.923 (Me = 4).

The average score for trust between the mayor and finance director in local communities where the budget was adopted on time was 4.37 ± 0.893 (Me = 5). The average score for openness between the mayor and finance director in local communities where the budget was not adopted on time was 3.13 ± 0.795 (Me = 3). The average score for openness between the mayor and finance director in local

ours, we fill the research gap both empirically and theoretically.

**between the mayor and finance director**

Likert scale, with 1 meaning inadequate and 5 excellent.

**20**

*The impact of trust, openness, and daily collaboration between the mayor and finance director on the timely adoption of the budget.*


#### **Table 2.**

*Correlation between the scores for trust, openness, and daily collaboration.*

communities where the budget was adopted on time was 4.18 ± 0.977 (Me = 4). The average score for daily collaboration between the mayor and finance director in local communities where the budget was not adopted on time was 2.77 ± 1.008 (Me = 3). The average score for daily collaboration between the mayor and finance director in local communities where the budget was adopted on time was 3.78 ± 1.158 (Me = 4).

We first wanted to continue by conducting a binary logistic regression to assess the effect that trust, openness, and daily collaboration between the mayor and finance director have on the probability that the budget would be adopted on time. When checking for multicollinearity, we observed a moderate to strong correlation between all three input variables, which should be mutually independent (**Table 2**). Multicollinearity in a binary logistic regression could result in biased assessments and overblown standard errors. We have tested the appropriateness of the constructed binary logistic regression model, which included all three scores for communication as independent variables, with the Hosmer-Lemeshow test (**Table 3**), which revealed a statistically significant difference between the number of planned and announced budgets adopted on time (χ<sup>2</sup> (7) = 17.595, p < 0.014). We can therefore deduct that the constructed model was not appropriate.


*Belief ratio test: χ 2 = 125.911, df = 3, p < 0.001. Hosmer-Lemeshow test: χ 2 = 17.595, df = 7, p < 0.014.*

*Nagelkerke R2 = 0.33.*

#### **Table 3.**

*Results of binary logistic regression forecasting the timeliness of adopting the budget based on trust, openness, and collaboration.*


#### **Table 4.**

*Results of binary logistic regression forecasting the timeliness of adopting the budget based on trust.*


#### **Table 5.**

*Contingency table (independent variable: trust).*

Having determined that using a model with all three scores for communication quality was not appropriate, we conducted separate binary logistic regressions with separate variables.

Trust has a statistically significant effect on the timely adoption of the budget. Based on the Hosmer-Lemeshow test (χ<sup>2</sup> (2) = 5.921, p = 0.052), we have concluded that this was an appropriate model (**Table 4**). The model explains the 29% (Nagelkerke R2 ) variance in the timely adoption of the budget and has correctly classified 72.1% of the examples (**Table 5**), while trust is in direct proportion to the probability of the budget being adopted on time.

Openness has a statistically significant effect on the timely adoption of the budget. Based on the Hosmer-Lemeshow test (χ<sup>2</sup> (2) = 11.12, p = 0.004), we have concluded that this was not an appropriate model (**Table 6**).

**23**

of the budget.

*The Impact of Institutional and Political Factors on Timely Adoption of Local Community…*

*Results of binary logistic regression forecasting the timeliness of adopting the budget based on openness.*

Collaboration .774 .187 .000 2.169 1.504 3.129

*Results of binary logistic regression forecasting the timeliness of adopting the budget based on collaboration.*

Step 1 Timely adoption of the budget No 15 29 34.1

**Actual value Forecast value**

Openness 1.173 .250 .000 3.230 1.978 5.276

**p Odds ratio Exp(B)**

**p Odds ratio Exp(B)**

**Timely adoption of the budget**

**No Yes**

Yes 12 66 84.6

**95% confidence interval for EXP(B) Min. Min.**

**95% confidence interval for Exp(B) Min. Min.**

> **Percentage of correct**

**assessment**

**Standard error assessment**

Constant −1.981 .635 .002 .138

 *= 7.508, df = 2, p < 0.057.*

Constant −3.759 .933 .000 .023

 *= 11.12, df = 2, p < 0.004.*

Collaboration has a statistically significant effect on the timely adoption of the

Total percentage 66.4

We confirm hypothesis 1 that trust, openness, and daily collaboration between the mayor and finance director are important factors that affect the timely adoption

concluded that this was an appropriate model (**Table 7**). The model explains the 21.4% (Nagelkerke R2) variance in the timely adoption of the budget and has correctly classified 66.4% of the examples (**Table 8**). Collaboration is in direct propor-

**4. Survey results and discussion: the clarity of information the mayor** 

We tested hypothesis 2 that the clarity of information the mayor presents to the council is an important factor in the timely adoption of the local community's budget

(2) = 7.508, p = 0.057), we have

budget. Based on the Hosmer-Lemeshow test (χ<sup>2</sup>

*Contingency table (independent variable: Collaboration).*

**presents to the municipal council**

tion to the probability of the budget being adopted on time.

*DOI: http://dx.doi.org/10.5772/intechopen.86950*

**Variable Score B Standard error** 

*2*

**B**

*2*

 *= 138.812, df = 1, p < 0.001.*

 *= 128.825, df = 1, p < 0.001.*

*Belief ratio test: χ*

*Belief ratio test: χ*

*Nagelkerke R2*

**Table 7.**

**Table 8.**

*Hosmer-Lemeshow test: χ*

*Nagelkerke R2*

**Table 6.**

*Hosmer-Lemeshow test: χ*

*2*

 *= 0.305.*

**Variable Score** 

*2*

 *= 0.214.*

*The Impact of Institutional and Political Factors on Timely Adoption of Local Community… DOI: http://dx.doi.org/10.5772/intechopen.86950*


#### **Table 6.**

*Smart Urban Development*

*Belief ratio test: χ*

*and collaboration.*

*Belief ratio test: χ*

*Nagelkerke R2*

**Table 4.**

**Table 5.**

*Hosmer-Lemeshow test: χ*

*2*

 *= 0.29.*

*Nagelkerke R2*

**Table 3.**

*Hosmer-Lemeshow test: χ*

*2*

 *= 0.33.*

**Variable Score B Standard error** 

 *= 125.911, df = 3, p < 0.001.*

**Variable Score B Standard error** 

 *= 130.567, df = 1, p < 0.001.*

 *= 5.921, df = 7, p < 0.052.*

*2*

 *= 17.595, df = 7, p < 0.014.*

*2*

**assessment**

Step 1 Trust .565 .388 .145 1.760 .822 3.766

*Results of binary logistic regression forecasting the timeliness of adopting the budget based on trust, openness,* 

Step 1 Trust 1.195 .261 .000 3.305 1.981 5.512

Constant −4.503 1.087 .000 .011

**assessment**

*Results of binary logistic regression forecasting the timeliness of adopting the budget based on trust.*

**Actual value Forecast value**

Constant −4.147 1.045 .000 .016

Openness .582 .415 .160 1.790 .794 4.035 Collaboration .209 .256 .415 1.232 .746 2.037

**p Odds ratio Exp(B)**

**p Odds ratio Exp(B)**

**95% confidence interval for Exp(B) Min. Max.**

**95% confidence interval for Exp(B) Min. Min.**

> **Percentage of correct**

**22**

separate variables.

(Nagelkerke R2

Based on the Hosmer-Lemeshow test (χ<sup>2</sup>

*Contingency table (independent variable: trust).*

probability of the budget being adopted on time.

budget. Based on the Hosmer-Lemeshow test (χ<sup>2</sup>

concluded that this was not an appropriate model (**Table 6**).

Having determined that using a model with all three scores for communication quality was not appropriate, we conducted separate binary logistic regressions with

Total percentage 72.1

Step 1 Timely adoption of the budget No 21 23 47.7

Trust has a statistically significant effect on the timely adoption of the budget.

) variance in the timely adoption of the budget and has correctly

cluded that this was an appropriate model (**Table 4**). The model explains the 29%

classified 72.1% of the examples (**Table 5**), while trust is in direct proportion to the

Openness has a statistically significant effect on the timely adoption of the

(2) = 5.921, p = 0.052), we have con-

**Timely adoption of the budget**

**No Yes**

Yes 11 67 85.9

(2) = 11.12, p = 0.004), we have

*Results of binary logistic regression forecasting the timeliness of adopting the budget based on openness.*


*Belief ratio test: χ 2 = 138.812, df = 1, p < 0.001. Hosmer-Lemeshow test: χ 2 = 7.508, df = 2, p < 0.057. Nagelkerke R2 = 0.214.*

#### **Table 7.**

*Results of binary logistic regression forecasting the timeliness of adopting the budget based on collaboration.*


#### **Table 8.**

*Contingency table (independent variable: Collaboration).*

Collaboration has a statistically significant effect on the timely adoption of the budget. Based on the Hosmer-Lemeshow test (χ<sup>2</sup> (2) = 7.508, p = 0.057), we have concluded that this was an appropriate model (**Table 7**). The model explains the 21.4% (Nagelkerke R2) variance in the timely adoption of the budget and has correctly classified 66.4% of the examples (**Table 8**). Collaboration is in direct proportion to the probability of the budget being adopted on time.

We confirm hypothesis 1 that trust, openness, and daily collaboration between the mayor and finance director are important factors that affect the timely adoption of the budget.

#### **4. Survey results and discussion: the clarity of information the mayor presents to the municipal council**

We tested hypothesis 2 that the clarity of information the mayor presents to the council is an important factor in the timely adoption of the local community's budget


**Table 9.**

*The effect of the clarity of information the mayor presents to the municipal council on the timely adoption of the budget.*


#### **Table 10.**

*Mann–Whitney U for testing the effect of the clarity of information the mayor presents to the municipal council on the timely adoption of the budget.*

by testing the difference between the arithmetic mean for two independent samples. Finance directors are present at council sessions when budgets are being adopted and have insight in the clarity of information exchanged between the mayor and the municipal council. We asked finance directors to rate the clarity of information provided by the mayor to the municipal council. They rated the clarity of information on a 5-point Likert scale, with 1 meaning inadequate and 5 excellent.

We once again applied the Mann–Whitney U test to check whether the score for the clarity of information provided to the municipal council was statistically significantly higher in local communities where the budget was adopted on time than in the local communities where it was not.

The average score for clarity of information provided by the mayor to the municipal council in local communities where the budget was not adopted on time was 3.07 ± 0.789 (Me = 3). The average score for clarity of information provided by the mayor to the municipal council in local communities where the budget was adopted on time was 3.73 ± 0.976 (Me = 4) (**Table 9**).

We determined that the clarity of information the mayor presents to the municipal council has a statistically significant effect on the timely adoption of the budget (U = 1035.50; p < 0.001) (**Table 10**). The clarity of information provided by the mayor to the municipal council in local communities where the budget was not adopted on time was lower.

We subsequently accept hypothesis 2: The clarity of information the mayor presents to the council is an important factor in the timely adoption of the local community's budget.

Fifty percent of the respondents from municipalities where the budget was not adopted before 1 January 2014 rated the clarity of information with 3 or 4.

#### **5. Conclusion**

Other findings indicate that "the global financial crisis has had an impact on Local Government forcing it to be more transparent in management of public resources"

**25**

tative of citizens).

vice versa.

directors.

timely adoption of the budget.

are conducted on time.

*The Impact of Institutional and Political Factors on Timely Adoption of Local Community…*

have thus filled the research gap both empirically and theoretically.

officials have very good working relations with their managers [19].

Good collaboration between the mayor and municipal council and the clarity of information the mayor presents to the council are also important for local community's effective work. It is very important because findings indicate "city councils have the right to reject a mayor's proposed budget". At the municipality level, other similar findings indicate that political variables are those factors that play the most important role [20]. Another similar empirical research also shows that through citizen collaboration in the budget process, however, the distance between principals and agents became somewhat smaller, and therefore it is more likely that the budget will be adopted [21]. Also [22] argues that various cities show decreasing participation over the past years; their research with analysis of interviews with employees of public administration identified 12 individual barriers for low participation in the local budgeting. Among these barriers clarity of information was not presented by the mayor to municipal council (as represen-

This was upheld by the analysis which showed that the clarity of information presented to the councilors by the mayor affected their decision-making and the

Based on the analysis findings and the empirically proven impact that separate factors have on the adoption of the local community's budget, we recommend:

• The municipal administration and finance directors should ensure all activities

• The mayor should daily communicate with the municipal administration and finance directors about the activities in compiling the materials for the local community's budget, since daily communication helps grow mutual trust and

• The mayor should resolve any confusion in drawing up the budget with knowledge and experience and together with municipal administration and finance

[13]. For this, collaboration between the mayor and finance officer and between the mayor and council is necessary. Here there are summarized results of our empirical research. As we did not find exactly the same international empirical research, we will show the results of those which are partially similar in content. With our research, we

We found out that the collaboration between the mayor and finance director is an important institutional factor affecting the adoption of the budget, with mutual trust, openness, and daily collaboration as the basis for good and timely performance of tasks and preparation and adoption of the local community's budget. Other research showed that local governments, representatives, and citizens often perceive public budgeting as a difficult administrative task that should be handled by experts who have specialized knowledge, technical skills, and experience [17]; we assumed that these experts are finance directors. In our research we made a step forward and claimed that the collaboration between the mayor and finance expert in preparing the budget is necessary. Other research shows that a wise council and mayor, as the first member of the council, would not want to act without receiving a kind of advice that these experts can provide [18]. Another research shows that as the first citizen of a municipal area, the mayor is entrusted with varying roles, also with financial roles where the trust and collaboration between the mayor and finance officer is important [19]. The results of empirical research also indicate that only about 50% of managers actively participate in the budget preparation process and 67% of finance

*DOI: http://dx.doi.org/10.5772/intechopen.86950*

#### *The Impact of Institutional and Political Factors on Timely Adoption of Local Community… DOI: http://dx.doi.org/10.5772/intechopen.86950*

[13]. For this, collaboration between the mayor and finance officer and between the mayor and council is necessary. Here there are summarized results of our empirical research. As we did not find exactly the same international empirical research, we will show the results of those which are partially similar in content. With our research, we have thus filled the research gap both empirically and theoretically.

We found out that the collaboration between the mayor and finance director is an important institutional factor affecting the adoption of the budget, with mutual trust, openness, and daily collaboration as the basis for good and timely performance of tasks and preparation and adoption of the local community's budget. Other research showed that local governments, representatives, and citizens often perceive public budgeting as a difficult administrative task that should be handled by experts who have specialized knowledge, technical skills, and experience [17]; we assumed that these experts are finance directors. In our research we made a step forward and claimed that the collaboration between the mayor and finance expert in preparing the budget is necessary. Other research shows that a wise council and mayor, as the first member of the council, would not want to act without receiving a kind of advice that these experts can provide [18]. Another research shows that as the first citizen of a municipal area, the mayor is entrusted with varying roles, also with financial roles where the trust and collaboration between the mayor and finance officer is important [19]. The results of empirical research also indicate that only about 50% of managers actively participate in the budget preparation process and 67% of finance officials have very good working relations with their managers [19].

Good collaboration between the mayor and municipal council and the clarity of information the mayor presents to the council are also important for local community's effective work. It is very important because findings indicate "city councils have the right to reject a mayor's proposed budget". At the municipality level, other similar findings indicate that political variables are those factors that play the most important role [20]. Another similar empirical research also shows that through citizen collaboration in the budget process, however, the distance between principals and agents became somewhat smaller, and therefore it is more likely that the budget will be adopted [21]. Also [22] argues that various cities show decreasing participation over the past years; their research with analysis of interviews with employees of public administration identified 12 individual barriers for low participation in the local budgeting. Among these barriers clarity of information was not presented by the mayor to municipal council (as representative of citizens).

This was upheld by the analysis which showed that the clarity of information presented to the councilors by the mayor affected their decision-making and the timely adoption of the budget.

Based on the analysis findings and the empirically proven impact that separate factors have on the adoption of the local community's budget, we recommend:


*Smart Urban Development*

**In force**

**Timely adoption of the budget**

**Table 9.**

*the budget.*

**Table 10.**

**Rate the clarity of information the mayor presented to the municipal council**

*on the timely adoption of the budget.*

by testing the difference between the arithmetic mean for two independent samples. Finance directors are present at council sessions when budgets are being adopted and have insight in the clarity of information exchanged between the mayor and the municipal council. We asked finance directors to rate the clarity of information provided by the mayor to the municipal council. They rated the clarity of information

*Mann–Whitney U for testing the effect of the clarity of information the mayor presents to the municipal council* 

We once again applied the Mann–Whitney U test to check whether the score for the clarity of information provided to the municipal council was statistically significantly higher in local communities where the budget was adopted on time

The average score for clarity of information provided by the mayor to the municipal council in local communities where the budget was not adopted on time was 3.07 ± 0.789 (Me = 3). The average score for clarity of information provided by the mayor to the municipal council in local communities where the budget was

We determined that the clarity of information the mayor presents to the municipal council has a statistically significant effect on the timely adoption of the budget (U = 1035.50; p < 0.001) (**Table 10**). The clarity of information provided by the mayor to the municipal council in local communities where the budget was not

We subsequently accept hypothesis 2: The clarity of information the mayor presents to the council is an important factor in the timely adoption of the local

adopted before 1 January 2014 rated the clarity of information with 3 or 4.

Fifty percent of the respondents from municipalities where the budget was not

Other findings indicate that "the global financial crisis has had an impact on Local Government forcing it to be more transparent in management of public resources"

on a 5-point Likert scale, with 1 meaning inadequate and 5 excellent.

Total 122

**N Average** 

**Timely adoption of the budget**

**Missing**

**value**

Yes 78 0 3.73 4.00 .976 1 5 No 44 0 3.07 3.00 .789 2 5

*The effect of the clarity of information the mayor presents to the municipal council on the timely adoption of* 

**N Average range**

Yes 78 70.22 5477.50

**Median Standard** 

**deviation**

**Sum of ranges**

No 44 46.03 2025.50 1035.50 0.000

**Minimum Maximum**

**Mann– Whitney U** **p**

than in the local communities where it was not.

adopted on time was lower.

community's budget.

**5. Conclusion**

adopted on time was 3.73 ± 0.976 (Me = 4) (**Table 9**).

**24**


We see an opportunity for further research primarily in looking for other factors that affect the timely adoption of local community budgets, which could include the number of municipal administration employees, the way the administration is organized, the municipal council's political structure, and the mayors' political affiliation. The survey should also include mayors, municipal administration directors, municipal councilors, and the Ministry of Finance. Further research should theoretically and empirically prove that other factors also importantly affect the timely adoption of the local community budget and subsequently the quality and scope of tasks that are performed in the local community [23].

**27**

**Author details**

Tatjana Horvat1

, Nataša Gaber Sivka<sup>2</sup>

2 Municipality of Žalec, Žalec, Slovenia

provided the original work is properly cited.

1 Faculty of Management, University of Primorska, Koper, Slovenia

3 University of Applied Sciences, FH Joanneum, Graz, Austria

\*Address all correspondence to: vito.bobek@fh-joanneum.at

and Vito Bobek<sup>3</sup>

© 2019 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium,

\*

*The Impact of Institutional and Political Factors on Timely Adoption of Local Community…*

The main limit of this research is that it was focused on the finance director's perspective while not including the opinions of other stakeholders, especially the

*DOI: http://dx.doi.org/10.5772/intechopen.86950*

mayor and the municipal council.

*The Impact of Institutional and Political Factors on Timely Adoption of Local Community… DOI: http://dx.doi.org/10.5772/intechopen.86950*

The main limit of this research is that it was focused on the finance director's perspective while not including the opinions of other stakeholders, especially the mayor and the municipal council.

#### **Author details**

*Smart Urban Development*

• Timely adoption of the budget document, in which the municipal council adopts the revenue and expenditure plan for the year. The budget must be

• Drawing up a transparent, accurate, clear, and understandable budget

law, since municipalities can only do what is stipulated by the law

• Description of the local community's planned policies

• Following the principles of economical and efficient operations and looking

• Complying with the law, all the revenue and expenditure must be based on the

• The municipal administration's body in charge of the finance must, after receiving basic economic premises and assumptions for drawing up the draft state budget in accordance with Article 18 of ZJF, send instructions for budgeting to all municipality budget's direct users in time, providing the following information:

• Basic economic premises and assumptions for drawing up the state budget draft

• An estimation for the revenue and expenditure account, the financial receivables and investments account, and the budget financing account for the

• A draft financial plan proposal for every direct budget user for the following

• The method of drawing up the municipal budget and proposed financial plans

• The method of drawing up development and hiring plans, as well as procurement and construction plans of direct users, and the deadlines for submitting

• The method of drawing up the plan of selling municipal tangible assets and the

• The method of drawing up financial plans (separately for revenue and expenditure), development plans and explanations for direct users, and the deadline by which direct users must submit proposed financial plans, as well as development plans and explanations to the municipal administration body in charge of finance

We see an opportunity for further research primarily in looking for other factors that affect the timely adoption of local community budgets, which could include the number of municipal administration employees, the way the administration is organized, the municipal council's political structure, and the mayors' political affiliation. The survey should also include mayors, municipal administration directors, municipal councilors, and the Ministry of Finance. Further research should theoretically and empirically prove that other factors also importantly affect the timely adoption of the local community budget and subsequently the quality and

scope of tasks that are performed in the local community [23].

adopted before the period to which it applies:

• Being realistic in budget planning

for cost-effective solutions

following 2 years

for direct users and a schedule

deadlines for its submission

2 years

**26**

Tatjana Horvat1 , Nataša Gaber Sivka<sup>2</sup> and Vito Bobek<sup>3</sup> \*

1 Faculty of Management, University of Primorska, Koper, Slovenia

2 Municipality of Žalec, Žalec, Slovenia

3 University of Applied Sciences, FH Joanneum, Graz, Austria

\*Address all correspondence to: vito.bobek@fh-joanneum.at

© 2019 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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[10] Schack RW. Political, Institutional and Organizational Effects on the Accuracy of Local Government Revenue Estimation. Connecticut: University of Connecticut; 2000

[11] Žohar F. Participativno Upravljanje občine—Sodelovanje Pri Pripravi proračuna. Vol. 5. Zlati Kamen: Revija Za Lokalno Samoupravo; 2011. pp. 49-51

[12] Grossi G, Reichard C, Ruggiero P. Appropriateness and use of performance information in the budgeting process of municipalities: Some experiences from Germany and Italy. Public Performance & Management Review. 2016;**39**(3):581-606

[13] Tejedo-Romero F, Ferraz JF, de Araujo E. Determinants of local governments' transparency in times of crisis: Evidence from municipality-level panel data. Public Performance & Management Review. 2016;**39**(3):581-606

[14] Jørgensen O. Place and city branding in Danish municipalities with focus on political involvement and leadership. Place Branding and Public Diplomacy. 2016;**12**(1):68

[15] Mouritzen PE, Svara JH. Leadership at the Apex: Politicians and Administrators in Western Local Governments. Pittsburgh: University of Pittsburgh; 2002

[16] Haček M, Kukovič S, Grabner A. Odnosi Med Organi Oblasti v Slovenski Lokalni Samoupravi. Available from: http://druzboslovnerazprave.org/stevilka/2013/72/ [Accessed: 2.3.2016]

**29**

*The Impact of Institutional and Political Factors on Timely Adoption of Local Community…*

*DOI: http://dx.doi.org/10.5772/intechopen.86950*

[17] Švaljek S, Rašić Bakarić I, Sumpor M. Citizens and the city: The case for participatory budgeting in the city of Zagreb. Public Sector Economics. 2019;**43**(1):21-48. DOI: 10.3326/pse.43.1.4

[18] Fenn M, Siegel D. The evolving role of city managers and chief administrative officers. IMFG Papers on Municipal Finance and Governance. 2017;**31**:1-30

[19] Mahlaku BT. Chapter 1.

Mahlaku\_BT\_Chapter\_1-5\_ Bibligraphy%26Appendices.

DOI: 10.5559/di.27.4.03

10.2307/23484750

[21] Kim S, Schachter H. Citizen participation in the budget process and local government accountability: Case studies of organizational learning from the United States and South Korea. Public Performance & Management Review. 2013;(36):456-471. DOI:

[22] Zepic R, Dapp M, Krcmar H. Reasons for low participation in German participatory budgeting: A public administration perspective.

In: Proceedings of the 17th European Conference on Digital Government. 2017. Available from: https://www.researchgate.net/ publication/317571030\_Reasons\_ for\_low\_Participation\_in\_German\_ Participatory\_Budgeting\_A\_Public\_ Administration\_Perspective/download

[Accessed: 1.8.2018]

[23] Gaber Sivka N. Dejavniki Sprejetja Proračuna Lokalne Skupnosti. Koper: Faculty of Management; 2016. p. 85

Introduction: Orientation, Problem Statement, Research Method. Available from: http://dspace.nwu. ac.za/bitstream/handle/10394/13176/

pdf?sequence=2 [Accessed: 11.11.2018]

[20] Ott K, Mačkić V, Bronić M. Budget transparency of local governments: The political economy of city and municipality budgets in Croatia.

Economic Research. 2018;**27**(4):629-647.

*The Impact of Institutional and Political Factors on Timely Adoption of Local Community… DOI: http://dx.doi.org/10.5772/intechopen.86950*

[17] Švaljek S, Rašić Bakarić I, Sumpor M. Citizens and the city: The case for participatory budgeting in the city of Zagreb. Public Sector Economics. 2019;**43**(1):21-48. DOI: 10.3326/pse.43.1.4

[18] Fenn M, Siegel D. The evolving role of city managers and chief administrative officers. IMFG Papers on Municipal Finance and Governance. 2017;**31**:1-30

[19] Mahlaku BT. Chapter 1. Introduction: Orientation, Problem Statement, Research Method. Available from: http://dspace.nwu. ac.za/bitstream/handle/10394/13176/ Mahlaku\_BT\_Chapter\_1-5\_ Bibligraphy%26Appendices. pdf?sequence=2 [Accessed: 11.11.2018]

[20] Ott K, Mačkić V, Bronić M. Budget transparency of local governments: The political economy of city and municipality budgets in Croatia. Economic Research. 2018;**27**(4):629-647. DOI: 10.5559/di.27.4.03

[21] Kim S, Schachter H. Citizen participation in the budget process and local government accountability: Case studies of organizational learning from the United States and South Korea. Public Performance & Management Review. 2013;(36):456-471. DOI: 10.2307/23484750

[22] Zepic R, Dapp M, Krcmar H. Reasons for low participation in German participatory budgeting: A public administration perspective. In: Proceedings of the 17th European Conference on Digital Government. 2017. Available from: https://www.researchgate.net/ publication/317571030\_Reasons\_ for\_low\_Participation\_in\_German\_ Participatory\_Budgeting\_A\_Public\_ Administration\_Perspective/download [Accessed: 1.8.2018]

[23] Gaber Sivka N. Dejavniki Sprejetja Proračuna Lokalne Skupnosti. Koper: Faculty of Management; 2016. p. 85

**28**

2010

*Smart Urban Development*

[1] Frolova EV, Vinichenko VV,

in the management practices of local authorities: Trends and factors. International Journal of Environmental & Science Education.

[2] Setnikar Cankar S. NEXT4PA— Kreativnost in inovativnost v javni upravi. In: Setnikar Cankar S et al., editors. Kreativnost in inovativnost za javno upravo: NEXT4PA—Kreativna javna uprava. Ljubljana: Faculty of Public Administration; 2014. pp. 14-23

2016;**11**(15):7421-7430

[3] Cvikl M, Korpič Horvat E. Proračunsko Pravo: Priprava, izvrševanje in Nadzor proračunov. Vol. 373. Ljubljana: GV Založba; 2007

2012;**27**(4):346-367

2006;**21**(2):4-21

[4] George J, John S. Local government: The past, the present and the future. Public Policy and Administration.

[5] Copus C. British local government: A case for a new constitutional settlement. Public Policy and Administration.

[6] Pernek F, Kostanjevec B, Čampa M. Davčno Pravo in Javne Finance. Novo Mesto: Faculty of Business and Management Sciences; 2009. p. 133

[7] McIlquham-Schmidt A. Strategic Planning and Corporate Performance. What is the Relationship? Aarhus: School of Business at Aarhus University;

[8] Hopkins WE, Hopkins S. Strategic planning—financial performance relationships in banks: A causal examination. Strategic Management

[9] McKiernan P, Morris C. Strategic planning and financial performance

Journal. 1997;**18**(8):653-652

Kirillov AV, Rogach OV, Kabanova EE. Development of social infrastructure

in UK SMEs: Does formality matter? British Journal of Management.

[10] Schack RW. Political, Institutional and Organizational Effects on the Accuracy of Local Government Revenue Estimation. Connecticut: University of

[11] Žohar F. Participativno Upravljanje občine—Sodelovanje Pri Pripravi proračuna. Vol. 5. Zlati Kamen: Revija Za Lokalno Samoupravo; 2011.

1994;**5**(1):31-41

Connecticut; 2000

[12] Grossi G, Reichard C, Ruggiero P. Appropriateness and use of performance information in the budgeting process of municipalities: Some experiences from Germany and Italy. Public Performance & Management Review.

2016;**39**(3):581-606

2016;**39**(3):581-606

2016;**12**(1):68

Pittsburgh; 2002

[Accessed: 2.3.2016]

[13] Tejedo-Romero F, Ferraz JF, de Araujo E. Determinants of local governments' transparency in times of crisis: Evidence from municipality-level panel data. Public Performance & Management Review.

[14] Jørgensen O. Place and city branding in Danish municipalities with focus on political involvement and leadership. Place Branding and Public Diplomacy.

[15] Mouritzen PE, Svara JH. Leadership

[16] Haček M, Kukovič S, Grabner A. Odnosi Med Organi Oblasti v Slovenski Lokalni Samoupravi. Available from: http://druzboslovnerazprave.org/stevilka/2013/72/

at the Apex: Politicians and Administrators in Western Local Governments. Pittsburgh: University of

pp. 49-51

**References**

Section 2

Urban Planning and

Regeneration

31

Section 2

## Urban Planning and Regeneration

Chapter 3

Abstract

regeneration.

1. Introduction

33

of fast growth have been exposed.

for the successful urban regeneration.

Symmetrical Aspects of Urban

Korea has developed very rapidly since 1980s highlighted with Seoul olympic, and urbanization necessarily incurred. Population grew with increasing housing demands, but old towns could not provide enough land. The old town was already congested, and living conditions fell off. Therefore, new towns outside the old town were planned and built through three sequential phases. This suburbanization brought about heavy load on commuter transportation and air pollution. At the same time, improper infrastructure and amenities turned new towns into

bedtowns. To escape from bedtowns, people returned to the old town, and urban remodeling was needed to accommodate adequate living conditions. In doing so, local characteristics were lost. Urban regeneration aroused as a countermeasure to this mishap. In this study, urban regeneration reinforced with smart technologies is suggested to revive lost placeness, communal connectivity, and urban orientation.

Gentrification is another important issue to be resolved for the sustainable urbanization. This study focused on symmetrical aspects of the successful urban

Keywords: urban regeneration, symmetrical aspects, placeness, connectivity,

Urbanization has proceeded rapidly since the industrial revolution, and explosive expansion of the city brought about suburbanization to avoid high population density, traffic congestion, and contaminated environment. New towns were constructed outside the cities of industrially advanced countries. In Korea, there were three phases of constructing new towns since 1980s, and shortcomings

Because new towns functioned as bed towns, they had comprehensible problems. Therefore, people began to return to old towns, and urban remodeling was needed to improve out-of-dated infrastructure and weary environmental conditions. In doing so, local characteristics were lost, and uniform scenery became

common. Urban regeneration aroused as a countermeasure to this mishap. In this study, urban regeneration reinforced with smart technologies is suggested to revive lost placeness, communal connectivity, and urban orientation.

Gentrification is another important issue to be resolved for the sustainable urbanization in old towns. Symmetrical aspects were main topics to be dealt with

urban orientation, ecologically integrated community

Regeneration in Seoul

Mi-Sun Park, Seunghee Lee and Uk Kim

#### Chapter 3

### Symmetrical Aspects of Urban Regeneration in Seoul

Mi-Sun Park, Seunghee Lee and Uk Kim

#### Abstract

Korea has developed very rapidly since 1980s highlighted with Seoul olympic, and urbanization necessarily incurred. Population grew with increasing housing demands, but old towns could not provide enough land. The old town was already congested, and living conditions fell off. Therefore, new towns outside the old town were planned and built through three sequential phases. This suburbanization brought about heavy load on commuter transportation and air pollution. At the same time, improper infrastructure and amenities turned new towns into bedtowns. To escape from bedtowns, people returned to the old town, and urban remodeling was needed to accommodate adequate living conditions. In doing so, local characteristics were lost. Urban regeneration aroused as a countermeasure to this mishap. In this study, urban regeneration reinforced with smart technologies is suggested to revive lost placeness, communal connectivity, and urban orientation. Gentrification is another important issue to be resolved for the sustainable urbanization. This study focused on symmetrical aspects of the successful urban regeneration.

Keywords: urban regeneration, symmetrical aspects, placeness, connectivity, urban orientation, ecologically integrated community

#### 1. Introduction

Urbanization has proceeded rapidly since the industrial revolution, and explosive expansion of the city brought about suburbanization to avoid high population density, traffic congestion, and contaminated environment. New towns were constructed outside the cities of industrially advanced countries. In Korea, there were three phases of constructing new towns since 1980s, and shortcomings of fast growth have been exposed.

Because new towns functioned as bed towns, they had comprehensible problems. Therefore, people began to return to old towns, and urban remodeling was needed to improve out-of-dated infrastructure and weary environmental conditions. In doing so, local characteristics were lost, and uniform scenery became common. Urban regeneration aroused as a countermeasure to this mishap.

In this study, urban regeneration reinforced with smart technologies is suggested to revive lost placeness, communal connectivity, and urban orientation. Gentrification is another important issue to be resolved for the sustainable urbanization in old towns. Symmetrical aspects were main topics to be dealt with for the successful urban regeneration.

#### 2. Need for urban regeneration

#### 2.1 New towns

In order to meet the needs of modern urban functions which had begun with the industrial revolution, the concept of new town should have resolved the exposed problems therewith. It started as building of "new regional community" in England and executed the recovery projects worldwide after World War 2. In Korea, the new town projects were initiated in 1960s to attain both the goals of national and regional development and resolutions of urban problems in mega cities. The construction of new towns aims at stabilizing the housing market in metropolitan area and also solving dwelling problems.

towns, so to speak, and more new town plans are in discussion. Spatially,

commuters between new towns and the city.

Symmetrical Aspects of Urban Regeneration in Seoul DOI: http://dx.doi.org/10.5772/intechopen.86331

2.2 Urban remodeling vs. urban regeneration

environmental dilapidation and ecological incongruity.

integrating housing policy with socioeconomic perspectives.

3. Shortcomings of urban regeneration

historical and cultural identity.

regeneration scheme and plan.

3.1 Placelessness

35

fundamentally.

dispersed new towns have serious problems in public transition and traffic congestion. Present megalopolis traffic networks cannot handle explosive increase of

The present process of traffic network building after site development will weaken the traffic control system and ease the transportation for commuters. With the repetition of current processes without understanding the relationship between the spatial structure and traffic networks, it is almost impossible to realize the smooth and effective traffic networking. Comprehensive planning and execution of traffic networks in megalopolis regions are required to improve traffic conditions

In the last 50 years, Korean government's urban development plan has centered on the expansion of new towns and new neighborhoods because of rapid industrialization and urbanization. The result is the gravitation of population in major cities and disorganized ordination in vicinities. Therefore, the urban remodeling projects were introduced for the remedy. Unexpectedly, it dropped life conditions and lost

On the other hand, suburbanization of modern cities raised the land price of suburbs with popularity, while in the old town center, the population reduced and the physical conditions antiquated. Worn out buildings were torn down, and the old town was remodeled. This method with policy caused various urban problems from

About 10 years ago, the development of new towns advocating smart city surfaced as the nucleus of urban growth. But this trend of urban growth deepened the extremity of old and new town's circumstances. In the process of separate development of new towns, city identity is very likely to be diminished and eventually lost. Against this deformity of urban growth introduced is the urban

In result, the reduced population growth, change of industrial structures, unplanned urban expansion, and aging residential environments caused urban fall-off incrementally. Urban regeneration attempts to rejuvenate degenerating cities by enforcing regional competency, inducing new functions, and utilizing local resources economically, socially, and environmentally. Contralto urban maintenance, urban regeneration takes higher priority in reserving sustainable community

Since 1970s of new urbanism era, the connection between space and people and its concept has received growing interest. According to Relph [1], place consists of physical condition, functional behavior, and meaning, and placeness arises from the interactions between them. Schulz [2] stated place was the collection of existential objectives more than space in location, and it is due to the interactions between people and their settings. In 1981, Steele [3] announced that placeness meant individuals'specific experience upon specific environment, which was human reaction to stimulus from environmental settings. It is the interactive concept, which

By 1980s, inside Seoul, there is no more land for housing projects, and so outside the green belts, new towns were built. Five new towns under comprehensive plans accommodate offices, housings, commercial buildings, municipal boroughs, sports facilities, and parks. By 1990s, the dissemination of new housing helps stabilizing housing costs, and the extension of roads and subways improves transportation system. However, vicinity towns of smaller sizes were developed with poor plan and consequently caused serious problems due to insufficient infrastructure and coarse conditions. Besides, local employment did not match the migrating population to new towns. Thus, new towns became bed towns for metropolitan.

Twelve new towns were planned after second millennium to stabilize land supply for comfortable housing and to establish foothold for economic self-reliance. They were expected to loosen the stress of overcrowded metropolitan life and to facilitate secured dwelling. Unlike the new town projects of 1980s, these new towns faced the unpopularity for sale. It is due to the supply overflows in vicinities, insufficient financial investment for housing, and poor infrastructure conditions.

Most recent attempt for new towns targeted the area between Seoul metropolitan area and first-phase new towns (Figure 1). Korean government boosted housing projects for the economic growth, but the market responded in a different way only to raise existing housing prices. The number of empty housing units increased, and in return, social problems have been occurring in recent new towns. New town projects also have led to the speculation in real estate and raised land prices. The emphasis on housing policy without consideration of urban structure brought about social inefficiency and lost urban characteristics (placeness, connectivity, and orientation).

New towns around Seoul expand in every direction with more than 40 km radius. They are not differentiated in their functional divergence, but just bed

Figure 1. New town map and planning policy.

Symmetrical Aspects of Urban Regeneration in Seoul DOI: http://dx.doi.org/10.5772/intechopen.86331

2. Need for urban regeneration

area and also solving dwelling problems.

In order to meet the needs of modern urban functions which had begun with the industrial revolution, the concept of new town should have resolved the exposed problems therewith. It started as building of "new regional community" in England and executed the recovery projects worldwide after World War 2. In Korea, the new town projects were initiated in 1960s to attain both the goals of national and regional development and resolutions of urban problems in mega cities. The construction of new towns aims at stabilizing the housing market in metropolitan

By 1980s, inside Seoul, there is no more land for housing projects, and so outside the green belts, new towns were built. Five new towns under comprehensive plans accommodate offices, housings, commercial buildings, municipal boroughs, sports facilities, and parks. By 1990s, the dissemination of new housing helps stabilizing housing costs, and the extension of roads and subways improves transportation system. However, vicinity towns of smaller sizes were developed with poor plan and consequently caused serious problems due to insufficient infrastructure and coarse conditions. Besides, local employment did not match the migrating popula-

tion to new towns. Thus, new towns became bed towns for metropolitan.

Twelve new towns were planned after second millennium to stabilize land supply for comfortable housing and to establish foothold for economic self-reliance. They were expected to loosen the stress of overcrowded metropolitan life and to facilitate secured dwelling. Unlike the new town projects of 1980s, these new towns faced the unpopularity for sale. It is due to the supply overflows in vicinities, insufficient financial investment for housing, and poor infrastructure conditions. Most recent attempt for new towns targeted the area between Seoul metropolitan area and first-phase new towns (Figure 1). Korean government boosted housing projects for the economic growth, but the market responded in a different way only to raise existing housing prices. The number of empty housing units increased, and in return, social problems have been occurring in recent new towns. New town projects also have led to the speculation in real estate and raised land prices. The emphasis on housing policy without consideration of urban structure brought about social inefficiency and lost urban characteristics (placeness, connectivity, and

New towns around Seoul expand in every direction with more than 40 km radius. They are not differentiated in their functional divergence, but just bed

2.1 New towns

Smart Urban Development

orientation).

Figure 1.

34

New town map and planning policy.

towns, so to speak, and more new town plans are in discussion. Spatially, dispersed new towns have serious problems in public transition and traffic congestion. Present megalopolis traffic networks cannot handle explosive increase of commuters between new towns and the city.

The present process of traffic network building after site development will weaken the traffic control system and ease the transportation for commuters. With the repetition of current processes without understanding the relationship between the spatial structure and traffic networks, it is almost impossible to realize the smooth and effective traffic networking. Comprehensive planning and execution of traffic networks in megalopolis regions are required to improve traffic conditions fundamentally.

#### 2.2 Urban remodeling vs. urban regeneration

In the last 50 years, Korean government's urban development plan has centered on the expansion of new towns and new neighborhoods because of rapid industrialization and urbanization. The result is the gravitation of population in major cities and disorganized ordination in vicinities. Therefore, the urban remodeling projects were introduced for the remedy. Unexpectedly, it dropped life conditions and lost historical and cultural identity.

On the other hand, suburbanization of modern cities raised the land price of suburbs with popularity, while in the old town center, the population reduced and the physical conditions antiquated. Worn out buildings were torn down, and the old town was remodeled. This method with policy caused various urban problems from environmental dilapidation and ecological incongruity.

About 10 years ago, the development of new towns advocating smart city surfaced as the nucleus of urban growth. But this trend of urban growth deepened the extremity of old and new town's circumstances. In the process of separate development of new towns, city identity is very likely to be diminished and eventually lost. Against this deformity of urban growth introduced is the urban regeneration scheme and plan.

In result, the reduced population growth, change of industrial structures, unplanned urban expansion, and aging residential environments caused urban fall-off incrementally. Urban regeneration attempts to rejuvenate degenerating cities by enforcing regional competency, inducing new functions, and utilizing local resources economically, socially, and environmentally. Contralto urban maintenance, urban regeneration takes higher priority in reserving sustainable community integrating housing policy with socioeconomic perspectives.

#### 3. Shortcomings of urban regeneration

#### 3.1 Placelessness

Since 1970s of new urbanism era, the connection between space and people and its concept has received growing interest. According to Relph [1], place consists of physical condition, functional behavior, and meaning, and placeness arises from the interactions between them. Schulz [2] stated place was the collection of existential objectives more than space in location, and it is due to the interactions between people and their settings. In 1981, Steele [3] announced that placeness meant individuals'specific experience upon specific environment, which was human reaction to stimulus from environmental settings. It is the interactive concept, which

includes feelings, consciousness, behaviors, and their interactions inside its existence.

Place gives people the sense of belonging or connecting to that place. However, regional civic authorities in Korea for recent urban readjustment plans have ignored the unique character of neighborhood community and the continuity of time. The emphasis is mainly laid on solving functional problems due to the high population density and worsening environmental conditions since the rapid industrialization from 1970s. Therefore, urban scenery appears uniform in most urban sectors missing diversity and identities. It was named placelessness by Relph.

underdeveloped urban areas do not get satisfactory effects by the government support or market-led approaches. Most regional cities just tried to resemble Seoul, the capital city of administration, economy, and culture, in which they have lost locational characteristics and uniqueness of place. Identical urban scenery and

Now civil movements are trying to rebuild communities to resolve housing

collaboration, urban village alliance, and livelihood joint union. These communities acknowledge that it is not possible for government or market alone to resolve the conflicts in transit, housing, environment, energy, education, security, and well-being. Government does not cope with the versatile lifestyles and living demands, and the market only deals citizens as consumers and not as dwellers. Urban regeneration is getting spotlight from the perspective of organizing local communities, vitalizing local economy, and preserving historical valuables.

Gentrification refers to the phenomenon that residents or leaseholders being kicked out when the property value goes up according to the change of land use. In the course of re-urbanization, cities may confront gentrification situation. Urban development or maintenance projects reform physical space of the corresponding areas, and at the same, they change the context and placeness therewith. Reformation and reorganization revitalize the area with new functions and attractions and eventually lift real estate value of that area. It then invites developers and rich people to invest in the area, and famous stores and franchise business move in. Once underdeveloped, neighborhood with destitute artists, unrestrained bohemians, and small manual businesses turns into vital and glittering spot with visitors and shoppers. But original residents and leaseholders have to move out because of soaring rental fees, and the changed neighborhood loses its original charms and

There are three types of gentrification in Seoul. (1) Commercial leading type:

business (Figure 2). The fact that franchise business routes out small business raises negative social issue. (2) Cultural initiative type: lagging neighborhood in old town of Seoul had potential for cultural delivery since artists moved for studios with inexpensive rent (Figure 3). Ubiquitous demand for modern cultural consumption

attractive touring places draws large amounts of visitors (Figure 4). The same issue

redevelopment of commercial area replaces small businesses with franchise

commercialized the area. (3) Cultural tourism type: commercial area with

Commercial leading type 1 (photos, Korea Tourism Organization).

problems and to improve environmental conditions such as green housing

culture are brought out.

Symmetrical Aspects of Urban Regeneration in Seoul DOI: http://dx.doi.org/10.5772/intechopen.86331

3.4 Gentrification

identity.

arouses as type 1.

Figure 2.

37

#### 3.2 Disconnectedness

Urban spaces consist of both artificial elements such as buildings and bridges and natural elements such as woods and rivers not to mention people living in there. These elements have certain disposition and pattern by bilateral interactions so that they impose urban characteristics and consistent schemes. Together, they integrate urban spaces resulting in enhanced functional efficiency, environmental balance, bestowed placeness, and elevated spatial potentiality.

Undoubtedly, urban connectivity implies organic connection of these elements which covers not only the physical link between them but also the concoction of consisting elements of urban spaces. The flow path of pedestrians and cars, mixed use development, density and shape of facilities, energy efficiency, landscape, landmark and significant viewpoints, and block/section division are all critical components of the urban connectivity.

Spatial interactions instigating connectivity occur at the boundaries by which spaces are divided by the different land uses, and they include contact areas and their surroundings. Natural parks will immediately appear as direct interactions between urban spaces and represent visual connectivity. The mental connectivity of accumulated time with respective spaces is required in existing cities, especially in urban regeneration.

#### 3.3 Disruption of social community

Human activities and their domains are fundamental aspects of urban life to maintain the sustainability of cities. In precedence of environmental issue, the connectivity of neighbors is the core of urban function. Human relationship and communication compose the connectivity of diverse classes of citizens. It is an urban community where these actions are barreled.

In Korea, autogenous local community had not been formed until the rebirth of local autonomy governance, since the urbanization occurred in short period of rapid industrialization. Japanese occupation and Korean War led to the disconnection of historical tradition to urban culture, and urban community did not take root in sudden social transition. Community was formed by the authoritative government and was functioned as the mass mobilization for public intentions.

Urban community is meant to be a city itself or a number of communities that are scattered over the city. Until recent period, urban policy seems to have been governed by the market throughout the world. The counteractive issue of community building is raised quite recently. The community building starts with the protection of placeness.

In Korea, rapid urbanization dismantled rural communities, and urban communities have not been completed up to appropriate level. Lagging and

#### Symmetrical Aspects of Urban Regeneration in Seoul DOI: http://dx.doi.org/10.5772/intechopen.86331

underdeveloped urban areas do not get satisfactory effects by the government support or market-led approaches. Most regional cities just tried to resemble Seoul, the capital city of administration, economy, and culture, in which they have lost locational characteristics and uniqueness of place. Identical urban scenery and culture are brought out.

Now civil movements are trying to rebuild communities to resolve housing problems and to improve environmental conditions such as green housing collaboration, urban village alliance, and livelihood joint union. These communities acknowledge that it is not possible for government or market alone to resolve the conflicts in transit, housing, environment, energy, education, security, and well-being. Government does not cope with the versatile lifestyles and living demands, and the market only deals citizens as consumers and not as dwellers. Urban regeneration is getting spotlight from the perspective of organizing local communities, vitalizing local economy, and preserving historical valuables.

#### 3.4 Gentrification

includes feelings, consciousness, behaviors, and their interactions inside its

ing diversity and identities. It was named placelessness by Relph.

bestowed placeness, and elevated spatial potentiality.

components of the urban connectivity.

3.3 Disruption of social community

urban community where these actions are barreled.

and was functioned as the mass mobilization for public intentions.

Place gives people the sense of belonging or connecting to that place. However, regional civic authorities in Korea for recent urban readjustment plans have ignored the unique character of neighborhood community and the continuity of time. The emphasis is mainly laid on solving functional problems due to the high population density and worsening environmental conditions since the rapid industrialization from 1970s. Therefore, urban scenery appears uniform in most urban sectors miss-

Urban spaces consist of both artificial elements such as buildings and bridges and natural elements such as woods and rivers not to mention people living in there. These elements have certain disposition and pattern by bilateral interactions so that they impose urban characteristics and consistent schemes. Together, they integrate urban spaces resulting in enhanced functional efficiency, environmental balance,

Undoubtedly, urban connectivity implies organic connection of these elements which covers not only the physical link between them but also the concoction of consisting elements of urban spaces. The flow path of pedestrians and cars, mixed use development, density and shape of facilities, energy efficiency, landscape, landmark and significant viewpoints, and block/section division are all critical

Spatial interactions instigating connectivity occur at the boundaries by which spaces are divided by the different land uses, and they include contact areas and their surroundings. Natural parks will immediately appear as direct interactions between urban spaces and represent visual connectivity. The mental connectivity of accumulated time with respective spaces is required in existing cities, especially in

Human activities and their domains are fundamental aspects of urban life to maintain the sustainability of cities. In precedence of environmental issue, the connectivity of neighbors is the core of urban function. Human relationship and communication compose the connectivity of diverse classes of citizens. It is an

In Korea, autogenous local community had not been formed until the rebirth of local autonomy governance, since the urbanization occurred in short period of rapid industrialization. Japanese occupation and Korean War led to the disconnection of historical tradition to urban culture, and urban community did not take root in sudden social transition. Community was formed by the authoritative government

Urban community is meant to be a city itself or a number of communities that are scattered over the city. Until recent period, urban policy seems to have been governed by the market throughout the world. The counteractive issue of community building is raised quite recently. The community building starts with the

In Korea, rapid urbanization dismantled rural communities, and urban communities have not been completed up to appropriate level. Lagging and

existence.

3.2 Disconnectedness

Smart Urban Development

urban regeneration.

protection of placeness.

36

Gentrification refers to the phenomenon that residents or leaseholders being kicked out when the property value goes up according to the change of land use. In the course of re-urbanization, cities may confront gentrification situation. Urban development or maintenance projects reform physical space of the corresponding areas, and at the same, they change the context and placeness therewith. Reformation and reorganization revitalize the area with new functions and attractions and eventually lift real estate value of that area. It then invites developers and rich people to invest in the area, and famous stores and franchise business move in. Once underdeveloped, neighborhood with destitute artists, unrestrained bohemians, and small manual businesses turns into vital and glittering spot with visitors and shoppers. But original residents and leaseholders have to move out because of soaring rental fees, and the changed neighborhood loses its original charms and identity.

There are three types of gentrification in Seoul. (1) Commercial leading type: redevelopment of commercial area replaces small businesses with franchise business (Figure 2). The fact that franchise business routes out small business raises negative social issue. (2) Cultural initiative type: lagging neighborhood in old town of Seoul had potential for cultural delivery since artists moved for studios with inexpensive rent (Figure 3). Ubiquitous demand for modern cultural consumption commercialized the area. (3) Cultural tourism type: commercial area with attractive touring places draws large amounts of visitors (Figure 4). The same issue arouses as type 1.

Figure 2. Commercial leading type 1 (photos, Korea Tourism Organization).

Figure 3. Cultural initiative type (photos, Korea Tourism Organization).

Figure 4. Cultural initiative type (photos, Korea Tourism Organization).

#### 3.5 Smart city schemes

How does a city become smart? Smart city is not just a platform for computer users, but an integrated system merged into everyday life. Cities have thrived with the progress of industrialization, so functions and convenience are aptly emphasized. Ongoing development of smart systems looks for eminent security, comfortable service, and technological advance. It shapes cities and changes the society.

A number of international groups and adjoining cities have experimented smart city projects. They focused on the solutions for realistic and functional problems of contemporary cities. Traffic scheduling/control, intelligent CCTV's, energy efficiency, and environmental improvement are among them, and recently, smarter solutions are being seeked by use of big data, IoT, AI, and block chain technologies. A smart city is the platform of the fourth industrial revolution, which claims to change our life paradigm (Tables 1 and 2).

Now, the focus of smart city projects moves on into the human network and the connection between various classes. Three components are the key value-driven targets for future smart cities: people, environment, and technology. People's happiness is the ultimate goal of the smart city research and development in which urban space should be environmentally safe and socially connected with help of advanced technologies. To make the old town smart is a tough challenge because the infrastructure is old and urban structure is irregular. To overcome this challenge, symmetrical aspects of urban regeneration should be examined and key solutions should be developed.

Amsterdam,

39

• 5G, Sensor, Camera, Open access data,

Platform

•

Organization

collaboration)

• "Cross-silo"

• •

Network city On-offline platform,

cooperation

Table 1. Examples of application

 of smart technology (Europe).

public-private

Government,

co-create system

(Innovator's

 club)

 developer, neighbor, civic group, scholar

Data integration

 with other cities

 Data integration

Digital

connectivity

collaboration

 3.0, (Neighbor

Netherlands

Kalasatama,

• "Sohjoa"

• "MaaS", Mobility as a Service

• Whim service

• Smart Grid

• Agile Piloting

autonomous

 electric car

 Helsinki, Finland

Columbus,

• "Virtual Singapore"

system

• Smart City Challenge

• • • •

Autonomous

 driving

Mobility and connected

Medical, Travel smart app

Traffic, logistics

platform: safety

• API traffic information

• Rent public bicycle

•

• City Data Analytics Program

• •

Economic Fairness

metrics

—utilize

Symmetrical Aspects of Urban Regeneration in Seoul DOI: http://dx.doi.org/10.5772/intechopen.86331

> Borough Data Partnership

Location Information

 USA

London, UK


Table 1.

Examples of application of smart technology (Europe).

### Symmetrical Aspects of Urban Regeneration in Seoul DOI: http://dx.doi.org/10.5772/intechopen.86331

3.5 Smart city schemes

should be developed.

38

change our life paradigm (Tables 1 and 2).

Cultural initiative type (photos, Korea Tourism Organization).

Cultural initiative type (photos, Korea Tourism Organization).

society.

Figure 4.

Figure 3.

Smart Urban Development

How does a city become smart? Smart city is not just a platform for computer users, but an integrated system merged into everyday life. Cities have thrived with

A number of international groups and adjoining cities have experimented smart city projects. They focused on the solutions for realistic and functional problems of

efficiency, and environmental improvement are among them, and recently, smarter solutions are being seeked by use of big data, IoT, AI, and block chain technologies. A smart city is the platform of the fourth industrial revolution, which claims to

Now, the focus of smart city projects moves on into the human network and the connection between various classes. Three components are the key value-driven targets for future smart cities: people, environment, and technology. People's happiness is the ultimate goal of the smart city research and development in which urban space should be environmentally safe and socially connected with help of advanced technologies. To make the old town smart is a tough challenge because the infrastructure is old and urban structure is irregular. To overcome this challenge, symmetrical aspects of urban regeneration should be examined and key solutions

emphasized. Ongoing development of smart systems looks for eminent security, comfortable service, and technological advance. It shapes cities and changes the

the progress of industrialization, so functions and convenience are aptly

contemporary cities. Traffic scheduling/control, intelligent CCTV's, energy

