Introduction
A mega project is a large-scale investment that takes several years and involves multiple stakeholders. Several countries, such as China, employ authoritarian leadership, where a single individual controls subordinates. The leaders have absolute decision-making power and cannot be advised. There is no democracy, but rather a dictatorship that takes control and results in questionable records on human rights, civil liberties, and elections.
In this environment, investments become a problem because stakeholders fear losing finances. The unstable nature of these governments tends to deter investors, as they are hesitant to invest their assets due to the uncertainty surrounding them. The economy develops poorly without adequate financing for new businesses, resulting in losses. Authoritarian regimes pose negative and positive impacts that can affect the realization of a mega project.
Advantages
In authoritarian regimes, the government takes control of large enterprises and regulates the market. The administration has benefited China as it stands at the top of economic growth. When big projects are started, the governments take control of the largest share. In this regime, a straightforward and streamlined decision-making process enables the rapid marshaling of scarce resources and concentration (Sinkkonen, 2021).
More attention has been paid to the economic benefits of the mega projects as they promote business growth. The West-East gas pipeline is an effective plan that has significantly affected the carrying capacity of the ten cities it has been constructed across (Sinkkonen, 2021). It has resulted in increased revenue and improved social services.
Mega deals directly relate to the city’s carrying capacity, as construction is necessary to enhance urban development. Constructing and operating big businesses is essential for the maximum utilization and allocation of resources (Zheng, 2020). In China, they are built to compensate for the existing capacities of the cities.
Cities can grow if the implemented businesses are a success. Mega plans play a crucial role in achieving effective urban planning and developing the centers accordingly (Zheng, 2020). They provide the necessary infrastructures that meet the production and ecological environment needs.
Disadvantages
The expansion of mega-urban projects over the years has led to a decline in democratic decision-making and the emergence of social inequality. Impacts are often attributed to the radicalization of local entrepreneurial states and urban leadership that prioritizes economic gain over social objectives (Zheng, 2020). Land prices increase, and tenants who lack formal rental contracts get displaced.
With the significant innovations introduced by the private sector, there has been a substantial decline in public participation in their development (Weng et al., 2021). The interests of locals and the general public are often sidelined. In China, the projects are criticized due to a lack of transparency, accountability, and high economic risks (Weng et al., 2021). Authoritarian regimes are more likely to experience humanitarian and economic catastrophes due to the forceful implementation of big enterprises.
Among Asian countries, China has emerged as a hotbed for large-scale urban planning. The resultant effects of major projects like the Shanghai Expo have resulted in displacement and forced eviction, leaving many people homeless (Weng et al., 2021). It remains a significant concern as the government fails to adequately compensate the affected.
Millions are displaced to make space for the ongoing developments. The poor compensation schemes adopted by the state have resulted in major conflicts with the public concerning the relationship (Weng et al., 2021). The high pricing of properties in inner cities has made it impossible for the displaced to acquire land within urban areas (Weng et al., 2021). They are forced to relocate to rural areas with poor infrastructure and limited employment opportunities.
Conclusion
Large-scale projects require much bigger spaces to be fully implemented. In an authoritarian government, the state controls everything and can decide which land to take. There is no democracy, and the leader has the final say on economic and social development matters.
Large establishments promote urbanization, leading to the development of better infrastructure. They impact economic growth as local and national governments collect taxes. It also leads to numerous job opportunities for individuals living near the establishment, ultimately contributing to economic development.
Most projects are privatized, some are state-owned, and they are always costly to establish. Its constructions result in the displacement and evictions of the population living in the target areas. Individuals who lose their land are sometimes compensated poorly, which limits their ability to acquire land within urbanized regions.
References
Sinkkonen, E. (2021). Dynamic dictators: Improving the research agenda on autocratization and authoritarian resilience. Democratization, 28(6), 1172–1190. Web.
Weng, L., Xue, L., Sayer, J., Riggs, R. A., Langston, J. D., & Boedhihartono, A. K. (2021). Challenges faced by Chinese firms implementing the ‘belt and road initiative’: Evidence from three railway projects. Research in Globalization, 3, 1–10. Web.
Zheng, L. (2020). Research on the impact of mega-projects on carrying capacity of cities taking the first-line project of the west-east gas pipeline as an example. Journal of Management Science and Engineering, 5(3), 195–211. Web.