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  • 1. Cities of the futureglobal competition, local leadership**connectedthinking
  • 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. Cities of the future - global competition, local leadership
  • 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. • 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. 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. 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. 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. 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
  • 26. Cities of the future - global competition, local leadership Cities need to be oriented towards the implement numerous small initiatives. future; to sense and analyse what will be Therefore each city has to develop its important tomorrow. To find out what to USP (Unique Selling or Strategic Points). expect in the future they need to gather data that enables them to create In building a USP, cities bolster their scenarios and estimate future trends. chances of winning the competition to Every city needs an engaged leadership attract the people, businesses and events to motivate its citizens and create a spirit, that together will help to create a which sees everybody wishing to prosperous future. contribute, and feel both satisfied with The qualities, institutions and attitudes and part of that community. that can help to create a city’s USP Intelligent leadership should engage include: individuals that will have specific • Historical events – fundamental to the development roles, as the City of culture and story of the city; Barcelona did by assigning a special councillor to promote the ‘City of • Physical landmarks – buildings and Knowledge’ concept. All incumbents in architecture; these specialist roles should actively work on the networks that are essential for • Cultural institutions and sport teams, organised intelligence, creativity and the including events and exhibitions; development of intellectual capital. All city • Nature, environment and climate; sectors and arenas are as small “islands” of intelligence gathering information for • Demographic structure; their own purposes. The trick is to join them together and foster collaboration. So • Traditions and civic culture, attitude, it is time to go from city intelligence to spirit and mindset; intelligent cities. • Knowledge centres – universities; Creating a corporate identity • Approach to the future – openness; and brand in the city • Approach to “different” people - The big cities of today and tomorrow inclusiveness; operate in a constant condition of competition. They compete for positioning • Global connections – networks and and attractiveness through strategic city diversity; branding. Michael Porter said the “strategy is playing a different game to • Interactivity – between the city and your competitors” In other words, every corporate society; city needs to find ways to be unique, and • Speed of communication – feedback to develop an interesting profile that puts between leadership in the city it in pole position. It needs to stand out organisation and citizens; from the crowd to maximise the attention it receives. To do this it needs to create • Adaptability – degree of innovation and values that set it apart from its development; and competitors. • Attractiveness to people, companies This requires strategic thinking on all and money (not least venture capital). levels and in all dimensions. The well- known military leader General Von We have observed a growing trend Klausewitz defined strategy as the “art of amongst cities to opt for a brand or image knowing how to win a war and tactics as which emphasises quality of life – clean, the way of organising the divisions and green, safe and peaceful environments – troops in a battle”. Cities need to have not normally associated with the bustling visions and dreams before they try to metropolis.22 The way to the future in cities
  • 27. Cities of the future need The leadership processleaders of the future The elements that are particularly Strategic question:In our experience it is people that make important in the leadership process are: • What are the components of yourthe difference. So it follows that the cities city brand (strategic assets) and • Confidence and integrity;of the future need the leaders of the what makes you different from • True communication and open other cities?future. dialogue;The number-one task for today’s and • Relations built upon trust and empathy;tomorrow’s leaders is to “put people first”.This is done by developing a leadership • Personal and professional authority;style that addresses the needs of both andcity employees and citizens, making both • Fellowship (helping each other).groups happy by fulfilling their personaldreams and visions for the city. City Creative leaders with a passion for theirleaders therefore have one of the future’s task offer a bright future. Successfulmost important roles. They have the mayors, city managers and other topopportunity to create growth and leaders in cities integrate both strategicdevelopment for the broadest number of management (direction) and leadershiporganisations, businesses and individuals (relationship) to provide the framework forwith a stake in the future. success and the means to achieving it.The word leadership, which has its origin Good leaders inspire and empower thein “leading” and synonymous with “guide people around them by creating andand standard – bearer”, speaks for itself. developing an energising culture. TheOther definitions of leadership can be: paradigm of the future requires leaders that can show leadership in a number of• “An ability to realise an intention or different ways. vision and to retain it, to turn that which was just an idea into reality”; These include:• “A creative and open process creating • Intellectually – thinking in new and a life-giving servant relationship better ways in order to challenge the between people, while fulfilling a organisation around them; personal vision”; and • Professionally – understanding the balance between needs and resources• “To energise the people”. in the public sector;The interesting paradox with leadership is • Socially – exemplifying how to build,the relationship between leading and establish and maintain goodfollowing: relationships (culture) in working• If no one is leading, no one can follow; groups and networks; and • Emotionally – having the ability to empathise with people’s feelings in a• If no one is following, no one is leading. constructive way; andThese two statements underline that • Culturally – having the sensitivity toleadership is relationship based. create cities for all cultures that exist in harmony.The way to the future in cities 23
  • 28. Cities of the future - global competition, local leadership Chief/Decision maker Integrated and personal Model/ Re-establisher/ leadership Standard- Limit settler bearer - adapted to the situation Servant/Coach Figure 6: Leadership roles How do these leaders reach these heights? Cultural development What does it require from them in their own development? Using the experiences A leader creates and affects the culture in gleaned from PwCs leadership the organisation. One of the most development program for city managers, important roles for leaders is to create a called “Leaders of the Future”, we see a manageable, creative and positive culture. pattern, which is illustrated in figure 6 above. Good leaders have the capacity to But how do leaders get the most out of integrate different roles and attitudes in their their employers? Mr. Frank Fairbanks the leadership. At the same time they have an city manager of Phoenix, Arizona states, ongoing dialogue with the people they are “Our task as leaders is to acknowledge leading based upon trust. This enables the peaks of our people’s working lives”. City of Phoenix – Vision & them to make decisions regarding future Which provides a good example of how a Values directions in the short and long term. Also leader creates a positive culture. to set limits when needed, even when there • We are dedicated to serving our is a risk of being unpopular. Leaders need to look beyond their own customers; organisation, and learn from the The challenge is “simply” to apply the experience of others. Many leaders focus • We value and respect diversity; right attitude to a unique situation or to a on the importance of explaining the unique person. existing corporate culture to new people. • We work as a team; This is of course important, but not To personalise this type of leadership enough. Leaders need to find a balance • We each do all we can; requires managing oneself, and a good between maintaining the existing culture understanding of your personal leadership and encouraging new thoughts, which • We learn, change and improve; style; including the way you learn, communi- means accepting renewal. • We focus on results; cate, manage conflict and lead others. The most important task for city leaders is • We work with integrity; and The most evident trend in leadership is to understand and integrate the internal organisational development or what’s • We make Phoenix better. and external perspective offered by social called value-based leadership. The city of intelligence into their vision for the future, Phoenix in USA has a series of value This requires a deep understanding and to create ‘opportunity space for statements as the base for how the of existing and desirable cultures in citizens and employees to innovate. corporate leadership and all employees the organisation. should think and act in their daily work (see opposite).24 The way to the future in cities
  • 29. Conclusion Leadership – An example Strategic questions:Effective leadership is critical for the • How do you implement yoursuccessful and sustainable development from Sweden. personal leadership in relation toof our cities. Leaders need to set a clear In one of the biggest counties in yourself and the organisation?;vision for the future and steer their Sweden, PwC was asked to analyse andorganisations and communities towards sickness rate and reasons forthat vision and those goals. They must • Do you have a big difference absences from work in theforecast and interpret trends, and create between the existing and desired organisation. The results were veryopportunities for growth and culture in your organisation? clear. In the departments withdevelopment. Similarly, they must respond leaders who care, see and listen toto the global, national and local the people, the sickness rate waschallenges to sustain a high quality of life considerably lower. Another keyfor their citizens. Leaders have a key role factor in creating a healthyto play in developing the strong brand and department was the opportunity forrich cultural scene, which can elevate everyone to have influence over theircities on to the global stage. work.The way to the future in cities 25
  • 30. 26
  • 31. Cities of the futureChapter 3Managing capitalsThis chapter of our report sets out some of the keychallenges that city governments face in anticipating andresponding to the needs and demands of theircommunities. To be able to address these challenges, citygovernments need to operate as efficiently and effectivelyas possible, embracing modern management practicesand promoting a culture that secures excellence in allareas of activity while continuously seeking to improve.Managing capitals 27
  • 32. Cities of the future - global competition, local leadership Introduction ensure that employees have the right skills to manage new programmes and City governments are complex organisations new ways of delivering services. Without that have to meet the needs of a great many these, people employed by the city different, and sometimes competing, become a “wasting asset”, with dire stakeholders. To achieve their goals, they consequences for city services. have to develop and adapt new organisational models and incorporate new Efficiency: Human resource (HR) processes information and communications need to be efficient, both in terms of costs technologies to help them manage change and responsiveness. Line managers need effectively. To become high-performing to take direct responsibility for people organisations, city governments must management, with central HR providing a develop – and in some cases transform – strategic and advisory role. Cities have to their capabilities in line with the dynamic be responsive to change, and this means global environment in which they operate. that they must have swift and efficient recruitment processes and they also need Just how successful city governments are to have the right redeployment / in meeting these challenges is largely redundancy processes. People management - dependent on how competent they are in managing internally three capitals in Customisation: It is necessary to have HR Hull City Council, UK particular: policies and processes in place for Background: As part of its broader different groups of staff. Four possible • People; programme of improvement Hull City approaches to people management are • Property; and set out in figure 7 below. Council required a review of the skills and competencies across its workforce, • Processes. There may be a case for managing groups including all grades of staff and all service People of workers as being in any of the People areas. The aim of this review was to enable as a Commodity, ‘People as an asset, the Council to improve its approaches to Without the services of motivated, skilled and Caring Employer quadrants. workforce development. Part of our work and well-managed people, city However, inappropriate approaches to included a review of approaches to governments will flounder regardless of people management can lead to people workforce development in other local the quality of their vision and ambitions. drifting to the Low interest quadrant – authorities to identify best practice and Good practice in people management falls the one quadrant that can never be conduct a formal bench-marking exercise into three key areas: effective and sustainable. using quantitative data. What we did: We carried out a Investment: people require careful The case study opposite shows how we comprehensive review of skills and management and significant investment in helped the government of a large city in competencies across the Council and training and development. Cities need to the UK to develop its workforce. local government more widely, using a range of research tools. We then made a number of recommendations to help High People as a commodity People as an asset improve skill and competency levels within the Council. Following our report we were Job not a career A career for good people Performance focus invited back to develop a competency Performance at all costs Business and people framework for the Council in which we development aligned consulted widely with employees across the Council. Low interest Caring employer Outcome: We are in the process implementing our Competency Frame- Just a job A job for life work in three pilot sites across the Council Low job satisfaction Seniority over performance in areas including Performance Low High Management and Recruitment. Our wider People focus recommendations are also being implemented as part of the Council’s Figure 7: Approaches to people management recovery programme.28 Managing capitals
  • 33. Property • Strong business processes including supply chain management, customer Case study - UK MunicipalLand and buildings are arguably the most relationship management, financialvisible and identifiable aspect of front-line management, performance Authorityservices and a major influence on how management, data management, Over recent years this authority hascity governments are perceived. They programme management and risk taken a stepped approach to improvingprovide the facilities for conducting management; and its buildings. This has included:business and are essential for supporting • Reorganising corporate governance • Sourcing the right expertise andthe technology, business processes and arrangements to create a senior- capacity to deal with both the strategiccultural change required to raise a city officer steering group responsible for and day-to-day management.government’s performance. property assets and investmentThey are also inextricably linked with city Processes strategy;regeneration. City governments need efficient and • Outsourcing property services to thePoor property asset management means: effective processes in place to secure an private sector; appropriate return on their investment in • Challenging the rationale of• Significant wasted resources – annual people and property. There are a number continuing to own property, resulting investment and expenditure on of particular areas where city in a significant disposal programme; property is a significant cost for city governments should aim to have in place and governments where land prices are “best-in-class” processes to get the most • A property improvement programme relatively high; out of their assets and to drive and linked to community regeneration,• Non-compliance with buildings and support a culture of continuous which includes bringing many services workplace statutory and regulatory improvement: together under one roof and investing codes such as health and safety; • Programme and project management in modern office workspace that (PPM); supports new ways of working.• Disruption to service delivery if the • Performance management; physical infrastructure fails or does not support business processes; and • Procurement; • Risk management; and• Staff dissatisfaction leading to • Reputation and brand management. problems with staff retention and recruitment.Good property asset management andplanning in city government cuts acrossdepartmental, administrative andgeographic boundaries. It includes:• Strong governance for corporate property asset management, including the active involvement of senior officers and elected members;• A corporate asset strategy that responds to the property implications of the corporate vision and sets out a co-ordinated medium to long term investment, divestment and management plan;• Regular challenge of property needs and options for meeting future requirements together with a transparent framework for prioritising projects;Managing capitals 29
  • 34. Cities of the future - global competition, local leadership Programme and project Professional skills in urban and Programme management - metropolitan issues, more efficient use of management (PPM) resources and more transparency in London Borough of A recent global study by PwC shows that management practices are essential for Islington the balance between service delivery improving the living conditions in big cities (operations) and projects within in the next few years.” But even where a One city authority that has benefited organisations (whether public or private clear vision and strategy is in place the from an investment in programme sector) is shifting over time. The pressure two are often disconnected. The path that management is the London Borough to deliver change, to be seen to be should ensure each and every project of Islington. Through the challenges responsive to increasingly sophisticated contributes to realising the objectives and of the UK government initiatives, customer demands, to be proactive and benefits outlined in the strategy is unclear. Comprehensive Performance flexible is shifting the balance towards Assessment (CPA), Best Value and more project-based working. Good programme management addresses ambitious policy initiatives, the this by providing a structured framework London Borough of Islington faced In many instances city government has for defining and implementing change the biggest change agenda in its lagged behind the private sector and within the organisation. A corporate recent history. some central government bodies in programme office, used in conjunction responding to this change of emphasis. with other activities such as training and In response Islington generated a Capacity, in terms of the skills required to the introduction of controls and large number of initiatives or deliver projects, is often inadequate as is supporting systems, is one of the most projects, embedded within the the senior management capacity to plan, effective methods of embedding PPM in Council’s Improvement Plan and in steer and lead across large portfolios of the organisation. Through our extensive its “Big Projects” programme. PwC projects. The centrality of this ability is experience of setting up, running and supported them in the establishment emphasised by Martus Tavares, Secretary supporting programme management of a corporate programme office that for Economy and Planning of the State of systems in city government we have worked at the heart of the São Paulo when he says “Without a vision developed a model that demonstrates programme to ensure accurate of the future and a focus on long-term how a corporate programme office can be management information was planning, we will not be able to make best used to monitor and support effective provided to the right individuals to use of the scarce resources available. PPM within the organisation. make the right decisions to steer, manage issues and address risks. The programme office was able to offer challenge and support to project teams, sponsors and senior management to ensure that issues were dealt with and that the overall understanding, skills and therefore capacity were being developed across the Council. Project management tools, templates and training were also developed to underpin these behavioural developments. Islington’s Corporate programme Office is seen as a best-practice example that has supported the London Borough of Islington to improve their performance and CPA rating.30 Managing capitals
  • 35. Performance management Successful performance management requires: Performance management -Effective performance management lies at • Clear, well communicated and well NYCthe heart of all good councils andunderpins the delivery of improved local understood priorities to set common One of the most successful examplesservices. If you don’t know how good or goals for all to work to; of performance management systemsbad you are, you can’t identify the scope • Alignment of human, financial and seen in the public sector is Comstat,for improvement. The changing climate of physical resources to those priorities; a data-driven approach to measuringmunicipal government means that the crime and police performance in • A focused set of performance tackling it. Comstat’s use in New Yorkmanagement of performance now requires indicators, and realistic but challenging has been seen as a vital element ofa more sophisticated approach – one that targets to motivate staff to deliver the substantial reduction in crime thatlooks to measure outcomes rather than improvements; has transformed New York from ainputs, and one that is readilycommunicated to all. • Clear accountability and responsibility; major crime centre to one of America’s safest cities. • Regular review of performance; and • Clear actions to improve performance Comstat was introduced to New York where needed. by Commissioner William Bratton in 1994. The system records every Figure 8 below describes a framework of instance of crime, from low-level to performance management that draws serious, in every police district and together these key elements into a cycle once a week the heads of each of continuous service improvement. precinct are asked to explain their performance in front of their fellow senior officers. When it was first introduced, Comstat met with significant resistance from some officers, but has now gained wide acceptance as a powerful tool for Strategy and measuring and improving objectives performance. Comstat’s success in New York has been replicated by Take Indicators action forces throughout the United States. What do we and targets want to achieve? How will we know when we have achieved it? Evaluate What are we going to do to performance achieve it? Roles and and responsibilities sustainability How do we improve our performance? Progress Embed tracking processesFigure 8: Framework for Performance ManagementManaging capitals 31
  • 36. Cities of the future - global competition, local leadership Procurement Attitudes and culture – perception of Procurement - London procurers of the role of the supply base Effective procurement is one of the Borough of Southwark hallmarks of all successful organisations. Entry and exit barriers – costs of A good example of a city authority entry/exit, understanding cost profile, adopting this kind of approach is the A simple, yet comprehensive, approach is fixed costs etc, turnover of suppliers London Borough of Southwark. shown in Figure 9 below Short term versus long term contracts – We supported the Council by: Within this methodology is the implicit reflecting certainty of requirement and need to understand the market conditions • Writing and developing the level of demand. Impact of R&D. reflecting the fact that achieving effective Council’s draft Procurement deals is dependent upon a number of ‘Best Value’ deals is not simply about Strategy; issues that impact at the market level. securing the deals with the lowest unit These issues include: cost and assuming people will use them. • Assisting in the drafting and developing of the Council’s In any purchaser/supplier relationship Procurement policy and practice – attitude procurement guidance; and there is a need to strike the right balance and process adopted by procurers between buyers; and sellers’ motivations. • Assisting in the review of the Efficiency versus diversity – Appropriate In applying contracts it is critical to procurement related sections of level of aggregation, optimising economies understand the relative importance of the Council’s standing orders and minimising diseconomies, diversity of supply influences upon the purchaser and how recommending improvements to base, choice, standardisation, replication these can be balanced with the influences allow them to conform with good upon the supplier. practice Regulation – flexibility of response, level We then undertook a full-scale review of administrative/bureaucratic burden to identify quick wins to release cash savings to the frontline, this included identifying and benchmarking key Phase III Driving contract adoption Phase I Identify and quantify categories and identifying Procurement infrastructure the savings opportunity opportunities to use reverse auction Alignment of people, Procurement analyser technology to drive savings. PwC processes and oney provided project management organisation em th I Extract and support throughout the project. PwC Identification and categorise spend p ee .F has a team of procurement specialists implementation of Analyse by III. K ind performance business, supplier, with the experience to undertake a measures category, location th review of processes in this area and Ensuring etc. e money identify substantial cost savings. appropriate Establish the true technology weight of buying power Phase II Getting the contracts right II. Ge in the first place t the oney m Strategic sourcing Identify potential suppliers Understand market opportunities Analyse and understand business requirements Negotiate preferential deals Figure 9: The procurement cycle32 Managing capitals
  • 37. Risk management when deployed independently and in isolation of other key organisationalIn dealing with the change agendas facing functions, are quite simply less effectivecities today, effective management of risk than they could or should be.can help cities demonstrate customerservice excellence and compliance with A fully-integrated approach helps to formcentral government guidelines, whilst at the an ethical and operational backbone, andsame time achieving wider city objectives. ensures better horizon scanning of emerging risks, proper probity of risksIn the past, risk management, with partners and contractors and fullorganisational governance and compliance assessment of risks to the public. Thehave generally been viewed and managed framework for risk integrates risk,as discrete areas. However, this approach governance and compliance with controls,often results in accountability and standards and legislation and is illustratedcommunication gaps, as well as confusion. in figure 10 below:City-wide risk management approaches Emerging standards E an me gy d n rg e olo e Setting objectives, tone, ec r n in req policies, risk appetite and Process an cultu w g u ir h accountabilities. sta eme dt Governance Monitoring performance. ng nda nts Identifying and assessing Enabli risks that may affect the rds Enterprise ability to achieve objectives and risk management determining risk response strategies and control activities. Compliance Operating in accordance with objectives and ensuring adherence with laws and regulations, internal Extended enterprise policies and value chain and procedures, and stakeholder commitment. Ethical cultureFigure 10: Risk management In short, what this means is that risk management is most effective when combined with a range of organisational governance and compliance activities, and linked to the achievement of performance objectives.Managing capitals 33
  • 38. Cities of the future - global competition, local leadership Reputation and brand management Reputation is an asset with a value which can rise and fall. It consists of two principal ingredients: a city government’s actual performance; and stakeholders’ perceptions of it (the latter being more powerful). Sound reputation management, therefore, focuses on improving both performance and the city government’s relationships with its key stakeholders (see figure 11 below). Reputational management Policy development and performance improvement Outcome - Reception + Communications and stakeholder engagement Start - Reality + Figure 11: Reputation Management The product of good reputation to greater scrutiny and regulation, and management is trust – there is little tolerance of mistakes – or the public sector equivalent of shareholder even of good cities “coasting”. Individual value. Once earned, this serves as a citizens are empowered, active often on reservoir of goodwill and understanding, single issues, and now demand evidence which can be drawn on in a crisis. before believing. Funded through tax, municipal authorities operate in an arena Brand is the experience employees and which rapidly becomes emotionally customers get from an organisation, and charged. In short, they need a “licence to the associations it evokes. Brand is the operate” from the public. city government’s persona, and a positive brand means the government lives by a City government communications budgets set of values of which residents approve. are increasing, as city leaders buy into these arguments. The stakes in the reputation game have recently risen steeply. Municipal A good reputation can be created and authorities, as an example, now have built, not just defended. Managing greater freedoms and a higher profile in reputation divides between promotional their community; but they are also subject and protective work. The promotional34 Managing capitals
  • 39. aspect is linked to the city government’s • Supported by a tested plan for crises.desire for self-improvement. Case study - AmsterdamIt needs to be seen as a process, not an Mistakes to avoid in city reputation management include: I AMsterdam – Building a brandevent. This balance between theseaspects is analogous to the balance ‘I AMsterdam’ is the motto that the • Regarding reputation (or city has created to express its visionbetween proactive and reactive communications or PR) as a superficial, of the city and its people. The citycommunications. cosmetic, short-term or tactical activity; has developed a branding strategyCity authorities will know of the mounting that puts people at its centre and • Allowing words or claims to get aheadresearch evidence that there are emphasizes the attractions of of reality – creating mismatch whichdemonstrable links between residents Amsterdam as a place to live, to undermines the city’s credibility;feeling well informed by their city work, to invest and visit.government, and higher levels of • Allowing gaps to develop betweencustomer satisfaction. The principal stakeholder expectation, and actual The campaign seeks to bring out thedrivers of positive perceptions among performance; and diversity and innovation ofresidents are street-scene services which Amsterdam’s people and stress howthey can see; good communication and • Failing to identify key stakeholders, and these qualities manifest themselves inexplanation; and whether they feel the thus failing to communicate with them. the creative, intellectual and culturalauthority delivers value for money. outputs readily associated with the “A reputation arrives on foot, but leaves city, as well as the technical prowessGood practice in City authority reputation by racehorse.” (Chris Cramer, CNN) that the city demonstrates in itsmanagement requires it to be: infrastructural innovations – such as City’s should be mindful that just one the way that it handles its water and• Led by real behaviour and actual incident, or the actions of one employee, its status as a centre for hi- performance, part of ’DNA’, not by can undo years of effort spent carefully technology and research. words and claims; building a good reputation. The campaign uses the people of• Within a framework of communications Amsterdam in the role of and risk management strategies; ‘I AMbassadors’ to personalise the• Supported by informed staff acting as city’s promotion and connect visitors “ambassadors”; to the experience of real citizens, living, working and playing in the city.• Long-term, strategic in outlook, and sponsored by top management; Why I AMsterdam?• Based on an understanding of who Preliminary research indicated that stakeholders are and the best channels the motto, now registered as a for engaging with them; trademark, was an eye-catching and memorable theme that emphasised• Meaningful consultation with feedback Amsterdam’s strengths. The brand leading to action; and now supports a global campaign and is used across the city’s promotional activities and with a number of partners from businesses, cultural organisations and others seeking to promote the city.Managing capitals 35
  • 40. Cities of the futureChapter 4Capitals, the key issuesIn this chapter we examine each of the capitals in moredetail. Exploring the key issues that city leaders andmanagers need to address, including;4.1 Intellectual and Social capital4.2 Democratic capital4.3 Cultural and leisure capital4.4 Environmental capital4.5 Technical capital4.6 Financial capitalCapitals, the key issues 37
  • 41. 4.1 Intellectual and social capital Introduction This section brings together the elements that, taken together, create and influence a Cities are engaged in a global competition city’s stock of intellectual capital, including: for investment. The calibre, educational achievement and the creativity of their • Human capital; citizens are therefore vital in each city’s • Social capital; efforts to attract new businesses and • Organisational capital; people to fuel their prosperity. • Process capital; and Mrs Monica Mæland of the City of • Innovation capital. Bergen, Norway, identifies this phenomenon as a global trend and says: What is intellectual capital? “Globalisation and increased international A city’s intellectual capital is a combination mobility in higher education create of its human and organisational capitals. In challenges to the city’s ability to attract the knowledge economy, human capital and keep talented and highly qualified represents one of the most important young people, and to secure the high sources of value. It provides knowledge, levels of expertise which make the city an creativity and the ability to innovate. attractive place for commercial Organisational capital refers to all non- development.” human stocks of knowledge embedded in This section of our report examines the hardware, software, databases and the factors that influence a city’s stock of concepts and values, organisational intellectual capital, some of the challenges structures and guiding principles of that cities face in managing and maximising organisations or companies that support it and the strategies that various cities have people’s everyday work (Bonfour & adopted to meet those challenges. Edvinsson, 2005). A number of different factors influence a Mapping and measuring intellectual city’s ability to grow and nurture its capital provides valuable information capabilities. These include, amongst about the skills and resources available others, welfare provision, the creation of within both government organisations and formal and informal networks to exchange the general population. With this knowledge and ideas, knowledge information, governments are better management, policies to help immigrants placed to take strategic decisions about to integrate as well as encouraging their use of resources and to plan the voluntary initiatives. economic growth of their city. Intellectual capital Human Organisational capital capital Social Innovation Process capital capital capital Source: IC – Navigator – Leif Edvinsson modified by Dragana Radovanovic (2005) Figure 12: Components of intellectual capital38 Capitals, the key issues
  • 42. To illustrate the factors, which contribute cluster in the health industry. Recognisingto the development of intellectual capital, these strengths helps drive the strategywe have drawn on the IC Navigator-model for economic growth and attractdeveloped by Professor Leif Edvinsson of investment to the city.Intellectual Capital at Lund University, asillustrated in figure 12. Most private and public organisations do not measure the real value of theirThe lower tier of the model shows three intellectual capital. They traditionally thinkdifferent types of capital each of which of assets in terms of financial reserves orsupports the development of human and tangible commodities such as buildingsorganisational capital including: and IT hardware. Moreover, budget restraints in many organisations,Social capital comprising both formal and Strategic questions: especially in the public sector, have led toinformal social networks including the poor levels of investment in intangible Has your city understood, measuredinteraction among citizens and social assets such as knowledge, research and and mapped its intellectual capital? Doconnectivity. development, learning and alliances and you invest in right skills and knowledge networks for social innovation. of your citizens?Process capital involving both human andorganisational capital. It is process capital However, an increasing number of not-for-that makes the most of the investment profit organisations, cities and countriesmade in social capital. are working on mapping and measuring their intellectual capital. The first countryInnovation capital refers to how the city to apply the intellectual capital paradigmrenews and adapts its human and on a national level was Sweden in 1996organisational capital to the demands of followed by Israel, Netherlands, Denmark,the rapidly changing global economic Norway, and some Middle Easternenvironment. countries. Other countries, such asThe nature of the interaction between Australia, Canada, Finland and Icelandthese three capitals will determine the have also begun measuring intellectualstrength and extent of human and capital. The results of their efforts and theorganisational capital present in any lessons learned will be of great value toorganisation or city, which in turn will modern cities across the globe (Bonfour &determine the overall level of intellectual Edvinsson 2005).capital. Human capitalIntellectual capital has a significant impacton the productivity and competitiveness In an interview conducted for this report,of cities and regions, and nations as a Mayor Nakada of the city of Yokohamawhole. Cities explicitly recognise this, and remarked that one of the most important Strategic questions:have developed policies that are designed issues facing cities today is “to realise a Who do you wish to attract to yourto improve their competitive position, society which makes the most of its city? What do those people look for insuch as Valencia’s which aims to “foster citizens’ potential”. This is a view that is a city?the creation of companies in the sectors echoed by the other city leaders andclosest to the knowledge economy and to officials we interviewed for this report.provide opportunities to all in order to There is little doubt that one of the mainaccess information and knowledge responsibilities for governments is totechnologies.” invest in peoples skills and competencies in order to nourish the human capital ofBerlin’s aim is to position the city in the city. A city, after all, is made up of thegrowth markets of the future. To do this people who live and work in managers have identified a critical In our model of intellectual capital, humanmass of core competencies in the sectors capital refers to staff within public sectorof information technology, communication organisations, as well as citizens andtechnology and media, as well as medical customers. It is important for any city tosystems, traffic engineering and optical understand and map its knowledge andsystems. Berlin also has an outstanding competencies.Capitals, the key issues 39
  • 43. Cities of the future - global competition, local leadership Cities need to attract creative talent to live neighbourhood watch); and in the city and to work in public sector • Physical and mental health (i.e. through organisations and the local economy. It is sport and volunteering). important that governments create relationships with citizens and potential One of the most prominent experts in citizens in order to attract the optimum social capital, Professor Robert D. spread of skills across the population. Putnam, defines the idea of social capital as social networks and the associated The evolution of the knowledge economy norms of reciprocity that create value for and the focus on human capital and people who are involved in them. Putnam intellectual capabilities demands a greater identifies formal and informal forms of understanding of a city’s ‘softer’ assets. It is social capital. Examples of formal social of course more difficult to measure an capital include societies, clubs and intangible asset such as intellectual capital. special interest organisations that have The evidence suggests that most cities do formal membership structures. Informal not record or measure it. What is evident, social capital refers to social gatherings at however, from our conversations with city restaurants and bars, for example. Both leaders, is the increasing competition forms of social capital involve networks between cities to attract skilled, offering people the possibility of entrepreneurial people to live and work in interaction, to understand each others’ their cities. For example in Brisbane, needs and to help each other and their Australia, the city council has set out a communities in general. number of initiatives aimed to make the city itself an ‘employer of choice’, and in a Research shows that a low crime rate in a similar vein, the CEO of the city of Perth, neighbourhood is connected with how Frank Edwards says: “The war for talent is many neighbours are on first-name terms a challenge for most businesses, including with each other. Social networks bring the city of Perth itself.” great value for the people directly involved An essential task for cities, therefore, is to and for society in general. For instance, understand what it is that makes them although an individual is not part of the attractive to the right people and how to network, by living in a neighbourhood with ensure that those qualities are maintained. high social capital where people look after each other, he or she feels safe in the neighbourhood, i.e. their home has been Social capital protected by the social capital of the Social capital builds up when people interact community (Putnam R, 2005). within social networks. Social networks in turn provide substantial assets both for Social capital is critical for understanding individuals and for communities. For the development of a city or a region. This instance, using networks for sharing both capital increases efficiency through trust personal and municipal intelligence is one of and honesty, and it encourages better the most effective ways of keeping up with performance as well as encouraging people changing times. Further, it is generally known to honour commitments voluntarily. These that the communities we live in can affect factors can reduce transaction costs our productivity and quality of life. In associated with monitoring, negotiating, environments where social capital is high, litigating and enforcing formal agreements citizens feel safe and well looked after and but they are totally dependent on the social view government as being more effective. capital of the workforce and citizens. There is a strong correlation between high The welfare challenge and social levels of social capital and positive connectivity experiences of: Levels of voluntary participation in • Education and employment; community activities and in local democracy • Housing, transport and urban design; have fallen in many modern cities. In general people view themselves as customers much • Crime and community safety (i.e. more than shapers of society, a view40 Capitals, the key issues
  • 44. echoed by the Chief Executive of Brisbane the issues facing city governments. InCity Council, Jude Munro: “The city of Africa, high mortality rates, due to HIV/Brisbane is also experiencing a growing AIDS, are one of the main issues for manyinwardness which manifests itself in metropolitan authorities. ”The Municipalitydecreased levels of volunteerism and social has identified the scourge of HIV/AIDS asconcern for others, along with a greater a primary business imperative,” notesfocus on self and family.” Duma Nkosi, Executive Mayor of Ekurhuleni Metropolitan Municipality.In many cities the level of social capitalamongst citizens is decreasing. The Fundamental structural changes to thecitizens’ philanthropic generosity and social global economy and labour markets haveconnectivity is lower today than in the past. altered the employment base in manyMany authors argue that this trend must be cities, often leading to problems with highreversed in order to create and sustain a levels of unemployment. For example, thegood quality of life. David Pitchford, Chief Financial Clerk of Vienna, JosefMelbourne’s Chief Executive, warns: “A Kramhöller, notes the impact of newmajor challenge for any city is to maintain political and economic realities in Europesocial equity and avoid a polarised society. as having a particular effect in ViennaDecreased interaction among a city’s “Due to different cost levels betweenpopulation can increase social problems Austria and the new member states,and divide its community.” outsourcing and relocation will increasingly take place. This is especiallyOver the next two decades the number of likely with migration of multinationaleconomically active people – in other words enterprises to cheaper Eastern Europeanthose paying tax – will decrease. At the locations and is a key issue.”same time, the number of peopledepending on public welfare will increase, There is increasing competition betweenwhich means many governments will not be cities to attract high-value, high-wageable to meet the costs of traditional welfare businesses in services such as researchservices without raising taxes significantly. and design, new technologies, financial and media industries. At the same time,Using social capital as an instrument to many cities have seen their traditionaltackle socio-economic problems is nothing manufacturing base eroded and with itnew for city governments. The City Manager many skilled jobs, only for them to beof Stockholm, Sweden, is considering using replaced by low-paid service jobs.volunteers to provide community andwelfare services. This is already common These problems in themselves are nothingpractice in Milan, Italy, where volunteers new. City leaders, therefore, mustdeliver 25% of welfare services. constantly look for new ways to sustain economic development and growth.“Poverty in the areas surrounding the city Social capital offers one way ofmeans that there is a trend to urban addressing these challenges.migration and this movement of poorpeople from outlying areas into the city Building social capitalplaces a strain on the city’s ability tomanage it,” says Ms. Vuyo Zituman, In order to stimulate citizens to createActing Municipal Manager of Nelson informal types of social capital, cityMandela Metropolitan Municipality. governments need to provide a variety ofPoverty is a fact in many big cities in the meeting places for citizens and governmentworld. Urbanisation and concentration of staff. Meeting places can be real, forthe people in to the cities only makes the example city-centre entertainment zones orsituation more difficult. cultural quarters or virtual, for example web- based forums, and community websites.Improving public health is a significantwelfare challenge. Significant increases in Increasing investment in social capital,the risk of epidemics, ageing populations especially in poorer or more deprivedand increased problems due to work neighbourhoods, can lead to improvementsrelated stress and burnout are some of in the overall quality of life. Engaging withCapitals, the key issues 41
  • 45. Cities of the future - global competition, local leadership citizens makes people feel involved in the Increased migration means that many decision-making process and promotes immigrants leave valuable ‘connections’ increased responsibility for local services behind and therefore experience isolation and the local environment. Increased when they first arrive in a new country. participation often leads to increased levels Migrant groups often minimise their loss of of collective action. It has been proven that social capital by choosing to congregate high levels of social capital lower the gap together in enclaves. Most cities display between the ‘haves’ and ‘have nots’ in this pattern of segregation in terms of society (Putnam, 2005). migrant settlements, which ultimately leads to isolation and poor interaction between Building social capital does not require the different communities. It is essential for significant financial investment on the part city governments to provide new ways of of city governments. There are many connecting people in a diverse society in examples of neighbourhood actions order to develop democracy by increasing where cities play the role of facilitator the social capital of citizens and celebrating Strategic questions: rather than the provider of services. For the diversity of modern multicultural cities. instance, in the city of Phoenix, Arizona, How can citizens be engaged in the there are around 900 neighbourhood development of the city? Has your city Organisational capital groups working on different social issues. developed an inclusive plan that The city of Vancouver has won a United Organisational capital includes research addresses the needs of all citizens? Nations award for Innovation in Public and development programmes, systems Service for its Neighbourhood Integrated of education, fiscal policies, public Service Team that helps Vancouver procurement policies, and management residents solve difficult issues in their tools. neighbourhood. The program involves more than 200 city staff within 16 teams More importantly, it refers to representing different areas of the city. organisational culture and leadership. In They work with residents to help solve the context of a city, organisational culture problems with buildings, garbage, noise illustrates the city’s image and core or illegal activity. The City Manager of values. Having a positive and attractive Vancouver, Judy Rogers, describes it as image and set of values is widely “an ideal way to integrated citizens and recognised as a key factor for prosperity. staff to come together to problem solve.” One city that has attempted to change The negative side of social capital is that radically its organisation and process is it can lead to insular behaviour and lower Barcelona. Using ICT, the city has designed levels of tolerance for other groups and its services around the needs of its citizens communities. To counter this, city leaders rather than the organisational imperatives of need to promote tolerance and openness the administration itself. This means that, and facilitate integration. As Catarina for example, city services and information Dahlöf, Acting CEO of Gothenburg says: are available through one web portal that “We need to counteract segregation of connects citizens and government together. people from other countries and cultures Technology has been used to engineer a that come to, or are already established, new form of social fabric in the city, one in the city”. Developing social capital can that puts citizens’ needs above all others. help to tackle problems of unemployment Other cities are also using IT in this way. and other social problems and increase Liverpool City Council has embarked on a prosperity. Research has shown that a considerable programme of networking that lower level of social capital among links citizens to information and services immigrant groups is one of the reasons for through one portal encouraging the city’s higher unemployment. The social unrest in citizens to interact with the city government France during the autumn of 2005 could to provide feedback and establish a be linked to the French government’s lack genuine dialogue with city leaders. of investment in building social capital in certain communities.42 Capitals, the key issues
  • 46. Process capital Global knowledge sharing andProcess capital is the essence of an productionorganisation’s competitive advantage. Knowledge creation depends onDifficult to replicate, it is an organisation’s successful information sharing and thesoul and image. Process capital helps a cross-fertilisation of ideas. Global trendscity to develop and maximise its show that time spent in formal educationorganisational capital. Process capital is increasing and young, educated peoplerefers to the internal processes used by are increasingly organisation and its staff, including “The challenge is to get the population tolearning and creating knowledge, building reach their full potential where knowledgesocial capital and trust and innovation, and education are concerned,” says theprocesses of recruitment and leadership mayor of the city of Amsterdam.and business processes. This capital isessential for a city to differentiate its self Another important skill of citizens thatfrom other global cities. Process capital is facilitates integration and globalisationa capital that makes a city unique. and also enriches diversity is multi- lingualism.With a series of organisational changes,the city of Gothenburg, Sweden, has Most major cities have hugely diverseblazed a trail for others to follow in the populations, which simultaneously presentway that it has reorganised its processes them with both challenges andto focus on sharing information, and opportunities. “Increased travelling meansdeveloping a common picture of the city’s that the world is getting smaller, andorganisation by offering support to the young people in particular are movingcity’s managers and maintaining quality around the whole world. As a result, therestandards. The city has chosen to make a is a greater understanding of differentstrong commitment to management, cultures.” Bosse Sundling, City Managersignalled by its decision to open a of Stockholm.development centre for about 1700 city Many ethnic groups experience segregationmanagers, and a number of measures and high levels of unemployment, whichaimed at improving the management can increase tensions between differentnetwork. According to the city’s CEO, groups. However, the opportunities“The main purpose of the reform is to presented by increasing diversity areimprove the efficiency of the organisation substantial. Different communities canand to strengthen inhabitants’ influence enrich the cultural heritage of the city andon the city’s undertakings.” new skills can boost the local economy andOrganisations can generate competitive go some way to address the problems ofadvantage by developing a creative an ageing population. One of the mostenvironment where ideas can flow freely significant advantages is the flow ofand the processes described above come knowledge that comes to the city creatingtogether in a creative culture. This might new ideas, leading to new business growthmean encouraging the use of external and and employment. All of which contributesmore informal meeting places. For to the overall prosperity of the city.instance, in cafés or bars where In an increasingly competitive environment,individuals have the opportunity to the ageing workforce is a specific problemexchange ideas, away from the confines for public sector organisations. Many faceof the traditional work place. losing significant knowledge and expertiseOne of the most important processes in unless they invest in developing new skillscity management when it comes to the and capacity and nurturing future leadersintellectual capital and its process capital and managers. The city manager of the cityis knowledge management. of The Hague, David Jongen, expresses the concerns of city leaders in affluent countries when he says: “There is a major risk of a knowledge drain to low-wageCapitals, the key issues 43
  • 47. Cities of the future - global competition, local leadership countries and a lack of the innovation that Nations Public Service Awards to draw Innovation - Frankfurt is necessary to create a high-quality attention to public services that One city which has explicitly knowledge economy.” demonstrate the development of innovative acknowledged the role of innovation practices and improvement of efficiency and The balance and spread of economic in developing its economy and effectiveness. The awards also highlight power between cities in the knowledge infrastructure is Frankfurt. Petra Roth, best practice in recruitment and retention economy can be achieved by the Mayor of Frankfurt, explains: within public sector bodies. The awards emphasising and sustaining the city’s were made for the first time in 2003, uniqueness and by constantly innovating “Frankfurt has increasingly focusing on best practices and innovations cities’ intellectual capital. distinguished itself as a scientific in the public sector all over the world. centre. Enormous investments into the development of university and Innovation capital Conclusion technical college made by the Increased global competition between In an interview conducted for this report the government of Hesse, have enabled a cities has increased the focus on city manager of Malmö, Sweden said: “It is leap in quality in the scientific- developing and maintaining intellectual possible to make a turnaround from being technological infrastructure. The capital. No city can afford to neglect the an industrial city on a downward trend to ongoing improvement in the quality of revitalisation and innovation of its most becoming a blossoming city.” But to do job offers increases the attractiveness essential capital. The need for renewal is this, cities need to attract the right kind of of the location for enterprises brought into sharper focus with economic people – the right mix of intellectual and operating in the science-oriented restructuring and the transition from social capital – to ensure success. To growth industries. Through its new industrial to knowledge-based economies. sustain and develop intellectual and human innovation centre, Frankfurt enjoys a Creativity and innovation create capital cities must adapt and prepare for worldwide reputation in competitive advantage. Due to their size the future. Global economic pressures have biotechnology; by settling specific and diversity, big cities are one of the increased competition and, therefore, the areas of the pharmaceutical industry, main sources of innovation. competition to attract and retain the right Frankfurt is on the way to re- skills and people. The city of Vancouver understands the obtaining its former position in the significant connection between innovation To compete in a rapidly changing global production of pharmaceuticals.” capital and human capital. The city’s economy, cities have to understand the motto is: ‘Empowered by innovation’ City resources that they will need in the future. Manager, Judy Rogers, explains their In an economic environment that is success: “Vancouver recruits outstanding increasingly dependent on knowledge, people and lets them do their jobs. They intellectual and social capitals are likely to are continually offered jobs by other cities be among the most significant assets that for much more money – few leave, annual a city possesses. They will need turnover is less than 3%.” strategies to help them develop, attract There are numerous examples from history and retain those assets and in doing so that prove that the right combination of ensure that all citizens feel engaged and physical and intellectual capital helps cities enthused by the city and seek to apply to become wealthy and powerful. their own best efforts to its successful Nevertheless, many cities have failed to development as a place to work and live. capitalise by not adapting to changes and It is essential that city leaders effectively allowing their intellectual capital – creative and efficiently manage all capitals that and entrepreneurial people – to leave. support intellectual capital in order to In recognition of the important and global create sustainable development and a nature of the value of intellectual capital the good quality of life in cities. United Nations Department of Economic and Social Affairs established the United44 Capitals, the key issues
  • 48. 4.2 Democratic capitalAchieving prosperity through engage their citizens, governments need to address the root causes ofthe optimisation of democratic disillusionment with the political processcapital and in doing so rebuild their holding ofThis section examines the trends that are ‘democratic capital’ that is held in trust.driving democratic capital in the political The impact of globalisation and increaseddecision-making processes in cities. The mobility can lead to a sense ofinteraction among citizens (society), the fragmentation. City governments thereforeinfluence of economy and politics, and also have to introduce new democraticthe alignment of the respective aims and strategies that can help create a sense ofrequirements of these different elements coherence and vision for their city and allhelps to shape the ability of a city to of its inhabitants.compete in the global economy. All thecity leaders interviewed for this report Three major trends are emerging that,stressed the qualities of collaboration and taken together, provide city governmentsparticipation as essential to their cities’ with the tools to bring all the players in asuccess. city’s future together. These are:Cities need to find ways to combat some • The drive for greater transparency andof the negative trends associated with the better communication;ever growing scale of large cities in the • The creation of new forms of democratic21st century. Increased individualism and participation; andthe concomitant decline in shared social • The development of partnershipsvalues – as pointed out by among others between private and public sectors andBrisbane’s CEO Jude Munro – are issues citizens (see figure 13 below).that have to be addressed through new In this chapter we examine how theseforms of participation and engagement identified trends can help city governmentsthat ‘reconnect’ citizens to their city. to rebuild their democratic capital andPolitical apathy is a major problem for all examine some of the specific initiativeslocal and national governments and falling implemented in cities around the world thatvoter numbers tell their own story. To re- directly address these challenges. Economy Interaction Major trend 1: Major trend 3: Transparency Partnership The city on Int cti era era cti Int on Society Politics Major trend 2: Participation Pros perity ntrol through optimising democratic coFigure 13: Interactions between politics, society and economy with the three majortrends to optimise democratic capitalCapitals, the key issues 45
  • 49. Cities of the future - global competition, local leadership Trend 1: The push for greater that permits anyone to ask him a direct question about any topic of concern and of transparency course permits thousands of listeners to The push for transparency comes from a hear the explanation of the issue and the number of different sources. The answer to the question. ‘information age’, powered by the Internet, has created unparalleled access The Mayor of Yokohama believes sharing to information about almost everything information is “an important part of the and increasingly transparency is a vital process of establishing credibility and building block of trust between individuals ensuring constructive dialogue.” and organisations. Trust and Using ICT as a platform for greater accountability are inextricably linked and transparency is a strategy that is being so the creation and maintenance of trust adopted by cities around the world in is a key challenge for cities that want to response to citizens’ demands for more be accountable to their citizens, the information about the performance of the economy and society. Transparency is officials they elect to run their cities and dependent on two-way communication provide public services. More than simply flows between city governments and the providing information, cities are using people who live and work in those cities. technology to enhance their accountability Trust-based relationships are more effective by giving citizens direct access to officials and efficient. To create trust, the and creating dialogue with them. accountable city government provides its An accountable state reflects and citizens and other stakeholders with accommodates citizens’ needs and information about financial results, and also concerns by using methods such as e- about its plans and goals, setting out communication based complaint decisions, how they are taken, and the management, opinion research, surveys of results achieved – good as well as bad. An minority subgroups. However, dialogue accountable government reports regularly with citizens is not enough: governments and publicly about its performance. must respond to citizens’ input. Local Yokohama, Japan, is developing a policy of governments have to accept a new disclosure that aims to keep citizens and relationship which sees information other stakeholders informed of the city’s flowing from departments to citizens and finances and its performance in meeting then back again to reinforce the strategic budgetary goals. According to the Mayor, or leadership role of government. Hiroshi Nakada: “It is important that the Rather than being organised from the point public administration and citizen share of the view of the administration and its information. By doing so, the public requirements, the citizens and their needs administration will gain credibility and make become the organising principle for services it possible to have constructive discussions and information. Citizen-centricity is a key with citizens. We are trying to share trend in the development of transparent and information with citizens by announcing accountable city government. It is a trend financial conditions (which are not always that cities all over the world are responding sound) in a way that it easy for them to to. In Morón, Buenos Aires, Argentina, new understand.” This includes disclosure about institutional arrangements are helping the the city’s indebtedness, and the financial city to tackle problems in a collective forecasts for the next five years – the first undertaking with its citizens, as the Mayor, such disclosure in Japan. Martin Sabbatella, describes: “The residents Trust-based relationships are supported by of Morón have supported a process of strong two-way communication processes transformation that grants them greater that permit citizens to both receive and participation in public matters. These factors access information and enable them to converge on the need for an extensive present their views and hear the views of political and institutional reform that the other citizens of the communities in guarantees total transparency, both for the which they live. The Mayor of New York residents of Morón and for those that do holds a weekly phone-in radio programme business in the city.”46 Capitals, the key issues
  • 50. The Mayor of the city of Toronto in Trend 2: Optimising democraticOntario, Canada has held his “Listening toToronto” sessions in which thousands of participationindividuals have been directly engaged in Voter participation and participation indebating and helping to set the city’s political parties, particularly in the west,priorities for the coming years. have both been declining in recent years. To counter this apparent apathy, modernFinancial transparency is a key element cities need to address new forms offor a modern marketplace of innovation, participation. They need to encourageand applies equally to public sector citizens, associations, networks, interestbodies as private businesses. Public groups and neighbourhoods to participateentities including cities are therefore in the political decision-making process.moving to adapt modern accountingstandards based on those used in the Single issues, rather than ideologically-private sector. The International Public based traditional politics, are increasinglySector Accounting Standards (IPSAS), as the driver of political participation andthe only international accounting standard debate. City governments need to reflecttailored to public sector needs, are this changed reality in their engagementincreasingly being used throughout the with citizens. Whenever major city issuesworld. They help to facilitate the exchange are at stake, concerned citizens should beof financial information among society, able to participate formally and informallyeconomy and government. The IPSAS- through so-called deliberative assemblies.standards bring a fair view to the financial Some examples of these are the roundstatements of public entities and can tables in the former German Democraticcontribute to trust and help provide a Republic and the local Agenda-21-positive rating for a city. It makes financial Process in Barcelona, Spain enactedstatements comparable, improves the since the beginning of the nineties.basis for making sound political choices Other new forms of participation include;and helps ensure that public funds are User Boards in Denmark and Sweden thatdeployed more effectively. involve individuals or interest groups in the decision-making process; Finland’s YouthGuidelines for greater Councils or Citizens’ Written Motion, totransparency which local authorities must respond if supported by 2% of the population;Freedom of information is an important Consultative Forums, as used in the UK,base for citizen empowerment, providing Luxembourg, and the Netherlands whichinformation and transparency give representation during the planningThe accountable state takes its citizens process to specific categories of citizensseriously. It informs them about the city’s such as the disabled, women, those onperformance comparing its original plans low-incomes, and foreigners; andto the actual results achieved. In the Partnership Boards in Ireland.accountable state, transparency is a These examples of constructivefundamental element of building trust interaction combine the professionalFinancial transparency can be optimised knowledge of administrators with theby using the new public accounting citizens’ grassroots understanding of thestandards (IPSAS). These standards problem ‘on the ground’. City inhabitants Strategic questions:model external reporting on internal are not seen merely as a voter and/or a What plans does your city have to usereporting and deliver information that customer, but also as an active participant technology to enhance transparencycitizens and the economy really need in and as co-producers in political decision- and create constructive dialogue withorder to assist them in making effective making. Successful cities need to citizens? How will information anddecisions. The municipal Finance promote public policies that regard dialogue be made relevant andManagement Act in South Africa enforces citizens as more than simply consumers accessible to all citizens?transparency through a strict reporting of public services. They need to viewschedule. citizens holistically, as importantCapitals, the key issues 47
  • 51. Cities of the future - global competition, local leadership participants in the implementation and be very involved. We have programs to realisation processes of government. In work with communities to solve problems this way, citizens feel that they are taken at a local level. We are very consultative seriously and encouraged to play a more and the Internet is playing a big role in the active and responsible role. consultative process.” The benefits of democratic participation Creating new platforms for through the Internet include the participation permanent availability of information, the The Internet has ushered in a whole new possibility of visualisation and interactivity, way of communicating and sharing fast updating and feedback and low information. Smart e-communication, based access barriers. However, e-participation on advanced Internet technology, can can disadvantage underprivileged citizens simplify the participation process. The with no access to the Internet. For those digitalisation of politics with the on-line people not to become even further presence of parties and institutions (e.g. disadvantaged by the digital divide, cities national assemblies,, need to take steps and make investments and discussions with politicians (e.g. to provide e-literacy skills and access for candidate domains, the whole population. play an important role in enhancing citizens’ The most evolved form of direct democratic participation. E-communication participation in the political decision- can simplify contact between citizens and making process is the direct democracies the city government, create easier access seen in Switzerland and some US states. to relevant information, promote This direct form of democratic transparency and speed up access to participation enhances legitimacy. officials. One specific example of this new However, in some cases it may slow type of citizen participation over the web is innovation, so all forms of direct e-voting. Swiss communities carried out a democratic rights need to be assessed successful e-voting test in Geneva. The test carefully within the prevailing political and shows that e-voting is feasible and efficient, cultural context. even under high standards of quality and security. The government of Geneva had to In Swiss cities, all legislative decisions by ensure the technical standards for security parliament are submitted to a referendum and data protection. They guaranteed voter (legislative referendum right; mandatory or identification and the secrecy of the ballot. after collection of signatures). This test also took place in September Furthermore, eligible voters can decide on 2004 on a national level. They guaranteed bigger investments in infrastructure voter identification and the secrecy of the (financial referendum) or other decisions ballot. of parliament. Voters in Swiss cities decide for instance how much in taxes Other cities are investigating the potential they are willing to pay. City governments of other communication platform – such have to convince citizens in public as mobile telephones – to increase citizen debates about the need for a tax increase participation and engagement. Barcelona, or the impossibility of a tax cut. As an Spain is developing a model of ‘m- example, the city of Berne voted on 27th government’ that will allow citizens to February 2005 against a state initiative participate in debates and policy that proposed to reduce taxes by 10%. decisions via their mobile phones and to Berne’s citizens feared that the measure interact with the administration through would mean an unacceptable cut in public the use of SMS and MMS messaging. services. Judy Rogers, City Manager of Vancouver, Canada, describes Vancouver as a “wired Democratic participation and democracy in city”, and explains how this is used by the general need to be seen not only within the city to help create a sense of involvement. city but also within the whole nation state. “Our citizens are offered opportunities to Cities need to have an effective voice within48 Capitals, the key issues
  • 52. the nation state. They should also be city and to have a voice in helping toempowered with sufficient autonomy to decide how those issues are dealt with bymake their own decisions, but should also their government. Citizens should decide Community engagement andbe entitled to participate adequately in the about most important questions that devolution - Birmingham, UKdecision-making processes at the higher affect them not only where they live, but Big changes are happening in the waylevels of the nation state (regions, central also where they work. that the city of Birmingham, UK is run.government). In developed federal states, Devolution, or localisation, means localthe voice of the cities should not be Empowerment: Cities should be empowered with sufficient competencies people get to play a bigger part inrestricted to a merely regional level. Cities decisions that affect their lives – andshould have direct access to national and resources to fulfil their tasks and should have the ability to participate in they get the power to help put in placegovernment when issues that impact them and monitor a variety of services.directly arise. and influence the decision-making process at higher levels of government. The City Council is devolving aDemocratic renewal proportion of its powers to eleven Trend 3: Creating new forms ofIn our highly mobile society citizens often District Committees and re-organisinglive and work in different political partnership many local services into Districtcommunities. They may, for instance, live In the near future, increased demands on Offices, each with a District the suburbs and work in the city. The public services caused by among other During 2004, each District will developproblem is that these citizens are things an ageing population, coupled with its own service plans. Councillors andinterested in participating politically in decreasing revenues as the tax base council staff will work with localboth places, but can only become declines, mean that cities will no longer residents, the health, police and firepolitically active in the place they live. be able to fulfil all their public service services and voluntary and communityNew policies have to find solutions to this, obligations on their own. Dwindling organisations to produce a Communityin order to determine how political resources and more demanding citizens Plan for the area.participation can accommodate mobility who take an increasingly consumeristand how political participation can be attitude to the services their city provides, At the same time the centre of theenhanced in these rapidly developing means that new ways of financing and council will play a more strategic rolecircumstances. providing public services must be found. –re-organising central staff into five City governments therefore have to look strategic directorates. The aim of theseGuidelines for more beyond their traditional role and develop changes is to: collaboration and partnerships with theparticipation private sector and citizens themselves. • Provide council services that respond more quickly to local needs;Interaction: The declining attractiveness of City governments have to find ways to traditional forms of political participation • Create opportunities for local people attract people and businesses that will needs to be addressed with new and to get involved in running their local allow their cities to compete in the global active forms of interaction. area and their local services; and economy. A thriving local economy benefits everyone who lives and works in • Provide a more streamlined andCombine representative democracy with the city, and so the private sector has a effective strategic authority for theforms of direct participation: Electoral and direct interest in finding ways to work with city.participatory democracy should not be inconflict but ought to reinforce one another the city government to achieve mutuallyso that politicians and citizens develop beneficial outcomes. This calls for newmutual interests. Balancing and calibrating forms of partnership in which the publicthe different forms of democratic and private sectors find new ways to workparticipation is a key success factor for together. Judy Rogers, City Manager ofoptimising democratic capital. Vancouver, Canada, believes that the effort to create new forms of working is anMore is not always better - effective imperative for all city governments: “Weparticipation: Participation should be must understand how to partner with themade more effective through a focus on private sector. Governments cannot bearhigher quality and less quantity, with all the burdens of development; the publiccitizens getting maximum benefit from a private partnership model is a way tominimal input of their time. Citizens have a create development. Governments canright to understand the issues facing their learn a lot from the private sector.”Capitals, the key issues 49
  • 53. Cities of the future - global competition, local leadership Public Private Partnerships New forms of partnership are emerging in Strategic questions: Public Private Partnerships (PPPs) have cities around the world. These often involve trilateral cooperation to address What are the best channels available to developed considerably in recent years certain aspects of public life, for example, engage with different groups of throughout the world. PPPs can help to the use to which public spaces within a citizens? How can these be made reduce costs and improve efficiency by city are put. Rather than the more familiar relevant so as to maximise citizens’ using shared resources, allocating risks bi-lateral partnerships between state and active participation in the decision- better, and by taking a life-cycle approach private sector or the government and making process? and process-orientation to the delivering citizens, groups from all three sectors are of public services. The major potential of coming together to create new ways of PPP can be found in a wide variety of approaching public issues. In Stockholm, different areas where the public sector Sweden, a number of project managers has traditionally provided services. These have been appointed to develop include construction, (for example the partnerships within local communities. By building of new schools in London visiting informal meeting places such as achieved by collaboration between local coffee-shops project managers ask education authorities and private sector people about their problems and what businesses), transportation, regional they suggest as solutions. The project- development and regional promotion, manager tries to create a group around a health care, culture, defence, sports, specific issue. The citizens play a role in a education and e-government. partnership with the local government to According to David Jongen, City Manger of improve their own situation. Groups may The Hague, The Netherlands, city councillors focus on more sporting facilities, cultural and officers have actively participated in the matters, street improvement, or more play development of the strategy. The council facilities for children. Regardless of their meets with industry and commercial sector specific aims, these groups formulate both in formal (the full council in discussion proposals which are then discussed at a with individual (international) companies) and joint meeting also attended by local in informal (via business circles through the politicians. Aldermen and civil servants) settings. During Initiatives to create new forms of these meetings, the future of the city of The partnership like these introduce a broader Hague and the role of businesses are view to aspects of public life and are often discussed. Contacts with citizens are mainly capable of reaching innovative and community-focused and are channelled creative solutions. By empowering people through a series of talk sessions, but also from specific groups to get involved in the take place at the town hall with resolution of social and public issues, presentations from citizens and these initiatives encourage self-reliance neighbourhood platforms. This input is used and responsibility. in the strategy process. Of course, these partnerships have to be Civil partnerships piloted with professionalism and suitable However, sharing responsibility should not caution. Risks have to be managed and simply take place in partnerships between efficiency and effectiveness of the private and public sectors. Citizens too arrangements evaluated carefully, need to become involved. A modern city especially in projects that demand large needs a renewal of “civic pride”, a vital investments of both time and money. element of democratic capital in modern However, many cases prove that cities. This means that civil society has to be investments in new forms of partnership mobilised in the common interest. People can provide “value for money” and have to be remotivated to engage in tangible benefits. Partnerships between activities that generate wide social benefits. players from government, the private As local communities become more sector and citizens can enhance the fragmented as a result of greater mobility, future success of cities. city government has a role to play to encourage citizens to participate in the public interest.50 Capitals, the key issues
  • 54. Guidelines for creating Conclusionpartnerships How can these major trends (transparency, participation and partnership) best beEfficiency: Co-operation with social promoted? They need to be communicatedgroups facilitates the implementation of within the three elements of society, thepolicy. economy and politics and to be embedded and realised in common projects. Tasks andLegitimacy: The involvement and backing responsibilities need to be allocated, notof different groups creates broad only between the three elements, but alsoagreement and backing for decisions. between the different levels of governmentAddressing complexity: Through from the local to the national levels.partnerships with different economic and Broad discussion of their impact on eachsocial groups, problems can be viewed major set of stakeholders will help toholistically. entrench them further and foster theMotivation: The motivation for traditional development of bilateral and trilateralpolitical participation has declined. relationships. In order to engage all threePartnerships, however, offer strong different elements in the pursuit ofincentives to benefit society and the transparency, participation andeconomy, and also for smaller groups to partnership it is important to show theinfluence political decision making. benefits that each will receive.Political engagement: Democracy is City governments need to ask themselvesstrengthened by the executive co- how transparent they are now, and what Strategic questions:operating with the different interest groups potential they see for greater Could your city work better withwithin the wider economy and society. transparency. They need to ask if private sector organisations? What communication flows are truly two-way or are the specific areas / services inInnovation: Innovation is also a key to if they are dominated by an outflow that which partnership could be mostresponding to citizen concerns about new smothers the input from, or listening to, effective? To what extent doforms of partnerships. Many different citizen voices. City governments need to community and other groups featuremodels have emerged around the world develop their understanding of different in your partnership strategies?and democratic capital is strengthened forms of democratic participation and seewhen cities work with citizens to find the how they might work in the specificright model for their circumstances. context of their city. Do you understand the different forms of direct-democracy? New platforms for engagement and dialogue – such as the Internet – also need to be examined and made to work in the unique conditions and context of each individual city.Capitals, the key issues 51
  • 55. 4.3 Cultural and leisure capital Introduction How does a city create an image for itself? What makes it stand out from the Cities today each seek to create their own rest? One of the leading contemporary unique identity and to build and develop thinkers on city development and city the experiences that they offer to visitors planning is Richard Florida. His recipe for and residents alike. Cultural and leisure success is quite simple: it consists of facilities go beyond art galleries, opera attracting the best human capital. Florida houses or museums. Today’s cities make claims that creative cities are a virtue of their atmosphere, their heritage characterised by their ability to: and nightlife. But more than this, they develop an intangible quality of creativity • Attract new technology; and innovation. Cities as diverse as • Attract young talent; and Vancouver in Canada, Reykjavik in Iceland and Barcelona in Spain are reaping the • Provide a tolerant environment. benefits of the strategies they have put in Richard Florida calls these the three T’s or place to attract dynamic and creative 3T. Individual individuals and businesses. adventures Cities with these characteristics build their This section examines some of the growth on creating industries such as challenges that cities face in the creation tourism, ICT, art and design, advertising and promotion of their unique identity and and media, research and education, and the competition to attract creative and Culture other forms of cultural production and Art innovative people and businesses. There and leisure Business distribution. Creative people are mobile are various strategies that cities can and cosmopolitan, they want urban pursue in building their store of cultural lifestyles, are career-orientated and and leisure capital and this section looks innovative, and use the city as the main at the implications of different choices arena for their leisure activities. City - identity and the way that different cities around the world have developed their own So, cities of today must compete to cultural planning. attract creative individuals and investorsFigure 14: Components of cultural and who will help to define and promote theleisure capital Building the city brand city. In successful cities, culture and business Tolerance and openness are central and come together. Forward-looking, dynamic important qualities. In contradiction of cities capitalise on their appeal to both much mainstream urban planning, Richard visitors and potential residents and Florida warns that subsidising large businesses as good places to live, work sporting facilities, making conditions and invest. All these ingredients come favourable for establishing out-of-town together in the city’s brand. The brand of a shopping malls and other car-based city can be made up of many different businesses, are the wrong route to go influences: the businesses developing or down. According to Florida, this is a choosing to locate there, an ‘underground’ recipe for failure rather than success. culture or cultural artefacts and institutions. Take Seattle on the North-West Pacific The possibility of attracting creative coast of the US. Seattle has a highly visible, capital is dependent on long-term strong brand. It owes as much to Microsoft strategic cultural planning. The conditions as it does to the ‘grunge’ music of bands for this are best seen in larger cities. But like Nirvana or the coffee shop the idea of the creative city is not one phenomenon epitomised by the global exclusively for the large metropolitan domination of Starbucks. Seattle’s brand is centres. The ideas can easily be adjusted an amalgam of influences and associations to smaller cities’ or communities’ that add up to a unique and instantly particular characteristics. recognisable whole.52 Capitals, the key issues
  • 56. It is broadly agreed that people Cultural strategiesincreasingly want authentic, cultural Many cities have expectations of rapid,experiences, and that the city’s public economic gains from their culturalareas are subject to a wider variety of strategy, but few succeed from thisuses than was the case 15-20 years ago. Strategic question: starting point. In general, city developersMore and more people prefer to live in What are the distinctive characteristics and their consultants operate with one ofcentral, attractive residential environments of your city, and how can they be three development strategies:and to spend their leisure time in exciting harnessed to generate the rightcity spaces. Conservation and cultural The lighthouse strategy – development of approach to cultural development andmonuments are, as a consequence of an iconic cultural attraction such as the to build your city brand?this, assigned an increasingly important Guggenheim museum in Bilbao or therole in city politics and city planning. Opera house in Sydney.During the past 20 years cultural planning The specialisation strategy – developmentin cities and regions has become a big of an attractive or specific industry profilebusiness all over the world. Today, cities based on, for example ICT innovationare referred to as branded goods, in stark (Adelaide), finance and film (Toronto,contrast to the more modest promotion of Cannes), festivals (the carnivals in Trinidadearlier times. However, transferring a and Rio de Janeiro)theory wholesale from consumer goods tocities can be complicated. An easier form The generator/dynamo strategy –of branding is to base it on a place’s development of a profiled localunique characteristics or advantages. As specialisation, preferably with possibilitiesMartus Tavares, Secretary for Economy for governmental investment and support,and Planning of the State of São Paulo for example research parks, IT or biotechsuggests, city branding requires a environments, or headquarter complexesdifferent strategy to its consumer (e.g. clusters such as Silicon Valley orequivalent, covering a wider range of France - national strategy for sevenpotential ‘customers’; “The key external industry clusters).challenge is marketing the city, promotinga positive image to attract and retaintalented people, existing business andinvestment opportunities; and tourists.”A city’s distinctive characteristics oradvantages can be rooted in history(which sometimes needs to berediscovered) or they can be of morerecent origin. Many cities have initiatedstrategic projects to develop cultural orlifestyle qualities: a broad spectrum ofcultural events and institutions, sportingarenas, festivals and diverse urbanrecreation (parks, waterfronts, café-culture), new residential areas, aestheticupgrading of the city’s public spaces andconservation of important buildingenvironment/architecture. The question iswhen cities follow almost identicalstrategies, can they all enjoy the samelevel of success?Capitals, the key issues 53
  • 57. Cities of the future - global competition, local leadership In addition, some cities use large one-off Another approach – the generator strategy events, such as the summer/winter – is to initiate co-operation with local Olympics (London 2012), the World Cup in businesses or cultural/artistic soccer (South Africa 2010), or the World phenomenon that have in some way Expo (Seville) to kick start global become famous nationally and/or attention. For many, these events internationally. Peter Jackson, director of represent an opportunity to make a major The Lord of the Rings trilogy, has done difference to their cities, as Robin Wales, something unlikely in his home city of Mayor of the London Borough of Wellington, New Zealand, a city of Newham, explains: “the majority of 26 900,000 inhabitants, but not one sports competitions in the London 2012 previously considered a world cultural Olympics will take place in Newham. capital. Many of the new, state-of-the-art venues will be retained after the Games for The director has built a permanent facility community as well as elite sporting uses, there, perhaps the world’s most and new housing and business parks will sophisticated filmmaking complex. He abut what will be the largest public park deliberately sited it in New Zealand to be built in the UK since the 19th because he realised what many American century. The council is determined to cities discovered during the ‘90s: seize the opportunity to build a paradigm-busting creative industries sustainable, inclusive community with could single-handedly change the ways wide-ranging social and economic cities flourish and drive dynamic, benefits for the borough’s residents.” widespread economic change. He realised Larry Campbell, the Mayor of Vancouver, that with the allure of the Rings trilogy, he adds that winning the 2010 Winter could attract a diversely creative array of Olympics has placed the city at the centre talent from all over the world to New of global focus: “the 2010 Winter Zealand; the best cinematographers, Olympics are having a big impact on costume designers, sound technicians, Vancouver – bigger than perhaps many computer graphic artists, model builders, thought. People all over are talking and editors and animators. wanting to come here to see what it is all The strategy of specialisation has been about. They are having a huge impact in used to powerful effect in the very north bringing recognition to Vancouver”. of Finland, in the city of Oulu, just a few It may be tempting for many cities to miles south of the Arctic Circle. The city choose the lighthouse strategy as Bilbao has set out a plan to become a city of hi- did. But before throwing themselves into tech innovation and attract new this, they ought to pause to study that businesses to base themselves there. The city’s political progress before the project Smart Oulu project has created a range of was initiated. In Bilbao’s case, IT-based initiatives that link houses, understanding of the past enabled a businesses and public institutions restatement of the future through dialogue together to foster innovation. The strategy with the citizens and the city. At the same is paying off and Oulu is attracting a time, cities should think through the considerable number of hi-tech consequences an attraction like the businesses to the frozen north. Guggenheim Museum will have on the local city culture. The most important message with regards to cultural planning is the importance of the city being itself and not simply trying to copy others. To see the value in the city’s ‘natural’ qualities and attributes can often be the best starting point for any strategy.54 Capitals, the key issues
  • 58. Gentrification Creating the experienceAn influx of creative professionals into a economycity often gives rise to gentrification of The encounter between people who seekspecific inner-city locations and city experiences and cities which want to offerplanners, naturally enough, are keen to them, creates the ‘experience economy’.encourage this phenomenon. Many cities The experience economy has its origin inin recent years have seen previously semi- an economy where cultural life andabandoned and down-at-heel areas industry meet productively. This economyreinvigorated by the arrival of young and is built on the added value whichaffluent people. Places like the East creativity brings to both new and moreVillage in lower Manhattan, New York, traditional goods and services.Shoreditch in London, the waterfront in Entertainment, toys, amusement, tourism,Barcelona and the King’s Cross area in sport, textile and clothing are included inSydney have all been transformed in this, in addition to the more traditionalrecent years with the arrival of creative cultural industries.and professional people. Gentrificationcan put a city on the global radar, but it is The driving force in this economy is thenot without its challenges and these are actual experience, independent of whererecognised by many city authorities. it is created and communicated, whetherSydney’s Lord Mayor, Clover Moore “In through museum, theatre, festivals,order to cater to this increasingly creation of identity, storytelling orurbanised population ...the city of Sydney branding. City developers shouldtailors its policies toward a city of villages, deconstruct the contents of theto include the diverse needs of its experience people seek in their city inconstituency.” order to analyse its characteristics, and then use this knowledge in the strategicTo be truly successful, all inhabitants need process of city development. Thisto be involved and engaged. Cities keen understanding plays into the creation andto encourage gentrification also need to strengthening of a city’s brand. The mayorbear in mind the feelings and aspirations of Frankfurt, Petra Roth, says “In times ofof the original inhabitants of the areas financial shortage, the cultural and socialundergoing gentrification. How, for facilities and preserving a high quality ofexample, can cities reach people who are life in the city require engagement by both Strategic questions:not used to participating, or people who citizens and enterprises”. City planners What are the qualities, experiencesfeel that society has failed them? In these need to understand the associations that and associations that form yourcases, the gentrifying process can often people have with their city, where these city’s brand? How can these bebe accompanied by a sentiment that the come from and how they can be strengthened and promoted?city has lost its ‘soul’ or that the changes leveraged to further the city’sushered in reduce the city’s diversity. development.When immigrants, for example, arepressured out of city centres due to theincrease in real estate prices, the Understanding real ‘creativity’consequences are not only a reduction of in city developmentdiversity, but also diminished chances of The scientist and author Charles Landryinteraction. High levels of diversity and the emphasises various examples ofresulting exchange of views fuel misunderstood creativity and strategicinnovation. Cultural differences must not dilemmas that can be encountered whenbe perceived as unchangeable, but as trying to exploit a city’s culture and leisuredynamic measures which are affected by capital. Creativity is an elusive quality thatencountering the ‘other’. The is hard to pin down. It is a set of attitudes‘homogenising’ tendency inherent in and behaviours that manifests itself ingentrification needs to be carefully different ways through both individual andmanaged so that diversity is kept alive. collective actions.Capitals, the key issues 55
  • 59. Cities of the future - global competition, local leadership City planners need to be careful that they Key questions for cultural Strategic questions: are clear about the creativity present in their city and its basis in the real fabric planning What kind of people do you want to The emerging trend, for cultural capital and life of the city itself. They need to attract to your city? How will you variously described as cultural planning, make sure that they help to create the ensure that what you offer corresponds urban planning or cultural regeneration, is conditions in which their city’s real to their needs and wants? playing an increasingly influential role in creativity can prosper, and must be wary of pursuing false visions of their city’s true cities’ plans for the future. Linked to the creative image. development of cities, districts, industrial areas and dockland areas, the goal of this There are many questions to consider development is to create growth and when thinking about cultural planning. encourage activity in the service and Who controls the creative economy? knowledge industries, creative activity and Should the focus be on consumption, to create an environment that will attract participation or production? How “the creative class”. accessible should public projects and institutions be? Should the focus be on Cities wishing to embark on this journey the safe side, or should one dare to be need to ask themselves some innovative? Should the focus be on fundamental questions. They need to contemporary art or artistic heritage? understand how the cultural and leisure Which tourists does the city wish to qualities and characteristics that their city attract to see the art? Should the focus be offers can be developed to create an on city centres or the remote parts of the offering that is unique and differentiated city? from other cities. They need to understand who it is they wish to attract Cities have to examine their own city’s and how they can enthuse and engage unique virtues and base their strategies different parties in the city to help on the assets they have in order to implement their plans. With this develop them further. Creativity is not a understanding they need to secure buy-in quality that can be manufactured or to their plans and determine the tools and ‘bought in’. But it can, once identified, be methods that they can use to turn their nurtured and helped to flourish. At its vision into a reality. best, the cultural institutions can be places that inspire all people to new and “The most important task for city leaders free thinking, says Landry. is to understand and integrate the internal and external perspective offered by social intelligence into their vision for the future, and to create opportunity space for citizens and employees to innovate.” Conclusion There is no single blueprint for success that cities wishing to become thriving centres for culture and leisure can pursue. But as this chapter shows, there are strategies that cities can adopt to accelerate their progress. However, none of these should be undertaken without a careful examination of the unique qualities that make each city what it is and how these can best be put to work. It may be that a high- profile event will draw the world’s gaze to a city. But what is it that will keep their attention once the event has ended?56 Capitals, the key issues
  • 60. 4.4 Environmental capitalIntroduction the city itself. The ‘ecological footprint’ of a city – the area of productive land andGood environmental management is vital aquatic ecosystems needed to produce itsfor the economic and social vitality of our resources and process its waste – goescities, both now and in the future. Across well beyond local and even nationalthe globe, people are increasingly aware boundaries. For example, one estimate ofof the quality of their local environment, the ecological footprint of London puts it atespecially in major urban areas, and the 125 times the surface area of the city itself.impact it has on their quality of life.In this section we examine some of the City goals - clean, safe andenvironmental issues and problems faced attractiveby our major cities. We also examine howsome city governments have developedenvironmental policies and initiatives totackle these problems and improve thequality and sustainability of their local Safeenvironments.This section examines the key goals andthe challenges that city governments face Environmentalin improving their environmental capital. It capitalfocuses on three goals: Clean• Clean;• Safe; and Functional• Attractive.This section also addresses challenges ofmanaging environmental capital, in Figure 15: Components of environmentalparticular: capital• Joined-up policy; and• Partnerships. Challenges of creating a clean city Air quality and pollution levels have aCities and environment - major impact on environmental quality in urban areas. Traffic is a major contributor Strategic question:managing competing demands to air pollution. In densely populatedThe concentration of activity within cities areas, for example, many housing What are the principal challenges thatplaces an enormous burden on the local developments are located close to your city faces in balancing theenvironment. Governments face motorway networks which cause high demands of economic developmentcompeting demands to provide; levels of pollution. with environmental impacts?• Easy access to the workplace – a high In Europe, the number of children suffering quality infrastructure network for both from asthma has trebled in the last 30 public and private transport; years. Other allergies and diseases such as• A clean, green, safe and attractive leukaemia are also on the increase. living environment; and Scientific evidence has linked the rise of such conditions with environmental factors.• High quality recreational space including Preliminary estimates by the World Health parks, sports and shopping facilities as Organisation (WHO) suggest that almost well as a vibrant cultural scene. one third of the global burden of diseaseCity governments must ensure that they can be attributed to environmental riskbalance the needs of citizens with the need grow the local economy. Of course, theenvironmental impact of large urban areasis not confined to the geographical limits ofCapitals, the key issues 57
  • 61. Cities of the future - global competition, local leadership Noise pollution is also an important factor Challenges of creating an attractive city Reducing emissions - in local environmental quality. Noise There is no doubt that citizens desire Melbourne ‘pollutants’ can range from traffic noise, to clean and safe cities in which to live. noise generated in city centre recreational However, a pleasant physical environment The City of Melbourne is acting on and entertainment zones to noise from alone is not enough to create a vibrant environmental issues and challenges neighbours. world city. On the contrary, a city’s by aiming for Net Zero Emissions by 2020. It is also sensitive to the global character and vitality is determined by the Maintaining a clean city also involves issue of access to water and plans to underlying set of values which contribute maintaining public or private spaces – reduce water consumption by 12% to the overall ‘attractiveness’ of the city. dealing with litter, illegal dumping of waste by 2020. The City is also introducing and other environmental blights such as The overall attractiveness of a city or sustainable water polices, guidelines graffiti. Industrial and other activities have space is influenced by many social and and training across the city. caused major pollution of soil and economic factors, its cultural and groundwater. The costs of remediation historical heritage as well as a sense of Under construction next door to the and re-development of polluted areas can local style; in short, the city’s brand. Some Town Hall, the new Council be very high. Groundwater pollution is of these factors include the availability of Administration building, CH2, has especially hazardous as it affects drinking parks and open spaces. Parks and open been awarded Australia’s first six-star water. spaces are important meeting places, green rating and is set to become the providing a tranquil haven, free from the greenest multi-story office building in Challenges of creating a safe city hectic pace of urban life and its the world, a feat people everywhere In recent years the issue of community environmental and noise pollution. will want to see in action. safety has risen up the political agenda. Environmental quality also has an impact Perceptions of rising crime levels and an on the value of property and can play a increased fear of crime have prompted major role in attracting new investment many cities to put extra resources and into the city. New ‘light’ industries, such new measures in place to tackle criminal as financial and IT businesses are often activity and to improve the quality of the attracted by the quality of the local physical environment. The threat of environment, as this will often have an international terrorism has also led to affect on the availability of skilled labour more ‘disaster planning’ resources and the potential to attract the right skills devoted to preparing for major incidents into the area to support growth. such as bombs or gas attacks. Investments in civic design and Environmental risks and hazards also environmental improvement have taken on pose major issues for cities. Increased new importance in the last ten years. urbanisation in some areas has meant Much of the improvement has been that population centres are situated near directed towards creating safer and to high risk industrial activities. As a cleaner public spaces and residential consequence, if a major disaster were to areas, with an increased emphasis on occur, such as the chemical leak in creating pedestrian zones, cycle paths, Bhopal, India or the Bijlmerramp, cleaner public transport, waste water (Schiphol Airport) air crash in the programmes and energy saving strategies Netherlands, large numbers of people to improve the overall quality of the would be at risk. environment for residents and visitors. Environmental and other problems often Managing such risks and ensuring overlap in urban areas. Older districts, adequate measures are put in place to with tenement housing and high building deal with disasters is difficult. City densities, score poorly on various fronts governments are often accused of paying and environmental, social-economic and little attention to such risks when they health problems are often compounded in make decisions about major new housing these districts. The alternative of green developments, for example. Governments urban environments and village-like are also accused of failing to ‘join up’ their neighbourhoods are perceived to be individual policies and strategies at the better places to live and improvements to local level to manage risks which critics which all city planners should aspire. say lead to poorly integrated responses and bad planning decisions.58 Capitals, the key issues
  • 62. Managing environmental capital Poor internal communication and integration often leads to poor policy Strategic questions:in cities making. Local governments in citiesCities have employed a range of technical How are environmental considerations around the world are making efforts tosolutions to address environmental integrated into all areas of your city’s achieve better integration of all the policyproblems. Making optimum use of decision making and planning? How areas that impact the environment. Mayoravailable space is a clear priority. Public are the goals of a clean, safe and of Montreal, Gèrald Tremblay, definestransport, subsurface parking and use of attractive city communicated across all sustainable development as “Countriesroofs as gardens are examples of efficient activities and departments? and cities, particularly those that offer anand environmental friendly use of space in environment and a better quality of life,cities. In order to manage increasing that take a balanced approach tovolumes of traffic, cities have invested in economic vitality, social equity,their physical infrastructure by widening environmental protection and respect forand building new highways and tunnels or the needs of future generations will behave implemented fiscal measures, such best equipped to deal with worldwideas London’s Congestion Charge, to competition.”persuade drivers to use alternative formsof transport for their journeys into and Effective spatial planning needs toaround the city. integrate environmental considerations in its early stages. Good urban planning canUnderground transport systems have lead to sustainable, mixed use, attractivebeen used for many years as ways to developments.maximise space. The undergroundtransportation of hazardous substances is It is essential for national governments toalso an increasingly attractive option and incorporate environmental considerationsthe automotive industry is now producing into their economic, planning and othercleaner and less noisy cars. Industrialists policies. In Europe, city governmentsare also being encouraged by local, receive specific funds to integratenational and international policies to environmental aspects into physicalbecome ‘cleaner’ too. planning, and performance is managed by Environmental management setting out specific targets. For exampleBut, despite all these positive - New York targets for sustainable business parks ordevelopments, many governments wish to embedding infrastructure into the Successful examples in urbanmove faster and take more radical steps landscape. environmental management includeto improve the urban environment. To do increases in resource efficiency,this, they need to examine how Challenges to integrated policies are: reductions in waste generation andgovernment policy and services are improvements in infrastructure fordesigned and implemented and in • Mainstreaming environmental water supply.particular how two key trends – joined up considerations into strategy andpolicy and delivery and working in delivery. City governments are often The Land Acquisition Program (LAP)partnership – can help them take a more very large organisations and it is is a key component of New Yorkeffective approach to environmental difficult to achieve joined-up policy and City’s comprehensive efforts tomanagement. practice; protect and enhance the quality of its water supply, ensuring clean and safe • Co-ordinating the planning process of water for future generations as well asJoined-up policy and delivery city governments is also is a major current consumers. Land acquisitionA city’s environmental capital is closely challenge. Strategic business plans, and proper stewardship can protectconnected to local, national and spatial and long term financial plans natural resources that filter pollutantsinternational spatial and social policies. need to be aligned and implemented in before they reach reservoirs.Sustainable urban development is a a joined up and co-ordinated way. Acquisition of sensitive areas nearwidely used term in city policy making Budgets and operational plans must watercourses, whether throughand physical planning. But integrating also be linked to the overall vision and outright purchase or throughpolicy and delivery is difficult because city strategy to ensure focus on achieving conservation easements, can preventgovernments themselves are often real outcomes; the introduction of new sources oforganised around separate service ‘silos’. pollution.Capitals, the key issues 59
  • 63. Cities of the future - global competition, local leadership • Environmental considerations must Public private partnership also be factored into the development Public private partnerships between the of the long-term vision for the city. This local authority and private sector should cover both the local liveability businesses or consortia are increasingly aspirations for the city as well as the used to address issues of environmental wider global environmental factors; and urban planning. • Environmental performance Citizen participation management and effective monitoring systems are also crucial in ensuring Many citizens would like to be more that goals are realised. involved in the decisions which affect their neighbourhoods and quality of life. Stockholm’s environmental policy However, too often citizens feel that Public private partnership attempts to address these issues by decisions are made for them without their ensuring that all of the city’s departments views being considered. Of course, most for waste processing - conduct their activities with environmental cities have very diverse populations with a Amsterdam issues to the fore. The city’s procurement wide range of ‘communities of interest’. It Mayor Cohen of Amsterdam policies, for example, are designed to is therefore important for governments to illustrated how the city government promote environmentally responsible consult widely with their citizens to was successfully using a public products and services throughout the city. engage them in debates and to capture private partnership to finance a new the range of views across the population. and modern Waste processing plant Working in partnership Asking for citizens’ views is not enough – in the city. The plant itself is viewed governments must also act on them. Integrated policies alone are not sufficient as unique because it has very low to maintain and enhance the Projects that involve citizens do not CO2 emissions. The financing for the environmental capital of cities. City necessarily require significant investment project is also innovative. 78 of the governments must demonstrate their to achieve substantial impacts. In 370 million euro investment costs leadership by balancing the needs of key Yokohama, Japan, for example, the city were supplied by two Dutch banks, stakeholders and must work in has launched a “Yokohama G 30 Rabo Bank and Triodos Bank, as a partnership with, amongst others, the campaign” that is encouraging citizens so-called "Green fund". The Waste private sector to achieve their objectives. and companies to recycle and reuse as plant got a "green certificate" from much of its refuse as possible. The city the Dutch national Government and The city of Zurich works intensively in has also introduced a successful customers of the banks can buy different kinds of partnership. The local campaign that aims to reduce the use of green shares. The result is a very government of Zurich works with private air conditioning by persuading people to innovative new plant with a very big business to further promote the economic resist turning thermostats below 28 reduction of Greenhouse gasses and power of the city through the ‘Greater degrees and to encourage government low costs of waste management for Zurich Area Standortmarketing (location and private sector employees to adopt the citizens of Amsterdam. With an promotion)’ Foundation which was causal dress in the summer months to estimated 780,000 euros saved established in November 1998 in Zurich. help keep them cooler. The results have Mayor Cohen believes the project The founders’ intention was to emphasise been impressive. Energy consumption for resulted from good cooperation that the promotion and development of an Yokohama City Hall fell by 60% following between the authorities and the two economic region can only be successful the scheme’s implementation and the banks. through an active public private government intends to repeat the partnership. They also felt that it was programme annually. necessary to strengthen the economic multi-cantonal region of the Greater Barcelona, Spain has created a 10-step Zurich Area and position it internationally. citizen commitment to sustainable The city of Zurich also maintains development under the aegis of Agenda partnerships with other similar cities 21, devised at the Earth summit in Rio de including Munich, Vienna, Stuttgart, Gratz, Janeiro in 1992. A system of broad San Francisco and Kunming (China) as consultation throughout the city was well as other cantons in Switzerland to conducted and the resulting feedback and share knowledge and benchmark suggestions incorporated in the city’s services. environmental commitments.60 Capitals, the key issues
  • 64. The commitments range from pledges to Conclusionprotect open spaces and biodiversity to To achieve the vision of the clean, green Strategic question:reducing the city’s impact on the planet. and attractive urban environment, citizens How are all stakeholders – includingThe role citizens can play in improving the must have access to high quality government, business and citizens –quality of cities cannot be amenities and services. Managing the encouraged to participate in policyunderestimated. Citizens know their quality of environmental capital requires a making and implementation to achieveneighbourhoods very well, are involved in broad view on the connections between environmental goals?their community and can play an different policies and balancing the needsimportant role in maintaining the living of key stakeholders.environment and highlighting priorities for Sustainable development can only beaction. Citizens who feel involved in their achieved if governments work togethercommunities often behave more with their citizens to establish and agreeresponsibly towards them. the vision and priorities for their cities andPartnerships are becoming more and work with partners in the public andmore common in developing strategic private sector to integrate policy andpolicy that will affect the city. However, it delivery at the local level. Workingis also important to encourage joint together with integrated policies andworking across organisational boundaries through different stakeholders is the keywithin government to implement policies to maintaining and improvingand plans. For example, organisations can environmental capital in our cities.pool budgets and involve local citizens inmaking decisions on how these resourcesshould be spent in local communities.Pooled budgets can lead to significantefficiency savings and less duplication inservices.Capitals, the key issues 61
  • 65. 4.5 Technical capital Introduction what they have achieved in the past but need to be prepared for the next wave. Cities have become nodes of dense networks exchanging investment, The city of Valencia, Spain, summarises information, goods and people. They have the key success factors of a city today: also become poles of innovation and knowledge management through access • Easy access to markets, suppliers and to information technology. customers; • Transport connections to other cities For cities, the use of technical capital is and internationally; twofold. On the one hand, technology provides opportunities to improve the • Quality of telecommunications; and efficiency and the effectiveness – and • Urban mobility. sometimes the extent – of services provided. On the other hand, it represents The technical capital of a city comprises a new and growing market that is three principal components as shown in attracting significant investment. Cities figure 16: want to take advantage of this growing market and want to attract new • Organisational Capital (OC) including businesses. In order to be attractive, organisational structure, networks, city therefore, cities have to provide best-of- management structure; breed technical communications and • Technology, including E-Government, information technology infrastructure. communication and information The introduction of new technologies is technology and systems; and also driven by factors such as research & • Infrastructure, including transport, development, innovation and knowledge energy, water distribution and building management. With increasing competition infrastructure. between countries, cities cannot rely on Technical capital Organisational IT/IS Infrastructure capital E-Government Energy Transportation Buildings Road Industrial Culture and Rail leisure Water Services Air Housing Figure 16: Components of technical capital62 Capitals, the key issues
  • 66. There are clearly overlaps with other electronic transactions betweencapitals. For example, energy governments, citizens and businesses.requirements impact on environmentalcapital, and culture and leisure require G2G e-government involves sharing databuildings to operate in. The development and facilitating the exchange ofof democratic capital is directly linked to information between governmentthe opportunities provided by the IT- agencies and departments. This involvessolutions and networks that come both intra- and inter-agency exchanges attogether in the form of e-government. the national level, as well as exchanges between the national, provincial, and localIn this chapter, we examine the different levels. As the city manager of The Hague,issues that cities face today in maximising The Netherlands, describes it: “Thetheir technical capital and how they are development of e-government and ICTresponding to these challenges and plays a major role in our ambition to beopportunities. the most customer-focused municipality in 2006. Our role will be mainlyOrganisational capital facilitative.”Organisational capital in this context is G2C: Government to citizenwhat is left when the staff go home at theend of day. The intangible elements of Citizens increasingly want to be treatedorganisational capital are research like customers. Their access toprograms and development, systems of information and communicationeducation, fiscal policies and public technologies in other areas of life raisesprocurement policies. The tangible their expectations of public services, andaspects include everything that is owned so they expect cities to follow the moveby the city such as buildings, electronic into technology in order to improve ornetworks and other tangible goods. extend their services. The growing demands on the public sector come at aTechnology (E-Government) time of stagnant economic growth in most industrialised countries. This means thatToday, cities cannot afford to ignore the the public sector has to respond byadvantages of new technologies. “These learning to do more with less and one oftechnological advances arise from the the best ways to do this is by improvingintensification of economic globalisation their efficiency and productivity by usingand increased competition between ICT networks. For example, the city ofcompanies and territories” says Madrid’s Zurich, Switzerland, in response to thisCouncillor of Economy and Citizen important trend has defined a vision ofInvolvement. how it sees the development of itsCities are a key institution in the life of administrative role: “The goal is antheir citizens, and as expressed by city efficient, process-oriented and leanleaders in Madrid “Cities are the first, administration which at the same time ismost recognisable and perhaps most service-oriented and populist.” Similarly,closely felt levels of administration for the Luxembourg is aiming to provide ‘one-citizen, they are the simplest vehicles for stop-shopping’ for citizens by creating arelating to a global arena.” One new way central agency (Biergercenter) and itsof responding to this statement is by virtual equivalent (the eBiergercenter) todeveloping e-government solutions. provide simpler, more direct relationships between the city and its citizens.G2G: Government-to-government. In practical terms, cities are looking atIn many respects, the G2G solutions form improving how requests/documents canthe backbone of e-government. Some be processed more effectively andobservers suggest that enhancing accurately by the administration.governments’ internal systems and Electronic document management andprocedures is a prerequisite for successful workflow allows, for example, a writtenCapitals, the key issues 63
  • 67. Cities of the future - global competition, local leadership request that is transferred to an G2B: Government to business Strategic questions: administration by a business or citizen to But e-government is not just good for be digitalised at 9:00 am, available citizens – business will receive benefits Do citizens enjoy convenient, one-stop immediately to a qualified agent for too. Businesses would welcome lower access to services and information? To processing, available for validation at compliance costs. Like citizens, what extent are services organised 11:00 am, and with a response sent on businesses want government to deliver according to citizens’ needs, as the same day. The benefits are improved information and services in an easier, opposed to the administration’s own service quality and improved efficiency, cheaper, more accessible and responsive, requirements? Is the public sector transparency, consistency and integrated, and customer-oriented way, so culture keeping pace with technological collaboration as well as traceability of they can more easily meet their legal and change? actions from start to finish. regulatory obligations. Local and central governments are The G2B sector includes both the sale of increasingly focusing on the outcomes surplus government goods to the public, (the impact of their services) as well as as well as the procurement of goods and the outputs (how they deliver them), to services. Although not all are directly achieve better results for their citizens. dependent on the use of information Achieving an outcome-based approach technology, several different procurement means that separate agencies need to methods are used in relation to the G2B work more effectively across their sector. Performance-based contracting is traditional boundaries and collaborate a method by which the payment made to with other agencies, stakeholders and the contractor is based on the actual their customers. goals and outcomes of the job. Share-in- Savings contracts are those in which the In response to this, governments are contractor pays for the up-front costs of a developing new measures of performance project, such as the installation of a new that focus on outcomes. New Zealand, for computer system, and receives payment example, has established a set of criteria passed on the savings generated by that it will use to measure the success of switching from the previous system. its e-government initiative: • Citizen convenience and satisfaction - Information technology and Services provided anytime, anyhow, systems anywhere. People will have a choice of channels to government information “As ICT affects almost every aspect of our and services that are convenient, easy lives Toronto makes a point of being at to use and deliver what they want; the centre of this kind of development.” David Miller, Mayor, Toronto, Canada. • Integration and efficiency - Services that are integrated, customer-centric Technological change is only a part of and efficient. Information and services achieving these goals, and the Internet will be integrated, packaged, and will not fully replace all the traditional presented to minimise cost and ways that governments and citizens improve results for people, businesses, interact. On its own, technology does not and providers; and guarantee better public sector • Participation in government - People performance. Success also depends on will be better informed and better able making ongoing improvements to the to participate in government. design, operation and culture of the public sector, so that it can better respond to citizens’ changing demands. Governments’ awareness of the importance of e-government to improve the delivery of public services has come about as a result of two related phenomena.64 Capitals, the key issues
  • 68. First, the pace of globalisation has Communicationinterwoven intra-country trade, investment The Internet, and its associatedand finance opportunities into technologies and business models, isinternational networks, with cities seeking profoundly affecting the way government,new ways to provide more competitive business and people interact. Governmentproducts and services. Secondly, is adapting to this new environment in aadvances in Information Technology (IT) way that will eventually transform how itand Information Systems (IS) have operates.presented new approaches to theintegration of these networks and the The Internet is a means for a city to reachimprovement of the efficiency of citizens (current and potential) as well asbusinesses and services worldwide. businesses (current and potential). The web site of a city often now extends theIn the process, the revolution in public administration services toinformation technology has made households. For example, allowing aunprecedented amounts of information citizen to request a birth certificate overavailable around the globe, leading to an the Internet is a time saver for the citizenexpanded global marketplace for goods, and the and ideas. To be successful in this new environmentCities all over the world are recognising governments need to work together morethe power of these communication tools, effectively, sharing resources andproviding access to learning and integrating their services. People andknowledge infrastructure, and forming businesses will then have a better, morecross-boundary virtual communities for consistent experience of government. Thiscollective action. At the same time, approach will also help reduce the costspeople are becoming aware of the of delivering services online and throughimmense opportunities presented by other channels.virtual global networks for reformingpolitical, economic and social powerstructures. Government and employees InfoComm education Knowledge management Government Robust Infocom infrastructure and Operational efficiency improvement management Technology experimentation Electronic service delivery Government Government and citizens and business Source: Strategic Programmes of Singapore – The e-government Action Plan (2000–2003)Figure 17: Integrating e-government actionsCapitals, the key issues 65
  • 69. Cities of the future - global competition, local leadership Infrastructure This view is confirmed by the city of Barcelona, Spain: “…we must create The infrastructures of a city can be mobility and transport networks that can organised into transport and logistic cover the entire territory and guarantee infrastructure, energy and water the existence of basic infrastructures for infrastructure and last, but not least, the the flow of goods and people.” building infrastructure. Increasing urbanisation in most cites is On a strategic level, cities have moved raising the demand on inner-city from ad-hoc planning to a more integrated transportation and traffic organisation. and strategic approach to urban Even for cities experiencing de- infrastructure planning. This approach urbanisation, transportation and traffic is a makes it easier to plan ahead, taking into Strategic question: account all the issues and constraints, hot topic for people living outside but travelling regularly into the city. How to provide a good transport and and helps in finding the right solutions. logistics infrastructure to respond to an The days when cities could plan their Many cities are confronted by traffic increasingly mobile population and to development without having the complete congestion and are trying to respond with attract businesses? and overall picture and without attempting the construction of new roads, expansion to look into the future are over. There are of airports, bridges, etc. One such is the many examples of this forward looking, city of Belgrade, Serbia and Montenegro integrated approach: which sees this as an urgent priority, says City Manager Bojan Stanojevic: “Belgrade • In South Africa, The Nelson Mandela needs a thorough reorganisation of traffic, Metropolitan Municipality has which implies construction of a ring-road, developed a business plan entitled the and several bridges.” Others are trying to Infrastructure Development Plan (IDP); find the right balance between the and different existing means of transportation • To plan for the future, the city of in order to alleviate this issue. Luxembourg is mapping out a strategy Transportation is, of course, also a source in the form of an urban development of pollution and noise that affects quality plan which includes traffic organisation, of life in the city. The recent increase in construction and urban development energy costs, caused by the sharply rising projects. price of oil, is a more recent issue that strongly affects the transport system. Citizens are concerned or are sensitive to Transport all these issues as they affect their well- The population of most cities is being, as the example of Zurich, increasingly mobile. Being aware of this Switzerland, shows: “The challenges of change, the need to provide an city mobility are summarised in three infrastructure that supports this trend is – action areas: mobility strategy, noise for all cities – a significant challenge. protection and infrastructure projects for Cities need to manage the flow of people traffic. Traffic in the city of Zurich was to and from the city and also the traffic viewed as the biggest problem in the generated by the exchange of goods and 2003 resident survey: traffic jams, tough services arising from the city’s role as a traffic, high noise level and air pollution.” marketplace. Indeed, a critical success factor for many cities involves finding the Individual transportation by road is probably best way to leverage the logistic and the most inefficient means, but remains the transport network in order to attract most flexible. Unfortunately, road traffic is businesses for the sake of the economic limited by the capacity of existing roads development of the city. This is a view and parking space, which, quite often, shared by the leaders of the city of cannot be expanded further or can only be Zaragoza, Spain: “The key is having very expanded at the cost of losing space for open cities with good transport structures residential or commercial buildings. Hence, in which anyone can do business.” many cities are increasing parking prices or introducing measures like London’s, UK,66 Capitals, the key issues
  • 70. Congestion Charge in order to encourage Energy supplythe use of public transportation. Air travel is Nobody denies that energy infrastructure Strategic questions:also limited by the size of airports, many of is critical for every city and demand is Is there still a need for an effectivewhich cannot be expanded significantly due increasing constantly. Some cities have solution to traffic organisation? Areto the noise they generate and the lack of experienced blackouts which took people, some familiar forms of transportavailable space. In response to these as well as energy suppliers, by surprise enjoying a new lease of life?constraints, some familiar but neglected and confirmed the lack of reliability of theforms of transport like trams are enjoying a energy supply and the extent to which ourrenaissance. Trams are enjoying a new dependence on abundant energy haslease of life in Bordeaux, Lille, Lyon, South, grown.Manchester, London and other cities acrossFrance and Europe. Some cities (like Luxembourg) are still the sole supplier of energy (gas andMany cities, such as Krakow, Warsaw, electricity) to households and companiesBelgrade, Nizhny Novgorod, Dar-es- within the city’s borders. They manage theSalaam, Sao Paulo or the City of Morón, entire distribution network and sometimesBuenos Aires still need radical the production of energy. The deregulationimprovement to their transport of this market poses a serious threat toinfrastructure to make sure that it can those cities. Providing energy servicescope with the demands of the present used to be a profitable business, used toand provide solutions to the visions that cover deficits from other services likethose cities have for their respective public transportation. As profit marginsfutures. Many of these cities are decrease, those cities will have to finddependent on external financing and new ways to finance their donors to support theirinfrastructure development. Water distribution and treatmentIn many cases, the decision to move Fresh water is one of the most basicsome facilities to the city centre asks needs, but it does not enjoy the samecities to revisit their transport visibility as other services. But the supplyinfrastructure. The City of Oslo, Norway, of both freshwater and sewage treatmentwhich plans to move the university and are prerequisites for any city. Bothresearch communities to the city centre, is services require an important distributionconfronted with this situation: the City of network as well as storage and treatmentOslo will have a unique challenge to build capabilities; facilities for which most citiesup a social infrastructure and a well are responsible.functioning transport and public transport Most cities view these services as a costsystem. Strategic question: centre as they fail, in most cases, to beA few cities have very special financed by the prices or fees that cities Some cities are responsible for waterrequirements like hosting the Soccer ask for these services. In addition, cities distribution and treatment. Do pricesWorld Cup or the Olympic games. These and municipalities usually do not account need to be adapted to cover the overallcities view this as an opportunity and are for their investments in this infrastructure costs of the infrastructure?planning on leveraging these occasions in (no depreciation of the assets). Prices areorder to develop their infrastructure: therefore set at a level that is too low toSouth Africa, hosting the Soccer World cover the overall costs related to theCup 2010, will make Johanesburg water infrastructure. The Europeanfundamentally different. These differences Commission has set up a directive withwill come from significant infrastructure the objectives of improving water qualitydevelopment in the areas of roads, water and decreasing pollution in rivers andand electricity, amongst others. underground waters by 2015. This can only be achieved if the price of the waterIn the end, it all comes down to serving service covers the cost. Therefore, thethe citizens. Providing a good and reliable prices of this service need to be redefinedtransport infrastructure in the city is one by taking into account the overall costs ofway of helping cities to connect with their the water infrastructure. Much work is stillcitizens. ahead in order to move in that direction.Capitals, the key issues 67
  • 71. Cities of the future - global competition, local leadership Building Infrastructure Hopefully, more cities will be able to use Strategic question: Buildings and their infrastructure are their legacy in this way so that the probably a city’s most visible assets. The advantages of the past can be re-used to How are infrastructure development social, political, cultural and administrative prepare and develop a prosperous future. plans mapped against anticipated economic development? functions of a city all need buildings to Conclusion operate in. Investments in a city’s infrastructure are key to facilitate The demands on a city’s infrastructure economic growth, including investments today exceed simply the provision of in residential infrastructure. Decent transport and utilities – although these housing is one of the fundamental represent a still considerable challenge in conditions for life and a key objective for their own right. Infrastructure now also many city governments as shown for includes information technology and example by the city of Nizhny Novgorod communications that link the city with in Russia: “Our main objective is to citizens and businesses. provide for comfortable living conditions for city dwellers.” Citizens now expect fast, responsive service from government, and want to be Many cities face significant challenges to able to transact their dealings with the city their efforts to provide affordable and online, efficiently and effectively. comfortable housing. Increased land Businesses are attracted to cities that prices, for instance, is certainly an issue offer them sophisticated communications when considering building new infrastructure, along with efficient infrastructures. Ever increasing land prices transport and logistics. are impacting housing and living costs and could act as brakes on the In combination these pressures mean that development of a city. The city of Madrid, cities have to find new ways to develop Spain, faces such a situation and views their infrastructure in an integrated way. “the evolution of land prices (residential/ They have to develop new partnerships, industrial/tertiary) as a critical factor in collaborations and ways of working that absorbing, attracting and retaining can help them to deliver infrastructure economic activity and population”. solutions that are efficient, environmentally sustainable and cost- Nevertheless, other circumstances are effective. allowing cities to redevelop and reinvigorate previously neglected areas, and in doing so to create new housing and social infrastructure. As cities change from having an industrial base to a service driven economy, former industrial areas can be used for other purposes, such as housing. The example city of Oslo, Norway, shows how the city government re-designated the existing infrastructure by leveraging the history and the spirit of the city: “For City of Oslo, the term ‘city by the fjord’ is a metaphor for this transformation, where former dock areas are converted into living and business spaces. We have prepared for 40,000 homes during the next ten years and are arranging a great house-building project.”68 Capitals, the key issues
  • 72. 4.6 Financial capitalEvery city is different in appearance and The situation for African cities is by faratmosphere. So, too, is each in its more dramatic. Despite some financialfinances. Differences in the structure of support from national governments orgovernment, the financial system of each donor agencies – usually only for thecountry and the revenue streams available initial construction of facilities, not theirto the municipality create broad on-going operations – municipaldifferences in the financial structure of authorities must rely overwhelmingly onevery city. fees, tariffs and local taxes, mainly property taxes.The current situation Through such taxes, the better-off sectorsDespite different financial systems most of society – those able to own taxablecities have one thing in common – property – help pay for services thatincreasing financial pressures and a drive benefit a broader layer of the population,to deliver value for money in public including some of the poor.service delivery. Actually collecting all the taxes that couldAcross Europe, and in other parts of the be paid, let alone expanding the tax base,world, there is a wave of decentralisation as is not easy. Property valuations are oftennational governments offload more incomplete and out of date, while it is veryresponsibility for public services onto local/ difficult to value property in unplannedcity governments (to name a few: Vienna, residential areas, since legal ownership isLiège, Belgrade, Yokohama, Perth, City of poorly documented. Many taxpayers areMoron, Buenos Aires). Meanwhile, rising also reluctant to pay what they owe,unemployment strains local social services especially if corruption is widespread.while hurting tax receipts. As aconsequence Milan could face a downgrade In the USA, communities ranging fromof its municipal bonds, while Lille, Frances Atlanta and Buffalo to Chicago and Sanfourth-largest city, has asked for emergency Diego are also experiencing difficulties, asaid. Even wealthy Stockholm, Sweden, may illustrated in figure 18. The common trendhave to raise taxes because of runaway for cities since the 1980s has been one ofspending on health care. declining federal support – from the Reagan Administration to the present day.German cities are most at risk in Europebecause so much of their tax income istied to business profits, which canfluctuate dramatically from year to year.Berlin, for example, is burdened bycrippling interest payments on pastborrowing. The city is currently seekingassistance from the federal government inthe form of debt relief. In France and Italy,by comparison, city budgets dependprimarily on real estate taxes, wherereceipts are more stable.So far, Europes urban financial woes arevisible mostly in small ways, such aspeeling paint in school hallways oroverflowing rubbish bins in public parks.Capitals, the key issues 69
  • 73. Cities of the future - global competition, local leadership 3.0 2.5 2.0 1.5 % 1.0 0.5 0 -0.5 -1.0 1996 1997 1998 1999 2000 2001 2002 2003 2004* * Budgeted Source: National League of Cities Figure 18: Declining fortunes: % change in contrast dollar revenue for US cities How did American cities – or all other There are also problems with local taxes. cities worldwide – arrive at this point? Many cities rely too heavily on either a Most obviously, any sluggishness in the sales or property tax, further exposing economy hit cities all over the world really them to swings in the economy. These hard, raising expenses and holding down taxes have not in all cases kept pace with revenues. For example, city hospitals face demographic and economic changes. For much higher costs when residents lose example, a growing proportion of those their jobs and, with them, their health with jobs in the city now live in the insurance. The same job losses can mean suburbs meaning that, while they spend unpaid taxes. their days in town, their property taxes go to another local government. Similarly, the Soaring compensation for municipal sales-tax base is shrinking. In 1960, employees has become a nationwide goods (which are taxed) represented problem as well. Such cities as about 60 percent of all sales in the United Philadelphia, San Diego and Houston all States versus 40 percent for services find themselves saddled with high (which usually are not taxed). Today, that personnel costs and staggering unfunded ratio has flipped. Surging online sales also pension liabilities. Unlike corporations, cut into city revenues by reducing the which must put money into their pension demand for retail outlets. plans when assets fall below a certain level, city governments are free to contribute when they want to. The Short term solutions resulting temptation is to grant generous The answer to such tax problems seems benefits today and push the liabilities into straightforward – cities need to recalibrate the future. their revenue sources. This requires reforms but change can be hard and These days, cities cannot rely on support longsome. Politics often blocks efforts from the states or the federal government. and restrictions may result from taxpayer revolts. Hence, instead of solving the problem, most cities react in an ad hoc manner with temporary solutions that only push the problems into the future.70 Capitals, the key issues
  • 74. One way could be to accept higher debt and minimal cost, regardless of what thelevels, although this has its own service is? Or are partnerships withlimitations. In the USA, cities have already private investors a more likely solution foraccrued an enormous debt burden to services in which the city does not have afinance their day-to-day operations- in core competency? Should, for example,some cases reaching constitutional debt the city of Johannesburg, South Africa,limitations. The same has happened in cover all aspects of energy, water andmost European cities. In Germany, former waste management or would it beChancellor Schröder drew derision from cheaper and more effective if aGerman mayors when he offered to partnership with a private investor wasprovide low-cost loans. Many cities are established? The city of Dar-es-Salaam,already so heavily indebted that state Tanzania, has enacted a number of suchauthorities, who issue debt on behalf of arrangements, and the Mayor Kleist Sykesmunicipalities, will not let them borrow says: “The recent spate of privatisationsany more. of public utilities, notably electric power and water, are too recent to be ratedHence, almost all cities are responding by unqualified successes, but all the signscutting back personnel and government are that they will eventually benefit thespending in areas other than public safety, less privileged inhabitants of Dar andcurtailing capital and infrastructure allow the City Council to focus on otherinvestment, raising user fees and charges, pressing issues.”and drawing down contingencies, or rainyday funds, which cities set aside foremergencies. Longer term solutions This leads us to the next section, whichIn response to the deteriorating fiscal examines how cities can address thecondition of cities in the USA: problems of resource gaps – between income and expenditure and how they• 47% of all cities increased fee rates in can make their resource allocation and 2003; planning as efficient as possible.• 30% reduced city employment; Cities have a wide range of possible• 29% imposed new fees or charges on instruments to choose from when it services; comes to the question of improving their financial situation. In addition to the• 21% reduced actual levels of capital already mentioned short term solutions, spending; and local governments need to seek out revenue sources not tapped before.• 11% reduced city service levels. Public private partnershipWhat services do cities actually As the public sector continues to seekneed, what must they offer? alternative means to fund theFurther increasing fee rates and reduced development and rebuilding of essentialcity service levels raise the question – infrastructure and services, it haswhat services can and should a city increasingly turned to innovative projectprovide in the 21st century? finance, and hybrid public and private debt financing models, like a PublicIn general, cities provide a large and Private Partnership (PPP).diverse range of services. Most of themsupply and administrate the vast majority A PPP is a partnership between the publicof public goods such as safety, education, and private sector for the purpose ofhealthcare and social welfare to their delivering a project or service which wasinhabitants. In an age of specialisation, is traditionally provided by the public sector.a city always in the position where it is The PPP process recognises that both theable to deliver all services at best quality public sector and the private sector haveCapitals, the key issues 71
  • 75. Cities of the future - global competition, local leadership certain advantages relative to the other in Outsourcing/privatisation the performance of specific tasks, and can enable public services and Another point to consider is the question infrastructure to be provided in the most of a total transfer of services by entering economically efficient manner by allowing arrangements with third parties who have each sector to do what it does best. Many invested in developing process and cities are exploring the possibilities of service excellence. The city government PPP, summed up by Ms Inger Nilsson, can take advantage of this investment by City Manager of Malmö, Sweden, who contracting with third party suppliers says that funding city projects “will –who remain accountable to the city – to increasingly be addressed by solutions execute specific services and functions, based on partnership in various forms to often at a lower cost to the city. solve different issues. The municipality will Such services range from back office no longer be solely responsible for processing through to parking everything as it is to some extent today.” management and street cleaning. For example, municipalities like Hamburg, Germany, have privatised former public companies, such as the Hamburg Federal State Hospital, and Nairobi, Kenya, which privatised its garbage collection in the central business district. Services now performed by private contractors have Case study - Public private partnerships, London, UK One of the largest and most complex public infrastructure projects of recent times was the London Underground Public Private Partnership. In short, the PPP structure divides the London Underground into four parts for the next 30 years – three private sector infrastructure companies, or Infracos, and a public sector operating company, namely London Underground. The three Infracos take control of London Underground’s assets – the trains, tracks, tunnels, signals and stations – which are effectively privatised for the next 30 years. London Underground will manage the PPP contracts and provide train operators and station staff. The delivery dates for, as an example, new trains and refurbished stations have already been agreed and are written in the PPP contracts. PPPs are all about negotiating deals that are good for both sides. The private sector wants to earn a return on its ability to invest and perform. The public sector wants contracts where incentives exist for the private sector supplier to deliver services on time and to specified standards year after year. In that, the public sector shares an absolute identity of interest with private financiers whose return on investment will depend on these services being delivered to those standards. Central to any successful PPP initiative is the identification of risk associated with each component of the project and the allocation of that risk factor to either the public sector, the private sector or perhaps a sharing by both. Thus, the desired balance to ensure best value (for money) is based on an allocation of risk factors to the participants who are best able to manage those risks and thus minimize costs while improving performance.72 Capitals, the key issues
  • 76. saved Chicago, USA, taxpayers millions – The situation requires more transparentincluding custodians, office-product cost budgeting in order to improve Financial management -purchases, tyre collection, towing and strategic planning with operative and City of Westminstertraffic signal design. democratic controlling processes; a point Westminster council has an exemplary echoed by Mr Elmar Ledergerber,However, there are risks and record in delivering good quality, cost president of the city of Zurich,shortcomings. In Nairobi, Kenya, for effective services, and was awarded Switzerland, “There is an impetus towardsexample, private contractors operate the prestigious ‘Council of the Year’ a generally recognised quality standardmainly in middle and higher-income areas, Award in 2004. for accounting for the public sector. Inwhere residents can afford to pay. In other particular, planned changes will result in Keeping local taxes as low ascities, private taxis and bus companies greater reliability and transparency in the possible is a key part of the council’sare more expensive, and only serve the reporting of financial performance.” agenda. On-going financial pressureslucrative routes. The goal is the implementation of full- across local government means that costing for all products and services. At the council needs to seek ever moreRun the city like a business present, the different accounting and innovative and creative ways toWhile politicians score points with calls controlling techniques of many cities and deliver its services. Innovative"to run government like a business," after organisations are not transparent. It is outsourcing arrangements mean thatElection Day they find it’s just not almost impossible to see if costs can be 60 services, employing 400 people,possible. lowered because public departments are are now delivered by the private not able to calculate the true costs of their sector and a customer call centre,Government officials have many "bosses" products. It is therefore also very difficult which has handled four million calls into consult before making decisions, from to evaluate any outsourcing of production. the first two and a half years,ad hoc committees to legislators to providing a high quality service tocitizens themselves; they find it is What are needed are integrated cost citizens. The council is alsoextremely difficult to manage career accounting systems. Cities that implement investigating options where it canworkers whom they did not hire, and cost accounting will gain a much clearer ‘trade’ services, that is, to deliver andcannot fire; from their first days in office, overview of cost drivers within the manage services on behalf of otherthey find themselves in crisis management administration and its tasks, and find public sector bodies.mode; and the incentives that create ways to drive change towards cheaperefficient businesses – cash bonuses, service delivery.raises, promotions – do not always exist By using this method, city governmentsin government. can define their services in terms ofWhen government fails, it cannot simply inputs, outputs and outcomes. Ashang an "out of business" sign in the front previously noted, measuring outcomeswindow. The troubled government cannot across government operations issimply stop providing services – from becoming ever more important torepairing roads to preventing crime – that demonstrating policy effectiveness toare still needed. citizens.However, these differences do not mean In balancing financial considerations,government leaders cannot share short term pressures have to be weighedbusiness’s entrepreneurial spirit. Any against long term pressures. A goodinstitution – public, private or non-profit – example is public investment in long termshould be innovative. Any agency can necessities, such as education, versusprovide incentives for improved employee short term requirements such as theoutput (such as new duties or greater financing of current infrastructure projects.influence over decisions). All successful Financial planning and allocation can beorganisations must strive for efficiency better accomplished if founded on a solidand financial discipline. base of current costing.This leads us to the point: if there is asilver lining to the crisis, it is that hardtimes are forcing financial discipline oncity governments.Capitals, the key issues 73
  • 77. Cities of the future - global competition, local leadership Conclusion The analysis clearly illustrates that big Master plan cities worldwide face a vast range of e.g. financial challenges, some unique to Thriving economic climate certain countries or cities, others common to many areas. All cities need to address High quality government services the questions of what services to provide and how they can finance their provision, Leadership among benchmark cities while at the same time investing in the future that they want to offer to their citizens tomorrow. To find a reasonable solution to these Goals inherent tensions requires a process of e.g. change management, including a profound analysis of the status quo Provide and maintain first rate (especially of the numbers), and a infrastructure thoughtful planning and management Ensure City’s long-term financial consultation. The analysis and ability to deliver involvement of the various stakeholders should be part of this process. Attract and retain a prosperous business community A working group should generate a vision, which sets out goals and tasks. Ensure attractive and well The plan should outline what needs to be maintained City done and how to do it in order to ensure that the city grows in an orderly, well thought out fashion and that the needs of the city will be met. It should not be seen as a static blueprint of how to get to a Tasks specific end point. It is more a living e.g. document that provides continual Define and develop revenue guidance for the work of the citys leaders strategies to enhance the City’s and staff. economic base Such a process is challenging of course. It Evaluate and recommend revenue shows the big picture and gives clear and enhancement and cost reduction easily communicated guidance for the strategies to improve the financial work of the citys leaders and staff. In strength of the City addition, cities should try to learn from the experiences of others, examine and Provide prudent financial benchmark the own plans against the management and facility success and failures of others. This will maintainance to support a first-rate also help them to develop and implement infrastructure thriving economic financial structures that meet their present climate and future needs. PPP Outsourcing Financial discipline74 Capitals, the key issues
  • 78. Cities of the futureChapter 5Summary and conclusionsIn the preceding chapters we have examined some ofthe trends and developments that are shaping thefuture of cities around the globe. Though context hassubstantial bearing on the precise form in which thesetrends manifest themselves – every city is different afterall – we see some significant common themesemerging.Summary and conclusions 77
  • 79. Cities of the future - global competition, local leadership Global trends accountability required to make sure that their engagement with citizens (both on Aside from a city’s physical infrastructure an individual and corporate level) can and geographical location, its most inspire confidence and trust to create the obvious characteristic is its people. And sense of partnership that cities need to there are some significant forces shaping deliver their visions for the future. the future of people in all cities. An ageing population in many parts of the world is Leadership is a critical quality within creating a demographic pressure and cities. Strong, courageous and some tough economic challenges that all imaginative leaders are needed to make city governments have to face. sure that the futures that cities have Communities are becoming more envisioned for themselves can be realised, fragmented, as individualism and with all citizens participating and actively consumerism are increasingly dominant engaged with the collective effort to modes of behaviour. Faced with the embrace and react positively to the global increasingly global influences that are trends sweeping the world’s cities. shaping the way people live and work, cities have to find ways to understand and Challenges: global and local react to their citizens’ needs and No city is exempt from the challenges that preferences in rapidly changing globalisation has created. Competition circumstances. between cities is intense. Environmental The world is getting faster. Change threats are increasing and security is a happens more rapidly than ever before major concern for city-dwellers and high-technology is now one of the everywhere. most powerful drivers of that change. City economies that have relied on the Cities have to learn how to embrace the industrial certainties of the past now find possibilities of new technology in order to themselves vulnerable to new competitors create thriving communities in which offering cheaper labour. Cities, in the west employment can flourish and citizens can in particular, have to make sure that what make use of the opportunities for they offer fits the aspirations of the people interaction and dialogue with their city that will bring creativity and innovation that new technology creates. At the same with them to help transform their cities. time cities must be careful not to leave The shift to a knowledge-based economy people behind – the digital divide may be requires cities to attract and develop invisible but it can create very real innovative businesses and individuals who problems if cities are not able to address can help them move towards sustainable the differences between the digital ‘haves’ growth and new jobs. and ‘have nots’. Citizens are increasingly consumerist in More people live in cities than ever before. their attitude to city services, and yet Increased urbanisation, and the revival of there is also a tendency towards political previously abandoned areas of cities, apathy and cynicism. This is brings great opportunities but is not demonstrated in the generally low without its challenges. turnouts at municipal and city elections. Cities are faced with a greater diversity of City responses populations, so that they have to develop Cities need to establish a dialogue with new ways of integrating and including their citizens and create mechanisms and increasingly varied groups of people. structures that make them more accountable and open to the changing The city is beginning to change its role demands they face. Public trust is a key from one of provider of services to one issue for cities and they are developing whereby it facilitates the collaboration and the corporate governance structures that partnerships required to deliver services. will deliver the transparency and The focus of city administrations is78 Summary and conclusions
  • 80. moving away from their own strengths lie, both in a local setting and aorganisational imperatives to a citizen- global context, and where morecentred approach that places citizens, encouragement and intervention isand their needs, at the centre of all needed to develop their intellectualservice provision. capital. The city government can demonstrate its leadership by activelyIn the light of these challenges cities need pioneering the way that it introducesto develop their visions and then create innovation around the services it providesthe appropriate structures, governance and by doing so can help to foster aand environment in which those visions creative culture. City leaders need tocan be realised. To do this, they need to participate and interact directly with theunderstand the assets – or capitals – that source of their future intellectual andthey have and how these can be creative wealth and act as facilitators ofdeveloped and directed to take the city the content that the new economy offorward on its journey to the future. experience and knowledge demand.Managing capitals The strength of a city largely resides in its people. If a vision for the future is to beIn this report, we have analysed the successfully realised then all citizens needassets that a city has (or needs to to feel included in and consulted aboutdevelop) and grouped them into the their place in that future. Better forums forfollowing types of capital: interaction and the exchange of ideas and• Intellectual capital and social capital; views are needed. A sense of ownership and inclusion can be fostered by• Democratic capital; encouraging local, neighbourhood initiatives that celebrate the achievements• Cultural and leisure capital; of citizens who have responded to• Technical and environmental capital; and challenges in a positive and creative way. The search for good examples should be• Financial capital. made as widely as possible and city leaders should make opportunities toWhilst each of these capitals requires share their experiences and learn from thespecific knowledge and skills to develop good practice of their peers all over thethem effectively, there are some clear world.principles for managing capitals. Theseinclude having a clear focus on people,property and processes within the Democratic capitalframework of sound corporate One common problem that all cities facegovernance and robust risk management. is the lack of citizen participation in theCitizens must be involved and consulted decision-making process, through bothso that they feel moved to participate in formal and informal political mechanisms.the efforts to realise the city’s vision. Effective engagement can be developed by making government more transparentThese factors all need to be borne in mind and directly accountable.when looking at the different capitals set Communications technology can speedout below. this process up and any number of methods, from online forums to voting byIntellectual and social capital SMS text message, can pull people closer into the political process. UnderstandingTo compete in the global knowledge the needs of different city stakeholderseconomy, cities have to ask the right and forging partnerships with them is anquestions about what the future holds for important step towards fostering civicthem. By doing this, the resulting insight pride among all citizens.and analysis should provide cities with anaccurate evaluation of where theirSummary and conclusions 79
  • 81. Cities of the future - global competition, local leadership Cultural and leisure capital Financial capital A city’s brand reflects and embodies the All governments face the challenge of associations that arise from its physical, having to do more with less. The cultural and intellectual assets. approach to financial management is Understanding the characteristics of each therefore critical. Cities need to – and the interplay between them – helps investigate potential sources of revenue cities to develop their brand strength. To and work to ensure that they explore new develop their cultural and leisure capital, and better ways of driving value from the cities need to identify and attract the services that they offer citizens. range of talented creative people that can Performance management is critical to contribute to the knowledge and this, and so is the way that financial data experience economy. Attracting the right is collected and analysed. Both have a mix of sporting, cultural, business and direct bearing on a city’s ability to make political events can also act as a platform improvements to its services and derive for enhancing a city’s brand and greater value from the financial costs that promoting it to a wide audience. Cities it bears to provide them. need to recognise the diversity of cultural capital that accompanies the increasingly A plan, with clearly delineated goals and broad spectrum of people which the tasks and activities required to immigration introduces. Immigrants need achieve them is essential, as is the to be made to feel welcomed and ‘at communication of the plan using language home’ in order to ensure that the city can that can be easily understood. benefit from the wealth of experience and Addressing the different capitals innovation they represent. summarised above raises a number of key challenges that all cities must respond to Technical and environmental in order to realise their own vision of the capital future. Strategic questions Cities’ futures must be sustainable. And Perhaps the most important that means ensuring that the infrastructure recommendation for addressing these Some pertinent questions to ask about on which a city depends is built with their challenges is to keep asking – and the future include: environmental impact as a primary seeking answers to – questions about the consideration. Public transport, energy future of the city. Advice and insight that • What are we looking for?; supplies, water and waste management may contribute to answering them is • What do we see?; are all essential to the continued worth seeking out, wherever it may come prosperity of a city, so it is imperative that from. • What does the future mean to us, our city leaders ensure that all their policies city and our citizens?; reflect environmental criteria and that they As the above summary and the preceding are implemented through joined-up policy chapters show, cities are hugely complex • What do we want?; and conducted through partnerships. organisations that involve collaboration between – and the interaction of – a wide • What do we do?; The city has a role to play in developing variety of organisations and individuals. technical capital by investigating ways to • Is this a good development?; deliver the services and content which The next section in this document • Who will do it?; comprise e-government. City contains brief interviews with different city governments should look at e-government leaders around the world. We asked them • Who can we collaborate with? and communications technology at all about the challenges their cities face – levels: from government to government both external and internal – how they are • Who can help us?; (G2G), government to citizens (G2C) and responding to them and what their plans • Where can we find knowledge and government to business (G2B). are for the future. Their responses provide best practice that will guide us?; a fascinating and varied account of the and vast array of challenges and opportunities that make cities the dynamic • What resources are required? environments they are today.80 Summary and conclusions
  • 82. 81
  • 83. Cities of the future - global competition, local leadership
  • 84. Cities of the futurePart 2Cities in focusPart 2 of this document contains a brief summary of theinterviews with each of the 44 city leaders and managers whotook part in this study. We asked them about the challenges theircities face – international and national, external and internal –how they are responding to them and what their plans are for thefuture. Their responses provide a fascinating and varied accountof the vast array of challenges and opportunities that make citiesthe dynamic environments they are today.Cities in focus 83
  • 85. 84 Cities in focus
  • 86. List of participating citiesAmsterdam, The Netherlands Malmö, SwedenBarcelona, Spain Melbourne, AustraliaBelgrade, Serbia and Montenegro Montreal, CanadaCity of Bergen, Norway Manguang, South AfricaBerlin, Germany Nelson Mandela Metropolitan Municipality, South AfricaBirmingham, United Kingdom Nizhny Novgorod, RussiaBrisbane, Australia City of Oslo, NorwayCity of Morón, Buenos Aires, Argentina Perth, AustraliaDar-es-Salaam, Tanzania Phoenix, United States of AmericaEkurhuleni Metropolitan Municipality, South Africa Sao Paulo, BrazileThekwini Municipality (City of Durban), South Africa Stockholm, SwedenFrankfurt, Germany Sydney City, AustraliaGothenburg, Sweden Sydney State, AustraliaThe Hague, The Netherlands Toronto, CanadaJohannesburg, South Africa Tshwane, South AfricaJundiai, Brazil Vancouver, CanadaKrakow, Poland Valencia, SpainLiége, Belgium Vienna, AustriaLondon Borough of Newham, United Kingdom Warsaw, PolandLondon, City of Westminster, United Kingdom Yokohama, JapanVille de Luxembourg, Luxembourg Zaragoza, SpainMadrid, Spain Zurich, SwitzerlandCities in focus 85
  • 87. AmsterdamInterview with Mr Job Cohen,Mayor of the City of Amsterdam Mr Job Cohen Mayor of the City of Amsterdam The City of AmsterdamFrom Amsterdam’s point of view, Global and international trends The cities in the Randstad conurbationlarge cities have no choice but to cannot solve the problem of accessibility Competition between large cities will on their own; so co-operation is morecompete. In The Netherlands the increase globally. Asia, and China in appropriate than mutual competition. Thelarge cities will also have to particular, will become an extremely cities in question are already consulting important region. Trading relations withcooperate to deal with the about the problems that they share, and Asian countries will therefore become veryinternational competition, important. International migration will also will step up their efforts to arrive at aparticularly from Asian cities. By remain an issue. Furthermore, the common approach. Each city will have tospecialising and focusing on the develop its own profile and specialisation. European Union will gain more and more Specialisation already comes naturally tocity’s unique qualities prominence as a regulator. the cities to some extent: RotterdamAmsterdam hopes to compete in In our view, large cities have no choice boasts a major port, The Hague has theareas such as education, but to take part in this competition. In International Court of Justice andknowledge and tourism. The aim doing so, Amsterdam will focus on its Amsterdam is known for its culturalis to be a creative centre of unique qualities. assets, its airport, financial centre andexpertise where unique talents high-quality knowledge economy.can develop their full potential. Internal trends Key themes for Amsterdam are:What comes into play here is the To deal with the international competition education, knowledge and tourism. Thetotal range of facilities that the it is important for the Dutch cities to work challenge is to get the population to reachcity has to offer. Job Cohen closely together. The heavily urbanised their full potential where knowledge and western part of The Netherlands forms a education are concerned; only then willexplains how Amsterdam hopes connection of cities called the ‘Randstad’. we be able to put this country on the mapto achieve all this. One of the big problems caused by as a bastion of knowledge and skills and urbanisation is traffic congestion. compete in an international context. TheI AMsterdam is the motto of the geographical location of The Netherlandscity because the citizens are the in Europe is excellent, although thecity.86 Cities in focus
  • 88. Cities of the future - global competition, local leadershipcountry is also vulnerable to shifting trade Internal challengesflows. We will therefore have to focus on The external developments mentionedtrade. We have traditionally been skilled at above necessitate further modernisationcurrent and new trade routes and good at of the city’s internal organisation.languages. We will have to keep working Customer satisfaction is not bad, buton these strengths and improve them should always be one of our priorities; ourwhere possible. service provision has to further improve.Amsterdam’s strength lies in its position We must maximise the potential offeredas a hub. Key concepts are accessibility, by ICT solutions.well-educated staff, expert knowledge Staffing policy has to be aimed at theand multilingualism. recruitment, selection and training of critical and politically aware civil servants.External challenges The Netherlands is a policy-focusedSafety and security issues will continue to country and there are not enough effectivetake centre-stage; they have always been implementation agencies: such agenciesimportant. Choosing between two should be mean and lean.opposing approaches is absolutely out ofthe question. Preventive measures(prevention of crime coupled with Priorities for the next decadeintegration into society) as well as The aim is to be a creative centre ofrepressive measures (tough action, expertise where unique talents canimmediate action against extremists) are develop their full potential. What comesnecessary. into play here is the total range of facilities that the city has to offer: universities (andOur environment (global warming and hospitals) in Amsterdam, culture, finance,rising sea levels in particular) demands the development of the banks of thespecial attention. This is not an issue, IJ river and tourism, of course. Furtherhowever, that can be solved by local innovation is encouraged throughauthorities; it is rather a responsibility for ‘Platform’ (consultation between largegovernments at other levels. cities) and through other platforms. ThisThe city may well, however, suffer the innovation in fact affects the Randstadconsequences. conurbation as one large municipality.An urgent question is whether energy To achieve this vision a long-termsuppliers can keep up with the steep rise strategic whitepaper has been demand (inflow) and whether wasteprocessing (outflow) can remain well This document has been developedorganised. The waste processing plant in together with the business community,Amsterdam, and its financing, serves as institutions (e.g. universities) and excellent example to other large cities. Further development of the vision isSocial developments and the fight against effectively an iterative process, throughcrime and congestion (infrastructure) will which the vision is constantly fine-tuned.continue to pose challenges to large cities. Creative developments partly arise due to the opportunities offered by the city. Encouraging innovation can influence such spontaneity. Collaboration with other partners, some of whom are corporations, is also very important to the development of specific areas.Cities in focus 87
  • 89. BarcelonaInterview with Strategic Metropolitan Planning Office,City Council of Barcelona Joan Clos Mayor of Barcelona Barcelona waterfront, SpainThe information obtained in the Global and international trends The city of Barcelona must be understoodinterview refers to the city of within its metropolitan context and, There are three major issues that will accordingly, we must create mobility andBarcelona in its metropolitan affect the city in the next ten years. These transport networks that can cover thecontext. This is because the refer to the position of the Barcelona entire territory and guarantee the economy in a globalised scenario,representatives of the City existence of basic infrastructures for the physical and virtual connectivity andCouncil of Barcelona thought it social cohesion. flow of goods and people. Likewise, themore appropriate for its availability of telematic-based connectivityStrategic Metropolitan Planning The globalisation process is changing the infrastructures constitutes a key element location of economic activity, affecting in being able to recruit the parts of theOffice to be the source of productive processes that have high many areas and leading to an economicinformation. transition. Some of the key areas are the added value. steady loss of those parts of theThus, we should highlight the Finally, a change is taking place in the production process lacking added value social and demographic basis of the cityfact that the activity of the and the adaptation of the human of Barcelona and the metropolitan area asStrategic Metropolitan Planning resources base to the requirements of a whole that is linked to the phenomenon globalisation.Office goes beyond the area of of immigration. In this area, the challengesintervention of the Barcelona Concerning physical and virtual relate to the fight against discriminationCity Council per se, acting connectivity, the growth of the city and and the social exclusion of immigrants.basically as a frame of the creation of a proper economicreference for the development transition must assure the existence of the infrastructures and installations needed toof municipal policies. meet the basic requirements of mobility, accessibility and connectivity.88 Cities in focus
  • 90. Cities of the future - global competition, local leadershipInternal trends Nevertheless, Barcelona is experiencing a At the political level we will need to degree of malaise in terms of its develop leadership both at the strategicAt the national level, the issues that will articulation of an urban development and operational level. For the former, theaffect the city are particularly the transfer model and model for economic and idea will be to define citizen-basedof financial resources from the Regional technological growth. Thus, the city has strategies, while the latter will consist ofGovernment and the National moved from a centralised perspective putting them into practice.Administration, as well as taking over and without strengthening the web of nucleiexercising the key powers over integration The reputation and prestige of the City that make up the metropolitan area. Onand the regulation of immigration, safety, Council of Barcelona will probably depend the other hand, we see a lack ofeducation and government housing. in the next 10 years on the following convergence of targets emanating from issues:At the local level, the key issues are the the public and private sectors in terms ofgovernability of the metropolitan area in the city’s development model. • Accessibility to the administration byterms of politics, leadership and citizens through a motivated civilorganisation. Of special note are critical Consequences for the city service;aspects such as education, high numbers At this time, at the political, business and • Quality of the cityscape andleaving secondary education, and the civil society levels everyone is aware that maintenance of public spaces;need to strengthen innovation. there is a certain crisis in the development model and that there is a need to link the • Clarity and transparency as seen byIn terms of innovation, the challenges are in new projects to the private sector and the business people in terms of businesshaving the necessary institutions (science citizen. opportunities; andinstallations, technology transfer) thatrequire public investment, especially with In this context, the value of internal • Capacity for dialogue, absorbingthe support of public-private ventures. immigration and cosmopolitanism. initiative, as one of the city’s strengths, constitutes an asset recognised by all the “In conclusion, the main challenge forExternal and internal challenges agents, particularly at the business and Barcelona is to deal successfully with theAt the external level, competition not only cultural level. To this we can add the transition from an industrial economy to aflows from a European environment, but is esteem in which the city’s inhabitants and new model of urban development, basednow international. This has introduced a institutions hold their city. on the knowledge economy.”series of extremely important challengesfor Barcelona in terms of attracting Priorities for the next decadeinvestment opportunities and developing The vision of Barcelona in 2015 is that ofnew activities requiring a flexible a city characterised by the following:organisation of society in terms ofleadership and the creation of integration • An economy based on the developmentdynamics in the metropolitan area. of a value added and innovative culture depending on the growth of newWith regards to business recruitment, industries: such as audio-visual, design,Barcelona is well positioned in terms of the etc;dynamics of economic growth, which is astrength for dealing with the challenges in • New uses of transport based on thethis area. The social fabric of Barcelona is improvement of mobility; andhighly participatory, and more than willingto get involved in policies and initiatives • An education system that can guarantee proper training for our human resources,that are launched by public and privateadministrations and bodies. One of the having notably reduced the number ofcurrent challenges is to link the new school leavers.projects that are being launched by the From the point of view of promoting themunicipal government to the citizenry in city, the strategy must centre onorder to make private and public efforts networking internationally in order toconverge. Thus, of special note is the fact assure the links needed to developthat Barcelona is to a great extent “a self- specific activities, for example, themade city”, having developed its own identification of opportunities in certaineconomic fabric rooted in the city. industries such as aerospace and bio- medicine.Cities in focus 89
  • 91. BelgradeInterview with Mr Bojan Stanojevic,City Manager, City of Belgrade Mr Bojan Stanojevic, City Manager, City of Belgrade The City of Belgrade, Serbia and MontenegroBelgrade (Beograd) has about Global and international trends In the political sense, it is necessary to1.6 million inhabitants. It is divide political functions from state The global or international trends that will functions, to do this a more professionallocated in the south-east of affect the city in the future are: change in administration is needed. In theEurope, on the Balkan the GDP structure, development of the administrative sense, the biggest problem is service sector, development of housingPeninsula, at the confluence of the low level of salaries in the construction, increase in the need tothe Sava and Danube rivers. It communicate and development of the administration, which acts as a discincentiveis one of the oldest cities in traffic infrastructure. to existing employees and deters those whoEurope and since ancient times may be seeking employment. The solution to both problems lies in decentralisation andhas occupied an important Internal trends in setting new criteria for the functioning ofposition as an intersection The main local trends in the region are the state administration.between the roads of Eastern stabilisation of the political situation andand Western Europe. We privatisation of the public sector. Relevant corporate governance issues are: the new organisation for the stateinterviewed the City Manager The major internal challenges which the administration, restructuring of the publicMr Bojan Stanojevic and asked city is facing arise from: the reorganisation sector and partnership between thehim about the challenges he of the administration and the introduction private and public sectors.faces and how Belgrade is of a more qualified structure in the city administration. Furthermore, there is a The law and the internal regulations defineresponding to them. challenge to reduce the number of recruitment in the city. Reporting is in employees in the city administration and need of standardisation and further restructure the public companies. If the development. Performance management restructuring of the city administration is graded internally and externally (within does not take place, the development of the administration and by the citizens). the city will slow down. The city is currently developing the mechanisms for risk management in business.90 Cities in focus
  • 92. Cities of the future - global competition, local leadershipExternal challenges Priorities for the next decadeThe key social issues that will affect the Belgrade needs a thorough reorganisationmunicipal government are: the local of traffic, which implies construction of aeconomy, traffic, social politics, healthcare ring-road, inner ring-road and severalpolitics and safety. bridges, as well as three lines of the light metro. All this will create conditions forBelgrade’s external challenges are: the attracting investment, simplify proceduresapplication of international standards in for issuing building permits and changesthe city administration, attracting foreign in the city’s economy. The service sectorinvestment and increasing the possibilities will generate 70-80% of social product infor external financing of infrastructure Belgrade.development projects. We are hoping to build a brand that willThe development of corporate social position Belgrade as the capital of Southresponsibility is still in the early phase but East Europe. The brand will be developedis being further stimulated by the by creating special privileges for investingpresence of big international companies in Belgradewith this business philosophy. A largenumber of local companies support the The city authorities need to adopt ahumanitarian aid campaigns organised by service-oriented approach to citizens, asthe city. well as achieve European standards of service delivery. The influence of politicalConsequences for the city parties on local politics must also be decreased and the process ofThe process of decentralisation must decentralisation on the state level musthappen quickly so that local authorities also be completed.achieve similar levels of autonomy tothose achieved by other local authorities The main financial challenge is how toin the European Union and the USA. provide the finance for infrastructure development in the next 10 years andAt the moment not all the necessary how to build a medium-term and a long-economic instruments for shaping policy term financial management system for theare at the citys disposal. In particular, the lacks control over fiscal instruments.The central authorities still have the mostinfluence, so for local governmentsgreater authority would help them tospeed up the regulatory process andadopt new regulations that that will have apositive influence on the citys economicdevelopment.Cities in focus 91
  • 93. City of BergenInterview with Mrs Monica Mæland,Chief Commisioner of the City of Bergen Mrs Monica Mæland, Chief Commissioner of the City of Bergen The City of Bergen, NorwayCity of Bergen is the second We talked to Monica Mæland, Global and international trendslargest city in Norway with about the chief Commissioner of the Increasing global mobility of labour and240,000 citizens. Nearly 25,000 city of City of Bergen, about the capital is one of the most significantstudents are enrolled at the challenges for the future and their global and international trends. Businesses change ownership and soUniversities of City of Bergen. consequences for the city. management, expertise, production andThe city is the port to the Her aim is to keep City of Bergen workplaces move. This influences theNorwegian fjords and is an old as an international city able to city’s industrial base and, through this, aHanseatic city with long meet citizens’ needs and give central part of its financial traditions. Today City them security. Development in international agreementsof Bergen is a modern centre such as the EFTA and WTO, will also have significant consequences for the city inwith great marine, maritime and general terms.oil industries. City of Bergen isone of the few cities in the world Globalisation and increased internationalwhich is governed by a mobility in higher education also create challenges to the city’s ability to attractparliamentarian model where the and keep talented and highly qualifiedcity Council elects a City young people and secure the high levelsGovernment. of expertise which make the city an attractive place for commercial development.92 Cities in focus
  • 94. Cities of the future - global competition, local leadershipGlobal digital development will have a Consequences for the city Citizens’ engagement will converge withsignificant impact on municipal services, their interests as consumers. Their To meet this situation the city hasand these developments create new confidence in politicians will be related to changed both its political andpossibilities with regards to: how well they believe their consumer administrative structure by eliminating the needs are met. The challenge for city district organisation. The municipality• Change and improved communication politicians’ will be to understand and is now organised into two levels of with its citizens; and satisfy consumer needs and communicate government. The city has, to an increased this to citizens.• Methods to provide services, including extent, become an engager of external the possibility of producing digital service providers, creating a more services for other municipalities, or competitive environment for service Priorities for the next decade outsourcing production of digital provision. In the next ten years the city of City of services to producers in other parts of Bergen will engage in the following In the future, the introduction of new the world. specific tasks and projects: digital solutions to increase administrative efficiency, communication with citizens • New Public Management;Internal trends and other aspects of service provision willThe increase in the need for be very important. Services for children, • City of Bergen is and shall develop asregionalisation caused by the the elderly and people in need of medical an international city;development of common labour and services will be strengthened as primary • The development of the cultural sectorhousing markets between the big city and tasks. as a central part of the development ofthe surrounding municipalities is an the city; andimportant development. The importance Mrs Mæland is keen to create activeof municipal borders will decrease and interaction with educational • The municipality shall appear as agreat improvements in infrastructure establishments, local and non-local modern service producer which meetswithin the transport sector will – in the investors surrounding municipalities, citizens’ needs and provides them withfuture – strengthen the regional industry and commerce and through this security. It is important that theperspective. engage them in working on the business municipal is seen as being among the plan to strengthen the ability of the cityNew ways of organising and operating best-governed cities. and its surroundings to meet the externalservice production – increased and internal challenges.outsourcing of service production and theprogress of the municipal as the engager, The scenario for “City of Bergen scenarieras opposed to producer of services – is 2020” constitutes an important part of thisan important trend for the future. process. The city government will have an important role as an advisor orExternal and internal challenges coordinator for business development. It will lay out the grounds and conditions forLocal investors are conservative with network cooperation, and activelyregards to their participation in local participate in such networks. An examplecommercial development through, for of this network cooperation is “Educationexample, an investment fund. This City of Bergen” where the municipalitysituation weakens the foundation of and higher education establishments arecommercial development and can also co-operating to meet targets for increasedrestrict contributions from investors national, international and global mobilitybeyond the region. and competition within higher education.Demographic developments mean that The city’s corporate sector has a strongthe city faces significant challenges to tradition of CSR. Mrs Mæland believesfinance services to meet the needs of its that this influences citizens’ attitudes tochanging population. At the same time the politicians. Increasingly, citizens seecity has a large accumulated economic themselves as consumers of municipaldeficit, which in itself provides the city services.with a significant challenge.Cities in focus 93
  • 95. BerlinInterview with Harald Wolf,Mayor and Senator for Economics, Employment and Women’s Issues in Berlin Mr Harald Wolf, Mayor and Senator for Economics, Employment and Women’s Issues in Berlin View of Berlin skylineBerlin is a city of many faces. Global and international trends • The expansion of the European UnionIt is the largest city in Germany After forty years of division, the reunified means a chance and a challenge at theand is aiming to use its high city of Berlin is on its way to retaining its same time. Berlin is moving into thedegree of creative potential in position among the leading capitals of the geographical center of the EU; at the same time, the acceding countriescoming years to make a mark world. Main factors influencing political and entrepreneurial activities will be represent new competitors on existingfor itself as a city of knowledge ongoing globalisation with increasing markets. Berlin has the chance toand as a centre of excellence competitive pressures, the expansion of redevelop regional economicfor the health industry. Berlin interdependencies that were destroyed the European Union, the trend to anis also seeking to re-establish by the German and European division information society and the demographicitself once again as a major and the consequences of the Second city after forty years World War; andof German division. Berlin • In this way, globalisation as well as the growing significance of knowledge as • As in the rest of Europe, demographicrecognises that its most developments in Germany are an economic factor will benefitimportant assets are its people characterised by a shift in the age locations with a highly qualifiedand its extraordinary attraction structure of society whereby Berlin, workforce potential. As growingto young people from all over competitive pressure endangers however, is only affected to a lesserthe world. Together Berlin and employment in traditional sectors, extent because of its high level ofits people will be able to meet action has to be taken against a attractiveness for young people and itthe challenges of the 21st polarisation of the employment system; can expect a stable development incentury. population for the foreseeable future.94 Cities in focus
  • 96. Cities of the future - global competition, local leadershipInternal trends In the field of traffic and mobility, Berlin city for some years, relies on also combines extraordinary research and empowerment and activation of peopleIn view of the federal structure of development competence with a strong and protagonists within an area. The newGermany and, in particular, due to its own business potential in the sectors of education act delegates morehistorical development, Berlin can not automotive engineering, railway traffic, responsibility to the schools enablingclaim a position that is comparable with aviation and space flight as well as in the them to develop a profile as a center ofthat of other European capital cities. For interface to information technology in social life and mutual encounter within thethis reason, the city is resolutely relying on telematics. city quarter, whereby companies and firmsits own strengths that above all lie in the are also integrated.immense potential of science andresearch, culture and creativity. The focus External and internal challenges A fundamental requirement for ahere will be on markets where growth can Berlin is faced with the challenge of successful city development, however, isbe generated through innovation. mastering economic structural change to overcome unemployment. The creation under the increasingly difficult conditions of sufficient jobs through increasing theIn order to be able to bundle these of the globalised markets while at the competitiveness of the city, therefore, hasstrengths, Berlin is focussing on areas same time securing social cohesion within absolute priority.where a market potential fits with the the city under conditions of an extremelycity’s technological competence. These Shoulder to shoulder with the citizens, restrictive budget situation. Despite a highfields were identified in a widespread trade and industry, science and politics, level of unemployment and increasinglydiscussion process between politics, Berlin will be able to position the city as a apparent poverty, Berlin is nevertheless atrade and industry, science and the desirable place to live and a future- city that offers its citizens ancitizens of Berlin – and they enjoy a high oriented metropolis in Europe. extraordinarily high degree of security anddegree of acceptance. The areas of attractive living conditions.competence are: The high level of indebtedness of the city,• biological and medical engineering; however, represents a particular risk that• information technology, communication will have to be reduced to an acceptable technology and media; amount through consistent budgetary• traffic engineering; and restraint and with the help of the federal• as well as the optical technologies, government and the solidarity of the micro and nanotechnology. German federal states.Berlin is one of the leading cities in thefields of biological and medical Consequences for the cityengineering. Its established scientific In order to overcome these challenges, itinfrastructure provides an excellent value will be essential for Berlin to develop aadded chain for research, pharmaceutical, higher degree of public involvementbiological and medical engineering though new forms of participation by itscompanies. This is one of the main citizens. Berlin has to develop into a cityreasons why a large number of private of civil involvement, marked bycompanies as well as public institutions responsibility and initiative. In some cityhave settled here. districts, there are already some measures, projects in this direction andAdvanced competencies in the fields of initial steps which are being takeninformation and communication towards a “citizens’ budget”. Co-technology also provide an important determination by citizens in thestimulus for the culture and media distribution of resources in the interest ofindustry. The combination of its rich the community should provide Berlin’scultural heritage and the unlimited creative residents with a new form of identificationpotential of the city’s residents and those with political decisions. A package of lawsthat come to the city from all over the for the introduction of plebiscitaryworld, provides a rapidly growing elements such as referendums at districteconomic source of energy for this level is also close to ratification. “Areaimportant sector. management”, which has been practiced in particularly disadvantaged areas of theCities in focus 95
  • 97. BirminghamInterview with Cllr. Mike Whitby,Leader Birmingham City Council, UK Councillor Mike Whitby, Leader Birmingham City Council Selfridges alongside St Martin’s Church, Birmingham BullringBirmingham is a thriving, multi- In the last decade Birmingham Global and international trendsracial city at the economic has adapted and witnessed an A key challenge for Birmingham is how toheart of the West Midlands, amazing transformation, with define itself as a major centre ofwith a population close to a the renaissance of the city commerce and culture and to become a catalyst and engine for both city andmillion people. Its economic centre, considerable growth regional prosperity.role and prosperity were and improvements in the city’soriginally based upon the competitiveness. However, not Leaders acknowledge that Birminghammanufacturing industry, all communities or areas have needs to develop a powerful and internationally renowned brand and arehowever rapid worldwide benefited from this economic looking to other similar cities such aseconomic change in the 1970s prosperity, and the focus of Barcelona and Lyon to learn from theirand 1980s caused massive recent years has been to experiences of building distinctdecline in manufacturing spread this prosperity, through international identities.employment, with serious creating flourishing For the city and region to prosperimpact on the economic life of neighbourhoods across the internationally, Birmingham must becomethe city, and a disproportionate city, where people want to live, the natural hub of the region, bringingimpact in inner city areas. work and invest. together the strengths and assets of the West Midlands region into a unique and more powerful offering. Current economic growth forecasts for the city predict employment and economic growth will outstrip the UK national average up to 2015. Such a turn around has been remarkable. However, to deliver96 Cities in focus
  • 98. Cities of the future - global competition, local leadershipthese positive trends, it will be essential to retail, entertainment and cultural facilities, Priorities for the next decadeensure that the pipeline of regeneration which have all helped to retain top talent. Birmingham’s Local Strategic Partnershipprojects continues to produce major For example, the Birmingham Bull Ring has set out a vision for the city:investment. retail development has received 52 international accolades within 12 month of Birmingham as a city of national andSuccess will also depend on capitalising opening and attracted 37M visitors. international significance, at the heart ofon global relationships and links that are the West Midlands – a city that attractsunique to Birmingham. City leaders have Patterns of employment will continue to investment and jobs;identified three strategic ‘relationships’ change. There will be fewer jobs inwhich could lead to bilateral benefits and manufacturing and more in services. More Birmingham as a city made up of manyincreased prosperity, including: jobs will require high levels of knowledge flourishing neighbourhoods, whose and skills, and Birminghams prosperity residents benefit from the citys economicChicago – learning from Chicago’s will depend on attracting and keeping importance – a city where the differencesexperience of successfully celebrating and such jobs and the people who can do between the most and least deprived areharnessing cultural diversity and, learning them. The city will need to act to prevent being reduced.lessons from its recent economic shortages in key public sector services –renaissance; teachers, doctors, nurses and carers.Northern India – building on the strong Decent homes and quality of life is also acultural, financial and trade links between key issue. The Council manages 70,000the city’s large Indian population and the homes in the city. It is vital that theseemerging economic powerhouse; provide quality living to support social cohesion and harmony and for individualChina – (particularly Guangzhou in Southern citizens to feel a part of the city agenda.China) – building on links with Chinesestudents, residents and the large investors Maintaining and building positivewho are key stakeholders in many city relationships between city government anddevelopments. local citizens is also a key priority. Birmingham is the largest local authority inExternal and internal challenges the UK, serving a diverse population –There is a need to improve transport some with great wealth and others insystems to prevent congestion blocking absolute poverty – with a diverse ethniceconomic growth. Improving transport mix. As such, it is vital that citizens feel thatlinks – within the city and expanding the the delivery of local services and theInternational Airport – is important to supporting governance arrangements isensure that Birmingham is not only responsive to their needs.accessible as a city and city region, but To address this Birmingham is developingalso as a gateway/hub to other parts of a model of governance based on 11the UK and the world. districts or (vibrant villages) to ensure itThe challenge of ensuring equality at the connects and listens to its communities.same time as respect for diversity must In terms of internal challenges, leaderscontinue to be a high priority. Social recognise that there is a need to defineinclusion, social cohesion and and develop ‘team Birmingham’.opportunities that are available to all Essentially this should include all thecontinue to be major tests of success. agencies associated with the city (bothOne of Birmingham’s greatest assets is public and private sector) in addition tohigh quality education. Joined up thinking the voluntary sector – which should workand action have meant the city has been together (in partnership arrangements) toable to retain many of its high quality deliver quality services.graduates. For example, previously derelict National fiscal pressure also means thatparts of the city have been regenerated and the authority must continue to manage itsnow provide modern and desirable living finances prudently and ensure value forspace for young professionals. Coupled money in the delivery of high qualitywith this is the development of world class public services.Cities in focus 97
  • 99. BrisbaneInterview with Jude Munro,Chief Executive Officer, Brisbane City Council Jude Munro, Cheif Eperating Officer of the City of Brisbane The City of Brisbane, AustraliaBrisbane, the capital of Global and international trends The global threat of terrorism is felt inQueensland, is a city of 1.6 Brisbane, specifically in the reallocation of Changing global demographics, including major national funds to mitigate risk and themillion people and Australia’s the potential of worldwide skill shortages city’s economy, like many others, is alsothird largest city. It is a young and the international issue of the ageing affected by the global rise in oil prices. population are key trends impacting theand culturally diverse population of Brisbane and influencing thepopulation on Australia’s East strategic direction of the business Internal trendsCoast. community. An ageing population may Environmental issues such as climate result in escalating health costs and an change impact productivity in Brisbane.This article is based on a increased need for age-specific housing Both the financial and ecological value ofconversation with Jude Munro, as well as labour and skills shortages. land and water assets is diminishing asChief Executive Officer (CEO) of the resources are run down. The emergence of China and India asthe City of Brisbane. economic superpowers is a growing Human and development capital is influence and CEO Jude Munro notes the draining from long established, non- reliance of Australia’s national economy metropolitan regions and Ms Munro notes on developing world commodities to the inefficiencies of cities driven by sprawl support developed world lifestyles. and a lack of national policy or direction on the issue. Post war land use and urban The new international economic driver of planning left the city with low population quality of life is informing the development density, but high road provision, which of housing and residential development in has resulted in both urban sprawl and the Brisbane and is providing a new focus for culture of the car. business.98 Cities in focus
  • 100. Cities of the future - global competition, local leadershipToday, Brisbane has a strong population Issues and consequencesand high levels of migration growth. Brisbane City Council has an increasedHouseholds are tending toward smaller focus on strategic alliances includingunits and are increasingly diverse in their public/private partnerships, partnering andconfiguration. The city is becoming more regional planning. There is alsocosmopolitan, displays an increasing recognition of sustainability, co-productiondiversity of housing and offers greater and ecological services as key principlesrecreational and lifestyle options. for city governance.Pockets of social exclusion are emerging Congestion and private and publicacross Brisbane (as across other transport provisions are key concerns andcomparable cities in Australia) and the the city is focused on boosting greenrapidly increasing cost of housing is transport (buses, bikes and walking) andaccelerating the divide between the haves is implementing Transit Oriented Designand the have nots. and other significant changes to urbanThe city is also experiencing a growing form. There is a focus on major infra-‘inwardness’ which manifests in structure planning and resourcing, with andecreased levels of volunteerism and emphasis on neighbourhood concern for others, along with a Natural resource conservation is a prioritygreater focus on self and family. as the city seeks to implement water conservation and reuse, a CNG bus fleetExternal and internal challenges and waste reduction management.More residents, businesses and Brisbane City Council is also interested intransactions combine to give Brisbane an encouraging civic participation andincreasing revenue base. These economic informed debate on the city’s future, aschanges have resulted in rising affluence well as upgrading its own workforce skillswhich is driving higher expectations of with the deliberate goal of being aninfrastructure, services and facilities ‘employer of choice’.amongst the population. The city’schallenge is to meet the rapidly increasingpressures on infrastructure, utilities and Priorities for the next decadenatural resources. Brisbane’s priorities for the next decade focus on sustainability, accessibility,Jude Munro feels Brisbane will be partnering, creating alliances and regionalchallenged by an emerging skills shortage collaboration.from 2010 and beyond as the baby boomergeneration retires. Brisbane’s competitive The City of Brisbane has created Living inadvantage will stem from an ability to Brisbane 2010 which aims to ensureattract talent to the city in the face of Brisbane is a great city to live in, now andemerging skill and labour shortages. in the future. Together with the community, the city is working towards aThe strategic planning process in vision for Brisbane’s future as:Brisbane is making good progress andthere is a high level of resident • An accessible city;satisfaction in the city. However, the • An active and healthy city;three-tiered government system (federal, • A city designed for subtropical living;state and city) adds complexity to thegoverning mix and decreases • A city of inclusive communities;coordination. Brisbane City Council has • A clean and green city;responsibility for the entire city area which • A creative city;makes the city unique in Australia as othercity councils have responsibility for the • A regional and world city; andcentral business district alone. • A smart and prosperous city.Cities in focus 99
  • 101. City of Morón, Buenos AiresInterview with Dr Martin Sabbatella,Mayor of Morón, Buenos Aires Dr Martin Sabbatella, Mayor of Morón, Buenos AiresThe City of Morón is part of the Global and international trends Internal trendsMetropolitan Area of Buenos The principal external factors that have From a social point of view, the situationAires – an urban spread of 24 influenced the development of Morón in is worrying. A large part of Morón’scommunes plus the Federal the past decade can be summarised as: population live in poverty and a fifth of the workers are unemployed.Capital of the Argentine • The international insertion of the FederalRepublic, inhabited by Government with other countries in the From an economic point of view, theapproximately 13 million region, especially the MERCOSUR; impact on the industrial base of the Citypeople. of Morón during the 1990s generated by • The renegotiation of external debt with foreign competition caused the city to private creditors, as a result of default, transform from an industrial base to the and the refinancing of debt payments most important commercial center of the with multilateral credit organisations Western region of the metropolitan area of which delayed the disbursement of new Buenos Aires. funds; From an organisational point of view, the • The impact of the Argentine economic administration faces an important crisis on the levels of poverty and challenge to achieve a labour identity and unemployment which are at the same to improve communications among all the levels as the country average, even levels of the commune’s administration. though the population of the city has a higher social and economic level than The inadequacy of the drainage (58% of the country average; and the territory lacks drains and 28% lacks drinking water) and street and road • The upturn of the economy that infrastructure (10% of the territory lacks occurred in recent years after departing paved streets) is a matter of permanent from the monetary convertibility with the concern, but we are on the road to an corresponding devaluation of the peso imminent solution. with respect to the US dollar.100 Cities in focus
  • 102. Cities of the future - global competition, local leadershipTo overcome these needs, the residents of From a regional point of view it will be Priorities for the next decadeMorón have supported a process of important that the changes generated in The city has developed an action plan fortransformation that grants them greater Morón are supplemented by urban and the next decade, concentrating its effortsparticipation in public matters and have social changes in the environment so that on:been and are amenable to the idea of they do not constitute barriers that smotherbuilding a city of the future as an urgent, our possibilities of economic, social and • Widening the coverage of the networkscomprehensive task that depends on all. cultural growth. Today these issues do not of basic infrastructure of drinking water, appear problematic, but are approached sewers and paving;All these factors converge on the need for with much interest and responsibility by thean extensive political and institutional city through permanent exchange with • Doubling the number of public greenreform that guarantees total transparency, spaces currently existing; other municipalities as well as theboth for the residents of Morón and for Provincial and Federal Governments. • Increasing home ownership bythose that do business in the city. They developing mechanisms for financingneed clear and honest rules of the game The administration has been modifying the home ownership and eliminating shantyto carry out their projects. commitment of public employees to their towns or emergency neighbourhoods; work through a better system of salaries,External and internal challenges improvements in labour conditions and the • Generating urban developments example of the community leaders. (shopping complexes and housing) forIn the coming ten years the most delicate sectors with higher purchasing power inissues will mainly involve security, quality The Mayor has dedicated the first stageseducation, work, the environment, the role the central area of Morón, extending of his administration to work intensely inof women, opportunities for the young urbanisation of the central area east and the fight against corruption embedded inand care for the elderly. the local government and with the west of downtown; generation of mechanisms to promote the • Improving Healthcare by widening theTo face these challenges, the City of participation of the civil community in the Single Municipal Health System thatMorón places great emphasis on values design and implementation of government encompasses the services of thesuch as social integration, transparency in action. Central Hospital of the City (Hospitalthe handling of public resources,promotion of citizen participation, the This has allowed Morón to be identified by Ostaciana B. De Lavignolle) and of 15search for institutional quality, efficiency in its neighbours as well as by the press and health centers in the neighborhoods andperformance and equitable advancement. by local, national and international leaders increase the coverage of the health as a place where transparency and civil centers, increasing them to 25 centers;The administration of the commune participation are effective and efficient forinterprets the expression “development” • Applying policies to improve the the resolution of problems of thein a wide sense, encompassing the environment; commune. This issue constitutes aneconomic aspect as well as health,integration of women and young people important starting point for the city that • Working with national railway they want to create. companies to improve their installationsand the integration of all social levels in in the commune, especially the railwaythe activities of the municipality. In recent years the local government has stations; been firmly involved in economicIn line with this conceptual foundation, the development; and interchange with the • Starting up new branches within thecity defines its development depending on economic and social players is intense and commune to enhance internaljoint actions between the public and private productive. The latter have warmly communications and with othersectors, between the state and the economic received the proposals of the Strategic communes; andplayers that can and wish to invest. Development Plan submitted in mid-May 2005 by the community government and in • Strengthening and deepening theConsequences for the city general, nearly all sectors of Morón are process of municipal decentralisationMorón is defining its identity as a city for promoting participation in social and urban that began in 2003 in search ofthe coming decades, and in doing so, is projects. improving the democratic participationcarrying out activities to define the of the citizens of Morón through theattributes of its civil society, the design of Additionally, to attract investments, the implementation during 2006 and 2007its government and the mechanisms of community government is using of units of community management,participation/ communication between the management tools to support where citizens can exercise theircommune and the citizens that inhabit it; development, such as the allocation of political rights in a more direct manner.paying attention to their needs, their land uses or tax incentives, which promoterights, their interests and their integration. investment and generate employment.Cities in focus 101
  • 103. Dar-es-SalaamInterview with Mr Kleist Sykes,Mayor of Dar-es-Salaam The City of Dar-Es-Salaam, TanzaniaFrom a small town of 3000 We talked to Kleist Sykes, Dar- Global and international trendsinhabitants in the 1860’s, Dar- es-Salaam’s energetic mayor The progressive globalisation of worldes-Salaam has grown to be the and his City Planner Raphael trade should work in Dar-es-Salaam’slargest city in Tanzania and the Ndunguru, to ask them how favour over the next 10 years. Dar has the biggest port in East Africa handling transitcountry’s industrial and they planned to address this goods bound for its landlockedcommercial heart with an challenge and realise their neighbours in Central Africa, as well as itsestimated population of 3.2 vision for the city in 2015. own agricultural and mineral exports. Themillion, growing at the rate of port serves the Middle East and faces4.2% per year. Struggling with South and South East Asia across thediminishing contributions from Indian Ocean, which makes it a natural entry point to Africa for these potentialcentral government revenues, powerhouses of manufacturing. Roadsthe city nonetheless manages within Tanzania are generally good andto provide basic services for innovative financing is revitalising themost of its citizens. The railway system.accelerating rate of migration In the run-up to 2015, Dar-es-Salaaminto the city from rural areas should benefit from the new scaling up ofwill however, put severe strains international donor funding to the Africanon the infrastructure and the continent, as advocated by the UN-social fabric of the city over the sponsored Millennium project and thenext 10 years. Commission for Africa and agreed by the G8 Summit in July 2005.102 Cities in focus
  • 104. Cities of the future - global competition, local leadershipNew paradigms in global tourism are Three of the paramount challenges for Dar- The City Council is taking a consultativemaking East Africa a magnet for tourists es-Salaam over the next ten years all derive approach to the problems of unplannedfrom all over the world, including from the projected expansion of the city: housing and slum clearance. While somecountries such as China and India. Dar- public transport, non-planned housing and of the international donors prefer thees-Salaam must meet the challenge of solid waste management. The 100,000 cars option of upgrading slum dwellings, thetransforming itself from a staging post for in the city today, which already cause Mayor and Council believe that thethe fabulous game parks and Zanzibar, to significant traffic jams, could rise to 500,000 construction of low-cost housing usinga tourist destination in its own right. in ten years. Unless properly managed, this private sector funds, offers a more volume of private cars will seriously impede sustainable solution and allows for theInternal trends the ability of the taxi-vans (daladalas) and installation and monitoring of the buses to ferry people to and from work. infrastructure that will reduceThe 150,000 people swelling Dar-es- Today around 70% of Dar’s inhabitants live environmental and health hazards in theSalaam’s population every year is the one in unplanned housing, much of it in poor future. In the quest for appropriatepervasive internal trend that conditions all condition and nearly all of it, unplumbed for environmental management systems, thethe others. Most of the new urban solid waste, which creates serious health Council is working closely with UN Habitatmigrants come from the rural areas of the and environmental problems. and the Safer Cities Programme, thecountry and are often ill equipped to deal Canadian-led, global network of citywith the new rhythms of urban life. As Meeting the challenges managers. Brokering public-privatethey also lack the skills to join the formal partnerships around solid and liquid wasteeconomy, the informal sector is Mayor Sykes and Raphael Ndunguru disposal will remain a priority for theballooning, which deprives the City share a strong vision for their city which Council in the medium term.Council of financial resources to provide includes promoting transparency, integritybasic education and healthcare services. and inclusiveness in city governance, raising the physical standard of living for Priorities for the next decadeThe recent spate of privatisations of citizens and making Dar-es-Salaam anpublic utilities, notably electric power and • Aggregate the powers of the three attractive and pleasant place in which towater, are too recent to be rated municipal councils and the City Council live and spend leisure time.unqualified successes, but all the signs for more coherent, transparent andare that they will eventually benefit the To try and lessen its dependence on decisive governance;less privileged inhabitants of Dar and diminishing central government resources, • Manage rural-urban migration throughallow the City Council to focus on other the government, along with a pool of an inclusive system of governance andpressing issues. development partners, has set up the Local partnerships with NGOs, community- Government Reform Project (LGRP). The based organisations and the privateExternal and internal challenges project is searching for innovative ways of financing essential social services. To sector;Central Government and Local Authorities address the issue of the diffusion of • Mobilise the private sector to removewill need to recognise that rural-urban management and decision making across and reconstruct slums and install wastemigration is a national issue and work the three municipalities, the LGRP is disposal systems; andclosely together to address the problems looking into ways of integrating some ofin a holistic manner. Recent belt- • Bring the Dar-es-Salaam Rapid their functions and making localtightening by the central government has Transport System (DART) to a government more inclusive by activelycontributed to the shrinking of the City successful conclusion and undertake involving women’s organisations, youth andCouncil’s resources. other civil society organisations. related work to make life better for bothAdministratively, Dar-es-Salaam was quite inhabitants and tourists in the city For public transport, Mayor Sykes hasrecently split into three municipalities, centre. come up with a masterful scheme.each with its own municipal council, and Borrowing from the experience of his friend Mayor Sykes and the City Council willcoordinated by the City Council led by the Enrique Penalosa, ex-Mayor of Bogota in continue to consult with their peers inMayor. This arrangement may not reflect Colombia, and working with minimal funds other cities around the world to find thethe current needs of the city as a whole from the World Bank, Mayor Sykes plans to smartest and most appropriate solutionsand certainly slows down the decision- install bus trains in the city. These will be to assure Dar’s quality of life for the nextmaking process in the areas of resource cheap enough to discourage cars from the 10 years.allocation. centre of town. The resulting decongestion of the city centre will allow other plans for the enhancement of city life, to go forward.Cities in focus 103
  • 105. Ekurhuleni Metropolitan MunicipalityInterview with Mr Duma Nkosi,Executive Mayor of Ekurhuleni Metropolitan Municipality Mr Duma Nkosi, Executive Mayor, Ekurhuleni Metropolitan Municipality Ekurhuleni Metropolitan Municipality The Gilooly’s interchangeThe latest city population figure Global and international trends Internal trendsstands at 2.5 million people The issue of well-being linked to poverty Urban renewal is a key internal trend thatinhabiting an area of 1889 square is one we share with our neighbouring has to ensure that a world-classkilometres, 23% of the province of countries. An integrated response to metropolitan municipality within theGauteng’s gross geographic HIV/AIDS and the successful control of African context is built. This city will have the pandemic in other African countries to integrate communities and break racialproduct is generated in Ekurhuleni. will impact on the city in the future. The and ethnic barriers. Tackling poverty head successful implementation of an on through development in line with theThe Executive Mayor recently immunisation programme for children targets and programmes emanating fromushered in what he termed “the year against diseases such as malaria and the World Summit on Sustainableof popular mobilisation to advance polio is critical to the wellbeing of the Development is also a major trend.the vision of the Freedom Charter”. continent. In addition, the manner inHe stated; “It was 50 years ago that which opportunistic infections from External challengesSouth Africans with passion to build HIV/AIDS are treated will also pose major challenges to the city over the next Ekurhuleni has a number of key strengths.and develop our country come decade. It has well-established transport and othertogether to adopt the Freedom infrastructure, a strong manufacturingCharter when they met in Kliptown Socio-economic issues relate to crime base in a period when this sector isin 1955”. and violence. Drug trafficking is a major expanding reasonably vigorously in South crime issue. Africa (despite current declines associatedThe mayor said the task now was with the strong rand), and an outstanding South Africa is no longer isolated, but is ato lead the people to achieve the location in the country’s economic major player in the global economy.goals of the Charter in the interests heartland with a key airport linking Ekurhuleni needs to understand theof people of all races, colours, Southern Africa to the rest of the world. environment and respond accordingly.genders, ages and places.Ekurhuleni means place of peace.104 Cities in focus
  • 106. Cities of the future - global competition, local leadershipBut there are drawbacks. Its location near Consequences for the city Priorities for the next decadeJohannesburg results in many activitiesthat would normally take root in a Urban decay and degeneration of the city is Greater co-operation between Tshwane,metropolitan area the size of Ekurhuleni a major challenge. Intensive research has Johannesburg and Ekurhuleni Metros isbeing drawn across the boundary into been completed in the Ekurhuleni region to needed. Similar challenges are experiencedJohannesburg or Tshwane. A number of identify areas requiring particular attention. and lessons may be learnt from thesethe industrial areas, such as the Alrode- This has resulted in a deliberate effort to metros in terms of tried and tested systems,Wadeville corridor, contain a relatively uplift and upgrade those needy areas programmes and procedures. Ring-fencinghigh proportion of older and declining through projects such as, inter alia, the electricity and the establishment of theindustries. Much of the infrastructure is Inner City Housing Project in Germiston and Regional Electricity Distributor will impact onold and decaying. The disparate planning other similar initiatives in the hubs of municipalities significantly. Effort must beof the past has not supported the Ekurhuleni’s various urban areas. made to ensure that this initiative works.emergence of agglomeration economies, Increased poverty and underdevelopment The responsibility of Ekurhuleni Metro is towith highways serving to move traffic pose further challenges. Various projects create the space for innovation and co-across the area rather than within it. There have been initiated to address poverty and ordinate initiatives relating to economicis an extensive rail network, yet it is access for all to basic services in the region.relatively under utilised. growth and development of the city. Initiatives such as agri-farms and urban Ekurhuleni Metro needs to look at innovativeThere are three key economic challenges: agriculture are spearheading efforts to put and creative ways of promoting job creation. an end to poverty, unemployment and• Ensure that the competitiveness of the malnutrition in all areas within Ekurhuleni. Trade-offs with business needs to be looked lead sectors in the economy is at. protected and promoted, and new An increase in the mortality rate due to businesses are attracted HIV/AIDS and its consequences is Implementation of service delivery in probably one of the most severe accordance with the principles of Batho• Seek new foci for economic growth, Pele (consultation, service standards, challenges facing the city. The particularly for SMEs, which are Municipality has identified the scourge of access, redress, value for money, etc) to be employment generating while expanding HIV/AIDS as a primary business institutionalised. A call centre for Ekurhuleni opportunities and overall availability of imperative and has created an HIV/AIDS is to be set up and the creation of customer resources Council as a means to manage the fight care centres are all initiatives to ensure the• Enhance the livelihoods and facilitate against this disease. The HIV/AIDS Council enhancement of quality of service delivery. the subsistence economy of the large is tasked with devising strategies and proportion of the population who are programmes to fight the disease at the One of the major institutional challenges unlikely to be drawn into the more workplace and within the community. faced by Ekurhuleni Metro is the formal economy, or the SMEs. implementation of the Municipal Finance The Financial sustainability of the Metro Management Act. This Act placesFrom a social perspective, the most has weakened and as result innovative financial management responsibilities onsignificant challenges are the high HIV/AIDS means to deal with this have been each and every senior manager within theinfection rates in the area, the high crime developed. Initiatives include thelevels, the high levels of racially aligned implementation of a Revenue organisation. Heads of Department mustinequality, and the social instability Enhancement and Cost Reduction ensure that they manage their financialassociated with the rapid urbanisation and Project, Restructuring of Municipal Bus resources in terms of the Act.poverty talking place in the area. Operations, Programme to address unaccounted for water, compilation ofInternal challenges income differential plan, customer audit for water and electricity services.The major challenge is to create a singleidentity in the context of the collection ofa number of different towns. Diversitymanagement, changing service needs,system compatibility, culture and scale ofservices pose institutional challenges tothe municipality.At the same time, there are severefinancial constraints.Cities in focus 105
  • 107. eThekwini Municipality (City of Durban)Interview with Dr Michael SutcliffeCity Manager, eThekwini Municipality Dr Michael Sutcliffe, City Manager, eThekwini Municipality eThekwini Municipality, South AfricaThe city of Durban, situated The municipal government handles Global and international trendsalongside the Indian Ocean Rim on a budget of R12 billion annually, In the past decade, Durban has emerged aseast coast of South Africa is the and delivers service to diverse one of the fastest growing cities within thegateway to Africa. It is an communities and businesses. Like Southern African Development Communityeconomically vibrant, politically its domestic sister cities, eThekwini (SADC) region and currently enjoys sister-stable and culturally diverse African set out on a challenging new city status with several big cities around thecity with a population of more than journey after the political and world.3M people. In 1996, the new constitutional changes in the 1990s. Competition between international cities isdemocratically elected political The city manager, Michael Sutcliffe, increasing globally and Durban is gearingleadership, reinstated the city’s explains how Durban hopes to up to meet the challenges of operating as ahistorical name, eThekwini, an achieve its post-apartheid global city through its various agencies, andisiZulu meaning for “city by the challenges, targets and socio- in particular its international affairs officewater”. economic benchmark. based at the city hall. On the horizon, the construction, in a fewDurban is a major transit point for years’ time, of a multi-billion rand, world-international imports and exports, class airport, the King Shaka Internationaloperating one of the busiest ports Airport, named in memory of the legendaryon the continent and strengthened Zulu warrior-king, will present the city withby excellent rail and road networks the best opportunities and potential tointo the Gauteng, South Africa’s transform into a leading global player in theeconomic heartland. region.106 Cities in focus
  • 108. Cities of the future - global competition, local leadershipInternationally, the buzzword is to create The exotic, countryside location of the new Priorities for the city in the nextsmart cities with global linkages and sound Sibaya Casino and Resort, the Suncoast decadesister-city exchanges and goodwill. In South Casino, a redeveloped Point Waterfront, Durban’s socio-economic thrust and energyAfrica, this means that we must clearly uShaka Marine World and large shopping as a forward-looking and progressive citydefine the priorities for growth and develop- malls, and many other places of interests, revolves around its 2020 Vision,ment while ensuring that we address poverty certainly makes Durban an attractive conceptualised under the politicaland the provision of basic services that were stopover for business and pleasure. leadership of the executive mayor, Mrlargely denied to previously disadvantaged Thembinkosi Obed Mlaba and a 200-African people in the apartheid era. Internal Trends member council.These twinned objectives are not mutually In a transformational and developmental mode, the new role of municipalities must The visioning statement, adopted within theexclusive: instead of seeing poverty as a ensure that we structure the growth path for developmental context, and against theproblem, we should approach it as a the future. What we do today, will define backdrop of the historical backlogs createdchallenge to bring those previously whether or not our children will realise their by the apartheid legacy, is aimed at fast-excluded from the mainstream of our dreams, aspirations and hopes in a non- tracking Durban into a truly African city thatsociety, more directly into the growth and racial, non-sexist democracy. will provide:development path.Like other sister cities in South Africa, we Municipal governments are but a part of the • adequate safety and security for its broader picture of local governance. Our citizens and local and internationalare faced with huge developmental issues, success will depend on the degree to which tourists and visitors;often referred to as "pockets of wealth in asea of poverty" and we are committed to we can build public-private sector • create employment for majority of themaking our cities better places for all who partnerships between business, labour and economically marginalized black peoplelive in them. civil society. • alleviate rampant poverty;Within our spirit and social slogan of Batho Since our dramatic gallop from an apartheid- • provide housing solutions; and based society to democracy, the mostPele (Putting People First), our main • Promote an integrated approach to thechallenge is to define a specific important and wonderfully exciting change is scourge of the HIV-AIDS pandemic, anddevelopmental path and then stick to it. that the city now belongs to all its residents other diseases such as tuberculosis andThe biggest problem we face today is that and the people of South Africa as a whole. malaria.we react to any and every problem that As a municipal entity, we encourage our The key priorities for Durban is to realise itsconfronts us. employees to pledge themselves to: 2020 vision, prepare for the 2010 FIFA believing in the organisational culture and Soccer World Cup and tackle crime and theAgainst this landscape, we are ethos of eThekwini, while remaining rampant spread of HIV-Aids, while dealingimplementng a broad-brush approach to committed to serving the people of the with domestic backlogs such as housing,attract more and more tourists and boost municipality and ensuring they work to water and sanitation, poverty and diseasesinvestor confidence in conjunction with our build a better life for all on the principles of among the poorest of the poor in the blackdynamic, internationally linked agencies, good governance and service excellence. population.Durban Africa and the Durban InvestmentPromotional Agency. The challenge is to Urban renewal and the retention of thebuild on the well established popularity of External challenges established and formal business sector,the City with domestic tourists and attract Durban faces the challenge of combating operating alongside the burgeoninggreater numbers of international travellers crime and international and continental informal sector or “second economy” inand businesses. drug rings operating the city, while adopting harmony within the city precincts, are some a more humane approach to the flood of of our key challenges in the overall thrust ofA big plus to our international portfolio is illegal immigrants and informal settlements making Durban a safer city while providingour world-class conferencing facility, the within the CBD. the best economic, social and employmentInternational Convention Centre, inspired by Climate changes is a priority on the agenda opportunities for all our stakeholders.South Africa’s readmission to the world andsupported by the eThekwini Municipality, and the city is collaborating with Other social challenges include integratingand the venue for the Commonwealth international agencies in terms of this and communities, breaking down racial andHeads of Government, World Racism the effects of greenhouse gas emissions ethnic barriers and promoting a rainbowismConference and several other high-profile while looking at strategies to reduce the “One City, Many Cultures” conferences and banqueting number of private vehicles heading for thehighlights. city daily.Cities in focus 107
  • 109. FrankfurtInterview with Petra Roth,Mayor of Frankfurt Petra Roth, Mayor of Frankfurt View of Frankfurt skylineFrankfurt is the most Global and international trends National and local trendsinternational city in Germany Globalisation progresses and increases Based on its natural location advantages,standing out in terms of its the pressure on modernisation. Change Frankfurt expects to be able to derivecosmopolitan nature, tolerance and adjustment have become normality. above-average benefits from the growing The importance of knowledge as a attractiveness of Germany for foreignand high quality of life. Its production factor is growing further. direct investment. As an importantspecific location advantages Converting technical progress and know- exhibition centre Frankfurt hasmake it very attractive to how into marketable products and traditionally participated intensely inforeign investors. The current services and into cost-saving procedures international trade. Through theexpansion of the airport will will become the crucial factors in the expansion of the airport, the gatewaysecure its position as the value added process. function of the Frankfurt Rhein-Main area is gaining in importance Europe-wide ingateway to the Rhein-Main Big cities are facing growing respect of growth, jobs and thearea and its importance for the requirements in order to stay attractive as strengthening of the diverse economicEuropean market. Frankfurt a place to live and work while securing structure. The presence of the Stockoffers a combination of social cohesion. Making available Exchange and the European Central adequate budgets for economic andattractive economic location, Bank additionally enhance Frankfurts social infrastructure as well as for reputation as an international financialcultural variety and well- measures to promote quality of life puts centre.developed social cohesion. great strain on the financial power of cities as revenues often stagnate or even In addition to this, Frankfurt has decline. increasingly distinguished itself as a scientific centre. Enormous investments into the development of the university and technical colleges made by the government of Hesse have enabled a108 Cities in focus
  • 110. Cities of the future - global competition, local leadershipleap in the quality of the scientific- Consequences for the citytechnological infrastructure. The ongoing As the most international German city,improvement in the quality of job offers Frankfurt has for a long time distinguishedincreases the attractiveness of the itself through its cosmopolitanism andlocation for enterprises operating in the tolerance. The integration of its foreignscience-oriented growth industries. fellow citizens is an important task whichThrough its new innovation centre, the city has tackled proactively, forFrankfurt enjoys a worldwide reputation in example through its department ofbiotechnology; by focusing on specific multicultural affairs.areas of the pharmaceutical industry,Frankfurt is on the way to re-obtaining its Forces of economic growth have to beformer position in the production of identified and mobilised to support thepharmaceuticals. diversity of the economic structure and to improve the earnings situation. One of theThe fostering of the relationship between identified measures is the reduction of thethe city and its citizens in the areas of trade tax, subject to the expectation thatbusiness, culture and social issues has a the losses in income will be more thanlongstanding tradition in Frankfurt and will compensated by the quantity effect.certainly be continued. More and more Another measure is the reorganisation ofenterprises are aware that social cohesion administration. Furthermore, initiativesin a city is an important quality. Frankfurts such as the regional reform to strengthensponsorships and foundations are of the whole Rhein-Main area, and a jointparticular significance. local marketing and promotion of the cultural environment have to beExternal challenges developed consistently.In times of tight finances the developmentof cities cannot be seen in isolation from Priorities in the next decadethe general economic development of the The central social question of the nextcountry. Delays to the modernisation of decade is seen in the fight againstGermanys economy and the subsequent unemployment, since it is the heaviestlosses in growth would confront Frankfurt burden on a citys social climate.with considerable problems as well. New Increased efforts to re-integrateburdens on municipalities require an unemployed and particularly long-timeappropriate financial support by the unemployed persons are a focus ofFederal Government and the Länder. municipal social policy. Job promotion through the creation of favourable localInternal challenges conditions is at the forefront.The aim is to further strengthen Frankfurt Infrastructure policy and retaining theas the centre of one of the most dynamic nearly 45,0000 enterprises located in theregions in Europe and as the motor for the region, as well as the settling of new firmsdevelopment of the Frankfurt Rhein-Main and specific structural developmentarea in economic, cultural and social projects are intended to strengthen therespects. Frankfurt shall be associated economic power of the city. Besides this,with the attributes of a city of science and the engagement of citizens andeducation, innovative industries, mobility enterprises for the benefit of commonand logistics as well as attractive cultural welfare is to be enhanced further.and leisure-time facilities and lowunemployment.In times of financial shortage the culturaland social facilities and the preservationof the high quality of life in the cityrequires engagement by both citizens andenterprises.Cities in focus 109
  • 111. GothenburgInterview with Catarina Dahlöf,Acting Chief Executive Officer, City of Gothenburg Catarina Dahlöf, Acting Chief Executive Officer (Photo: Linus Meyer/ kamerareportage) The City of Gothenburg, SwedenThe Port of Gothenburg is Global and international trends Internal trendssituated on the west coast of Regional enlargement will be of vital Regional enlargement is also a local trend.Sweden, and is the leading port importance to Gothenburg. Attracting Gothenburg functions as a growth enginein Scandinavia. In 2004, further investment and ensuring that for the rest of the communities in theGothenburg was voted Growth existing businesses, particularly service region. Future investment in infrastructure sector businesses stay in the area will be will open up the city’s labour market toMunicipality of the year in essential to maintain economic growth in the whole region. We recognise the needSweden. The city had gone the local economy. to work with neighbouring municipalitiesfrom being an industrial city in to develop a mutual understanding and A particular priority must be to developcrisis to an engine for growth, encourage the exchange of ideas – we high technology and quality services. This cannot afford to act in isolation. Anotherboth regionally and nationally. is an arena in which the City of major issue for the city is the developmentReasons for its success include Gothenburg can both compete and of the harbour’s logistics and securityclose cooperation with industry collaborate. The global issues of the facilities. The forecasted demographicand commerce and other environment and security and the changes for in the next 10 to 20 years willmunicipalities; efforts to development of the experience industry influence all sectors of society. We areenhance its attraction through a are other key trends. Globally, there is a seeing society accelerate, previously trend for the shift of competence and the separate institutions are merging. Citizens,range of cultural services and development of technology to the staff and stakeholders have increasinglyintegration measures and new southern hemisphere’s growing high expectations of their public servicesthinking behind the provision economies, which have in a surprisingly and we must respond to provide equal,and delivery of municipal short passage of time been able to rapid and efficient access to establish organisations delivering high quality services and products.110 Cities in focus
  • 112. Cities of the future - global competition, local leadershipWhen it comes to leadership, it is We will concentrate on alternative Priorities in the next decadefundamentally important to establish a investments in increased collaboration People in Gothenburg have the right mixcommon picture and develop an between different levels of society – trade of conditions to live a good life. Our visionunderstanding of the system where the and industry and non-profit organisations. is a city of solidarity and sustainabilityvision – the ‘thought model’ – structure We need to examine rules and regulations where everybody is needed and hasand the behaviour of the organisation that prevent flexibility and look for opportunities to develop their lives. In ourcommunicate. We have to create alternative sources of finance. We need to city of the future we will turn segregationleadership that can translate pictures in move people from dependence on social into integration.the organisation into practical intelligence. welfare to employment.We must develop dialogue in all segments • City of solidarity – a city where alland develop new meeting places and Municipalities will merge for increased citizens feel that they have an importantarenas with different people from different support capacity. This raises the question about the most effective unit for role and that they are needed. A citybackgrounds. Common values provide an administration and how to develop the with a common sense of responsibility,important platform for creating this government’s role for maximum engagement and belief in the future;leadership. democratic impact. • Sustainable city – a city that bases itsExternal challenges development on maintaining and Consequences for the cityAn external challenge from a growth developing the good city, its characterperspective is to achieve a long-term New channels for communication and and identity without impedingsustainable balance in all parts of society. dialogue are needed in order to engage development for future generations; andThe city has to manage the demographic with all our stakeholders.shift that will influence all social sectors Transparency is essential for the • Integration – all citizens of the city ofand the life phases of all citizens. The city Gothenburg are participating in building development of the democratic process.needs to retain and develop its our society. Everyone in our city has a In order to share a common culture – theattractiveness as a labour market and a responsibility for democracy and to vision must be more global andcity for events and commerce. The brand respect human rights. Through multidimensional to reflect currentof Gothenburg is the city of events. narrowing the chasms and resisting realities.This also means investment in the segregation we can shorten the way todevelopment of clusters in order to We need to counteract segregation of integration.develop experienced industry, trade and people from other countries and culturesshipping and logistics and safety. This that come to, or are already established, Today, the city of Gothenburg has aninvestment in the service sector is in the city. We need to develop the right economy in balance. But the challenges ofexpected to have a positive impact on the conditions for college and university big demographical changes will have to belabour market, not only in volume but also students, and build technical clusters to managed over the next 10 years. Todayin terms of attracting young people. support the development of the harbour. there is the space to try different pilot We also need to focus on: city planning, models to gain experience, createCommunication between politicians and developing the city centre with functioning alternatives and stand steady in thecitizens will develop new channels, e.g. local markets and excellent presence of change. We cannot stand stillthrough IT. The 24-hour society will create communications within the city as well as but instead we need to make qualityother demands on content and in the region. changes, test out different ideas andaccessibility. There will be a tendency to create the right political response to theinvestigate individual questions of fact challenges that lie ahead.rather than a dialogue of ideologicalgeneral character.The city needs to develop newpartnerships and ways of collaboratingwith the police, public prosecutors andother local public sector organisation. Thispartnership approach also needs tohappen on a regional basis. We must finda balance between growth, sustainableenvironment and infrastructure.Cities in focus 111
  • 113. The HagueInterview with Mr David Jongen,City Manager of the City of The Hague Mr David Jongen City Manager of the City of The Hague, The Netherlands Peace Palace, The HagueTogether with Vienna and Global and international trends Energy supply and climate change areGeneva, The Hague is known issues that should not be discounted Global economic development is a key either. The production of sustainablefor the UN-activities taking trend. Outsourcing to low-wage countries energy will be an important issue in theplace within its borders. will strongly influence the economic next few years. position of Western European cities.The Hague wants to build on These cities face considerable socio-its image of the international economic problems, and a strong Internal trendscity of justice and peace. economy is required to address them. The consequences of international There is also a major risk of a knowledge differences and terrorism strongly affectAccording to David Jongen, drain to low-wage countries and a lack in public safety and its perception by peoplecity manager of the city of The Western Europe of the innovation locally. To become a stable society, the necessary to create a high-quality integration of foreigners is necessary.Hague, innovation, integration knowledge economy. Although the influx of foreigners hasof social and economical Another important international trend is of decreased over the past few years in Theissues, citizen participation and Hague, it is still considered a priority for the course the recent accession to theexcellent public services are government. This calls for a strong European Union of a number of countries,key issues for the Hague. which will result in larger migratory flows. government. A strong economy can also Within The Netherlands the integration of help in this respect. An ageing population foreigners in society is a major issue at and the size and make-up of the working the moment. population are problems that the economy will need to deal with in the next few decades.112 Cities in focus
  • 114. Cities of the future - global competition, local leadershipExternal and internal challenges Consequences for the city • Ensuring that the City of The Hague comes to occupy a different position inThe only way to address the developments The external developments outlined above the area;described above, and to address the will impact on the:international competition between cities, is • Focusing on communities; • Development of a high-quality workforcefor the four large Dutch cities in the western with different skills. This is translated • Becoming the most customer-focusedurbanised part of the Netherlands (i.e. into recruitment and HR policy for municipality in 2006, delivered throughAmsterdam, Rotterdam, Utrecht and The current staff; one-stop shops and e-government;Hague) to work in close cooperation. Thesecities will have to develop a joint strategy, • Further participation in InAxis, a • Implementing targeted competencewhile retaining their own individual images. programme set up by the Dutch management; government to promote innovation inCooperation is also very important in the • Conducting adequate financial the larger urban centres through thegreater area around The Hague. management. Efficiency will become development of tools (such as theCooperation between local authorities in this more and more important; and innovation monitor, expert support,area has been difficult, but this is now experiments). The Hague plays a • Leadership based on accountability,changing. A joint 2020 strategy for the area pioneering role in this regard; transparency and being prepared. This strategy will initiallycover spatial planning but will be broadened • Development and implementation of ato cover social and economic issues as well. comprehensive policy. This means that municipal services will have to workThe Hague wants to build on its image of together and resolve area andan international city of justice and peace. community-specific problems. ThisThis will impact on both the quality of life certainly applies to the more physicalit offers and its international and social services; andcompetitiveness. The associated risks area physical lack of space, controllability of • The city’s financial position. This aspect,immigration from the new EU Member which is reflected in reduced taxStates and cooperation with the other revenues, fewer subsidies and alocal authorities in the area. decrease in proceeds from the sale of land, will need to be considered.Development of sufficient knowledge andinnovation in the area are preconditions inthis regard. The Netherlands is currently Priorities in the next decadelosing its position as an innovative country. To meet the challenges facing The Hague,The Westland area is a good example of it will focus on the branding of the city,developing innovation; it is situated near the execution of the joint strategy and theThe Hague and is a centre of bio- improvement of municipal organisationtechnology. In the fields of greenhouse and services. The following points inhorticulture and bio-technology, the particular will be priorities:Westland is an example to the world. • The brand “International City of JusticeOther challenges are: and Peace.” International lobbying will achieve the aim of persuading• Prevention of segregation (ethnic as well international organisations active in this as income-related); field to relocate to The Hague. It is also• Increase in the city’s customer focus. In very important that The Hague should 2006, The Hague aims to become the further develop relevant international most customer-focused city in the education; Netherlands. The development of e- government and ICT play major roles in • Fleshing out the 2020 strategy together this ambition. This has been fleshed out in with the greater The Hague area, which programmes. It is also a factor in hiring will result in large-scale urban renewal new staff; and with mixed-income and ethnically integrated communities. Public Private• Citizen involvement, immigrants as well as Partnership is a very important success natives, in the development and factor in these efforts; implementation of policies, but also in maintaining facilities in their own communities.Cities in focus 113
  • 115. JohannesburgInterview with Mr Pascal Moloi,City Manager, Johannesburg Mr Pascal Moloi, City Manager, Johannesburg The City of Johannesburg South AfricaAs the destination for the FIFA Global and international trends The emerging global city perspective asSoccer World Cup in 2010 – espoused by the Province of Gauteng and There is an increasing debate about the its municipalities, places the long termthe first time it will be staged in form that city administration will take in view of the city in a different light. ItAfrica – Johannesburg will see the future. We are witnessing the envisages greater coordination, development of more complex cityits profile raised in the next few cooperation and integration between the regions and a single-tier of metropolitanyears. The World Cup will also government, away from the district city and key stakeholders. Stakeholdersprovide the impetus to improve municipalities of the past. include other spheres of government,the city’s infrastructure and the business and communities. The perspective does not in the short termcity expects a significant boost Internal trends suggest any changes in the institutions ofto its economy. South Africa hosting the FIFA Soccer government but suggests greater impact World Cup tournament in 2010 will make of government offerings to make citiesWe spoke to Pascal Moloi, City Johannesburg a fundamentally different more globally competitive. The world cupManager of Johannesburg place. These differences are driven by offers a pilot project to foster such a significant infrastructure development in, perspective.about his hopes for the city and amongst others, the areas of roads, waterthe challenges it faces to make and electricity as a result of thethem a reality. tournament being held here. New and improved economic nodes will be created within the city, particularly around areas central to the hosting of the World Cup.114 Cities in focus
  • 116. Cities of the future - global competition, local leadershipExternal challenges Priorities in the next decadePublic safety is a major issue for The city government sees itself asJohannesburg, as is the provision of creating a role whereby rather than simplypublic transport. One other strong delivering services in the traditional way, itexternal influence is the extent to which facilitates development and economictrade and investment responsibilities are growth.arranged and devolved between national,provincial and local government. At As part of the drive towards achieving thispresent, control over trade and investment vision, the city – under the guidance ofpredominantly takes place at a national or the Mayor – has created forums forprovincial level. However, with greater different stakeholders to engage with theintegration, such responsibilities may be city. These forums include activeshared and be more influenced by plans consultation with business, labour,and strategies of the cities. It will be property owners and informal traders.possible for the city to develop an From a significantly divided city five yearsintegrated package of incentives to help ago, a 2030 vision has been drafted andcreate a city that is both more attractive translated into a five year Integratedand competitive economically. Development Plan. The IDP is reviewed annually.Internal challenges We have also undertaken a number ofThe key issues facing Johannesburg are surveys to assess citizens’ perceptions ofcrime, housing, HIV and Aids, other health the level of services we offer and theissues and unemployment. Each of these extent to which the citizens have trust inissues touches the communities that the their local government. Trust is a keygovernment serves and together they issue, and we are working on a number ofrepresent fundamental challenges for programmes to improve reliability, billingwhich the city is developing specific accuracy and are improving call centresprogrammes. and facilities for citizens to interact withGiven its importance to the country as a the city government.whole, Johannesburg’s economic These efforts, among others, have seendevelopment is seen in a different context rela-tionships with citizens improvethan is the case with smaller cities. The significantly over the last five years andcity authorities work closely and we expect them to improve still further.extensively with the ProvincialGovernment to collect information and Ultimately Sub-Saharan Africa needs aconduct surveys in order that the strong Johannesburg, and alternative andproblems we face can be better innovative thinking is required to meet theunderstood. challenge.Investors want reliability, coherentleadership and strong governance. Thecity has been working with governmentdepartments, including the Department ofTrade and Investment and the NationalTreasury, to foster the plans for the city’seconomic development.Cities in focus 115
  • 117. JundiaiInterview with Mr Ary Fossen,Mayor of the City of Jundiai Ary Fossen, Mayor of the City of Jundiai City Hall of JundiaiJundiai is located 63 kilometres At the same time, there has Global and international trendsnorth from São Paulo City in never been so much effort The contemporary changes to the worldsouth eastern Brazil. The main dedicated to improving the have been affecting the cities directly, andindustries include steel, textiles, quality of city life. New planning therefore cannot be considered adjustments to the economicalwine, hardboard, cement, and tools, urban interventions, and globalization, but instead multiplepottery. Jundai is one of the greater levels of involvement by changes with structural effects. Thecities that make up the São the citizens are all driving statistical numbers are significant: inPaulo City industrial complex, improvement. 1990, there were 2.4 billion people livingthe biggest industrial area in in urban centers in the world, in only eightSouth-America. We talked to Mayor Ary Fossen years this number has jumped to 3.2 billion. The cities of today consume three about the challenges for quarters of the world’s energy and areThe cities of the world are Jundiai and their strategies for responsible for at least three quarters ofexperiencing constant and the future. the global pollution. The city israpid change and forecasting responsible for the majority of the world’sfuture needs is becoming industrial consumption. In the developedincreasingly difficult. nations the population is declining, in contrast to the developing nations, where the population is rising. Due to this population explosion in the urban centers in the developing nations adding to the economical development and migration of population leaving the rural regions has lead these cities to a rapid expansion.116 Cities in focus
  • 118. Cities of the future - global competition, local leadershipThe majority of this population lives in External challenges Issues such as traffic congestion areirregular land occupations, where potable among the items on the current city • Population growth in the urban citieswater, water treatment, and electricity are agenda due to the high number of due to the migration of people from thenon-existent. vehicles per inhabitant and the complex interior. Increasing the risk of urban city road network. Other issues includeIf the cities represent the smallest scale quality of life degradation; transportation, law and order, wateron which the environmental challenges • Difficulty in monitoring urban land treatment services and health.are identified, it should be the first place occupation;to address these same issues. • Unsustainable exploitation of natural preservation areas;Internal trends • Law and order problems due largely toIn Brazil, even though population growth the proximity of the city of Jundiaí tois predicted to fall by 2025, the high rates two major urban centers (Campinas andof urbanization recorded: 61%, in 1975; São Paulo); and81%, in the year 2000; and estimatedgrowth of 88 - 94% in 2020 • Create public participation channels, to(Environmental Ministry, 2000) means that provide the development of a politicalour cities will face continued pressues. culture, consolidating the principles ofThis rapid urbanisation, characterised by democracy and transparency.disorganised growth, imposes severalproblems on cities, such as difficulties inplanning and in providing services to Internal challengesmeet growing demand, obsolete • Need for coordinated regional action toinfrastructure, and consequent recuperate and protect the hydrologicaldegradation of urban natural environment. reserves that are of public interest;These tendencies justify investment in • Lack of clear land occupation criteria tosustainable planning for cities. The prevent clandestine land occupation;current urban challenge is theorganisation of space, not to suppress, • The existence of considerable urbanbut to provide a dialogue channel vacant areas that contribute to highbetween different ethnic groups, social costs for maintenance;classes, styles, permitting communication • Increase in the amount of traffic in thebetween public and private spaces, and city center. The city center is no longerrevitalizing the relationship between the an end point for the traffic path but aindividual, the collective and nature. transition place; therefore there has been a tremendous increase in traffic,In terms of Jundiaí, where these noise and air pollution; andtendencies are under control, at least fornow, one important latent issue is the • Increase the development of tourism.necessity to integrate the city to theregion. This integration should take place Priorities for the next decadein the problematic management issues, The environment is by far the greatestsuch as, water treatment, health, issue of 21st century. The Agenda 21,transportation, and law and order. Cities, approved by the United Nations forwith smaller economies, and Environmental Development (Rio-92), hasconsequently less power to resolve their included clandestine land occupation asown issues, end up depending on the an environmental problem, since it isservices of neighboring cities that have directly related to natural environmentmore resources to offer, and this is the degradation and loss. Land occupationcase of Jundiai. Regional integration is management is a city of the challenges that the city ofJundiai faces today and in the future.Cities in focus 117
  • 119. KrakowInterview with Mr Tadeusz Trzmiel,Vice President of the City of Krakow, Poland Mr. Tadeusz Trzmiel Vice President of the City of Krakow, Poland City of Krakow – main market squareKrakow, a city with a Global and international trends Internal trendspopulation of 760,000 people One of the most important trends is The major internal trends effecting Krakowand 170,000 students, is the globalisation. One aspect of that process are inward investment, the increasedcentre of Polands cultural and that will affect the city of Krakow to a importance of suburbs and the great extent over the next 10 years is the improvement in infrastructure. Inwardscientific life and a dynamic expansion of the European Union. By investment is seen as a very importantcentre for the regions allowing new states in, the EU has tool, which ensures economiceconomic development. become a very powerful, widespread and development and links Krakow to theBenefiting from its location and competitive (both internally and externally) common EU and global markets. Thehistorical inheritance, Krakow organisation. The extension of the EU will importance of the suburbs has grownaims to become a Central stimulate international and interregional rapidly during the last 10-15 years mainly cooperation. It will also give a chance for due to the development of shoppingEuropean metropolis and the less developed countries to achieve the centres, leisure facilities and housing,biggest tourist city in Poland. required level of development in a much which significantly increased the number shorter period of time. Poland, and of people leaving the city to live there. AnWe talked to Tadeusz Trzmiel, Krakow in particular because of its improvement in infrastructure is a crucialthe Vice President of the city of location and attractiveness, should openly internal trend and a precondition for theKrakow, about the external and welcome the bigger market as it brings city’s prospects. more opportunities than threats.internal trends and theirinfluence on the city in the near External and internal challengesfuture as well as in the longer One of the major external challenges theterm. His priority is to promote city faces is the growing competition fromKrakow as an excellent place other European cities. The changing legal environment (mainly caused by Poland’sto invest, visit and live. accession to the European Union in May 2004) is also an important external trend.118 Cities in focus
  • 120. Cities of the future - global competition, local leadershipA major internal challenge the city faces is culture, some of Krakow’s most importantthe lack of updated special development strengths are: a high level of education atplans. In some city districts this the universities, highly qualified peoplerepresents a real barrier to growth and and the high credit rating of the citydevelopment. Other challenges include (BBB+) which enables access to domesticineffective co-operation between the and international financial markets. Theeducation system and business and the strengths should continue to beslow transfer of technologies. There are developed to the benefit of the city and itsalso insufficient attractive employment citizens.opportunities for young people. This has Although in Krakow there is a relativelyresulted in the migration of a number of low level of unemployment, there is still askilled and talented young people to lack of attractive employment offers forWarsaw or other European Union cities. young people. Therefore Krakow willAnother important internal challenge is the emphasise bringing in new investmentpoor quality of housing estates built in the and consequently creating new, attractive1960s and 1970s. jobs.Consequences for the city Priorities for the next decadeThe city of Krakow needs to work out along-term programme for sustainable and As specified in the updated strategy forbalanced growth. Krakow is updating its the city in the next 10 years the prioritiesvision and strategy. of Krakow will include the following tasks and projects:The vision for Krakow for the next 10years is as follows: "Krakow, a city • Promotion of Krakow as the biggestencouraging civic pride, guaranteeing its tourist centre in Poland: Krakow willinhabitants a high standard of living and cooperate with local and foreigndemonstrating sustainable development - advertising agencies and media housesa European metropolis and competitive to effectively promote the city. Thesehub of a modern economy based on activities will encouragescientific and cultural opportunity" tourists to come to Krakow and to extend the time they spend here;The vision has been developed as a resultof a diagnosis of the current situation in • Development of stronger relationshipsthe city and an analysis of its strengths, between the city authorities and theweaknesses, threats and opportunities. local community;We have also consulted widely with arange of organizations and of course • Addressing key social issues: buildingcitizens to develop this vision. Local the feeling of safety among citizenspoliticians, staff and representatives from through limiting crime, supporting localthe business community were invited to entrepreneurs in investing processes,update the Strategy of Krakow, providing and improving public transport; andexpertise and input on the issues that • Enhanced cooperation between centralmatter most to them. government and local authorities inIn view of the increasing global three main areas: infrastructure, culturecompetition between regions and cities, and environmental protection toKrakow needs to promote itself more maximise the benefits available fromeffectively. The intention is to create a accession to the European Union.modern brand for Krakow that will beassociated with a good place forinvestment, visiting and living. Apart frombeing a city of national inheritance andCities in focus 119
  • 121. LiègeInterview with Mr Jean-Christophe Peterkenne,Head of Strategy, City of Liège The City of Liège, BelgiumLiége is the chief town of the In a region in the process of Global and international trendsprovince of Liége, with more complete renewal, Liège has After more than 30 years of major changethan 1 million inhabitants. Liège unveiled a city project for 2003- in the industrial landscape, Belgianis also the centre of substantial 2010 and its vision for the institutions and the European environment, the city of Liége faces twosocial, economic and academic province for 2020. We main challenges: how to transform itsactivities. Nearly 60% of the interviewed Mr Jean- political ideals into practical actions toEuropean Union’s purchasing Christophe Peterkenne, Head benefit its citizens; and how to promotepower is concentrated in a of Strategy, City of Liège, on the city in an increasingly internationalradius of 500 kilometres. This the major challenges and environment.radius, known as the Euregio opportunities this historical city These changes also bring a number ofMeuse-Rhin, includes the faces and how it is responding opportunities through, among others: theprovince of Liège, the to them. slow but inescapable process of re-provinces of Limburg in urbanisation; clustering with theBelgium and in the neighbouring cities beyond Belgium’s borders; the growth of a new economicNetherlands, and Aachen in sector; and the availability of new efficientGermany, and shows the infrastructures to attract entrepreneurs. Toimportance of this European take advantage of these opportunities, theregion. city will need to reposition itself relative to its bordering regions, while using the budget and resources of a middle-class city.120 Cities in focus
  • 122. Cities of the future - global competition, local leadershipInternal trends Consequences for the city All these activities require stringentIn view of these challenges, the city drew supervision, a new type of collaboration In this difficult environment the city hasup a strategic plan to be achieved by between the plan’s architects, and a lot of taken a pro-active stand. By drawing on2010. The plan revolves around 10 major creativity and entrepreneurial spirit. its strengths and support from variousthemes and 16 clear objectives, to be academic institutions through which newachieved under various action plans. The economic activities have been derived, it Priorities for the next decadearchitects of the project and the city’s In the next decade, and probably beyond, has taken full advantage of opportunitiesofficials worked together to come up with in the logistics sector and successfully the city will continue to work on thea series of key words that the plan promoted the city’s vibrant culture, which following themes:encapsulated: cleanliness, security,mobility, dynamism, teaching, culture and is rooted in the region’s idyllic landscape. • General modernisation of its operations,tourism, solidarity and tolerance, including ensuring professionalism Some new infrastructure has been built.internationalisation, and importantly, among its staff; This includes new entertainment centres,quality public services. The latestdevelopment is an essential a new TGV station will be fully operational • Improvement of the quality of services by 2007, an upgraded airport and a real and the establishment of newrearrangement of the city’s services,which involves the development of a logistics centre. The city’s academic infrastructure;quality culture, the modernisation of institutions have also merged to exploit • Alignment of the city’s actions andfunctioning processes and the fully economies of scale. The city’s plans with the political outlook of itsdecentralisation of some services. services are continually improved and citizens; modernised, with an emphasis on securityInternal and external challenges and cleanliness. • Finalisation, acceleration and actual operation of big infrastructure works,In this changing environment, the city The city’s citizens are being mobilised as which will inject vitality into the city,needs to modernise its services, well. Their awareness of the importance of boost its attractiveness, and bring itparticularly as more than one-third of its the financial institutions has increased and closer to the bordering regions andstate employees are due to retire soon. A they have been supportive of furthergroup of state directors, led by the even its more distant neighbouring initiatives such as Liège 2020 or thesecretary-general, are in charge of the European countries; Euregio. A master plan for economiccity’s principal functions and are development was drawn up some years • Search for positive cooperation on thespearheading this transformation. ago and has gained widespread ‘Big Liège’ development, with theDepartments are being re-grouped by acceptance and is picking up speed. Walloon region which will beservices. We are paying particular a major source of finance, and theattention to the valuations involved and cross-bordering territories, which haveare focusing first on a general-level set already experienced the benefits ofup. It is important to recognise that sometools of modernisation have to be set up such cooperation; andprogressively. • Strengthened collaboration between the public, part government-owned,In dealing with the city’s external economic, financial and academicchallenges, the plan promotes the agents.establishment of modern infrastructure,moves closer to the province, sensitising Finally, Mr Peterkenne concludes; “At thethe Walloon region, and integration in cornerstone of the region the city of Liègecross-border processes, such as in the is ready for new challenges”.Euregio.A major challenge is also to achieve these Liége - strategically located at the crossroads ofobjectives with a relatively modest Belgium, the Netherlands and Germanybudget, given that the Belgian economy iscurrently undergoing adjustment.Cities in focus 121
  • 123. London Borough of NewhamInterview with Sir Robin Wales,Mayor of the London Borough of Newham Sir Robin Wales, Mayor of the London Borough of Newham View of Stratford’s new underground stationThe London Borough of The borough will be the home Global and international trendsNewham is a thriving area of the London 2012 Olympic Establishing Newham and Stratford inwhich is undergoing a Games, providing the focus for particular as a first class tourism andremarkable transformation – an ambitious programme of international business destination lies at the heart of the council’s plans. Stratfordrapidly emerging as a centre of regeneration across the is set to become the new internationalcommerce and culture. borough. gateway to London with a newSituated just three miles east of International Passenger Station – the firstthe financial heartland of the Regeneration and ensuring London stop on the Channel Tunnel RailCity of London, Newham is one there is a lasting legacy for Link – is now under construction. Fromof the most ethnically diverse local people is at the heart of 2007, high-speed trains will arrive from Paris and the continent in two hours andareas of the UK. Newham Council’s plans. Sir 15 minutes. Robin Wales, Mayor and member of the Board for the Borough leaders hope that passengers 2012 Olympic Bid, talked to us arriving at Stratford will choose to stay in one of the many new hotels and enjoy the about the opportunities and burgeoning nightlife and entertainment in challenges facing Newham. Stratford’s fast developing cultural quarter. The new Stratford City development providing 4,500 new homes and a retail development, married with its existing historic town centre, will ensure Newham becomes a vibrant, international area of opportunity adding a new dimension to London’s world city status.122 Cities in focus
  • 124. Cities of the future - global competition, local leadershipThe majority the 26 sports competitions in Driving forward the development of the The council places great emphasis onthe London 2012 Olympics will take place borough is the Newham 2010 Partnership. listening to and understanding itsin Newham. Many of the new, state-of- Bringing together business leaders, public communities. A network of communitythe-art venues will be retained after the agencies and community representatives, forums ensures that the people ofGames for community as well as elite each member is working towards a Newham are centrally involved in shapingsporting uses, and new housing and common vision: “By 2010 Newham will be their future and creating an environment inbusiness parks will abut what will be the a major business location, a place where which they want to live. The council alsolargest public park to be built in the UK people choose to live and work.” places great emphasis on researching thesince the 19th century. needs of the community, especially on Major employment growth is occurring in matters relating to access to work. TheThe council has been instrumental in the hospitality, tourism, retail, Mayor believes that this information isensuring the London bid was successful. construction, engineering and architecture vital in helping to shape policy and localA key partner in the bid team, it enabled sectors. As local companies grow and services to meet the needs of the citizens.and facilitated land acquisition and fresh businesses arrive, attracted by theplanning permission. Sir Robin Wales is in affordable office space and extensive Transforming Newham has requiredno doubt that the games provide a unique transport infrastructure, job opportunities sustained efforts from its leaders andopportunity for Newham, but he also are increasing steadily. citizens. Sir Robin Wales believes that it isrecognises the responsibility that the his role as the directly elected Mayor tocouncil and its partners face in ensuring Through the Access to Jobs Partnership, provide good quality leadership to theworld class facilities are delivered on time employment and business organisations local community and to hold electedand on budget. The Mayor is confident are coordinating their efforts to ensure representatives and partners to account.that the games will be a credit to the that local people have the skills necessary Newham is only one of eleven boroughsOlympic movement, but he is also to take advantage of these opportunities to have a directly elected local Mayor, thisdetermined that they provide long lasting through innovative education and training he believes has been helpful in providingbenefits for the people of East London. initiatives. increased legitimacy with local partners. The council’s business development teamInternal and external challenges focuses on key growth sectors (creative Priorities for the next decadeTackling the gap between poverty and industries, construction and Clearly, the decision to award the Olympicwealth is a major challenge for Newham. manufacturing) and assists local firms to Games to London offers a once in aThe changing nature of employment, capitalise on the extra trade that generation opportunity to transform theinternational migration and a traditional regeneration brings to the borough. landscape and lives of the people wholow skill economy has meant that Through specialist business support and live and work in Newham.Newham has suffered disproportionate supply-chain development, together withlevels of unemployment and social regular workshops, business forums, The council is determined to seize thedeprivation compared to the rest of the showcase opportunities and a opportunity to build a sustainable,UK. Newham is one of the most deprived comprehensive business directory, the inclusive community with wide-rangingboroughs in the UK. Across, the borough, team provides a range of services to social and economic benefits for themore than 100,000 adults are on benefits businesses, whether established or start- borough’s residents.and almost two thirds of children grow up up and helps them to maximise theirin poverty. Newham also has one of the growth and competitiveness.youngest and most diverse populations in Just as the economy is improving, so isthe UK. Over 40% of the 254,000 people the social infrastructure, with moreare under 25 years old and more than 100 affordable housing, better leisure facilities,languages are spoken locally – from new schools and improved transport linksAlbanian to Zhuang. all contributing to a better quality of lifeNew infrastructure, new businesses and for residents. The borough now boaststhousands of new homes have begun to some of the country’s fastest improvingtransform the landscape in Newham. schools and Newham Council isProviding access to these new jobs, skills increasingly recognised for its innovativefor work and affordable housing are key approach and quality services.priorities for the council.Cities in focus 123
  • 125. London, City of WestminsterInterview with Interview with Cllr Simon Milton,Leader of Westminster City Council Cllr Simon Milton, Leader of Westminster City Council The City of Westminster, London, UKWestminster City Council is the The greatest challenge for Global and international trendslocal authority serving the heart Westminster is to reconcile the The pressures that London and the City ofof London. It includes the need to provide a first class Westminster in particular face are notcapital’s principal areas of quality of life for residents with unique, but it has to be acknowledged that it does share particulargovernment, shopping, the need to accommodate and characteristics and challenges with aentertainment and tourism and meet the requirements of its small group of world cities including,the headquarters of many visitors. We spoke to Cllr among others, Tokyo, New York andinnumerable commercial and Simon Milton, Leader of Shanghai. The council has always soughtprofessional organisations Westminster City Council about to forge partnerships and learn from thetogether with extensive how the council is responding experiences of others and recently carried out a ‘peer’ review of its performance withresidential areas of all types. to this challenge. Baltimore, USA. It has also undertakenThe resident population is the Global City Management Survey witharound 220,000 but it is 42 other cities to identify commonestimated that about 1 million interests and best practice in managingpeople set foot in Westminster global some time during the day. It As the UK’s political and tourism centre,is also one of the UK’s premier Westminster is particularly vulnerable totourist destinations, and it is terrorist attack, as the events of 7th Julyestimated that 95% of Britain’s 2005 sadly confirmed. The Council alongannual 28M tourists pass with public sector partners had been working hard to ensure that the city wasthrough the city. as prepared as possible for any eventuality. All of London’s emergency services and local authorities have been124 Cities in focus
  • 126. Cities of the future - global competition, local leadershipuniversally praised for their swift, calm residents have equal opportunity and The council has also invested heavily inand professional response to the attacks. access to quality services, jobs and new technology to achieve efficiency andThe city council and partners now have an affordable homes forms the second part productivity gains, for example staff haveon-going task to ensure residents and of the council’s agenda. been provided with hand held computersvisitors feel confident to live, work and to record and process information as theyvisit London. Access to affordable housing is a work on-site, saving substantial time and particular issue for Westminster residents. resources. The council also places strong The council has set a new £100m plus emphasis on performance management,Internal and external challenges fund for affordable housing as a result of setting challenging targets to manageWestminster is a vibrant 24-hour city, with the sale of property assets elsewhere in costs downwards whilst still achievingthe largest night time economy in Europe. the city. The fund, is the largest affordable good quality outcomes for its citizens.The streets around entertainment zones housing fund ever created in the UK.can be very noisy and there are increasing Administered by a charitable trust, thelevels of anti-social behaviour often driven fund will be targeted at providing a range Priorities for the futureby alcohol abuse. The centre piece of the of new housing opportunities in addition Civic Renewal, the five-year programme,council’s agenda is maintaining order – to those offered by other public sector provides a platform through which thetackling crime and the fear of crime. providers. The fund will allow the council Council will regenerate the social,Programmes such as CivicWatch – a to move away from the traditional social economic and physical infrastructureprogramme to tackle anti-social behaviour housing tenure to more innovative of Westminster and make Westminster anand poor environment – and a new anti- schemes promoting home ownership, example of world-class city behaviour hotline help council staff shared ownership, supported housing forto respond quickly and effectively to older people and other forms ofincidents. intermediate housing.The council has also recently entered into In order to tackle the pockets of severean innovative partnership with British deprivation amongst Westminster’sTelecom, Intel and Cisco to create a minority ethnic communities, the council‘Wireless City’ which allows Closed Circuit is setting up a new Minority and SmallerTelevision (CCTV) cameras and noise Business Council. The council believesmonitoring equipment to operate over a the best way to raise people out ofwireless network. This means that the deprivation is to give them renewed hopesystem is flexible enough to respond to and a greater stake in the future welfare ofsudden outbreaks of criminal activity. New their own neighbourhoods.cameras and equipment can be installedat very short notice and low cost. Westminster council has an exemplary record in delivering good quality, costImproving the local environment is effective services, and was awarded theanother key part of the council’s agenda. prestigious ‘Council of the Year’ Award inUsing innovative Global Positioning 2004.Systems (GPS) technology developedspecifically for the council, the council can Keeping local taxes as low as possible istrack and monitor all cleansing vehicles as the third part of the council’s agenda. On-they collect rubbish from across the city, going financial pressures across localallowing refuse collection teams to government means that the council needsrespond to problems as they happen. to seek ever more innovative and creative ways deliver its services. InnovativeWestminster has an extremely diverse outsourcing arrangements mean that 60population. 51% of residents were born services, employing 400 people are nowoutside the UK, 30% of the population are delivered by the private sector and afrom black and ethnic minority customer call centre, which has handledcommunities and over 150 languages are four million calls in the first two and a halfspoken. Westminster contains some of years, providing a high quality service tothe UK’s most prosperous citizens. The council is also investigatingneighbourhoods, but there are also high options where it can ‘trade’ services, thatlevels of social deprivation. Fostering is, deliver and manage services on behalfgood community relations and ensuring of other public sector bodies.Cities in focus 125
  • 127. Ville de LuxembourgInterview with Mr Georges Fondeur,City Chief Secretary, Ville de Luxembourg Mr Paul Helminger, Mayor, Ville de Luxembourg Photos by Robert Theisen and Francois Buny © copyright Phototheque de la Ville de LuxembourgThe City of Luxembourg is the We talked to the City Chief Key challengescapital of the Grand Duchy of Secretary, Mr Georges Fondeur • Deploying eGovernment by connecting people and simplifying interaction withLuxembourg. The city has about the city branding, the the city;85,000 inhabitants of whom future challenges and trends for • Alleviate traffic congestion;60% originally come from the city. • Stimulating life in the city (attractingoutside of the Grand Duchy. residents to live in the city centre);About 120,000 people from the • The impact of deregulation in theneighbouring states of Belgium, energy market and the consequencesFrance and Germany flow into for city revenues (the city is the main energy provider);the city each day for work. Thecity government has an overall • Managing costs and improving productivity; andbudget of €600 Million and • Attracting qualified and experiencedemploys 3,300 people. employees.The city is governed by the city Luxembourg is a city with a rich historycouncil (27 members) and the (founded in 963) and it boasts many remnants of its turbulent past such as acity board (7 members) which is fortress (now a UNESCO World Heritagechaired by the Mayor Mr Paul site). The historic setting, the proximity ofHelminger. its neighbouring countries (France, Germany, Belgium), the cultural offerings126 Cities in focus
  • 128. Cities of the future - global competition, local leadershipand happenings, the international External and internal challenges Priorities for the next decadebusiness environment with its multicultural Deregulation of the energy market is the To plan for the future, the city ofworkforce, the attractive business most important financial challenge for the Luxembourg is mapping out a strategy inenvironment, as well as the presence of city of Luxembourg. Indeed, the city was the form of an urban developmentmajor EU institutions: these are all the sole supplier of electricity and gas plan (IVP: Integratives Verkehrs- undreasons why the city of Luxembourg within the city’s borders and generatedattracts people from all over the world. Landesentwicklungskonzept), which substantial turnover and profit from this includes traffic organisation, construction activity. In the 2005 budget, revenuesBranding the city and urban development projects. In order from energy (including water) represent the second largest source of income for to exploit synergies, this plan is beingBesides being an important financialcentre, the city sees its attractiveness in the city, only second to commercial taxes. developed in close cooperation withtwo areas: tourism and art & culture. neighbouring cities. The development of The city currently employs about 3300 the University of Luxembourg willMr Helminger has put every effort into people and strongly encourages its staff be another key priority on the citydeveloping the cultural offerings in the city to enrol in vocational training programmes management’s agenda, which shouldby creating “Une Ville d’expositions” – a (“life-long learning”) thus encouraging foster the development of Luxembourgcity of exhibitions. Luxembourg city was employees to develop. Nonetheless, into a city of sciences and research.the European City of Culture in 1995 and attracting highly qualified and experiencedwill be again in 2007, together with other people from outside for high-ranking jobscities located in neighbouring countries represents a real challenge for the city.(what is known as “La grande région”). To The city of Luxembourg has about 85,000further promote and develop its brand, the inhabitants, but during the day businessescity has decided to create the job of “city attract around 120,000 additional people.manager”. This person will be responsible This fluctuation of people has an impactfor the coordination of all these cultural on social life, being very busy throughoutactivities and events. the day but less active in the evening.In comparison with its nearest neighbours This is partly compensated by theand competitors (Nancy, Trier, presence of a large internationalSaarbrücken), Luxembourg is the only city community (60% of the 85,000 inhabitantsthat does not yet have a fully operational are foreigners) bringing life and diversityuniversity. Evidently, the lack of students to the city in the evening.negatively impacts social life in the city. In order to alleviate heavy daytime traffic,This has changed recently with the the city tries to push for an increasing usecreation of the University of Luxembourg, of public transportation by definingwhich should help attract a new several measures (no free parking). Today,population of students and young people. public transportation represents more than 25% of traffic (with the exception ofGlobal trends: eGovernment and one area).the relationship with local citizens The city also focuses on the environmentThe city increasingly sees the citizen as a by working on the production of lowcustomer, and all the services offered by emission vehicles for public transportationthe city are being centralised to simplify (buses) and by using new technologies todealings with the city. A central agency has produce heat and electricity, generatingbeen created (“Biergercenter”) to serve as a 30-35% fewer emissions than traditional“one-stop shop” for citizens. This service technologies.will be further developed through thecreation of a virtual city (eBiergercenter)offering more flexibility and interactivitythrough the use of the Internet.Cities in focus 127
  • 129. MadridInterview with Mr Ignacio Niño,General Co-ordinator of Economics, Madrid City Council Miguel Angel Villanueva, Councillor of Economy and Citizen Involvement. Madrid The City of Madrid by nightIn the last four years alone, We talked to Ignacio Niño, the Global and international trendsMadrid has gained 300,000 General Co-ordinator of The unstoppable technological advancesmore inhabitants and currently Economics at Madrid City in transport and in information andranks third among European Council about future challenges communication technologies (ICT), deriving from the intensification of globalisation andcities in terms of population. and their consequences for the the increased competition amongst15% of the population is Spanish capital. His aim is to companies and territories, is one of theforeign. It is among the top-10 see Madrid as a truly international trends that will affect the citycities in Europe in terms of the cosmopolitan city with a of Madrid over the next 10 years.level of education achieved by dynamic international image, International competition will be especiallyits citizens, with 25% of whilst at the same time being stiff in the financial sector, ICT, advanced business services and research activities. AtMadrid’s inhabitants holding at the service of its citizens, the same time, migratory pressure willuniversity degrees. with their increased continue to grow, with Madrid as a gateway participation in municipal for Latin American, North African and Sub-The vision for the city is for affairs. Saharan African migration. The context ofMadrid to become a increased global competitiveness, togethersustainable, cohesive and with a rise in world economic deregulation will strengthen the challenge ofcompetitive place for business internationalisation for companies andand pleasure. cities. In particular, Madrid will have to find its “place in the sun” facing emerging territories in Asia (especially China and128 Cities in focus
  • 130. Cities of the future - global competition, local leadershipIndia), Eastern Europe and Latin America, The most important internal challenges habitat through rehabilitation of the citybased on differentiation, quality and focus on the successful integration in the centre, the recovery of pavements andinnovation strategies. Tourism will also be a city of the increasing immigrant population the re-balancing of immigration bykey activity in continuous growth, in line (along with their religious and cultural districts/quarters;with the increase in world income. Cultural values) and on the greater involvement ofand economic differences between regions civil society in the government of the city. • Competitiveness: Madrid capital willand cultures across the world will continue focus on R&D and innovation, theto be an important factor that will threaten development of new competitive Consequences for the citythe security and safety of the inhabitants of industries such as life sciences and The key to respond to these challenges isall major world cities. materials sciences, the promotion of the the implementation of public policies by city as a logistics nexus between the city government. However, these newInternal trends challenges are receiving insufficient Europe, Latin America and Africa. OneA major internal trend is the increase in land attention via the provision of budget important strategic objective is toprices as a critical factor in absorbing, allocations, compared to traditional become the head office of internationalattracting and retaining economic activity challenges such as security and cleaning. bodies and a European “economic”and population. In addition, the integration In other words, the budget is not growing meeting point: business tourism centre,of immigration is critical for preserving the proportionally in line with the rapid trade fairs, events; andquality of urban life and harmonious development of these new challenges.coexistence between different groups in all • In addition, work will be done for Madrid Public policy mechanisms will have to be to become the South European centredistricts of the city. The ageing of the local more flexible, in order to meet these new for design and fashion.population is another factor determining activity and future investments in A sustainable, cohesive, competitivethe city. In order to attract investment and The participation of citizens in municipal Madrid will be a lighthouse, a “qualitypeople to Madrid, issues/factors of affairs will be promoted, together with the circle” of development in three dimensions:congestion such as environmental quality, creation of social councils as participatory bodies in local development policies. economic, social and human, in both thetraffic problems, housing and business landprices will have to be addressed by international and trans-national arenas. Active economic and city marketinginvesting in infrastructure and urban policies will be implemented, promoting Achieving these goals will see the citytechnology. No less important is the need Madrid’s key areas for its economic achieving its vision of: “Madrid as afor companies based in Madrid to evolve future: internationalisation, R&D, sustainable, cohesive and competitive citytowards quality, innovation and the innovation, tourism promotion, in the international arena”.appreciation of investment and R&D in revitalisation of the urban centre,order to preserve a leading position for strengthening of trade, proximity, increaseMadrid’s economy. The risk of institutional in economic information of the city,relocation is also undermining one of the dialogue and consensus with localsubstantial elements of the city: its status economic agents and co-ordination withas the country’s capital. other levels of administration.External and internal challenges Priorities for the next decadeThe major external challenge the city faces In order to become a truly 21st centuryin order to address the above-mentioned capital city, Madrid capital will placetrends lies in positioning Madrid better in a particular emphasis on the following tasksmore globalised world in which cities are and projects:competing more and more for investment,tourists and the organisation of events. This • Environmental sustainability: mainlypositioning will include the creation of a through covering over the M30brand image for the city in line with the type Motorway, which implies recovering theof city to be promoted: modern, open, Manzanares river and creating a bicyclesustainable and participatory, facing the ring road, and the promotion of publicchallenges of innovation, greater capacity transport networks;to attract capital and greater effort ingaining a position internationally. • Social cohesion: territorial balance between the districts, citizen participation and recovery of the urbanCities in focus 129
  • 131. MalmöInterview with Ms Inger Nilsson,City Manager of City of Malmö Ms Inger Nilsson, City Manager of City of Malmö, Sweden Malmo “Turning Torso” Photo: Lisbeth SvenssonMalmö is the third largest city We asked Ms Inger Nilsson, Global and international trendsin Sweden. It has a City manager of City of Malmö, Internationalisation and regionalisation aremetropolitan population of about the most imperative the most apparent trends. Today and inabout 498,000. Malmö is also a issues and visions of the city of the future we will interact more and exchange experiences with otherpart of the Öresund region that Malmö, both for today and for municipalities that are similar to us orincludes about 3.5 million the future. have the same problems/opportunities asinhabitants. Today, Malmö is we do. There is a great deal to learn fromundergoing a transition from an other municipalities. The fact is that theyindustrial city to a city of are all public organisations with much inknowledge. Older industries common so the opportunities to learn something new are endless. For example,have been replaced by the City of Malmö has about 500investments in new technology politicians while Copenhagen has 55. Theand high calibre training question is: are we more democratic thenprogrammes. Malmö University, they are? Probably not. Consequently, thewhich opened in 1998, is most important thing becomes not toSwedens latest venture in the speak the same language (e.g. Swedish) but to talk the same municipalityfield of higher education, language. Another important trend isaccommodating some 15,000 growing collaboration with the non-students. municipality stakeholders (companies, associations, universities, citizens and unions.130 Cities in focus
  • 132. Cities of the future - global competition, local leadershipInternal trends with such projects as the Turning Torso, the West port and others. These trendsThe population’s increased and growing will increasingly be addressed bymobility is one of the emerging trends due solutions based on partnership in variousto the development of infrastructure (the forms to solve different issues. TheÖresund bridge, the Metro). After the fall municipality will no longer be solelyof the Soviet Union the possibilities of responsible for everything as it is to someregionalisation have been increased. From extent today.being a municipality at the border ofEurope we have now become a central For example, shared construction projectsplace in a very interesting region. between the municipality and a building contractor will achieve a mutuallyExternal and internal challenges beneficial outcome for both parties usingThe most significant challenges in the city the most efficient means.of Malmö include: security, public safety, Two key trends are influencing Malmö’shousing problems, educational citizens: they are paying more attention toachievement and jobs for everyone. the important issues of the day and wantCrucial for the city of Malmö will be how to make an impact; and they are escapinggovernment management changes and from the city for the perceived relativehow it will affect the city. The possibilities “safety” of places like Vellinge, Hörby.lie in workforce reserves management thatcan decrease the unemployment rate and Priorities for the next decadethe dependence on social aid. The threatsare that immigrants will not be • To create employment, safety, educationsuccessfully integrated into the labour and housing for everyone;market and that public safety will • Maintain the region’s attractiveness;diminish. • Make sure that the all playersThere are inconsistencies in government (companies, associations, citizens anddecisions today, which affect the unions etc) have the necessary supportmunicipalities’ ability to plan for the future. in order to deal with new trends;This must be improved. The countycouncil “Region Skåne” is a relatively new • Influence politics on a national leveldevelopment which has yet to find its (economic and educational policy). Inright shape. In line with the trend seen order to face new trends and to meetelsewhere in Europe, regions will become upcoming needs, Malmö has started amore important. Consolidation of project “Welfare for Everyone”;municipalities will be more common. • By implementing projects such as “Welfare for Everyone“, creating jobConsequences for the city opportunities and securing public safetyFailing to create jobs for all immigrants to ensure that insecurity and, in the longcould lead to a feeling of insecurity run, even terrorism and otheramong these people. The population international problems do not gain acomposition in Malmö City has been foothold.influenced by the internationalisationprocess, which has brought both All municipalities stand on the sameproblems and opportunities. Despite the ground: namely, creating maximumnegative side of internationalisation, youth welfare for all their citizens.culture has been strengthened (Universityof Malmö and Lilla Torget with its coffeehouses) in terms of belief in the future andCities in focus 131
  • 133. MangaungInterview with Mr Mojalefa Matlole,City Manager, City of Mangaung Mr Mojalefa Matlole, City Manager, City of Manguang City of ManguangSituated in the heart of South Mojalefa Matlole, City Manager Global and international trendsAfrica, Mangaung Municipality of Mangaung, shared his ideas There is a worldwide move towards theis home to a rich cultural about the future of the city with decentralisation of government, with anlifestyle and is a recognised us. accompanying need for the increasedmelting pot of creative ideas involvement of the citizenry in theand expression. With a activities of the municipality. We believepopulation of over 750, 000 that governments need to decentralisepeople, its boundaries span power to local government.6,363 km2 and include In this era of globalisation, cities are moreBloemfontein, SA’s sixth city, than likely to compete with each other forwhich is also the capital of the investments. The fact that investors canFree State province. be attracted by various technological means will not only provide for intense“Hospitable city”, “the competition between cities, but also forcongress city”, “the total city” many more opportunities to attract investors.and “the city of roses”. Allthese designations indicate that The growing prominence of cities, as wellit is a city in which not only as the role that they can play in theresidents, but also visitors and economies of national states, could welltourists can feel at home. play a pivotal role in the rise or decline of national states.132 Cities in focus
  • 134. Cities of the future - global competition, local leadershipInternal trends A major internal challenge that we will We foresee that there will be a heightened face is a resource capacity at a financial level of awareness amongst citizens withSouth Africa is currently experiencing a level. There is a need to have the regard to their rights and obligations. Ourconsolidation of service delivery at a necessary political and ad-ministrative aim is to foster a city of citizens that haveregional level. We are seeing this in the coherence, resolve and the will to deal great civic pride, responsibility and afields of electricity distribution, water, with this challenge. strong partnership ethos, with a vibrantsanitation and the district health system. cultural life. Citizens must participateSocial challenges currently centre on Consequences for the city actively and trust their service providers,crime and safety, increased urbanization If the city does not deal with the who must operate with a culture ofand sprawl, and sustainable development. challenges it faces, it will become transparency and accountability.There is a massive migration to the urban uncompetitive as a city and will be unable In a South African context, we expect acentres of the coun-try, which will to attract investment. There will be an gradual phasing out of provincialinevitably lead to the escalation of the increase in the level of poverty as well as government that will be replaced bylevel of poverty. in the unemployment rate. As faith in their stronger local government, which willWe expect a significant increase in the leadership and in the government have a stronger focus on bothnumber of people that will be dependant structures erodes, public unrest becomes development and the economic sector.on the informal business sector which, a very real risk. Through our “Mangaung Compact” wecoupled with the high unemployment rate, Mangaung is responding to the challenge are beginning to involve both the privatewill inevitably result in a housing shortage. by continuing with our strategy of bottom- and the non-profit sectors for thePublic Health remains a major concern – up planning, which is also used for spatial betterment of our economic growth. Wenot only the HIV and AIDS pandemic (the development planning. need to enter into partnerships with therate of infection in our province is On a political level we have signed the private sector in order to finance ourestimated at around 30%), but also other “Mangaung Compact”, which aims to infrastructure.illnesses such as tubercu-losis and ensure a harmonious working relationship We have recently established amalaria. between the city, the provincial Knowledge Management Centre, which government, the district municipality and has strong ties with the SA Cities NetworkExternal and internal challenges the private sector in addressing the and the Development Bank of SouthOne of the biggest challenges that we challenges that face the city. Africa. Sharing of knowledge, innovationface is in the field of intergovernmental We are also embarking on an institutional and best practice are key to our futureco-ordination, both as an approach and and financial reform programme in order a strategy. This is due to the fact that to stabilize the organisation and to put it As we realise that the challenges facingwe have to drive co-ordination with both on a good financial footing. Unlike in the cities globally are similar, we will all bethe provincial government and the district past, we visualise a greater role for the able to learn from each other.municipality on the issue of how we deal city in the area of economic development.with matters of government as well asensuring that the different governmental Promotion of the city and priorities for theinstitu-tions do not duplicate services. A next decadepart of this daunting task is to deal withthe powers and functions of the different Our vision is for Mangaung to bespheres of government. recognised nationally and internationally as a safe and attractive place to live, workA further challenge is around the issue of and invest by investment, as we need to injectmore funding into our infrastructure, which We have already embarked on anin turn is supposed to drive the economy aggressive marketing strategy under ourof the city. pay-off line of “city on the move”.Cities in focus 133
  • 135. MelbourneInterview with David Pitchford,Chief Executive, City of Melbourne David Pritchard, Chief Executive, City of Melbourne View of Melbourne skylineMelbourne is the capital of Global and international trends Despite the advent of internationalVictoria and the host of the terrorism Melbourne continues to attract Global economic, industrial and political international students. Other international2006 Commonwealth Games. trends affect the economic and social concerns such as the SARS outbreak hadWith 3.6 million residents, it is climate of the City of Melbourne and a short-term impact on the level of inform its vision for the future.also Australia’s second largest corporate travel and tourism, butcity and a vibrant centre of China has become the outstanding international visitor numbers recoveredcommerce and innovation. success story of our times and, in the quickly and have continued to grow. next decade, will likely become the world’s third largest economy.This article is based on the Internal trendsresponse from Mr David Melbourne is the only Australian city with The Central City’s population has doubled a dedicated office in Tianjin and the sister- over the last ten years and is projected toPitchford, Chief Executive, City city relationship generates solid financial double again over the next 20 years. Thisof Melbourne. and social rewards. It has taught will increase pressure on the environment. Melbourne a great deal about the benefits Reducing water use, energy consumption of building global relationships. and greenhouse gas emissions are critical External agencies consistently rate to the city’s sustainability. Melbourne as one of the world’s most The Docklands development will also be liveable cities. Its inclusive, cultural life is completed and handed back to the City of one of its key competitive advantages. Melbourne from the State Government in Melbourne is also a global attraction for 2008, giving the city a major waterfront learning and knowledge, home to nine and doubling the size of the central universities and 32% of Australia’s business district. international students.134 Cities in focus
  • 136. Cities of the future - global competition, local leadershipIn 2006, Melbourne will host the Common- Mr Pitchford believes that care must also Under construction next door to the Townwealth Games, which will bring 90,000 be taken to protect the unique feel of the Hall, the new Council Administrationoverseas and interstate visitors and present city, its streetscape, active spaces and building, CH2, has been awardedthe city to a billion television viewers. wonderful parks. Australia’s first six-star green rating and isFinancial issues impact the City of set to become the greenest multi-storyMelbourne and the Council faces pressure Priorities for the next decade office building in the world, a feat peopleto keep local taxes low. Adding to this The next decade will see many everywhere will want to see in action.pressure is cost shifting by State established cities face the social changeGovernment to local government. The city is and economic challenges created by anassessing the potential to increase revenue ageing population, skills shortages,from sources other than local taxation. immigration and population movements.In addition to keeping taxes low, the city isalso focused on providing quality services The City of Melbourne has produced thetailored to the needs of the community. City Plan 2010 which sets out the City’s vision and agenda for the future. Its visionExternal and internal challenges is for a thriving and sustainable city, achieved by the simultaneous pursuit ofA major challenge for any city is to economic prosperity, social equity andmaintain social equity and avoid apolarised society. Decreased interaction environmental quality.amongst a city’s population can increase The city’s business focus is on innovationsocial problems and divide its community. and specialisation in its areas ofAccessibility is also an important issue for comparative advantage including,Melbourne as the number of visitors to financial services, advancedthe city each day is ten times the number manufacturing, life sciences, bio-who live in it. Visitor numbers increased technology, education, environmental25% over the last four years and are management, health, and tourism.projected to increase by 17% over thenext four years. In order to be competitive in the knowledgeThe council’s aim is to maximise sector, Melbourne will need to support itsopportunities for all members of the highly skilled workforce and ensure it hascommunity to enter the city and expand the ability to respond quickly to change.transport options. It is focussed on reducing It is also essential to ensure the citythrough traffic and commuter car use. remains safe, attractive, inclusive and a great place to live.Consequences for the cityThe council must continue to develop and But we need to build on our quality of lifeoffer programmes to support businesses and set new benchmarks in sustainability,both locally and in export markets by liveability, creativity, innovation, education,using its information, contacts, experience safety and prosperity.and infrastructure. The City of Melbourne is acting onAs the city’s residential population increases, environmental issues and challenges bynoise pollution becomes a greater concern. aiming for Net Zero Emissions by 2020. It isNoise management initiatives and control also sensitive to the global issue of accessguidelines are underway. to water and plans to reduce waterEstimating the needs for future services consumption by 12% by 2020. The City isand infrastructure development is also a also introducing sustainable water polices,challenge, particularly given central guidelines and training across the city.Melbourne’s rapid development andpopulation growth.Cities in focus 135
  • 137. MontrealInterview Gérald Tremblay,Mayor, City of Montreal His Worship Mayor Gérald Tremblay, Mayor, Montreal City of MontrealMontreal’s architecture most But of course, it is Montreal’s International economicrevealingly attests to the city’s 3.5 million people that best conditionsdual personality: an exciting exemplify the excitement and Montreal’s economic development, likemix of European warmth and joie de vivre that make it all other large cities of the globe, isNorth-American modernity. happen. A fierce pride beats in inextricably linked to internationalEverywhere, lovingly preserved the French heart of North business conditions. The profoundVictorian mansions, stately America. Montrealers work, rest changes brought about by the globalisation of the world’s economiesbuildings from past centuries, and play in a truly global have repercussions of varying degrees onand Beaux-Arts style multitude of languages and all countries and areas of activity.monuments blend with the cultures. Companies, cities, regions and countrieslong, cool lines of modern are all seeking to reposition themselves toskyscrapers. We spoke with Mayor Gérald best take advantage of the new world economic conditions. Tremblay about his vision for Montreal and about the Like other cities and regions, Montreal is challenges his city faces in the particularly affected by increasingly intense future.Global and international worldwide competition arising from freer trade; the metropolitisation of economies; trends the continuous technological development and distribution of information and communications technologies; the easy mobility of investments, capital and persons; the transition to a knowledge- based economy; and the importance of human capital.136 Cities in focus
  • 138. Cities of the future - global competition, local leadershipUS economic conditions Internal trends The city must also tackle employmentUS economic conditions directly affect the The city of Montreal faces the following migration caused by factors such as:economic vitality of all major Canadian major internal challenges: • Low cost jurisdictions; andcities, including Montreal. Increasedmilitary spending and the burgeoning • Low competitiveness and productivity, Socio-demographic trends even if Montreal is well-known for thebudget deficit in the US is putting upward An ageing population is affecting Montreal quality of life it offers (qualitypressure on interest rates. as in other major urban centres. In 1986, infrastructures, high level of safety, anFurthermore, this has weakened the US people in the over 65 age group effective mass transit system, qualitydollar against other currencies, including represented 12.8% of Montreal’s total healthcare, access to capital). This canthe Canadian dollar which has shot up population; however, this figure rose to prevent the city from welcoming andabout 30% in recent months. Foreign 15% in 2001, a trend that continues. retaining a qualified immigrant populationinvestments in Canada and exports have An ageing population and slow to occupy value-added positions withinbeen affected, not only by the increase in demographic growth in urban centres in key sectors of its economy.the value of the Canadian dollar, but by industrialised countries have forcedthe speed at which it has taken place, Another approach in increasing economic politicians to place more weight onwhich has prevented companies from growth is to offer major financial international (qualified) immigration andfine-tuning their strategies in time. incentives to attract companies, a the attendant consequences on housing and social cohesiveness and integration. strategy that has been noted withThese conditions can have an impact onemployment levels in the country. increasing frequency in the US. The ever-widening gap between socialHowever, in 2004, the Canadian economy At the same time, there is the serious classes is another trend that is affectingperformed very well, particularly due to issue of the underfunding of Quebec’s and will continue to affect Montreal insustained growth in the housing sector, universities. terms of urban development and socialconsumer demand and company In this connection, it must be This lack of funding could have an impactnoted that the rise in the Canadian dollar over time on Montreal’s ability to fullygives a substantial advantage to External and internal challenges embrace the knowledge-based economy.companies that acquire goods and Montreal’s main challenge is to increaseservices in the US to increase their A different concern is Montreal’s economic growth to generate a grossproductivity. overdependence on the US economy and domestic product (GDP) per capita susceptibility to its fluctuations. 42% (in greater than the continental average, value terms) of exports outside the citySustainable development which requires it to: are destined to the US. The city’sCountries and cities, particularly those • Raise the rate of those holding university challenge is therefore to diversify itsthat offer an environment and a better degrees in the 25-and-over group; export markets by making itself betterquality of life – while taking a balancedapproach to economic vitality, social • Attract and retain new qualified known and improving its positionequity, environmental protection and immigrants; elsewhere in the world in niches where itrespect for the needs of future has comparative advantages. • Increase the business creation ratio;generations – will be best equipped to • Improve first-line services to Current governance arrangements withindeal with worldwide competition. businesses; Canada represent a challenge to all citiesIn this respect, it is worth mentioning in Canada. There is a clear mismatch • Modernise urban infrastructures;Montreal’s Blue Network, Montreal’s between local government accountabilityGreen Project, the protection of Montreal’s • Foster demographic growth; and the expectations of communityhistoric and national district of Mount • Reduce the proportion of the population residents for a responsive governmentRoyal, amongst others. Montreal is also that is economically fragile; and that will look after their interests.very well-known for its multiculturism. • Select excellent niches for exports, This challenge is exacerbated by the fiscal particularly in areas where demand from imbalance between local government the US is relatively strong and where responsibility for front-line social programs Montreal already is at an advantage. and the fiscal resources and fiscal capacity to address those responsibilities.Cities in focus 137
  • 139. Nelson Mandela Metropolitan MunicipalityInterview with Ms Vuyo Zituman,Municipal Manager, Nelson Mandela Metropolitan Municipality Ms Vuyo Zituman, Municipal Manager, Nelson Mandela Metropolitan MunicipalityNelson Mandela Metropolitan Global and international trends Internal trendsMunicipality (NMMM) includes The city faces a number of competitive The New Partnership for Africa’sPort Elizabeth, Uitenhage and challenges generated by global trends. In Development (NEPAD) is seen to beDespatch. Together they form particular, large emerging markets such as having a positive influence on the foreign China and the Middle East are creating a direct investment (FDI) and opening morethe fifth largest city in South shift in the focus of foreign investment. At opportunities for trade.The local economyAfrica with a population of 1.5 the same time, the exchange rate does have a more optimistic outlook, withmillion. We talked to Vuyo implications of the ZAR/$ are having an greater stability and positive nationalZituman, the municipal impact on export competitiveness policies in terms of development,manager and asked her about especially for the automotive spare parts governance and general fundamentalsthe challenges the city faces industry which forms a considerable part such as fiscal policy all contributing to of the industrial base of NMMM. this. Political stability in South Africa alsoand its vision for the future. plays a significant role. Other hotspots around the world – for example the Iraq and Sudan conflict Strong and improving corporate zones – have also diverted attention and governance is also helping to create funds away from infrastructure positive perceptions about the requirements in South Africa. possibilities of trading and developing commercial relationships with businesses in the region.138 Cities in focus
  • 140. Cities of the future - global competition, local leadershipExternal challenges Priorities for the city in the nextAs mentioned previously, exchange rate decadevolatility has a potentially damaging effect The city government is putting itself at theon the local economy in terms of the centre of development efforts for theability to export. We are in competition region as a whole. Acting in the capacitywith other cities, such as Durban and of ‘big brother’ the city is collaboratingCape Town, for revenue from tourism and with its district neighbours to broaden,the ability to attract FDI. create and support regional economicThe NMMM is also the centre for opportunities. This means promoting theeconomic and infrastructural development region through specific marketingin the region. This means that the city has campaigns aimed at attracting businessto help its intra-provincial neighbours to and tourism to the city and its outlyingbecome self-sufficient and viable regions.economies. But there is significant The city’s infrastructure also needs to bepoverty in the region and this means that replanned to take account of thethe efforts to help other communities expanding. The Infrastructureovercome these problems requires Development Plan (IDP) has beensignificant effort from the NMMM developed with the specific aim ofgovernment. tackling this challenge.The city does not have a strong strategic Through intensive public participation withlocation as enjoyed by for instance stakeholders, the city has developed aJohannesburg or Cape Town, both of vision for 2020 that has an extensive listwhich are ‘gateways’ to the country. of the specific areas that the city wishes to improve, These include developingInternal challenges institutions, improving housing, placing anPoverty in the areas surrounding the city emphasis on the environment, boostingmean that there is a trend to urban tourism, enhancing public safety andmigration and this movement of poor alleviating poverty.people from outlying areas into the cityplaces a strain on the city’s ability tomanage its infrastructure. The city’sinfrastructure is sound, but is beingseverely tested by the changing needs ofthe city’s inhabitants and the rapidincrease in demand arising from thepopulation growth.The city also needs to ensure that its skillsbase can be developed in line with thechanging requirements of the relevanteconomic and industrial sectors.Cities in focus 139
  • 141. Nizhny NovgorodInterview with Mr Alexander Konstantinovich Meleshkin,First Deputy Head of the Municipal Administration and Vice-Mayor of Nizhny Novgorod Mr Alexander Konstantinovich Meleshkin, First Deputy Head of the Municipal Administration and Vice-Mayor of Nizhny Novgorod City of Nizhny NovgorodNizhny Novgorod is the centre We spoke to Alexander Global and international trendsof the TransVolga Federal Konstantinovich Meleshkin, Globalisation of business is one of theRegion (one of Russia’s seven First Deputy Head of the most significant trends impacting thefederal territories), capital of the Municipal Administration and development of Russian cities in general, and Nizhny Novgorod, in particular.Volgo-Vyatka economic region Vice-Mayor of Nizhny Nizhny Novgorod is perceived as anand administrative centre of the Novgorod, and asked him attractive place for business by RussianNizhny Novgorod Region. about the opportunities and and international companies alike due toNizhny Novgorod is Russia’s challenges his city faces. its position in the centre of the TransVolgamajor industrial and scientific federal territory and its high industrial andcity and rates among the top- research and development (R&D) potential. Many large companies, such asfive cities in terms of its Lukoil, Bazovy Element and Intel, havepopulation (1,350,000 people) already gained a foothold in the city andand industrial potential. others are reviewing possible options for entering the local and regional market. The arrival of major corporations facilitates higher economic and industrial growth. It also ensures new jobs, greater budget contributions and a higher employment rate. This trend will remain a driving force for the city’s development in the next decade.140 Cities in focus
  • 142. Cities of the future - global competition, local leadershipInternal trends solid foundation for the city’s economic Thus, in 5-7 years’ time, Nizhny Novgorod growth, including the development of should become a city of new housingGlobal, domestic and regional trends are science-intensive industry sectors. blocks and new shopping andall interrelated. Positive national trends, Planning the development of certain city entertainment facilities:include Russia joining the World Trade districts poses a problem becauseOrganisation (WTO), which opens up new historically these districts have evolved • One of the priorities for the next decadeinternational market prospects to local will be transport infrastructure around major enterprises and growth iscompanies. In addition, an improved closely linked to such enterprises’ development in order to supportRussian taxation system and the development. dynamic growth of the city’s economy;expansion of major businesses in the local andand regional market ensure favourableconditions for the city’s development. Implications for the city • Social development also remains at the(Social projects implemented by local and Nizhny Novgorod’s geographical position top of the agenda for this companies are also making and its economic and R&D potentialan important contribution to positive creates favourable conditions for furthersocio-economic changes.) socio-economic growth.Nizhny Novgorod is the centre of the Local municipal authorities’ impact onVolgo-Vyatka economic zone and the economic growth rates largely tends to becapital of Povolzhye, and this high status of indirect nature due to the division ofis another incentive for local business andmunicipal government development. The responsibilities between the city’sadministration aims to meet the highest administration, regional and federalmanagement standards and maintain the authorities and also because of fundingcity’s reputation as a federal district constraints. To influence the economiccapital not only on the regional, but also dynamics, the city government tends toon the federal level. provide indirect support to transparent businesses, such as lease extensions orOpportunities and challenges terminations, to ensure city budget cashThe current realignment of responsibilities inflows.and resources between the city, regional As a result of growth in municipaland federal governments is a further employees’ remuneration, the citypositive trend. The process targetsstreamlining the range of tasks and administration faces the task of efficient HRobjectives to be tackled at each level and management based on up-to-date incentiveensuring that resources are available to and performance appraisal systems.achieve this. Once this process iscompleted, the city administration will be Priorities for the next decadeable to solve the tasks falling to it in a moreefficient manner, as it will be empowered to • Nizhny Novgorod is a capital of TransVolga Federal Region, and aims touse the necessary resources. However,while the process is still underway, the city’s maintain this status in the next decade,local authorities often have to take in particular, enhancing the city’s role inresponsibility for certain tasks with the the regional economy and Russianresources being controlled by either the economy as a whole; andregional administration or the federal local • Construction objectives relate toauthorities. This sometimes hinders efficient replacement of about 20% of the city’ssolution of the issues. obsolete housing stock over the nextThe city’s high intellectual and R&D five to seven years. The expansion ofpotential (a great number of R&D major retail networks, includinginstitutes, educational centres and a international ones, to the region involveshighly-qualified population) serve as a construction of new shopping malls.Cities in focus 141
  • 143. City of OsloInterview with Mr Erling Lae,Chief Commissioner of City of Oslo Mr Erling Lae, Chief Commissioner of City of Oslo City of Oslo’s brand is ”The blue green city”City of Oslo is the capital and Global and international trends the western world – are going through athe largest city in Norway with transformation process because this Perhaps the greatest change that has stage is passed. Without the industrialapproximately 500,000 citizens. taken place in City of Oslo over the recent community, the life in cities is becomingCity of Oslo was the first city in decades is the change in the city’s size more attractive. “ and diversity. Today an estimated 140,000the world to introduce a of City of Oslo’s residents are born City of Oslo has formalised internationalparliamentary model of outside of Norway or one or both of their cooperation with the other Nordicgovernment (1986): the City parents are born in another country. Over capitals. But, according to Mr Lae,Council elects a City half of these residents are immigrants “Copenhagen has turned their eyes south,Government (executive body) from non-western countries. City of Oslo while Stockholm and Helsinki look east.”which answers to the City is rapidly becoming a multicultural city. Mr He mentions the cooperation with Lae expects that migration will continue toCouncil, just as a national Gothenburg in Sweden – a city only four be the single most significant global trend hours drive away from City of Oslo andgovernment answer to affect City of Oslo, and predicts that, with similar challenges: “We have anto a national council. We talked “City of Oslo will become an even more especially close cooperation based on ato Erling Lae, who has been the multicultural and heterogeneous city in the common interest in moving the centre ofChief Commissioner and head next 10 years”. gravity in Scandinavia north (fromof City of Oslo’s city The other international trend that engages Copenhagen) and west (from Stockholm,government since 2000. Mr Lae particularly is de-industrialisation. Helsinki).” The cooperation focuses on the areas of transport, culture, business, “It was the growth of the industrial society research and development, education and that in fact created the city. Today City of tourism. Oslo – and many other cities, especially in142 Cities in focus
  • 144. Cities of the future - global competition, local leadershipInternal trends The City of Oslo is a large organisation Priorities for the next decade with approximately 40,000 employees.Increasing urbanisation is a trend affecting The vision for City of Oslo in the municipal This gives both economies of scale andCity of Oslo as the biggest city in Norway, plan 2004 – “City of Oslo towards 2020” – disadvantages. One of the mainbut also as people move within the city sees the city in the future as: challenges is to prevent the developmentborders: “People want to live densely and of an excessive bureaucracy and to • The environmental city, emphasising theCity of Oslo is like a magnet. We expect secure a clear role and share of importance of maintaining City of Oslo’sto have a large increase in population in responsibility: “blue green” distinctiveness adjacent tocentral city areas, while the growth in jobswill be more evenly distributed.“ “The parliamentary model of government the fjord and forest; has positive aspects which we have to • The knowledge city, underlining theThe City of Oslo is experiencing a develop. Political responsibility is firmly competitive advantage of being one ofconstant, stronger and more detailed form placed and it counteracts any tendency to the most well educated people inof central governmental steering through increase bureaucracy. Our model of Europe; andearmarked funds and regulations. The government contributes tocity’s freedom to control its own professionalising the political leadership. • The cultural city, working towards thedevelopment is decreasing as a result of In my opinion politicians should be aim of becoming Europe’s culturalthis trend. strategic in their outlook, we should be capital in 2011, and a grandThe demographic change due to an defining goals, not maintaining individual development and building of culturalageing population is a trend which will interests. In a city like City of Oslo it will institutions in the city including the newbecome more significant in the coming cause problems if the politicians see opera house.decade, when the post-war baby boom themselves as ombudsmen, because itgeneration starts to retire. A more contributes to pulverising the model ofmulticultural City of Oslo also involves government.”social challenges, where the publicservices have to be adjusted to new Consequences for the cityneeds. Urbanisation and peoples’ wish to live in city centre has led to the transformationExternal and internal challenges of many former industrial areas intoMr Lae is concerned that the rest of residential zones. For City of Oslo, theNorway may fear the growth that is term “the city by the fjord” is a metaphorexpected for City of Oslo. He mentions for this transformation, where former dockthat the city council has initiated areas are converted into living andcooperation with surrounding business spaces. The city government ismunicipalities with the aim of achievinggrowth and progress for the greater City planning the construction of 40,000 newof Oslo area. This cooperation is focusing homes over the coming years. At theon establishing a superior area and same time, plans are being discussed totransport strategy for the region, move the university and researchdeveloping cooperation on innovation and communities into the city centre.a competitive business climate,international marketing of the region and a During Mr. Lae’s period as Chiefjoint exploitation of investments in social Commissioner, the City Government ininfrastructure. City of Oslo has pursued a policy where municipal businesses have beenAs a former commissioner for social outsourced to the private sector. “Weservices, Mr Lae is particularly concerned clearly see public-private partnerships asabout the need for a well-functioning a possibility to force investments and tosocial infrastructure. “Cities have always prepare for another pattern of payments.attracted people who are easily excluded But I believe it’s important to have ain transparent societies, and this is onlyreinforced by globalisation.” pragmatic view on the use of PPP and only use it where it gives real value-for- money for the city”, he says.Cities in focus 143
  • 145. PerthInterview with Mr Frank Edwards,Chief Executive Officer of the City of Perth Mr Frank Edwards, Chief Executive Officer, City of Perth, Australia City of PerthPerth is known as the “Heart & Global and international trends Internal trendsSoul of Western Australia”. The global boom and bust cycle of the It is very risky for a major, capital city toEach day more than 100,000 resources sector has a major impact on be reliant on only one industry sector andworkers and visitors commute the economic stability of Perth. Any trend the industry focus of Perth’s business in the sector globally and any changes in community is moving toward a broaderto the city’s 1.75 million square ownership or focus internationally or basis than resources alone.metres of office space. domestically have real implications for businesses in Perth. Perth is facing emerging competition fromWe spoke to Mr Frank other cities in Western Australia, for The international (and national) trend example, Joondalup, Mandurah, andEdwards, Chief Executive toward high, and rising, energy costs is Gosnells.Officer (CEO) of City of Perth having an impact on business in Perth,about the city, and Australia’s both in terms of increased costs for the Currently, there is a lack of cooperationfastest growing local city and also increased demands on the between these cities and Perth. In thegovernment population. resources sector. future, these developing centres will need to work together with Perth in order to Ageing workforce issues affect Perth in effectively decentralise and diversify the same way as they face other cities in business. the world. The problem will deepen as the population as a whole ages, but in Perth is experiencing a skilled worker Western Australia it is also a cyclical shortage and competition for workforce issue. share is intense. There are particular shortages in engineering, financial services, town planning and surveying.144 Cities in focus
  • 146. Cities of the future - global competition, local leadershipThe war for talent is a challenge for most Priorities for the next decade Perth faces a number of significantbusinesses including the City of Perth environmental issues including air and The city of Perth’s vision for the future isitself. water quality. The city aims to ensure that that: “the city of Perth be widely acclaimed the continued development of Perth meetsEnvironmental concerns are a as a city of regional and international the needs of today without compromisingconsiderable issue for Perth and the city significance”. the needs of future generations –has implemented a variety of programmes economically, socially or environmentally.focusing on environmental issues, With the fastest growing population of anyparticularly in relation to water. local government area in Australia, the main challenge for Perth is to provide a sound basis for the expansion ofExternal and internal challenges corporate, retail and entertainmentThe City of Perth is constantly challenged businesses in the city. At the same timeby the need for alignment between the account must be taken of the demographicthree levels of government – local (or city), changes that will occur and the newstate and federal. demands they will create for the city.The final planning authority often rests not The growing city will have increasedwithin the city but with the state demands for social amenities like libraries,government. This issue is felt most keenly senior’s centres and recreational facilitiesin areas of large scale development, while ensuring the needs of low incomereplacement of ageing public infrastructure earners and those with special needs areand railway line sinking. taken into account. Increase in residential living in the city means a greater emphasisThe key financial challenge facing the City will be placed on intracity transport and cityof Perth is to maintain the income it parking.creates. The main income streams arecarparking, which generates approximately Perth’s development will be fuelled by37% of city income and rates which economic growth in the state and new citygenerate around 43%. infrastructure including the $1.5 billion Australian dollar Metro Rail Project.The city of Perth has strong financialmanagement systems in place and It is critical to the future development ofconsiders itself to provide best practice Perth that the city strengthens existingstandards in Australia. Compared with relationships and develops newmany local government bodies, the city of partnerships with state and federalPerth is financially strong and has governments and the private sector incompleted substantial forward planning. order to fund and implement developmentHowever, capital works and building and key projects.projects in the city face industrial relationsissues and significant cost escalation. The City is well placed to attract the growing tourist dollar, with international tourism to Western Australia expected toConsequences/issues for the grow by an average of 7.3% over the nextcity decade. The completion of the PerthPerth is experiencing community demand Convention Exhibition Centre will give thefor extra services not traditionally provided city more options in the high-valueat the local government level. convention market. The city will focus on the development of enhanced tourismTrust and perception are also emerging amenities, including improved transport toissues for the city as the reputation of ensure the continued attraction of the touristlocal government is rather low. The dollar.population also tends to be apatheticabout local government and is onlyinterested in what it’s not delivering.Cities in focus 145
  • 147. PhoenixInterview with Mr Frank Fairbanks,City Manager, City of Phoenix, USA Mr. Frank Fairbanks, the City Manager of the City of Phoenix City Hall, PhoenixThe City of Phoenix is one of Global and international trends The city leadership continues to developthe fastest-growing cities in the its capabilities through Mayor/City Council Among the most significant global and and City Management staffUSA. Phoenix is Arizona’s international trends or issues that will communication and collaboration. This iscapitol and the sixth largest city affect the city over the next 10 years Mr further reinforced by defining and Fairbanks identifies:in the United States, with communicating a consistent set of values,almost 1.5 million residents. • Long term economic stability and a philosophy, attitude and approach. AThe city has won many major dealing with the impacts of growth to further task is to look for ways thatawards, including the Carl keep Phoenix liveable; and diverse city functions can collaborate and innovate, and create a supportive climateBertelsmann Prize, a • Phoenix positioning itself for the future for change.prestigious international with regards to economic development,competition that recognises the transportation, and the environment. Phoenix has developed variousbest-run city government in the programmes that address issues facing the city. Block Watch and Graffiti Bustersworld. Phoenix has been Internal trends are some examples of the programmesidentified as a leader in local The national and local trends that will that are designed to connect people ingovernment management; affect the city in the next decade neighbourhoods and to increase trustparticularly for its commitment according to Mr Fairbanks include: among citizens by encouraging them toto excellence, its focus on • Water resources; make things happen to improve theircustomer satisfaction, and its communities together.high-quality and cost-effective • Public safety; and A Block Watch Advisory Board encouragesservices. • Efforts by federal and state neighbourhood associations and block governments to reduce the city’s watches to network and share ideas, funding and authority. accomplishments and concerns.146 Cities in focus
  • 148. Cities of the future - global competition, local leadershipProviding these networks often gives Consequences for the citypeople a stronger sense of ownership in The key issues that will affect the citytheir neighbourhood, as well as drawing government over the next 10 years are:neighbours together in a common cause.The goals of the Graffiti Busters Programme • population growth;are to remove graffiti within 24 hours of • managing water resourtces;receiving a report from any city resident andto support a zero tolerance approach to • public safety; andgraffiti in neighbourhoods. Graffiti is costly • inter-governmental cooperation.and destructive, and sends a message thatthe community is not concerned about the The city’s strength is expressed in aappearance of its neighbourhoods. comprehensive citywide Seamless Service programme and excellent communicationsExternal and internal challenges between departments. The Seamless Service programme’s mission is to provideAmong the most important external the best possible service to citizens andchallenges that the city of Phoenix will visitors – 24 hours a day. The Seamlessface in addressing the trends and realising Service requires that all city employees arethe government’s vision for the city are: aware of each others’ responsibilities and• Explosive population growth that will competences, that they listen carefully to cause affordability and quality of life residents and that they provide the services challenges; and that citizens need.• The challenge of cultivating sustained A weakness for the city arises from constituent awareness and involvement resource constraints. Recent rounds of on a wide range of issues. budget cuts have been managed well butAnother challenge is that Arizona has one there are limited resources to maintainof the highest school drop-out rates in the much-needed programmes and to investentire country and many of these students in new in Phoenix. This can be seen as asignificant threat to the long-term economic Promotion of the city andprospects for the city. In order to meet the priorities for the next decadechallenge the city government established a According to Mr Frank Fairbanks, the CityPhoenix drop out prevention task force thatconsisted of representatives from the of Phoenix will be promoted througheducation community, community leaders, strong customer service, responsivenessgovernment and business leaders. and interactivity with citizens and constituent groups. These qualities will beThe City of Phoenix has created numerous developed through active outreach by theboards and commissions to address many Mayor, City Council as well as high levelsof the issues it faces. By involving the of citizen participation.public, it is able to understand better theissues that are important to the community. The government seeks to recognise andE-government initiatives aim to get citizens acknowledge its employees, creating trustand customers online, fast track services to and showing that it cares. A supportivethe customers and citizens, to meet atmosphere for innovation continues withincreased expectations around efficient the annual City Employee Excellencecustomer services. Awards recognising the best of the best.The city government keeps residents The city has also received numerousinformed about issues, programmes and national and international honours foractivities in their district through a local innovative city programmes.cable station. Channel 11 is a daily broad-cast of various programmes that highlightissues and events facing the city, publicpolicy choices and human service issues.Cities in focus 147
  • 149. São PauloInterview with Martus Tavares,Secretary for Economy and Planning of the State of São Paulo Martus Tavares, Secretary for Economy and Planning of the State of São Paulo. (Former Minister of Planning) City of São PauloSituated 760m above sea level, expected, the most Global and international trendsthe city of São Paulo, in the cosmopolitan state in South • Greater community involvement; andstate of São Paulo, represents America. With the country’san area of approximately 1500 best infrastructure and a highly • Increased demands on governments by society.km2, consisting of 900 km2 of skilled labour force, São Paulourban area and a rural area of can be called ‘Brazil’s Internal trendsapproximately 600 km2. São locomotive’. • Accelerated urbanisation andPaulo overwhelms the senses conurbation;with its sheer size. With 17million inhabitants, it is the • State modernisation; andlargest city in South America. • More transparency for government actions and state accounts.When describing São Paulo,the superlative form is a must. External and internal challengesIt is the city with the country’s The preparation of long-term plans encompassing the characteristics andlargest population, largest needs, not only of the municipality, butindustrial complex, highest also of the whole metropolitan region iseconomic production, the one the greatest challenge for the managers ofthat receives the largest the major Brazilian cities.number of immigrants and as148 Cities in focus
  • 150. Cities of the future - global competition, local leadershipManagement has become essentially The key external challenge is marketingreactive. Resources are focused on ‘fire- the city, promoting a positive image tofighting’ a range of existing problems. attract and retain talented people, existingLeaders and managers therefore do not business and investment opportunitieshave time to focus on developing a and tourists.strategic plan for the future of their citiesand regions. Priorities for the next decadeThe end of the cycle of hyperinflation and The most urgent issues to be addressedthe consequent economic stability in in the next few years in the major BrazilianBrazil eliminated one of the obstacles to cities are:drawing up a strategic plan for the future.However, the managers of Brazilian cities • Public transport – integration of urban and metropolitan transport systems tostill face political instability, which makeslong-term actions impracticable. increase their geographic coverage; • The expansion of the subway andSome steps have been taken towards railroad networks and the implantationguaranteeing the continuity of strategic of an efficient map to integrate publicplans and projects such as the institutionof a Pluriannual Plan (PPA) covering a transport are urgently needed;four-year period – three years of one • Waste management – modernisation ofadministration plus the first year of the waste process improving collection andnext. But this is not enough. A forum has disposal;to be created to study alternativescapable of guaranteeing the delivery of • Safety and security – because of thelong-term projects. direct impact on city life it is important to establish an integrated approach byThere are, of course, budgetary federal, state and municipal authorities,difficulties, but solving many of the even if the primary responsibility liesproblems confronting Brazilian cities with the federal government;depends on more than simply financialresources. • Improve flood monitoring and reduce risks;The problems often originate in the lack ofan integrated vision, covering the needs • Preservation of the environment; andand characteristics of the whole • The creation of a geo-referencedmetropolitan region. Often, a problem database including issues and servicefaced by one city may involve or have its offerings that can be used as a tool toorigin in a neighbouring area. analyse and draw up a suitable masterplan should also be a priority forConsequences for the city the managers of the major cities.A series of focused actions has to betaken to confront these challenges by Without a vision of the future and a focusbuilding capacity in the following areas: on long-term planning, we will not be able to make best use of the scarce resources• Definition of future scenarios; available. Professional skills in urban and• Urban planning in major conurbations; metropolitan issues, more efficient use of resources and more transparency in• Transparent and efficient management; management practices are essential for• Resource management; and improving the living conditions in big cities• Budget control. in the next few years.Cities in focus 149
  • 151. StockholmInterview with Mr Bosse Sundling,City Manager of City of Stockholm Mr Bosse Sundling, City Manager of City of Stockholm The City of Stockholm, SwedenStockholm County Council’s Stockholm is an exciting but still a safe Global and international trendsdomain covers the whole of capital. It is beautiful, clean and tidy and Increased globel travel means the world is well maintained. It is also a modern city –Stockholm county which has well ahead in terms of IT development (i.e. getting ‘smaller’. Young people in1.8 million inhabitants. The particular are increasingly mobile and Kista). In addition, it has a wide selection travel all over the world. As a result,region is the hub of the of cultural activities (The Pop City 2005, a people are developing a broaderSwedish economy. We met Mr new modern arena for major events). understanding of different cultures.Bosse Sundling, City Manager Environment, health, female emancipation The cities logo and trademark is the Saintof City of Stockholm, and Erik which aims to promote Stockholm as and technical development (ICT) issuesinvited him to share with us his Northern Europe’s most exciting capital. have become increasingly important,observations on the main The city government has worked hard to alongside the problem of the widening disparity between the rich and the poor.trends and challenges that the create a distinctive image of city – with acity faces today and in the rich cultural life, fresh air and clean waterfuture. – (an ecologically-tenable city). Internal trends One of the major trends affecting Stockholm is the provision of welfare. In about 15 to 20 years there will be fewer people of working age than there are today, and an increased number of people depending on welfare. In many sparsely- populated rural districts de-population has had a major impact. This creates the inevitable situation that only a few young people are providing care for several other elderly people. This is fast becoming a150 Cities in focus
  • 152. Cities of the future - global competition, local leadershipnational social problem. Volunteers could Consequences for the city • It is important to find the right way tobe one solution in the future as part of an manage, eg the budget document All these challenges mean that the cityappeal to Swedes’ social responsibility. should be made simpler – by cutting has to be extremely flexible. The elderly population is decreasing, and we are down the document to half and limitingRegional cooperation will also become a having a baby boom. This means that we the number of commissions. We need anmajor feature. Both cities and county have unused premises for geriatric care at even more transparent budget process.administrative provinces will become less the same time as we have too few We have to focus on achieving targetimportant due to modern communications. schools. To prevent such problems in the results and not just comparing resultsThe county administrative provinces will future, we must plan carefully and take with previous years;disappear and will be replaced by another into consideration different alternatives. Instructure. this case, we could use the same geriatric • The city has earmarked a sum of money care premises for preschool and school (SEK 2 billion over 4 years) for theQuality is an important issue. Public activities. general improvement of the councilsector institutions must guarantee a high staff’s qualifications in a specialstandard of service. One way of doing this At the same time, we must be careful in foundation course in competenceis by introducing IT solutions to help new managing transport and logistical issues (Kompetensfonden). We strive to be abusinesses. For example, domestic help to prevent environmental problems. The good employer, offering greatmay be equipped with handheld city council should be organised in such a way so that it is quick to respond to opportunities for all employees tocomputers so that they can visit different challenges and can provide a high quality develop. Also trainee programmes areclients without having to return to their of life for its subjects. We should not shut available. In this area, there are 195‘base’ in between. They can also forward ourselves off from the public. Instead, we different projects aimed at creatingreports and get information via their must be sensitive to the changes around those opportunities; andcomputers. This has resulted in increased us as well as in the world and workefficiency savings. towards creating a city with functional • Recruitment is a very important issue. We will need about 20 per cent more intelligence, able to cope with any modernExternal and internal challenges personnel within the schools and the challenge. social care services during the next tenThe city of Stockholm needs to years. Ideally, the competenceaccommodate two different views: one Priorities for the next decadedriven towards progress and another foundation course will make this easier. Areas that we are focusing on in the shortdriven towards maintenance of the term include:existing status quo. There is underlyingconservatism, as summed up by the • Labour market/integration/emancipationcommon saying ‘things are as they are.’ are some of our overall tasks;Many people are disinclined to changetheir way of thinking on many issues, e.g. • The economy – the priority here is to keep it in balance. It is important tothat geriatric care will invariably costsomething even for the individual. The improve employment and to allayconflict between this conservatism and popular frustration. Another key issue ismore progressive views, which is the how to employ immigrant labournatural product of a vibrant community, effectively;has caused a degree of social tension. • The city has to find new ways ofAt the same time, there is the problem of political promotion. We have tothe generation born in the 1940s leaving approach the citizens directly and thethe labour market. political parties have to sharpen up and change radically. The political system must be made a concern for everyone; • The city must establish new, modern and successful meeting points, eg to set up constructive dialogue with its citizens. We must find ways to encourage democracy through natural means;Cities in focus 151
  • 153. Sydney CityInterview with Clover Moore –Lord Mayor, Sydney City Council Clover Moore, Lord Mayor, City of Sydney City of SydneySydney is Australia’s largest Global and international trends Changing population patterns affectand most densely populated Sydney and the international trend of International trends have a growing migration from rural and suburban areascity. Built around a beautiful influence on the increasingly globalised into cities is clearly reflected in Sydney’snatural harbour, it is bursting community of Sydney. “There are other expansion, particularly in the inner city. cities in which to do business, but peoplewith life, energy and colour. from all over the world are attracted to Sydney, like other cities, is looking forWe spoke with Sydney’s Lord living as well as working in Sydney,” the solutions to issues associated with anMayor, Clover Moore, about its Lord Mayor said. ageing population and changingunique mix of history and her population demographics. Business visitors and tourists are crucialvision for the future. elements of Sydney’s economic life and the city focus is on maintaining growth in Internal trends numbers as well as attracting a diverse The number of workers, residents and mix of international and regional visitors. visitors to the central business district of Sydney rose dramatically through the The City of Sydney seeks to achieve 1990s. The growth continues today and commercial sustainability by creating a has increased demands on public liveable, vibrant city that is globally transport and changed the car, bus, rail competitive while maintaining its regional mix. There is also a growing demand for flavour. It also aims to foster a strong sense pedestrian and bicycle access to and of community and belonging alongside the from the city. expansion of international businesses.152 Cities in focus
  • 154. Cities of the future - global competition, local leadershipThere is a marked escalation in the In order for the city of Sydney to achieve Priorities for the next decadenumber of residents of central Sydney, its vision for Sydney’s future it must work The Lord Mayor’s vision for Sydney is a citymost notably an increase in families with other councils in Sydney as well as that is “prosperous, vibrant and liveable”.settling in the inner city. state and federal governments. This is of particular importance to issues like The city aims to create a tolerant andIn order to cater to this increasingly Sydney International Airport, Sydney diverse city with compassionate solutionsurbanised population and to attract new Harbour and major developments on to complex inner city problems.residents, The City of Sydney publicly owned encouraging more childcare places and The priorities for the next decade are:educational services, creating improvedleisure and community facilities and Issues and consequences • Leadership and participation;adopting a more strategic approach to the The increasingly global nature of the city • Quality urban environments withcity’s public domain. means inhabitants of Sydney are exposed consistent planning controls; to a more expansive lifestyle than in other • Economic growth and developmentThe Lord Mayor explained that the City of cities of Australia. The city is respondingSydney tailors its policies toward a ‘City • Environmental leadership; to this with innovative public facilitiesof Villages’ to include the diverse needs of • Community and social equity; including signature aquatic centres,its constituency. refurbished hotels and shopping centres • Accessible, integrated and affordable and more accessible harbour foreshore transport; andInternal and external challenges recreational areas. • An improved public domain includingBalancing the needs of residential and parks, foreshores and leisure development in the city and The city of Sydney’s boundaries havecreating the right mix of retail, The Lord Mayor believes it is a golden grown over the last few years torecreational, entertainment and tourist age for the city, “Sydney has political and incorporate areas surrounding the centralfacilities is an ongoing challenge for the economic stability combined with vision, business district. The city is now able toCity of Sydney. In providing for energy and commitment to the future.” provide increased services to a larger andsustainable growth, a balance must be more diverse population and is in thestruck between economic, social, cultural process of creating strategic planningand environmental dimensions. goals for the enlarged city.The appropriate mix of integrated Overhauling planning instruments andtransport options across the city is critical,as is transportation in and out of the city creating a unified city plan is a key goal ofitself. The city is also conscious of the the city and will provide more certainty toneed to preserve and enhance the distinct the community as well as more strategiccharacter of Sydney and protect the value decision making and transparency ofof the city’s rich natural, cultural and government.urban heritage. The City is conscious of the need toA tri-tiered system of government strategically manage growth, particularly inoperates in Australia, consisting of the key areas like the city to airport corridor andlocal tier (City Council), a state to ensure that development isgovernment and the Commonwealth environmentally as well as economically(Federal) government. This system means sustainable.the city is not responsible for matters likepublic transport, but acts as champion forthe interests of the central businessdistrict and its surrounds.Cities in focus 153
  • 155. Sydney StateInterview with The Hon. Robert (Bob) John Carr, MPFormer Premier, Minister for the Arts, and Minister for Citizenship, New South Wales* Hon. Bob Carr, Ex-Premier, New South Wales Sydney HarbourSydney is the capital of New Global and international trends the proportion of people aged over 65South Wales (NSW) and a living in Sydney will increase from the Growth in the South-East Asian current 1 in 8 to 1 in 3.thriving international city of economies has created clearmore than four million opportunities for Sydney as a leading city “Environmental issues like global in the Asia-Pacific region. Sydney hasinhabitants. warming, engage the city, as the become both an international and an community seeks alternatives to internationalised city. “We don’t think of traditional energy sources. Increasing oilWe spoke with The Hon. Bob ourselves as competing with other cities prices and the impact of rising costs forCarr, the Former Premier of in Australia, but with cities like Singapore. trade are practical concerns for Sydney,New South Wales about the Shanghai, San Francisco and Vancouver” as is the threat of terrorism” says Mr today and the Sydney of says Ex-Premier Bob Carr.tomorrow. International migration and the global Internal trends forces which impact population Sydney is justifiably proud of its robust movements are key influences of economy. It is a regional centre for Sydney’s growth strategies and the city’s international business, the highest value evolving demographics. International generating city in Australia and has an immigration numbers are set federally, but unemployment rate below that of the Sydney continues to attract the best and national average. to benefit from immigrants’ business and linguistic skills. “Our cultural diversity is a “Maintaining our economic competitiveness great asset”, says Mr Carr. Immigration is is critical. Our advantage is the relatively low also a possible solution to the cost of business real estate and our skilled international issue of the ageing personnel give us a great advantage in the population. By 2031, it is projected that region,” says Bob Carr.* The current Premier of New South Wales is Morris Iemma.154 Cities in focus
  • 156. Cities of the future - global competition, local leadershipThe management of future urban growth A cooperative working relationship The NSW Government is committed towhich anticipates demographic changes between the state government and the ensuring that Sydney continues as thewhile maintaining the valuable landscapes Commonwealth government is seen as most robust economy in Australia. It willwill be a challenge for Sydney. Long term crucial if NSW is to realise its vision for focus on manufacturing, transport,projections suggest the population of Sydney. For example, despite NSW’s storage and distribution activities which commitment to reducing greenhouse are located in industrial areas in WesternGreater Sydney could grow from 4.1 million gases, it is restricted by the refusal of the Sydney, partly due to the expansion of theto 5 million by 2031. The population trend Commonwealth Government to sign the motorway networks.requires Sydney to consider how best to Kyoto Protocol. On the positive side, theredistribute jobs to the western suburbs, are many projects on which theaddress housing needs and create a governments work cooperatively includingbalance between road and public transport. high-profile international conferences.External and internal challenges Consequences/issues for the“Our challenges are those of growth,” citysummarises Bob Carr. Sydney faces thesechallenges head on in the areas of public The State Government is developing atransport, housing, energy, healthcare Metropolitan Strategy which will guide(particularly increasing health costs linked growth and change in the Sydneywith an ageing population) and Metropolitan Area over the next 30 years.maintaining quality public education. It responds to the issues facing Sydney and includes a plan for balanced growthThe Ex-Premier believes, “the scarcity of within natural resources constraints.natural resources, particularly water is achallenge, and the break-up of the Water and power are two of the majorSydney water monopoly in new urban issues facing Sydney going forward. Therelease areas is one strategy designed to state government has responded with theprovoke innovation. Employment and the Metropolitan Water Plan which is beingemployment mix are also concerns as implemented to chart the course towardstraditional industries like manufacturing a sustainable and secure water systemare overtaken by growth industries suchas business and personal services. The and the Energy Directions White Papercity faces skills shortages in trades such will set clear policies for the carpentry, metal engineering,electronics and construction.” Priorities for the next decade Aside from the critical concerns of waterTransportation is a key issue for Sydney. and power, Bob Carr says, “a priority for“A major part of our transportation plan is Sydney is the implementation ofthe $2.5 billion Australian dollar project for improvements to the rail network in orderuntangling the rail network and new rail to provide robust reliability as well asrolling stock,” says Bob Carr. safety expectations.The state government is focused on The political and economic stability ofdeveloping and maintaining solid working Sydney ensures it will continue to be onerelationships with organisations in the of the lowest risk business environmentsprivate sector, including those who own in the Asia Pacific. Its natural beauty andmajor infrastructure assets like Sydney’s world-class facilities guarantees it will alsoairport and arterial roads. Bob Carr says, continue to be a world-class tourist“public-private partnerships are working. destination.”We want a cooperative relationship andwe want ventures to be successful. Butwe also want companies to contribute tothe necessary infrastructure of the city.”Cities in focus 155
  • 157. Mr. David Miller, Mayor, City of TorTorontoInterview Mr David Miller,Mayor, City of Toronto Mr. David Miller, Mayor, City of Toronto Toronto, a “global village” of 4.7 million people.Toronto is Canadas largest Toronto’s thousands of Global and international trendscity, the centre of the fifth university and college students All mayors of global cities around thelargest city region in North bring a special energy and world are pioneers facing the uniqueAmerica and one of the most enthusiasm that provides the challenge that flows from the ever- increasing scale of urbanisation and fromethnically diverse in the world, city with a palpable vibrancy. the constant pressure of globalisation.representing virtually every And more than 1 million people This means that, for example in Canadacountry in the world. Attracting from all over the world visit the all mayors are pioneering new alliancesbetween 70,000 to 80,000 new city on the edge of Lake and changing historical arrangements thatimmigrants each year, about Ontario each year. focus on the need for power sharing and50% of the Greater Toronto revenue sharing agreements among all levels of government.Areas growth results from We spoke with His Worshipinternational migration. Toronto Mayor David Miller about his International terrorism is an issue thatis in many ways both a hub of vision for Toronto and about remains a challenge to all, and yetMcLuhan’s global village in the challenges his city faces in individuals look to cities to protect them and their families. Learning to mobilisefinancial services, the future. local, regional and national resources tocommunications and the cope with such threats is a relativelycreative and performing arts recent yet clearly critical challenge.and, at the same time, it is avillage of the globe, with peoplefrom virtually every country ofthe world calling Toronto home.156 Cities in focus
  • 158. ronto Cities of the future - global competition, local leadership Internal trends Current governance arrangements within Priorities for the next decade Canada represent a challenge to all cities One major challenge is democratic There is no doubt that economic trends in Canada. There is a clear mismatch renewal in large-scale municipal are reinforcing societal changes and that between local government accountability organisations, since people look to the as national boundaries become less and the expectations of community city council to solve problems and help critical for major jurisdictions around the residents for a responsive government deal with issues that affect their lives and globe, cities will become more significant. looking after their interests. This challenge their neighbourhoods in a meaningful and is exacerbated by the fiscal imbalance The 21st Century belongs to the cities of direct way. Toronto continues to enjoy a between local government responsibility the world. We can see in Canada that rich diversity of cultural neighbourhoods. for front line social programmes and the over the past 100 years we have moved The truly amasing thing is that these fiscal resources and fiscal capacity to from a rural agrarian economy to a disparate cultures mix together in ways address those responsibilities. People of dynamic global reach economy based, in you simply cannot find anywhere else in the City of Toronto know that the buck our case, on financial services, the world. Each cultural district is made stops here and so the challenge is to communications, information technology, up of a mix of people from different make sure that the fiscal buck stops here media production and manufacturing and cultures, speaking different languages. to meet that responsibility. assembly operations with world mandates Language, culture and colour are symbols of pride in our multicultural city. for products and services. These Toronto has a history of welcoming the economic activities are based world to join this global village. The This trend to greater diversity seems set predominantly in cities. Our experience challenge is to build on that tradition and to continue for the foreseeable future. has shown that our nation’s economic to let it renew and energise the Toronto of health is critically dependent on its cities. tomorrow. External and internal challenges For example during the SARS outbreak two years ago, when Toronto got sick, the Major challenges facing the City of Consequences for the city whole country caught a cold. It is Toronto include environmental issues such These challenges mean that we are the estimated that the national economic as water quality of the Great Lakes. As a government of choice for the people of growth in Canada was reduced by more waterfront city Toronto has a clear interest this city. They look to us to make a real than 1 per cent as a result. in ensuring the quality and accessibility of difference in their neighbourhoods and its drinking water supply. Great Lakes Toronto is a city that benefits from a vital their lives. They look to us to actually water quality is a continental issue and civic engagement of people from all walks solve problems, to make Toronto a better Toronto will play a role that extends of life, new and old Canadians and that is place in which to live, work and raise a beyond its geographic boundaries. what is making Toronto a great city. We family, and they want to be engaged in want to share that best practice with other Toronto continues to do what it can to that process. This is our commitment and cities around the world. protect and preserve a clean environment it means that we must re-engage the but ultimately these issues can only be residents of Toronto with their city. The We want to learn from others as well. For successfully addressed in concert with people of Toronto are optimistic, full of example, Porto Alegre is the leader in our local, provincial, national and energy and ready to do what it takes to participatory budgeting. Toronto has continental neighbours; an immensely make their city thrive. Over the past year achieved one of the highest standards of challenging situation in which the people we have held two “Listening to Toronto” engaging its residents in its processes. of the City of Toronto expect their sessions. More than two thousand people government to be active players. participated in helping set the city’s priorities. That is an astonishing number Public transit operations and of people to come out on their own time infrastructure are the first answers on on Saturday and Sunday afternoons and most individuals’ minds when the issue of this shows that people really want to be a what to do to improve air quality and part of municipal government. This is our transportation arises. Yet, frustratingly tradition and it is our strength in Toronto – there is not a full recognition of the critical people really welcome participation and role that public transit plays at the local, actively and respectively engage in the regional and even national level. Public process. transit is delivered locally and local governments need the resource base to deliver in that role. Cities in focus 157
  • 159. City of Tshwane Metropolitan MunicipalityInterview with Mr Blake Mosley-Lefatola,Municipal Manager, City of Tshwane Mr. Blake Mosley-Lefatola, Principle Manager, City of Tshwane City of Tshwane, South AfricaThe administrative capital of The nicest time to visit is Global and international trendsSouth Africa, Pretoria/Tshwane spring, when in October more Globalisation has resulted in everlies about 50 km north of than 70,000 Jacaranda trees increasing competition for investment,Johannesburg with a are in full bloom. Then the which is no longer limited to national boundaries. The major environmentalpopulation of over 2.2 million. whole town is one big purple- challenges facing the planet has seenIt is quite easy for the visitor to coloured and sweet-smelling environmental protection groups gainingfind his or her way through the sea of blossoms. The exotic prominence, and in the process thecity, which is laid out like a trees were imported from South capability to exert ever-increasingchess board. Pretoria lies America some 100 years ago pressure on cities.1367m above sea level and is and gave the town its A global world also means that the worldsurrounded by protecting nickname: "Jacaranda City." eco-nomic growth rate has the potentialmountains. The climate is to limit or boost local GDP.subtropical with hot, wetsummers and relatively mild, Internal trendsdry winters In line with the rest of the country, increased unemployment, urbanisation and HIV and Aids pose significant challenges to the city, as do crime and transportation. The City of Tshwane Metropolitan Municipality (CTMM) is also seeing an influx of people from neighbouring coun-tries, often illegally.158 Cities in focus
  • 160. Cities of the future - global competition, local leadershipCoupled to the social challenges, a lack of In order to address these challenges, the Openness and transparency is some ofsuf-ficient financial resources to maintain city has developed a City Development the values and attributes of the CTMMexisting infrastructure and eradicate Strategy as an instrument of intervention. and this will require a citizen engagementservice delivery backlogs, hampers With a 20 year vision driven by the process that is credible.development. National restructuring Muncipal Manager, it provides ainitiatives, among them the establishment framework for economic growth, making Citizens can only understand theof Regional Electricity Distributors (REDs), the city sustainable and equitable through challenges the city face if they aremay eventually have an impact on the pro-poor policies, strategies and action. In informed and it is also of importance tocities income. addition to this strategy, a long-term obtain the needs and priorities for service financial strategy has been developed as delivery from citizens as these will directHuman resource development and a financial plan to achieve the desired the strategies that the municipalitycapacity building remains a significant outcome. developed.challenge. The vision of the city is to be the leading Successful cities do not simply happen, Afri-can capital city of excellence, one they are the result of deliberate actions.External and internal challenges Creating successful cities requires careful that empowers the community to prosperEver increasing governance complexity planning and integrated efforts in key in a safe and healthy environment. Theand legislative changes exert significant areas that are identified with all vision was develo-ped through anpressure on the city’s resources. Low stakeholders, and takes into account the interactive process that involved the locallevels of payment for services by needs of the people and economy. To politicians and the senior mana-gement ofconsumers continue to strain the city’s achieve all of this requires a well the municipality and was communicatedfinancial resources. developed intergrated development plan to all stakeholders through community meetings. that will ensure that the needs of theThe city does benefit from a stable political communities are attended to.and workforce environment and must findways to leverage the opportunity to develop Promotion of the city andCTMM into the intellectual capital of Africa. priorities for the next decadeThe foundations are there: the city hosts The city has developed a marketingsome of the largest and most important strategy that focuses on the variousuniversities on the continent and is home to segments in the market. The city ismost of the research institutions in South promoted through various publications,Africa. The City is also host to all Embassies events, Mayoral events and cam-paigns,and foreign missions in South Africa. attendance of international and natio-nalLack of financial, human resource and tourism events. The brand for the city is:skills capacity is the single largest A City at work and a City on track. Thechallenge facing the city and threatening brand of the city was an initiative by theits sustainability. Executive Mayor of the CTMM.On the positive side the city possesses a It is a legislative requirement that thesta-ble institutional framework (albeit not municipality must make public the annualthe most optimal one), a currently sound budget and invite communities to submitfinancial position and a well defined vision representations, which the Mayor mustand city strategy. respond to. The CTMM has developed a public participation process through aConsequences for the city ward committee system where communities have the opportunity toFailure to respond to the challenges will interact with the municipality. Theinevi-tably threaten the financial viability of Executive Mayor also on a regular basisthe city, resulting in increased service held “IMBIZO’S” com-munity meetings tocosts. This will deter investors and listen to members of the community. Theinfluence local economic growth interaction with communities is going tonegatively. Eventually the city will be be a critical aspect for the CTMM in theunable to provide all citizens with access next 10 years as the buy-in into the cityto services, which has serious social and development strategy will be required forpolitical consequences. the success thereof.Cities in focus 159
  • 161. VancouverInterview with His Worship, Larry Campbell,Mayor, City of Vancouver His Worship, Larry Campbell, Mayor, City of Vancouver photo credit: City of VancouverVancouver is surrounded by Vancouver is home to a Global and international trendswater on three sides and multitude of cultures and The emergence of Pacific-Rim economiesoverlooked by the Coast Range languages from around the as powerful forces to be reckoned with,– mountains that rise abruptly world. The City of Vancouver as opportunities for development as well as challenges to manage ensureto more than 1,500 m. Its values this diversity, and Vancouver is well placed to preserve andclimate is one of the mildest in considers it a source of our enhances its special qualities ofCanada. Archaeological strength, vitality and prosperity. independence, welcoming and sharingevidence shows that coastal Vancouver is the largest city in that makes it unique.Indians had settled the the Province of British • The US, our biggest trading partner,Vancouver area by 500 BC. Columbia, and the third largest may be going into a silo mode, and this in Canada. Vancouver, will force us to look elsewhere forWith a present population of Canada’s jewel city on the trading partners. Other nations areabout 560,000 (estimated), Pacfic Rim, already benefits encountering the same thing;Vancouver lies in a region of from its special relationships • China will be important for Vancouvermore than 2 million people. with the global cities: Los and the rest of Canada. Instead of silos Angeles; Guangzhou; we need to look outward, be more open Yokohama; Edinburgh; and and have less protectionism; Odessa. • Environmental issues, especially global warming, are not unique to Vancouver but are critical to maintaining the Vancouver’s quality of life; and160 Cities in focus
  • 162. Cities of the future - global competition, local leadership• Vancouver is experiencing an economic External and internal challenges Vancouver plays a special role in British boom provided by the international Columbia and Canada and the senior Vancouver is a great city, but if we are not focus of the 2010 Winter Olympic levels of government are beginning to careful we could lose everything we have games. We will all be challenged to understand that special role. Our Prime that contributes to our unique quality of welcome the world while maintaining all Minister maintains relationships directly life here in the city. In particular, we need that is special about our city. with the mayors of major cities. to solve our transit issues and reduce green house gas emissions to protect the Concrete changes to powers andInternal trends environment. resources are needed to enableMajor internal challenges facing the city of Vancouver to fulfill its role and vision that Increased population density bringsVancouver include: has been created with the broadest of change: fewer private gardens, less green• Sustainable development. We must have public participation. space, and other changes (some less a mix of all strata of income levels in our desirable). Vancouverites don’t all see this city. This may mean subsidies in some as a big city – because it does not feel Consequences for the city cases, for example housing. We need to like one when you live here. Frankly, I These challenges mean that Vancouver increase the variety and affordability of believe that is what many people love must: housing in the city of Vancouver; about this great city of Vancouver. World travel, and my 20 years as a coroner, • Recognise that the 2010 Winter• Greater population density beyond the Olympics are having a big impact on downtown core – the present trend and gives me a somewhat different perspective. Vancouver is a global city, Vancouver – bigger than perhaps many model of single homes on large lots is make no mistake about it. thought. People all over are talking and not sustainable; wanting to come here to see what it is• Transit issues – both in the city and the Our regional governance structure needs all about. They are having a huge region – are growing each day. This improvement if it is to serve the needs of impact on bringing recognition to issue is one that confronts individuals the people of the Greater Vancouver Vancouver; almost everyday and so it is a priority to Region. It might work better to look at the be addressed; regions north of the Fraser River and • Continue to take a leadership role within south separately. the region, particularly when dealing• Retention, and growth of our industrial with transit issues, environmental issues land base, especially the Port of The ideology in our regional municipalities and governance issues to ensure that Vancouver, is an issue that must also be must change. All the infrastructure and the unique characteristics that make our addressed. After all, historically that is services one sees in the dense downtown city and its surrounding region so why Vancouver came to exist; core cannot be supported by single family liveable are preserved, protected and• Environmental responsibility homes on quarter acre lots. enriched; (stewardship), especially in greenhouse It seems that cities can talk together more gas emissions. We need to improve the • Continue to ensure that the city respects easily than many nations. On my recent and strengthens its neighbourhoods, the environment while at the same time visit to Beijing we spoke about pollution, diversifying our parks and public places; basic building blocks of any great city the Olympics Games, other ideas of around the world;• Proper transportation is critical, both for common interest to our two global cities. the city and region. This means putting As mayors we are able to freely share • Strengthen Vancouver’s role in public transit ahead of cars. Vancouver ideas and offer assistance at the city level economic development, especially must take a leadership position in the around the globe; and we do. given its position as Canada’s Jewel region and the nation. We simply have City of the Pacific Rim; and I believe that cities have moved beyond to reduce reliance on the automobile in traditional boundaries into economic • By no means last, welcome visitors and the city and Greater Vancouver Region; policy and governance issues that affect new residents from around the world• We need to strengthen our their nations and the world. with open arms and warm hearts to neighbourhood centres, improve make sure they feel that special community safety and better target our For example, I belong to a group called Vancouver welcome from the first community services; and Mayors for Peace. As the organisation’s moment they set foot on our soil. Our name suggests, mayors of global cities• We must make sure that we involve the people are, after all, our greatest source are tackling issues that are beyond the people of Vancouver in the process of of strength, vitality and prosperity for traditional range of city issues. We are redirecting resources as we set our uniquely positioned to bring influence to the future. priorities together. global issues; and so we do.Cities in focus 161
  • 163. ValenciaInterview with Juan Eduardo Santón,Director of Innovation and Society of the City of Valencia Ms. Rita Barberá Nolla, Mayor of Valencia, and Mr. Juan Eduardo Santón Moreno, Director of Innovation and the Information Society, ValenciaApproximately 800,000 citizens Global and international trends Internal trendslive in Valencia the In the era of globalisation, network One important internal trend is ethnicthird largest city in Spain. management, and the information and diversity and the management of multi-Almost 90,000 students are knowledge society, the emerging, culturalism that comes naturally to a city fundamental role played by cities as nodal undergoing major growth throughregistered at Valencia points for the exchange of economic migratory movements. Additionally, we areuniversities and 1.1 million flows, people, and information in the going to see phenomena such as thetourists from around the world world system has been widely recognised. increase in the powers of regionalvisited the city in 2004. According to Juan Eduardo, the challenge governments and, accordingly, of the facing Valencia in this context is to be municipalities, and even the creation ofWe spoke to Juan Eduardo capable of capturing and retaining these greater spaces for private initiative. flows, and reinforcing its importance inSantón, Director of Innovation this international system of cities or in its Internal and external challengesand the Information Society of own system of cities of reference.Valencia and spokesman for From an internal point of view there is a The city of Valencia must aim its efforts at series of challenges such as: thethe Strategies and attracting companies, new economic availability of qualified personnel; easyDevelopment Centre of access to markets’, suppliers and activities, the head offices of internationalValencia (CE&D) a body created institutions, as well as improving the consumers; access to transport links toby the City Council of Valencia quality of life of its citizens. other cities; the development of qualityand made up of the city’s major telecommunications networks;economic and social agents. commercial real estate prices; the availability of office space; urban mobility; quality of life of employees and environmental quality. These are points that the City Council of Valencia is striving to improve.162 Cities in focus
  • 164. Cities of the future - global competition, local leadershipThe most important external challenge, Consequences for the cityafter Valencia was named as host city for New urban governance arrangementsthe 2007 Americas Cup, has been how to have put in place a new form ofcapitalise on the media-related, economicand social impacts of an event of this government that broadens the challengenature. The city also faces the need to to traditional politics. The newundertake activities complementary to the arrangemennts encourage partnershipAmericas Cup aimed at achieving a higher and joint action between different sociallevel of economic and social and institutional agents.development. To do so, the CE&D has setup three projects: The government recognises its role in building public interest and consensus• Marketing the city in collaboration with amongst citizens and businesses to plan business groups, institutions and and deliver services to the public. universities, to present the city as a place to create, invest, visit and live in, Priorities for the next decade addressed especially to technologically The maximum priority of the CE&D for the orientated and advances services next decade is to continue the progress of companies; the city throughout the period from 2005-• Development of a culture involving the 2015. In this context, the CE&D is working citys’ inhabitants, which can give on setting a strategy for this period by consistency to a feeling of belonging identifying the main projects for 2007- and trust in the city’s future, facilitate 2015. In other words, the idea is to the positive development of the project, promote and strengthen a culture of and, especially, “unleash” skills and participation amongst the main agents in progressive energy in all areas; and the city and the inhabitants in general, based on the presentation of an initial• Hosting the Americas Cup, advance in strategy that will be debated, expanded, welfare for all, making sure that the and agreed by a wide majority of citizens benefits for the city reach everyone and through a broad participatory process. foster international solidarity. This preliminary strategic approach includes the vision of the city, “TowardsAdditionally, in order to give continuity to the City of the New Renaissance ofthe city’s progress during the period from Humanism in the Info-global Era”, and six2004-2007 and 2007-2015, the CE&D strategic axes that correspond to theplans to undertake the following projects: areas in which a city wishes to make progress:• Tourism 2007: in order to expand what Valencia has to offer as a city of culture, • City of the Knowledge Economy; conventions and business; • Mediterranean Orientation Centre;• Info-Investment: in order to provide information by economic sector and • City of Urban Development and their investment opportunities; European Culture;• Centre for Fostering the Knowledge • City that Strengthens the Independent Economy: to foster the creation of Solidarity of All; and companies in the sectors closest to the • Benchmark City for New Urban knowledge economy and to provide Governance. opportunities to all in order to access information and knowledge technologies; and• Support for key infrastructural projects.Cities in focus 163
  • 165. ViennaInterview with Mr Josef Kramhöller,Chief Financial Clerk of Vienna Mr Josef Kramhöller, Chief Financial Clerk of Vienna City of ViennaVienna is not only the largest He pointed out that the city is Global and international trendscity in Austria but also its strictly regulated by central European enlargement in 2004 had, andcapital with about 1.7 million government - with strict fiscal still has, a significant impact on Vienna.inhabitants. Due to its rules and a strong focus on the As a result of its geographical location and historical background, the city is ageographical location in the cost structure of ther city melting pot of citizens from new and oldeastern part of the country and administration and services. member states, who increasinglyits historical development commute across borders. Due to different(Austro-Hungarian Monarchy), However, the key issue for the cost levels between Austria and the newthe city is seen as the gateway city administration is to ensure member states, outsourcing andto Central and Eastern Europe that the basic needs of every relocation will increasingly take place. This is especially likely with the migration of(CEE). citizen will be satisfied in all multinational enterprises to cheaper areas and domains. Eastern European locations and is a keyWe talked to Mr Josef issue for Vienna. Other trends are theKramhöller, Chief Financial ageing population and weakening familyClerk of Vienna, and ties, which result in a growing municipalinterviewed him about the budget for social help and welfare as the need for more residential homes forfuture challenges and the elderly and nursing homes rises.consequences for his city.164 Cities in focus
  • 166. Cities of the future - global competition, local leadershipInternal trends The related risks are a possible downturn Priorities for the next decade in the housing market and affordability.For Vienna, it is increasingly necessary to The following are major priorities and Vienna’s strength is its sound financialmaintain or even expand the public visions for Vienna for the next decade, base, especially compared to othertransport network as more and more which were developed in the city federal states. (Note: Vienna is not onlycitizens of Vienna will not be able to afford development plan and finalised in detail the capital of Austria but also represents by experts in the administration accordingtheir own car and the proportion of elderly an individual federal state). to politically predetermined requirements:people in the population is growing. Thus,about EUR 3.6B is being spent on the 4th As the predominant urban centre in Austria, • Vienna will become an example ofexpansion stage of the subway to develop Vienna attracts many immigrants from environmental protection within its national and inter-national territories, manyperipheral areas. financial possibilities (e.g. construction of whom are financially dependent on the of a third incineration plant);Furthermore, the educational level of the state, causing increased pressures on theViennese population is very high, resulting cities finances and services. Furthermore, • Vienna stands for a balance betweenin an excess supply of highly-qualified the responsibility for the construction and affordability and high standards maintenance of federal roads was regarding housing stock (e.g. thelabour. transferred from the federal authorities to avoidance of slums and ghettos; aNew practices in public management, e.g. each federal state. Consequently, the social mix on the one hand butthe introduction of flatter management respective roads have to be financed by the attracting socially stable and financiallystructures are aimed at improving the city of Vienna as the federal authorities will sound inhabitants);performance and efficiency of the municipal not pay beyond 2008. • Vienna city council aims to create andadministration. However, a key issue maintain employment (e.g. establishingregarding personnel policy in administration Meeting the challenges a foundation, which encourages thein Austria is the legally limitations on The city of Vienna is intensifying its efforts settlement of high-tech enterprises);reducing staff numbers. Many organisations to motivate its citizens to engage inhave are over-staffed, which of course municipal issues. These efforts include • Vienna will achieve a permanentlymeans inflated costs. Due to the social placing a post-box for complaints in the balanced administrative budget (e.g.function of local authorities, rationalisation city hall, special complaint-oriented engaging in Public Private Partnerships departments, special services for citizens only if the realisation of the project isgoals are sometimes not pursued as and increasingly citizen-friendly impossible otherwise); andstringently as in the private sector. administrative processes. Furthermore, the municipal administration will become more • Vienna is to outsource tasks only whenExternal and internal challenges decentralised. In general, the population economically positive effects will beThe two major challenges for the city are regards Vienna as a city with a well-working maintain the current high educational and functioning administration.standards and to attract internationalenterprises to keep their production sites Consequences for the cityin Vienna. In this context, public In regular negotiations with the federalprocurement law in Austria is regarded as authorities the city often has a relativelyconservative, with strict interpretations. weak position. The Austrian FinancialFurthermore, ongoing outsourcing creates Constitution Act assigned significanta more liberal entrance to the market as competencies to the federal authorities,seen with the outsourcing of museums which, for instance, are now allowed toand the Stadtwerke Holding AG demand 35% cost contribution when(municipal utilities). international organisations are settled inWe see major opportunities for Vienna Vienna. Regarding education, theinclude: implementation of the legally required• developing its housing stock; minimum number of pupils per class, would lead to laying off significant• playing a key role as an administrative numbers of teachers, thus contradicting centre for companies active in CEE the city’s intentions and visions. countries; and• attracting high-tech companies.Cities in focus 165
  • 167. WarsawInterview with Mr Slawomir Skrzypek,Deputy Mayor, City of Warsaw Mr. Slawomir Skrzypek, Deputy Mayor of the City of Warsaw City of WarsawWarsaw, the capital of Poland We talked to Slawomir Skrzypek, Global and international trendsand its largest city, is located the Deputy Mayor of Warsaw The event that has and will have theon both sides of Vistula river, about the future challenges and greatest impact on Warsaw is theapproximately 350 kilometres their consequences on the city. enlargement of the European Union. Poland’s accession to the EU in May 2004from both the Carpathian His motto for the coming years not only made Warsaw face newmountains and the Baltic Sea. is making Warsaw not only an challenges but has also createdIts population is estimated at open and friendly city but also a unprecedented opportunities for the city.almost 1.7 million with an urban city that is comfortable and full For Warsaw – a city chaotically rebuiltagglomeration of approximately of prospects, and one that from ruins – the financial possibilities2.4 million people. The city, people want to live and work in. offered by aid funds are enormous. Furthermore, the use of European aidalso the capital of Masovian funds offers a major chance to resolveVoivodship, is home to many many infrastructural and transportindustries (manufacturing, steel, problems, and Warsaw has alreadyelectrical engineering, embarked on some of these initiatives.automotive), and comprises 73 Our long-term aim is to increase Warsaw’shigher education institutions role in Europe. The capital city of Polandand over 30 theatres. should be one of the ten most important European cities, but to achieve this will be a long and difficult process. Currently, we compete with local centres, i.e. Prague and Budapest.166 Cities in focus
  • 168. Cities of the future - global competition, local leadershipWe are also carefully observing what is using its services may in future lead to External and internal challengesgoing on to the east of Poland. All the many problems, the first and foremostformer USSR Republics represent an being financial problems, as nearly 30% – consequences for the cityenormous market for Poland and the of personal income taxes are consumed The major external challenges of the cityEuropean Union. The city of Warsaw sees by the budget. Thus, there is a significant concern the construction of the road andits future role as a bridge between the EU difference between the number of people highway system (realised by the Generaland Eastern Europe, as a gateway for actually using the city’s infrastructure and Directorate for State Roads andoperations in the east, including the the number of taxpayers financing it. Highways), including the Warsaw ringUkraine. road. Additionally, the “equalising subsidy” hasFurthermore, global events are developing a large impact on the capital city’s The major internal challenges arein such a way that it seems necessary to budget. Due to high taxes, Warsaw pays addressing the land ownership issues inconsider strengthening the security an enormous contribution to the state Warsaw and using the well-developedmeasures in the city. This relates primarily budget for the development of the poorer train communication network in the preparing the citizens of Warsaw for regions, amounting to roughly, PLN 470 A SWOT analysis is the next step aftercrisis situations which are related to million per annum. This type of “Robin preparing the Report on the State of theglobal terrorism. Hood” contribution significantly reduces City in developing the Strategy for the the city’s investment capabilities. Development of Warsaw until 2020.Internal trends The population structure by level ofDemographic processes will probably education has a significant impact on the Priorities for the next decadehave the largest impact on the future city’s future character as well. The share The city of Warsaw is in the process ofdevelopment of Warsaw. In Warsaw we of people with a university-level education preparing a development strategy. Thecan already see the processes typical for in Warsaw is the highest in Poland (24%); document will comprise the period up tolarge cities taking place, e.g. de- it is also rather high compared to other year 2020.urbanisation. The most recent Central European cities. Therefore we areStatistical Office forecast to the year 2030 counting on the local population to enable Five strategic goals have been set:states that the number of people living Warsaw to draw investors looking forwithin the boundaries of Warsaw will • Improving quality of life and security of highly qualified staff.decrease. At the same time, there is Warsaw citizens;increased migration to Warsaw of people The comparatively good situation in the • Strengthening the citizens’ sense ofseeking to make a new life. Currently, Warsaw labour market is deepening the identity by cultivation of tradition,Warsaw is a city where it is relatively easy already huge differences in the standard culture development and stimulation ofto find a job, therefore people from all of living in the Mazovian Voivodship. social activity;over the country are trying to make the Warsaw and its direct vicinities aremost of the situation and move in. On the developing more and more intensely, • Development of metropolitan functionsbasis of the census, the Department of becoming more affluent, while the reinforcing Warsaw’s position at thethe Chief Architect of the City tried to boundaries of the province are regional, national and European level;calculate how many people live in increasingly feeling the backwash effectWarsaw. It transpired that there was a that ‘washes’ the development resources • Development of modern economysignificant number of people working in from the region into the city. based on knowledge and scientificthe ‘black economy’. At the same time, research; and On the positive side, changes in financingother research shows that every day over the city investments as a result of &#