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Public Policy-Making

Competitive Cities: Driving Productivity and Prosperity

Christopher Colford's picture



The future will be won or lost in the world’s cities. With half of humanity now living in cities – and with the breakneck pace of urbanization likely to concentrate two-thirds of the world’s population into metropolitan regions by 2050 – getting urbanization right is the over-arching challenge of this globalizing age.
 
Urban policy is now at the top of the news due to the bankruptcy filing of forlorn Detroit, which has long been a symbol of urban decay. Yet the urbanization drama goes far beyond the de-industrializing North: The destiny of cities worldwide will determine the success or failure of virtually every development priority – and it will be especially vital for job creation, innovation and productivity growth, environmental sustainability and social inclusion.

“Rapid urbanization is the defining trend of the 21st Century,” said Sanjay Pradhan, Vice President of the World Bank Institute, as he outlined the daunting statistics to a New York City Global Partners  conference on “Business Innovation and Entrepreneurship: City Strategies” at Columbia University. “Nearly two billion new urban residents are expected to stream into the world’s cities by 2030 – most of them, in developing countries.”

Managing the growth of emerging megacities will be daunting: The urban populations of Africa and South Asia are poised to double within the next 20 years. An additional 310 million working-age people – about 35 percent of the coming expansion of the global work force – will soon arrive in just 600 of the world’s largest cities. With a worldwide network of densely developed cities destined to become the driver of prosperity, the prime centers of opportunity will be those cities that can attract and  energize all forms of productive capital – of the financial, technological and intellectual varieties.

Cities accelerate economic transformation because of their intense population density, which encourages social and economic interactions with greater “social friction” than non-urban settings, as Harvard economics professor Edward Glaeser emphasizes in his influential work, “Triumph Of The City: How Our Greatest Invention Makes Us Richer, Smarter, Greener, Healthier and Happier.” Spontaneous and serendipitous exchanges of ideas turn cities into vibrant hubs of innovation, helping generate 70 percent of global GDP and making cities the world’s focal points of innovation, entrepreneurship, creativity and culture.

In a relentlessly competitive world – which is both “flattened” with a level playing field (as journalist Tom Friedman contends) and “spiky” with intense concentrations of wealth and talent (as urbanologist Richard Florida argues) – competitiveness will depend on both local creativity and global connectivity.

If they can assert what Edwin Heathcote of the Financial Times calls  “urban ingenuity,” cities that clearly define their distinctive identity will thrive by embracing their economic vocation and enhancing their strengths in global value chains. Those urban nodes of creativity that are efficiently networked through technology, transportation and trade connections will be able to take maximum advantage of opportunities that require a global sensibility and a global frame of mind.