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competitive cities

All I need is the air that I breathe…

Anna Gueorguieva's picture

Also available in: 中文, Français

Photo by Jens Schott Knudsen via Flickr CC

Recent research shows that air quality affects the productivity of high-skilled workers. What does this mean for developing cities?

City governments invest a lot in job creation—they plan infrastructure, skills initiatives, and industry support with the goal to improve productivity and generate jobs and growth, especially in the high-skill sectors. Yet, there might be an important input to productivity that cities can pay more attention to: clean air.

Recent research suggests that a 10-unit increase in the air quality index decreases productivity by 0.35%. Seems marginal? This “productivity slow-down” costs the high-skill economy of China $2.2 billion per year for each additional 10 units of the air quality index.

The research in question studied the effect of air pollution on worker productivity in call centers in Shanghai and Nantong in China. The firm analyzed is Ctrip, one of the largest travel agencies in the country, employing more than 30,000 people. 50% of the workers’ pay is based on performance and the measures of productivity are very detailed and high frequency. The study concluded that there is a robust relationship between daily air pollution levels and worker productivity. On average, a 10-unit increase in the Air Quality Index (AQI) led to a 0.35% decline in the number of calls handled by a worker in a day at an AQI of 100. If we translate this to the entire Chinese high-skill industries, a 10-unit reduction of air pollution levels would increase the monetized value of improved productivity by $2.2 billion per year.

Competitive cities for jobs, growth, poverty reduction and shared prosperity?

Soraya Goga's picture
Photo by ecuadorpostales via Shutterstock

We are all aware of the statistics: cities are home to more than 50% of the world’s population, and they are growing so fast that 66 out of 100 people on earth will be urban dwellers by 2050. This, of course, will have major implications for people and poverty, climate change, and service delivery.
 
But did you also know that cities are the key drivers of global and national economic growth?
 
Currently, cities generate more than 80% of global GDP. Since the early 2000s, three-quarters of the world’s 750 largest cities have grown faster than their national economies. One of the key reasons for those cities’ success is higher productivity—as a result of their ability to attract skilled workers—as well as a high concentration of productive entrepreneurs and firms.
 
For decades, national and city leaders have also taken actions to build competitive cities, increasingly facilitating firms and industries to create jobs, raise productivity, and increase incomes over time—especially for the urban poor. They see this as the pathway to eliminate extreme poverty and to promote shared prosperity. This is particularly important in Sub-Saharan Africa and South Asia, where most of the world’s extreme poor live.

Of tigers and elephants: The rise of cities in Asia

Judy Baker's picture
Rush hour traffic in Mumbai, India. Photo: Adam Cohn/Flickr
Over the next decade and a half the world will add a staggering 1.1 billion people to its towns and cities. About one half of this urbanization will happen in the regions of East and South Asia.
 
If history is any guide, this growth in urban population will provide tremendous opportunities for increasing prosperity and livability. One can look at the successes of a few Asian cities such as Tokyo, Seoul, and Singapore to demonstrate how, with the assistance of good policies, urbanization and economic development go hand-in-hand. More generally, no major country has ever reached middle-income status without also experiencing substantial urbanization.
 
Yet cities can grow in different ways that will affect their competitiveness, livability, and sustainability. The more successful cities of Asia have been effective at creating opportunities, increasing productivity, fostering innovation, providing efficient and affordable services for residents, and enhancing public spaces to create vibrant and attractive places to live. But many, many, more cities have neglected fundamental investments in critical infrastructure and basic services, and have mismanaged land, environmental and social policies. This has resulted in traffic congestion, sprawl, slums, pollution, and crime.
 
Among the many complexities of urban development that have contributed to success, two critical factors stand out – investing in strategic urban planning, and in good urban governance.

Can other cities be as competitive as Singapore?

Sameh Wahba's picture
 Joyfull/Shutterstock
Photo: Joyfull/Shutterstock
Singapore is an example of one of the most competitive cities in Asia and in the world. Many, many other cities want to be the next Singapore. In fact, Singapore has been so successful that some believe that its success cannot be emulated. They forget that in the 1960s, Singapore faced several challenges – high unemployment, a small domestic market, limited natural resources, not to mention that most of the population lived in overcrowded unsanitary conditions in slums. Challenges that would sound very familiar to a large number of cities in the developing world.

And so, what better place than Singapore for the Asia Launch of the Competitive Cities for Jobs and Growth: What, Who & How report. The World Bank Group, along with the Centre for Liveable Cities and International Enterprise Singapore co-sponsored the launch as part of Urban Week held in Singapore from 8-11 March, 2016. The roundtable was attended by over 100 delegates representing cities from 23 countries.

The competitiveness potential for cities is enormous. Almost 19 million extra jobs, annually, could be created globally if cities performed at the level of the top quartile of competitive cities. Of this potential, more than 1/3, i.e. equivalent to an additional 7 million jobs, comes from cities in East Asia. Between 2000 and 2010, nearly 200 million people moved to East Asia's urban centers – these people will need jobs. Where will these jobs come from? How will they be generated?

Singapore: The Pelé of urban design

Abhas Jha's picture

Photo: Nicolas Lannuzel/Flickr
Who is the best soccer player of all time? A Google search will offer this name: Edson Arantes do Nascimento, popularly known as Pelé. Kicking off in 1958 as a 17 year old World Cup winner, Pele bookmarked his brilliant career a dozen years later with another World Cup triumph for Brazil. 
 
I like to think of Singapore as the Pelé of urban design. The city regularly appears in the top ranks of globally livableconnected and competitive cities. Pelé once famously said, "Success is no accident. It is hard work, perseverance, learning, studying, sacrifice, and, most of all, love of what you are doing or learning to do”. There is no doubt that Singapore’s accomplishments have been made possible by the hard work, perseverance and far-sightedness of its policy makers.
 
2013 speech by Peter Ho, Chairman of the Urban Redevelopment Authority, outlines the careful thought, planning and attention to detail behind Singapore’s urban policy, particularly the decisions, influence and foresight of Mr. Lee Kuan Yew over the decades of development. One astonishing success has been the provision of affordable housing and the care with which each neighborhood has been designed, taking care of the smallest details, in order to ensure social cohesion and a sense of community. These details include provisions for hawker centers and high quality public green spaces.

A Tale of Two Competitive Cities: What Patterns Are Emerging So Far?

Megha Mukim's picture
What do the cities of Bucaramanga and Coimbatore have in common and what have they done differently to enable fast-paced private sector development? As noted in a blog post earlier this year, the World Bank Group is pursuing a Competitive Cities Knowledge Base (CCKB) project, looking at how metropolitan economies can create jobs and ensure prosperity for their residents. The first two case studies – Bucaramanga, in Colombia’s Santander Department, and Coimbatore, in India’s State of Tamil Nadu – were carried out between April and June 2014.

What makes a city competitive?

Megha Mukim's picture

What do the cities Bandung, Bucaramanga, Izmir, Kigali, Patna, and Agadir have in common? They are all cities that have outperformed their national economies and are growing jobs. The World Bank's urban development and private sector development departments are jointly working on a new knowledge base on Competitive Cities. The project includes in-depth case studies of economically successful cities across all continents, beginning with the six listed above. What makes these particular cities so interesting? Read the team's blog to find out. Can you help guide our work? What types of insights and guidance would be helpful to making your city more successful?