Functional and spatial structure of cities and cities' development paths result from interactions of many social, political and economic complex factors. Natural environment conditions also play a role since they determine the possibilities, directions and forms of urban development. Contemporary knowledge about cities provides guidance on the development conditions, trends, and their effects. However, normative approach mainly indicates how to develop the urban physical space and does not provide answers to questions on why cities look and function in a particular way. In this case analysis of urban policy might be useful. Urban policy is defined as the development poilicy of the city (local scale) and poilicy regarding urban development (regional and central level). In the practice of planning and managing the development the latter should provide the framework for the activities of local governments at the local level, which are responsible for the preparation and implementation of strategies and plans for economic development. Urban policy affects all three basic dimensions of urban space: morphological, socio-demographic, and functional. These dimensions make up the functional and spatial structure of the city. The systemic changes initiated in Poland in 1989 launched new mechanisms affecting the functional and spatial structures. These mechanisms include: mechanism of adaptation to the rules of free market, mechanisms of adaptation to function in an open network environment (internationalization of development processes, metropolization, integration with the European Union), and a mechanism to adapt to new environmental requirements (low-carbon economy, sustainable development). Urban policy affects the functional and spatial structures not by specific investments but by comprehensive creation of multidimensional urban space, which accounts for its investment and settlement attractiveness. Urban policy is a territorial policy. Its formula and the range of topics depend on the policy tasks. It can be complementary and complement the sectoral policies; it can also play an integrating-coordination role, combining elements of sectoral policies. Warsaw authorities have developed methods and tools specific to the role of an integrating-coordinating urban policy. Despite of ambitious attempts to pursue an active urban policy still it is rather reactive and inconsistent. The process of economic restructuring of Warsaw can be described as „adaptive modemization” - Warsaw economy quickly adapted itself to the new conditions of the system. Among the problems related to an effective urban policy in Warsaw should be mentioned first of all the weakness of public authority vis-à-vis market mechanisms, limitation of funds (including funds from the EU - the question of own contribution, the level of indebtedness of local governments), withdrawal of public authority from some tasks (housing), no new formulas of funding investments, and weak spatial planning regulations. These problems may lead to a reduction of Warsaw's attractiveness as a place to live and invest. Forms of spatial development that do not fit functions performed cost more in terms of money, time, and quality of urban goods and services offered. The degradation of downtown and transformation of post-industrial areas into urban wastelands - these problems still are not properly addressed in the city's development plans. The existence of the creative sector and research and development activities in Warsaw does not translate into generating development incentives. Lack of consistent urban policy will be compensated by the spontaneous actions of the strongest actors in the city. The result of them is usually spatial chaos, irrational use of resources, which limits growth opportunities in the future. From the perspective of Warsaw crucial to the future of its functional and spatial structure is that transport infrastructure development is subordinated to well elaborated spatial policy and transport development plans, then there is the efficient implementation of urban renewal program (Integrated Revitalization Program), and eventually the planned development of post-industrial areas. The activities undertaken within the framework of urban renewal program and in other locations should be mainly focused on creating multi-functional areas, the location of new jobs on the right-bank of the Wisła river, and on the creation of high-quality public spaces. Such spaces are becoming increasingly important in urban development also due to their role in the transfer of technological innovations and linking together traditional and innovative sectors (i.e. cross innovations).
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