Greater Bay Area: a market-driven plan to enhance quality of life and development

Abstract

PurposeThe purpose of this paper is to explain the nature of the Greater Bay Area Plan and to refute various myths about the initiative. The economic vigor of the Greater Bay Area is based on agglomeration economies from the city cluster and on the access to important ports. The Plan aims at motivating policy makers at different levels to work together to create new possibilities.Design/methodology/approachThis is based on policy analysis informed by economic theory and evidence.FindingsThe Greater Bay Area Plan enhances the freedoms enjoyed by people living in any of the 11 cities in the area. Its design and the roles assigned to the different cities in the Outline Plan shows that it does not go against market forces but instead works with them. The impediments caused by the three custom areas, three currencies and different legal systems make it imperative for policy makers in the different cities and other levels of government to work together to remove or at least alleviate the impediments.Originality/valueIt dispels the myths that have prevailed since the Outline Plan was released in February 2019 and identifies how it can increase freedoms and manifest the potential of the Greater Bay Area.