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Liveanomics: Urban liveability and economic growth is the second of two Economist Intelligence Unit reports, commissioned by Philips, which examine the issue of liveability in cities. The first report ...

Liveanomics: Urban liveability and economic growth is the second of two Economist Intelligence Unit reports, commissioned by Philips, which examine the issue of liveability in cities. The first report in the series addressed what city residents want from their cities, and how city leaders can deliver on citizens' requirements. This second report examines the role of business within cities.

Our research drew on two main initiatives. In September 2010, we conducted a survey of urban professionals around the world. In total, 575 respondents took part, representing cities in Asia (30%), North America (30%), Western Europe (30%) and the rest of the world (10%). To supplement the survey results, we conducted in-depth interviews with business and civic leaders and other experts in urban affairs. Sarah Murray was the author of the report, and David Gow contributed. Iain Scott and Chris Webber were the editors. The Economist Intelligence Unit bears sole responsibility for the content of this report. The findings and views expressed within do not necessarily reflect the views of Philips.

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    Liveanomics: Urban liveability and economic growth Liveanomics: Urban liveability and economic growth Document Transcript

    • LiveanomicsUrban liveability and economic growthA report from the Economist Intelligence Unit Commissioned by Philips
    • Liveanomics Urban liveability and economic growth Preface L iveanomics: Urban liveability and economic growth is the second of two Economist Intelligence Unit reports, commissioned by Philips, which examine the issue of liveability in cities. The first report in the series addressed what city residents want from their cities, and how city leaders can deliver on citizens’ requirements. This second report examines the role of business within cities. The Economist Intelligence Unit bears sole responsibility for the content of this report. The findings and views expressed within do not necessarily reflect the views of Philips. Our research drew on two main initiatives: l In September 2010, we conducted a survey of urban professionals around the world. In total, 575 respondents took part, representing cities in Asia (30%), North America (30%), Western Europe (30%) and the rest of the world (10%). See Who took the survey? for more details. l To supplement the survey results, we conducted in-depth interviews with business and civic leaders and other experts in urban affairs. See Interviewees for more details. Sarah Murray was the author of the report, and David Gow contributed. Iain Scott and Chris Webber were the editors. We would like to thank everyone who participated in the survey, and all the interviewees, for their time and insight. January 2011 Who took the survey? who work for a range of industries, with the majority from the financial and professional services, IT Respondents range in age, from 19-80, with most and technology, energy and natural resources, aged between 26 and 60. More than one-third have manufacturing, education and healthcare, lived in their city for more than 20 years, one-fifth publishing and media, and retail. for 10-20 years, and another one-fifth for 5-10 Please note that not all figures quoted correlate years. Three-quarters of respondents are married (of precisely with the charts provided, typically because those, 58% have children). They are professionals of rounding. © The Economist Intelligence Unit Limited 2011
    • Liveanomics Urban liveability and economic growth Interviewees l Sam Adams, mayor of Portland, Oregon (USA) l Andrew Carter, head of research, Centre for Cities (UK) l Greg Clark, city expert (UK) l Warrick Cleine, managing partner, KPMG (Vietnam) l Carol Coletta, president and chief executive of CEOs for Cities (USA) l Karl-Heinz Daehre, minister for regional development and transport, Sachsen-Anhalt (Germany) l Ryan Gravel, urban designer and senior associate, Perkins+Will (USA) l Frank Jensen, president, Eurocities and mayor, Copenhagen (Denmark) l John Kasarda, co-author of Aerotropolis: The Way We’ll Live Next and a professor at University of North Carolina’s Kenan-Flagler Business School (USA) l Stanley Litow, head of corporate citizenship and corporate affairs, IBM; and president, IBM Foundation (USA) l Teresa Lynch, senior vice-president for research, Initiative for a Competitive Inner City (USA) l Josh McManus, co-founder and creative strategist, CreateHere (USA) l Harold Miller, president, Future Strategies (USA) l T.V. Mohandas Pai, head of human resources, education and research, and board member, Infosys, Bangalore (India) l Wally Olins, chairman of Saffron Brand Consultants, London (UK) l Deanna Oppenheimer, chief executive of UK retail banking, and vice-chair of global retail banking, Barclays, London (UK) l Professor Philipp Oswalt, head of the IBA and the Bauhaus Foundation, Dessau (Germany) l Paul Romer, economist and senior fellow, Stanford Center for International Development and the Stanford Institute for Economic Policy Research, and Henry Kaufman visiting professor at the Stern School of Business, New York University (USA) l Terry Schwarz, director, Cleveland Urban Design Collaborative, Kent State University (USA) l Todd Sinai, associate professor of real estate and business and public policy at the University of Pennsylvania’s Wharton School of Business, (USA) l Fred Smith, chairman, president and chief executive officer, FedEx (USA) l Regina Sonnabend, an urban planner at the Bauhaus Foundation (Germany) l Colin Tweedy, chief executive, Arts & Business, London (UK) © The Economist Intelligence Unit Limited 2011
    • Liveanomics Urban liveability and economic growth Executive summary T here is no doubt that the lives of cities and of the businesses located in them are inextricably intertwined. But how closely linked are cities’ economic growth and their liveability? A survey of urban professionals conducted by the Economist Intelligence Unit shows that the idea of liveability has a number of different components. Jobs and cost of living, public transport and roads, safety and security and culture and nightlife all rank highly among our respondents’ list of factors contributing to a city’s attractiveness as a place to live and work. In the first report in this series, we spelled out the strategies policymakers need to adopt in order to maintain and improve liveability for citizens. Some of the key steps include providing a good public transport system, getting a bigger say in planning policy, taking a more sensitive approach to urban design and handing over more control of public services to citizens. This second report explores the relationship between business performance and liveability in cities, and highlights some of the ways in which business and policymakers are working together to make cities more liveable. Whatever the type of challenge being faced by an individual city, improving liveability can only help to strengthen its attractiveness for residents, workers and potential investors. But coming up with a realistic and effective strategy for boosting economic growth is a hugely difficult challenge, particularly when wider economic forces are working in the opposite direction. History has shown that long-term shifts in patterns of trade across the globe and the introduction of new technologies or production methods can undermine the industries upon which some cities were built. Declining cities in the former manufacturing heartlands of the north of England and in the “rust belt” of the United States provide powerful evidence of this. And, try as they might, policymakers have frequently found it agonisingly difficult to hold back the tide of change. Even in those cities where economic growth is occurring, the challenge of enabling this can be enormously complex. Often the problem is that those people already living in high growth areas resent the changes associated with it and try to block the developments and investments—in housing and transport, for example—that are needed to facilitate growth. Rather than blocking growth altogether, however, these kinds of obstructions frequently lead to congestion and affordability problems as more and more people and businesses try to cram into houses, offices and trains that were simply not designed to meet such high levels of demand. © The Economist Intelligence Unit Limited 2011
    • Liveanomics Urban liveability and economic growth It is important to look at liveability—a misunderstood and often misused term—but equally important to understand that for citizens and companies, there is a clear hierarchy of needs. What is clear from our research is that what business primarily wants from city leadership is policy that helps to stimulate job creation, followed by basic liveability factors such as good infrastructure, schools and so on. Mayors and civic leaders can occasionally be beguiled by the “softer” aspects of liveability. Opera houses, parks and other assets associated with liveability are all important components of great cities’ brands, but getting the basics right first helps cities to compete globally on a more equal footing. Among the key findings of our research are: Jobs take precedence over liveability when people are choosing where to locate Our survey shows that the main reason for urban professionals to move to a city is its jobs market and cost of living. Moreover, respondents say that their organisation’s main benefit in being located in their city is its access to talent and labour. But with workforces increasingly prepared to relocate for the best opportunities, there is a question mark over policymakers’ ability to develop local skill levels and encourage skilled workers to remain in their city. Deliver the housing needed to meet demand As we spelled out in our first report, rising house prices are often seen as a sign of a city’s economic success. One important challenge for policymakers who are looking for ways to help maintain their city’s economic growth is to make sure that there is enough housing to meet demand in economically dynamic areas. Failure to do so can result in housing affordability problems, dissuading talent from moving from low-performing to high-performing areas. This is not simply an issue for policymakers. As Todd Sinai of the University of Pennsylvania’s Wharton School of Business points out, “in a city that’s more expensive, the first thing that has to happen is that workers need to get paid more”. Open the door to foreign investment In difficult economic times, policymakers are often pressured into favouring support for local businesses over foreign companies. But such strategies are not necessarily the right way forward, according to our survey—only 15% of respondents see that as a priority for their civic leaders, as opposed to almost one-third who would prefer it if multinationals were encouraged to set up shop in their city, in order to make it more competitive for business. The presence of multinational companies in a city can raise its image elsewhere, and branding can play a big role in the business life of a city. More than one-half of respondents regard their city’s international profile and good reputation as important benefits to their organisation’s decision to locate there, and nearly three-quarters believe their city’s image helps it to attract important industries. Enlist the help of the commercial sector Respondents to our survey consider that it is the public sector that should shoulder most responsibility for services such as public transport and the maintenance of parks and schools. But the business sector already plays a key role in developing cities’ liveability, supporting culture, sporting events, healthcare © The Economist Intelligence Unit Limited 2011
    • Liveanomics Urban liveability and economic growth facilities, transport infrastructure and environmental initiatives. As civic leaders face tighter budgets they should be prepared to take the initiative in asking business for more help. The cost to the city of London’s ambitious cycle hire scheme, for example, would have been far greater without a substantial investment from Barclays, a bank. Of course, in engaging in philanthropic endeavours an organisation’s ambition may largely be to generate brand awareness. But Londoners, for their part, have shown that they are prepared to become two-wheeled advertisements for Barclays in exchange for a more convenient journey around town. Focus on the basics of urban life – transport, roads, houses, schools and safety When a city secures a major sporting event such as the Olympic Games, is it a boon for business? Urban professionals don’t think so. They think it is far more important to get the basics right by improving public transport and roads, providing better schools and improving safety. CEOs such as FedEx’s Fred Smith agree. “Ultimately, you have to have both good economics and good quality of life—they feed each other,” he says. © The Economist Intelligence Unit Limited 2011
    • Liveanomics Urban liveability and economic growth Introduction F rom the earliest times of human commerce, when trade crossroads became sites for settlements, the world’s greatest cities have arisen and flourished around commerce. Florence had its Medici bankers; Flanders its wool merchants; Manchester its cotton mills; and Detroit its carmakers. Wherever you look around the world, business has often played a pivotal role in the story of urban growth and change. Business continues to play a central part in the development of the world’s cities, but the economic role played by different cities has evolved over time as the forces of globalisation and technological change have reshaped patterns of trade and shifted the focus of business growth. Some cities, including Manchester and Detroit, have declined as the industries on which they were built have shed jobs. Others, such as Bangalore in India and Beijing in China, have grown rapidly as economic growth in developing countries has surged. Against the backdrop of intense competition and long-term change, urban policymakers must find ways to maximise their city’s economic growth. In attempting to do so, many have become interested in the relationship between economic growth and liveability. The thinking is that businesses and highly-skilled workers, particularly those in mature industrialised economies, are increasingly basing their location decisions on the quality of life on offer in a city as well as the strength of its economy. The basic idea, therefore, is that if city leaders can improve the liveability of their city, they can attract the businesses and skilled workers needed to grow their economies. This argument seems straightforward enough, but how strong is the relationship between liveability and economic growth in cities? Can a modern city thrive without having a high quality of life? Which other factors influence economic performance in cities? And, after looking at the evidence, what should be the priorities for city leaders trying to stimulate economic growth in their areas? © The Economist Intelligence Unit Limited 2011
    • Liveanomics Urban liveability and economic growth Key points n What businesses want from cities varies enormously. n However, some requirements are common to all: talent, transport, affordable housing and good governance. n Experts differ on the importance of quality of life as a driver of economic growth. Part I: What businesses need from cities W hat businesses want from cities varies enormously. As Greg Clark, an adviser to city agencies around the world, says: “If you’re in film, fashion and TV you want London or New York—big and dirty, with lots of different people and real edge that creates a buzz. If you’re doing bioscience or pharmaceuticals, you want precision labs and so you might prefer Boston, Zurich or Singapore.” But despite the diverse range of needs that businesses have, there are some requirements that are important to all. We discuss these below and explain the role that liveability plays in fostering their development. A talented workforce In mature, industrialised economies where knowledge-based services businesses are an increasingly important driver of growth, having access to a skilled workforce is becoming more of a necessity than a luxury. Cities often play a crucial role here, providing a rich source of talent upon which knowledge intensive businesses can draw. What were your main motivations in coming to your city? Select up to three. (% respondents) To seek better work opportunities 39 I was born here/it has always been my home 29 I was posted here by my employer 24 To be closer to family/friends 21 To go to school or university, or to be near to better schools or universities 15 For culture/nightlife 14 For greater personal freedom 11 For existing relationship/To find new relationship 9 For safety/security considerations 8 For healthcare considerations 3 Other 8 © The Economist Intelligence Unit Limited 2011
    • Liveanomics Urban liveability and economic growth In our survey, access to talent and labour were cited by 63% of respondents as being what makes their city a good place in which to locate their organisation, while 58% said that their organisation had chosen its location because it could access a happy, healthy workforce. One-third of urban professionals say improving schooling and education would make their city more competitive for business, making it their second-highest priority. Businesses are looking for a deep talent pool in the fields in which they need to be successful,” says Carol Coletta, president and chief executive of CEOs for Cities, a US network of urban leaders. “Talent pools in places where there are other talented people. That speaks highly to the need for quality of place and quality of opportunity.” Cities’ power to attract talent is why KPMG sited its Ho Chi Minh City offices in the downtown area, rather than where its clients are, in industrial zones outside the city. “The number one reason for being located where we are is the people,” says Warrick Cleine, managing partner of KPMG Vietnam. “What forms part of “What forms part of being an employer of choice is having a high-quality office building and shops and being an employer restaurants around it that staff can go to.” of choice is having a There is a question mark over just how much city leaders and other policymakers can do to retain high-quality office skilled workers, however. “A lot of places are successful in developing talent because they have the building and shops right higher education institutions, but they can’t necessarily hang on to that talent,” says Ms Coletta. and restaurants Andrew Carter, head of research at Centre for Cities, a London-based think-tank, explains that this is around it that staff because workers are increasingly mobile. “When a city is creating jobs, its population tends to increase can go to.” and when it’s losing them its population falls,” he says. “That’s just a normal part of the adjustment Warrick Cleine, KPMG process in all economies. Skilled people find it easier to access jobs elsewhere so they’re often among the first to leave when the jobs begin to dry up. It’s very difficult to see how city leaders in places like Liverpool [UK] can prevent that from happening.” What do you think should be the main priorities for your citys mayor/leadership in order to make your city more competitive for business? Select up to three. (% respondents) Improving public transport/roads 61 Improving schooling/education 33 Encouraging multinational companies to set up business 32 Improving safety and security 29 Raising the citys profile and improving its reputation 27 Reducing corruption 25 Reducing environmental impact 22 Supporting local businesses ahead of multinationals 15 Improving healthcare facilities and access to care 12 Attracting major sporting/cultural events 11 Other 7 © The Economist Intelligence Unit Limited 2011
    • Liveanomics Urban liveability and economic growth The aerotropolis Live Next), points to a shift in many places where airports no longer simply serve the city but have themselves become airport cities. “They’re taking As transport and logistics companies gather on all the functions of a modern metropolitan around the world’s biggest airports and their centre,” he says. “Upscale restaurants, casinos, related transport corridors, a new urban form is hotels, trade and exhibition complexes and emerging: the airport city. Professor John Kasarda financial units are all locating around the airport, of the University of North Carolina’s Kenan-Flagler and this is creating a second downtown.” Business School argues that airports are set to “The aerotropolis should bring together urban shape urban development in the decades to come. and regional planning, and business strategy and “Show me the busiest airports today and I’ll show site planning,” Professor Kasarda continues, “so you the great urban centres of tomorrow,” he says. airports function more efficiently and the region Professor Kasarda, who has co-authored a itself is more economically efficient, aesthetically book on the concept (Aerotropolis: The Way We’ll appealing and environmentally sustainable.” Transport and connectivity Transport connections have always been a key driver of economic growth in cities and towns. In the past, a city might have grown up around a river crossing. Today a city’s growth is more likely to be linked to its proximity to an airport (see box), port or motorway hubs. In our survey of urban professionals, 37% of respondents regard transport links to other key cities and markets as being a primary benefit of being located in their city. And 61% of respondents say city leaders should address transport, far ahead of factors such as better education (33%), encouraging multinationals to set up business (32%), and improving safety and security (29%). Getting people to work on time is one function of a good transport system. But our respondents’ emphasis on transport links reflects another evolving trend—the fact that the line between people’s professional and private lives is becoming increasingly blurred. “Time is becoming ever more valuable,” says Ms Coletta. “Technology is becoming richer and more diverting and as a result people are living 24-7, so if you don’t provide good public transport or alternatives to the automobile that’s a real problem.” Deanna Oppenheimer, the chief executive of UK retail banking at Barclays, argues that good transport systems are essential to the economic health of cities such as London, where the company sponsors a city-wide cycle hire scheme. “Investment and improvements to London’s transport infrastructure will assist economic prosperity in the city,” she says. Transport systems are clearly important both in maintaining quality of life and business performance, but policymakers should not see investment in transport as a magic solution that will always spark growth irrespective of underlying circumstances. According to Mr Carter, “areas that have experienced decline often have transport systems that are easily able to cope with the demands now being placed on them because they were designed for much higher usage. The fact that some areas have really great public transport systems doesn’t necessarily mean that they will be attractive to businesses and workers. There are plenty of other factors at play.” © The Economist Intelligence Unit Limited 2011
    • Liveanomics Urban liveability and economic growth Affordable housing Liveability also means being able to find decent, affordable housing. Housing features highly among the schemes highlighted by our respondents when asked to outline something they believe would benefit their city. Many respondents suggest access to “affordable housing”. One respondent cites “mass housing projects and eradication of ghettos”, while another believes it would be beneficial to curb “certain building restrictions that artificially inflate the cost of living.” However, high house prices are not necessarily a problem in themselves. “New York is expensive but it has no trouble getting good workers,” says Todd Sinai, associate professor of real estate and business and public policy at Wharton. “But in a city that’s more expensive, the first thing that has to happen is that workers need to get paid more.” Indeed, high or rising house prices should probably be seen more as a sign of economic success, reflecting the fact that more people want to live in an area. The big challenge for policymakers is to ensure that the supply of housing is meeting demand for it as this evolves over time. In the UK in particular, the failure to build houses in economically dynamic areas where there is high demand, such 1 Nickell, S. ‘Housing’ as London, Cambridge and Brighton, is regularly identified as one of the key failings of cities policy.1 in Options for a New As a result, there have been increasing volatility and affordability problems in the UK housing market, Britain London: Palgrave making it harder for people to move from low- to high-performing areas where jobs are more plentiful. (2009); Aldred, T. Arrested Development: Are we Efficient governance building houses in the right Good governance and efficient permitting procedures are among the criteria companies consider places? London: Centre for Cities (2010) when looking at potential sites for their operations. The importance of governance and bureaucratic FedEx in Memphis agencies providing disaster relief.” In turn, Mr Smith says, cities need to offer incentives to make it attractive for companies to With around 30,000 employees in the Memphis locate or do business in them. He cites sales tax area, FedEx is the city’s largest private sector exemptions on new equipment, tax moratoriums employer, while the cargo shipped by the company on land or capital improvements, tax incentives for from Memphis International airport makes a big industrial investment or the creation of jobs, tax contribution to the airport’s economic impact exemption to encourage research and development, on the local economy (an estimated US$28.6bn and accelerated depreciation of industrial in goods and services and US$8bn in total wages equipment. Cities, he adds, can also provide bond earned in 2007). financing and loans for construction and equipment. However, Fred Smith, FedEx Corporation’s Beyond such business incentives, however, Mr chairman, president and chief executive officer, Smith stresses that quality of life—good schools, maintains that businesses support cities through safe neighbourhoods, cultural opportunities, more than wealth and employment generation. reasonable living costs—is critical in attracting “Businesses should offer their particular expertise to businesses to a city, fuelling the local economy, the city at large and to segments within the city,” he which in turn generates more jobs and attracts says. “We’re logistics experts, for instance, so we can more businesses. “It’s a restorative cycle,” he says. share our expertise with any company trying to move “Ultimately, you have to have both good economics goods, including non-profits such as food banks and and good quality of life. They feed each other.”10 © The Economist Intelligence Unit Limited 2011
    • Liveanomics Urban liveability and economic growth efficiency is reflected in some of the things our respondents say they would like to implement in their city. “Make city government more transparent and accountable,” says one. Others would like to see a reduction in “red tape” and “barriers to business”. Meanwhile, 20% of respondents say that good local governance and political stability are the main benefits of being located in their city. And with most city leaders across the world facing a prolonged period of fiscal austerity, they may find it worthwhile to increase their engagement with business to both understand their needs and draw on their expertise. Liveability and city growth: a mixed picture While the idea that city growth and liveability might go hand in hand is appealing, experts’ views differ on the importance of quality of life as a driver of economic growth. Harold Miller, president of US consulting firm Future Strategies, argues that “Pittsburgh’s greatest strength is quality of life. People want to come to an area with a high quality of life and lots of amenities that were built up over decades.” And Greg Clark suggests that companies look to cities to provide the liveability factors that can attract a healthy supply of talented workers to their doors because “businesses follow talent and talent follows quality of life”. Meanwhile, Mr Carter recognises that liveability can be an important factor in the location decisions of people and businesses, but stresses that the city growth equation tends to be more complicated than this. “Studies show that the processes of globalisation and technological change have created a long-term shift in the geography of job creation in the UK. Improving a city’s liveability may help to maximise economic growth, but we shouldn’t pretend that’s going to completely reverse a major long-term shift in where jobs are being created. I’m afraid the evidence just doesn’t support that kind of conclusion.”11 © The Economist Intelligence Unit Limited 2011
    • Liveanomics Urban liveability and economic growth Key points n Unless civic leaders are able to foster economic opportunities, their city is likely to decline. n The benefit of tax breaks for businesses is hard to calculate—policymakers should look at other incentives. n Branding of cities plays an important role, both in attracting talent and in boosting business opportunities. Part II: What the city must deliver L iveability takes on a whole new meaning when it comes to employment—nobody wants to live in a city where there are no jobs. Indeed, unless city leaders are able to foster economic opportunities, their city is likely to decline. The evidence shows this clearly, with places like Detroit and Liverpool experiencing significant population losses over recent decades as the number of jobs available in these cities has fallen. This point is supported by the findings of our survey. Almost 60% of respondents cite the job market and cost of living as the leading factor in their decision to live in a city. And, of those respondents who have moved to their current city, 89% did so because they were either posted there by their employer or because they were “seeking better work opportunities”. Concern about the availability of jobs and the strength of the economy over the next three to five years is also an issue for many of our respondents. Nearly 40% cite economic uncertainty as one of the most critical pressures their city will face over this period. And 30% say that improving the jobs market and cost of living would be one of the first things they would change in order to make life less stressful. In your view, which factors are most important to you in making a city an attractive place in which to live and work? Select up to three. (% respondents) Jobs market and cost of living 58 Public transport, road links and parking 47 Safety and security 44 Culture, nightlife and sporting facilities/events 34 Access to decent childcare and education 28 Parks and access to green/open spaces 23 General environment and cleanliness 20 Layout of the city, quality of its buildings and housing 17 Access to quality healthcare 17 Range of shops and stores 612 © The Economist Intelligence Unit Limited 2011
    • Liveanomics Urban liveability and economic growth On the other hand, urban professionals, who are often less vulnerable to unemployment than less skilled workers, are understandably more confident that their city can deliver on business and employment opportunities than on other things. More than half (51%) of our survey respondents think their city has been performing well on this issue, significantly higher than those who cite social factors such as housing, safety, culture and community relations (37%) and infrastructure such as transport and utilities (26%). Policies to spark business growth While the public and non-profit sectors contribute to city employment, the private sector is often the main driver of growth in the jobs market. And it will need to be relied upon even more heavily as public spending cuts are introduced by governments across the world over the next five years. “City governments So what can cities do to try to stimulate private sector jobs growth in their areas? Some have can use their adjusted their tax regimes; San Francisco, for example, froze payroll taxes for two years, and also influence to speed offered payroll tax incentives to businesses creating new jobs. up processes However, Ms Coletta warns policymakers against relying too heavily on tax incentives when trying like getting to attract new businesses to locate to their city. “In most cases, cities don’t know what the payback on telephone systems tax incentives is,” she says. “It’s very difficult to calculate, and most cities would be better off focusing established, or on other incentives—on the quality of talent, quality of place, quality of opportunity and making sure reducing the time it there’s a good business climate.” takes from agreeing In the wake of the global economic downturn, of course, a good business climate is harder to find. a lease to occupying “Capital requirements are rising to the surface and there’s a real sense among small businesses that a building.” their access to capital is limited,” says Teresa Lynch, senior vice-president for research at the Initiative Greg Clark for a Competitive Inner City, a non-profit company founded to promote private sector engagement in inner city prosperity. “It becomes more of a concern in cities that are concentrated in manufacturing, a sector in which there hasn’t historically been a big equity play.” Some cities are devising innovative programmes to help small businesses expand and generate employment. In the US, Portland has set up working groups to develop microcredit programmes that could provide local entrepreneurs with access to capital and a micro-exchange, that would offer local investors opportunities to invest directly in local non-public companies.2 In good times and bad, cities also need to find ways of smoothing the path to business creation. “City governments can use their influence to speed up processes like getting telephone systems established, or reducing the time it takes from agreeing a lease to occupying a building,” says Mr Clark. Many cities are using technology to do this, creating one-stop shops to which businesses can turn when establishing their enterprises, in order to obtain permits and licences, pay taxes and so on. Singapore’s EnterpriseOne portal offers everything from market research and information on funding options to online business registration. But a flashy online interface means little unless there is also 2 Portland job creation and back-office co-ordination between city departments. “It’s important to have a political decision and a stimulus, Office of the City Auditor, Portland, Oregon, strategy from the beginning,” says Frank Jensen, president of Eurocities, a network of major European June 2010 cities, and mayor of Copenhagen, which is providing a one-stop-shop for businesses locating in the13 © The Economist Intelligence Unit Limited 2011
    • Liveanomics Urban liveability and economic growth city. “If it’s based only on what the civil servants are dealing with, it’s much harder to concentrate all the functions in one office.” Civic authorities can also support business incubation organisations, often in public-private partnerships. In Pittsburgh, economic revival has been boosted by a culture of innovation, helped by organisations such as the Pittsburgh Life Sciences Greenhouse, which is partly funded by the Commonwealth of Pennsylvania and the state’s department of community and economic development. Some believe that the challenge of generating economic activity should be looked at more broadly—and that means bringing artists and designers into the process. In Chattanooga, Tennessee, a non-profit organisation called CreateHere organises business planning workshops and initiates joint projects—such as the creation of a park in Detroit—that bring together individuals and groups from diverse sectors of the city, including artists, designers, architects, engineers and general contractors. Josh McManus, founder of CreateHere, says that few cities have yet to make the connection between creativity and economic development. “In more cosmopolitan cities, there’s sometimes a recognition of creativity as impacting quality of life,” he says. “But to draw a link between sustainable economic development and creativity is very rare.” Charter Cities in developing economies Stanford Center for International Development and the Stanford Institute for Economic Policy Research, and the Henry Kaufman Visiting Professor at NYU’s Poor governance and corruption are often cited Stern School of Business as barriers to growth in developing countries, Professor Romer and his team have developed which are also home to some of the world’s several Charter Cities scenarios. In one, Australia fastest-growing cities. But, as any policy expert and Indonesia join forces to create a new regional or development specialist will tell you, retrofitting manufacturing hub. Another suggests that Canada for good governance is extremely difficult to do. could develop a Hong Kong in Cuba, by modifying Corruption is hard to weed out once it is embedded the existing treaty between Cuba and the US to in urban institutions, business models and cultures. shift control to Canada. A Canadian administrator One new concept in urban planning—called would establish and enforce legal protection and Charter Cities—explores ways in which good institutional stability for the territory. governance and freedom from corruption may “Once you’ve appointed this strong executive, be built into new cities from the very start, by it could look a lot like Hong Kong,” says Professor outsourcing their development. The idea behind Romer. “In Hong Kong civil service and regulatory Charter Cities is that by building special reform traditions were brought in to some extent along zones, using unoccupied pieces of land and with expatriates, but to a large extent they were establishing charters to govern them, governments developed by training people from the region.” could quickly adopt new systems of rules that might Strong governance would attract foreign be very different from those that exist in the rest of investors and residents to the city, while suburbs the country. would emerge on the Cuban side of the city “Just as developing countries have learned that boundary. As in the case of Hong Kong, the territory they can import technology, countries could leverage would eventually be returned to Cuban control, with systems of governance that are working,” says a special administrative treaty shaping how the city Paul Romer, an economist and senior fellow at the would be governed.14 © The Economist Intelligence Unit Limited 2011
    • Liveanomics Urban liveability and economic growth However, he argues, it is something to which cities should devote more attention. “Stimulating enough raw creativity in a community serves as the precursor to innovation,” he says. “This innovation, when nurtured, turns into a much more sustainable form of economic development.” City branding: Messaging for the metropolis In the same way that companies need to advertise their products and services, civic leaders, planners and strategists need to be touting their cities’ strengths constantly in order to attract companies to invest in their economies. A city’s image also helps it to build and retain the vibrant, creative populations from which companies hire their employees. “You need to do In marketing themselves, some cities have it easy. Historic buildings and architectural monuments, something new seats of government and ancient academic centres guarantee many cities a place at the top of the and stand out in metropolitan league tables. a way that makes These big city brands exert a powerful pull—for example, despite their threats to desert London you different—and in favour of better tax breaks in Switzerland, few bankers or hedge funds have actually done so. that’s a very Meanwhile, 73% of respondents to our survey believe that their city’s image helps it attract important difficult thing industries. For others, a strong dose of creativity is needed to establish the brand recognition that will to get cities to help their cities compete socially, economically and culturally. understand.” Even big-brand cities face outdated views about what they represent. “If you ask someone in Tokyo Carol Coletta, CEOs for Cities or Moscow who’s not visited London what they know about London, in Tokyo, you’ll get Sherlock Holmes and in Moscow, you’ll get Charles Dickens and fog,” says Wally Olins, chairman of Saffron Brand Consultants. “The levels of misunderstanding are vast for almost any city.” To correct this, or build up a new image, cities need to be ready to spend money. Toronto, in Canada, invested US$4m in its Toronto Branding Project, launched in 2005. Part of the funding went on brand development and marketing, and consumer research was undertaken to identify what differentiated Toronto from other cities. “Starchitects”–celebrity architects—can also help to put cities on the map. Since the Guggenheim Bilbao Museum opened its doors in 1997, Frank Gehry’s iconic design for the building has propelled to international stardom the once little-known Spanish industrial city in which it is located. If Bilbao is anything to go by, then, the lesson for civic authorities seems to be that one way of creating distinction in an undistinguished city is to build it. But some cities struggle to find or develop their identities, and instead try to mimic the characteristics of others. “The tendency is to study the best practices and copy what’s safe because it’s been proven elsewhere,” says Ms Coletta. “But you need to do something new and stand out in a way that makes you different—and that’s a very difficult thing to get cities to understand.” Ms Coletta cites the much-emulated Millennium Park in Chicago. “You can pull it off the first time, but once you have the fifth version and people claim it’s their answer to Millennium Park, no one gets excited any more. Then you’re an also-ran.” The trick for cities is to recognise what they cannot be and to identify and emphasise their differentiating characteristics. “Cities have to go though a painful process,” says Mr Clark. “It’s about accepting constraints moving beyond rhetoric into reality.”15 © The Economist Intelligence Unit Limited 2011
    • Liveanomics Urban liveability and economic growth The new economy? Portland, Oregon, is one city that has gone through that process. The city conducted an analysis of both its local industrial strengths and of the industries likely to show most growth nationally or globally. It identified four industries—advanced manufacturing, clean technology and sustainability, digital development and open source software, and active wear—and is now focusing on those. “We’re not the size of the Seattle area and we don’t have the profile or the economic heft of San Francisco,” says Portland’s mayor, Sam Adams, “so we have to be more clever and agile.” Policymakers are learning that industrial strength is only one path towards developing a strong brand. For Copenhagen, green city solutions are seen as a way to compete. The city’s goal is to become carbon neutral by 2025, and plans to develop an international laboratory for foreign investment in the field of clean technology. “Every city should find its core strength and invite business and universities into partnerships to develop that core strength,” says its mayor, Mr Jensen. Mr Adams agrees. “Any city worth its salt will tell you that the welcome mat is open for business,” he says. “But when you’re making additional investments to keep what you have, to grow and to recruit others to come to your city, you have to work from strengths.” Mr Carter, of Centre for Cities, warns policymakers against too much bullishness. “Our research has shown that UK policymakers probably need to be a little bit more pragmatic in some of their business growth aspirations,” he says. “For example, almost 70% of England’s cities have identified the creative Infosys in Bangalore life so far in terms of arts and culture,” he says. “The city is not doing as much as it should in that respect.” However, for the company, influencing the In Bangalore’s extraordinary transition from a dusty development of the city means striking a careful town to a thriving IT hub that is home to more than balance between stepping up and holding back. “We 600,000 IT executives, Infosys has played a leading don’t want to be seen as having a disproportionate role. The IT services company has developed a large share of the city’s attention,” says Mr Mohandas Pai. campus at Electronics City—based on Microsoft’s “The city has to articulate how it’s going to grow and in Seattle—that is one of India’s largest industrial then invite stakeholders to participate.” parks, and representatives from the company sit on At the same time, he believes that before this can many city and state committees. happen, Bangalore needs stronger governance and However, T.V. Mohandas Pai, a member of leadership. “The challenge in Bangalore is that we the board at Infosys, believes that the urban don’t have a permanent city administration or an policymakers should be playing a greater role in executive mayor,” he says. “We have to get the legal attracting other businesses to the city. “We want structures in place.” the city to market Bangalore and improve its While this may be a source of frustration for image so that more and more companies in similar Infosys, the phenomenon is not an unusual one. industries will come and settle here, which creates Ultimately, many city administrations still require an ecosystem,” he says. “This ecosystem generates the approval of state and national governments vibrancy and innovation.” before they can act. Mr Mohandas Pai believes this He adds that developing the softer side of city needs to change. “Unless you fix the governance liveability has also yet to receive sufficient attention. model, dramatic improvement cannot take place,” “The focus in Bangalore has not been on quality of he says.16 © The Economist Intelligence Unit Limited 2011
    • Liveanomics Urban liveability and economic growth industries sector as a strength that’s worth supporting. The problem with that is, when you look at the statistics, a lot of these places just don’t have that big a concentration of creative industry workers. The desire to have creative industries, life sciences or an advanced manufacturing sector is totally understandable, but it needs to be grounded in a realistic assessment of a city’s position.” Shrinking cities a less dramatic scale, and took earlier action to try to manage urban shrinkage in its cities—the inner cores of cities like Magdeburg and Halle had been Many cities seem to work under an unofficial mantra neglected for decades, in favour of new town suburbs. of “bigger is better”. But that’s not the case in the Now politicians and planners have embarked on Sachsen-Anhalt region of eastern Germany, where the “re-urbanisation” of inner cities, with tower blocks motto of an urban regeneration scheme, International knocked down to create “green corridors” linking Building Exhibition (IBA), is “Less Is Future”. hubs of collective activity, including small businesses, Sachsen-Anhalt’s population has fallen by 17% artistic communities and conference facilities. In the since Germany’s reunification, and continues to surrounding country reindustrialisation is encouraged fall. Today it is around 2.4m; Karl-Heinz Daehre, through incentives such as solar and wind energy the region’s minister for regional development and projects. The region plans to be wholly weaned off transport, predicts that it will fall to 1.5m by 2060 if fossil fuels by 2060. policies remain unchanged. Eastern Germany has benefited from €1.5trn By 2050, 70% of the world’s population is expected (US$1.9trn) in financial transfers from the federal to be urban. But while most cities are growing, one in government and EU since reunification in 1990 and every four cities is shrinking, according to Professor unemployment is now, finally, below 10%. But this Philipp Oswalt, head of both the IBA and the Bauhaus money is now running out—it is even becoming Foundation in Dessau. But embracing shrinkage, the too costly to demolish housing—and it has not IBA argues, can be a stimulus for re-inventing cities stopped shrinkage. This has led to scepticism about that are smaller, and promoting their quality of life. longer-term prospects for some of these shrinking Professor Oswalt took the notion of shrinking cities European cities. “Some of these cities will be as a potentially positive phenomenon to Detroit, abandoned completely, utterly devastated,” says Michigan, whose population has fallen from 1.85m in Regina Sonnabend, an urban planner at the Bauhaus 1950 to just 790,000 today. In the autumn of 2010, Foundation. Detroit’s mayor, Dave Bing embarked upon a series of But in the US, whose population is expected to heated town hall meetings to present his controversial grow by 140m by 2050, the outlook is more positive. plan to demolish 10,000 of the city’s empty homes by Terry Schwarz, director of Cleveland Urban Design the end of 2013, and to revitalise the urban core by Collaborative at Kent State University, says that “greening” it. Cleveland, where she lives, has seen its population With a budget deficit of more than US$300m, Mr more than halve over the last 60 years. Now, she says, Bing has closed more than 60 schools and cannot it is on the verge of a transformation unlike anything pay enough fire-fighters to combat blazing houses. she has seen in her 20-year career. Unemployment is officially around 28% and one in “We have to find a way to accommodate this three lives below the poverty line. There is no hospital rapid growth while reducing our national carbon for the uninsured in downtown Detroit (although footprint,” she says. “I think the gradual repopulation there are three casinos). of post-industrial cities in the US must be part of Sachsen-Anhalt faced similar problems, albeit on this equation.”17 © The Economist Intelligence Unit Limited 2011
    • Liveanomics Urban liveability and economic growth Key points n As budgets shrink, civic leaders are looking for new ways to partner with the private sector to maintain and improve liveability. n The private sector is also playing a larger role in helping cities become greener. n Business plays an increasingly important role in raising cities’ profile. Part III: Business helps build city liveability A s well as generating wealth and employment, businesses play a central part in developing a city’s quality of life—by investing in the built environment, by funding cultural venues and events and by engaging in other forms of corporate philanthropy. As city governments struggle with tightening budgets, civic leaders are looking for ways to leverage private sector investment so that they can deliver the infrastructure and amenities that their cities need. In the UK, for example, city leaders are looking at the idea of schemes called local asset- backed vehicles, by which local government combines its land assets with private sector investment in order to help fund regeneration projects. In this way, they hope to continue to be able to invest in the built environment, despite a sharp contraction in public capital investment. “City leaders are looking for new ways of getting infrastructure projects funded in partnership with the private sector,” says Andrew Carter. “Without that, they’re going to suffer from a period of very low investment in their built environments”. For companies, philanthropy is only partly altruistic. “There’s self-interest in a larger context, which is that as a business you are more successful if the community is successful,” says Stanley Litow, head of corporate citizenship and corporate affairs at IBM, and president of the IBM International Foundation. “A city that’s absorbed with a transportation crisis or public safety crisis is unstable, and that has an impact on all the operations in that city including business.” In Atlanta, the Atlanta BeltLine—a US$2.8bn redevelopment project that will create a network of public parks, trails and transit systems along a historic railway corridor—has received financial support from companies such as Cox Enterprises, an Atlanta media group, and Kaiser Permanente, a healthcare group. “Those corporations are looking at the Atlanta BeltLine as a way of keeping Atlanta competitive,” says an urban designer and senior associate at Perkins+Will, Ryan Gravel, who developed the idea for the BeltLine project. But delivering city liveability is not only about delivering infrastructure. For example, companies have long played a role in supporting the recreational side of their cities. And there are business benefits—corporate sponsorship of the arts, recreational amenities, sports and entertainment can provide attractive branding opportunities. Moreover, corporate leaders know that the presence of these amenities can help make their cities18 © The Economist Intelligence Unit Limited 2011
    • Liveanomics Urban liveability and economic growth more attractive to the workforces they need to employ. Respondents to our survey make the same connection—85% agree that the cultural and social attributes of cities are as important to business as good infrastructure. Many companies make the link between availability of cultural amenities and availability of talented workers; Deutsche Bank, for example, is a major sponsor of the arts in London, even though it is headquartered in Frankfurt. “[The bank] could have focused on Frankfurt,” says Colin Tweedy, chief executive of Arts & Business, a UK-based organisation that connects companies to cultural organisations. “But their employees love being in London because it’s hip and stylish and that’s why they sponsor major exhibitions there.” Big corporate sponsorship deals can help civic authorities to provide more of what makes a city appealing, underwriting programmes that municipal governments would find hard to fund. In the past, this has brought cities everything from libraries and art galleries to concert halls and sports stadiums, as dominant companies have sought to boost their prestige in the city in which they are headquartered. “We cannot reach However, the relationship between businesses and the cities in which they operate is changing. this goal alone. We No longer is there necessarily a strong correlation between corporate philanthropy and company need public and headquarters, as the Deutsche Bank sponsorship approach demonstrates. As companies become more private partners global, their philanthropic efforts are becoming less closely associated with individual cities. Waves interested in of corporate consolidation have seen smaller businesses with strong local allegiances snapped up by developing green multinationals with a global agenda. city solutions.” Companies still tend to have close relationship with their local educational institutions. Even Copenhagen’s mayor Frank here, however initiatives can take a broader, more regional approach. In Latin America and the Jensen on the city’s aim to become carbon neutral Caribbean, for example, companies such as Nokia, Alcatel-Lucent and Microsoft support Entra 21, a regional program providing disadvantaged young people with employment training. While residents in metropolitan areas across the region benefit, the programme makes no explicit links with specific cities. In some cases, corporate largesse is distributed far beyond a company’s home base. “New business leaders in sectors such as IT have a different ethos in terms of their philanthropic responsibilities,” says ICIC’s Ms Lynch. “There’s still a great sense of responsibility but [Microsoft founder Bill] Gates, for example is looking at global disease rather than putting up cultural monuments in cities.” Of course, the role of business in the success of cities goes beyond philanthropy or sponsorship. Through their profit-making activities, companies deliver services such as electricity supplies and communications technologies. In our survey, 65% of respondents see the private sector as best placed to deliver energy while 93% look to business for the most efficient telecommunications delivery and 54% see waste management as best handled by companies. Increasingly, however, companies are also playing a role in fostering another element of an appealing city—its greenness. While in our survey, 22% of respondents believe that their city’s leaders should make reducing environmental impact a priority, local governments realise they need the technical know-how of the private sector to help them do so. In Copenhagen, the mayor is working to involve the private sector in the city’s mission to become carbon neutral. “We cannot reach this goal alone,” says the city’s mayor, Mr Jensen. “We need public and private partners that are interested in developing green city solutions.”19 © The Economist Intelligence Unit Limited 2011
    • Liveanomics Urban liveability and economic growth Meanwhile, businesses and industry associations can act as ambassadors for their city, helping bring in new enterprises. Almost one-third of respondents to our survey feel that this should be a priority for civic leaders, but Greg Clark believes that the message is more effective when it comes from the private sector. “Businesses can talk to the rest of the world about why it’s good to do business in their city,” he says. “That’s much more powerful than the city government talking about it.” Banking on bikes (US$39m) in Barclays Cycle Hire and Barclays Cycle Superhighways, new cycle lanes into central London from outer London. Since July 2010, certain corners of London have For Barclays, the branding rewards from funding become home to a new form of public transport— these schemes are clear—the distinctively-coloured bicycles for hire. Along with the Transport for machines catch the eye as they make their way London roundel logo in the bikes’ livery is the bright through London or sit in ranks on street corners. blue logo of Barclays, the bank that has sponsored However, the investment will bring the company the scheme. So while the scheme is getting more other benefits too, including bolstering the bank’s Londoners to use a new form of public transport, it environmental credentials. is also an example of how corporate philanthropy is “Branding is one benefit of our sponsorship,” penetrating further into the services that contribute says Deanna Oppenheimer, chief executive of UK to city liveability. retail banking and Western Europe, and vice-chair of Users sign up for membership, pay a membership global retail banking at Barclays. “But it is also about fee and can then pick up and deposit the bikes at making a positive contribution to society in London. docking stations around the city; journeys of less The schemes have clear benefits of partnering than 30 minutes are free of charge. Visitors can also Barclays with a sustainable and environmentally buy casual access. Since the scheme was launched, friendly mode of transport.” more than 2m journeys have been made on the bikes, Ms Oppenheimer also points to another, longer- while some 100,000 or more members have signed term benefit for the bank of being involved in this up to use the service. kind of scheme. “More cyclists on London’s roads will Barclays made a successful bid to sponsor the help to create a friendly, attractive city with more scheme via an open tender process that was run pleasant shared spaces,” she says. “This is vital if by Transport for London. As part of its five-year London is to continue to attract bright, talented sponsorship, the bank is investing up to £25m people to live and work in the city.”20 © The Economist Intelligence Unit Limited 2011
    • Liveanomics Urban liveability and economic growth Conclusion O ur survey of urban professionals shows that a city’s liveability plays an important role in making it a more attractive place for workers and businesses. But when they are exploring ways to boost economic growth in their cities, policymakers’ first priority must be to find ways in which to stimulate job growth, primarily by making sure that the basics of infrastructure are in the right place. Of course, liveability has a role in attracting skilled workers to a city. But this should not be overplayed, especially in the face of longer-term forces of change across economies. Ultimately, policymakers have limited power to counteract these trends, whether it is by improving liveability, business support or skills. The point this makes is that above all, urban policymakers need to be flexible and realistic in the strategies they adopt to promote business growth in different areas. After all, the route to growth remains far from clear, particularly in times of economic volatility. Improving a city’s liveability is an important goal regardless of its impact on economic growth, but its value as an economic development strategy seems likely to vary from place to place, and depends greatly on the circumstances prevailing in each location. Policymakers should pay heed to this reality when formulating their plans. And they should question the wisdom of advice that offers them a quick fix to deep-rooted problems.21 © The Economist Intelligence Unit Limited 2011
    • Appendix LiveanomicsSurvey results Urban liveability and economic growth Appendix: Survey results Where are you personally located? (Top 20 locations; % respondents) United States of America 25 United Kingdom 10 India 10 Canada 5 Australia 4 Singapore 4 Hong Kong 3 Germany 3 China 2 Brazil 2 Mexico 2 Switzerland 2 Italy 2 Spain 2 Malaysia 1 Sweden 1 Japan 1 Belgium 1 Denmark 1 Netherlands 122 © The Economist Intelligence Unit Limited 2011
    • Appendix LiveanomicsSurvey results Urban liveability and economic growth What were your main motivations in coming to your city? Select up to three. (% respondents) To seek better work opportunities 39 I was born here/it has always been my home 29 I was posted here by my employer 24 To be closer to family/friends 21 To go to school or university, or to be near to better schools or universities 15 For culture/nightlife 14 For greater personal freedom 11 For existing relationship/To find new relationship 9 For safety/security considerations 8 For healthcare considerations 3 Other 8 How long have you lived in this city, and for how much longer do you believe you will live there? (% respondents) Have lived Plan to live Less than one year 4 4 1-2 years 6 6 2-5 years 15 15 5-10 years 21 14 10-20 years 20 15 More than 20 years 34 27 Don’t know 19 Based on recent trends, how do you expect your city will perform in the following categories? Select one in each row (% respondents) Well Moderately Poorly Dont know/not applicable Economic (business/employment opportunities) 51 39 91 Social (safety, culture, housing, community relations) 37 49 14 1 Infrastructure (roads/transport, utilities) 26 47 26 1 Environmental (air/water quality) 26 47 26 123 © The Economist Intelligence Unit Limited 2011
    • Appendix LiveanomicsSurvey results Urban liveability and economic growth How would you rate the overall relative quality of life in your city, thinking broadly about factors such as the local standard of living, natural environment and work opportunities? (% respondents) As a place to live As a place to work Excellent 34 30 Above average 36 43 Average 20 19 Below average 9 7 Poor 1 1 If you had a choice, in which environment would you prefer to live at the following stages of your life? Select one in each row. (% respondents) Inner city urban Suburban/city outskirts Rural Smaller town/village Student 70 20 10 1 First job 81 16 3 Career development 73 24 3 Family/raising children 18 53 24 4 Retirement 19 24 42 15 In your view, which factors are most important to you in making a city an attractive place in which to live and work? Select up to three. (% respondents) Jobs market and cost of living 58 Public transport, road links and parking 47 Safety and security 44 Culture, nightlife and sporting facilities/events 34 Access to decent childcare and education 28 Parks and access to green/open spaces 23 General environment and cleanliness 20 Layout of the city, quality of its buildings and housing 17 Access to quality healthcare 17 Range of shops and stores 624 © The Economist Intelligence Unit Limited 2011
    • Appendix LiveanomicsSurvey results Urban liveability and economic growth What would be the primary things you would improve/change in your city to make life less stressful and/or improve the quality of life there? (% respondents) Public transport, road links and parking 59 General environment and cleanliness 35 Jobs market and cost of living 30 Safety and security 27 Parks and access to green/open spaces 23 Layout of the city, quality of its buildings and housing 20 Culture, nightlife and sporting facilities/events 16 Access to decent childcare and education 15 Access to quality healthcare 15 Range of shops and stores 10 Other 6 What do you think will be the most critical pressures on your city in the next 3 to 5 years? Select up to three. (% respondents) Pressure on public services, eg healthcare, schools 57 Migration into the city 38 Economic uncertainty 37 Pollution levels 31 Crime and safety 30 Shortage of jobs 25 Migration away from the city 10 Availability of clean water 10 Labour/social unrest 7 Political instability 7 Availability of clean energy 725 © The Economist Intelligence Unit Limited 2011
    • Appendix LiveanomicsSurvey results Urban liveability and economic growth What do you feel are the primary benefits for your company or organisation in being located in your city? Select up to three. (% respondents) Access to talent/labour 63 City has a high profile nationally/internationally, and a good reputation 54 Transport links to other key cities/markets 37 Cost of talent/labour 21 Affordability/cost of living 21 Good local governance/political stability 20 Safe and secure environment 18 Beneficial tax/regulatory regime 12 Good healthcare 8 Access to raw materials 2 Other 10 What do you think should be the main priorities for your citys mayor/leadership in order to make your city more competitive for business? Select up to three. (% respondents) Improving public transport/roads 61 Improving schooling/education 33 Encouraging multinational companies to set up business 32 Improving safety and security 29 Raising the citys profile and improving its reputation 27 Reducing corruption 25 Reducing environmental impact 22 Supporting local businesses ahead of multinationals 15 Improving healthcare facilities and access to care 12 Attracting major sporting/cultural events 11 Other 726 © The Economist Intelligence Unit Limited 2011
    • Appendix LiveanomicsSurvey results Urban liveability and economic growth In which of the following industry sectors would you say your city is most competitive? (% respondents) Financial services 44 Professional services 34 Education 34 IT and technology 32 Entertainment, media and publishing 26 Construction and real estate 23 Healthcare, pharmaceuticals and biotechnology 23 Logistics and distribution 23 Retailing 22 Transportation, travel and tourism 20 Energy and natural resources 18 Government/Public sector:Local authority (city, community, municipality) 17 Telecommunications 17 Government/Public sector:National or Federal authority 17 Consumer goods 14 Government/Public sector:Regional authority (state, province) 13 Automotive 13 Manufacturing 12 Chemicals 10 Aerospace/Defence 9 Agriculture and agribusiness 6 How open is your city to the following? (% respondents) Very open Somewhat open Not especially open Opposed Dont know/not applicable Immigrant workers 42 43 11 31 Foreign direct investment 61 28 61 3 Tourists 75 20 41 Global retail brands 67 25 711 International sporting/cultural events 58 28 12 1 1 Trading links 57 32 91 3 Imported ideas and culture 42 40 15 2 127 © The Economist Intelligence Unit Limited 2011
    • Appendix LiveanomicsSurvey results Urban liveability and economic growth Which of the following amenities in your city would you be prepared to pay more for, either directly or in the form of higher taxes, to improve their quality? Select all that apply (% respondents) Public transport/roads 56 Schools/educational facilities 40 Reduced pollution/better air quality 37 Parks/natural environment 36 Police/security 34 Recreational facilities 27 Healthcare facilities 26 Waste management 23 Basic services (eg, water, electricity, internet) 22 Childcare facilities 19 Social housing 12 Who do you think would be most effective in providing the following services in your city? (% respondents) Public sector Private sector Local community/volunteer sector Dont know/not applicable Public transport 63 33 2 1 Energy provision 32 65 1 2 Telecommunications 6 93 1 Parks/natural environment 73 11 15 1 School/education 50 42 61 Healthcare 44 53 2 1 Crime 85 6 5 4 Waste management 39 54 61 Social housing 53 25 18 4 To what degree do you agree or disagree with the following? (% respondents) Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Don’t know My city’s image helps it to attract important industries 30 43 15 9 3 The cultural and social attributes of cities are as important to business as good infrastructure 37 48 10 51 My organisation is located here because it can access a happy, healthy workforce 15 43 32 7 2128 © The Economist Intelligence Unit Limited 2011
    • Appendix LiveanomicsSurvey results Urban liveability and economic growth To what extent do you agree or disagree with the following? (% respondents) Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Don’t know My city is a leader in making environmental improvements to make it more liveable for citizens 9 32 28 21 91 Urban “quality of life” is just a rich city concern—poor cities can’t hope to offer it 4 20 15 36 24 2 In my city there is a strong sense of participation and contribution to the local community 8 29 27 24 10 1 Cultural tolerance and good community relations are essential in making a city attractive as a place to live and work 46 46 5 2 2 Which statement best describes your view of life in your city? (% respondents) Life in my city is getting better 59 Life in my city is getting tougher 41 How old are you? (% respondents) 19-25 3 26-35 24 36-45 33 46-60 31 61-80 9 Which of the following best describes your relationship status? (% respondents) Married, children 58 Single 22 Married, no children 17 Prefer not to say 329 © The Economist Intelligence Unit Limited 2011
    • Appendix LiveanomicsSurvey results Urban liveability and economic growth What is your current work situation? (% respondents) I do not own a business but am an employee 61 I am an owner/manager 21 I run/am a partner in a company of which I was a founder 10 I run/am a partner in a subsidiary of a larger group 3 I am a family member within a family business 2 I am retired 1 I am not currently working 1 I run/am a partner in a company that I purchased 1 Which of the following best describes your employment status? (% respondents) Full-time 93 Part-time 4 Retired 1 Student 0 Unemployed 1 Prefer not to say 1 In which region are you personally based? (% respondents) Asia-Pacific 30 North America 30 Western Europe 28 Latin America 6 Middle East and Africa 4 Eastern Europe 230 © The Economist Intelligence Unit Limited 2011
    • While every effort has been taken to verify the accuracyof this information, neither The Economist IntelligenceUnit Ltd. nor the sponsor of this report can accept anyresponsibility or liability for reliance by any person onthis white paper or any of the information, opinions orconclusions set out in this white paper.Cover image - © Petrenko Andriy/Shutterstock
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