An Investigation on informal Economy and Commercial Tourism Impacts on Physical- Spatial Evolution of Baneh Border Region, Kurdistan, Iran; Spatial Strategic Analysis by Multi-Scale Approach

Extended abstract 1-Introduction Informal economy and its spatial consequences are such important issues in border regions of Iran. The existence of some conditions such discrimination and inequality in employment opportunities and income، lack of minimal indicators of life quality، migration and goods smuggling in border regions has prompted border residents to diversify their business according to their border position and test new ways of their livelihood in contrast with formal rules of center. These activities have profound impacts on the economic، social، cultural، physical and spatial structure of border regions that can be a source of opportunities and challenges in the course of development of border areas. 2- Theoretical bases According to the theoretical foundations in informal economy studies، The hidden economy of Bane city is an informal economy that tax evasion، failure of registering trade in national accounts، ignoring legal forms of trade، ignoring institutional financial rules، failure to report to the governmental statistical center، evade the payment of transaction costs، lack of licensing of commerce are seen in it. This study is investigating spatial consequences of informal economy in Bane border region. Tourism in Bane is a capacity and existent trade-based potential. In scientific studies، tourism has an important role in regional development that can prepare required beds and infrastructures of efflorescence and regional sustainable development by noticing to this industry especially in regions such as Bane city that is located on the edge of the country and far from the relation of development. Monetary and goods flows related to border in Bane on a one hand and border commercial tourism on the other hand have been two key and mutual factors in recent evolution of Bane that are major motivations of frontiersman’s economic activities، capital accumulation and development of border region. 3- Discussion Spite of regional development planning in Iran، these plans have been rarely had positive and stimulating regional sustainable function، especially in border regions. Regional development plans have always made investigation and reorganization of spatial evolutions and spatial development planning of border regions difficult and challenging by top-bottom look، non-reliance on native context of development and lack of adequate recognition of society on the one hand and also using traditional methods of development researches، ignoring theoretical approaches and methods of scientific knowledge on the other hand. Bane، in Kurdistan province، is one of the border regions that have been exposed to a wide trade and goods exchange. By noticing to difference between domestic currency backed by government and foreign currency، importing cheap informal goods to Bane has caused its absorption domain of commercial tourism to extent throughout the country، so that، according to the head of cultural heritage of Kurdistan province، 1438500 commercial tourism visited Bane in the first four months of 1388. It is so clear this massive population exchange for buying and selling informal imported goods can have extensive spatial and physical consequences. Examples of research were obtained through library and field studies. This study is descriptive and analytical because its mission is recognizing and conducting recent spatial and economic mobility which created due to boundary situation and providing situation of absorption of informal commercial tourism. For this aim، face to face interviews with local actors، photography، field survey and visiting border were done. Analyzing the quality of spatial consequences must be considered in macro and micro scales of region because of its expansion. In this research، the impacts and consequences of commercial tourism and border informal economy on urban and regional evolutions of Bane city are determined and analyzed such as clearing the position of Bane border region in flows of border informal commodity exchanges، extending the domain of functional impacts of Bane city on national and international levels، functional-spatial impacts of border economy and commercial tourism and its multi-level consequences in Bane region such as changing the role of city from administrative- political to services-commercial role، increase of income and turnover and high potential of capital accumulation، reflecting the impact of region’s political evolutions on trade and economic relations in the region، the process of development and efflorescence of Bane city especially in border villages and the emergence of new luxurious construction in the area due to informal trade earnings. Despite the instability of these developments، some opportunities have been provided for Baneh City development which requires correct planning and management. 4- Conclusion Recent evolutions and efflorescence of Bane due to new relations in Bane border region is considered as opportunities for sustainable development as well as threat that needs more careful planning. Instability of this efflorescence is the main challenge. The changing government policy of government and local decision making institutions concerning the border regions، fluctuations of exchange rate، getting out capital from region، lack of turnover management and more importantly، lack of defined process for how to use capital flow and spent it to create basic infrastructures of regional development are the main challenges that propel recent efflorescence of Bane border region toward instability. 5- Suggestions Due to the possibility of changing the policies of center and related local decision-making institutions and the lack of permanent border income، it cannot be seen the income of this trade as a sustainable economy. Therefore، strategic planning will be the basic requirements of the regional development of Bane city. In order to achieve to this end، by regional strategic analysis and identifying Strengths، weaknesses، opportunities and treats points and the intersection between pairs of them together، some strategies were proposed in 4 category (planning، offensive، defensive and the critical) to steer Baneh city to sustainable development. Highlights • We investigate informal economy and commercial tourism effects on spatial- physical changes of Baneh border region • We use spatial strategic analysis by multi-scale approach • We documented the research instances through face to face and video interviews with local agents، photography، field traversal and visits of border region • We recommend some strategies to steer recent trends and instability developments toward sustainable regional development.