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sustainable urbanization

Competitive Cities: Changsha, China – coordination, competition, construction and cars

Z. Joe Kulenovic's picture

Cites are the heartbeat of the global economy. More than half the world’s population now resides in metropolitan areas, making a disproportionate contribution to their respective countries’ prosperity. The opportunities and challenges associated with urbanization are quite evident in the world’s most populous country, whose cities are among the largest and most dynamic on Earth. To better understand what a thriving metropolitan economy looks like in the Chinese context, our Competitive Cities team selected Changsha, the capital of Hunan Province, for inclusion among our six case studies of economically successful cities, as the representative of the East Asia Pacific Region.  
 
As recently as the turn of the millennium, Changsha’s economy was still dominated by low-value-added, non-tradable services (e.g. restaurants and hair salons) – an economic structure commonly seen today in many low- to lower-middle-income cities. Since then, Changsha has achieved consistently high, double-digit annual growth in output and employment, despite its landlocked location and few natural or inherited advantages, such as proximity to trade routes or mineral wealth. With per capita GDP surging from US $3,500 in 2000 to more than US $15,000 in 2012, Changsha has accomplished a feat so many other World Bank clients can only dream of: leapfrogging from lower-middle-income to high-income status in barely a decade, and an economy now comprised of much more sophisticated, capital-intensive industries. 

  

Photos via Google Maps

We took a closer look at the success factors behind this city’s dramatic growth story, and what lessons its experience may hold for cities elsewhere, especially in terms of (1) how to overcome coordination failures and bureaucrats working in silos and (2) how to ensure a level playing field for all firms in the city (that is to say, competition neutrality), even in industries with a strong SOE presence – something still not commonly seen in China these days.
 
Changsha’s (and Hunan’s) growth has clearly benefitted from a highly conducive national macroeconomic and policy framework, including a plan entitled The Rise of Central China, aimed at spurring development in areas beyond the country’s booming coastal regions. This and other initiatives provided for the removal of investment restrictions, more favorable tax treatment, and enhanced infrastructure and connectivity to coastal commercial gateways. China’s massive stimulus plan in 2009 (in response to the global financial crisis and recession) jump-started construction activity in the country, providing further impetus to one of Changsha’s principal industries, construction machinery and equipment manufacturing. And national government interventions in earlier decades – especially the establishment of dedicated research institutes – provided a critical contribution to Changsha’s accumulation of expertise in such disciplines as machinery or metallurgy.
 
Notwithstanding these national initiatives, responsibility for local economic development in China is highly decentralized, with municipal government leaders directly tasked with achieving GDP growth and tax revenue targets. Municipal governments also have rights over almost all land in cities, which can be leased or used as collateral to fund local infrastructure. In Changsha, municipal authorities used these prerogatives to improve their city’s economic competitiveness.

Mobilizing the buildings sector for climate action

Marcene D. Broadwater's picture

Also available in: Spanish

Kolkata West International City, India. Credits: IFC


With the passing of the historic climate change agreement in Paris, the buildings sector, which accounts for 32 percent of total energy use and 19 percent of GHG emissions, has been highlighted as a key industry to transform in order to achieve global climate mitigation goals. The private sector has responded with ambitious pledges for action, and must now turn to practical solutions to put the building sector on a low-carbon path.

The good news is that the level of aspiration is very high. I participated in the first-ever Buildings Day at COP21, witnessing ambitious commitments from both the public and the private sector. Over 90 countries have included attention to buildings in their Nationally Determined Contributions (NDCs), with greater than 1,300 commitments from companies and industry and professional organizations.

Play the 'Competitive Cities' game: See whether you're a guru of urban competitiveness

Juni Tingting Zhu's picture

To start the new year, I've designed a 10-question game to recap some of the major findings of our flagship report, “Competitive Cities for Jobs and Growth: What, Who and How.”

The report, which was launched at at a World Bank conference in Washington on December 10, 2015, has been gaining wide recognition in the news media. Positive coverage has included analyses in Citylab (edited by urbanologist Richard Florida) and in Citiscope (edited by urbanologist Neal Peirce), as well as an essay in The Huffington Post by Marcelo Giugale, senior economic advisor in the World Bank Group's practice group on Equitable Growth, Finance and Institutions (EFI).

This short 3-minute game features many of the central themes of the Competitive Cities initiative.  Please click on  this link – http://sgiz.mobi/s3/The-Competitive-Cities-Game – to start the game.





For more information about the Competitive Cities initiative at the World Bank, please visit: http://www.worldbank.org/en/topic/trade/publication/competitive-cities-a...  

Urbanization reviews: connecting the dots between urban geography and economic development

Ede Ijjasz-Vasquez's picture
Over the last 5 years, the World Bank has conducted a number of in-depth, systematic analyses to zero in on the specifics of urbanization in its client countries. These so-called “Urbanization Reviews” pay special attention to the linkages between urban geography and economy: Where do people live within cities? Where are the jobs? How do residents move around cities? How do they move between cities? How does this affect cities’ economy as well as their country’s overall development?

In this video, Marisela Montoliu Muñoz, World Bank Director for Urban Development and Disaster Risk Management, provides a sweeping overview of the Bank’s Urbanization Reviews, and explains why a better understanding of the urbanization process is critical to helping countries grow sustainably and maximize their economic potential.

Click here to view a list of Urbanization Reviews that have been completed so far.

Making urbanization work for Africa

Ede Ijjasz-Vasquez's picture
With close to half a billion people living in cities in 2015 and 1 billion expected in 2040, Africa will have doubled its urban population in the next 25 years. At this early stage in its urbanization process, Africa has the chance to avoid the mistakes of so many other regions and get it right. See in this video some solid data on the particular characteristics of urbanization in Africa --where manufacturing is declining in rapidly growing cities, and population is sprawling-- and a proposed approach to urban jobs, housing and transport that will make cities work not just in terms of infrastructure, but most importantly to improve the lives of their residents.
  

Despite expectations, cities in East Asia are becoming denser

Chandan Deuskar's picture

 
When we think of urban expansion in the 21st century, we often think of ‘sprawl’, a term that calls to mind low-density, car-oriented suburban growth, perhaps made up of single-family homes. Past studies have suggested that historically, cities around the world are becoming less dense as they grow, which has prompted worries about the environmental impacts of excess land consumption and automobile dependency. A widely cited rule of thumb is that as the population of a city doubles, its built area triples. But our new study on urban expansion in East Asia has yielded some surprising findings that are making us rethink this assumption of declining urban densities everywhere.

Nyerere’s Biggest Surprise: An Urban Tanzania

Jacques Morisset's picture

 Scott Wallace / World BankIf Mwalimu Julius Nyerere, the Father of the Nation, visited Dar es Salaam today, there is no doubt he would be surprised at what the city has morphed into since his time. From less than one million people in the early 1990s, Dar es Salaam’s population has grown at an average rate of 5.8 percent annually to reach 4.4 million people today, making it one of the fastest growing cities in the world. It is now estimated that the city will be home to over 10 million inhabitants by 2027.

The urbanization process in Tanzania is a tale of two cities, as illustrated by the recent growth of Dar es Salaam. At first glance, Dar es Salaam looks like a modern city with a panoramic skyline of tall new buildings. But this façade of the modern metropolis quickly gives way to sights of congestion in the city slums, highlighting the realities of poor urban planning and inadequate public services.

Competitive Cities: Which Are They, and Why Should We Care?

Alexandra M. Cech's picture

With the majority of the world’s population now urban, cities are rising in prominence. Growing attention is being paid to cities’ potential to increase incomes and create jobs – whether through financial services and electronics manufacturing in Chennai, regionally integrated manufacturing around Guangzhou, or social and physical transformation in Medellin. Less prominent cities are asking how they can attain better economic performance. Hence economic competitiveness has become a preoccupation for city leaders – by which we mean a city’s ability to spawn, expand and attract businesses that create jobs for its residents, and to enlarge the overall economic pie.
 
So, how do cities make themselves more competitive? This year, the World Bank is investing in a Competitive Cities Knowledge Base (CCKB) initiative – a joint project between the World Bank Group’s departments working on Private Sector Development and Urban Development. The project includes in-depth case studies of economically successful cities across all continents. According to our current analysis, six of the most interesting cities for this work will be Bucaramanga (Colombia), Patna (India), Bandung (Indonesia), Agadir (Morocco), Kigali (Rwanda) and Izmir (Turkey). We are in the process of confirming these conclusions before beginning each of the case studies.


 

Five Opportunities for 21st-Century Transport

Jose Luis Irigoyen's picture
The world is in the midst of unprecedented urbanization, with cities expected to hold 5.2 billion residents by 2050. One of the major challenges of the 21st century, therefore, is achieving a sustainable future for our cities. And transport – which connects people to economic opportunities, education, health services, and more – can make or break “The Future We Want.”

Decisions made at international summits this year and next will establish the framework for global action for decades to come. The transport sector’s future impact on mobility, congestion, economic opportunity, human health, and climate change will be determined by the choices we make today. To ensure transport contributes to poverty reduction and shared prosperity, a shift is needed in the way urban mobility systems are planned and designed. Building a sustainable transport future will require an integrated approach with the cooperation of multiple stakeholders: transport and city leaders, as well as the development and business communities.

In this spirit, the team of co-organizers and partner organizations behind Transforming Transportation – a two-day conference beginning today that convenes business leaders, policymakers, and city and transport officials – has identified five opportunities to move human society toward transport of the 21st century. These areas for action include: road safety, mid-sized cities, regional and local governments, finance, and data and technology.

Transforming Transportation for More Inclusive, Prosperous Cities

Jose Luis Irigoyen's picture
Also available in: Español | Français | 中文

 UNFCCC/FlickrLeaders in the transport, development, and for the first time, business sectors will convene for Transforming Transportation this week in Washington, DC.

Cities are the world’s engines of economic growth. Yet many have a long way to go when it comes to ensuring safe and affordable access to jobs, education, and healthcare for its citizens—in part because their transport systems are inadequate and unsustainable. This weakness is visible in packed slums and painful commutes in cities that fail to provide affordable transport options.

Inadequate transport comes with other costs related to air quality and safety. Beijing, China, battles dangerous levels of air pollution due in large part to motor vehicle emissions. Major Indian metropolises like Mumbai, Kolkata, and Chennai are growing out instead of up, contributing to increased travel distances and an estimated 550 deaths every day from traffic accidents. And across the globe, cities are the locus of up to 70 percent of greenhouse gas (GHG) emissions driving climate change.

Poor transport systems not only hinder the public health and economic growth of cities, they can spur civil unrest. More than 100,000 protestors, for example, gathered in Rio de Janeiro, Brazil, on one night in June 2013 to express a wide range of grievances, including transportation fare hikes, poor public services despite a high tax burden, and other urban issues.

But in these challenges lie significant opportunities – particularly for the business and transport sectors at the city level.