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    архитектура Cities of-opportunity архитектура Cities of-opportunity Document Transcript

    • Cities of Opportunity
    • Cities of Opportunity 2011 makes its fourth analysis of the trajectory of 26 cities, all capitals of finance, commerce and culture—and through their performance, seeks to open a window on what makes cities function best.The Upper East Side of Manhattan,with Midtown in the background.www.pwc.com© 2011 PwC. All rights reserved. “PwC” and “PwC US” refer to PricewaterhouseCoopers LLP, a Delaware limited liabilitypartnership, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is aseparate legal entity. This document is for general information purposes only, and should not be used as a substitute forconsultation with professional advisors.www.pfnyc.org©2011 The Partnership for New York City, Inc. All rights reserved.
    • The more cities change, the moreforward-looking perspective matters…The notion of the city has come a long way. deeper exploration of core issues. This year have to be in balance for modern cities toBut the heart of what a city is remains the we compare 26 cities—with San Francisco, enjoy healthy growth. Minds spur innova-same: people drawn together, today in ever- Berlin, Madrid, Moscow, Istanbul and Abu tion; roads, rails, communications networks,increasing densities and numbers, to work Dhabi joining and Houston rejoining. We also schools and hospitals lay the groundworkas a community. look closely at a few of the challenges that on which new ideas can grow. In an ideal are most pressing at the moment—regional world, prosperity follows. But, as we all know,Cities of Opportunity is dedicated to management, education, sustainability, progress toward any ideal requires day-to-understanding what makes urban dynam- density, transportation and preservation. day work. This study represents our partics work, and communicating what we learn in the effort.to government officials, policymakers, busi- It is not a coincidence that images ofnesspersons, scholars and citizens mutually innovative and historic libraries (in Seattle Yes, Cities of Opportunity is changing. But theinvested in the success of their city or cities. and Stockholm) begin and end the interviews heart of what we are doing—trying to shed in our study. Nor is the focus on transporta- light on what makes major cities healthy—This marks our fourth study. Like cities them- tion, energy, environment, housing and health remains the same. All three of us sincerelyselves, we keep evolving. Cities of Opportunity that weaves throughout. Both tangible and hope you find value and interest in the study.2011 includes more cities, greater analysis and intangible—physical and intellectual capital—Yours truly,Robert Moritz Kenneth I. Chenault Terry J. LundgrenChairman and Senior Partner Chairman and CEO Chairman, President andPricewaterhouseCoopers LLP American Express Co. Chief Executive Officer Macy’s Inc. Co-chairman Partnership for New York City Co-chairman Partnership for New York City
    • Contents 5 About the study Frames the themes, presents context and explains the scoring 10 The city in focus Zeros in on key results throughout the study and analyzes findings and issues 20 Indicator discussions & interviews Presents in-depth results covering all 10 indicators and 66 variables, examines issues and adds insight from urban thinkers and doersCommuters crossing London Bridge.2 | Cities of Opportunity | PwC
    • Interviews 22 | Rem Koolhaas 56 | Mortimer Zuckerman Muses on changing cities and his quest to Gauges the present and future of cities from reinvent them in a way that serves the his perspective as a developer, publisher and public good former professorPage 22 30 | Judith Rodin 64 | René Gurka Discusses the Rockefeller Foundation’s quest Sees Berlin as “the place to be” for media, life to address the challenges of urbanization sciences, clean industries and services as the city re-establishes itself as a business center 42 | Klaus Baur & Guenther Krug Explain how railways bring sustainable 76 | Leif Edvinsson mobility back to the future Charts a course “from cities of hardware to cities of mindware” 50 | Kerry Zhou Outlines the mission of Goldwind Technologies to light the world’s cities with green powerPage 30Page 56 See the web at www.pwc.com/cities for greater depth and functionality. Model your own city and perform customized correlation analyses by selecting the variables and cities you want to focus on for an interactive look at the results. See videocasts and hear podcasts with Rem Koolhaas and Mortimer Zuckerman. Read the full text of all the interviews condensed here in the report. Learn the detailed background on all sources and definitions for the 66 variables in the study.Page 76 Partnership for New York City | Cities of Opportunity | 3
    • About the study Traffic traverses a new diagonal crossing at Oxford Circus, London, inspired by the Shibuya crossing in Tokyo.
    • Overview: Looking closer at the alphas, betas and chais of holistic cities When the first edition of Cities of In terms of overall results this year, New York Opportunity was developed, we made a finishes first with a slim, perhaps ephemeral, decision to rank cities only in their 10 indica- lead (see page 12). But the real news lies tor categories and to forego showing overall elsewhere. rankings to avoid the misperception of a con- test. That risk seemed especially significant Toronto, San Francisco, Stockholm in 2007, when the media cast New York and and Sydney round out the top five London in a death match for global capital after New York. These beta cities arguably market kingship. may not “have it all” if you’re seeking to crown a heavyweight champion among world In hindsight, the New York versus London tug cities where size, a major capital market and of war seems a figment of the about-to-burst 24/7 buzz do matter. But they just may have bubble, a comparison that deserved headline what they need for a world that is growing attention only through the looking glass of less reliant on geography and more dependent irrational exuberance. And a curious reader, on attracting and nurturing good people to then and now, might be expected to ask, quite innovate and build the future with fresh eyes. commonsensically, ‘who does win?’ Interestingly, the cities of Toronto, San Francisco, This fourth edition of Cities of Opportunity Stockholm and Sydney all are part of vital for the first time shows an overall ranking. regions—a relationship we examine this year. But which city wins is far from our message or motivation. If anything, we honor the Notably also, the “alpha” cities like admonition of Walt Whitman, a 19th century London, Paris, Tokyo and New York editor of The Brooklyn Eagle: “Be curious, not are not bunched at the top. These “usual judgmental.” suspects” of broad, Western socioeconomic leadership (with rich recent histories, deep Rome, Amsterdam, Beijing were all once resources and major capital markets) are the centers of their worlds. Each remains a spread through the top 10 and, in the case of great city but at a different stage of evolu- Tokyo, fall to 14th overall. tion. Detroit stood mid-20th century at the epicenter of the US economy, to the point Taking a step back, there actually are no that it was said, “What is good for the nation alpha and beta differentiators among our is good for General Motors and vice versa.” 26 cities—nor is there any reason to catego- Today, that story has taken a different turn. rize cities as one or the other more than to But even for Detroit, detours don’t doom the acknowledge differences among histories, city to dead ends. opportunities and challenges. As all city6 | Cities of Opportunity | PwC
    • dwellers know (at least in quiet moments), 66 variables, also offering users the interac- Interviews add an extraordinarythe density that packs us on metros, high- tive ability to customize any combination of level of insight from people at the centerways, markets and streets guarantees that 10 variables.) of thought and action. These include con-we’re “all in it together.” Sooner or later, versations with: Rem Koolhaas, architect,cities and their citizens prosper or fail as a This year in addition to refining our data writer and Harvard professor; Judith Rodin,piece. What one person or city learns can selection and analysis and presenting inter- president of the Rockefeller Foundation andhelp another; and our objective is to look at views with authorities at the center of urban formerly the University of Pennsylvania;policies and performance to communicate ideas and action, we discuss several critical Mortimer Zuckerman, developer anduseful insights. urban issues in depth. These include the: publisher; Klaus Baur and Guenther Krug, chairman of Bombardier Transportation, andWinners also would be much different if Paradox of measuring and improving a member of Berlin Parliament and advisorCities of Opportunity were recast as Cities education in a world where intellectual capi- to Bombardier, respectively; Kerry Zhou,of Growth or Cities of Fun. As it is, our study tal and innovation increasingly form the brick director of strategy and planning at Goldwinddefines the ideal differently. Perhaps we’re and mortar of future cities (see page 28). Technologies, one of China’s leading windseeking the chai of cities, to switch from power companies; René Gurka, managingGreek letters to a Hebrew character that Regional struggle from Beijing to director of Berlin Partner, and Leif Edvinsson,signifies life force. Berlin to São Paulo and Sydney to effec- an urban futurologist and pioneer in under- tively manage cities in the contexts of their standing the dynamics of intellectual capital.Our measures are designed to favor surrounding areas—often places with dif-holistic capital market centers with ferent governments, measures of success, Our website, www.pwc.com/cities,vibrant economies and strong quality of life. funding sources and economic motivations offers much more. Interactive tools allowOur thesis is that a successful city going for- (see page 36). users to perform their own correlation analy-ward will balance both social and economic ses and comparisons for any city. Videocastsstrengths so the people and infrastructure Changing popular and real definition are available with Rem Koolhaas and podcastssupport each other. The challenge of building of what a cityscape looks like as some with Mortimer Zuckerman. Full-length tran-a city, keeping it on top and evolving with cities rise, some spread, some choose to stay scripts of the interviews are posted. You canchanging needs is the dynamic we’re seeking low and some combine a bit of each (see also find detailed background on all sourcesto illuminate. The measures we use—recon- page 40). and definitions of the variables.sidered and significantly recast this year—areselected to develop an accurate reflection of Progress being made on sustainability In closing, we hope all this proves entertaining,that balanced city and its metamorphosis. as cities from Mexico City to Johannesburg enlightening and valuable to everyone inter- to Shanghai, Abu Dhabi and New York adopt ested in the factors that make cities thrive.Correlation analyses provide one signal we’re plans to suit their own situations to cleangoing in the right direction. A parallel exists their environments and conserve resourcesbetween good economic indicators and social (see page 47).ones. Among the 10 indicators, five corre-late in a close positive pattern—intellectual Costly and maddening toll of trafficcapital and innovation; health, safety and congestion and what Singapore, Stockholmsecurity; ease of doing business; technology and London are doing to solve the problemreadiness; and demographics and livability. (see page 68).In other words, when one goes up, the othertends to do so as well. For instance, the Friction playing out between prog-indicators that include health and intellectual ress and preservation as governments,capital correlate a striking +87%. (See page businesses, developers, architects, historic16 for a heat map of the 10 indicators and conservationists and citizens each regardwww.pwc.com/cities for a look at all the value of the past and road to the future through slightly different prisms (see page 72). Partnership for New York City | Cities of Opportunity | 7
    • Approach: The mix of variables and cities is refined;the parameters of research stay consistent Like cities, Cities of Opportunity continues properly. Discussions are included on regional to evolve. PwC and the Partnership for New management, measurement of education, York City first considered the report seven cityscapes, sustainability, traffic congestion years ago asking what New York had to do to and preservation. remain competitive on the world stage. We immediately extended the research to other This fourth edition of our report expands and cities around the world to find patterns and changes the mix of cities, enriches the data lessons. In four editions of our report, we with more and different variables, and further have grown from 11 to 26 cities. complements the quantitative nature of the research with insight from world authorities Last year, we reported that economics and on urban issues. quality of life are tightly linked in successful modern cities. The study continues to grow Three key factors governed the cities into a more holistic look at socioeconomic we chose: balance. Capital market centers. Many of the cities We moved deeper into underlying included are hubs of commerce, communica- issues this year, realizing that numbers tions and culture. But all are financial capitals themselves may create interest, but, very of their region—meaning each plays an often, the policies behind statistics require important role not only locally but also as a analysis and comparison to tell the story vital part of a globalizing economic fabric. Broad geographic sampling. While each city is a center of finance and commerce in its own region, and in many cases the world, collectively, the 26 cities form a representative international distribution. Mature and emerging economies. Sixteen mature cities and 10 emerging ones are included. This year, six new cities joined the study, one rejoined from the 2008 report and a few were removed. At 26 cities, the sample size remains small enough to allow deep and wide-ranging research yet large enough to be representative. Madrid, Moscow, Istanbul and Houston were added in order to create better regional coverage. Abu Dhabi replaced Dubai as the former is rising as a business center while the latter’s growth slowed markedly during the Great Recession. San Francisco joined for a number of reasons. Close links to Silicon Valley provideSan Francisco Bay Area.8 | Cities of Opportunity | PwC
    • Madrid, Moscow, Berlin, Istanbul, Abu Dhabi and San Francisco join the study and Houston rejoins. Variables are added on airport transit, health systems and end-of-life care, among others.a useful regional focus. As the financial hub ism. The latter measures hardware itself. The However, because consistent comparisonsof that area, the city itself plays a major role demographics and livability indicator focuses across all cities are critical to assure objec-in one of the most innovative economies in more closely on how pleasant people find tivity, country-level data were used whenthe US. It also is at the leading edge of US living in a city. Only working age population consistent, highly reliable sources of publi-cities enacting social policies that affect busi- remains to show the size of a city’s potential cally available data were unavailable for allness, which adds interest to its performance. workforce. 26 cities.Berlin replaces Frankfurt, the nation’s New variables include: airport to central The scoring methodology was devel-financial and banking hub, to represent business district access to measure the ease oped to ensure transparency and simplicityGermany. The capital’s fast and targeted of using public transit between those two key for readers, as well as comparability acrossgrowth in recent years adds a layer of interest places; health system performance; and cities. The output makes for a robust set ofin seeing if it can accomplish in business end-of-life care. We strengthened our results and a strong foundation for analysiswhat it already has achieved in government sustainability indicator variables, adding and discussion.and culture, becoming the heart of a newly available data. The study’s result is anreunified nation. unbiased, quality-controlled and rich look In attempting to score cities based on relative at the pulse of key cities at the heart of the performance, we decided at the outset of ourIn terms of the data indicators, we financial, commercial and cultural world. process that for maximum transparency andconstructed a robust sampling of variables, simplicity, we would avoid applying overlyeach of which had to be: relevant; consistent Understanding the scoring: Seeking complicated weights to the 66 variables and,across the sample; publicly available and transparency and simplicity in so doing, treat each variable with equalcollectible; current; free of skewing from local importance. This approach makes the studynuances; and truly reflective of a city’s quality Because Cities of Opportunity is based on easily understandable and usable by businessor power. (See pages 79-82 for a brief key publicly available data supported by extensive leaders, academics, policymakers and layand www.pwc.com/cities for a detailed listing research, three main sources were used to persons alike.of definitions and sources.) collect the relevant data: Taking the data for each individual variable,Data this year were normalized where Global multilateral development orga- the 26 cities were sorted from the bestappropriate, minimizing the likelihood of a nizations such as the World Bank and the performing to the worst. The cities then werecity doing well solely because of its size and International Monetary Fund, national assigned a score from 26 (the best perform-historic strength. This eliminated the need statistics organizations, such as UK National ing) to 1 (the worst performing). In theto differentiate between variables that reflect Statistics and the US Census Bureau, and case of a tie, the cities were assigned thea city’s raw power (such as the number of commercial data providers. same score.foreign embassies or greenfield projects) and The data were collected during the second Once all of the 66 variables had been rankedits quality or intensity (such as percent and third quarters of 2010. In the majority of and scored, they were placed into their 10of population with higher education). Now cases, the data used in the study refer to 2009 indicators (for example, economic clout ormore variables are stated in a way that is and 2010. demographics and livability). Within eachnormalized for either land area or populationthan in previous editions. individual group, the variable scores were In some cases, national data were used as summed to produce an overall indicator score a proxy for city data. Renewable energy for that topic. This produced 10 indicatorThe 66 variables selected and divided into consumption is an example. Use of national league tables that display the relative perfor-10 indicator groups changed significantly this data tends to disadvantage the 26 cities in mance of our 26 cities.year in order to develop an even more accu- our study, all of which are either national orrate image of city success. regional capitals of finance and business thatIntellectual capital and innovation and would be expected to outperform nationaltechnology readiness indicators were more averages in measures of socioeconomiccleanly delineated this year. The former advancement. This affect might be more Definitions for all variables areshows what hardware facilitates in a city, such pronounced in developing parts of the world provided on pages 79-82.as education, R&D effort and entrepreneur- and areas with greater rural populations. Partnership for New York City | Cities of Opportunity | 9
    • The city in focus Visitors walk through the glass cupola of the German lower house of Parliament, the Bundestag, designed by Sir Norman Foster.
    • Holistic balance characterizes the top10 cities in our rankings: all are wellestablished centers of economic energyand intellectual vitality. Althoughdispersed among four continents,their common bond is depth. sure with our life satisfaction variable—might be an especially sensitive indicator of the top and bottom of our rankings given that seven out of 11 cities scoring least in life satisfaction also were at the bottom of the overall rankings. Still, the notions of top and bottom in this report, by definition, are relative. A major A look across the overall rankings reveals reason to look at every ranking indicatively several interesting patterns. Our top five cities rather than literally—as guideposts to the include only one, New York, that might be future rather than markers of the past—is called a traditional economic powerhouse. precisely because every city in this study does Most of the other alpha cities—London, Paris something, or many things, well. Looking at and Hong Kong—finish in the bottom half of the overall rankings without examining the the top 10. Tokyo falls to number 14. Toronto, actual details behind them, therefore, obscures San Francisco, Stockholm and Sydney round the compelling reasons why each city here has out the top five this year rather than the been included as one of the foremost cities in historic centers of global finance, commerce the world today. and culture. New York narrowly finishes first Holistic balance characterizes the top 10 in terms of rankings, dominating only the cities in our rankings: all are well established lifestyle assets indicator measuring cultural centers of economic energy and intellectual vibrancy, sports, hotel rooms, skylines, tourism vitality. Although dispersed among four con- and green space. But balance may be the city’s tinents, their common bond is depth: of eco- greatest strength. New York finishes in the top nomic infrastructure and networks; of law and three places in six out of 10 indicators. jurisprudence; of commercial protection; of educational systems and cultural foundations; By contrast, London maintains the greatest of civic organizations; and of social security. economic clout (coming in ahead of Paris and New York in that indicator, respectively) but These cities are hardly identical, and they do finishes in the top three overall only one other not excel in every indicator. But they all rep- time. In context, balance may have helped resent a modern consensus that cities are the New York weather the worst of the Great most effective agents of what Leif Edvinsson Recession and hurt London, whose economy calls “social intelligence” (see page 76); that relies more heavily on one sector: financial is, the concentrated knowledge and insight of services. an entire human network. A potential sign of shifting patterns The most resilient societies are those in which emerges looking at the four cities that citizens feel they have a stake; economically, follow New York in the top five—Toronto, politically, socially, and even emotionally. As San Francisco, Stockholm and Sydney. In an it turns out, emotion—which we tried to mea- increasingly virtual world, these beta cities Partnership for New York City | Cities of Opportunity | 11
    • How the cities rank Intellectual capital Technology Transportation and innovation readiness and infrastructuremay pose significant competition to great 26 New York 174 90 158cosmopolitan centers such as London, Paris, 25 Toronto 186 59 127Tokyo and New York. 24 San Francisco 174 83 156Toronto, San Francisco, Stockholm and 23 Stockholm 205 84 134Sydney all are smaller cities that, a quarter 22 Sydney 168 47 129of a century ago, were regarded as regionalor national centers. Not any more. Stockholm 21 London 162 68 149ranks first in intellectual capital and innova- 20 Chicago 166 80 159tion; health, safety and security; and, remark- 19 Paris 172 58 168ably, demographics and livability, which 18 Singapore 119 78 126includes the thermal comfort variable thatquantifies the idea that more temperate and 17 Hong Kong 118 77 149consistent climes are more attractive. 16 Houston 168 74 92 15 Los Angeles 169 76 93Toronto, meanwhile, finishes second overalland also ranks second in intellectual capital 14 Berlin 149 48 113and innovation as well as health, safety and 13 Tokyo 168 74 152security, the two indicators that are most highly 12 Madrid 120 40 154correlated in a positive way (see page 16). 11 Seoul 130 89 145Findings of interest arise throughout 10 Beijing 77 45 133the results. São Paulo, for example, finishes 9 Abu Dhabi 74 24 104in the top 10 in cultural vibrancy and fourthin the “zeitgeist” portion of that variable, 8 Shanghai 83 47 127signaling the city’s global appeal as a dynamic 7 Mexico City 77 21 134metropolis coming into its own as the largestcity in the Southern Hemisphere. It also does 6 Moscow 107 51 128very well in sustainability, performing in the 5 Santiago 68 28 82top 10 overall and ranking second in both 4 Istanbul 38 29 99carbon footprint and renewable energy 3 São Paulo 58 28 80consumption. 2 Johannesburg 51 13 55Johannesburg, too, does extremely well in 1 Mumbai 41 18 80sustainability, coming in fourth overall. Whileits top ranking in cost of business occupancymight be expected, coming in second in air-port to central business district (CBD) accessis both surprising and impressive.Istanbul ties for third place withAbu Dhabi and New York in skyscraperconstruction activity; equals every US city inease of starting a business; beats Tokyo, SanFrancisco and Berlin in international tourists;and, finally ties for third with San Francisco, At a time of great nation and city building in multimedia design and development,Sydney and Singapore (among other cities) China, Shanghai leads all cities in attracting recycled waste and renewable energy. All thisfor the quality of its air. foreign direct investment in terms of both shows China investing to continue the growth capital inflow and new greenfield projects. of its cities and taking actions now in theAbu Dhabi itself ranks in the top three places Beijing comes in third and fourth in these economy and environment to yield dividendsin 10 different variables, from the quality variables, respectively, and posts the best in the future.of its air to its hospitals to commute time to airport to central business district commuteits economic competitiveness in everything in the study. Shanghai’s modern skyline is the Beyond the highs and lows, two notewor-from tax rates to ease of hiring to working fourth most powerful in our study. thy points should be made about the middleage population. range of this table. The first is that Tokyo Shanghai and Beijing jointly finish in the top dropped from eighth in last year’s ranking to 10 in nearly a third of the variables (21 of 14th this year—a steep drop by any measure 66); notably including software and Continues on page 1412 | Cities of Opportunity | PwC
    • Health, safety Sustainability Economic clout Ease of doing Cost Demographics Lifestyle assets Scoreand security business and livability 93 49 163 178 77 97 147 1226 112 71 139 163 94 133 111 1195 104 69 101 154 96 131 104 1172 113 81 103 143 79 137 68 1147 104 83 107 162 87 134 105 1126 90 52 170 166 59 83 123 1122 107 42 101 156 99 116 94 1120 85 57 166 119 51 116 125 1117 97 52 140 188 64 113 90 1067 66 47 149 191 60 107 97 1061 103 35 100 152 116 116 94 1050 89 46 84 159 101 124 102 1043 98 86 100 121 91 122 88 1016 91 45 114 140 45 81 103 1013 79 58 144 102 62 124 84 967 58 56 89 119 57 83 56 882 37 47 114 76 39 78 83 729 86 28 71 117 70 110 21 705 37 54 119 54 41 49 86 697 41 43 66 97 58 90 65 692 18 33 88 60 37 47 95 664 30 61 65 138 86 76 24 658 25 57 68 90 46 74 72 598 21 67 80 74 30 92 65 595 42 78 67 87 86 71 43 593 25 71 88 61 29 49 30 492Each city’s score (here 1227 to 492) is the sum of its rankings across indicators. The city order from High Highest rank in each indicator26 to 1 is based on these scores. See maps on pages 18–19 for an overall indicator comparison. Medium Low Partnership for New York City | Cities of Opportunity | 13
    • Continued from page 12 but for cities such as Paris and London. Both these cities complete the top three, respective-but one with clear causes. While it reached ly, in lifestyle assets; but they do not performthe top 10 in six indicators, Tokyo ranked 12th nearly as well in demographics and livability.in ease of doing business; eight places from (Paris does best, tied for eighth; but Londonthe bottom in the key variable of demograph- comes in at a tie for 17th.) Meantime, Stock-ics and livability (with a correspondingly low holm, Sydney, Toronto and San Francisco leadscore in life satisfaction); and six places from the category.the bottom in cost and sustainability—unusualresults for one of the leading cities in the Results in health, safety and securityworld with extraordinary human capital. may expose another significant risk going forward in terms of any city’s success. In ourBerlin ranked immediately above heat map analysis this year, a highly positiveTokyo in this year’s study and is reinvent- correlation arises between health, safety anding itself—or, more accurately, reintegrating security and intellectual capital and innova-itself into the international economy—for the tion (see page 26). Clearly, the people whosecond time since it became the capital of constitute a city’s intellectual capital, and areImperial Germany in 1871 and burgeoned in its leading innovators, need to feel healthy,size and population in the first decades of the safe and secure in their working and personal20th century. surroundings in order to put down rootsThe fall of the Berlin Wall in 1989, the city’s and prosper.reunification and its reinstatement as the Taking a step back, high or low overall scorespolitical center of a united Germany have are only guideposts. One pragmatic policyrestored Berlin to the mainstream of European implication of the study is that a broadlyand global history. It looks like it intends to positive quality of life may serve as a founda-stay there, certainly as a creative center—and tion of both a resilient economy and lastingnot just in the arts but in IT, life sciences, global success.and services (see page 64 interview withRené Gurka of Berlin Partner). While none of our beta cities are world eco- nomic powerhouses, they perform very wellReturning to overall messages in the overall. This is important at a time of urbanfindings, it may be telling going forward that growth when residents are looking for moreNew York ranks 14th in demographics and than just a place to work but also a place tolivability, with low scores in quality of living live, build families and invest in the future.and commute time. Weakness in these areas The cities that perform well in Cities ofmay be a future threat not only for New York Opportunity are those that reflect that balance.While none of our beta cities are world economicpowerhouses, they perform very well. This isimportant at a time of urban growth whenresidents are looking for more than just a placeto work but also a place to live, build familiesand invest in the future.14 | Cities of Opportunity | PwC
    • Grande Arche de la Défense, Paris.Partnership for New York City | Cities of Opportunity | 15
    • Practical correlates:The patterns of a successful city reflect the people whowork toward success Correlation analysis adds a fascinating aspect Transportation and infrastructure Intellectual capital and innovation of our study in which the data create their own patterns, on a kind of random walk that Demographics and livability Health, safety and security leads to new, and often unexpected and coun- Ease of doing business Technology readiness Average correlation terintuitive, conclusions that challenge some theories and confirm others. Economic clout Lifestyle assets Sustainability What stuck out in the heat map of our 10 Grand total indicators this year was the strong positive correlation between intellectual capital and Cost innovation and health, safety and security. Average correlation 55% 74% 70% 67% 61% 60% 57% 53% 50% 48% 43% 27% Simply stated, the most globally Grand total 74% 100 % 94% 91% 83% 81% 76% 71% 67% 65% 56% 32% competitive cities are almost always those in which the men and women who gener- Intellectual capital and innovation 70% 94% 100 % 87% 69% 81% 69% 63% 54% 60% 55% 36% ate a city’s intellectual resources are offered professional and personal surroundings Health, safety and security 67% 91% 87% 100 % 78% 65% 84% 46% 47% 46% 68% 30% that can reasonably ensure their health and Ease of doing business 61% 83% 69% 78% 100 % 69% 67% 51% 47% 37% 62% 6% safety. Put another way, a city’s creators and innovators—those who design and devise Technology readiness 60% 81% 81% 65% 69% 100 % 43% 63% 52% 63% 35% 5% its products (whether buildings, financial Demographics and livability 57% 76% 69% 84% 67% 43% 100 % 28% 27% 30% 67% 38% instruments, media or works of art) and set Lifestyle assets 53% 71% 63% 46% 51% 63% 28% 100 % 76% 62% 11% 9% its trends—actually choose where they want to live. Economic clout 50% 67% 54% 47% 47% 52% 27% 76% 100 % 68% -5% 15% Transportation and infrastructure 48% 65% 60% 46% 37% 63% 30% 62% 68% 100 % -6% 3% This illustrates a broader competitive land- scape. The five indicators that correlate very Cost 43% 56% 55% 68% 62% 35% 67% 11% -5% -6% 100 % 24% positively among themselves lie in the “north- Sustainability 27% 32% 36% 30% 6% 5% 38% 9% 15% 3% 24% 100 % 100 % Strong positive correlation Weak positive correlation 0% Weak negative correlation -100 % Strong negative correlation16 | Cities of Opportunity | PwC
    • west” corner. In addition to the two discussed cities). Of the top 10—those, in other words,above, they include ease of doing business, most positively correlated with each other—technology readiness, and demographics three are social (end-of-life care, housing andand livability. What is noteworthy about this quality of living); two involve intellectualcluster is that only ease of doing business is capital and innovation (literacy and enroll-a “hard” economic or financial measure. The ment and intellectual property protection);other four are more properly social, educa- one is technological (digital economy score);tional or technological indicators—not the one is political (political environment) andconventional stuff of economic analysis. as relevant to personal freedom as to prudent investment; and only three are economicMost of those hard economic indicators— (workforce management risk, entrepreneurialeconomic clout, transportation and infra- environment and business trip index).structure, and cost—lie in the bottom halfof the map. Interestingly, cost, the “hardest” That, in the end, is the new urbanand bluntest economic measure of all, shows terrain. Intellectual capital and innovationweak negative correlations with economic has the highest average positive correlationclout, as well as with transportation and with every other indicator. Health, safety andinfrastructure. security has the second highest. And the two are more positively correlated to each otherThis is a striking illustration of the transfor- than is the case with any other indicators.mation of modern metropolitan economies,now based and dependent on education, According to the data, therefore, the success-science and technology rather than on ful modern urban economy is reliant on, iftraditional industry. Moreover, to sustain not yet solely the product of, intelligence andsuccess, cities today must continually attract social well-being—a methodological conclu-and retain highly educated, technologically sion that seems not so much to challenge anyadept and digitally connected knowledge theory as to confirm common sense.workers who increasingly make up the coreof their human capital and whose definitionof quality of life is exacting and not easilycompromised.This extremely positive correlation of socialand educational variables in our study isborne out by our large heat map, whichincludes all 66 variables (see www.pwc.com/ Simply stated, the most globally competitive cities are almost always those in which the men and women who generate a city’s intellectual resources are offered professional and personal surroundings that can reasonably ensure their health and safety. Partnership for New York City | Cities of Opportunity | 17
    • Indicator rankings at a glanceThe maps below show city rankings in each of the study’s 10 Intellectual capital and innovationoverall indicators. A brief key to the 66 variables is available on page 26pages 79-82. Interactive tools and detailed listings of definitionsand source documents used to develop Cities of Opportunity are Toronto London 26 Stockholm 16 10 Moscowoffered at www.pwc.com/cities. Chicago 25 15 Berlin Beijing Seoul San Francisco 24 17 24 New York 13 22 1 Istanbul 8 14 Los Angeles 21 20 Houston Madrid Paris Abu Dhabi 20 Tokyo Shanghai 9 8 6 11 Hong Kong Mexico City 2 Mumbai 12 Singapore São Paulo Johannesburg 4 3 Sydney Santiago 5 20 Health, safety and security Sustainability page 45 page 46 London 26 Stockholm London 24 Stockholm Toronto Toronto 16 1 Moscow 12 2 Moscow Chicago 25 20 Berlin Beijing Chicago 22 26 Berlin BeijingSan Francisco 23 Seoul San Francisco 20 Seoul 24 18 New York 12 13 4 Istanbul 7 4 10 New York 17 16 16 Istanbul 9 10 14 Los Angeles 15 21 Houston Madrid Paris Abu Dhabi 17 Tokyo Los Angeles 7 3 Houston Madrid Paris Abu Dhabi 6 Tokyo Shanghai 7 Shanghai 13 8 14 5 1 11 Hong Kong 9 Hong Kong Mexico City 4 Mexico City 22 Mumbai Mumbai 19 12 Singapore Singapore São Paulo São Paulo Johannesburg Johannesburg 2 19 9 Sydney 23 Sydney Santiago 5 Santiago 18 23 25 Cost Demographics and livability page 62 page 66 London 17 Stockholm London 26 Stockholm Toronto Toronto 11 3 Moscow 10 1 Moscow Chicago 22 21 Berlin Beijing Chicago 24 20 Berlin BeijingSan Francisco 23 Seoul San Francisco 23 Seoul 24 16 New York 13 8 7 Istanbul 4 19 13 New York 22 19 5 Istanbul 7 10 9 Los Angeles 25 26 Houston Madrid Paris Abu Dhabi 6 Tokyo Los Angeles 22 19 Houston Madrid Paris Abu Dhabi Shanghai 3 8 Tokyo Shanghai 5 10 15 11 15 12 Hong Kong 14 Hong Kong Mexico City 1 Mexico City 3 Mumbai Mumbai 14 16 Singapore Singapore São Paulo São Paulo Johannesburg Johannesburg 2 12 19 Sydney 4 Sydney Santiago 19 Santiago 6 20 2518 | Cities of Opportunity | PwC
    • Technology readiness Transportation and infrastructure page 29 page 34 London 24 Stockholm London 17 Stockholm Toronto Toronto 16 13 Moscow 20 13 Moscow Chicago 15 12 Berlin Beijing Chicago 12 9 Berlin BeijingSan Francisco 23 Seoul San Francisco 23 Seoul 22 26 New York 8 14 7 Istanbul 9 25 24 New York 22 26 7 Istanbul 15 25 18 Los Angeles 19 18 Houston Madrid Paris Abu Dhabi 18 Tokyo Los Angeles 6 5 Houston Madrid Paris Abu Dhabi 21 Tokyo Shanghai 11 Shanghai 12 3 4 8 20 Hong Kong 17 20 Hong Kong Mexico City 2 Mexico City 3 Mumbai Mumbai 21 10 Singapore Singapore São Paulo São Paulo Johannesburg Johannesburg 6 3 1 Sydney 1 Sydney Santiago 6 Santiago 4 11 14 Economic clout Ease of doing business page 54 page 60 London 15 Stockholm London 16 Stockholm Toronto Toronto 26 9 Moscow 23 2 Moscow Chicago 20 12 Berlin Beijing Chicago 22 13 Berlin BeijingSan Francisco 14 Seoul San Francisco 18 Seoul 14 24 New York 22 25 4 Istanbul 18 10 19 24 New York 9 12 7 Istanbul 5 12 Los Angeles 7 12 Houston Madrid Paris Abu Dhabi Shanghai 19 18 Tokyo Los Angeles 20 17 Houston Madrid Paris Abu Dhabi Shanghai 1 15 Tokyo 2 5 8 10 23 Hong Kong 26 Hong Kong Mexico City 9 Mexico City 3 Mumbai Mumbai 21 25 Singapore Singapore São Paulo São Paulo Johannesburg Johannesburg 6 4 Santiago 1 3 Sydney Santiago 14 6 Sydney 16 21 Lifestyle assets page 70 London 8 Stockholm Toronto 24 17 Moscow Chicago 23 13 Berlin BeijingSan Francisco 21 Seoul 16 26 New York 11 25 9 Istanbul 10 5 Los Angeles 19 16 Houston Madrid Paris Abu Dhabi Shanghai 12 20 Tokyo 1 7 18 Hong Kong Mexico City 3 Mumbai 14 Singapore São Paulo Johannesburg 7 Santiago 2 4 Sydney 22 Map Key High The 26 cities are sorted from the best to Medium the worst performing, with each receiving Low a score ranging from 26 for best to 1 for worst. In ties, cities are assigned the same score. Partnership for New York City | Cities of Opportunity | 19
    • Indicator discussions& interviews The Korean Pavilion at Shanghai’s 2010 Expo.
    • As we dig our way out of the Great Recession, we shouldn’t just replicate the old, consumer-driven economy. We need to build the next economy. The key is for metropolitan areas to develop economic plans tailored to their own strengths. Judith RodinThe quantitative research is Klaus Baur and Guenther Krug of Bom- Ease of doing business is expanded thisrepresented by 10 indicator categories bardier detail the sustainable and efficient year, but the top four—Hong Kong, Singa-that include 66 individual data variables. edge offered by intra- and intercity rail travel. pore, New York and London—change placesThe makeup of the indicators also mirrors the minimally.study’s hypothesis: Cities with well-rounded Health, safety and security plumbs theeconomies and forward-looking policies and vital signs of city life, and, again, Stockholm Cost finds five North American cities on top.actions over the long run will prove best for and Toronto emerge in best shape. But Berlin is right below. And René Gurkabusinesses and residents. of Berlin Partner tells what the reunified city Sustainability raises a finger in the wind to is doing to turn its many cultural advantagesIn addition to this quantitative research, find Berlin, Sydney and Stockholm perform- into an economic plus.discussions with leading authorities and ing best but four developing cities joining theexamination of various issues add insight top 10. Planning for sustainability takes the Demographics and livability looks atinto the numbers. first step toward results, and we examine how socioeconomic well-being and finds this Johannesburg, Mexico City, Shanghai, Abu complex quality best offered in Stockholm,Rem Koolhaas, architect, writer and Harvard Dhabi and New York are handling it. Kerry Sydney, Toronto and San Francisco. The painprofessor, has worked in many of our 26 Zhou of Goldwind Technologies discusses the of commuting merits a detour of its own tocities. A discussion with him covers modern- inroads renewable energy is making into the compare traffic policies.city issues from density to globalization to urban energy mix in China and worldwide.the particular beauties and tragedies of Lifestyle assets follows the urban blissindividual places. Economic clout is earned over time and toward New York, Paris and London. And changes little this year. London, Paris and we examine the cobweb of issues encirclingIntellectual capital and innovation has New York continue at the head. The top historic preservation as rage for the newbeen expanded to nine variables this year, and 10 are divided evenly between five North looks in the rearview mirror to find vintageStockholm and Toronto perform consistently American and European cities and five Asian chic. In the end, the gaze of Leif Edvinsson,well. Translating education theory into cities. Mortimer Zuckerman brings a who pioneered the study of intellectualclassroom reality is a paradox we investigate. broad perspective in discussing the economics capital, is firmly fixed on future “cities of landscape as a major developer, publisher and mindware.”Technology readiness focuses purely on former Harvard professor.hardware, and New York, Seoul and Stock-holm come out on top. Judith Rodin,president of the Rockefeller Foundation andformerly the University of Pennsylvania, offersher own extraordinary range of insight from See videocasts with architect Rem Koolhaas as well as Vitoreducation to infrastructure and migration. Knijnik, creative head of Y&R Energy in São Paulo, hear podcasts with Mortimer Zuckerman and read the full interviewsTransportation and infrastructure lays condensed here on the web at www.pwc.com/cities. The weba physical cornerstone enabling much else also offers interactive tools to customize heat maps and modelin every city to work. Paris, Chicago and New your own city based on all 26 cities and 66 variables, as well asYork perform best. The changing ideal and detailed background on sources and definitions.reality of what a cityscape should and doeslook like bears discussion of its own. Partnership for New York City | Cities of Opportunity | 21
    • Rem Koolhaasmuses onchanging cities… and on his own quest toreinvent them in a way thatserves the public goodFew people have thought as How is the nature of cities of what a city is. So my role When a lot of these new citiesprofoundly about cities as Dutch changing? is, to some extent, mediating were being built, we stoppedarchitect, author and Harvard between an old and new concep- thinking. It happened in a fallow There’s been an enormous influxSchool of Design professor Rem tion of the city. period—a strange, in-between from the countryside to urbanKoolhaas, head of the Office state. Trying to develop mod- conditions, which has led to an Were new cities like Shenzhenof Metropolitan Architecture els for urbanization is in itself enormous scale of city building, designed with any model inin Rotterdam. In books such as very valid because, at this point, particularly in Asia. Cities are mind?Delirious New York and S,M,L,XL, the city is defined by a Western becoming so ubiquitous, they’vehe has redefined attitudes toward No. The problem is that urban- default—the obvious skyscraper ceased to be able to be defined asurban architecture. But Koolhaas, ization in America and Europe or the obvious city block, the single entities with a single char-winner of the coveted Pritzker flattened around 1900, and obvious curtain wall, put together acter. They’re now almost alwaysArchitecture Prize in 2000, is no urbanization in Asia started in an obvious way. so big that they’ve fallen apartmere theorist: His iconic build- into fragments. Almost every new taking off in a really harsh wayings include Seattle’s Central Is there an optimal density for city has dense parts, empty parts, maybe in the ‘70s. If you look atLibrary and Beijing’s dazzling a city? low parts, high parts. Only in cit- all the manifestos written aboutCCTV tower. Here, Koolhaas ies that are old can you actually urbanism by Europeans like No. Within the current condition,discusses the startling transfor- talk about character. If you look Le Corbusier, it basically ends in the city will neither be densemation of cities such as Beijing at Dubai or anything in the Pearl 1930. Previously, when we were nor not-dense. It’ll have densityand Dubai, the wonders of Berlin River Delta, we see vastly greater urbanizing, we thought about but in parcels and in locations.and how New York lost its freedoms applied to the notion cities and how they should be. That’s why I’m so fascinated bycreative mojo.22 | Cities of Opportunity | PwC
    • Koolhaas strides across the Seattle Central Library, recently called his “masterpiece” by The Financial Times: “It is a building of Dantean ambition, a spiraling journey through words toward the light, a new conception of what uncommercial public space can be.”the image of Shenzhen where and exactly because it’s not sur-you see the biggest intersectionof the city 400 meters from a rice rounded by anything like it. It’s so stunningly present that I cannot Cities are becoming so ubiquitous,field. You’ll have the same thingeverywhere. That’s the irony in deny there’s an excitement in it. they’ve ceased to be able to bethe 21st century. The skyscraperis combined with the hovel. You What about Berlin, where you built the Netherlands Embassy defined as single entities withcan have a skyscraper anywhere, in 2003? a single character. They’re noweven in a desert. It’s a fantastic city. When I was in architecture school, the idea almost always so big that they’veDoes this create aestheticproblems? that a city could be divided and accommodate two completely fallen apart into fragments.You can see it either as an opposite political systems fasci-aesthetic crisis or new aesthetic nated me. I studied the Berlinconditions. I was just in Dubai. Wall, which was the interfaceThere was this skyscraper there. between those two systems—It’s maybe absurd. It’s maybe and, on the two sides, representedunsustainable. Nevertheless, those systems in a pure, almostI have a sense of exhilaration propagandistic way. The beautyand awe because it’s so extreme of Berlin is that it’s the stage of Partnership for New York City | Cities of Opportunity | 23
    • a number of very radical transfor- Chicago is interesting as it had a being involved in an effort of European cities, you havemations, and it wears the traces fire, was rebuilt by planners and consolidation. China is unbeliev- a weakened public transport,of those transformations in a architects, and is now a pleasure ably interesting because it needs weakened infrastructure of trainsvery poetic way—but there’s still to walk around, to see. thinking about what it’s going to and almost pervasive car use.a real substance that was always be and wants to be. And with the They could have avoided a lot Very much. Chicago has alwaysthere. That’s what makes it such a building itself—a project for Chi- of this if the public sector had had a discourse about planningwonderful city. Also, frankly, the nese Central Television—it would been enhanced. The result is and has results that are recogniz-fact that it had a rich part and a be interesting to think of a media a nightmare of the lack of able as planning. Perhaps in Newpoor part, and you still feel that company, what it represents, what public initiative. York you have that, too, but theopposition—that it’s not luxurious its relationship with the public beauty and tragedy of New York You once wrote that “globaliza-in its entire center like Paris. can be, how open or closed it can was that the first gesture was so tion astronomically expands the be. So it represented a number overwhelmingly genius and pow- realm of possibility for better orDoes New York still hold a special of challenges that were good for erful that everything after that worse.” Where does globalizationplace in your heart? me to think about. Plus I thought never had the same impact or stand today?Yes. It was the site of an unbeliev- the World Trade Center buildings status. In Chicago, they continuedable explosion of creativity. But in were so superb. I liked them so We’re very clearly in a period of to think about the city in a morethe past 30 years, I’ve seen little much that the idea of trying to waning enthusiasm for it. With creative way, perhaps because theof that same creativity in terms even imagine something different the economic crisis, you see it beginning was not so overwhelm-of being inventive or critical or on that site seemed impossible. on every level. So we have an ing. The result is that it’s a verydemanding. The real difficulty impressive, beautiful city. ironic situation where we live How does the car fit into in a period of globalization, yetof New York is that, in these 30 today’s cities? every single nation wants to beyears, the quality of buildings You were asked to considerhas become so unbelievably low; designing the new World Trade Certain cities accommodate cars more itself. I find this very notice-there’s so little newness that it Center, but chose to focus on quite well. If cars become more able in our clients. For the firstnow acts like a bulk of mediocrity CCTV’s headquarters in Beijing. sustainable, that will remain time, Chinese projects have to bethat almost prevents you from Why? quite a persistent model because Chinese; Arab projects, Arabic;appreciating the city’s initial it gives flexibility that’s almost Dutch projects, Dutch. We’re los- I felt more engaged with the issuegenius or initial ingenuity. unimaginable through any other ing internationalism as a positive of trying to imagine China, of device. But in existing cities, it’s thing. You also see it in a lack trying to participate in an effort much more problematic. In many of generosity toward travelers, of drastic renewal, rather than toward immigrants.The beauty of Berlin is that it’s the stage of a numberof very radical transformations, and it wears the tracesof those transformations in a very poetic way …… The beauty and tragedy of New York was thatthe first gesture was so overwhelmingly genius andpowerful that everything after that never had the sameimpact or status. In Chicago, they continued to thinkabout the city in a more creative way.24 | Cities of Opportunity | PwC
    • Your own perspective is unusu- ows. You see Thai maids looking If you were obliged to remain in nobody gets our sense of play orally international. How were you after the children of people who just one city, which would you humor because I’m having huge,shaped by being Dutch, moving live two weeks a year in trans- choose? huge fun. The irony and sadnessto Indonesia, then returning formed barns. It’s at least as for me is that the architecture There was a period when I feltto Rotterdam? radical and probably as artificial profession is so humorless even Paris would be a wonderful place as what’s happening in the city. though it’s a crucial part of think-I went to an Indonesian school so to find some stability, but I really ing: irony, sarcasm—these modesI knew from an early age what it can’t say. What’s your favorite city to visit? are crucial to approach somethingis to be among different people. It’s extremely difficult to say. I There’s a sense of playfulness from every different direction.It gave me a versatility and an visit cities for different reasons. throughout your work. Is archi- And they’re very important foranthropological interest in how I looked at your list, and there’s tecture a form of play and fun me personally. So I’m happy youother people live and what’s almost not a single city on it for you? asked it and very happy that youimportant to them. That hugely that I don’t, in many ways, like. I actually see it.informs everything we do. That’s a really good question love Rome. I love Istanbul. I love because I’m always surprisedWhat changes are occurring Damascus: It’s amazing, and it’sin rural areas as people move particularly amazing—and maybeto cities? all these cities have some of that quality—that every period is stillIt’s breathtaking how completely there as if it didn’t pass. Thattransformed the countryside is. richness is irresistible there. But Video excerpts of this condensedI’ve seen robotized tractors now I also like entirely new things, conversation are available atworking in Swiss alpine mead- like Shenzhen and Dubai. www.pwc.com/cities, as is a full-length version of the entire, much longer discussion. “China is unbelievably interesting because it needs thinking about what it’s going to be and wants to be” Koolhaas says, and “trying to imagine” that led him to design Beijing’s CCTV tower.
    • Intellectual capital andinnovation: Developingthe ‘mindware’ that will build Classroom size1 Libraries with Math/sciencefuture cities public access skills attainmentOf all the indicators, this is the one that has 26 Stockholm 20 25 16undergone the most profound enhancements 25 Toronto 25 21 23this year. As virtually all observers, both aca- 24 New York 15 15 12demic and in business, consider intellectualcapital, and the innovation that springs from 24 San Francisco 19 18 12it, to be the engine of both social and eco- 22 Paris 17 16 15nomic development, it is important to design 21 Los Angeles 22 11 12as robust an assessment of it as possible. 20 Tokyo 9 19 22The fact that Stockholm ranks first, by a 20 Sydney 14 26 19significant margin, is both striking and 20 Houston 21 12 12unsurprising. Unsurprising because as ourinterview with the “father” of the concept of 17 Chicago 13 17 12intellectual capital, Leif Edvinsson, confirms 16 London 12 24 17(see page 76), Swedes are in the vanguard 15 Berlin 18 20 18of thinking about this issue; and Sweden isin the forefront of embracing the policies 14 Seoul 6 4 24needed to expand and reinforce its own 13 Madrid 24 13 14intellectual capital. 12 Singapore 5 5 26What is striking is how thoroughly 11 Hong Kong 7 9 25Stockholm commands the category, how- 10 Moscow 26 22 7ever. It ranks first in three variables, second 9 Shanghai 3 8 21in two, third in one and within the top 10 intwo others. Indeed, it (just barely) falls out of 8 Beijing 3 1 21the top 10 in only one out of nine variables 8 Mexico City 23 23 4(albeit an important one), math/science skills 7 6 Abu Dhabi 16 2attainment. This, by all objective measures, isan impressive performance. 5 Santiago 8 10 6 4 São Paulo 11 6 3Toronto also excels in this section of the study, 3 Johannesburg 4 14 1ranking second overall and placing in thetop 10 in seven of the nine variables. But the 2 Mumbai 1 3 13United States does particularly well, with five 1 Istanbul 10 2 5cities in the top 10, New York ranking firstoverall in terms of the research performanceof its universities and San Francisco placingfirst in the percentage of its population withhigher education.Perhaps even more conspicuous than thecities that made the top 10, however, are economies of the last decade. Clearly, therethe ones that did not, most obviously those are structural issues that these economiesin Asia. Only Tokyo managed to break into confront as they compete in economicthe highest ranks this year. That left out (and social) value creation with the topevery other Asian city, including Hong Kong, 10 cities in this chart.which fell six places from last year, when a At the very least, this proves, once again,more limited range of measurements was that it is extremely difficult to compete withused. At a time when Asia is advancing into the power of a long-established and globallythe highest levels of the value chain, these dominant city whose institutional networksresults confirm the arduous road ahead of it. and sophistication were specifically designedThere is one other noticeable result in to extend and maintain its dominance.this year’s findings. The bottom 10 citiesrepresent some of the most dynamic26 | Cities of Opportunity | PwC
    • Literacy and Percent of Research Percent of gross Intellectual Entrepreneurial Score enrollment2 population with performance of domestic expenditure property protection environment higher education top universities on R&D 25 24 17 26 26 26 205 24 21 16 14 22 20 186 22 20 26 23 16 25 174 22 26 13 23 16 25 174 23 25 19 15 24 18 172 22 16 22 23 16 25 169 17 22 24 25 17 13 168 26 11 15 16 21 20 168 22 14 23 23 16 25 168 22 18 20 23 16 25 166 16 19 25 13 20 16 162 15 13 14 18 23 10 149 13 15 21 24 9 14 130 14 17 9 10 10 9 120 8 7 10 17 25 16 119 9 8 18 6 19 17 118 12 23 5 9 1 2 107 3 12 8 12 8 8 83 3 10 11 12 8 8 77 6 6 6 2 4 3 77 7 9 1 1 18 13 74 11 3 7 4 6 13 68 10 4 12 8 3 1 58 5 1 3 7 11 5 51 1 5 4 5 5 4 41 4 2 2 3 2 8 38Each city’s score (here 205 to 38) is the sum of its rankings across variables. The city order from 26 to 1 High Highest rank in each variableis based on these scores. See maps on pages 18–19 for an overall indicator comparison. Medium1. Where average class size data were unavailable, pupil-teacher performance scores on the key variables in three Knowledge Lowratios, or the number of students divided by the number of teach- Economy pillars—education and human resources, the innovationers in primary education, were used as substitutes. system, and information and communication technology (ICT). The variables that comprise education and human resources are2. The World Bank’s Knowledge Index (KI) measures a country’s adult literacy rate, secondary education enrollment and tertiaryability to generate, adopt and diffuse knowledge. This is an indica- education enrollment.tion of overall potential of knowledge development in a givencountry. The KI is derived by averaging a country’s normalized Partnership for New York City | Cities of Opportunity | 27
    • The paradox of education:Translating educational theory into classroom realityand practical results transcends the ABCsOne of the clearest messages in The fact that Western educatorsthis year’s rankings of intellectual reacted strongly, not only tocapital and innovation is how Shanghai’s students’ stellar perfor-complex the issues of educa- mance on the recent PISA, but totional reform are. We became some disappointing results in theirparticularly aware of this after own countries, makes clear thatthe global attention generated math and science skills are impor-by the publication of the latest tant measures of educationalProgramme for International progress. However, they are onlyStudent Assessment (PISA) two among many critical factorsresults in early December 2010 that contribute to high achieve-(released after compilation of this ment. Our research shows thatreport), which showed Shanghai’s cities like Toronto—which ranks15-year-olds outperforming every second in the indicator despite notother nation’s students in math, placing first in a single variable—science, and reading, in what can excel in providing high-qualitywas reported internationally as a education and engendering anperfect educational trifecta. innovative environment without besting their competitors in anyIt is impossible—and not our particular performance measure.intention—to diminish the scopeof this achievement by Shanghai’s Over-reliance on any singleeducational authorities. Yet, it measure is also ill-advised. Forwould be wise to look at the data example, while Mexico City comesin our rankings holistically and in fourth in classroom size, its lowanalytically before we draw any ranking in literacy and enrollment A classroom in Paris.premature conclusions from the and even lower ranking in mathundeniable feat of Shanghai’s and science skills suggest that itsschoolchildren. small classrooms have not led to opposite problem: it outperforms the city places in the top five in significant leaps in learning. other cities in math/science skills research performance of top uni-The first dissonant note is attainment, but has not been versities, percent of populationstruck in the column measuring Given the academic support for able to translate high academic with higher education, math/precisely that attainment in math the relevance of classroom size, achievement among its youth into science skills attainment, andand science in which Shanghai’s this outlier does not undermine a high college completion rate. percent of gross domestic expen-youngsters excelled. Stockholm the variable’s legitimacy. How- diture on R&D.ranks eleventh with a score of 16, ever, it does underscore the Looking beyond the class-which is actually the city’s worst value of examining educational room, cities have to find ways In the end, what makes the dataranking in the entire chart. This performance through several to harness intellectual capital for in this chart so challenging isdatapoint in itself causes us to different lenses. Success in one economic growth. Even cities with that they do not lend themselvespause. If Stockholm—which ranks area of education does not neces- a wealth of world-class research easily to superficial analyses orfirst in R&D expenditure, second sarily indicate high achievement universities, youth and adults with solutions. But they do help usin literacy and enrollment , and throughout the educational high educational achievement, formulate the questions and per-third in population with higher system. The American cities in and a demonstrated commitment spectives that can lead to a richereducation—misses the top ten our report—which consistently to supporting R&D do not neces- analysis of what “education”altogether in math and science, perform well in one or both of our sarily convert intellectual capital means, both for the individualwhat does that tell us about the measures of higher education, yet into economic success. and the society at large.relative importance of that cat- place in the bottom half of citiesegory as a whole in the creation in math/science skills attainment Tokyo’s entrepreneurial environ-of a dynamic, and dynamically among secondary students—illus- ment ties for a lack-luster 14thinnovative, society? trate this point. Singapore has the in our report despite the fact that28 | Cities of Opportunity | PwC
    • This year’s study clearly distinguishes between big populations of tech-heads and relatedTechnology readiness: the tangible and intangible assets a city needs investors; notably including New York, Seoul, to lead in intellectual capital and innovation Stockholm, San Francisco, Chicago, SingaporeHoning the right stuff for and straightforward technological prepared- and Hong Kong.the digital age ness. Here we focus purely on the software, hardware and bandwidth that are required New York, home to more than 10% of the for economic and academic progress. And nation’s financial technology workers, tops correlation analyses of all the data do show the list overall in technology infrastructure an 81% positive correlation between cities and measures of the city’s potential to nurture with a robust technology backbone and strong a high-tech future. Stockholm scores near intellectual assets. (See page 16 for an perfect in every area except software develop- indicator heat map and www.pwc.com/cities ment and design and is the only European for amodelling tool.) city among the top 10 finishers. San Francisco performs lower than might be expected not Forward thinking nations and the because creative, high-tech drive is lacking but top cities within them have had the rather because funding sources are more likely resources and foresight to make high- to be found in Silicon Valley than in the tech plans, put them into action, and attract city itself. Internet access Broadband quality Digital economy Software and multi- Score in schools score score1 media development and design2 26 New York 21 21 25 23 90 25 Seoul 23 26 16 24 89 24 Stockholm 26 25 26 7 84 23 San Francisco 21 21 25 16 83 22 Chicago 21 22 25 12 80 21 Singapore 25 13 20 20 78 20 Hong Kong 24 16 20 17 77 19 Los Angeles 21 15 25 15 76 18 Houston 21 17 25 11 74 18 Tokyo 10 24 14 26 74 16 London 16 12 15 25 68 15 Toronto 22 10 17 10 59 14 Paris 9 19 12 18 58 13 Moscow 5 23 1 22 51 12 Berlin 11 18 13 6 48 11 Shanghai 15 7 4 21 47 11 Sydney 13 11 18 5 47 9 Beijing 15 7 4 19 45 8 Madrid 7 9 11 13 40 7 Istanbul 6 14 5 4 29 6 Santiago 8 8 10 2 28 6 São Paulo 3 5 6 14 28 4 Abu Dhabi 12 2 9 1 24 3 Mexico City 2 4 7 8 21 2 Mumbai 4 3 2 9 18 1 Johannesburg 1 1 8 3 13Each city’s score (here 90 to 13) is the sum of its rankings across variables. The city order from 26 to 1 High Highest rank in each variableis based on these scores. See maps on pages 18–19 for an overall indicator comparison. Medium1. The Economist Intelligence Unit (EIU) renamed this study this 2. The index takes into account factors such as: education levels; Lowyear. It previously was titled, “E-readiness.” Given the prevalence of size and track record of the ICT sector; quality of IT, air, port, roadInternet-connected consumers, businesses and governments and and railway infrastructures; quality of electrical supply; size of laborthe indispensable role that digital communications and services force; labor productivity; hiring and firing flexibility; labor relations;now play in most of the world’s economies, the EIU believes that foreign ownership restrictions; business costs of terrorism; andthe countries included in its study already have achieved at least cost of establishing a business.some degree of e-readiness. The study’s new title, the “DigitalEconomy Rankings,” captures the challenge of maximizing the useof ICT that countries face in the years ahead. Partnership for New York City | Cities of Opportunity | 29
    • Judith Rodin… uses philanthropy to steercities in new directionsJudith Rodin is a pioneer. At Yale As president of the University of and sold or rented them; and makes a city attractive and easyUniversity, she blazed a trail in Pennsylvania, you tackled the we partnered with residents, the to navigate but also relates tobehavioral medicine and health dire urban problems confronting electricians’ union and the electric its capacity to withstand climate-psychology. As president of the the Philadelphia neighborhood utility to light the sidewalks of related shocks and otherUniversity of Pennsylvania, she near the campus. Why? 1,200 neighborhood properties, emergencies. This physicalwas the first woman to lead an enabling pedestrians to take back infrastructure includes diversityIvy League institution. Now, The neighborhood on the western the streets. We found that when of transportation options, goodas president of the Rockefeller edge of campus was in dreadful you tackle these issues simultane- housing and access to cleanFoundation, she’s refocusing this shape: crime had soared, and one ously, forging alliances with all water. Second, livable cities havephilanthropic giant to address in five residents lived below the the stakeholders, urban transfor- a strong and resilient economicchallenges such as massive urban- poverty level. We believed we mation not only becomes very infrastructure, which means theyization and the threat of global couldn’t have a future as a truly possible but becomes a lot easier. must be diverse enough economi-warming to cities. Never one great university in a disintegrat- cally to withstand financial shocksto accept the status quo, Rodin ing community. So we developed At the Rockefeller Foundation, and innovative enough to seizespeaks here about the urgent a 300,000-square-foot project that you’ve also been deeply involved opportunities. Finally, cities mustneed for urban innovation. included a luxury hotel, public in urban improvement. What be sustained by a resilient social plazas, stores and restaurants makes cities more livable? infrastructure. When all three of along a largely deserted commer- these infrastructures are strong, a cial corridor; we acquired scores We’ve identified three critical city will not only create a better of run-down homes and apart- types of infrastructure that make quality of life but also greater ment buildings, rehabbed them a city livable. The first is its economic success. physical infrastructure, which30 | Cities of Opportunity | PwC
    • Judith Rodin was joined in California by then-governor Arnold Schwarzenegger, Michael Bloomberg, New York mayor, and Edward Rendell, governor of Pennsylvania, left to right, in a call for federal action to repair and expand aging US infrastructure.How key are cities as drivers of How can public-private partner-national economic growth? ships help to produce vital cities? Each year, Americans loseIn the US, metropolitan areas arethe principal source of growth They’re essential in tackling the complex problems of the 21st cen- 4.2 billion hours and $87 billionand innovation. The top 100metro areas comprise two-thirds tury. The challenge is to leverage the unique assets of each sector in productivity and wasted fuelof our population but three-quarters of our GDP. As we dig in unison. For example, in New York and many other growing stuck in traffic, and the cost ofour way out of the Great Reces- cities globally, lack of affordable transportation is the second-sion, we shouldn’t just replicatethe old, consumer-driven econ- housing is a critical issue. To build 30,000 units of affordable hous- highest expenditure for Americanomy. We need to build the nexteconomy. The key is for metro- ing, New York needed for-profit and not-for-profit developers households. Reforming ourpolitan areas to develop economic to assemble land and invest transportation system is critical.plans tailored to their own pre-construction dollars. Thisstrengths. For example, the Seat- investment was too high-risktle area is known for high-tech for most commercial lenders. Atindustries and environmentalism Rockefeller, we set out to bridgeso it’s developing a new industry this gap. Our solution was toretrofitting buildings around the assemble a group of foundationsworld to make them green. that put up the first, high-risk Partnership for New York City | Cities of Opportunity | 31
    • tier of capital for new housing markets, others that emphasize find inadequate housing, food around the planning necessary toprojects. This allowed commercial developing new local markets. and transportation—let alone create a resilient urban physicallenders with lower risk tolerance We’ve forged a partnership with jobs, schools or health care. infrastructure where it doesn’tto provide the second tier of debt. the Brookings Institution to give And floods, droughts and other exist—and, where it does, to iden-That partnership enabled the city greater attention to the role of perils resulting from climate tify points where it might buckleto build more than 3,000 units business in US metropolitan change only multiply the dan- under the pressures of globalof affordable housing, with the regions in building an economy gers in these overcrowded areas. warming and severe weather.option of thousands more in that will be increasingly export To help address such concerns, For instance, cities must havethe pipeline. oriented and lower-carbon and the Foundation committed $70 provisions for temporary shelter innovation driven. With the million toward an initiative on in the wake of a natural disaster.So collaboration is crucial? dual purpose of fighting climate building climate change resil- So in New York, we sponsored a change and boosting quality ience in vulnerable cities in India, design competition for Post-Yes. For metropolitan economies employment in a new, green Thailand, Indonesia and Vietnam. Disaster Provisional Housing.to succeed, everyone needs to be economy, we’re supporting locally We’ve also created a network so We also helped fund the Ris-at the table to design the plan and focused, market-based solutions that such experiments will teach ing Currents project, in whichexecute it—government, business that can be replicated elsewhere. other countries what works, engineers, architects and urbanleaders, universities, civic leaders For example, we’re supporting enabling them to develop plans planners proposed the redesign ofand more. Business is a key sector, a coalition of organizations to that can ultimately save billions New York’s shoreline to withstandbut a growth plan can’t succeed develop the policy road map of dollars and countless lives. We a rising sea level. The designerswith business alone. We need for Green Jobs Green NY. This face a choice: Either we watch developed implementable innova-government to provide invest- program aims to retrofit 1 million as billions of people surge into tions such as a fingered shorelinement incentives and set the right homes throughout New York. A unplanned urban regions—deplet- that reduces wave velocity andpolicy framework that enables resilient, green economic infra- ing natural resources on which the introduction of porous mate-businesses to grow. Universities structure can ensure high-quality our survival depends, fueling the rials into lower Manhattan’sconduct research and provide jobs and sustainable growth. spread of disease and jeopardizing streets to absorb water quicklyinnovations that keep businesses national security—or we lead by and release it slowly. We’re alsocompetitive, and community How has massive migration developing innovative, collabora- working globally through projectscolleges train workers. These toward larger cities intensified tive responses. like the Asian Cities Climateplayers, acting in concert, can urban challenges? Change Resilience Network sinceproduce the economic growth What’s the Foundation doing to no growing cities are in greaterand jobs we need. For the first time in history, more combat the environmental threats peril than those in Southeast people live in urban communities facing cities? Asia. This network will chart newMany urban workers in devel- than rural areas, and cities can’t approaches for cities everywhereoped economies have felt cope with this massive migration. We’ve committed more than $200 to prepare for local impacts of thethe impact of jobs being out- The growth of slums is sympto- million to shaping innovations global environmental crisis whilesourced. Are there creative ways matic of this new reality in which that address the interconnected aggressively courting govern-of addressing this economic urban expansion is character- challenges of expanding economic ments and donors who can applyinsecurity? ized by informality, illegality opportunity while adapting to successful approaches on a and unplanned settlements. In climate change. One of our efforts wider scale.What’s needed is a mixture of dif- nearly all urban areas that will involves building knowledgeferent approaches—some focused experience dramatic growth, weon building export-orientedIn nearly all urban areas that will experiencedramatic growth, we find inadequate housing, foodand transportation—let alone jobs, schools or healthcare. And floods, droughts and other perils resultingfrom climate change only multiply the dangers inthese overcrowded areas.32 | Cities of Opportunity | PwC
    • What can be done to What must be done to improve vibrant arts sector and strong and night, and architecturallyimprove slums? urban transportation? neighborhoods. It also affirmed exciting and that have great that creativity is New York’s most local cuisines.Cities often are the first to adopt Each year, Americans lose 4.2 precious natural resource. So thisbreakthrough innovations. So billion hours and $87 billion in is all grounded in our conviction What do you like most aboutwe’re experimenting through a productivity and wasted fuel that the arts are essential for the the cities where you’ve lived?broad spectrum of urban inno- stuck in traffic, and the cost of lifeblood of a great city.vators, including Slumdwellers transportation is the second- New York has all the character-International Kenya, a network of highest expenditure for American Which are your favorite cities istics I just described. I also lovecommunity-based housing organi- households. Reforming our trans- to visit? Philadelphia for its history andzations that’s developing housing portation system is critical. We’re ineffable spunkiness; New Havenfor Nairobi’s urban poor. We’re engaging civic leaders, grass-roots I love all cities that are walkable, for its New England charm andassisting their outreach to global groups and system insiders who well-lit, teeming with energy day spirit; Miami for its Latin influ-funders like the World Bank and embrace a new transportation ence and pulsating energy.to the Kenyan government, local paradigm that promotes a low-universities and think tanks. The carbon, transit-supportive policy.idea is that they can solicit fund-ing internationally but deploy it Why does the Foundation ear-to capitalize solutions from local mark funds for cultural This interview has beencommunities. We’ve learned innovation in New York? condensed for publication in thethat urban development is more report. To read all full-lengtheffective if poor communities We helped fund a report about interviews, please visit ourare involved as partners, not the role of the creative sector in website: www.pwc.com/cities.only as beneficiaries. New York’s economy, and it firmly established the link between a Judith Rodin in her Rockefeller Foundation offices.
    • Transportation andinfrastructure: Good connectionsremain at the nexus of strong cities Mass transit Miles of mass Cost of public coverage1 transit track transport2Nothing is more fundamental to a city’s 26 Paris 26 19 10definition than its built environment. Yet 25 Chicago 20 21 8long before the Internet, people knew that ittakes more than bricks and mortar to make 24 New York 24 22 8a community: it’s the connections—the indi- 23 San Francisco 23 23 12vidual, social and economic networks—that 22 Madrid 17 18 17transform a thriving city into a global center 21 Tokyo 13 12 11and, more rarely, a metropolis of historicresonance. 20 London 14 16 2 20 Hong Kong 15 15 24It is no accident, therefore, that one of themost culturally evocative icons of each of the 18 Seoul 19 13 23top four cities in this category (in ascending 17 Mexico City 10 9 26order) is its respective transport system: San 17 Stockholm 25 24 4Francisco’s cable cars, New York’s subway,Chicago’s “L” and Paris’ Métro—a particularly 15 Beijing 8 7 25apt example of municipal infrastructure 14 Sydney 12 26 1becoming a part of, and reinforcing, a city’s 13 Moscow 21 17 21cultural identity. (Although it is now mostly 12 Shanghai 9 11 15tourists who ride them, cable cars remainemblematic of San Francisco’s robust 12 Toronto 16 20 3transit network.) 10 Singapore 11 10 13 9 Berlin 22 25 5Still, an iconic rapid transit systemdoes not ensure optimal performance in this 8 Abu Dhabi 2 2 19category. Moscow has one of the most cel- 7 Istanbul 4 4 20ebrated metros in the world—and does very 6 Los Angeles 7 14 14well in cost and coverage of mass transit—but just misses the top half of cities here. 5 Houston 3 3 18(If nothing else, traffic above ground should 4 Santiago 5 8 22ideally, flow as well as traffic below the 3 Mumbai 18 6 6surface; Moscow, however, is less effectivein dealing with its traffic congestion than 3 São Paulo 6 5 16most cities and is tied for last in the number 1 Johannesburg 2 2 9of licensed taxis.)On the other hand, Sydney, not known formass transit, scores highest in miles of track,while Stockholm scores second in coverage,just below Paris. Unsurprisingly, Stockholmalso is tied with Singapore at the very top for down the cost of mass transit and also is first tively higher cost of transport is acceptable ifalleviating traffic congestion, as both cities in licensed taxis, which are widely considered the system provides access and convenienceare famous, each in its own way, for their part of public transport (because of the low to citizens. (See discussion of indicator cor-commitment to sustainable urban develop- fares) and, therefore, used to supplement the relations on pages 18-19 and customizablement—which, in this case, means congestion city’s transportation needs. heat maps for the 66 variables on www.pwc.charges and, in Singapore at least, severe con- com/cities.)straints on vehicle ownership (see page 68). Cost of public transport, it should be noted, shows the strongest negative correla- New York leads in aircraft movements, fol-While Mexico City’s metro system is the larg- tion with measures such as housing, quality lowed by Chicago, London, Paris and Sanest in Latin America, it has been operating for of living or literacy and enrollment of all Francisco. What is interesting about theseonly 40 years and, so, cannot compete with variables in this year’s report. In fact, it moves rankings is that Paris, Chicago, New Yorklonger established systems either in terms of in the opposite direction from them, tending and San Francisco also are, in that order,coverage or extent of track. Nonetheless, the to fall as they rise, which suggests that a rela- the leading cities in this indicator.Mexican capital leads the rankings in keeping Continues on page 4034 | Cities of Opportunity | PwC
    • Airport to CBD Licensed taxis Traffic congestion4 Aircraft movements Incoming/Outgoing Skyscraper Score access3 passenger flows construction activity5 22 24 18 23 23 3 168 22 11 18 25 22 12 159 10 7 12 26 25 24 158 22 8 24 22 16 6 156 24 19 18 16 17 8 154 15 17 18 21 24 21 152 18 15 18 24 26 16 149 22 12 18 10 15 18 149 12 23 9 12 14 20 145 14 26 2 14 8 25 134 16 22 26 4 4 9 134 26 18 2 20 21 6 133 24 6 24 9 10 17 129 17 2 9 17 13 11 128 12 14 12 19 19 16 127 8 9 21 15 9 26 127 13 20 26 8 12 13 126 8 10 24 7 6 6 113 6 25 21 2 3 24 104 9 5 9 13 11 24 99 5 3 9 18 20 3 93 4 4 21 11 18 10 92 3 21 12 1 2 8 82 3 16 4 6 1 20 80 3 13 9 5 7 16 80 25 2 4 3 5 3 55Each city’s score (here 168 to 55) is the sum of its rankings across variables. The city order from 26 to 1 High Highest rank in each variableis based on these scores. See maps on pages 18–19 for an overall indicator comparison. Medium1. Kilometers of mass transit track for every 100 square kilometers 4. The traffic congestion variable is taken from the 2009 Mercer Lowof developed and developable land area. Quality of Life Reports and adjusted using two additional sources. This reflects not only traffic congestion but also the modernity,2. Cost of public transport data refers to the cost for the longest reliability and efficiency of public transport—measures of a city’smass transit rail trip within the city boundaries. However, bus active management of the issue.trips are used for cities without rail systems. 5. A skyscraper is defined as any building 12 stories or greater3. Measure of the ease of using public transit to travel between a in height.city’s central business district and the international terminal of itsbusiest airport in terms of international passenger traffic. Cities withdirect rail links are preferred to those with express bus services.Cities with rail links with fewer transfers are ranked higher thanthose with more. Partnership for New York City | Cities of Opportunity | 35
    • The city-suburban conundrum:With all politics local, how can regions avoid getting lost in the sauce? While the suburbs may never In order to craft regional policies, into Manhattan hit a speed bump ignite the imagination in quite the the first step is understanding when the state governor in New dramatic way cities have—from what exactly constitutes a region. Jersey across the river decided the Berlin Alexanderplatz to Last Exit This seemingly straightforward project was not affordable. to Brooklyn, “Metropolis” to task is complicated by the fact “Slumdog Millionaire”, Carl that metropolitan regions are Intraregional competition adds Sandburg to Karl Marx—it is measured differently around the another difficult dimension to clear that cities no longer are world. The US and Canada focus the puzzle. A comparative study the lodestars of socioeconomic on commuting ties in determin- of greater Beijing and Berlin- activity they once were. Modern ing regional boundaries.1 Mexico Brandenburg that was presented urban thinking has to embrace weighs planning and political at an international conference of the regions into which big cities considerations, among others.2 planning professionals in 2008 are interwoven in order to Australia accounts for transport pointed out that even in the be effective. patterns, telephone traffic, retail capital region of China, a nation shopping, fresh goods marketing, with more central planning than provincial newspaper circulation most, Beijing competes fiercely and radio coverage when drawing 1. “OMB Bulletin No. 10-02: Update of Statisti-Modern urban thinking has to regional boundaries for cities in New South Wales, where Sydney cal Area Definitions and Guidance on Their Uses,” United States Office of Management andembrace the regions into which Budget, December 1, 2009, accessed January is located.3 10, 2011, http://www.whitehouse.gov/sites/ default/files/omb/assets/bulletins/b10-02.pdf;big cities are interwoven in order Policymakers interested in stimu- lating regional development also and “Information on Standard Geographical Clas- sification (SGC) 2006,” Statistics Canada, last modified August 18, 2008, http://www.statcan.to be effective. must contend with the reality that gc.ca/subjects-sujets/standard-norme/sgc- cgt/2006/2006-intro-fin-eng.htm. metropolitan regions often are 2. “Delimitación de las Zonas Metropolitanas de informal groupings of various ad- México 2005,” Secretariat of Social Develop- ment, National Population Council, and National ministratively separate localities. Institute for Statistics, Geography, and Informat- ics, November 2007, accessed January 10, These are often larger than any 2011, http://www.conapo.gob.mx/publicaciones/ But how can regional urban- individual cities but smaller than dzm2005/zm_2005.pdf. ism be managed in a world states or provinces.4 The techni- 3. Brian Pink, “Australian Standard Geographi- cal Classification (ASGC),” Australian Bureau of with overlapping jurisdictions; cal director of the São Paulo State Statistics, July 2010, accessed January 10, 2011, competing needs; and incom- Metropolitan Planning Public http://www.ausstats.abs.gov.au/Ausstats/sub- scriber.nsf/0/0001EA65CA16C1B9CA25779F001 plete, inconsistent measurements? Company noted in late 2006 that 79316/$File/12160_july%202010.pdf. Cities of Opportunity found it dealing with metropolitan prob- 4. Rui Antonio Rodrigues Ramos and nearly impossible to recreate our lems is significantly hampered by Antônio Nélson Rodrigues da Silva, “A Data-Driven Approach for the Definition of core cities study at the regional the absence of formal regional Metropolitan Regions,” University of Minho level. The analogous data do not governments in Brazil, especially Institutional Repository, accessed on January 10, 2011, http://repositorium.sdum.uminho.pt/ exist. However, our research did due to difficulties securing fund- bitstream/1822/2320/1/1c2.pdf. reveal some useful insights into ing for infrastructure projects that 5. Eloisa Rolim, Technical Director, São Paulo State Metropolitan Planning Public Company, challenges and opportunities for extend beyond local borders.5 “Metropolitan Regions in Brazil: A Model of the world’s key urban regions. These problems are not isolated to Shared Management,” November 29, 2006, obtained via the World Bank, accessed January emerging economies. In New York 10, 2011, http://info.worldbank.org/etools/docs/ City, a plan to add another tunnel library/238536/13_Summary_Sao_Paulo.pdf.36 | Cities of Opportunity | PwC
    • Chicagoland sprawls for miles beyond the heart of the city and its municipal borders and into two neighboring states. Partnership for New York City | Cities of Opportunity | 37
    • with nearby municipalities.6 For most effectively.8 As a result of Spatial Planning Departmentregions that cross over mid-level this heightened focus on regions, (JSPD), thereby carving outadministrative divisions, the more policymakers are embracing a specific policy area for jointproblem goes a step further. An regional governmental models. management while otherwiseOctober 2010 report from the remaining independent.11 JSPDCenter for American Progress Some areas have taken the most does not replace but is interwo-highlighted several ways that straightforward approach to ven into both local governments.12state-oriented policymaking can regional governance: creating JSPD has facilitated cooperationrun counter to regional economic an administrative division that between Berlin and Brandenburgand social needs in the 44 met- includes both the city center and on crucial regional projects suchropolitan statistical areas in the its surroundings. Mumbai was as laying the groundwork for theUS that cross over state boundar- a pioneer in this regard, hav- new Berlin-Brandenburg Interna-ies, which include the regions ing merged its suburbs into the tional airport in Schönefeld,surrounding New York City and municipality over the course of on the southeastern outskirtsChicago.7 In the end, intraregional the 1950s.9 However, this is by of Berlin.13competition can make policy- no means the only structuralmaking and funding for regional arrangement that is conducive to The private sector is getting inprojects a free-for-all with unpre- metropolitan development. The on the act as well, thanks to thedictable outcomes. Organisation for Economic Coop- increasing realization that the eration and Development (OECD) problems and solutions of citiesHowever, solutions are bub- contends that there is no optimal and regions will not be craftedbling up as awareness of regional governance strategy unilaterally. The European Union’sthe critical importance of a and instead advocates that each “Joining Forces” study under-regional focus broadens. The metropolitan area develops its scored the importance of localofficials and policy advisors from own responses tailored to specific and regional authorities actively50 metropolitan areas across regional challenges.10 seeking opportunities to involveEurope that comprise the Network the private sector in metropolitan Other cities have combined some governance.14 Businesses alsoof European Metropolitan Regions but not all of their governmental have taken the initiative to getand Areas (METREX) have backed functions with satellite localities. involved in regional developmentthe notion that metropolitan areas Berlin joined with neighboring on their own. For example, theare now the level at which many Brandenburg to create the Joint Ford Foundation’s “Metropolitanurban objectives can be realizedThe private sector is getting in on the act as well,thanks to the increasing realization that the problemsand solutions of cities and regions will not becrafted unilaterally. Sydney harbor.38 | Cities of Opportunity | PwC
    • Opportunity” grant-making and additionally has stressed the 10. Lamia Kamal-Chaoui, “Metropolitan Gov- ernance in OECD Countries,” OECD Territorialprogram has launched a $200 need for strategies that promote Reviews and Governance Division, accessed January 10, 2011, http://www.oecd.org/million, five-year campaign to sustainability and the integration dataoecd/59/40/6100078.pdf.promote economic growth in US of infrastructure and services.17 11. “About Joint Spatial Planning,” Berlin-metropolitan areas by integrating Brandenburg Joint Spatial Planning Department,housing, transportation and land In the end, modern urban think- last modified January 2011, http://gl.berlin- brandenburg.de/ueber/index.en.html. See alsouse policies.15 ing can only be effective if it is Tang and Xu, “Regional Governance of the Capi- framed in terms of cohesive urban tal Metropolitan Region.”So what should all of the regions. And here John Updike, 12. Ibid.players in regional develop- who celebrated the passions of 13. Tang and Xu, “Regional Governance of the Capital Metropolitan Region.” See also “Aboutment be working toward? A the suburbs but rooted for his Joint Spatial Planning” and “Airport BBI,” BerlinWorld Bank-commissioned study local city team, the Boston Red Airports, accessed January 11, 2011, http://www. berlin-airport.de/EN/UeberUns/index.html.of regions in the Yangtze Basin Sox, may be setting the right tone 14. “Joining Forces: Final Outputs - Fact Sheet,”found that effective metropolitan for the future. European Union URBACT Program, May 2010, accessed January 11, 2011, http://urbact.eu/management requires satisfying fileadmin/Projects/Joining_Forces/documents_the demand for housing and 6. Yan Tang and Jingquan Xu, “Regional Gov- media/JoiningForces-FinalOutput-May2010.pdf.buildings; constructing and ernance of the Capital Metropolitan Region: A 15. “Helping America’s Metropolitan Regions Comparative Study of Berlin-Brandenburg and Build Prosperity and Expand Innovation,” Fordmaintaining affordable, safe and Beijing” (paper presented at the 44th annual Foundation, May 18, 2010, accessed January 11,reliable transport, water, telecom- congress of the International Society of City and Regional Planners, 2008), accessed January 10, 2011, http://www.fordfoundation.org/ issues/metropolitan-opportunity/promoting-munications and utilities infra- 2011, http://www.isocarp.net/Data/case_stud- metropolitan-land-use-innovation/news?id=375. ies/1242.pdf.structures; ensuring that firms 16. “Context: What Is a Metropolitan Region? 7. Brian A. Sponsler, Gregory S. Kienzl and Alexislocate in the region and have ac- J. Wesaw, “Easy Come, EZ-GO: A Federal Role in Why Do They Matter? What Is “Effective Met- ropolitan Management”? or What Performancecess to supply chains and output Removing Jurisdictional Impediments to College Should We Be Aiming For?” (presentation pre- Education,” Center for American Progress, Octo- pared by Chreod Group, Inc. for the World Bank,markets for their products after ber 2010, obtained via the Institute for Higher May 24, 2007), obtained via the World Bank,doing so; and minimizing any Education Policy, accessed January 10, 2011, accessed January 11, 2011, http://siteresources. http://www.ihep.org/assets/files/publications/a-f/ worldbank.org/INTURBANDEVELOPMENT/economic disadvantages associ- (Report)_Easy_Come__EZ-GO.pdf. Resources/336387-1180031098365/Leman.pdf.ated with regionalization for indi- 8. “METREX Brochure: Making a Metropolitan 17. “METREX Impressions: The First Ten Yearsvidual cities within the region.16 Contribution,” The Network of European Metro- 1996 – 2006,” The Network of European Met- politan Regions and Areas, accessed January 10, ropolitan Regions and Areas, 2006, accessedThese principles have internation- 2011, http://www.eurometrex.org/Docs/About/ January 11, 2011, http://www.eurometrex.org/al appeal. METREX has laid out a EN_Brochure.pdf. Docs/About/EN_METREX_Impressions.pdf.similar set of key issues that affect 9. “Evolution of the Corporation,” Municipal Corporation of Greater Mumbai, accessed Janu-the competitiveness and cohesion ary 11, 2011, http://www.mcgm.gov.in/irj/portal/ anonymous/qlhismilestone.of European urbanized areas
    • Continued from page 34 The sky above, the streets below: One size doesThis variable appears to confirm not fit all when it comes to cityscapeswhat most people understandintuitively: World-class infrastructure playsan important part in bestowing world-classstatus to a city. (Although it also should besaid that maintaining world-class statusdemands continually upgrading one’s It has been quite a while in the neighborhoods have contributedinfrastructure—and airport facilities, in popular imagination since the to consistently putting Torontoparticular—especially when so many cities thought of a skyline conjured toward the top of our study onin Asia and Latin America are competing up the image of the “apparent measures of demographics andwith the established cities of Europe and juncture of earth and sky, an livability, including a first-placeNorth America for global prominence.) outline … against the background finish in the quality of living vari- of the sky.”1 Most of us associ- able this year. More than a centerJust as one would expect given their mature ate skylines with the dramatic of global business and financeglobal presence, London, New York, Paris and contours of cities like Hong Kong alone, Toronto is a communityChicago also are among the top five cities and New York. But the fact that in which people want to livein incoming/outgoing passenger flows, with Paris led the transportation and and expect to lead rich andTokyo joining the group here (in lieu of San infrastructure category this year, meaningful lives.Francisco). Nonetheless, Beijing and Johan- although it fell near the bottom innesburg are on top of the rankings in airport What is clear is that all human skyscraper construction, promptsto CBD access. In taking the lead in this communities, but particularly the question: What type of skylinevariable, Beijing and Johannesburg confirm cities, which are the most com- defines a city today?that newer cities—or, as in the Chinese plex, require multiple systems ofcapital’s case, cities with a more recent return The answer is not made any connectivity. Just getting aroundto global prominence—can leapfrog ahead easier by the city leading the efficiently, comfortably andof more established cities to put in place the rankings in skyscraper con- safely—to work, to the theater,infrastructure that will ensure future success. struction, Toronto. Even as its to a stadium, to a café or restau-Finally, another city that has also recently business district has sprouted rant—is a fundamental act ofentered the global arena with great confi- with skyscrapers, its residential 1. http://www.merriam-webster.com/dictionary/dence and effect, Toronto, leads in skyscraper skyline.construction activity.In closing, it is difficult to avoid one lastobservation: By the signs of this indicatorat least, while the FIFA World CupTM held inSouth Africa last year certainly expeditedessential infrastructural projects in Johannes-burg (Phase 1 of the Gautrain Rapid RailLink to the airport and, even more important,the Rea Vaya Bus Rapid Transit System), thecity still has much to do to improve the dailylives of its citizens. Aerial view overlooking Wanchai, Hong Kong.40 | Cities of Opportunity | PwC
    • Stockholm, a busy regional hub with a low-density lifestyle.cohesion and connection in the world of other neighborhoods. On stunning views can be had in what a city may be—than a sky-urban experience. High density the contrary, living in a low-rise any direction, up or down the line does, which probably is whyis thoroughly debilitating when it city such as Paris, Berlin, Madrid canals, throughout Amsterdam’s both admirers of Jane Jacobs andleads to isolation and a feeling of or Stockholm does not necessarily Nine Streets. Rem Koolhaas agree on the term.entrapment (as all urban planners lead to enhanced connections Put another way, a skyline is alearned following the experience between people if there are not And is there a more magnificent, quantitative measurement thaton both sides of the Atlantic other, more important bonds to more historically awe-inspiring becomes significant only when itwith public housing in the fifties bring them together. Under the vista in any city than that of the is transformed, as New York’s wasand sixties). circumstances, a “skyline,” and Golden Horn, whether one finds in the early decades of the previ- the values ascribed to it, seems oneself on Istanbul’s Asian or ous century, into a shared emblemThe reason why many European to be less relevant to the urban European shores? Finally, and of sophistication, imagination,(and other) cities have opted experience than the more flexible most famously, having been sociability, ambition, and promise.to restrict skyscraper construc- notion of a “cityscape.” reproduced in countless movies The cityscape of tomorrow willtion in the heart of their historic (and certainly destined to be end- surely come in different sizes.centers is because the phrase No one would argue that Hong lessly reproduced on postcards),“human scale” has an undeniable Kong’s skyline is not impressive; is the vista up or down the Seineresonance to most people. On the or that the extraordinary sky- from the Pont des Arts. It mayother hand, New York proved a scraper construction throughout have become a tourist cliché bylong time ago that humans have Asia’s major cities has not created now, but it remains, year in andan extraordinary capacity to skylines of considerable verve and year out, a genuinely spectaculardefine for themselves what is a cultural presence; or that a mas- cityscape.comfortable scale for modern life. sive spire rising out of a Middle Eastern desert is not exhilarating. If nothing else, a cityscape revealsResiding in a Manhattan high-rise But the view of San Francisco more about a city’s sense of itselfdoes not preclude being extremely Bay from any number of spots —and perhaps even of a commu-connected, not only to your on Pacific Heights is breathtaking. nal aesthetic and an openness toneighborhood but to an entire Much less open but equally diverse, evolving possibilities of Partnership for New York City | Cities of Opportunity | 41
    • Sustainablemobility goesback to thefuture… as Klaus Baur and GuentherKrug explain why railways makeso much sense for the planetand its citiesWith cities and surrounding met- What advances are occurring now limited space and little impact on What should a developed cityropolitan beltways choking on in transportation that will change the environment. In the past, it do to become more environmen-auto traffic and fumes, it appears life in cities and the metropolitan was very important to have your tally friendly and to have morea 200-year-old solution is chart- beltways around them? own car, to be in your own space. efficient transportation?ing a sensible, safe track ahead. Now in cities, there is an empha- KB: It’s important that people KB: We see more congestion dueIntra- and intercity rail transport sis on clean, efficient, comfortable actually live in the city. And it’s a to the use of cars, resulting in pol-is discussed here by Klaus Baur, transportation. In many European problem if the suburbs are for the lution and other negative effects.chairman of Bombardier Trans- cities, where mass transit had poorest people and the city center The solution is public transporta-portation Germany, and Guenther been a bit neglected, it now has only for business. A city must be tion, and that comes in a varietyKrug, a member of the Berlin become efficient and comfortable. alive, not just during the work- of modes—trams for smaller citiesParliament and the Council of or smaller numbers of passengers; day but also during the day andEurope as well as a senior advisor How do you see the mix changing the metro for moving a lot of night. But to attract people to liveto Bombardier. Speaking in among cars, bicycles, buses, people quickly within a city; and in cities, you need to have cleanBerlin at the world’s largest rail trains and trams? commuter or regional rail links air, and you need green areas andtechnology fair, InnoTrans, for connecting big cities with their KB: I think that we will have recreation opportunities. And youBaur and Krug also discuss outer regions. more park-and-ride and less car need mobility.Berlin’s renaissance. traffic in the cities. We will have Why are trains the wave of more of a combination of walking GK: Yes. Managing the right mix the future now? and bicycle riding. of business and living areas in the city center is a major challenge. KB: They can transport huge It’s important for businesses numbers of people, using very42 | Cities of Opportunity | PwC
    • Klaus Baur, left, and Guenther Krug stand against the ZEFIRO—the train that will drive China’s high-speed rail network toward what Bombardier calls “the fastest way to save the planet.”themselves to think about manag- there is an airport, you have toing the mix of business and living have connections from the metrosareas in the city center. or commuter trains directly to the In the past, it was very importantHow is development different airport. We have some examples in Germany, like Frankfurt, where to have your own car, to be in yourin fast-growing cities in Asia,for instance? a high-speed train goes directly to the airport, and commuter trains own space. Now in cities, there isKB: In China, you see a lot of also stop there. You can easily get an emphasis on clean, efficient,metro systems being built. Indiaalso is starting to make progress to the airport even from outlying cities. And since intercity connec- comfortable transportation.on this. But in other areas in Asiawith megacities, it is going very tions go from city center to city center, they are faster than planes In many European cities, whereslowly because it’s expensive. As for distances between cities of up to 650 kilometers because you mass transit had been a bitan industry, we have to developsystems that are more affordable. save the long trip to the airports neglected, it now has becomeMany say the world soon will be and the pre-boarding time. efficient and comfortable.one large metropolitan beltway. Where else can you make thoseWhat needs to be done about kinds of airport connections? Klaus Baurintercity transportation? KB: In London, they have a veryKB: You have to connect the well-connected airport, and intransport systems very well. If Partnership for New York City | Cities of Opportunity | 43
    • It’s a big challenge to build a multi-cultural society.As we say, we give a lot to immigrants, but we also askfor a lot. Giving and taking, that’s the process politicalleaders have to organize.Guenther KrugFrance, there’s Charles de Gaulle. in Berlin, for example, where you capital, and each state wants its the wall came down, there wasAlso in Berlin, there’s a new air- can walk through the whole train. capital in the high-speed network. tremendous development. I haveport being built just south of town There are no doors between cars. been living in Berlin since ’65.in Schönefeld, and it includes So if you feel uncomfortable KB: The solution is very fast I knew the Berlin with the wall,a rail station. You will have an or alone, you can walk to the regional and commuter transport I know the Berlin without theintercity line and regional and front part of the train, where the feeding into the high-speed stops wall, and now I see this mix-commuter connections. driver is. in order not to slow down the ture of ideas, of people coming very high-speed system. Real from west and east, north andGK: The new Berlin airport, Do we need a consciousness high-speed trains run as fast as south. And then you have specialopening in 2012, will have high- change where government, 350 kilometers per hour, take industries. Berlin is a centerspeed and commuter rail service. business and citizens realize around 20 kilometers to acceler- of creativity, with more thanThat means every 15 minutes, that trains should be a greater ate to full speed and around 10 100,000 employed in IT, filmyou’ll have a connection to the priority than highways? kilometers to come to a halt and a lot of media.city center via two routes. But a from full speed. KB: Very often, the politicalrecent discussion in the Parlia- Many cities today are seeing people say, “yes, we need trains,” So it’s an issue with thement was not about the good tremendous immigration. What but there still is an emphasis on connections?connections we will have but is Berlin doing to help absorb roads. So it’s a mixture. Theabout the noise from the much GK: Yes, that’s what we need to people from around the world? priorities are slowly changing.higher number of planes taking have. We need fast trains from GK: This is a big challenge foroff and landing GK: Financially, a good city point to point, but, then, on the the city’s political leaders, who transport system cannot be paid end points, we need a good must work to integrate hundredsSo the protest is about for solely by the citizens. In connection to the metro or of thousands of people comingthe planes? Berlin, subsidies go to the BVG other feeder lines. from other countries. On the oneKB: Yes, but there is a similar [Berlin Transport Services]. Local hand, it’s a very big plus—198discussion about trains, both government must make keeping Can such connections ever languages are spoken in Berlin.passenger and freight. In many prices low a priority. If you don’t be established in the US? On the other hand, it is a hugerail systems, walls are built along subsidize the tickets and they are KB: Well, the US is larger and the task for politicians to organizethe tracks. Noise control is very too expensive, people say “No, distances are longer. But, still, education, equal opportunity andimportant so that people accept I’ll take my car.” there are routes where you can integration to help understandtrains, or planes or any mode get to your destination within and live with different culturesof transport. If you were the mayor of a two or three hours, and that and traditions. crowded developing city, São is attractive.Is the renaissance of trains today Paulo, for example, what would It is a big challenge to form amore a shift in awareness than a you do about transportation? Berlin is brimming with energy multi-cultural society. As we say,change in technology? KB: Find the financing to build and optimism. What explains we give a lot—but we also ask forGK: There is clearly a shift in a metros and commuter train Berlin’s vitality? a lot—from immigrants. Givingawareness in Europe driven by system, either underground or and taking, that’s the process GK: It’s a melting pot of differentthe recognition of the environ- elevated. Rail transit is absolutely political leaders have to organize. systems, different cultures. Aftermental friendliness of rail travel. essential as a backbone of trans-Rail causes only 1% of all CO2 port and economic development.emissions of the transport sectorcompared with 74% caused by In America, it’s hard to get high-road transport. That, together speed rail because everybody This interview has beenwith rising fuel prices, makes wants their stop, say every 20 condensed for publication in the miles, and a fast train can’t keep report. To read all full-lengthpeople rethink. making stops. Is that a problem interviews, please visit ourIt’s very important not only that elsewhere? website: www.pwc.com/cities.you have no accidents but that GK: We have this same discus-people feel safe. Take the metro sion in Germany because we have different states, and each has its44 | Cities of Opportunity | PwC
    • Cities divide neatly here between those To gauge the relative health, safety andHealth, safety and security: enjoying long-term stability and relative security of a city, we measured personal affluence and those still striving to either risks, including crime, as well as the physicalTaking the pulse of city life— get ahead or establish a new, resilient fabric safety and number of hospitals a city offers toand death of life for themselves. Top cities Stockholm, residents and visitors. Quality and availability Toronto, Chicago and San Francisco perform of healthcare at various stages of life also are very well across a range of measures; lower factored in. ones are similarly consistent—though in the inverse direction—across the variables. Based on national data, Tokyo tops Correlation analyses (see page 16) show a the list of health system performance when strong positive relationship between cities life expectancy is compared with the cost of with robust scores in health, safety and healthcare per person. However, Japan pales security and other good traits like intellectual next to the UK’s access to caregivers and pal- capital and innovation and demographics liatives when end-of-life care is measured by and livability (87% and 84%, respectively)— a wide range of variables (not factoring in a essentially showing “healthy cities” also society’s traditional family care for the elderly tend to have good quality of life and and dying). It is worth noting that delivery of productive energy. healthcare through national plans add a vari- able into the subtext of this equation. Hospitals Health system End-of-life care2 Crime Political environment Score performance1 26 Stockholm 24 24 16 23 26 113 25 Toronto 20 22 23 23 24 112 24 Chicago 26 15 23 23 20 107 23 San Francisco 23 15 23 23 20 104 23 Sydney 17 17 25 23 22 104 21 Houston 22 15 23 23 20 103 20 Berlin 12 21 24 16 25 98 19 Singapore 16 25 15 26 15 97 18 New York 19 15 23 16 20 93 17 Tokyo 6 26 13 23 23 91 16 London 15 18 26 16 15 90 15 Los Angeles 21 15 23 10 20 89 14 Abu Dhabi 25 19 9 26 7 86 13 Paris 10 20 17 16 22 85 12 Madrid 13 23 12 16 15 79 11 Hong Kong 4 10 14 26 12 66 10 Seoul 5 16 10 16 11 58 9 Johannesburg 18 1 11 4 8 42 8 Mexico City 14 6 6 4 11 41 7 Beijing 9 10 5 10 3 37 7 Shanghai 8 10 5 10 4 37 5 Santiago 1 5 3 10 11 30 4 Istanbul 2 7 8 5 3 25 4 Mumbai 11 2 1 6 5 25 2 São Paulo 7 4 3 1 6 21 1 Moscow 3 3 7 4 1 18Each city’s score (here 113 to 18) is the sum of its rankings across variables. The city order from 26 to 1 High Highest rank in each variableis based on these scores. See maps on pages 18–19 for an overall indicator comparison. Medium1. Measurement of a country’s health system performance made 2. The end-of-life care variable measures the provision of care for Lowby comparing healthy life expectancy with healthcare expenditures its citizens at the end of their lives using data across four areas,per capita in that country, adjusted for average years of education including basic healthcare environment, availability, cost and(years of education is strongly associated with the health of quality of care.populations in both developed and developing countries). Partnership for New York City | Cities of Opportunity | 45
    • Measuring, and judging, sustainable devel- Berlin is first this year, as compared withSustainability: A reordering opment is a complicated process, requiring third-place Frankfurt (which Germany’s capi- continual reassessment. This year, we refined tal replaced) last year. Sydney ranks secondreflects policy, action and the our data and analysis regarding sustainability this year, as it did in 2009. Stockholm now ischallenges of comparison by eliminating one variable (green cities) ranked third, although it ranked first last year. from last year’s study, transferring another It is only in fourth place that we see the first (green space as a percent of city area) to of several noteworthy shifts. a different indicator discussion (lifestyle assets), adding renewable energy consump- Johannesburg now ranks fourth, having tion and further clarifying our definitions by moved up six places from last year, and changing the air quality variable to air pollu- does extremely well in three out of the four tion so it is clear what we are measuring. variables. Moreover, Mumbai now is tied with Toronto for fifth, having moved up an Some surprises emerged, although the astounding 15 slots from last year, when it very top rankings have changed relatively was second from the bottom (and Toronto little, with cities known for their active environmental policies performing best. Continues on page 49 Recycled waste Renewable energy Air pollution City carbon footprint Score consumption26 Berlin 23 15 24 24 8625 Sydney 17 16 24 26 8324 Stockholm 13 22 26 20 8123 Johannesburg 8 23 24 23 7822 Mumbai 20 26 6 19 7122 Toronto 24 14 26 7 7120 San Francisco 25 12 24 8 6919 São Paulo 4 25 13 25 6718 Santiago 9 24 6 22 6117 Madrid 5 13 24 16 5816 Istanbul 2 19 24 12 5716 Paris 7 18 16 16 5714 Seoul 26 7 13 10 5613 Shanghai 21 21 9 3 5412 London 13 6 16 17 5212 Singapore 16 1 24 11 5210 New York 14 12 10 13 499 Beijing 18 21 6 2 479 Hong Kong 23 4 6 14 477 Los Angeles 16 12 9 9 466 Tokyo 6 5 16 18 455 Mexico City 4 17 1 21 434 Chicago 11 12 13 6 423 Houston 10 12 9 4 352 Moscow 19 3 6 5 331 Abu Dhabi 1 2 24 1 28Each city’s score (here 86 to 28) is the sum of its rankings across variables. The city order from 26 to 1 High Highest rank in each variableis based on these scores. See maps on pages 18–19 for an overall indicator comparison. Medium Low46 | Cities of Opportunity | PwC
    • Better cities, better livesPlanning for sustainability takes the first, big step toward resultsHalf of the world’s populationcurrently lives in cities, a propor-tion that will rise to 70% in lessthan 40 years.1 As cities nowaccount for roughly 60% to 80%of global greenhouse gas emis-sions,2 their combined action iscritical to the world’s responseto climate change. That explainswhy so many cities have mobi-lized to take the lead, not onlyin reducing the effects of climatechange but in creating genuinelysustainable patterns of economicgrowth and human development.Cities possess a definingcharacteristic—density.Urbanization plays the profoundecological function of concen-trating populations in extremelyrestricted geographical areas.Consequently, when cities decideto undertake widespread, long-term planning initiatives, theydo so on behalf of enormous Solar panels on Marina Barrage building in Singapore.numbers.And as the planet’s urbanizationincreases, so does the responsi-bility of policymakers in cities.Mayors, councilors and urbanauthorities worldwide have What binds all cities Revolution are growing obsolete cities in the developing world—recognized the need to channel today. Cities throughout the Istanbul, São Paulo, Mumbai, together is a common needthe demographic force of their world are not merely looking for Beijing—face infrastructural and, to abandon older models offellow citizens into a transforma- a different framework of growth. especially, resource constraints growth based mostly on industrialtive redefinition of sustainable They are planning for it and that cities like Stockholm or output without regard to thedevelopment.3 preparing its blueprints. Chicago need not worry about. quality of daily life. And here it is important to stress the central Still, we were impressed with theTransnational organizations such What follows is a representative point that often is lost in discuss- commitment precisely of thoseas the C40 group, ICLEI and the sampling of the plans that have ing sustainable development: cities in emerging economiesWorld Mayors Council on Climate been assembled in some of the namely, that even if climate to move forward with plans forChange are creating a critical 26 cities in this year’s study so change were not an issue, virtu- sustainable growth despite themass around joint sustainability as to present an overview of the ally all the other factors defining daunting challenges they faceefforts.4 Although no two cities current issues and difficulties viable growth remain so.5 in providing their citizens withare identical, climate change has faced by cities and the solutions the most basic services, suchforced common challenges on they are developing. Water and energy consumption, as electricity or potable water.most cities: decreasing green- resource extraction, polluted air Clearly, the mayors and council-house emissions, advancing As might be expected, many and contaminated water, traffic ors of these cities understand therenewable energy use, enhancing mature economies—from Sydney congestion, mounting waste linkage between fundamentalgreen spaces, modernizing and and Singapore to Berlin, Toronto from increasing (and increasingly development and sustainableexpanding mass transit systems, and San Francisco—have issued affluent) populations: All of these growth: Providing potable waterimproving air and water quality, comprehensive and ambitious issues would exist even without today does not guarantee that theand reducing waste. plans for sustainable growth. climate change. Models of devel- wells will not run dry tomorrow. opment based on the Industrial Nor will it surprise anyone that Partnership for New York City | Cities of Opportunity | 47
    • Johannesburg illustrates more planning, and building, of honored by Harvard’s Kennedy that its second-mover advantagehow progress can be made in a transportation infrastructure. School of Government with an will allow it to learn from thecity that is not only part of the environmental prize.10 Mean- experiences of others and developdeveloping world but faces deep- Mexico City’s mayor, Marcelo while, the city’s environmental a comprehensive growth plan toly rooted social and economic Ebrard, has not only made cli- conditions are improving. While avoid their mistakes. While Planchallenges.6 Joburg 2030, Johan- mate change a priority but has ozone levels were above national 2030 is still in its inception, thenesburg’s plan, is fundamentally issued a far-reaching, 15-year standards more than 92% of the hope is that it will be a prototypedifferent in purpose from, say, Green Plan (Plan Verde). He was year in 1990, the duration of for comparably growing cities.New York City’s proposal. Johan- named chair of the World Mayors ozone-laden days now has fallennesburg struggles with enormous Council on Climate Change in to approximately 50%, and other Since 2000, Shanghai hasbarriers to normal growth such 2009 and awarded the Council’s pollutants also are declining.11 issued continuous three-yearas high crime, poor public health World Mayor Prize in 2010 for environmental plans focused on(including an HIV/AIDS crisis) his outstanding leadership on Abu Dhabi is located in one of reducing air and river pollution,and inadequate infrastructure. climate and other issues.9 It may the harshest environments on the improving waste treatment andAs a result, its plan points to two not be coincidental that Mayor planet.12 Moreover, it is the capi- fostering greener construction,fundamental criteria for sustain- Ebrard produced Mexico City’s tal of the United Arab Emirates, among other actions.13 Overable development: increased environmental blueprint. He is a the country with the second high- the last 10 years, it also has de-economic growth and improved graduate of the École Nationale est per capita carbon emissions creased its dependence on coal,quality of life.7 d’Administration, the famous in the world. Its explosive growth cutting the proportion of coal training ground of French govern- as a business and financial center used as a primary energy sourceSpecific strategies cover crime, ment and business leaders, in has led to predictable problems, to 51.3% in 2007 from 65% inlabor skills and investment in which planning is considered the from traffic congestion to waste 2000.14 Last, in order to relievetelecommunications, utilities foundation of all policymaking. recycling. All indications are that traffic congestion, Shanghai wasand transport.8 Transportation rapid population growth will the first city in China to imple-planning is being determined The Green Plan has received continue in the next two decades. ment a monthly auction systemby the pragmatic assumption of international recognition. The for a fixed number of licenses toan economically dynamic city in Clinton Global Initiative pledged The city’s answer is Plan Abu own and operate private vehicles.which higher incomes will result $200 million to help Mexico City Dhabi 2030, which integrates This policy has been in placein both more private cars and meet its greenhouse gas emission economic, social and cultural since 1986.greater reliance on public trans- targets, while Metrobus, the city’s criteria into all development deci-port, which, in turn, will require bus rapid transit system, was sions. Abu Dhabi clearly expects
    • Finally, New York City’s use, among other regulations, in Politics being the art of the Nottingham Declaration group in Great Britain and the EU’s EUCO2 80/50 Project and CovenantPlaNYC 2030, a comprehensive order to lower emissions (80% possible, however, temporary of Mayors.planning and development strat- of which come from the city’s failure doesn’t preclude ultimate 5. One consequence of climate change that isegy created in 2007 under Mayor building stock). Another success success. That is why environ- particularly pernicious for cities, however, is rising sea levels. Access to the sea is part and parcel ofMichael Bloomberg to meet the concerned brownfields. Last year, mental sustainability—which, the history of human trade and cultural exchange,city’s projected increase in popu- New York became the first city in because of the required changes and most of the world’s great cities are located in coastal areas (or, like Paris or Beijing, in riparianlation by 2030, integrates many the nation to create a municipally in lifestyle, quickly becomes zones not far from major seacoasts). Indeed, the first global review of urban settlements foundaspects of sustainable growth. run program to accelerate site social transformation—demands that 58% of Europe’s largest cities (metropolitanBut what makes PlaNYC 2030 a cleanup, create jobs and reclaim planning to ensure that everyone areas of more than 5 million) and 80% of the largest cities in North America were located inrobust statement of intentions is industrial spaces. understands why they are being Low Elevation Coastal Zones (LECZ), less thanits requirement of annual, legally asked to change their lives and 10 meters above sea level. Australia was even more threatened by rising sea levels, as 100%mandated progress reports, However, some of the city’s shoulder additional financial of its urban areas of at least half a million peoplemaking it a forceful instrument initiatives have failed because of burdens. The good news is that lay in LECZs. See Table 5 in Gordon McGrana- han, Deborah Balk and Bridget Anderson, “Theof urban sustainability policy in political resistance at higher lev- from Johannesburg to New rising tide: assessing the risks of climate changea mature city. els of government. For instance, York City, the mayors who have and human settlements in low elevation coastal zones,” Environment and Urbanization, Vol. 19, legislation requiring taxis to produced the most dynamic and No. 1, April 2007, p. 30, International Institute forThe plan includes 127 initiatives meet more stringent emissions effective sustainability plans Environment and Development.in areas such as energy, hous- standards than those set by the have done so through maximum 6. See http://www.joburg-archive. co.za/2002/2030-shortversion.pdf.ing, open space, climate change, federal government was rejected engagement with their fellow 7. Ibid.transportation and water, with in federal court after being citizens so that, in the end, when 8. http://www.joburg-archive.co.za/2002/2030-specific targets for each, includ- challenged by the taxi industry. change is achieved, it proves to strategy.pdf.ing monitoring and evaluation The US Supreme Court recently be permanent. 9. http://www.worldmayorscouncil.org/.requirements. The entire plan declined to hear the city’s appeal. 10. http://www.mexicocityexperience.com/itself is required by law to be San Francisco managed to pass 1. See the United Nations Population Database, green_living/. 2009. For the calculation regarding 2050, seerevised every four years. a similar bill only because it had Kamal-Chaoui, Lamia and Alexis Robert (eds.), 11. http://www.citymayors.com/environment/ mexico-green-plan.html. the industry’s support from the Competitive Cities and Climate Change, OECD Regional Development Working Papers N° 2,Accomplishments already have start. And congestion pricing 2009, OECD publishing, p. 22, © OECD. 12. To name an obvious difficulty, its desert ter- rain contains few natural freshwater resources.been realized. In 2009, the city stalled in the New York State 2. Competitive Cities, p. 9. 13. http://www.echinacities.com/shanghai/required buildings of a certain legislature over what was seen city-in-pulse/shanghai-invests-3-of-annual-gdp- 3. Ibid., p. 78.size to perform lighting upgrades as an elitist tax to enter the heart to-promote-environmental.html. 4. Municipalities also have come together onand benchmark their energy of the city (see pages 34-35). national and regional levels, such as the 14. http://www.unep.org/pdf/SHANGHAI_ REPORT_FullReport.pdf. Continued from page 46 Finally, with the singular exception of San Francisco, which remains in the forefront of was fourth from the top). In fact, Mumbai urban sustainability, the four largest cities in now ranks first in renewable energy the US fall to the bottom 10 of this ranking consumption. (with Chicago and Houston squeezed in More generally, three significant patterns between Mexico City and Moscow). Unfortu- occur in this year’s study. First, four cities nately, American cities, to a real degree, are from the developing world—São Paulo victims of gridlock on the national level when and Santiago joining Johannesburg and it comes to environmental policy. Nonethe- Mumbai—now are in the top 10 (as opposed less, they must, sooner or later, confront the to only one last year). Second, three major issue of sustainability more effectively if they Western cities (Paris, London and New York) are to maintain their global pre-eminence in have fallen out of the top 10, partly because perception and fact. of the change in variables this year. Shanghai joined more than 100 other Chinese cities to promote “no car day,” permitting only taxis downtown and en- couraging residents to take mass transit, bike or walk to fight pollution. Partnership for New York City | Cities of Opportunity | 49
    • Lighting theworld’s citieswith greenpower... is the mission of Kerry Zhou andChina’s Goldwind Technologies Goldwind Science & Technology How far is China from the the most from the consequences Co. is a Xinjiang-based trail- dream of powering its cities of environmental pollution and blazer in the world of renewable with green energy? partly because they’re more finan- energy. Founded in 1998, it has cially capable. Industry-intensive China still relies on coal-fired become a leading manufacturer cities like these also are more power generation, and renew- of wind turbines, with opera- likely to act because their demand ables, excluding hydro, account tions in Europe, Asia, Australia for power is high, which for only 1%-2% of the total and the Americas. In addition to incentivizes them to take action. energy mix. It’s projected that designing cutting-edge turbines, wind power will account for 11% Goldwind does everything from What needs to happen to make of China’s total power capacity by the vision of green-powered operating wind farms to develop- 2020, rising to 20% by 2030. This ing smart-grid solutions that can cities a reality? still is relatively low compared make cities more energy efficient. with a country like Denmark. First, the government needs to Kerry Zhou, Goldwind’s director provide stronger support for green of strategy and planning, speaks Which Chinese cities will drive power—for example, by giving here about the challenges of this trend toward renewable mandatory access to the grid and powering cities with green energy energy? higher subsidies so the green and about how to make this power sector can grow quicker Megacities like Beijing and environmental dream an while lowering its cost to a level Shanghai should take the lead in economic reality. comparable with that of conven- applying new, green technologies. tional power. Second, companies That’s partly because they suffer50 | Cities of Opportunity | PwC
    • A worker walks between wind energy generators at a Goldwind factory in Urumqi, China.need to further improve their mandatory access to the grid.technologies to meet the require- In contrast, the US governmentments and standards of grid could offer only some preferential Megacities like Beijing andcompanies. It’s important, too,that green power should include taxes to incentivize companies. Also, in the US, land is privately Shanghai should take the lead innatural gas, although it’s not arenewable energy. Beijing has owned, and each state has its own land-use policies, making it applying new, green technologies.been investing heavily in natural difficult to launch a new program. That’s partly because they suffergas in-bound transport to replacecoal as the primary source of In China, the government is in a very strong position and can do the most from the consequencesenergy for power generation. nearly anything it wishes. Politically, it’s much harder in the of environmental pollution andHow similar are the energy policychallenges facing governments US, where the rising power of the Republicans is not a blessing for partly because they’re morein China and the US? the wind-power sector. financially capable.Both governments support the What other countries aregrowth of green power generation leading the way in stimulatingand consumption. China’s govern- renewable energy?ment may be more forceful—forexample, setting quotas for the Denmark, Germany and Spain areuse of renewables and requiring doing better than most countries. Partnership for New York City | Cities of Opportunity | 51
    • Is there a danger that prolonged You’ve said before that the poten- the US The impact of renewables Will smaller cities seeglobal economic problems will tial of the wind-power industry largely will depend on govern- technological advances too?make wind power less attractive is much larger than anyone can ment policies. In China, the Yes, we’re already seeing thethan cheaper forms of energy like imagine. How fast is it currently government target is to increase emergence in smaller cities ofoil or coal? growing in China? renewables to 15% of the energy many new utility projects such mix by 2020, but this could even as independent, intelligentThis view has certainly applied to China’s wind-power industry reach 20% if China resolves its mini-grids in local communities.the US The American wind-power experienced explosive growth challenges more effectively. Goldwind actually is exploringmarket shrank by more than over the past two years, thanks40% in 2010 from the previous largely to a government stimulus the idea of using our own wind Do you expect urban transporta-year, and it’s not expected to package and huge energy demand mini-grid to power our offices tion to change radically aroundrecover over the next two years from the real estate and con- and factories. the world with the rise of renew-to the level of development it struction sectors. In 2009, the able power and electric cars?had reached in 2009. But while wind-power sector expanded Chinese cities like Chongqing arethe financial crisis has dealt a more than 100%, and the growth The US is expected to take the working to develop intelligentsevere blow to America’s wind- rate for this year will be more lead in riding this wave. Cities grids and integrated powerpower industry, the opposite is moderate and stabilized due to like Los Angeles, San Francisco management. How critical istrue in China. In the future, as a large single-year volume that and New York are actively pursu- this kind of technology?China undergoes a structural reached more than 13 gigawatts ing opportunities in technologies Smart grids are an importanttransformation and moves toward in 2009. There now are nearly like offshore wind farms, electric vehicle in making renewablebecoming a low-carbon economy, 300,000 people working along cars and renewable application energy competitive, enhancingit will need to find new jobs for the value chain of wind power, a technologies. We’re seeing many its acceptability and its access toworkers from conventional indus- sector that barely existed in China venture capitalists getting actively the grid.tries. In my view, the wind-power five years ago. involved in these new businesssector can absorb many laid-off areas. Some European countries Goldwind now is a turnkey pro-workers from these conventional What sources of energy do you also are getting very active in vider of wind services and a windindustries while also reducing see powering the world’s big R&D. But past experience would farm owner around the world,emissions of CO2 and meeting the cities in 20 to 30 years? suggest these new technologies not just a manufacturer. Whynation’s rising demand for energy. are more likely to be commercial- adopt this strategy? It largely depends on the naturalSo I’m very positive about the ized first in the US. In China, big resources that exist in each coun- As the market matures and movesnext 30 years. cities like Beijing and Shanghai try. Natural gas will play a key into a period where growth is will be the leaders. I would not be role in Russia; coal and natural slower, equipment manufacturing surprised to see advancement in gas will dominate in Brazil; coal no longer will be in high demand. renewable application technology in China; coal and hydropower in So we should start preparing in these cities.Cities like Los Angeles, San Francisco and New Yorkare actively pursuing opportunities in technologieslike offshore wind farms and electric cars. We’re seeingmany venture capitalists getting actively involvedin these new business areas.52 | Cities of Opportunity | PwC
    • ourselves by expanding our Why did Goldwind choose Which is your favorite city in pany’s founders, most of whomvalue-added services. Instead of Beijing for its headquarters? the world? studied or worked in Germanyonly manufacturing, we’ll provide and Denmark. I don’t think we Mainly because of its central I like San Francisco the most. It’smanufacturing plus wind farm should compare ourselves with location to access our domestic a beautiful natural setting, it’sservices plus grid-access solutions. Silicon Valley companies: There operations, as well as quick and not very big and it has a greatCurrently, we have a wind farm still are areas where we need to easy access to the worldwide climate. It’s a city, but it also givesservices company that provides develop our culture further—for marketplace. you easy access to the countrysideturnkey services for everything example, encouraging more inno- and the ocean.customers need to build a wind What makes Beijing an attractive vations among our staff.farm plant. We also have a wind place to work for you? At its headquarters, Goldwindpower investment company that’s What challenges lie ahead offers employees everything fromendeavoring to become an inde- There are lots of key factors. It’s for Goldwind? soccer games to climbing walls topendent power producer in China’s political capital, it has an music lessons. Culturally, would Goldwind has to work hard tomany provinces. advanced economy, it has a deep the company be at home in improve its technology further, pool of talent and a strong R&D Silicon Valley? reduce its costs, increase itsGoldwind is globalizing rapidly, capability, its influence radiates competitiveness and contribute tosetting up wind farms, manu- out to neighboring Chinese There are lots of differences. the development of green power.facturing and other ventures provinces and it has influence Companies in Silicon Valley are We have a social duty to promoteeverywhere from the US to Cuba, at a global level. mainly technology driven, with sustainability and economic growthGermany to Central Europe, few having practical experiences. Why choose Chicago as the head- by using the Earth’s resourcesAfrica to Australia. How do you Goldwind, by and large, is an quarters for Goldwind USA? responsibly. That’s why, when theselect the best places to invest? industrial enterprise, although company was founded, we made America’s midwestern states people here dress casually atWe’re trying to have a balanced a commitment to help safeguard attach more importance to the work, engage in many recre-business portfolio. The American these natural resources for development of the wind-farm ational activities, and talk in anand European markets continue generations to come, “preserving industry. Geographically, these open and democratic way. Thisto be our focus, but we’re also white clouds and blue skies for states are closer to our customers. unique corporate culture derivesactively exploring the emerging the future.” They also receive more support from the experiences of our com-markets of Eastern Europe, Africa,the Middle East, Southeast Asia from state governments, and theyand Central Asia. Whenever have strong research capabilities.possible, we’ll leverage our rich The reason we chose Chicago This interview has beenexperience in China to achieve itself is mainly due to the scale condensed for publication in thegrowth in these other markets. of its economy, strong industrial report. To read all full-length capability, excellent universities interviews, please visit our and R&D, as well as convenient website: www.pwc.com/cities. transportation. Turbines at the Da Ban Cheng wind farm in Xinjiang, China.
    • Economic clout: Reachingthe high ground carries its ownmomentum but no guarantees Number of Global Financial and Domestic market 500 headquarters business services capitalization1 employmentLondon, Paris and New York finished on 26 London 22 26 19top again this year, exactly the same as last 25 Paris 24 24 20year—a telling result since all three cities arethe financial centers of countries that have 24 New York 23 18 22been much more affected by the global finan- 23 Hong Kong 15 13 17cial crisis than other developed economies or 22 Madrid 19 25 15even several developing ones. The lesson thatemerges is that economic strength, having 21 Singapore 11 16 6been “earned over time,” cannot be dissipated 20 Toronto 20 21 16by one financial crisis, no matter how deep 19 Shanghai 15 7 18or debilitating. 18 Beijing 25 15 0Indeed, the top 10 cities this year all are 18 Tokyo 26 4 21long-established urban centers of political or 16 Sydney 11 12 11commercial consequence (or both) rootedin hundreds or even thousands of years of 15 Stockholm 13 23 9history. Paris’ record as an administrative 14 Chicago 11 20 1capital goes back a millennium, while that of 14 San Francisco 11 22 0Beijing—which has climbed this year to theninth rank—can be traced back 2,000 years. 12 Berlin 6 19 12 12 Houston 19 9 0Economic clout has a great deal to do 10 Seoul 21 17 10with staying power, which, consequently,is what “economic stability” undoubtedly 9 Moscow 19 6 7comes down to in the end. This is not to say 9 Mumbai 19 1 13that cities do not rise and fall: Over recent 7 Los Angeles 6 11 0centuries, plenty of European cities (from 6 São Paulo 13 3 14Venice and Genoa to Amsterdam and Viennato Manchester and Glasgow) have proved 5 Abu Dhabi 3 2 2that economic power is as difficult to main- 4 Istanbul 6 5 4tain as it is to achieve. Still, longevity allows 3 Johannesburg 3 14 8a city to build the economic institutions, andnetworks, that will enrich it and, therefore, 2 Mexico City 11 8 5extend its financial weight and credibility 1 Santiago 3 10 3way beyond its borders.Accordingly, with the exception of Abu Dhabi(best known for its pearl trade prior to its dis-covery of oil in 1958), every city in our reportgoes back at least to the turn of the 20thcentury as a significant urban presence. Even In the end, the most interesting aspects tested this year, following the euro’s serialsome of the cities in the lower half of our of this year’s results might be the crises. This is especially the case for Madrid—ranking—from Mexico City to Mumbai and prospective trends they signal. Three ranked fifth this year, aided also by its strongIstanbul to Moscow—know what it means to factors are unusually suggestive of future financial services workforce—which might seehave once been imperial centers, which is to developments. First, although the top four its advantages slip because of the continuingsay that they know what it takes to lead. cities were European or North American last turmoil in the European Union (EU).As a result, Moscow does relatively well in year, only the top three were this year. Hong Kong replaced Toronto in the fourth spot and, Finally, appearances notwithstanding, thethe number of Global 500 headquarters and even more important in this year of currency top three cities in this category prove thatits attraction of FDI. Mumbai, too, contains crises, came in first in a measure of its infla- economic clout and cultural influence areas many Global 500 headquarters as Moscow tion rate. Moreover, all five Asian cities con- not two sides of the same coin. Quite the(or Houston or Madrid) and even manages to tinue to sit within the top 10 spots in opposite, a city’s cultural influence onlyoutpace New York in both categories of FDI. this indicator. really becomes dominant when it is backedBoth Moscow and Mumbai, however, have by economic power. It is a lesson learned bycurrency issues (inflation, in particular) In regard to currencies, the apparent currency Berlin, Mumbai and Istanbul—three citiesand relatively undeveloped financial and strength on which so many European cities lauded during the last few years for theirbusiness sectors. depended last year surely will have been cultural vibrancy.54 | Cities of Opportunity | PwC
    • Level of shareholder Inflation3 Strength of currency Attracting FDI: Attracting FDI: Score protection2 (SDRs per Number of Capital investment currency unit) greenfield projects 18 11 26 25 23 170 9 24 25 21 19 166 24 25 22 16 13 163 25 26 10 22 21 149 6 20 25 18 16 144 26 17 15 24 25 140 24 24 17 9 8 139 6 11 10 26 26 119 6 11 10 23 24 114 16 7 3 19 18 114 12 15 16 15 15 107 12 15 11 10 10 103 24 17 22 4 2 101 24 19 22 2 1 101 6 12 25 8 12 100 24 21 22 1 4 100 9 8 1 12 11 89 6 3 5 20 22 88 15 1 4 18 17 88 24 13 22 5 3 84 9 5 13 14 9 80 1 18 12 13 20 71 12 2 14 11 14 68 18 5 7 6 6 67 15 7 6 7 7 66 15 24 2 3 5 65Each city’s score (here 170 to 65) is the sum of its rankings across variables. The city order from 26 to 1 High Highest rank in each variableis based on these scores. See maps on pages 18–19 for an overall indicator comparison. Medium1. Total number of issued shares of domestic companies multiplied 3. Ranking according to how far a country deviates from a +2% Lowby their respective prices at a given time. This figure reflects the inflation rate, with inflation that is closer to +2% being favored overcomprehensive value of the market at that time in millions of USD. inflation or deflation that is further from this rate. A +2% inflationCities with no stock exchange receive a score of 0. The remaining rate is used as the benchmark because it is widely regarded ascities are ranked and assigned a score from 22 (reflecting the a target or healthy inflation rate by large international banks. Areduced number of cities in the ranking) to 1. country’s inflation rate is based on a projection of how much its Consumer Price Index, which measures the rise in prices of goods2. The level of shareholder protection index is the average of and services, is expected to rise during the course of 2010. US“transparency of transactions,” “liability for self-dealing” and cities were further differentiated using regional data.“shareholders’ ability to sue officers and directors for misconduct.” Partnership for New York City | Cities of Opportunity | 55
    • MortimerZuckermangauges… the present and future of citiesfrom his perspective as a realestate developer, publisher andformer professor Mortimer Zuckerman.As one of the most prominent What do you see as critical to It rewards talent, it celebrates the most ridiculous and corruptproperty developers in the US, the well-being of a city such talent, it nurtures talent, it government at all levels. I mean,Mortimer Zuckerman honed a as New York? encourages talent and, therefore, the state government is just asharp focus on what makes cities it attracts talent. This city is not fiasco beyond imagination. Anddecline or prosper. Zuckerman Cities expand or contract on the about buildings. It is the closest that was the reason why the Dailyco-founded Boston Properties in basis of their economies first. thing to a meritocracy, in my News was the only major newspa-that city, then broadened to real That’s often what has led to the judgment, that exists in this coun- per to endorse Mike Bloombergestate ventures in New York and formation of cities. New York try. And people of extraordinary the first time he ran [for mayor],other cities. He also owns US did not just happen by accident. talent get attracted to it because because I knew he is very talentedNews & World Report and the New York is a remarkable city talent likes to be with talent, and and a great manager. But everyNew York Daily News and served for all kinds of historical reasons. it spreads through everything. city suffers from that deficiency,as an associate professor at It certainly is the center of this to some degree.Harvard Business School. Here, country’s media, it is the center What pitfalls should New York behe shares his views on politics, of this country’s financial world, aware of looking to the future? We are held terribly hostage byimmigration, public employee it is the center of this country’s the public service unions. Theobligations and the media—and world of theater and it has one of New York suffers from everything problem now is that the peopleoffers special praise for the meri- the most wonderful combinations that every other city and state who pay the pensions and thetocracy that defines New York. of people. suffers from, from the national healthcare benefits for the public government side. There are many service workers, never mind their What makes New York City things that can be done only salaries—that’s the public. great is that it welcomes talent. by government, and we have56 | Cities of Opportunity | PwC
    • What makes New York City great is that it welcomes talent. It rewards talent, it celebrates talent … It is the closest thing to a meritocracy that exists in this country.Is it just a New York problem? ever the public sector wants and terms of technology and people Is the balance of power and put all the money into the union who understand technology, and governance that cities controlNo, it’s every one. I mean, we contracts and retirement benefits, we’ve just got to nurture that. correct?now have a new privileged elite, but that’s crazy.and they’re called the public You talked about immigration. That’s the way our politics work.service workers. They work fewer What would you see cities like We still have representativehours, they have longer vacations, New York in the US, and the There is something called an H-1B government. However, certainlythey have bigger pensions and world as much as it applies, visa. In the year 2000, we had at the state level, we have totheir average income is prob- doing to generate jobs? 195,000 H-1B visas; in the year understand what is it that drawsably—total, including the 2001, after the dot.com bubble people to New York. And our rep-benefits—30% to 40% above One, the process of gaining city burst, a group of people who resentatives in Washington cannotthe average incomes of the approvals of all kinds has to be worked on this new technology allow the financial industry to beprivate sector workers. That’s streamlined. Two is cities have called the web managed to get hammered for short-term politicalnot sustainable. The Obama got to manage their tax rates, the federal government to reduce gains, when it is the absolute coreadministration, by giving the their real estate tax rates, and the number of H-1B visas from of the economies of this city andpublic service workers unbeliev- there have to be programs to 195,000 to 65,000. We still are at this state. But politics get playedable amounts of support without create incentives for people to 65,000. I spoke with this admin- in the worst kinds of ways. I don’tasking for anything in return, build. Third, cities have to under- istration about it. Intellectual know how you deal with it. Thedid the wrong thing. stand what their strengths are, power or technical power, call it Executive Branch may make a and they’ve got to nurture those what you will, is more important decision, but then you have GodWhat can the public sector learn strengths. Fourth, the one thing than financial power. We are knows how many local politicalfrom the private sector? that I think is absolutely critical sending these people out—these issues that mix it up. We can’t for almost every city is the public are people who we educate afford it any longer. We just can’t.The private sector also is vulner- transportation. I’ll add to that here—we send them to otherable to this. When times were public education. countries and companies that There are some things that onlygood, everybody was willing to compete with us. This is insane. governments can do. If you’rego along. And then when things You witness it at all levels. The talking about a subway system,turned down, which they cer- federal government’s a disaster, One of the great strengths of that can only be done by thetainly have, how do you get out the state government’s a disaster, America is its ability to integrate government. The same thing isof these obligations? How do you with rare exceptions the city immigrants. We’ve done it for our true of education. Now, if you canmanage these obligations? How governments and local govern- entire history. The most talented find a way to privatize it, gooddo you fund these obligations? ments are disastrous, and I don’t people who have come from luck, but, so far, that is beyond[Former California Governor know how you change that. We countries like Canada and Aus- the scope of the private world.Arnold] Schwarzenegger wrote are susceptible to elections that tralia, there are offices all around Not entirely. But my recommenda-an op ed piece in The Wall Street are based on how much money the world trying to attract these tion is if we want to do somethingJournal. He said California is people can raise rather than how people, and we’re sending them about the economy, we have tonow paying $6 billion a year good they are. away. It’s insane. And it’s done for have a national infrastructurefor retirement benefits, and the crassest of political reasons. bank, which Felix Rohatyn hasit’s going up by 15% a year. What about technology? Fifty percent of the graduate recommended. It’s an indepen-It’s unsustainable. degrees in the hard sciences go dent thing. It should not be done We’ve lost in this country 5.6 to these foreign students, and on the basis of political, shall weWe have costs that are unsustain- million manufacturing jobs in the we send them away. say, patronage and earmarked—able. There’s no money for any first decade of this century. We it should be done on the basisof this. And we could break the have a comparative advantage inwhole system by providing what- Partnership for New York City | Cities of Opportunity | 57
    • of rational planning. And they may go up, not out. Look, there I’ve always taken that. And in that That’s the biggest problem weshould be large-scale projects, are many cities that do not want sense, if you take a longer-term have now because people haveand we should toll them so that to have high-rise buildings. But view, there’s a quality, not just a been looking at public office andthe users pay for them because then if that’s the case and there’s quantity, to what you do. I don’t feel that it denigrates you rathernobody wants to charge taxes. pressure, it goes out horizontally. need short-term profits; I want than enhances you. I’ve never felt It’s either going to go vertically long-term values. And if you do that way.Do you think Northern Europe or horizontally, and there are that, you can really be sensitiveor even China does all this better opportunities in both. to the aesthetic quality and to the Speaking as a media owner, howthan us in terms of planning? construction quality of what we important is credible information Are there projects you do because do. Everything we do is for the to a community?Certainly China, on one level, has they’re the right things to do longer-term.a much more strategic view of as a developer interested in the You know the answer to thatwhat its interests are, but, on future of the city, not just to And that was a decision, a question. It’s critical, in fact. Andthe other hand, they don’t have make money? business and personal decision, it’s like everything else—mediaany opposition. The government you made? shapes the public dialogue. Nowmakes a decision, and they That’s right. For example, there there are going to be people inimplement it. When China was was a competition to build this From day one. And, frankly, in my the media who are going to go forin trouble, they put in a massive 103-story building that is going judgment, it’s worked better than short-term gains. I hope I don’t doinfrastructure program, they took to basically replace what was any other alternative in purely that. Not that you have to ignorethe economy out of the doldrums there prior to the World Trade business terms. it, but if you have values that youwhen the exports collapsed. We Center, and that’s going to be a want to somehow or other trans-haven’t been able to do anything landmark building. And for me to What should cities do to mit, whether it’s on the editorialthat makes sense. The stimulus have had the opportunity to be a foster collaboration among page or in the quality of yourprogram that we had was a joke. part of that, it’s not an economic various stakeholders? journalism, it’s really critical forIt wasn’t large enough; it was judgment. I can afford to do the quality of the public dialoguemisdirected. It didn’t create something for aesthetic reasons It’s political leadership. Bloom- to have quality media.job multipliers; it just basically and public service reasons, and berg can do it here because hepatronized the public service that was my approach. wasn’t somebody who came up Many of the great newspapersunions primarily because of the through the political system, but have been owned by families—constituency of Obama. Now it’s How do you balance that— he came in with a more idealis- the Sulzbergers, the Binghamsway too late. making money, capitalism, tic view of what could be done, or the Chandlers. As those versus public spiritedness? and, frankly, somebody who families give up control andJohn Jacob Astor famously said, could afford to do whatever he corporations take over, will it“Buy on the fringes and wait.” This has been the approach that has to do. It wasn’t dependent mean the end of public-spiritedWith the great expansion of cit- I’ve taken forever. I have been in on financial contributions. But journalism in big cities?ies, are there still fringes today? a position to take a longer-term you need that kind of leadership, view than most people in terms and somehow or other we’ve got No, I don’t think it’s the end of itOf course there are. There are of their approach to business, and to value it enough to support it. at all. I’m not sure corporationsalways fringes. And the fringesWe now have a new privileged elite, and they’re calledthe public service workers. They work fewer hours, theyhave longer vacations, they have bigger pensions andtheir average income—total, including benefits—isprobably 30% to 40% above the average incomes of theprivate sector workers. That’s not sustainable.58 | Cities of Opportunity | PwC
    • A view of the GM Building in New York, one of many skyscrapers in the US owned or developed by Boston Properties.can really do a good job in configuration, and if you’re not a But to the extent that you have What city do you live in, and ifrunning a multifaceted media part of one tribe or you are part a global center, the number one there were one thing you werecompany, and we’ve seen that. of another tribe, you know, you city in terms of its reach around going to do to improve it, whatLook what happened to the Tri- face all kinds of opposition. The the world still is New York. would it be?bune Company. It got in trouble United States, in general, is morebecause it was overleveraged. of a meritocracy than any other What is your favorite city to visit I live in Manhattan. And if there’s country. Where the United States for pleasure? one thing I could do to improveYou invested in presses for The suffers is not from its private sec- it—which is difficult—I wouldDaily News. Clearly, you still think tor but from its public sector. I love London, and I love Rome— improve New York City’s educa-newsprint is not a dead medium? London because it’s a civilized tion system at all levels. The It’s an open city, it’s an open city and Rome because the Ital- entire public education systemI don’t think it is. But I’m not country, it’s an immigrant ians are the warmest, most open, really needs it. And the resistancesaying it was entirely an country—that’s what immigrant most life-enhancing people you to that, of course, comes fromeconomic decision. countries are all about. That’s could want to spend time with. teachers. That’s the sad fact of it. why America attracted soYou’re from Montreal, and you’ve many people.done business in Boston. Howdoes New York stack up? Is New York in our lifetimes the center of the world today, likeMajor league difference. New ancient Rome once was?York is to my mind the best exam-ple of how American business can To the extent any city is, I wouldwork because it is a meritocracy. say it still is New York. No city is To hear podcasts of the discussionThere are many cities where the center of the world, however. with Zuckerman, as well as readyou have a tribal, shall we say, a full-length version of this and other interviews, please visit our website: www.pwc.com/cities. Partnership for New York City | Cities of Opportunity | 59
    • Among the most significant changes in There is another, more valuable, les-Ease of doing business: this year’s research is the addition of three son to be drawn here; namely, it is not variables to this indicator: ease of starting geography, a specific cultural profile orThe open city trumps a business, operational risk climate, and historical experience that matters in the endgeography and culture workforce management risk. These changes, when it comes to business investment. What however, have not appreciably altered the does matter, as the variables in this category general terrain of the world’s business- indicate, is a combination of flexible labor friendly landscape. policies, openness to the rest of the world, and the ease of starting and maintaining an The leaders—Hong Kong, Singapore, New enterprise (which embraces the stability of a York and London—just played musical chairs city’s fiscal and regulatory environment). in the four top spots. It would be a mistake, however, to see this jockeying for the top American cities continue to lead the rankings positions by the same players as a case this year in degree of employer flexibility of advantages accruing to already to create work schedules and ease of firing. advantaged cities. Indeed, were it not for the severe visa Ease of starting Ease of hiring1 Rigidity of hours2 Ease of firing3 a business 26 Hong Kong 23 26 20 19 25 Singapore 25 26 20 21 24 New York 22 20 26 26 23 London 15 15 11 15 22 Toronto 24 14 21 16 21 Sydney 26 22 17 21 20 Los Angeles 22 18 26 26 19 Chicago 22 19 26 26 18 San Francisco 22 17 26 26 17 Houston 22 21 26 26 16 Stockholm 12 11 5 6 15 Tokyo 8 16 16 11 14 Santiago 7 11 18 14 13 Berlin 10 7 3 6 12 Paris 16 3 1 8 12 Seoul 13 6 6 11 10 Abu Dhabi 11 26 12 19 9 Madrid 2 2 8 11 8 Mexico City 14 9 13 2 7 Istanbul 22 5 4 13 6 Johannesburg 9 4 15 12 5 Beijing 4 13 10 4 4 São Paulo 1 1 2 19 3 Mumbai 6 23 15 1 2 Moscow 5 8 8 7 1 Shanghai 4 13 10 4 Each city’s score (here 191 to 54) is the sum of its rankings across variables. High Highest rank in each variable The city order from 26 to 1 is based on these scores. See maps on pages Medium 18–19 for an overall indicator comparison. Low 1. The ease of hiring index measures whether fixed term contracts tive duration of fixed term contracts is less than 3 years; 0.5 if it is are prohibited for permanent tasks, the maximum cumulative 3 years or more but less than 5 years; and 0 if fixed term contracts duration of fixed term contracts and the ratio of the minimum wage can last 5 years or more. Finally, a score of 1 is assigned if the ratio for a trainee or first time employee to the average value added per of the minimum wage to the average value added per worker is worker. An economy is assigned a score of 1 if fixed term contracts 0.75 or more; 0.67 for a ratio of 0.50 or more but less than 0.75; are prohibited for permanent tasks and a score of 0 if they can be 0.33 for a ratio of 0.25 or more but less than 0.50; and 0 for a ratio used for any task. A score of 1 is assigned if the maximum cumula- of less than 0.25. Averaging the scores and scaling the result to 100 give a final index. Higher values indicate more rigid regulation.60 | Cities of Opportunity | PwC
    • requirements of the United States, they would field, up one place from last year. It also is highest level in ease of doing business—arguably dominate this category. As it is, the among the top three in the new variables, which, in this case, is particularly noticeablefive American cities here are all in the top 10. including first in workforce management given that Sydney should be a prime competi- risk. If it improved its standings in hiring tor in Asia to Hong Kong and Singapore.The relative improvement of the continental and firing, as well as visa requirements andEuropean cities is a notable change from flexibility (which are national restrictions), What is most striking in the end aboutlast year. Paris fell to the bottom five of last Toronto would be among the easiest cities in the top cities in this ranking is how importantyear’s rankings but finishes in the middle the world in which to do business. open access to the world is to achieving thethis year. Berlin is just above Paris this year, very top spot. Indeed, it is ironic that Hongalthough Frankfurt was just below the French Sydney also rises conspicuously in this year’s Kong (about which there was some fearcapital last year, three places from the bot- rankings, moving up five places from last regarding its business environment after itstom. Stockholm continues to prove its global year’s report to just barely behind Toronto. return to Chinese sovereignty) now rankscompetitiveness by placing in the top half of Sydney also comes in first in the new cat- second in ease of entry, as it did last year,the rankings. egory of ease of starting a business and ranks and first in flexibility of visa travel—up from high in both ease of hiring and firing. Again, third last year.Toronto, however, is the city that continues however, Australia’s visa policies impairto impress, ranking fifth this year in a larger Sydney’s abilities to compete at the very Ease of entry: Flexibility of Foreign embassies Operational Workforce Score Number of countries visa travel5 or consulates risk climate management risk with visa waiver4 25 26 10 24 18 191 26 4 16 26 24 188 9 11 21 18 25 178 23 25 25 13 24 166 12 15 11 24 26 163 11 13 12 22 18 162 9 11 8 18 21 159 9 11 5 18 20 156 9 11 7 18 18 154 9 11 4 18 15 152 20 23 19 25 22 143 16 19 23 12 19 140 22 24 14 19 9 138 19 21 22 20 13 121 13 16 26 22 14 119 24 23 17 9 10 119 10 4 13 10 12 117 18 20 18 12 11 102 15 18 15 8 3 97 17 15 9 3 2 90 21 13 1 7 5 87 3 4 25 5 8 76 14 17 7 7 6 74 3 5 2 2 4 61 4 6 20 1 1 60 3 4 4 5 7 542. The rigidity of hours index has five components: (i) whether night agency) to terminate one redundant worker; (iii) whether the 0 is given. Questions (i) and (iv), as the most restrictive regulations,work is unrestricted; (ii) whether weekend work is unrestricted; (iii) employer needs to notify a third party to terminate a group of 25 have greater weight in the construction of the index. Averagingwhether the workweek can consist of 5.5 days; (iv) whether the redundant workers; (iv) whether the employer needs approval from the scores and scaling the result to 100 give a final index. Higherworkweek can extend to 50 hours or more (including overtime) for a third party to terminate one redundant worker; (v) whether the values indicate more rigid regulation.2 months a year to respond to a seasonal increase in production; employer needs approval from a third party to terminate a group ofand (v) whether paid annual vacation is 21 working days or fewer. 25 redundant workers; (vi) whether the law requires the employer to 4. Count of visa exemption only includes tourist andFor each of these questions, if the answer is no, the economy is reassign or retrain a worker before making the worker redundant; business visits.assigned a score of 1; otherwise, a score of 0 is assigned. Averag- (vii) whether priority rules apply for redundancies; and (viii) whether 5. Ibid.ing the scores and scaling the result to 100 give a final index. priority rules apply for reemployment. For the first question, anHigher values indicate more rigid regulation. answer of yes for workers of any income level gives a score of 10 and means that the rest of the questions do not apply. An answer3. The ease of firing index has eight components: (i) whether redun- of yes to question (iv) gives a score of 2. For every other question,dancy is disallowed as a basis for terminating workers; (ii) whether if the answer is yes, a score of 1 is assigned; otherwise, a score ofthe employer needs to notify a third party (such as a government Partnership for New York City | Cities of Opportunity | 61
    • Two things truly are remarkable about the or cities that are not among the long-Cost: Post-recession, the rich five lowest cost cities in this year’s rankings. established global financial capitals, to com- First, none is from a developing country. pete in attracting investment. The four topget cheaper Second, they are all in North America. Last cities in this ranking—led by Houston by a year, by contrast, Johannesburg was ranked significant margin, followed by Los Angeles, first in this indicator, and Santiago tied for Chicago, and San Francisco—are surprisingly fourth. This year, Johannesburg and Santiago affordable places to do business. The issue are tied for eighth, which make them the only now for these cost-competitive cities is to non-Western cities in the top 10. Last year, maintain their advantages. there were five non-Western cities—including Seoul, Dubai and Mexico City—among the This year’s rankings also challenge top 10 rankings. the traditional perspective on the cost- competitiveness of mature cities. Eight of the As was the case last year, however, this indi- top 10 cities come from the developed world cator confirms the potential of smaller cities, (with Stockholm jumping five places from last Total tax rate Cost of business Cost of living Purchasing power1 Business trip index2 Score occupancy 26 Houston 19 25 24 25 23 116 25 Los Angeles 15 24 16 24 22 101 24 Chicago 18 21 21 21 18 99 23 San Francisco 13 22 22 23 16 96 22 Toronto 17 13 19 19 26 94 21 Berlin 14 20 17 20 20 9120 Sydney 11 16 10 26 24 8719 Johannesburg 22 26 25 10 3 8619 Santiago 24 23 23 6 10 8617 Stockholm 8 11 19 16 25 7916 New York 12 17 12 23 13 7715 Abu Dhabi 26 9 14 13 8 7014 Singapore 23 14 4 7 16 6413 Madrid 6 12 15 15 14 6212 Hong Kong 25 1 3 12 19 60 11 London 20 2 8 18 11 5910 Mexico City 9 19 26 2 2 58 9 Seoul 21 10 5 9 12 57 8 Paris 2 6 8 14 21 51 7 Istanbul 16 8 13 5 4 46 6 Tokyo 7 3 1 17 17 45 5 Shanghai 5 15 11 4 6 41 4 Beijing 5 18 6 3 7 39 3 Moscow 10 5 2 11 9 37 2 São Paulo 1 7 9 8 5 30 1 Mumbai 3 4 20 1 1 29Each city’s score (here 116 to 29) is the sum of its rankings across variables. The city order from 26 to 1 High Highest rank in each variableis based on these scores. See maps on pages 18–19 for an overall indicator comparison. Medium1. Domestic purchasing power is measured by an index of net 2. Weighted index of the cost of a business trip to a city, including Lowhourly pay (where New York = 100), including rent prices. Net measures such as taxi cab rates, lunch prices, and quality ofhourly income is divided by the cost of the entire basket of entertainment and infrastructure. The business travel indexcommodities including rent. The basket of goods relates to 122 comprises the following five categories: stability, healthcare,commodities. culture and environment, infrastructure and cost.62 | Cities of Opportunity | PwC
    • year to reach the 10th rank this year). The tax rate. What most affected its ranking this New York tie for fourth. At the very bottomnotion, therefore, that North America, Europe year was the transfer of the business trip index of the rankings comes Mumbai, followed (inand Australia are doomed to be perennially to this indicator. Moreover, Mexico City ranks ascending order) by Mexico City, Beijing,uncompetitive on costs might have to be first (that is, most affordable) in cost of living Shanghai and Istanbul.re-examined—as PwC’s 2011 annual CEO (coming up from second last year), while AbuSurvey recently showed. Chief executives Dhabi has the lowest tax rate (as Dubai had Of course, as we noted last year, purchasingnow rank the US and Germany among the top last year). The problem for every city in the power is greatly enhanced by high salaries,five countries for sourcing along with China, developing world is to translate these and which are concentrated in the major citiesIndia and Brazil, competing favorably on a other advantages to benefits for their citizens. of the advanced economies. Also, the 122combination of cost, quality and innovation One key measure, however, points to a relative Western goods and services that compose the(see www.pwc.com/ceosurvey). lack of success on that count. basket of goods measured by this variable might skew the results to the disadvantage ofNonetheless, the developing world maintains Sydney ranks first in its citizens’ purchasing the cities of the developing world. Still, theconsiderable benefits. Johannesburg remains power, followed by Houston and Los Angeles. rankings show that good salaries are not sofirst in cost of business occupancy and contin- Counterintuitively, perhaps, for those who much an impediment to as a confirmation ofues to do very well in cost of living and total have lived or visited there, San Francisco and a city’s overall competitiveness.Confirming the pattern: Competitive advantageWestern lifestyles are HOUSTON +22.5(usually) cheaper in the West SAN FRANCISCO +18 LOS ANGELES +17 CHICAGO +15 SYDNEY +12Once again, this year’s studyconfirms—even more so than last BERLIN +11.5year’s—that Western lifestyles NEW YORK +10.5are decidedly expensive in theEast (and South); they also are JOHANNESBURG +8.5unavoidable given the realities TORONTO +8of transnational business. Lastyear, five out of seven cities with STOCKHOLM +4a competitive advantage in costs SANTIAGO +2were from the mature economies; MADRID +1.5this year, 10 out of 12 are. Balanced ABU DHABI -2.5Each city’s relative cost wascalculated based on cost of busi- MEXICO CITY -2.5ness occupancy and cost of living -4 LONDONas compared with purchasingpower. Costs of business occu- PARIS -6pancy feed directly into operating -8 TOKYOcosts. The cost of living affectsthe wages needed to attract the SHANGHAI -10best workforce. Purchasing power SEOUL -10.5serves here as a proxy for produc-tivity, or, broadly, the production SÃO PAULO -11of goods and services. SINGAPORE -11We determined each city’s aver- ISTANBUL -11.5age costs by creating a factor BEIJING -12of costs of living and businessoccupancy weighted in inverse MOSCOW -12.5proportion to purchasing power. HONG KONG -13The resulting ranking gaugesgeneral levels according to basic MUMBAI -14economic theory; that is, a city in Competitive disadvantagea rich country with high purchas-ing power should be more costlyon a relative scale. Divergencesfrom what might be expecteddetermine competitiveness. Partnership for New York City | Cities of Opportunity | 63
    • René Gurkasees Berlin… as “the place to be” for media,life sciences, clean industriesand services as the once-dividedcity re-establishes itself as abusiness center René Gurka of Berlin Partner.Energy, art and good quality of What are you doing to re-estab- lost 100,000 people in the nine- Then they looked around andlife make Berlin today a magnet lish Berlin as a world capital in ties because all of the factories saw there is a biotechnologyfor creative people. But the city business and finance? were heavily subsidized during scene. And they realized lifealso faces a challenge in turning the Cold War. … So after the Wall sciences is big in Berlin. “Let’s First of all, even before the Wallitself back into a business center came down, the money in the concentrate on that.” The next came down 20 years ago, for theafter a traumatic history of West went, and the other com- thought was, “What’s left of 45 years before that, we were notwar, division and dislocation. panies were closed because you industry?” They saw that traffic, a business center anymore. AfterRené Gurka, managing director could not sell their product. railway and energy is our most the Second World War, Berlin’sof Berlin Partner, a civic organi- common industry. And then they business time was over. Siemens What did the city do to changezation devoted to the economic thought of the service industry, was founded in Berlin; Deutsche the situation?development and marketing because we’re the capital of the Bank was founded in Berlin. Bothof Berlin, is busy tackling that They … began to develop a very country, and lots of ministries of those companies moved imme-challenge. Gurka himself brings clear strategy. They sat down in will come here. … So the service diately. And they never cameglobal perspective to the job 2001 and said, “Okay, we’re down industry will probably do well. back with their headquarters.after spending six years helping to nothing; we have a very bad So when, 20 years ago, the Wall That way, the city defined fourGerman businesses put down income situation so let’s see what came down and 12 years ago the clusters and chose to work inroots in San Francisco is left.” They said, “First, we have German government moved to them and not get distracted.and Atlanta. a great creative scene in Berlin. Berlin, we were in a very special After almost 10 years of this situation. The economic environ- We have artists, we have galleries, new cluster strategy, in the last ment was down. Production had we have little IT companies.” five years, we saw an increase of64 | Cities of Opportunity | PwC
    • It’s very easy if you’re an international company to locate a business in Berlin. … More and more, we’re trying to be an alternative location to London for foreign companies coming to Europe.more than 10% of new jobs … How does that stack up within time, but the patient is getting into the index in the next 10-15which is amazing. Boom cities the EU? better and better every day. years because all the potential islike Atlanta and cities in Asia had in Berlin. Germany overall is the highest, In a sense, the crisis also was anfigures like that. behind the UK. But, actually, opportunity. You can’t start from What struggles is the city con- we’re trying to get a piece of the nothing in London, New York fronting in achieving cohesionThese are all highly skilled jobs UK cake. Because we in Berlin or Paris. between immigrants and nativeyou’re talking about. now think it’s very easy, if you’re Germans?Yes, exactly. Out of the bad nine- an international company or have Absolutely. And consider, 50% ofties that we had, we still have a an English-speaking manage- the people in Berlin have been There has been an intensivevery high unemployment rate, ment team, to locate a business exchanged in the last 20 years. discussion about that. … I wouldaround 14%. Now we’re creating in Berlin because most people Fifty percent of the 3.5 million say that the people living in Berlinjobs, and everything is going speak English. We have a very Berliners are new Berliners, either today are trying to live a newwell. More and more, people are international environment now … by birth or having moved here. lifestyle. We’re trying to connectwilling to drive every day from More and more, we’re trying to be the dots. Nobody’s going to closeBrandenburg into Berlin. And an alternative location to London What is your vision for the future his eyes and say, “it’s not mythen we have a lot of young for foreign companies coming to of Berlin? problem.” Last week, I was in apeople who want to be in Berlin Europe … If you’re comparing From an economic development meeting with the ambassador ofbecause Berlin is hip. So the costs, you would not believe how perspective, we want enough South Korea and the ambassadorinterest is still higher than the cheap Berlin is in comparison growth and enough jobs created of North Korea. What do youavailability of open jobs here. with London, Paris, New York so that the 3.5 million people think goes through their minds, and all the other cities. ... It’s not living here have a good and easy sitting in a city like Berlin, thatWhat explains the fact that Berlin just cheap. You get value. That life and can find enough work to was a separated city? They musthas seen such a great influx of attracts the creative class. finance their life. On the other say, “Hey, what are we doing?”people with skills? hand, I am convinced that we Is the history of art and culture Final thoughts?I think the biggest reason is space, will not be very successful inand all types of space. There is in Berlin a draw? relocating companies from within Quentin Tarantino came and livedspace for people to be creative. The younger people coming here Germany. Siemens is not going for six months when “InglouriousThere’s enough space to come are thinking about the “now” to come back. Deutsche Bank is Basterds” was being filmed inwith different religions, different and saying it’s the coolest city. … not going to come back. But we Berlin. A guy like that comes toideas, different sexuality. Every- The mindset is different here. have a chance for international town, and he says, “It’s so cool. I’llthing is possible in Berlin, and We are a little bit Stockholm, companies. And when I view us stay here.” The brain drain is a bigeverybody finds his little niche we’re a little bit San Francisco, as a mini-Silicon Valley, I think issue today—smart people goingof whatever he’s looking for. we’re a little bit Manhattan. Now, we have the chance to create big away. But Berlin, surprisingly, is 20 years after the fall of the Wall, stock companies that will make it a city where smart people areWhere does Berlin Partner we are realizing we are not like coming back.come in? other cities. We don’t even wantWe were founded five years ago. to be like another city. We wantWe came from different agen- to be Berlin.cies: a traditional economicdevelopment agency, a traditional Now we have the highest rate offoreign trade agency and a city new companies being founded in Germany. All this comes together This interview has beenmarketing association. When we condensed for publication in thewere founded, it was as a public- now. And it took 10 years. I would always say about Berlin it report. To read all full-lengthprivate partnership between the interviews, please visit ourindustrial and business com- was a very ill patient. After the website: www.pwc.com/cities.munity of Berlin and the public Wall came down, Berlin went intosector. Today, the foreign direct intensive care. Now, the patientinvestment rate in Berlin is one actually has healed. The patient isof the three highest in Germany. out of the hospital, and it’ll take Partnership for New York City | Cities of Opportunity | 65
    • Demographics and livability: The key to happiness unlocks aPandora’s Box of questions Natural disaster riskWhat defines socioeconomic well-be- If anything, housing offers one of the 26 Stockholm 25ing—that happy state where people are satis- best keys to socioeconomic happiness in our 25 Sydney 13fied and productive, businesses are busy and study. Tracking the interrelated movementmaking money? On the personal side, various of all variables in Cities of Opportunity shows 24 Toronto 24studies offer differing keys to happiness: not that available, affordable, good quality hous- 23 San Francisco 8smoking, being educated, exercising, enjoy- ing correlates very closely with other traits 22 Los Angeles 3ing good health, living in warm climates, perceived to be positive such as good end-of- 22 Madrid 21living on islands and, of course, having more life care, healthy entrepreneurial and politicalmoney. The list goes on. Perhaps most per- environments, and a robust digital economy. 20 Berlin 24suasively, it might be argued, people are most (See discussion of indicator correlations on 19 Chicago 20satisfied when they like what they have at page 16 and customizable heat maps for the 19 Houston 13the moment, not what they might have in the 66 variables on www.pwc.com/cities.)future. But the restless energy and pursuit 19 Paris 20of progress that builds great cities takes a bit While our data do not show which comes 16 Singapore 17of a different twist. first, the chicken or the egg, housing or good economy, it does show that they tend to occur 15 Abu Dhabi 24In gauging demographics and livability, concurrently. The weather can be good or 14 Hong Kong 4Cities of Opportunity considers a potpourri bad, the commute a pleasure or a pain, the 13 New York 13of ingredients: the size of a city’s working city predicted to fall into the sea, but good 12 São Paulo 17age population and speed of its workers’ housing seems a prerequisite if a city is tocommutes, housing stock, quality of living achieve healthy socioeconomic balance. At 11 Mexico City 5and life satisfaction, heat and humidity, and the end of the day, it appears, happiness 10 London 17the risk of natural disaster. is where the home is in terms of holistic 10 Seoul 6 urban well-being.We find top-tier cities that balance 8 Tokyo 1healthy demographics and livability are some- And, paradoxically, despite all the 7 Beijing 18times a bit off the beaten path of the world’s attention paid to the daily weather 6 Santiago 2“alpha” cities. Stockholm moves from ninth forecasts, thermal comfort has a weaklyto first this year, while Sydney and Toronto negative correlation with the traits often 5 Istanbul 17again finish toward the top, taking second associated with a vibrant society like 4 Johannesburg 9and third, respectively. These are joined by a robust housing, entrepreneurism and digital 3 Mumbai 13kindred city spirit in San Francisco, which is economy. For instance, São Paulo, our mostnew to the study. A history of city planning temperate city, still faces challenges in terms 3 Shanghai 7and action also seems to characterize those of building its economy and quality of life, 1 Moscow 26cities that do well here. Chicago, Paris, but frigid Stockholm and Toronto are amongSingapore, Berlin, each in its own way, our strongest cities.have shown a commitment to planning andfinish in the top half.66 | Cities of Opportunity | PwC
    • Thermal comfort1 Working age Housing Commute time2 Quality of living Life satisfaction3 Score population 5 14 22 22 24 25 137 24 10 26 11 25 25 134 7 19 24 7 26 26 133 19 23 22 19 15 25 131 25 13 22 20 16 25 124 17 8 22 21 18 17 124 10 3 24 26 21 14 122 7 15 22 8 19 25 116 9 6 22 24 17 25 116 16 20 13 13 23 11 116 13 22 26 9 15 11 113 3 26 10 25 8 14 110 16 24 13 16 20 14 107 11 11 22 3 12 25 97 26 5 7 15 5 17 92 23 18 5 18 3 18 90 12 2 22 2 13 15 83 8 25 10 17 11 6 83 14 7 22 6 22 9 81 3 21 7 14 7 8 78 20 12 3 23 10 6 76 18 17 5 12 2 3 74 22 16 13 5 5 1 71 21 9 1 1 1 3 49 4 4 10 10 6 8 49 1 1 2 4 9 4 47Each city’s score (here 137 to 47) is the sum of its rankings across variables. The city order from 26 to 1 High Highest rank in each variableis based on these scores. See maps on pages 18–19 for an overall indicator comparison. Medium1. Measure of the average deviation from optimal room temperature 2. Average commute time for workers commuting into or within Low(72 degrees Fahrenheit). January and July heat indices were the city.calculated for each city using an online tool that integrates averagetemperature and average morning relative humidity during each 3. Based on an international survey of country populations inmonth. A final thermal comfort score was derived by first taking the response to the question, “All things considered, how satisfieddifference between a city’s heat index for each month and optimal are you with your life as a whole these days?”room temperature and then averaging the absolute values ofthese differences. Partnership for New York City | Cities of Opportunity | 67
    • Are we there yet?On the slow lane to congestion managementEveryone who has ever lived, or in the design of automobiles It is important to note, however,worked, in a major metropolitan themselves (electric cars and that Singapore decided 20 yearsarea knows the psychic costs of hybrids, most obviously). One ago to reinforce congestion pric-traffic congestion. Unfortunately, policy that has increasingly ing with policies that severelythere are substantial economic attracted municipal authorities limited car ownership—includ-and social consequences as well. and planners throughout the ing the requirement that anyone world is congestion pricing since wishing to buy a new car inThese were quantified several it tackles the problem directly— Singapore must bid on and winyears ago by the Partnership for that is, through economics and a “certificate of entitlement”New York City.1 It found that the price mechanism. through a monthly auction. Thecongestion in the greater New costs of these certificates haveYork City region added approxi- Singapore led the world in become so high that it almost ismately $1.9 billion to the costs of congestion pricing in 1975. prohibitive for many residentsdoing business, led to $4.6 billion In 1998, electronic pricing was to own a car in Singapore. As ain unrealized business revenue, extended to all roads leading result, per capita car ownershipand cost some $5 billion to $6.5 into the central business dis- stands at about 122 per 1,000 (asbillion in lost time and productiv- trict, as well as to expressways opposed to 780 per 1,000 in theity, as well as an estimated $2 and heavily used arterial roads. US, for example).billion in wasted fuel and other The new system has helped tovehicle operating costs. In total, tweak road-usage patterns. Peak Europe’s experience also isthe increasing problem of traffic traffic has eased and spread into generally positive. Stockholmcongestion costs the New York off-peak hours, while average introduced a congestion fee inCity regional economy more than speeds for major thoroughfares 2007 for cars entering and leav-$13 billion a year, resulting in have remained constant despite ing the inner city during businessthe loss of as many as 52,000 increased traffic volumes over hours. Three years later, trafficjobs annually. the years. had declined by approximately 20%, and traffic jams in andAnd, obviously, these negativeeffects are in addition to theenvironmental damage caused byuncontrolled traffic congestion.Clearly, decreased congestion fun-damentally improves most aspectsof urban life. The problem lies ingetting from here to there—fromplainly unsustainable levels ofurban gridlock to more viablepatterns of urban transport, notonly of human beings but of thegoods and services that keep a Pricing policies make a small dent in the pileupcity functioning. of inner city traffic problems as StockholmMany factors will constitute a eases the pain, London regains some andfinal mix of policies to that end,from HOV lanes in the high- Singapore takes a slightly different turn.ways leading to city centers, toenhanced mass transit, to urbandensification, to energy policy,to technological developments68 | Cities of Opportunity | PwC
    • Cars entering London’s congestion charging zone.around the center had decreased costs to users. A critical factor in 1. Growth or Gridlock? The Economic Case for Traffic Relief and Transit Improvement for aby 30%. (A recent “commuter introducing them, therefore, is Greater New York, Partnership for New York City, December 2006.pain” study showed that Stock- not only governmental resolve—holm’s citizens suffer the least as elections are a risk to officials 2. IBM Global Commuter Pain Study Reveals Traffic Crisis in Key International Cities, IBM,grief of any commuters in 20 wanting to implement such June 2010.major cities of the world.)2 policies—but freedom of action. 3. Central London Congestion Charging Sixth Annual Impacts Monitoring Report, 2008. http:// Mayor Michael Bloomberg’s www.tfl.gov.uk/assets/downloads/sixth-annual-In London, authorities introduced approach to traffic congestion impacts-monitoring-report-2008-07.pdf.a congestion charge in 2003 and in New York, to give an obviousextended it between 2007 and example, was not even put to a2010, although in January 2011, vote in the state assembly. (Inthe “western extension” area Sweden, by contrast, the nationalwas removed from the charging government was allied with cityscheme. In the central congestion authorities in moving Stockholm’scharging zone, according to the plan forward.)latest traffic monitoring report,there continues to be a 16% In any case, congestion manage-decrease in all vehicles entering ment requires regional solutions.the zone when compared with In fact, it demands input frompre-charging traffic levels.3 every level of government, includ- ing national leadership—whichAs streets and roads are tradition- is the common lesson to beally considered a public good, learned from both Singaporecongestion charges represent new and Stockholm. Partnership for New York City | Cities of Opportunity | 69
    • Lifestyle assets:Following your urban bliss, from green to neon to basic black Cultural vibrancy1The greatest changes in this section this Now for the rankings: It is in this category, 26 New York 26year have to do with the definition of the yet again, that a great city proves to be more 25 Paris 22indicator itself, which now tries to capture than the sum of its parts, more than just anmore of a city’s actual character and its real array of steel, concrete and madding crowds. 24 London 25cultural gravity in the wider world. We also 23 Toronto 16have added and deleted some variables and Great cities remain so, in large part, 22 Sydney 19changed the definition of a very important because they are the ongoing laboratories ofone. In so doing, we have sought to further human interaction and of the art and culture 21 San Francisco 20clarify, and enrich, the information conveyed. produced by this enduring exchange. For sev- 20 Tokyo 21 eral years, New York, Paris and London have 19 Los Angeles 24First, for the changes: We deleted top global unsurprisingly ranked at or near the very top.fashion capitals and top 100 restaurants and This year, however, because of our changes, 18 Hong Kong 14moved the business trip index to the cost indi- Hong Kong drops to ninth from third last 17 Moscow 13cator. We also have moved green space as a year. It is joined by Tokyo as the only other 16 Chicago 18percent of city area from sustainability to here Asian city among the top 10, as Singaporebecause, increasingly, a green quality of life 16 Houston 11 also has dropped seven places this year.is seen as an aesthetic and cultural good, as 14 Singapore 10well as an environmental one. Asian cities lead in other variables, however. 13 Berlin 23 Beijing is ranked first in hotel rooms, whileMost important of all, we have tried to Hong Kong remains at the very top in the 12 Shanghai 6quantify a city’s actual cultural impact with impact of its skyline. Still, while nine cities 11 Madrid 12the new variable, cultural vibrancy, which are tied for first in sport and leisure activities, 10 Beijing 3represents a much more robust aggregation none of them are Asian.of data. 9 Istanbul 7 Stockholm, true to its reputation for environ- 8 Stockholm 9We have added two new measures to mental leadership, scores highest in green 7 Mexico City 15our former entertainment variable to gauge space. Moscow scores second. Russia’s capitalcultural vibrancy: the number of museums mostly does well in lifestyle assets and just 7 São Paulo 17(with an online presence) within each city makes the top 10. 5 Seoul 8and that city’s “zeitgeist.” The former is a 4 Johannesburg 5concrete, and self-evident, gauge of a city’s Finally, it is telling that, whereas Frankfurtspecific cultural identity; the latter speaks to scored fourth from the bottom in our 2010 3 Mumbai 1current cultural influence and linkages that report, Berlin scores in the middle of the 2 Santiago 4can’t be captured by the number of a city’s pack this year, at the very top of the second 1 Abu Dhabi 2museums or the quality of its restaurants. half of the rankings—and fourth in culturalFinally, because of the increasing significance vibrancy. Berlin is generally recognized asof sport in the modern world—not to men- having become one of the liveliest cities intion the importance of one or more teams to Europe since German unification (see inter-a city’s self-definition—we have made sport views with René Gurka and Rem Koolhaas, onand leisure activities an independent variable, pages 64 and 24, respectively) and a magnetfreeing it from its previous incorporation in for younger people especially. São Paulo alsoentertainment. makes it into the top 10 in cultural vibrancy as the global media buzz intensifies around its fashion, nightlife and energy. There is something to be said for “zeitgeist,” after all.70 | Cities of Opportunity | PwC
    • Sport and Green space Skyline impact Hotel rooms International tourists Score leisure activities as a percent of city area 26 22 25 23 25 147 26 23 9 22 23 125 26 14 7 25 26 123 26 17 19 13 20 111 26 24 15 12 9 105 26 21 12 11 14 104 12 10 24 24 12 103 26 13 13 8 18 102 12 7 26 16 22 97 6 25 16 18 17 95 26 15 22 9 4 94 26 20 17 19 1 94 17 8 21 10 24 90 17 18 2 15 13 88 6 11 23 21 19 86 17 16 6 17 16 84 2 19 18 26 15 83 12 4 8 20 21 72 17 26 1 8 7 68 12 12 10 5 11 65 12 3 14 14 5 65 6 6 20 6 10 56 17 9 5 1 6 43 2 5 11 3 8 30 12 1 3 2 2 24 6 2 4 4 3 21Each city’s score (here 147 to 21) is the sum of its rankings across variables. The city order from 26 to 1 High Highest rank in each variableis based on these scores. See maps on pages 18–19 for an overall indicator comparison. Medium1. Weighted combination of city rankings based on: the quality and variety of restaurants, theatrical and musical performances, and Lowcinemas within each city; which cities recently have defined the “zeitgeist,” or the spirit of the times; and the number of museums withonline presence within each city. The “zeitgeist” rankings take into account cultural, social and economic considerations. Partnership for New York City | Cities of Opportunity | 71
    • Past perfect?Cities walk a fine line between welcoming progressand preserving historic structures and ways of life During a recent month, an line recently transformed into a research. Certification of today’s unscientific sampling of the park through community support. planned heritage sites will even morning newspapers in New out the spread of preservation York uncovered stories on saving Perhaps most telling is a small across the continents. (Cities of the traditional hanoks of Seoul, town drama unfolding in the Opportunity considered measuring courtyard communities similar to heart of Brooklyn, until 1898 a and comparing urban preserva- the hutongs of China; preserving city of its own. Long known in tion efforts, but it quickly became the ruins of ancient Babylon; relo- America as a place that welcomes apparent that differences among cating the planned glass-and-steel a good fight, downtown Brooklyn cultures and economic conditions Gazprom tower in St. Petersburg residents, businesses and preser- would make city comparisons un- to maintain harmony in the city’s vationists are battling over a plan wieldy, inaccurate or impossible.) historic heart; protecting one of to create a historic district amid the few idyllic ponds left in New 20 or so commercial buildings OMA*AMO’s work also shows the York City’s Bronx from nearby dating from the turn of the time interval is shrinking between development; and restoring a 20th century.1 construction of a building and longer stretch of Manhattan’s High its historic designation. And, Line, an obsolete, raised freight Opponents argue the buildings ironically, heritage status attracts being saved are nothing special. waves of tourists who, in turn, “It looks like downtown Detroit,” jeopardize the integrity of what one resident commented. Busi- was just preserved. nesses fear development and commerce will dry up with What’s going on here? The past historic designation. Property is hot in the present. And why owners worry landmark status do we care so much about it? In will bring costly maintenance the simplest of senses, progress requirements. Preservationists, clearly demands change. It’s on the other side, argue distin- the mantra of modern business, guished architecture deserves to “change is good” and heart of be protected. homey wisdom, “You can’t make an omelette without breaking Preservation is taking off some eggs.” worldwide: Twelve percent of the world’s surface now is But perhaps a better preserved, and a vast amount of question should be asked new area awaits heritage certifica- to explain the immediacy tion, according to a study done by of preservation today: What AMO, the research arm of the Of- is authentic? And why do we fice of Metropolitan Architecture care about that? The hunger for (OMA), for last summer’s Venice the real often lies at the center of Biennale at which Rem Koolhaas preservation debates if the surface was awarded the Golden Lion is scratched deeply enough. In the for lifetime achievement.2 While age of virtual life, authenticity Europe accounted for the bulk offers a natural antidote to imper- of preservation a century ago, sonal personal communications; the pendulum now is swinging consumer goods that are the stuffIn its heyday in the mid-20th century, the High Line hauled goods above Manhattan’s the other way, according to the of dreams (even with obsolescene-industrial heart directly into factories and warehouses, avoiding congestion in thestreets below.72 | Cities of Opportunity | PwC
    • “Redevelopmentdestroyed notonly socialnetworks butalso took awaythe particularidentity...a placehad for centuries”van Oers says. After the trains stopped in 1980 and before it became a park in 2009, the High Line Joel Sternfeld, Fallen Billboard, November 2000 Courtesy welcomed weeds, refuse and rust. Demolition appeared the next step. of the artist and Luhring Augustine, New York.guaranteed); throwaway culture development. He envisions a “What we have seen in the last communities are its living custodi-that makes “15 minutes of fame” more organic and collaborative decades of the 20th century was ans; they embody it. Communityseem like an eternity; political model than the modernist era that redevelopment destroyed participation ultimately makes thecorrectness and hyperbole that of engineering neighborhoods not only social networks but also difference between preservation’sdrown out the simple and direct; in and out of existence based on took away the particular identity success and failure. Heritageand preoccupation with process distant ideas rather than on local and feeling, the atmosphere that conservation has to be matchedthat eclipses the focus on actual needs; of developers bankrolling a place had for perhaps centuries. to serve local needs, not onlyresults. (Not that all believe pres- change at the expense of commu- Now planners, decision makers preservation itself.ervation, per se, assures authen- nities; of architects manufacturing and conservationists are tryingticity. Some contend the zeal to instant landmarks; or of preserva- to identify those elements that “Otherwise expenses will fall onpreserve not only risks exceeding tionists fighting to protect historic should be retained so that either city authorities … Social networksthe value of what we’re saving structures without equal care for building stock can be renewed take care of each other. Uprootedbut creates a middle-of-the road surrounding ways of life. or careful surgical interventions 1. Joseph De Avila, The Wall Street Journal,limbo; more faux than old or new, in the built environment can December 15, 2010, “Save Brooklyn? Fuhgeddaboutit”.quashing imagination and innova- “Society has become so maintain the sense of place 2. CRONOCAOS, OMA*AMO, Venice Biennaletion along the way.) complex with so many and identity.” 2010 exhibit. From the introduction: “OMA and stakeholders, each having their AMO has been obsessed, from the beginning, with the past. Our initial idea for this exhibition was toAccording to Ron van Oers, head particular view and settled values, Van Oers draws an analogy focus on 26 projects that have not been presented before as a body of work concerned with time andof UNESCO’s World Heritage that the traditional, purely techni- to selective forestry where history. … We show the documentary debris ofCities Programme3, careful cal way of doing preservation timber is preserved to provide a these efforts. But 2010 is the perfect intersection of two tendencies that will have so-far untheorizedchoreography is required to is not cutting it anymore,” van continuing habitat. “Instead of implications for architecture: the ambition of themake the delicate balance of Oers explains. “The discussion is clearcutting and razing to build global taskforce of ‘preservation’ to rescue larger and larger territories of the planet, and the—interests work at a time when pretty similar all over the world,” something completely new and corresponding?—global rage to eliminate thethe entire approach to preserva- from the hutongs of Shanghai, to then put people back in, in a evidence of the postwar period of architecture as a social project. In the second room, we showtion demands rethinking. Van the favelas of São Paulo, to 19th sort of numbers game, the aim the wrenching simultaneity of preservation and destruction that is destroying in any sense of aOers is optimistic. He currently is century neighborhoods in lower now also is to maintain social linear evolution of time. The two rooms togetherdrafting new UNESCO guidelines Manhattan, to Paris, Rome, Liver- networks when preserving urban document our period of acute CRONOCAOS.”that seek to make conservation a pool and Manchester. heritage sites. No matter what 3. See World Heritage papers 27, Managing Historic Cities, September, 2010, for a compila-natural strategy for sustainable forces created a heritage, local tion of essays by van Oers and others on urban preservation, http://whc.unesco.org. Partnership for New York City | Cities of Opportunity | 73
    • Today, community support has restored the High Line as a popular park crowded with local residents and tourists who stroll above the now trendyneighborhood near the Hudson River.74 | Cities of Opportunity | PwC
    • “The world needs a new system mediating betweenpreservation and development,” Koolhaas writes.“We have never theorized a way to keep not only thephysical substance, but, as in a time machine, alsothe life that came with it.”communities and families provide can make the experience of this planners, city officials and neigh-automatically more problems for building reveal more about the borhoods try to define the rightcity authorities whether it’s in period.” (See full interview with approach to preservation. Whichhealth or productivity or eco- Rem Koolhaas as well as video at comes first, people or structures;nomic cost.” www.pwc.com/cities.) mind or body?4 Each side has strong points.Koolhaas interjects other All in all, urban preserva-considerations, citing “ambi- tion seems to be navigating Resolving the issues—like deter-guities and contradictions”: “How its way between a rock and mining whether the devil or angelcan the preserved “stay alive and a hard place on a number of lies in the details—will depend onyet evolve?” How can political nettlesome issues: Maintain the the energy, tenacity and humanitycorrectness be stopped from old, sometimes without discern- applied to the problems. Mean-allowing “the past to become ing prudently between gems and time, the promise of the citythe only plan for the future?” junk. Stay away from projects continues to inspire dreams and that challenge imagination, plans. And the energy and intel-Ultimately, Koolhaas writes in aesthetics and functionality. ligence to build the future comesCRONOCAOS at the Venice Settle somewhere in the middle from the people who put downBiennale, “The world needs a for plasticized paeans to the the roots that build a heritagenew system mediating between past; cityscapes congealed like worth saving.preservation and development … mummified kings, neither fullyWe have never theorized a way alive nor fully dead. And justify 4. After moving to Golden Age Amsterdam in 1629 to get away from the distractions of Paris,to keep not only the physical investing energy and resources Rene Descartes, champion of the life of the mind, wrote: “Amidst this great mass of busy peoplesubstance but, as in a time in historic preservation when who are more concerned with their own affairsmachine, also the life that came budgets are challenged in the than curious about those of others, I have been able to lead a life as solitary and withdrawnwith it … Pre-emptive mediocrity present, sometimes in providing as if I were in the most remote desert, whilehas become our dominant expres- adequate water, decent housing lacking none of the comforts found in the most populous cities.” [The Philosophical Writingssion of respect for history… It has and healthcare. of Descartes, Cambridge University Press,become impossible to date large 1985]. Benedictus Spinoza would be born in Amsterdam three years after Descartes’ arrival.sections of urban production; a However, 400 years later, the Spinoza was soon to be excommunicated from the city’s Jewish community for his freethinkinglow-grade unintended ‘timeless- debate between two notable city ideas that included naturalistic views on Godness’ is our contribution to the thinkers, Descartes and Spinoza, and a belief that bodily emotions and rational behavior were causally intertwined. This differedmarch of civilization.” over which deserves pride of from Descartes, “Cogito, ergo sum or “I think, place, mind or body, still appears therefore I am.” One way or the other, the debate continues today.In his current restoration for the to be playing out as developers,four buildings that make up TheHermitage, Koolhaas approachespreservation with as little inter-vention as possible, allowing thepast to speak for itself. “We wantto create a greater complexity but Please see www.pwc.com/citiesmaybe also greater transparency for videocasts of our discussionregarding what happened there … with Rem Koolhaas and a full-This is where the tsars lived; it’s length transcript.also where the Russian Revolutionbroke out. So let’s see whether we Partnership for New York City | Cities of Opportunity | 75
    • The futureunfolds forLeif Edvinsson… on a course “from cities ofhardware to cities of mindware”As a professor at Lund University Do you see the physical quality of How do you envision the intel- mind zones instead of shoppingand Hong Kong Polytechnic life in a city related to the quality ligent city of the future? What centers. So as the shopping centerUniversity as well as the first of intellectual capital? will it look like? What will its is replaced by mind zones, thechief knowledge officer at the government, thinkers, business second dimension will require Absolutely. That’s why this mightinsurer Skandia, Leif Edvinsson and social leaders be doing in upgrading the skill of urban plan- be the way we progress: frompioneered understanding of the areas like intellectual capital, and ners to the levels of neuroscience. cities of hardware to cities ofdynamics of intellectual capital related areas, to assure continu- mindware. But that is the quality Another dimension is a focus onin modern companies and ing socioeconomic well-being? dimension. This year’s Monocle drawing the maps of urban valuecommunities—work that led rankings of the most livable I think there are at least threethe British Brain Trust to name creation to determine where value cities in the world were Munich dimensions to this question, creation takes place in cities. Ithim “brain of the year.” Here, at number one; number two, which is a challenging one. TheEdvinsson discusses intellectual used to be the harbor. It used to Copenhagen; and number three, long-term, visionary perspective be the industrial areas. It used tocapital in various contexts, Zurich. All small cities with easy is that the future city, 25 yearsthe successes and challenges be the offices. In the city of the access. You can bike around, and down the road, will be like a future, it probably will be the net-of particular cities and the it’s easy to build relationships in brain, in which urban planning“neural planning” that can help works, which will not be captured such cities. becomes brain or neural plan- in traditional statistics. So youcities prepare for a knowledge- ning for the city. And we will becentered economy. need to develop the social and looking at how to create synapses city intelligence to create maps to between brains by creating special see where value creation is taking place.76 | Cities of Opportunity | PwC
    • Leif Edvinsson in the rotunda of the Stockholm Public Library, a city landmark known for Gunnar Asplund’s design and the nation’s first open shelf library.How would you describe these And how do you see a plan-mind zones? What are they? ner’s skills combining withA mind zone is a kind of open neuroscience? We have to start thinking aboutspace—an arena, or Ba, as IkujiroNonaka calls it—where the tra- We know today, for example, from a discovery made during the city as a cell—a stem cell,ditional square is replaced with the nineties in Italy by Giacomo with tremendous potential. Buta kind of quality-of-life meetingspace. The closest illustration we Rizzolatti that when you sit next to a person in a Starbucks, your also one that you can kill by nothave today is the knowledge café.But in Toronto, as well as here in neurons jump from your brain to that of the person next to you in giving it energy, by not cultivatingScandinavia, because of the cli- a process called “mirror neurons.” relationships. That’s whymate during the winter, we need It used to be called a “meetinga kind of built-in meeting space of minds.” But now you actually relational capital is so importantbut still open. A kind of openinnovation system, where people can measure this with technical devices, which means you can for the nourishment and growthgo in—you don’t know who you’llmeet, but you’ll probably enjoy visualize it. of intellectual capital.being there. It’s like going to theStarbucks of tomorrow. Partnership for New York City | Cities of Opportunity | 77
    • Shenzhen’s experience confirms that you have toprototype because that reduces the risk level for urbanplanners: You run a little prototype, which mightfail or be successful and then gradually scale up thesuccessful part. Shenzhen had about 30,000 peoplein 1979 and over 9 million today, as well as anumber of major universities.What recommendations would for Helsingborg. One of the three The other family of cities we In Economic Possibilities for Ouryou give to city governments and architectural firms finally chosen should mention comprises the Grandchildren, written in 1930,city policymakers or to businesses by the city to work on the project, teeming emerging cities in Asia, Keynes envisioned that, 100 yearsor universities operating in cities? White arkitekter AB, in whose Africa and Latin America. It later, the economic challenges ofWhat should they be doing, or team I participated, actually calls seems as if there’s a tremendous sustaining life would be solved,thinking about, to help move us its proposal “Mindzone”—which tension between the hope and and our new challenge would bein the right direction? is about developing an urban the challenge. What would you to become creative, to use our mind zone, as I described it above, do to build intellectual capital in time constructively for ourselvesThree steps: Number one is, instead of a shopping center. Mumbai, Johannesburg and other and others. Do you think that,start asking some good questions cities in the developing world? through advancing wisdom andabout the social intelligence of a Looking at how cities in differ- intelligent use of science andcity. Observe the signals. The sec- ent parts of the world should be Brain import, localizing structural technology, we can ever graduateond is, draw a new type of urban building long-term intellectual capital and commercializing it to that? Where life is no longer amap, one based not on houses assets and nurturing knowledge into markets that are both near battle for survival?and streets and flow of water workers, what do you think a and far away. For example, today,but flow of knowledge—which mature city in the US or the EU China is buying a lot of land in To some extent, I think theprobably will lead to urban should be doing? Or is that too Africa as well as leasing land in intellectual-capital nations areplanning that focuses on the obvious a question? Mexico for food production. That there already. If you take ordinaryin-between spaces. will have an impact on the trade Swedes, they work perhaps 30 It’s probably the most complex of food between Africa and China, years during their lifetime—whichWhat’s an in-between space? one. One of the most appealing and it will also upgrade the qual- is about 85 years. In other words, cases I know of is Shenzhen, ity of food production in Africa. they already spend close to 65%What’s in between buildings. which, as you know, is the for- of their lifetime on somethingWhat’s in between floors. What’s merly little city north of Hong other than a job. So, perhaps,in between people. It’s like a Kong that was selected by Deng we are witnessing this creative,photographic negative in which Xiaoping in 1979 as the prototype quality-of-life existence already.you more or less see the non- for transforming China from com-tangible dimension. munist to capitalist. Its experienceFinally, the third step is to build confirms that you have to proto-and visualize the city as a mind type because that reduces the riskor brain. Consequently, you need level for urban planners: You runto have neuroscientists come and a little prototype, which mightwork in urban-planning units. fail or be successful and then gradually scale up the successfulHas that occurred anywhere? part. Shenzhen had about 30,000 people in 1979 but has more thanA little bit, in a city called Solna, 9 million today, as well as a num-here in Sweden, where PwC ran ber of major universities. Now it’sa sustainable city development This interview has been being integrated with Hong Kongproject two years ago. But the condensed for publication in the into an innovation zone. So themost tangible example of what report. To read all full-length recommendation probably is toI’m talking about so far is the city interviews, please visit our prototype a knowledge zone orof Helsingborg, which has inaugu- website: www.pwc.com/cities. innovation zone or urban-rated a project called H+, “H” enterprise zone.78 | Cities of Opportunity | PwC
    • Key to the variablesAir pollution performance parameter categories: download Cost of public transportMeasurement of the quality of a city’s air throughput, upload throughput and latency. Cost of the longest mass transit rail tripbased on the degree of pollution from sources A formula weights each category according to within a city’s boundaries. The cost of a bussuch as vehicles and power plants. the quality requirements of a set of popu- trip is used in the cities where there are no lar current and probable future broadband rail systems.Aircraft movements applications.Count of air traffic movements at each of Crimethe major airports servicing a city, including Business trip index Amount of reported crimes in a city such ascivil international and domestic passenger, Weighted index of the cost of a business trip petty and property crimes, violent crimescargo and non-revenue flights but excluding to a city, including measures such as taxi cab and street crimes.military flights. rates, lunch prices, and quality of entertain- ment and infrastructure. The business travel Cultural vibrancyAirport to CBD access index comprises the following five categories: Weighted combination of city rankings basedMeasure of the ease of using public transit stability, healthcare, culture and environment, on: the quality and variety of restaurants,to travel between a city’s central business infrastructure and cost. theatrical and musical performances, anddistrict and the international terminal of cinemas within each city; which citiesits busiest airport in terms of international City carbon footprint recently have defined the “zeitgeist,” or thepassenger traffic. Cities are separated into Annual amount of CO2 emissions in metric spirit of the times; and the number of muse-categories according to whether a direct rail tons divided by the city population. Supple- ums with online presence within each city.link exists between the city center and the air- mental national reports on data and policies The “zeitgeist” rankings take into accountport—if so, the number of transfers required, on greenhouse gas emissions were used when cultural, social and economic considerations.and if not, whether there is a public express city-level data were not available.bus route to the airport. Cities with direct Digital economy score*rail links are preferred to those with express Classroom size Assessment of the quality of a country’sbus services. Cities with rail links with fewer Number of students enrolled in public information and communications technol-transfers are ranked higher than those with primary education programs divided by the ogy (ICT) infrastructure and the ability of itsmore. Cities are ranked against other cities number of classes in these programs. Primary consumers, businesses and governments toin the same category according to the cost education programs usually begin at ages five use ICT to their benefit.of a single one-way, adult weekday trip to seven and last four to six years. Primaryand the length of the trip, with each factor education is counted as the equivalent of Domestic market capitalizationweighted equally. kindergarten through grade 5 in the US Total number of issued shares of domestic education system wherever possible. companies listed at a city’s stock exchange(s)Attracting FDI: Capital investment multiplied by their respective prices at a givenTotal value of greenfield (new job-creating) Commute time time. This figure reflects the comprehensivecapital investment activities in USD in a city Assessment of the average commute time value of the market at that time in millionsthat are funded by foreign direct investment. for workers commuting into or within a of USD.Data cover the period from January 2003 city across all modes of transport, measuredthrough May 2010. in minutes. Ease of entry: Number of countries with visa waiver*Attracting FDI: Number of greenfield Cost of business occupancy Number of nationalities able to enter theprojects Annual gross rent divided by square feet of country for a tourist or business visit withoutNumber of greenfield (new job-creating) Class A office space. Gross rent includes lease a visa. Excludes those nationalities for whomprojects in a city that are funded by foreign rates, property taxes, maintenance and man- only those with biometric, diplomatic ordirect investment. Data cover the period from agement costs. official passports may enter without a visa.January 2003 through May 2010. Cost of living Ease of firingBroadband quality score Measure of the comparative cost of more than Ranking based on notification and approvalMeasurement of the quality of a broadband 200 items in each city. Counted items include requirements for termination of a redundantconnection in a given country. The Broadband housing, transport, food, clothing, household worker or a group of redundant workers,Quality Study is an index that is calculated goods and entertainment. obligation to reassign or retrain, and prioritybased on the normalized values of three key rules for redundancy and re-employment. Partnership for New York City | Cities of Opportunity | 79
    • Ease of hiring Flexibility of visa travel* passengers are defined as air travelers comingRanking based on restrictions and regulations Ranking based on the number of visa waivers from different ports of departure who stayemployers must follow when taking on new available for tourist or business visits and at the airport for brief periods, usually onestaff. the length of time for which the visa waiver hour, with the intention of proceeding to their is granted. Ranking is based on the number first port of destination (includes sea, air andEase of starting a business of those countries that can stay for at least other transport hubs).Assessment of the bureaucratic and legal 90 days, excluding those countries whosehurdles an entrepreneur must overcome to residents can enter only without a visa Inflationincorporate and register a new firm. Accounts if they have a biometric, diplomatic or Ranking according to how far a country devi-for the number of procedures required to official passport. ates from a +2% inflation rate, with inflationregister a firm; the amount of time in days that is closer to +2% being favored over infla-required to register a firm; the cost (as a per- Foreign embassies or consulates tion or deflation that is further from this rate.centage of per capita income) of official fees Number of countries that are represented A +2% inflation rate is used as the bench-and fees for legally mandated legal or profes- by a consulate or embassy in each city. mark because it is widely regarded as a targetsional services; and the minimum amount of or healthy inflation rate by large internationalcapital (as a percentage of per capita income) Green space as a percent of city area banks. A country’s inflation rate is based onthat an entrepreneur must deposit in a bank Proportion of a city’s land area designated a projection of how much its Consumer Priceor with a notary before registration and up as recreational and green spaces to the total Index, which measures the rise in prices ofto three months following incorporation. land area. Excludes undeveloped rugged goods and services, is expected to rise terrain or wilderness that is either not during the course of 2010.End-of-life care* easily accessible or not conducive to useRanking of countries according to their provi- as public open space. Intellectual property protection*sion of end-of-life care. The Quality of Death Leading business executives’ responses toIndex scores countries across four categories: Health system performance* the question in the World Economic Forum’sBasic End-of-Life Healthcare Environment; Measurement of a country’s health system Executive Opinion Survey 2010 that asks,Availability of End-of-Life Care; Cost of End- performance made by comparing healthy life “How would you rate intellectual propertyof-Life Care; and Quality of End-of-Life Care. expectancy with healthcare expenditures per protection, including anti-counterfeitingThese indicator categories are composed of capita in that country, adjusted for average measures, in your country? (1=very weak;27 variables, including quantitative, qualita- years of education (years of education is 7=very strong).” The survey covers a randomtive and “status” (whether or not something strongly associated with the health of popu- sample of large and small companies in theis the case) data. The indicator data are lations in both developed and developing agricultural, manufacturing, non-manufactur-aggregated, normalized, and weighted to countries). Methodology adapted from the ing, and service sectors.create the total index score. 2001 report “Comparative efficiency of national health systems: cross-national International touristsEntrepreneurial environment* econometric analysis”. Annual international tourist arrivals for 100Measurement of the entrepreneurial attitudes, cities collected by Euromonitor International.entrepreneurial activity and entrepreneurial Hospitals Euromonitor’s figures include travelers whoaspirations in a country. The Global Entre- Ratio of all hospitals within each city pass through a city, as well as actual visitorspreneurship Index integrates 31 variables, accessible to international visitors to every to the city.including quantitative and qualitative mea- 100,000 members of the total population.sures and individual-level data. Internet access in schools* Hotel rooms Leading business executives’ responses toFinancial and business services Count of all hotel rooms within each city. the question in the World Economic Forum’semployment Executive Opinion Survey 2010 that asks,Proportion of employees working in busi- Housing “How would you rate the level of access tonesses located within a city in the financial Measure of availability, diversity, cost and the Internet in schools in your country?and business services sectors to the total quality of housing, household appliances and (1=very limited; 7=extensive).” The surveyemployed workforce in the city. Where indus- furniture, as well as household maintenance covers a random sample of large and smalltry data were disaggregated, the equivalents and repair. companies in the agriculture, manufacturing,of “finance and insurance” and “real estate non-manufacturing, and service sectors. Incoming/Outgoing passenger flowsand rental and leasing” were included in Total number of incoming and outgoing pas- Level of shareholder protectionfinancial services; and the equivalents of sengers, including originating, terminating, Measurement of the strength of minority“professional and technical services” and transfer and transit passengers in each of the shareholder protection against misuse of cor-“management of companies and enterprises” major airports servicing a city. Transfer and porate assets by directors for their personalwere included in business services. transit passengers are counted twice. Transit80 | Cities of Opportunity | PwC
    • gain. The Strength of the Investor Protection Development (OECD) assessment of 15 year- Political environmentIndex is the average of indices that measure olds’ academic preparedness. Top performers Measure of a nation’s relationship with“transparency of transactions,” “liability for are defined as those students who achieved foreign countries, internal stability, lawself-dealing” and “shareholders’ ability to in the top two proficiency levels (Level 5 and enforcement, limitations on personal freedomsue officers and directors for misconduct.” Level 6) on the math and science portions of and media censorship. the test. Comparable examinations are usedLibraries with public access wherever possible to place cities not included Purchasing powerNumber of libraries within each city that in the OECD assessment. Measure of the comparative relationshipare open to the public divided by the total between prices and earnings calculated bypopulation and then multiplied by 100,000. Miles of mass transit track dividing net hourly income by the cost of a Total miles of metro, tram and light rail track basket of 122 goods and services, includingLicensed taxis within a city divided by the total population rent.Number of officially licensed taxis in each and then multiplied by 100,000. Includescity divided by the total population and then monorail and commuter rail that run within Quality of livingmultiplied by 1,000. a city if they operate as metros in the city. Score based on more than 30 factors across five categories: socio-political stability,Life satisfaction* Natural disaster risk healthcare, culture and natural environ-Average score in robust international surveys Risk of natural disasters occurring in or near ment, education and infrastructure. Eachof country populations in response to the a city. Counted hazards include hurricanes, city receives a rating of either acceptable,question, “All things considered, how satisfied droughts, earthquakes, floods, landslides and tolerable, uncomfortable, undesirable orare you with your life as a whole these days?” volcanic eruptions. intolerable for each variable. For qualitativeThe (Un)Happy Planet Index 2.0 predomi- indicators, ratings are awarded based on thenantly drew its data from the 2006 Gallup Number of Global 500 headquarters Economic Intelligence Unit analysts’ and in-World Poll, with the 2000 and 2005 World Number of Global 500 headquarters located city contributors’ judgments. For quantitativeValues Surveys being used to fill in values for in each city. indicators, ratings are calculated based oncountries excluded from the Gallup survey. cities’ relative performances on a number ofResponses are scored on a numeric scale Operational risk climate* external data points.from 0 to 10, where 0 is dissatisfied and Quantitative assessment of the risks to busi-10 is satisfied. ness profitability in each of the countries. Recycled waste Assessment accounts for present conditions Percentage of municipal solid waste divertedLiteracy and enrollment* and expectations for the coming two years. from the waste stream to be recycled.Measurement of a country’s ability to The operational risk model considers 10generate, adopt and diffuse knowledge. separate risk criteria: security, political Renewable energy consumption*The World Bank’s Knowledge Index is stability, government effectiveness, legal and Percentage of total energy consumption in aderived by averaging a country’s normal- regulatory environment, macroeconomic nation that comes from renewable sources.ized performance scores on variables in three risks, foreign trade and payment issues, labor Renewable energy sources include geother-categories—education and human resources, markets, financial risks, tax policy, stan- mal, solar thermal, solar voltaics, hydro,the innovation system, and information and dard of local infrastructure. The model uses wind, and combustible renewable sources andcommunications technology. The variables 66 variables, of which about one-third are waste (composed of solid biomass, liquid bio-that compose education and human resources quantitative. mass, biogas, industrial waste and municipalare adult literacy rate, secondary education waste). Non-renewable sources include coalenrollment and tertiary education enrollment. Percent of gross domestic expenditure and peat, crude oil, petroleum products, gas on R&D* and nuclear.Mass transit coverage Total gross domestic expenditure on researchRatio of kilometers of mass transit track to and development in 2007 as a percentage of Research performance of topevery 100 square kilometers of the developed the gross domestic product. universitiesand developable portions of a city’s land area. Sum of the scaled scores of a city’s universi-A city’s developable land area is derived by Percent of population with higher ties that are included in the rankings of topsubtracting green space and governmentally education performing research universities in the world.protected natural areas from total land area. Number of people who have completed at Scaled scores are based on the number of least a university-level education divided by articles published, number of citations toMath/Science skills attainment* the total population. A university-level educa- published work and the quantity of highlyTop performers’ combined mean scores on tion is set equivalent to a Bachelor’s degree or cited papers. The scoring accounts for socialthe math and science components of an higher from a US undergraduate institution. sciences papers but not humanities papers.Organisation for Economic Co-operation and Partnership for New York City | Cities of Opportunity | 81
    • The rankings favor large universities, universi- venture capital, R&D capabilities, software Total tax rateties with medical schools, and universities that exports, quality of ICT infrastructure and Total amount of taxes and any mandatoryfocus predominantly on the “hard sciences” specialization in software development. The contributions required by local, state andrather than social sciences and humanities. multimedia design centre rankings are based national law payable by a business as a per- on an assessment of 120 quality competi- cent of its profit. Does not include employerRigidity of hours tiveness indicators, including the size of the contributions to healthcare coverage.Ranking based on the flexibility in scheduling location’s leisure and entertainment sector,of nonstandard work hours and annual paid its specialization and track record, information Traffic congestionleave for a business. technology infrastructure, quality of life and Measure of traffic congestion and congestion skills availability. policies for each city scored on the level ofSkyline impact congestion as well as the modernity, reliabil-Measure of the visual impact of completed Sport and leisure activities ity and efficiency of public transport.high-rise buildings on their skylines, account- The quality and variety of sport and leisureing for the height and the breadth of a activities within each city. Workforce management riskskyline. Cities are given scores based on the Ranking based on staffing risk in each citynumber of buildings located within them that Strength of currency (SDRs per cur- associated with recruitment, employment,are above 90 meters tall, with taller buildings rency unit)* restructuring, retirement and retrenchment.receiving more points than smaller ones. Currency value of the Special Drawing Right, Risk was assessed based on 25 factors or the SDR per currency unit. The currency grouped into five indicator areas: demo-Skyscraper construction activity value is determined by summing the values graphic risks associated with labor supply,Count of skyscraper construction projects of a basket of major currencies (USD, euro, the economy and the society; risks related toin each city under way as of September 26, Japanese yen and pound sterling) in USD governmental policies that help or hinder the2010. A skyscraper is defined as any based on market exchange rates and the management of people; education risk factorsbuilding 12 stories or greater in height. amount that can be bought by a given associated with finding qualified profession- currency unit. als in a given city; talent development riskSoftware and multimedia factors related to the quality and availabilitydevelopment and design Thermal comfort of recruiting and training resources; and risksCombined score for each city in fDi magazine’s Measure of the average deviation from associated with employment practices. ABest Cities for Software Development and optimal room temperature (72 degrees lower score indicates a lower degree of over-Best Cities for Multi-Media Design Centres Fahrenheit) in a city. January and July heat all staffing risk.indices. Both indices weight a city’s indices were calculated for each city using anperformance 70% based on the quality of online tool that integrates average tempera- Working age populationthe location and 30% based on the cost of ture and average morning relative humidity Proportion of a city’s population aged 15-64the location. The software design index during each month. A final thermal comfort to the total population of the city.is based on an assessment of 120 quality score was derived by first taking the differ- *Country level data.competitiveness indicators. These indicators ence between a city’s heat index for eachinclude availability and track record in ICT, month and optimal room temperature andavailability of specialized-skills professionals then averaging the absolute values of thesesuch as scientists and engineers, access to differences.82 | Cities of Opportunity | PwC
    • For more informationOn research … On media inquiries … On business implications …Merrill Pond Michael Scotto PwCPartnership for New York City Partnership for New York City Hazem Galalmpond@pfnyc.org mscotto@pfnyc.org Global Leader, Cities Network+1 212.493.7515 +1 212.493.7511 hazem.galal@br.pwc.com +55 21 3232 6168Sabrina McColgan Elliott FriederPwC PwC Jan Sturessonsabrina.y.c.mccolgan@us.pwc.com elliott.j.frieder@us.pwc.com Global Leader, Government & Public Services+1 646.471.8180 +1 646.471.3108 jan.sturesson@se.pwc.com +46 (0)46 286 93 39 Egon de Haas Global Director, Government & Public Services egon.de.haas@nl.pwc.com +31 (0) 20 5686162ContributorsStrategic Direction Core TeamPwC Partnership for New York City Partnership for New York CityTom Craren Kathryn Wylde Brook JacksonBrendan Dougher Roger Maldonado Merrill Pond Michael Scotto Andrew SullivanProject direction PwC Per BerglundPwC Partnership for New York City Dorothy JonesWilliam Sand, communications Merrill Pond, research Adiba Khan Sabrina McColgan Colin McIlheney Cliona O’BeirneDesign Tatiana Pechenik William SandOdgis + Company Thomas van HornJanet OdgisRhian SwieratPhotography:Rem Koolhaas—Getty ImagesJudith Rodin—Jennifer AltmanKlaus Baur, Guenther Krug and René Gurka—Thomas Dworzak for Magnum PhotosMortimer Zuckerman—Fred R. Conrad,The New York Times1953 High Line photo—James Shaughnessy,courtesy Friends of the High LineLeif Edvinsson and 2011 High Line photo—Kate Örne
    • www.pwc.comwww.pfnyc.orgThe papers and printer used in the production of this study are certified to Forest Stewardship Council (FSC) standards,which promote environmentally appropriate, socially beneficial, and economically viable management of the world’sforests. The cover and text for this publication was printed on paper containing 10% postconsumer waste material.By printing at a facility utilizing 100% wind energy and using postconsumer recycled fiber in lieu of virgin fiber: 11 trees were preserved for the future 511 lbs of solid waste were not generated 31 lbs of waterborne waste were not created 1,006 lbs net of greenhouse gases were prevented 4,616 gallons of wastewater flow were saved 7,696,325 BTUs of energy were not consumed