Cities of the futureglobal competition, local leadership**connectedthinking
Cities of the future - global competition, local leadershipContentsPart 1 Cities of the futureExecutive summary           ...
Cities of the future - global competition, local leadership
Cities of the future - global competition, local leadershipPart 1Cities of the future“We need new perspectives on cities, ...
Executive summary                    Many of the challenges and opportunities         In this report, the first from the n...
Cities of the future - global competition, local leadership                                There are six different types o...
Managing all of these capitals together        Intellectual and social capitalrequires strong leadership. City leaders    ...
Cities of the future - global competition, local leadership                                Cities need to develop new part...
Citizens, too, need to be engaged in the        pressure from a host of competingdevelopment and implementation of        ...
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Cities of the futureChapter 1The vision for citiesIn this chapter we outline our approach to developingnew perspectives on...
Cities of the future - global competition, local leadership                                New perspectives on the city   ...
Of course, as figure 2 below illustrates, eachof these capitals is inter-related, and mustbe managed in a holistic and int...
Cities of the future - global competition, local leadership                                          In order to clarify s...
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Cities of the futureChapter 2The way to the future in citiesIn this chapter we set out the importance of having aholistic ...
Cities of the future - global competition, local leadership                                Navigating into the future     ...
Communication is vital to achieving a         demanding citizens. Cities need to thinkcommon understanding of why social  ...
Cities of the future - global competition, local leadership                                              Changing demograp...
• Environmental management – pollution           • Privatisation and outsourcing, including  in all its forms, waste and l...
Cities of the future - global competition, local leadership                                              Summary of key ch...
other cities and to attract citizens. This          How do leaders create the visions that willrequires professional skill...
Cities of the future - global competition, local leadership                                   City of Oslo – The blue and ...
An intelligent city is a work in progress                An intelligent city needs to havethat tries to connect the past, ...
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архитектура Cities final

  1. 1. Cities of the futureglobal competition, local leadership**connectedthinking
  2. 2. Cities of the future - global competition, local leadershipContentsPart 1 Cities of the futureExecutive summary 1Chapter 1 The vision for cities 7Chapter 2 The way to the future in cities 13Chapter 3 Managing capitals 27Chapter 4 Capitals, the key issues 37 4.1 Intellectual and social capital 38 4.2 Democratic capital 45 4.3 Cultural and leisure capital 52 4.4 Environmental capital 57 4.5 Technical capital 62 4.6 Financial capital 69Chapter 5 Summary and conclusions 77Part 2 Cities in focusList of participating cities 85Interview summaries 86Appendix 1 Lead authors 174Appendix 2 Bibliography 175Cities of the future
  3. 3. Cities of the future - global competition, local leadership
  4. 4. Cities of the future - global competition, local leadershipPart 1Cities of the future“We need new perspectives on cities, their dreams, knowledge,creativity and motivation in order to find new ways to developstrategic city management. Therefore PricewaterhouseCoopers(PwC) will develop a new arena for dialogue with leaders in citiesas a tool for strategic development and knowledge sharing,resulting in added value for people in cities, organisations orcompanies.”Cities of the future
  5. 5. Executive summary Many of the challenges and opportunities In this report, the first from the network, we that are coming to define the early part of set out to discover the principle challenges the 21st century are at their most visible and trends that are influencing city leaders in the cities in which a growing proportion in their strategies for delivering prosperous of the world’s population now lives. and socially harmonious environments for their citizens. In the course of our research, In response to the importance of cities in we interviewed over 40 senior figures from the global economy, cities all over the world. What emerges from PricewaterhouseCoopers (PwC) established these interviews is a number of common a City and Local Government Network in themes that all city leaders, despite their 2004. The Network aims to bring together specific circumstances, believe to be city leaders so that they can share the setting the agenda for their cities. experience, knowledge and insights that they have gained and to develop their ideas This report takes those themes and and strategies for the future. explores some of the strategic responses required for effective leadership. We have The City and Local Government analysed the constituent elements of the city into a number of different asset groups, Network’s vision is: or capitals, that form the basis for “We need new perspectives of cities, their developing a strategic agenda that will take dreams, knowledge, creativity, and a city forward. These capitals cover the motivation in order to find new ways to people, knowledge, natural resources, develop strategic city management. technical infrastructure, finances, Therefore PwC will develop a new arena democratic and political aspects and for dialogue with leaders in cities as a tool cultural values that a city embodies. Using for strategic development and knowledge these capitals as a starting point, the report sharing, resulting in added value for examines how different cities around the people in cities, organisations or world are developing their understanding of companies.” each form of capital and assessing how they can ensure that they develop the city intelligence to make the best use of the capitals they have and develop those which may be in shorter supply. Intellectual and social capital Environmental capital Financial capital Technical Culture and capital leisure capital Democratic capital Figure 1: Integrating capitalsExecutive summary 1
  6. 6. Cities of the future - global competition, local leadership There are six different types of capital and dialogue, all need to be taken into discussed in this report: account when establishing a strategic plan for the future. In addition to these • Intellectual and social capital – people trends, city leaders also identified a and knowledge; number of significant challenges that have • Democratic capital – participation and to be taken into account when creating a consultation; strategic plan for the future. • Cultural capital – values, behaviours Challenges for: and public expressions; Intellectual and social capital • Environmental capital – natural Competing in the international knowledge resources; economy means ensuring that the • Technical capital – man-made capital appropriate people, skills and capabilities and infrastructure; and are developed, with city leaders demonstrating that they understand how • Financial capital – money and assets. these qualities can be captured and allowed to prosper. Navigating into the future Managing these identified capitals Democratic capital effectively means taking a holistic City administrations need to improve their approach, since each of the capitals accountability and the transparency of depends on the others. their dialogue with citizens in order to achieve the commitment of the whole city The necessity of taking a holistic on its journey into the future. approach is one of the themes to emerge particularly strongly from the interviews Cultural and leisure capital with city leaders. These city leaders are The competition among cities is intense, keen to stand back from meeting the day and a strong city brand is a potent to day demands and look to the future to weapon to maximise the visibility of a see how their policies and strategies can city’s qualities and allow it to differentiate adapt to the dynamic social, economic itself from its competitors. and political environments unfolding in their cities. This process is like navigation Environmental capital – but navigation into the future. To make Environmental issues are near the top of sure that cities reach their intended all cities’ agendas. As quality of life destination they need to be aware of their becomes an important source of starting position. This requires them to competitive advantage, cities have to ask some important strategic questions, provide a clean, green and safe identify their strengths and work towards environment for their citizens. eliminating areas of weakness. Technical capital Once cities have identified where they are, The demands on a city’s infrastructure they need to decide where they want to change and expand constantly. Cities be in the future. And to do this, they need have to ensure that their physical and to understand the significant trends that technological assets can support the will influence the direction in which the changing needs of their citizens. future unfolds. Financial capital These mega-trends cut across the experience of all cities. The trends Growing demands on cities’ budgets, towards individualism, for example, or the combined with diminishing revenue bases effect that information and mean that cities need to be creative and communications technology has had on flexible in their financial strategies and speeding up the demand for information increasingly partner with the private sector.2 Executive summary
  7. 7. Managing all of these capitals together Intellectual and social capitalrequires strong leadership. City leaders Intellectual capital is identified by the cityneed to develop a style of leadership that leaders as one of, if not the most,is both highly consultative and directional. important assets that their cities possess.They need to inspire and fulfil the dreams In the knowledge economy, it is theand visions of the future that they share people in a city – their skills, capabilitieswith the people and organisations that and knowledge – that can make a criticaltheir city comprises. Values are a critical difference to a city’s ability to competeelement of good leadership. A value- successfully for investment.based approach is one that city leaders How do cities measure and map theirare increasingly adopting. Value-based intellectual capital? Measuring intangibleleadership operates on the basis of a assets is very difficult and the evidencenumber of specific, shared values that are suggests that, to date, very few citiescommunicated clearly throughout an have specific initiatives in place to do so.organisation and used by the leaders to However, from our interviews with cityguide their daily thoughts and actions. leaders it is clear that many of them areManaging capitals trying to develop policies that will make their cities attractive to the skilled andCity governments are highly complex entrepreneurial people that will help theirorganisations. They need to respond to cities to succeed in the economy of thethe demands of many different groups 21st century. One of the key drivers of aand manage the allocation of resources city’s attractiveness is the extent to whichbetween different, and often competing, people feel connected to one another, inclaims. other words, the degree of social capitalDeveloping the capabilities to ensure that that exists.cities manage their capitals effectively Social capital is, again, hard to define butmeans looking at the people, processes expresses itself in the quality of informaland property that they need to manage in and formal relationships that characterise aorder to achieve their goals. city. The degree of social capital in a city isCities need to make sure that they can linked closely to low levels of crime, tomeasure the performance of each of educational achievement and to physicalthese three categories. Without effective and mental health. Building a sense ofperformance management, cities will not cohesion though is not easy. Many of thebe able to create a culture of continuous city leaders we spoke to cited the challengeimprovement. of ensuring that divisions and segregationThe pace and extent of change that cities were not allowed to develop between richhave to cope with requires them to become and poor, and between different cultures.particularly adept at programme and project Engaging all citizens is therefore a majormanagement. To do this, they need to challenge for cities.create the right skills that can guide andsupport change within the organisation. As Democratic capitalwith any programme of substantial change, All of the city leaders that we interviewed ineffective risk management is an essential compiling this report stressed the centraltool. City governments have to identify and themes of collaboration and participation.understand the risks that they face, gauge City governments – like other politicaltheir own appetite for risks and link their entities – are faced with the challenge ofrisk management policies to governance declining participation in the democraticand compliance frameworks in an process. To renew the interest and activityintegrated way. of their citizens, cities have to develop waysWith the right frameworks and to make themselves more accountable,competencies in place, cities can start to increase the transparency of their decisionmanage the different assets they possess making and engage citizens directly in theand begin to address the specific challenges creation of policies and decisions.that each type of capital presents.Executive summary 3
  8. 8. Cities of the future - global competition, local leadership Cities need to develop new partnerships A city wishing to compete for attention in with the different stakeholders they serve. the global market place needs to New forms of partnership that go beyond undertake a wide-ranging audit of all the simply listening to the views of others but qualities that differentiate it from others. take action together are a vital part of this. Once these qualities are understood, they Citizens become more than a voter or need to be developed and promoted to customer – they are engaged as co- the type of people that the city wishes to producers in the policies that will shape attract. The ‘experience economy’ is an the city’s future. increasingly important concept in Channels for interaction are also understanding what makes one city expanding and, most significantly, the different to another. It goes beyond simply Internet is providing a new forum for real the institutions (cultural or otherwise) a interaction. More than simply providing city offers. The experience economy information, the Internet provides a consists of the whole range of platform for genuine dialogue between associations and emotions that people cities and citizens in a way that traditional experience when they spend time – or channels cannot easily accommodate. consider spending time – in a particular place. Creativity – the bedrock of the Developing accountability is a key aspect of experience economy – cannot be ‘bought the strategies that cities are adopting to in’. Instead, city planners have to tease engage their citizens. They are doing this by out their city’s unique qualities, and invest disclosing their own targets and recording in nurturing and developing them. their performance against them; by creating collaborative forums with specific interest There is no single plan for creating a groups (e.g. business) and by arranging their successful city brand. However, there are services around the needs of their citizens. several strategies available that can help cities to draw attention to their qualities. For Cultural and leisure capital cities wishing to embark on this journey, A city comprises a complex array of there are some critical questions to ask. attributes that provide it with its unique They need to consider what will attract the identity. Cities that have succeeded in attention of the world to their city and, more attracting visitors, residents and importantly, what will keep it there? businesses do so by creating a city brand Environmental capital that encapsulates the qualities that the city offers and generates powerful and The quality of life that a city offers is a memorable positive associations. fundamental aspect of its ability to prosper. Offering citizens a clean, green, In building a brand, a city has to be aware safe and attractive environment is high on of how it is seen by the outside world. What the list of priorities for city leaders. are the cultural qualities it is seen to have? What is the lifestyle associated with the Balancing economic development with city? Strategies designed to develop cultural environmental impact is a significant capital need to understand how they are challenge. Pollution, in all its forms, is a seen now and, from that understanding, major problem for many cities and so city develop the steps they need to take to governments have to develop policies that move their city forward to the experience incorporate economic and environmental that they wish to offer. Various different considerations. strategic directions are available. Global Developing policies for sustainable attractions can put a city on the map (such development necessitates a joined-up as the Guggenheim Gallery in Bilbao) and a approach to decision making. This means sporting or cultural event can act as a that environmental considerations are an magnet (e.g. the Barcelona Olympics that integral part of policy development across propelled the city on to the world stage) to the spectrum of city government. Planning, draw the world’s attention. But a city cannot transport, finance and economic policies all rely only on single attractions or events; it need to reflect the environmental goals that has to use these as a starting point for the a city sets for itself. beginning of a much longer journey.4 Executive summary
  9. 9. Citizens, too, need to be engaged in the pressure from a host of competingdevelopment and implementation of demands. At the same time, citizensenvironmental policies and be encouraged demand better services but are reluctantto take responsibility for the quality of the to pay more for them. The familiarenvironment in which they live. Engaging dilemma of having to do more with less iscitizens is more than important; it is a one that all cities are facing.prerequisite for success in developing In order to respond to this challenge, citiessustainable environmental improvements. have to do a number of things. They have to establish accounting policies and analysesTechnical capital that allow them to understand their financialThe enormous complexity of cities today position, and introduce financial disciplinesmeans that the demands on their and performance managementinfrastructure are relentlessly challenging. methodologies based on these findings.Not only are the ‘basic’ needs of transport, Cities need to adopt an entrepreneurialhousing, water and energy under strain, but approach to the way that they finance andnew demands for effective communication provide services. They need to understandmake the supply of, for example, the true costs of the services and productsbroadband and electronic networks an that they supply in order to evaluateincreasingly important element of whether alternative provision (such asinfrastructure provision. shared services) may be more efficient.To cope with these challenges, many cities Some cities may be more effective inare adopting an integrated approach to certain areas than others. They should seektheir urban planning. Rather than planning opportunities to ‘trade’ with other cities –for the separate provision of transport and selling those services that they performhousing, for example, a more holistic view most efficiently and buying in those where itis being adopted that seeks to measure the makes financial sense to do so.combined impacts of different types of New forms of partnership are also critical.development. This integrated approach also Many city authorities are discovering themeans that cities are looking to establish advantages of working with the privatepartnerships and new forms of sector to fund the provision of servicescollaboration that allow them to deliver and infrastructure in innovative ways.infrastructure requirements in new ways.Public-private partnerships to deliver Taken together, the demands on a city’sinfrastructure are now a common feature of finances call for planning that sets out themany cities, and allow city governments to goals and tasks that the city wishes toshare the risks of provision with partners achieve, and establishes how the fundingfrom the private sector. and investment they require can be most effectively put in place. By consulting andThe pressure on cities to operate more examining the experience of others, theyefficiently and at the same time improve will be able to begin developing thetheir services to citizens is increasingly financial structures that will allow them toresponded to by the adoption of techno- meet their present and future needs.logical solutions. Improving processes andworkflows within the city administration Unique cities, common challengesitself is a key focus for many cities. Using Our conversations with city leaders fromnew technology to improve all over the world show that, while eachcommunications and the flow of data within city has its own unique identity andan organisation is made possible through circumstances, they also face numerousthe application of e-Government solutions common challenges and opportunities.that are connecting departments andcutting across the traditional boundaries to A wide range of skills and capabilities areallow more effective collaboration, resulting needed to respond to those challenges,in better service for citizens. and we hope that this report will help city leaders and others to develop their ownFinancial capital responses and assist them in their efforts toCities face a number of common financial ensure the prosperity of their own cities.challenges. Budgets are under intenseExecutive summary 5
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  11. 11. Cities of the futureChapter 1The vision for citiesIn this chapter we outline our approach to developingnew perspectives on governance and managementpractices in global cities - the concept of ‘managingcapitals.’The vision for cities 7
  12. 12. Cities of the future - global competition, local leadership New perspectives on the city bring together this wealth of knowledge and experience. This Cities of the future – global As the 21st century unfolds, and we move competition, local leadership document is ever faster towards global economic the network’s first publication. The aim of integration, the role of major cities, in the project is to identify the most important driving forward growth, prosperity and trends and challenges affecting major cities social wellbeing is changing significantly. across the globe. Cities today are dense networks of interchanging investments, information, Since the autumn of 2004 we have goods and people as well as centres of interviewed over 40 senior political (mayors) innovation and knowledge management. and managerial leaders (city managers) from a range of cities. This document aims There are approximately 400 cities in the to bring together the common issues and world each of which has more than 1 challenges facing these cities and share million citizens. The largest metropolitan how political leaders and managers area, Tokyo, has 28 million citizens and interpret and respond to these issues, both New York City has over 20 million. today and in their planning for the future. According to the 2004 United Nations We have tried to link the insights we have HABITAT report, 60% of the world’s gained to the visions and strategies population will live in a city by 2030. required to help cities compete on both the Determining what is a big and what is a global and local stage. small city depends on where you are in We recognise that political leaders and the world. A city with 300,000 citizens is, city managers require a new approach to for some, a ‘big’ city, while for others it’s networks and arenas for dialogue with small. The question of scale is relative and citizens, companies and organisations so so, in our terminology, a city is simply one that strategic growth and development that has a significant impact on the can be achieved on a sustainable basis. economy and development of a nation. In order to find relevant ideas for city leaders, Fundamentally, we also need to ask what a we have explored the key issues facing city is. It’s a place to live, which means leaders of the future. We have developed the somewhere to grow, to develop and to concept of ‘managing capitals’, to examine enjoy. But it’s also a place to work, to and explain the wide range of economic, educate, to socialise and to relax. Our focus social, practical and managerial issues facing is, of course, on these aspects, but history global cities. The term “capital” refers to the teaches us that the construction of many range of strategic assets and resources old cities was motivated by fear and the within a city. These are: search for protection. All these trends influence the development of a modern city. Capital Focus Cities aim to provide a warm atmosphere, welcoming people to stay, enjoy themselves Intellectual People and knowledge and in doing so spend their money. At the and social capital resource same time social disunity, crime and poverty Democratic Transparency, cannot be ignored. These factors motivate capital participation and the ongoing struggle for the city that patnerships improves people’s lives and meets their Cultural and Values, behaviours needs in all areas of life. leisure and public capital expressions The cities of the future project Environmental Natural resources PwC has strong connections with cities and capital local governments around the world – from Technical capital Man-made capital, Sweden to Australia, and from Japan to infrastructure Brazil. In 2004 the ‘Cities and Local Government Network’ was established to Financial capital Money and assets8 The vision for cities
  13. 13. Of course, as figure 2 below illustrates, eachof these capitals is inter-related, and mustbe managed in a holistic and integrated wayto successfully grow and develop cities in asustainable manner. Intellectual and social capital Environmental capital Financial capital Technical Culture and capital leisure capital Democratic capitalFigure 2: Integrating capitalsThis document begins with a chapter on money or profit and the business orstrategic development and leadership, services they provide are the means bysetting out the key challenges and which to generate profit. In a public sectoropportunities for the future. We then organisation, e.g. a city authority, the goalexamine each of the capitals in more depth, is to provide services and the means arepresenting examples of good practice from provided by citizen’s taxes. It is thereforethe cities we have interviewed. important to take a multi-dimensional approach to understanding what valueThe basis for our approach is the and benefits customers and citizensdifference between private and public derive from their ‘investment’ in publicsector organisations. As figure 3 below services.shows, the goals in private companies are Public sector Private sector Business Money Goal Profit in service Profit in £, $ or € and benefits Means Money Business Taxes, fees Service and benefitsFigure 3: Goals for public and private sector companiesThe vision for cities 9
  14. 14. Cities of the future - global competition, local leadership In order to clarify some of the major issues • To be a facilitator, and provider of new Strategic question: that cities face we have, throughout the arenas for a creative professional- document, posed a number of strategic public dialogue between city How does your city develop a new questions – see opposite for an example. government, business professionals integrated strategic approach across Their aim is to direct a city’s attention to and wider civic society; all its capital bases (resources) that key issues and to instigate a debate and will create a better, more sustainable • Create new content and new meaning exchange of information about the many and competitive city in the future? for terms like innovation, intelligence, possible responses to the common challenges to which such questions give transparency, trust, corporate rise. In our analysis and commentary, we governance and government; have drawn on our extensive experience as • Use the PwC City and Local advisers to many different cities all over the Government Network as a prototype world. We have also made sure that the designed to increase strategic social perceptions and insights of those in the ‘hot capital for city development and seat’ – the mayors and city managers that leadership, and to facilitate mutual are tasked with implementing strategies – learning between city leaders; and are central to this publication. • Highlight the importance of local and City and Local Government global connections between city leaders in the world. Network – the long term vision This publication is the first milestone in We hope that leaders in cities around the our work to take forward and develop the world will find this report interesting and global PwC Cities and Local Government valuable for their tasks and commitments Network. Our vision for the future is: in fulfilling the vision of developing their city as an even greater one in the future. “We need new perspectives on cities and their citizens, their dreams, knowledge, creativity, and motivation in order to find Acknowledgements new ways to develop strategic city We especially want to thank the following management. Therefore PwC will develop people for giving us energy and a new arena for dialogue with leaders in inspiration to try “to see around the cities as a tool for strategic development corner” in the area of strategic and knowledge sharing, resulting in added development and leadership relating to value for people in cities, organisations or challenges that cities face in the future: companies”. • Each of the interviewees who so Our goal is to: generously gave time and ideas to this project; • Create an informal and fellowship- based network among city leaders with • Leif Edvinsson, the world’s first Professor the motivation to develop new thoughts of Intellectual Capital, University of Lund. for cities; In 1998, Professor Edvinsson received the “The Global Brain of the Year” award • Build the next level of public trust into from Brain Trust in Great Britain for his cities of the future, together with research and development; and political leadership and professional management; • Robert and Janet Denhardt, Professors at Arizona State University, Department • Help to create excellence in the cities, of Public Affairs in Phoenix, Arizona, and their services and businesses; USA.10 The vision for cities
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  17. 17. Cities of the futureChapter 2The way to the future in citiesIn this chapter we set out the importance of having aholistic view on how to approach the future. We thinkleadership is the key to managing all the capitalsmentioned in Chapter 1. Effective leadership, and theuse of social intelligence provide the solid base for thenecessary vision and ideas to take cities forward.The way to futureCities of thethe future in cities 13
  18. 18. Cities of the future - global competition, local leadership Navigating into the future the city? Finally there is route and speed: how quickly and by which path will we requires an open mind and reach our destination? To create a vision leadership and a dream takes time, but there is no A cynical attitude among some time to wait. The journey to the future has experienced leaders is that the future is already started. simply a recycling of old ideas and concepts under different and new names. The navigation process depends on how This philosophy and approach says that we consider our position today and what the future is behind us. There is nothing kind of approach we will use to reach our new to come, and no expectation of real future vision. Below are four different change in the future. approaches to navigating in relation to the surrounding world: Change is real and the demands of the future are pressing on us all. We need Inactive No interpretation of trends leaders with the vision and the dreams that will empower and inspire people. Reactive Responding to the Rapidly changing modern societies are agenda of others creating a need for strategic development Proactive Make detailed plans for that offers constant innovation and a renewal of processes and peoples’ the future and set trends attitudes. It is important that a city’s Interactive Shape and respond to leaders are able to see things in a new changing trends over time way. Strategic social analysis and intelligence involves learning from the past but, most importantly, understanding The leaders of tomorrow need the right the likely direction of the future. Social approach to the journey as they try to intelligence is an area of vital importance understand and adapt their course related to what we call city intelligence. according to trends forecast for the future. When conditions change, leaders must An intelligent community has to be able to respond immediately. Is it time to sail see what happens through time, that is against the wind for a while, but then analyse, reach conclusions and define its change again? During this process the present reality. They need to develop their leader needs to develop a “mental GPS” strengths and eliminate their weaknesses. based on intelligence gathered from a That is how we create visions, ideas, and wide variety of sources. Knowledge a strategy; and consequently how we navigation is one relevant term in this create and prepare for the future. It is context. essential that a municipality has the power to implement all this. Some city This way of working is possible only if governments stay in the analytical phase there is a clear-cut appreciation of the and never move on to formulating and direction to take – which, in turn, requires implementing their visions and dreams. a strong vision linked to committed leadership and a well-managed Governments leading a city towards an organisation. To achieve this, leaders have uncertain future are like the navigators of a to analyse both from the outside in (global ship. The crew and passengers comprise trends and tendencies) and from the their citizens, employees and customers. In inside out (visions for the city and its this way, navigation is very similar to the organisation). leadership of a large organisation or a city. The first concern is strategic position, where are we right now? The next consideration is destination, where are we going? What are our visions or dreams for14 The way to the future in cities
  19. 19. Communication is vital to achieving a demanding citizens. Cities need to thinkcommon understanding of why social of their citizens as ‘consumers’, and Strategic questions:intelligence and analysis are so important. ensure that public services match theSome of the reasons for their importance standards of the very best in the private • In what areas is your city in a leadinclude: sector. position? (closer to the future) than your “competing” cities?;• Creating intellectual and practical Merging readiness for the future; • Do you and your leadership group Many areas of life are merging together in• Creating strategic advantage; new ways. This is happening within cities have an interactive approach to and nations (e.g. European Union); with strategic navigation, which means• Facilitating a creative discussion of the technologies like Hi-Tec, Bio-Tec and understanding what’s going on in interpretation of trends (opportunities medicine; between cultures and values; your environment, and trying to and threats); and between work and leisure; and between interpret what it will mean for the the public and private sectors in public• Helping leadership to explain the need private partnerships (PPP). Regionalisation organisation in the future?; for ongoing change in the organisation. is another practical implication of this process. • Has your city developed a strategicMega trends affecting the tool for “city intelligence”?; andstrategic agenda in cities Acceleration Speed is increasing in all areas of life. This • How much of your working time doA mega trend is one that affects the you spend thinking about the future?majority of areas of civil, business and is often driven by information andpublic life. It creates consequences communication technology (ICT) and theeverywhere and for everyone, not least for search for growth. Citizens and customerscities. Some examples include: want on-line access to all public and private services, and the ‘democraticGlobalisation / Glocalisation dialogue’ increasingly demands rapid exchange of information betweenThe global economy is becoming truly government and citizens.integrated. Today’s simultaneous globaland local focus creates a new framework Hi – Techof ideas and opportunities. Globalcompanies and economies work in local Technology is creating many newcompetition, within global structures. This possibilities in the public sector. Access tois sometimes called “Glocalisation”. When high-speed information has revolutioniseda big company either arrives or leaves a global culture. Technology hascity, it affects many areas of life for the implications for the delivery of all existingcity and its citizens. New international services including administration,networks and cooperation between cities education, healthcare, communication,can create significant strategic transportation and many more. In theadvantages. At the same time we need to future we will also see more and more ofconsider the new anti-globalisation the science of robotics in the publicmovement. sector. Intelligent houses used in the care of the elderly are just one example.Individualism Hi – TouchIndividualism has become an increasinglyimportant social trend. We see it in In the modern society the “hardware” ofmarketing, with developments like “one- technology must go together with theto-one” and relationship marketing “software” of emotions, nostalgia, values,instead of strategies that focus on groups. architecture and design, visions andToday we talk about the “I – generation”, dreams. The environmentally-friendly,which means people who are: safe, secure and aesthetic city isindividualistic, informal, informed, imperative for modern civic pride.interactive and international. This Achieving this balance creates significantphenomenon has an important impact on challenges for city leaders in the future.the dialogue between the city and itsThe way to the future in cities 15
  20. 20. Cities of the future - global competition, local leadership Changing demographics harnessed. Often migrants bring a wealth The issue of an ageing population will have of skills to their new country but often a major impact across the globe. The their qualifications and training are not United Nations HABITAT report shows that recognised by their destination country. the number of people aged 65 and older For example, they may not be eligible to will rise from 15% to 27% of the total work in their profession or sector without population in the developed world. In the re-training. As a consequence many high developing world it will rise from 6% to skilled workers often end up in low paid 14%. The highest birth rates are found in jobs in their new country. the developing world, arguably in those Whilst migration has an impact on countries least able to support their existing employment issues, it also has an impact population. By contrast, in many developed on issues of social cohesion and countries the birth rates have fallen inclusiveness. The global mobility of dramatically, and consequently there are labour and capital has been on-going for fewer economically active people. The many centuries but it has intensified over World Future Society reports that the recent decades. Global migration has workforce will shrink by 1% per year, over both positive and negative impacts on a the next ten years. From 2030 this is wide range of issues including social forecast to increase to 1.5% per annum. capital, identity and knowledge. Urbanisation These global mega trends create both The United Nations HABITAT report 2004 opportunities and threats. This means that predicted that by 2030 around 60% of the the strategic agenda of tomorrow is a world’s population will live in a city. It is unique interpretation of these trends and also relevant today to talk about a trend their impact on the city in practical terms. called “metropolitanisation”. This term The issues are complex and changes refers to the growing influence of large happen rapidly. cities on the economic health and prosperity of wider regions and in some The following challenges will have a cases nations. As David Miller, Mayor of significant impact on cities: Toronto, expresses it: “When Toronto was • Ageing population causing increased sick the whole country caught a cold”. In financial burdens on health and welfare that instance, the national economy of systems; Canada shrunk by approximately 1% because of the SARS outbreak in Toronto. • Economic restructuring, increased unemployment and the end of ‘life- Strategic questions: Migration long’ working; Urbanisation is also linked to increased • What indicators do we look for in our • Disasters including natural global migration. Each and every one of research and analysis?; catastrophes, terrorism and epidemics the cities we spoke to cited increasing (HIV/ AIDS, Avian Flu); migration as a major issue. There is no • What do we see around the corner?; doubt that increased migration presents • Crime (not least economic), safety and • What do the trends mean for the major challenges around social cohesion, security; city/community as a whole?; and integration and employment. However, it also presents great opportunities as cities • Migration and immigration (people and • How do we develop a strategic city capitalise on “knowledge migration”. knowledge), segregation and poverty; compass (intelligence system) that One aspect of knowledge migration is the • Social cohesion and equality; helps us understand and act on expertise and experience that is lost when changes in the world, before it is too companies relocate or outsource parts of • Sustainable development and their business. Another factor to be economic growth from both the local late? considered is how knowledge and skills of and global perspective; immigrant communities can be16 The way to the future in cities
  21. 21. • Environmental management – pollution • Privatisation and outsourcing, including in all its forms, waste and lack of water; partnerships (PPP);• Energy consumption and energy prices; • Effective e-government and ‘24-hour’ citizen-focussed access;• Provision of good quality affordable housing; • Creating new arenas for dialogue• Connectivity – effective public transport between the city and its stakeholders; and electronic motorways; • New approaches in leadership and• Competition between cities and management – territorial or community regions, nationally and internationally – leadership. Leaders must provide a “city branding” and marketing; and vision and strategy for the whole community not just the administrative• Need for better dialogue between organisation; and citizens and city employees and the city leadership. • ‘ Entrepreneurial prototyping’ or the concept of piloting initiatives to testExamples of internal or organisational their effectiveness before makingglobal trends with relevance to cities are: wholesale change.• Financial pressures and the need for A good example of entrepreneurial new revenue streams; prototyping is the Swedish city of Gavel. In order to create growth and strategic• The need for new accounting models development in the city and in the region, and greater transparency; the city has developed a model that• Creating confidence and building integrates the city and its public public trust through citizen companies, private companies, the engagement and dialogue; university, the non-profit sector and the citizens who all make a special• Improving performance and the contribution to the city and the region. delivery of efficient and effective The relationships are underpinned by services; shared values and attitudes, which are• Decentralisation with accountability; considered as important elements for success, as illustrated in figure 4 below. Private University Supporting role Renewal through sector prototypes and attitude City government Facilitate Open dialogue Non-profit Enthusiasts associations CitizensFigure 4: Values and attitudes underpinning successful relationshipsThe way to the future in cities 17
  22. 22. Cities of the future - global competition, local leadership Summary of key challenges Financial capital Strategic questions: All cities face the pressure to do more facing cities with less, and to find new sources of • How do you facilitate creativity and From our conversations with city leaders revenue. Partnerships with the private innovation in your organisation and and managers we have been able to sector and outsourcing are becoming city?; and identify a number of common challenges more common, and cities need to find that cities are facing and responding to. ways to capture the risk-sharing and • How does your city manage the These correspond to the management of financial benefits that working with the issues of contemporary society and the various types of capital analysed in private sector can deliver. Cities are under the economy and how is it preparing this report and can be understood in pressure to be more transparent and to terms of: for the challenges to come? implement accounting models that provide them with this ability. Intellectual and social capital Cities everywhere recognise the Vision – the ticket to the future challenges in ensuring that they can The problem with good ideas and strong attract and foster the people, skills and vision is that realising them involves a lot capabilities they need to prosper in the of hard work. Leaders have to turn their knowledge economy. City administrations vision into reality. Actions are critical. need to become facilitators of change and Vision without action is meaningless. provide leadership. The municipality needs to provide the circumstances in which citizens and Democratic capital businesses can fulfil their potential. To create public trust and enhance their accountability, cities need to encourage Cities need both strong and interesting dialogue between citizens and leaders, vision and dreams for the future. These and to find new forums for collaboration need to be communicated to the citizens in between city leaders, city employees and order to inspire people with what cities can citizens. achieve, with them, in the future. So the “multi-mutual” benefits for strong visions in Cultural and leisure capital a city could be described as: Cities are competing at a regional, • Motivating people by giving hope and national and international level with one belief for the future; another to attract visitors, new residents and investment. They need to create and • Giving the organisation direction; maintain a distinctive and powerful brand. • Giving inspiration for new challenges; Environmental capital • Agreeing a common description of a Cities need to provide a clean, green and desirable future; and safe environment and deal with pollution in all its forms, manage waste and water • Providing a strategic position in resources. marketing, communicating and branding the city. Technical capital All cities face the problem of ensuring that We are entering a new paradigm of their infrastructure can support the rapidly society that requires new ways of thinking developing needs of their citizens and and acting. Futurist professor Rolf Jensen businesses in the city. Transport and from Copenhagen in Denmark identified a affordable housing are pressing issues in new type of emerging society that he calls many cities. Building appropriate the “Dream Society”. This society technological infrastructure, such as emphasises story telling, culture, values broadband, is also vital in terms of serving and ethos. In this society of the future a citizens more effectively and efficiently. city needs to emphasise its cultural heritage in order to distinguish itself from18 The way to the future in cities
  23. 23. other cities and to attract citizens. This How do leaders create the visions that willrequires professional skills in involve new actors and people fromcommunication and emotional different areas of society, with newintelligence. An intelligent city takes these agendas in new areas and new ways offactors into consideration by looking into working?its past for stories that will ‘touch citizens’hearts’ and by engaging the ‘storytellers’ Leaders must have the courage to try newthat will create culture and strengthen the ideas and to encourage robust dialoguesense of community spirit in the city. between politicians, administrators,Taking a diagrammatic approach to this companies, associations, and individuals.shows the history of this society gradually They need to create meeting places ordeveloping as described below. arenas where those stakeholders can exchange their ideas. In researching this Type of Society Most important report, we have seen how many cities asset have organised those different stakeholders in order to create a vision for Hunter Wild animals their cities. Numerous cities place a strong emphasis on facilitating this Agriculture Animals & land creative process, as the examples Industrial Iron and steel overleaf illustrate. Information Data Knowledge Creativity & innovation Experience Vision & dreamsThe same report describes the mostimportant and fastest growing markets.These are very important for every citywith a goal to become one of the cities ofthe future. The markets and driving forcesare: Market Driving force The markets of The experience adventure society The market of The tiredness of fellowship individualism The market for The ageing care population The who am I The identity crisis market among youth The market for The search for peace of mind happiness and health The market for The need to tell the conviction right storiesThe way to the future in cities 19
  24. 24. Cities of the future - global competition, local leadership City of Oslo – The blue and reduced the number of school leavers green city by improving the social standing of teachers and increasing their “City of Oslo towards 2020 is participation in school administration” simultaneously the environmental city, the cultural city and the knowledge Melbourne – Planning for the city. The environmental city is about future maintaining City of Oslo’s "blue-green” distinctiveness arising from its “City Plan 2010 sets out Melbourne City proximity to both the fjord and the Councils vision for the next 10 years. forest. The knowledge city is about Leaders wish to see a thriving and taking advantage of and developing sustainable city and the council is the lead we already have on the working with all its stakeholders to realise competition as one of the best- this vision and simultaneously pursue: educated people in Europe. The • economic prosperity; cultural city points forward. Our aim is • social equity; and to become Europe’s cultural capital in 2011, and a grand development is • environmental quality. taking place in the form of cultural Melbourne has already made many institutions in the city ie the building of positive changes to the natural and a new Opera house." physical environment, to the Citys culture, to the way it does business, Barcelona – City of knowledge and the way it values the community. “The vision of Barcelona in 2015 is that The Council has adopted a set of of a city characterised by the following: strategic directions to realise this An economy based on the vision. These directions are organised development of a value-added and around four themes: innovative culture depending on the growth of new industries: audiovisuals, • Connection and accessibility; design, etc. New uses of transport • Innovation and business vitality; based on the improvement of mobility. • Inclusiveness and engagement; and An education system that can guarantee proper training for our • Environmental responsibility.” human resources, having notably From city intelligence to Florida, Professor of regional economic development at Carnegie Mellon University intelligent cities in Pittsburgh, recognises the rise of the Today, many cities have formulated creative class of scientists, engineers, strategies for transforming themselves architects, educators, writers, artists, and into a ‘knowledge´ or ‘creative’ city. These entertainers. The creative class is concepts are driven by rapid economic characterised by creativity, individuality, and societal change. In these modern diversity, and merit. Creative people have cities citizens’ knowledge, creativity and specific demands of a city. They want innovation are identified as the driving action and experience, a dynamic place force of wealth creation. Knowledge cities which offers them the opportunity to be value the quality and density of creative, the possibility of expressing educational and research excellence and themselves and the chance to develop as of redeveloping old industrial areas into individuals (Florida, 2002). Either called centres for knowledge workers. knowledge workers or the creative class, these are the people that the modern city Creative cities make an effort to provide the tries to attract: those that will contribute stimulation, diversity and richness of most to the city’s development. experiences for their citizens. Richard20 The way to the future in cities
  25. 25. An intelligent city is a work in progress An intelligent city needs to havethat tries to connect the past, present-day sustainability factors like those that made Intelligent citiesand future. The concept embraces many Ragusa one of the first intelligent cities in An example of an intelligent city isaspects of sustainable cities from history, history. the Republic of Ragusa identified bythe current knowledge and creative Other qualities are also necessary. For the Professor Stefan Dedijer, an innovatorsociety, and an estimation of what lies Dream Society, one of the most important of social intelligence, as one of theahead. Each city should learn from its aspects for the future of city is meeting first intelligent cities in history.past and historical heritage. But lessons places. An intelligent municipality needs Though little known, the Republic ofare available from other cities as well. to create the context where knowledge Ragusa, between the 14th and 19thResearch has shown that the following workers can exchange their ideas and centuries, enjoyed an impact farfactors have been decisive for the success engage their creativity. beyond its apparent size or power.of intelligent cities (Radovanovic, 2004): Ragusa was a city-state on the east An intelligent leadership also needs to coast of the Adriatic Sea that• Political stamina and government understand the extent of the stock of the sustained independence through five engagement; city’s most important resource; intellectual centuries despite being throughout its• Organised Intelligence and Security; capital. Mapping intellectual capital history an easy target for the great• The Spirit of Ragusa and cohesiveness enables a city leadership to allocate its expansionist powers including (see opposite); resources more effectively and manage Venice, and the Ottoman and them appropriately. A rating of intellectual Hapsburg empires. The city is• Diversity; capital is also likely to be used by interesting because it exemplified• Rich cultural life; international companies as an important sustainable development, skilfully tool for selecting an international leveraged from the city’s intellectual• Scientific environment and knowledge destination for investment. capital and organised municipal tradition; and intelligence. Ragusa had one of the• Favourable geographical position and Figure 5 shows some of the main first examples of organised municipal infrastructure for transport and characteristics of an intelligent city: intelligence in the world. All citizens communication. abroad served as the “eyes and ears” of the municipal government to collect strategic information that The Dream could be traded or used in contacts Knowledge economy and Informational Society Society with the great powers. Factors: Factors: Factors: Knowledge Creativity Storytellers Human intellect Creative class Story/legend Innovation Creative milieu IC mapping Meeting place Real city Social intellect Virtual city Virtual/real Knowledge Creative Intelligent City City City RAGUSA • Municipal intelligence • Intelligent Leadership engaged with specific roles Organised intelligence • Mapping of IC Government engagement • Good story to create spirit and The spirit/homogeneity homogeneity • Networking arena and activities • Virtual/real city Source: Radovanovic, D. (2004)Figure 5: Characteristics of an intelligent cityThe way to the future in cities 21

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