Spatial Organization Theory as a Easis for Recsional Planning

A theoretical basis of regional planning can be found in the theories of location and spatial organization. The economic interdependencies which determine the organization of economic activities in space are analyzed, special consideration being given to the interplay of internal and external economies, transport costs, and the demand for land. Regional policy planning should start with what is historically given and seek to modify it—on the basis of the available knowledge about the economic interdependencies, and within the constraints set by technology, individual and social preferences, and other non-economic factors. The outcome is a compromise based on a combination of certain technological rigidities, certain spatio-economic interdependencies, and individual flexibilities of locational choice. The aim of public policy is to interfere with some of the market forces and thus to influence the bases of the free individual decisions in such a way that the achievement of social objectives is furthered. One of the measures to be taken by public policy is the equalization of marginal private and marginal social costs.